{"id":697,"date":"2019-04-17T19:57:56","date_gmt":"2019-04-17T19:57:56","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/?post_type=chapter&#038;p=697"},"modified":"2024-04-24T22:45:51","modified_gmt":"2024-04-24T22:45:51","slug":"trust-and-leadership","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/chapter\/trust-and-leadership\/","title":{"raw":"Trust and Leadership","rendered":"Trust and Leadership"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Understanding trust as an element of successful leadership<\/li>\r\n<\/ul>\r\n<\/div>\r\nThe leader who does not establish trust will have no followers. Trust is the primary attribute associated with leadership, and trust that is broken can have an adverse effect on a group\u2019s performance. People are unlikely to follow someone they think is dishonest, or someone they think will take advantage of them. Conversely, when followers trust a leader, they\u2019re willing to be vulnerable to the leader\u2019s actions.\r\n<h2>What Is Trust?<\/h2>\r\n<img class=\"alignright wp-image-1066\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4052\/2019\/04\/29191049\/hand-1137977_1920-1024x768.jpg\" alt=\"three individuals putting their hands together\" width=\"400\" height=\"300\" \/>What is trust? Trust is a positive expectation that another individual will not act opportunistically at another\u2019s expense. Trust is dependent on history, based on relevant but limited samples of experience. Trust involves five key dimensions:\r\n<ul>\r\n \t<li style=\"font-weight: 400;\"><strong>Integrity:<\/strong> the honesty and integrity of the individual.<\/li>\r\n \t<li style=\"font-weight: 400;\"><strong>Competence:<\/strong> the knowledge and ability of the individual.<\/li>\r\n \t<li style=\"font-weight: 400;\"><strong>Consistency:<\/strong> the reliability of the individual.<\/li>\r\n \t<li style=\"font-weight: 400;\"><strong>Loyalty:<\/strong> the willingness of the individual to protect the interests of another.<\/li>\r\n \t<li style=\"font-weight: 400;\"><strong>Openness:<\/strong> the individual\u2019s willingness to be forthcoming with others.<\/li>\r\n<\/ul>\r\nIn today\u2019s world of business, there are plenty of reasons for trust to be deteriorating. Wells Fargo took advantage of sales teams and, with them, their own customers, and their predatory behavior was called onto the carpet in front of Congress. Volkswagen\u2019s faked emissions testing cost their business customers and international relations. Facebook has been taken to task for lax security measures around users\u2019 personal information, and the lack of checks and balances in their advertising policies may have influenced our country\u2019s presidential election.\r\n\r\nWhether trust is lost between a leader and a follower, or a customer and a company, it costs the organization money.\r\n<h2>Types of Trust<\/h2>\r\nThere are three types of trust in organizational relationships.\r\n<ul>\r\n \t<li><strong>Deterrence-based trust.<\/strong> Perhaps the most fragile of all the types of trust, deterrence-based trust is based on the fear of reprisal if trust is violated. A new employee might extend deterrence-based trust to his or her new manager, understanding that there is limited experience on which to base any other trust. The potentially harmed party must be willing to introduce harm in return if the trust is violated. \u201cI am willing to speak poorly of you if you do the same to me,\u201d is an example of that.<\/li>\r\n \t<li><strong>Knowledge-based trust.<\/strong> This trust is the most common, and it\u2019s based on the behavioral predictability that comes from a history of interaction. Even when an individual can predict that another individual will be unpredictable or untrustworthy, knowledge-based trust can still exist. \u201cI know enough to know he won\u2019t show up on time and he won\u2019t bring the pizza,\u201d is what one might say in a knowledge-based trust situation.<\/li>\r\n \t<li><strong>Identification-based trust.<\/strong> This is the highest level of trust achieved between two individuals, because it\u2019s an emotional connection between them. This trust is based on a mutual understanding of each other\u2019s intentions and appreciation of the other\u2019s wants and desires. A happily married couple exercises identification-based trust, as well as two people in an organization who have worked together for a long period of time.<\/li>\r\n<\/ul>\r\n<div class=\"textbox tryit\">\r\n<h3>PRactice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/67b1a675-6ec6-4aa5-a3f5-bbbb0a249c27\r\n\r\n<\/div>\r\n<h2>Principles of Trust<\/h2>\r\nWhere an organization is concerned, there are some basic trust principles that leaders should keep in mind:\r\n<ul>\r\n \t<li><strong>Growth can mask mistrust.<\/strong> In a time of organizational growth, leaders enjoy rapid promotions and increased power and responsibility. Leaders who don\u2019t plan to be with an organization for very long can take shortcuts and leave issues of mistrust for their successors to handle.<\/li>\r\n \t<li><strong>Decline tests the highest levels of trust.<\/strong> There\u2019s nothing like a string of layoffs or an episode of corporate downsizing to erode even strong levels of trust.<\/li>\r\n \t<li><strong>Trust increases cohesion.<\/strong> Group members who display trust in each other will work together and exert high levels of effort to achieve goals. Mistrusting groups should expect the exact opposite.<\/li>\r\n \t<li><strong>Mistrust generally reduces productivity.<\/strong> While trust doesn\u2019t necessarily increase productivity, mistrust almost always decreases it. Mistrust forces group members to focus on individual differences, which makes it hard to visualize any common goals.<\/li>\r\n<\/ul>\r\nIn a 2016 survey done by Price Waterhouse Cooper, they reported that 55% of CEOs think a lack of trust is the biggest threat to their business. Certainly , companies whose employees consider them \u201chigh trust\u201d are experiencing a lot of advantages: their employees report 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, 40% less burnout.[footnote]Zak, Paul J. \"The Neuroscience of Trust.\" Harvard Business Review. January\/February 2017. Accessed April 29, 2019. <a href=\"https:\/\/hbr.org\/2017\/01\/the-neuroscience-of-trust\" target=\"_blank\" rel=\"noopener\">https:\/\/hbr.org\/2017\/01\/the-neuroscience-of-trust<\/a>.[\/footnote]\r\n\r\nBe trustworthy.","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Understanding trust as an element of successful leadership<\/li>\n<\/ul>\n<\/div>\n<p>The leader who does not establish trust will have no followers. Trust is the primary attribute associated with leadership, and trust that is broken can have an adverse effect on a group\u2019s performance. People are unlikely to follow someone they think is dishonest, or someone they think will take advantage of them. Conversely, when followers trust a leader, they\u2019re willing to be vulnerable to the leader\u2019s actions.<\/p>\n<h2>What Is Trust?<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-1066\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4052\/2019\/04\/29191049\/hand-1137977_1920-1024x768.jpg\" alt=\"three individuals putting their hands together\" width=\"400\" height=\"300\" \/>What is trust? Trust is a positive expectation that another individual will not act opportunistically at another\u2019s expense. Trust is dependent on history, based on relevant but limited samples of experience. Trust involves five key dimensions:<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><strong>Integrity:<\/strong> the honesty and integrity of the individual.<\/li>\n<li style=\"font-weight: 400;\"><strong>Competence:<\/strong> the knowledge and ability of the individual.<\/li>\n<li style=\"font-weight: 400;\"><strong>Consistency:<\/strong> the reliability of the individual.<\/li>\n<li style=\"font-weight: 400;\"><strong>Loyalty:<\/strong> the willingness of the individual to protect the interests of another.<\/li>\n<li style=\"font-weight: 400;\"><strong>Openness:<\/strong> the individual\u2019s willingness to be forthcoming with others.<\/li>\n<\/ul>\n<p>In today\u2019s world of business, there are plenty of reasons for trust to be deteriorating. Wells Fargo took advantage of sales teams and, with them, their own customers, and their predatory behavior was called onto the carpet in front of Congress. Volkswagen\u2019s faked emissions testing cost their business customers and international relations. Facebook has been taken to task for lax security measures around users\u2019 personal information, and the lack of checks and balances in their advertising policies may have influenced our country\u2019s presidential election.<\/p>\n<p>Whether trust is lost between a leader and a follower, or a customer and a company, it costs the organization money.<\/p>\n<h2>Types of Trust<\/h2>\n<p>There are three types of trust in organizational relationships.<\/p>\n<ul>\n<li><strong>Deterrence-based trust.<\/strong> Perhaps the most fragile of all the types of trust, deterrence-based trust is based on the fear of reprisal if trust is violated. A new employee might extend deterrence-based trust to his or her new manager, understanding that there is limited experience on which to base any other trust. The potentially harmed party must be willing to introduce harm in return if the trust is violated. \u201cI am willing to speak poorly of you if you do the same to me,\u201d is an example of that.<\/li>\n<li><strong>Knowledge-based trust.<\/strong> This trust is the most common, and it\u2019s based on the behavioral predictability that comes from a history of interaction. Even when an individual can predict that another individual will be unpredictable or untrustworthy, knowledge-based trust can still exist. \u201cI know enough to know he won\u2019t show up on time and he won\u2019t bring the pizza,\u201d is what one might say in a knowledge-based trust situation.<\/li>\n<li><strong>Identification-based trust.<\/strong> This is the highest level of trust achieved between two individuals, because it\u2019s an emotional connection between them. This trust is based on a mutual understanding of each other\u2019s intentions and appreciation of the other\u2019s wants and desires. A happily married couple exercises identification-based trust, as well as two people in an organization who have worked together for a long period of time.<\/li>\n<\/ul>\n<div class=\"textbox tryit\">\n<h3>PRactice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_67b1a675-6ec6-4aa5-a3f5-bbbb0a249c27\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/67b1a675-6ec6-4aa5-a3f5-bbbb0a249c27?iframe_resize_id=assessment_practice_id_67b1a675-6ec6-4aa5-a3f5-bbbb0a249c27\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<h2>Principles of Trust<\/h2>\n<p>Where an organization is concerned, there are some basic trust principles that leaders should keep in mind:<\/p>\n<ul>\n<li><strong>Growth can mask mistrust.<\/strong> In a time of organizational growth, leaders enjoy rapid promotions and increased power and responsibility. Leaders who don\u2019t plan to be with an organization for very long can take shortcuts and leave issues of mistrust for their successors to handle.<\/li>\n<li><strong>Decline tests the highest levels of trust.<\/strong> There\u2019s nothing like a string of layoffs or an episode of corporate downsizing to erode even strong levels of trust.<\/li>\n<li><strong>Trust increases cohesion.<\/strong> Group members who display trust in each other will work together and exert high levels of effort to achieve goals. Mistrusting groups should expect the exact opposite.<\/li>\n<li><strong>Mistrust generally reduces productivity.<\/strong> While trust doesn\u2019t necessarily increase productivity, mistrust almost always decreases it. Mistrust forces group members to focus on individual differences, which makes it hard to visualize any common goals.<\/li>\n<\/ul>\n<p>In a 2016 survey done by Price Waterhouse Cooper, they reported that 55% of CEOs think a lack of trust is the biggest threat to their business. Certainly , companies whose employees consider them \u201chigh trust\u201d are experiencing a lot of advantages: their employees report 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, 40% less burnout.<a class=\"footnote\" title=\"Zak, Paul J. &quot;The Neuroscience of Trust.&quot; Harvard Business Review. January\/February 2017. Accessed April 29, 2019. https:\/\/hbr.org\/2017\/01\/the-neuroscience-of-trust.\" id=\"return-footnote-697-1\" href=\"#footnote-697-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p>\n<p>Be trustworthy.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-697\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Trust and Leadership. <strong>Authored by<\/strong>: Freedom Learning Group. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Specific attribution<\/div><ul class=\"citation-list\"><li>Hands. <strong>Authored by<\/strong>: falco. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/photos\/hand-children-child-child-s-hand-1137977\/\">https:\/\/pixabay.com\/photos\/hand-children-child-child-s-hand-1137977\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: Pixabay License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-697-1\">Zak, Paul J. \"The Neuroscience of Trust.\" Harvard Business Review. January\/February 2017. Accessed April 29, 2019. <a href=\"https:\/\/hbr.org\/2017\/01\/the-neuroscience-of-trust\" target=\"_blank\" rel=\"noopener\">https:\/\/hbr.org\/2017\/01\/the-neuroscience-of-trust<\/a>. <a href=\"#return-footnote-697-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":17,"menu_order":9,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Trust and Leadership\",\"author\":\"Freedom Learning Group\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc-attribution\",\"description\":\"Hands\",\"author\":\"falco\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/photos\/hand-children-child-child-s-hand-1137977\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"Pixabay License\"}]","CANDELA_OUTCOMES_GUID":"3a747e44-a951-491e-84e2-e893974c82ba, 3cc6ae92-89b5-4e3f-ba40-e457c226e0f6","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-697","chapter","type-chapter","status-publish","hentry"],"part":34,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/pressbooks\/v2\/chapters\/697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":6,"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/pressbooks\/v2\/chapters\/697\/revisions"}],"predecessor-version":[{"id":2155,"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/pressbooks\/v2\/chapters\/697\/revisions\/2155"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/pressbooks\/v2\/parts\/34"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/pressbooks\/v2\/chapters\/697\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/wp\/v2\/media?parent=697"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/pressbooks\/v2\/chapter-type?post=697"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/wp\/v2\/contributor?post=697"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/wp-json\/wp\/v2\/license?post=697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}