A new integrative model on trust in organizations – a quantitative approach for application in strategic management

  • Being of a particular character "trust" eludes a purely strategic approach as it has to be balanced with the special needs of a fragile human resource. Still trust is a resource of strategic relevance since it establishes security, reduces complexity and opens potentials being bigger than simply the reduction of "cost of control". These characteristics are of special interest for management, as competent action is always bound to problem-solving-abilities under circumstances of insecurity. Further to this there are numerous situations where control is not applicable and where we simply don’t have full knowledge. Also trust is particular as it bypasses financial efforts and grows through usage; an investment of high amortization though that deserves closer attention of management especially valid in times of skilled worker shortage and with respect to organizational learning as a valuable competitive advantage. The purpose of this paper is to develop direct and indirect measurable on the impact of trust on employee competence utilization and its subsequent realization in a strategic scorecard approach. This is based on a new integrative model in the organizational context applicable for strategicmanagement. With this the objective of the paper is to answer the question if culture of trust is an adequate instrument for strategic management. The empirical evaluation of the model is based on a survey directed to employees of selected companies in a pragmatic mixed methods application. The selected view considers the trust level of employees with regard to management as another individual and the organization itself; personal and institutional trust mechanisms are affected.Thus the employee evaluates its management. As a result, the empirical study suggests that it is possible to specify frameworks for the establishment of trust, and that its impact on competence utilization is moreover significant. However the concept of trust creates challenging requirements on managers. Based on the assumption that employees basically think and act in the sense of the company, benevolence and goodwill must be involved to avoid an opportunistic approach. Further to this accountability, shared norms and freedom to take responsibility need to be proven by behavior. The allowance of constructive seriously taken criticism, problem solving attitude, the acceptance of decisions are further key points for trust supporting frameworks that have to be accepted and shown through behavior.

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Author:Britta Bolzern-Konrad
Parent Title (English):The proceedings of the 12th International Conference on Intellectual Capital, Knowledge Management and Organizational Learning
Editor:Vincent Ribiere, Lugkana Worasinchai
Document Type:Conference Proceeding
Publication Year:2015
Tag:Employee competence utilization; Organizational learning; Strategic Management; Trust
faculties / departments:Fakultät für Chemische Technologie und Wirtschaft
Dewey Decimal Classification:6 Technik, Medizin, angewandte Wissenschaften / 65 Management, Öffentlichkeitsarbeit