Trust in the workplace

The present report explores the relationship between trust and human behaviour in the workplace. 

This includes the analysis of the workplace relationship between leaders and followers, the influence leaders have on the organisational culture through their relationship with followers, and lastly, the role of trust between leaders and followers in the decision making.

Along with this analysis are presented relevant theories, concepts and contemporary examples to support the underlying topic and describe the influences of trust between leaders and followers on the decision making which ultimately impacts on the organisations’ success. 


This report concludes there are clear benefits from having a healthy and trusting relationship between leaders and followers such as improving employee’s motivation, co-operation, performance, responsibility and positive behaviour.


Workplace relationship between leaders and followers 


The workplace relationships and nature of humans in organisations can widely vary depending on the context and environment. This report presents several theories and concepts to help study the interactions and behaviours within an organisation. 

These theories explain the relevance of providing followers with trust, support, responsibility so they can perform their tasks at their best, and the role of expectations and employees fair perceptions between their input and output.


FUNCTIONAL LEADERSHIP IN ORGANISATIONS

Functional leadership is based on the idea that an organisation might do better by empowering all the employees rather than only one person to lead. 

Consequently, focusing more on the most effective actions and behaviours that will benefit the group as a whole and the organisation by increasing each member’s empowerment, productivity and autonomy (Herrity 2021). While part of this model is theoretical, it helps to engage and increase each employee’s participation.

PYGMALION EFFECT

The pygmalion effect explains the role of expectations between leaders and followers, it arguments that an employee’s performance is influenced by the leader’s expectation. In other words, when the leader has high expectations about the employee’s performance, the leader will be more likely to help that employee to meet those expectations. 


The same can be said the other way around, when the leader’s expectations are low, the employee’s likelihood to achieve it are reduced as the leader is probably not going to try to help as much (Boyce 2022). This concept may explain why low expectations from leaders creates a negative environment with low performance while high expectations might create high performance.


EQUITY THEORY

Equity theory explains the perception of fairness within a working space, indicating that an employee will feel comfortable when their input is proportional to the output they receive, which could be seen for example, as the amount of hours worked in relation to the salary received. 

Therefore, when the benefits from outputs don’t seem to match the inputs, employees or followers will grow resentment against their leaders (Lumen 2022). Input can be seen as effort, loyalty, hard work, commitment, skill and personal sacrifice, while outputs can be tangible such as salary and job security, as well as intangibles such as recognition, praise, stimulus and responsibility.


Written by Sergio Quintero, 2023, student of Master of Business Administration, 
Kaplan Business School, Melbourne, Australia.



References


Boyce, P 2022, Pygmalion effect definition, Boyce Wire, retrieved 08 October 2022, <https://boycewire.com/pygmalion-effect-definition/>

Fragouli, E 2019, Employee trust and ethical leadership decision making, Journal of behaviour studies in organisations, JBSO, 2019 (1), 1-12.

Herrity, J 2021, Functional Leadership Model: Key Components, indeed, retrieved 08 October 2022, <https://www.indeed.com/career-advice/career-development/functional-leadership>

Lumen 2022, Equity theory, Lumen, Module 10: Motivating employees, retrieved 07 October 2022, <https://courses.lumenlearning.com/wm-introductiontobusiness/chapter/equity-theory/>

McLeod, C 2020, Trust, The Stanford Encyclopedia of Philosophy, Fall 2021 ed, Edward N. Zalta ed, retrieved 07 October 2022, <https://plato.stanford.edu/entries/trust/>

Nanayakkara, K, Wilkinson, S 2021, Organisational culture theories, Routledge, 1st ed, pg 132 - 145. 

Tran, S 2017, Google: a reflection of culture, leader, and management, International journal of corporate social responsibility, Springer, Int J Corporate Soc Responsibility 2.






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