What leaders can do to develop trust Why is trust critical in leadership Conclusion Bibliography WHAT IS TRUST According to Krammer etal (1996)… [627543]

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: [anonimizat]

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/optimi
ze-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