The role of trust in leadership performance

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The role of trust in leadership performance

• Definitions of trust
• The firm belief in the reliability, truth or
  ability of someone or something - Oxford English
  Dictionary
• The expectation of ethically justifiable
  behaviour - Hosmer L.T. (1995)
• Is this how you perceive trust?

• Using a selected model of leadership (eg
  Transformational, servant, situational or
  contingency theory of leadership), discuss the
  role that trust plays (or may play) in this

• Is trust an explicit or implicit component of the
  model?
• How significant a role does trust play in your
  selected model?
• What behaviours would you associate with the
  model that are likely to be significant in
  building or sustaining trust?

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How did we measure leadership trust?
6 dimensions of trust

• Leaders ability to do their job
• Leaders understanding of their employees roles
  and responsibilities
• Leaders fairness and concern for the welfare of
  employees
• Leaders openness to employees ideas and
  opinions
• Leaders integrity their values, honesty and
  fairness in decision making
• Leaders consistency the reliability and
  predictability of their behaviour

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How important are the six dimensions of trust?
For CEOs, Ability and Integrity dominate For line
managers, all six are quite similar in
importance, although ability is still first - if
you are judged to be not very good at your job,
your team wont trust you
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Calculating the Index of Leadership Trust (Line
Managers)
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The resultsHow well do people trust their CEOs?
OK, but not well average index score of 59 (on
a scale of 0 100)
1,000 or more people
10 or fewer people
Size matters
72
56
Under 1 year
Over 10 years
Length of time in post matters
65
55
Two critical dimensions
Ability
Integrity
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The results How well do people trust their Line
Managers?

• More than they trust CEOs average index score
  of 69 (compared to CEOs 59)
• Size and length of relationship matters as well
• All six dimensions matter for Line Managers
• Ability remains the most important factor,
  followed by
• Understanding
• Integrity
• Fairness
• Openness
• Consistency

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How can you ensure that people trust you , as
their Line Manager?

• In your groups, review the six dimensions that
  determine trust
• Ability
• Understanding
• Integrity
• Fairness
• Openness
• Consistency
• What aspects of your behaviour do you think most
  influences team members in deciding if you are
  able, understand them, show integrity, are fair,
  open and consistent?
• Draw up a list of best practice behaviour to help
  create trust in you.

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The effect of time on employee trust
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The effect of time on employee trust
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Employees, broken down by age and sex

• Trust in their own image slightly greater trust
  in CEOs of the same sex and similar age
• Women slightly more trusted and trusting than
  men (to begin with)
• Womens trust decreases more sharply, to below
  the mens level
• Women seem to be more acutely affected by changes
  in management

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CEO trust, by sector
Retail(also no. 1 for Line Mgrs)
67
Leisure
57
Catering hospitality
64
Distribution, travel transportand Local/Nat
Govt
56
Charity and Engineering manufacturing
63
Utilities, post telecoms
52
Public sector CEOs (57) trusted less than private
sector CEOs (61)
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How CEOs can enhance trust

• Be aware of how employees judge your ability and
  integrity
• Be visible and communicate with people MBWA
  to minimise distance
• Dont confuse your managers trust in you with
  other employees trust
• Stay! It takes time to build trust
• Dont reorganise too often

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How Line Managers can enhance trust

• Perform effectively and behave with integrity
• Make sure you know the people you lead
• Treat people fairly, listen to them and try to be
  consistent
• Expect new staff to trust you more than longer
  serving employees
• Be aware that if people have had regular
  management changes, trust will be low

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Trust The firm belief in the reliability, truth
or abilityof someone or something