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The consideration of company resources is initially oriented towards the question of whether the actual resources are adequate to achieve the defined goals. But with respect to human resources it is not only essential to choose the right employees but also to realize the potential of existing competencies.
Therefore it cannot simply be a monetary goal but also an immaterial cultural target to provide an atmosphere that allows the abilities of its organization to unfold. The assumption is made that a culture of trust is the adequate instrument to support employee competence utilization; an aspect being of special interest for strategic management.
Based on a new integrative model on the impact of trust on employee competence utilization a survey was directed to employees of selected medium sized organizations with between 49 and 999 employees. For the empirical study a pragmatic mixed methods approach was applied. The purpose of this paper is to test the basic hypothesis whether trust actually has an impact on employee competence utilization was tested with the use of correlation analysis and SmartPLS v. 3.2.3 in various ways. Therefore findings are based on the modelling and testing of trust relations and competence utilization.
As a result it can be summarized, that deliberate and elaborate concepts of social capital approaches, with a particular emphasis on trust, provide fundamental impact on and feedback through improved and increased employee performance.
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.
The purpose of this paper is to show how trust as an organizational value contributes to employee competence utilization in the case of innovation capability. Thus, it is the objective of this paper to analyze the positive impacts, but also potential limits of trust in business management. The research paper uses two different quantitative empirical studies drawn from German and Austrian midsized companies to empirically test this interrelation.
As a result, the paper determines particular aspects of trust such as accountability, shared norms and the ability to take responsibility to be interrelated with the usage of employee competences and underlines a positive connection between product innovation performance and trust. However, the trust concept needs enriching elements to be balanced towards a feeling of mutual reliance and support creativity instead; inclusions of bridging social capital, elements of distrust and a pioneering spirit are to be mentioned here.
In today’s business practice, but also in academic research the aspect of trust has gained remarkable importance. The usage of resources is still often pictured on a short perspective. Especially the usage of human resources must be sustainable, based on long term balance of interests and supported by procedures and systems that anchor the anabolic balance of interest between company and employee (Moldaschl,2008). Within the management of competencies, culture and values, the "social capital" in terms of an "asset of mutual trust" plays and important role. If the "homo reciprocans" feels to be treated fair his own willingness to cooperate increases (Falk, 2002). Furthermore "Trust in human relations is a binding framework under insecurity and allows decisions and actions that would not be possible based on pure rational information and consideration" (Strasser/ Voswinkel, 1997).
The question behind the research paper at hand is: "Is a culture of trust leading to higher employee competence utilization?" This is of relevance as "it is human capability and commitment that distinguishes successful organizations from the rest" (Storay, J. 2007), which is explicitly valid in times of skilled worker shortage. The purpose of this paper is to introduce a research approach to test the correlation between Trust and Employee Competence Utilization (ECU) ‐ embedded in a Business Excellence (BE) setting. Based on a short insight in the theoretical foundation of the basic model behind the empirical study and the subsequent operationalization of the variables the basic empirical methodology is described. With this the paper shows the process of focussing and bounding from the general theoretical relation of Trust and ECU to a specific research question and it’s correlating stepwise empirical approach.
The paper at hand gives detailed insights in the logic of planning of the empirical test methods as well as the development of the derived interview lines and questionnaires. The findings of this paper broaden the research focus towards the complexity of the two variables, trust and ECU, but simultaneously introduce and suggest an empirical approach to lighten the possibilities of measuring both variables. First empirical results underline the concrete tangible approach towards a focussed structural equation model. As a next step the empirical results will be analyzed in detail and finally pictured in a validated Structural Equation Model.
The present study represents a test of a conceptual model predicting how the structure of funding might influence country’s performance developing sector of high technology. Using the framework provided by Triple helix theory and Eurostat suggested methodology, this model assesses whether aspects of the funding structure may have a positive effect on country’s performance developing sector of high technology through their influence on sector’s, business, national and international levels of evaluation: number of patents, number of innovative enterprises, turnover of high technology trade and share of high technology in national export. The result indicates that the theoretical framework can identify specific leverage points that can increase efficiency of funding structure and, therefore, productivity of the sector of high technology.
The purpose of this article is to discuss different approaches in the values-based culture literature and identify research challenges and inconsistencies regarding the topic. From this, the authors develop applicable recommendations for scientists and managers. The study is based on an intense literature review on values, their definition, their measurement and management. These aspects are linked to each other in a further step. The authors link different perspectives on definition, measurement, analysis, and the management of values to a comprehensive picture. The measurement of values is seen to be a basis for the ability to be clear in communication, to monitor congruencies between beliefs and practices and to integrate personal values and the ethical framework of the company. The target of managing values is to be seen in a successful implementation into the organisation, as well as the P-O-fit (Person-Organisation fit) thought. In conclusion, the authors recommend to measure and to be aware of both, management values and employee values, in order to optimize the P-O fit and make values contribute to strategic goals. The article shows a way forward to a deeper understanding of the phenomenon of organisational values for business managers and scientists. The authors develop a common threat for a coherent picture on the definition, the method of measurement and the approach to management of values, which contributes to applicable recommendations for scientists and managers. Moreover, the article provides a platform for further research and empirical testing.
In today’s business practice, but also in academic research the aspect of competencies has gained remarkable importance. Competencies are not only a central part of the strategy process of a company. Corporate Strategy literature states that that human asset in particular can fulfil the criterion ’of a sustainable competitive advantage’ (Storey, 2007). The utilization of competencies is a key target of companies, as it is important in realizing a full return on investment. The paper analyses the state-of-the-art of competence theories with a specific recognition to the aspect of social capital. The author argues that the management of company competencies is a contributor to the utilization of competencies and links these aspects to social capital. In order to achieve the main goal of the underlying work the paper is structured as follows: first, the presentation of the state of the art in the area of competencies and social capital based on literature review; afterwards, the discussion is made in order to prove the main hypothesis. As a result the author concludes with a model showing the key bond between company competencies, individual competencies and social capital. With this, the paper contributes to a deeper understanding of the phenomenon of competencies for business managers and scientist. The findings are valuable to contribute to the utilization of individual competencies especially in the prism of social capital which will pay off for industrial companies and employees in long term. This is especially valid in an environment of skilled worker shortage.