leadership and trust

Category: Education

Presentation Description



Presentation Transcript



Table of contents:

Table of contents What is trust Dimensions of Trust Types of trust Levels of trust Directions of trust Building trust What leaders can do to develop trust Why is trust critical in leadership Conclusion Bibliography


WHAT IS TRUST According to Krammer etal (1996) trust refers to one party’s willingness to be vulnerable to another party based on the belief that the latter party is competent open, concerned and reliable. It can also be defined as the confidence that one has in the hands of another, whilst faithfully believing that the other party will not act opportunistically, advantageously of exploitatively to their detriment. – I know that you can do it, ….she is reliable….. Trust refers to the confidence expectations of followers about their leader’s behavior Trust comes in the form of: - Character- refers to who you are, and - Competence -refers to the ability to one’s strengths and results that one produces.

Dimensions of trust:



TYPES OF TRUST 1. Deterrence Based Trust 2. Knowledge based Trust 3. Identification based Trust 4. Competence based Trust 5. Character Based Trust

1. Deterrence Based Trust:

1. Deterrence Based Trust People in this position act because they fear the consequences of not following through on their obligations. This kind of trust is based on fear of punishment. The potentially harmed person should be assertively be willing to introduce harm to the person acting distrustingly . New relationships begin on a base of deterrence, eg , in the military. Commanders are very stern and authoritatively feared due to their threat of punishment.

2. Knowledge Based Trust:

2. Knowledge Based Trust Relies on information rather than fear. It is premised on the knowledge that one party has over the other, and predictability of his or her behavior replaces contracts, penalties and any other legal arrangements. This type of trust develops over time Trust is not necessarily broken by inconsistent behavior. For instance, the relationship that exists between a student and a lecturer.

3. Identification Based Trust:

3. Identification Based Trust This is the highest level of trust, It is achieved when there is a strong mutual understanding between two parties. It allows one party to act as an agent or full representative, for the other to the party that each party can fully act in the capacity of the other. Controls are minimum at this point. One does not monitor the other party because the loyalty is unquestionable. For instance the trust that exists between a CEO and the Board of Directors.

4. Competence Based Trust:

4. Competence Based Trust This is trust derived when a partner is confident that the other party has the resources and competencies to fulfill their part of the alliance. For instance, the relationship that is established when a company makes use of a consultancy service. The company will be acting in trust that the consultancy has the competence and skill to solve the task at hand.

5. Character Based Trust :

5. Character Based Trust Concerns trust derived from the belief that partners are confident of the other party’s motives and are in a common understanding in terms of attitudes of integrity, openness, discretion and consistence of behavior. People act in confidence that the other party is going to deliver up to expectations because of the established character of relationship. This normally takes place in a marriage. But in the business world this is exemplified by the strategic trust that exists between a maid and a house wife, etc


LEVELS OF TRUST According to Heed T, (2011) there are three levels of trust which can be expressed as types in some circumstances 1. Strategic Trust 2. Organisational Trust 3. Personal Trust

1. Strategic Trust:

1. Strategic Trust This refers to trust wherein followers or subordinates are expected to have confidence in the judgment of their leaders. It also facilitates and enhances the organizational missions, goals and objectives. We can closely link this kind of trust to Perceived Leadership Index which assesses the extent to which employees feel that supervisors as implementers of the employment deal are playing an effective role contributing to employee engagement. The level of trust in the board of directors in Econet differs from the level of trust bestowed on the board existent in the NRZ

2. Organisational Trust:

2. Organisational Trust It focuses on the fairness of leaders in administering and implementing organizational rules and regulations. Likewise it can also be familiarised to Perceived Organizational Value Index which assesses the extent to which employees feel that the organization is delivering on its key employment deal (its side of the psychological contract), and will continue to do so in future. Arguably this level of trust looks both at internal and external stakeholders.

3. Personal Trust:

3. Personal Trust This is trust existent at personal level. It is trust that exists between leaders and their followers on a personal level. For instant the level of trust that exists between a teacher and a student, a doctor and a nurse, an accountant and an assistant accountant


DIRECTIONS OF TRUST 1 . Trusting upward 2. Trusting downward 3. Trusting sideways

1. Trusting upward :

1. Trusting upward Subordinates tend to produce less when they do not trust their superiors. A classical example is that of Perceived Leadership Index: which according to Johnson and Scholes (2002) assesses the extent to which employees feel that supervisors as implementers of the employment deal, as the point where are playing an effective role contributing to employee engagement.

2. Trusting downward.:

2. Trusting downward . Accordingly this refers to trust that a leader seeks to find in his or her subodinates . It is also linked to the perception that a manager assumes in viewing subodinate , ie , either as per McGregor’s theory x or theory y. Where downward trust is high, superiors, tend to delegate, whilst if trust is low, an authoritarian structure is normally assumed.

3. Trusting sideways.:

3. Trusting sideways . As a further pursuit of Maslow’s hierarchy of needs employee social needs should also be ensured in an environment where they trust their fellow employee to feel safe. One should be able to trust his or her fellow work mate. Where employees feel threatened by the existence of the workmate, a sense of insecurity may result in poor performance.


BUILDING TRUST 1. Communication Demonstrate to employees a willingness to listen and improve Open and Responsive Communication 2. Convergence and common ground Facilitate the right adjustments to align company actions with employee expectations Collaboration and Cooperation 3. Consistency Provide a solid measurement for real and lasting mechanisms of doing things particularly when faced with change management 4. Confidence Encourage Honesty and Assertiveness on both sides. 5. Create a Win/Win Attitude ` Ensure that in decisions where parties have to compromise they also gain something.

What leaders can do to develop trust according to Michael Hyatt:

What leaders can do to develop trust according to Michael Hyatt Expose yourself Build your team members up. Get rid of the leash. Accept confrontation. Find and appreciate the value in each person.


WHY IS TRUST CRITICAL TO LEADERSHIP As already discussed above, trust is the essence of leadership in the sense that influence is best practiced when a relationship exists between the leader and the follower. For a leader to influence someone, the follower should fully trust the leader whilst the leader should also trust that the follower will do the task. Below are some benefits of trust:

Reasons why trust is critical in leadership:

Reasons why trust is critical in leadership A “Real” Environment Trust brings about a spirit of honesty and truth wherein members are true in their expressions. Saving Time and Reducing Costs As a result of high trust levels leaders can act in trust and delegate some duties, devolve as well as practice autonomy. A Positive Atmosphere When levels of trust exist, social security is assured. Both leaders feel safe when things are in the hands of the other and thus will strive to produce their best. Trusted Influence The ability to evoke trust from others by keeping commitments, adhering to high ethical standards and principles, and building shared goals or values.


......continued Efficient Communication Trust inevitably assists in ensuring leader subordinate communication. Communication is direct and nothing is hidden from the other party. Solving Problems Problem solving is more smooth when members discuss in good faith and in trust. For instance during collective bargaining. It is easy to reach solutions when parties trust each other. Retain Talent and Business Through increased confidence and loyalty an organisation is able to retain key staff and clients Motivation An environment of trust brings about social security in line with Maslow’s hierarchy of needs


CONCLUSION Trust is a powerful and fragile asset in an organization, and it is almost exclusively created or hampered by the actions of the senior leader on a team. T rust brings about an environment where teams stay focused, give their utmost effort, and in the end do their best work. People tend to produce their best in an environment where they can trust themselves, trust others, trust their surrounding environment.


Bibliography http://michaelhyatt.com/6-ways-leaders-can-build-trust.html http://www.boozallen.com/consulting/optimize-organization/organization-efficiency-and-effectiveness/mission-dna/building-blocks-mission-dna http://work-effects.com/Org-Culture/trust-a-capacity.html Krammer etal (1996) Trust in Organisations , Thousand Oaks, Sage Publication, New jersey

authorStream Live Help