leadership and trust

NYASHA RONALD MAKONI

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

CONSISTENCE

LOYALTY

OPENNESS COMPETENCE TRUST AT

WORK

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

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

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

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

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

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

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

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

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

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.

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.

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

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 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.

Trust 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