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Part - V

Trust within an organization is of three types: -

1. Strategic trust - Trust in the organization's mission, vision and ability to succeed.

2. Organizational trust - Trust that the organization's policies will be fairly administered and consistently implemented.

3. Personal trust - Trust that subordinates place on managers to be fair and safeguarding their interests.

Trust leads to reduced rumors and improved industrial relations. This leads to motivation and higher productivity. It helps the organization attract and retain talented employees.

Trust within an organization may be diminished due to the following factors: -

1. Inadequate communication

2. Unsolved problems

3. Misbehavior

Trust within an organization arises when employees have a common goal to achieve and a limitation of resources and knowledge. This goal could be even termed as aspirations of individual employees.

In a high trust society, employees tend to associate more with the groups in the organization. It is not uncommon in Japanese companies to attend meetings on a Sunday morning, which assumes priority over time with the family.

Organizational Trust

Trust on an organization by outside entities is the ultimate objective that the organization must try to achieve. Trust has to be placed on the organization by: -

1. Customers

2. Financial Institutions

3. Investors

4. Suppliers

5. Special interest groups

6. Government

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* Contributed by: -
Vinod Sriramulu,
PGP - 2,
BIM, Trichy.