"The crisis in trust many organisations are facing can be repaired, but not if we continue to blame the economy and focus solely on senior leadership. In reality, we all need to recognise that we each have a stake in the future success of the organisations in which we work.
That's according to new research published by the Chartered Institute of Personnel and Development (CIPD), which found that the crisis in trust predates the economic downturn and is a function of a breakdown of five types of trust relationship within an organisation. The report's authors are warning that relying on any single one of these relationships will not suffice to build the climates needed to enable the economy to grow and innovate.
The research, led by Professor Veronica Hope-Hailey at Cass Business School, found that the most important types of trust are 'trust in each other' and 'trust in direct line managers' but each relationship is interconnected and trust must be reciprocal. 'In organisations where 'trust in each other' was emphasised, there was a strong and persistent focus on maintaining trust across all relationships; if one became strained, the others were sufficiently strong to maintain overall trust even in the face of pay cuts, redundancies and restructuring. Conversely, in organisations relying exclusively on 'trust in leaders', there was a high risk of trust being eroded when those leaders suddenly (often because of the pressures of the recession) started to make decisions which revealed a lack of ability, integrity, predictability or benevolence."
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Leigh Nash - Trust.
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