Organizational Trust

Organizational trust is the belief of the employees of an organization towards the goal, mission and vision of the organization. The employees club their personal goals to the common goals of the organization and work in order to make them happen with all their abilities, skills and competencies. Starting from top to bottom all adhere to the common objectives and follow the rules and regulations of the organizational. Everyone contributes in building a healthy work culture among the organization to make it work smoothly and steadily.  Trust in organization brings loyalty which in turn results in overall growth.

Why is trust important for an organization?

Trust brings lots of things to an organization starting from simple aspect of disciple to the only motive of revenue generation, all activities directly or indirectly link to organizational trust. Starting with simplest form of explanation of how trust drives the organization we will talk about efficiency of employees and the input of cost. When there is increase in trust or trust prospers in an organization it increases the speed of efficiency i.e. effective use of time, energy and efforts; the cost is decreased hence giving benefits to the organization. But decrease in trust or distrust leads to lack of efficiency and increased in input costs which can result in decline of the organization.

There can be some barriers to organizational trust. Sometimes the own environment of the organization is responsible of generating mistrust within employees like lack of parity among people, biases, violations of rules undisciplined environment , lack of clarity and no pre-fixed roles and responsibilities. All the aspects add to a negative culture which can lead to distrust. Apart from this employees come with personal agendas which they bring to the organization their personal interest and desires which they try to fulfill within the organization using its resources hampering the ethics of a work culture. People have volatile personalities by which they believe, understand and react to the situations which can be interpreted differently. One more aspect which counts on the trust part is the perception of employees about the organization, whether they perceive the way top management wants them to perceive about it. Lastly the aspect which will create distrust would be misleading communication channels which affect the working of the organization on a personal and professional front.

Now the benefit of trust to the organization is the main agenda behind the inputs a company gives in creating trust. It produces high-quality products and services which the firm is aiming for. It increases the employee’s performance which every organization wishes for. It also develops justice within the organization which leads to decrease in stress which will promote creativity. Better chances of improved conflict management with empowerment of employees. Trust even results in team involvement with better leadership during times of uncertainty.

As organizational trust influences the efficiency and effectiveness it is important to build trust in the organization so as to prosper it well and maintain its market value among its stakeholders.

Widely accepted most common model on organizational trust is as follows used in many companies to resolve trust issues.