Trust is an essential part in managing people and building a high-performance organisation. It's the foundation upon which all relationships are built. As in any relationship, trust is central to stable and productive workplace relations and successful team building initiatives. High trust environments correlate positively with high degree of employee involvement, performance management, commitment and organizational success. If trust is present in the workplace, the organization gets maximum effort and commitment, and the employees receive security and know they are appreciated.
However, our experience working in the private and public sectors of Australian industry, indicates a decline in trust in the workplace. A joint study by the Australian Institute of Management and Monash University supports this view, concluding that Australian business is facing a 'crisis of trust' threatening productivity and performance.i The study shows that while trust underlies all aspects of organisational culture, it is at a low ebb for managers across a range of industries and levels. The survey shows a strong correlation between trust and a positive workplace culture that emphasizes reward, supportiveness and stability. It shows that trust is strongly linked to attributes such as caring for colleagues, actively involving them in the company's vision, mentoring, role modeling and inspirational motivation. The survey also reinforces findings of similar research projects around the world: The more high tech, impersonal and sophisticated organizations become, the greater the need for leaders who can build a culture of trust in the organization.
These findings should set the alarm bells ringing for senior management in Australia. "Trust and loyalty should be a priority for organizations, from the top down, as they have serious implications for individual and enterprise performance," said Chief Executive Officer of the Australian Institute of Management in Queensland, Ms Carolyn Barker.
Smaller organizations consistently rated higher on job satisfaction, commitment, trust, loyalty and respect. The survey concludes "Creating smaller business units, flattening the management structure, involving staff in decision making and opening up timely and transparent channels of communication is central to creating trust in organizations."
The Trust Triangle
1. Self-Trust - Inner Trust
Self-trust is based on acceptance of yourself and your own inner intuition and wisdom. It is that deep, intuitive sense or gut feeling about something. If you follow your inner intuition, your self-trust is high. Peter Block sums it up as "Trust comes out of the experience of pursuing what is true. What is true lies within each of us." Self-trust is at the core of trusting others and being trustworthy.
2. Trustworthiness - Being Worthy of Trust
Usually when we think of trust, we think in terms of trusting others. But how trustworthy are you in others eyes? Do you follow through on your promises? Do you act with integrity? Are you honest, caring and reliable? Do you have the competence or skills to carry out the task at hand? Do you fulfill others' expectations of you? You are worthy of others trust if you score high in these areas.
3. Trusting of others
Trusting others is based on:expectations. We typically trust someone if we know they will fulfill our expectations.We each have a set of characteristics, known only to us, of someone who we deem worthy of trust. Our degree of comfort with trust is also based on whether we see the world as a friendly, safe place or a hostile, unsafe place. The more we see the world as basically friendly and safe, the more open we will be to trusting others. The reverse is true if we see the world as unsafe and unfriendly.
Robert Bruce Shaw describes the cornerstones of trust as results, integrity and concern in his book Trust in the Balance. Results People who deliver what they promise and fulfill our expectations become trustworthy to us.
Performance Management And Measurement
It goes without saying that employees are the core of any company. The most successful companies are those with the best employees and the best employees are those who are able to function to their maximum potential. According to statistics, most companies utilize barely twenty percent of their employees' potential. Performance management is critical in enabling managers to not just motivate employees and maximize efficiency, but also to deal with poor performance issues.
How Performance Management can Increase Productivity …
Managers who want to increase motivational levels in employees need to use effective performance management techniques. They need to take into consideration that different human beings have different motivational factors. While monetary incentives may influence certain people to give their best, other employees may crave recognition. Studies show that formal recognition is the single biggest motivator for most people. People love being recognized in front of other people - colleagues, family, and friends. This simple recognition translates directly to enhanced productivity. (Think Queen of England and her annual Honors List.)
Dealing with an employee's less-than-impressive performance and ways to improve it is another part of performance management. If an employee has been tardy on more than one occasion or his performance figures are showing a steady downward curve, there are effective performance management techniques through which the manager can help him get to the root of the problem and work on self development. Empowerment of employees is another performance management technique that can enhance productivity levels. Most employees like being trusted with jobs and knowing that they inspire enough confidence in senior managers to get the job done well.
…and Decrease Employee Turnover
When it comes to performance management, most companies agree that they could do better. Unfortunately, many companies think that paying people more is enough to retain talented personnel. This is hardly the case. Effective performance management cuts across junior-senior levels to engage employees in analyzing how performances could be maximized. For example, hiring a consultant to conduct an anonymous survey and based on the survey data, creating employee focus groups to address any areas of concern. This not only adds to the quality of the data, it also encourages employees to engage in the process.
Further, employees could be asked for their input regarding the course of action. Such engagement of employees is an important part of performance management and employee retention. Whenever monetary incentives are used (and they are equally important; nothing like the sight of greenbacks to boost employee morale!), they should include all employees who have completed a certain evaluation period. This helps emphasize that employee retention is important to the organization. Another effective performance management technique is to factor in loyalty to the company or level of responsibility (how many people work under that employee, the size of budget under their control, etc.) as part of the incentive plan.
By implementing an effective performance management program, a company can positively influence employee productivity and decrease organizational turnover.
Both Kylie Monet & Michael Jeffreys are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.