Trustworthiness and Its Impact on Leadership

This resource compares two companies. One company has a distrustful culture, and one has a trusting culture. The researchers look at the difference in managerial attitudes. One fostered fear and suspicion, which led to a lack of cooperation. The other fostered trust and collaboration. Be attentive to the different results when people are undervalued or appreciated. Also, think critically about the differences between authoritarian leadership and democratic (authentic) styles. Is there a way to use an authoritarian style yet still build trust?

Abstract

This article discusses trust in leadership, a major issue in current business management. Paradoxically, in the environment of continuous change that characterizes many organizations today, trust is needed more but is enacted less. Trust forms a foundation for functioning relationships and co-operation. Trust is intangible – it is an intellectual asset, a skill, and an influencing power for leaders. Leadership by trust emphasizes trustful behaviour towards employees. In this article, we suggest that, in trust formation, it is trustworthiness in leader behaviour that matters. Showing trustworthiness by competence, integrity, benevolence, and credibility makes a difference in daily leadership work. The importance of trust in leadership has been widely recognized in the literature and business practice.

This article focuses on how leaders enact trust by showing trustworthiness to subordinates. The ways of building and sustaining trust and the effects of trustworthy and untrustworthy leader behaviour are examined. Two real life cases from industrial companies are presented and their implications are discussed. In conclusion, a leader's competence (ability) is one of the key dimensions in showing trustworthiness. As to untrustworthy behaviour, it is worth noting that building and sustaining trust is reciprocal in nature. A practical implication for leaders is that the development of an awareness of trustworthiness and skills for demonstrating it should be a top priority in the current business environment, which demands strong interaction, co-operation, and communication abilities.

Source: Taina Savolainen and Sari Häkkinen, https://timreview.ca/article/429
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