Organisation Predictability and Trust - Case Study Example

Organisation, Predictability, and Trust Name Name of Institution Organisation, Predictability, and Trust Introduction Organisation, predictability, and trust are common terms that frequently mentioned in business contexts. However, they do not have obvious meanings and require research to be fully comprehended. This paper will examine the work of management theorists to come up with definitions that are applicable in the management context. The paper will then determine the relationship between consistent and fair managerial practices and employee trust. This will be done using experimental research on the topic. The paper will then establish how managerial practices and workplace trust are related to motivation. It is worth noting that motivation is a key determinant of organisational effectiveness and performance (Manzoor 2012, p. 9) (Bhatti, Waris & Zaheer 2011). Therefore, the paper will seek to establish whether consistent and fair management practices will have a direct linkage with a firm’s overall performance. Definition of Organisation, Predictability, and Trust Barnard Chester Irving is a key management theorist who did considerable work on organisations. His definition of organisations began with viewing them as cooperative systems in which individuals interacted with each other (Wren & Bedeian 2009). These individuals were driven by their motives and attempts to control them would not always be effective. The understanding of the way individuals functioned within cooperative systems led to the development of a definition of organisations. According to Barnard, an organisation defines a system where two or more individuals engage in consciously coordinated activities (Wren & Bedeian 2009). In addition to the definition, Barnard also argued that all organisations had three elements which included the willingness to cooperate, a singular purpose, and communication across the formal organisation. Follett approached the definition of management from a different perspective. She considered the organisation to be control, whereby controlled performance was achieved through coordination and organising (Wren & Bedeian 2009). She also held that leadership within an organisation should not be premised on power but the mutual influence of the leader on the worker and the worker on the leader (Wren & Bedeian 2009). This implies that there needs to be a level of predictability and trust in order for an organisation to meet the needs of both the group and the individual. In this case, predictability defines consistency in the way a party handles situations. On the other hand, trust defines the expectation that a party will not act opportunistically through decisions, actions, and words (Robbins 2009, p. 329). Alternatively, Mayer and Gavin (2005, p. 875) define trust as the willingness to be vulnerable to a party that cannot be controlled. Leaders are expected to acquire the trust of their subordinates as the absence of trust can have negative impacts on the performance of a group. It is evident that there is a direct link between predictability and trust as predictability enhances trust in the organisational context (Robbins 2009, p. 329). For instance, an organisation can invest in furthering the skills of a worker with the expectation that the worker will remain at the firm and use the new skills to benefit the organisation. This level of predictability builds trust between the parties in an organisation, and it leads to mutual benefits (Stevenson & Moldoveanu 1995). Relationship between consistent and fair managerial practices and worker trust It is arguable that consistent and fair managerial practices play a vital role in assisting organisations to meet their objectives. However, the link between these practices and worker trust can only be confirmed through empirical research. The human resource function is a function that has to be handled in a predictable and fair manner in order to develop trust in the workforce. Gould-Williams (2003) conducted a study that sought to assess the impact of a collection of HR practices on workplace trust. The study also evaluated how these HR practices impacted commitment, effort, job satisfaction, and organisational performance. When it comes to the specific HR practices, the list included selective hiring, employment security, performance-based pay, teamwork, information sharing, egalitarianism, and training and development (Gould-Williams 2003, p. 30). A worthwhile hypothesis is that predictability and fairness in such areas will have a beneficial impact on workplace trust. Gould-Williams (2003, p. 31) presented arguments that if organisational systems are not fair, individuals will seek to reduce their vulnerability by concentrating on areas that are perceived to be fair. As stated, Mayer and Gavin (2005, p. 875) defined trust as the willingness to be vulnerable. This means that the perception that organisational systems are not fair will lead to reduced workplace trust. The findings of the study by Gould-Williams (2003, p. 48) confirmed that there is a direct relationship between consistent and fair management practices in HRM and workplace trust. Consistent and fair HR practices had a predictive positive effect on trust in the system and other workers, with the trust having a positive impact on organisational commitment, performance, and satisfaction (Gould-Williams 2003 p. 47). Servant leadership is a concept that can lead to consistent and fair management practices. According to Sendjaya & Pekerti (2010, p. 645), servant leadership leads to a focus on the needs of the followers and not the organisation. Furthermore, it leads to moral accountability and moral agency. An examination of the relationship between servant leadership and trust in organisations also found that there is an empirical link between fair and consistent leadership and workplace trust (Sendjaya & Pekerti 2010, p. 658). Relationship between managerial practices, worker trust, and motivation Having established the relationship between consistent and fair management practices and worker trust, it is essential to establish the relationship between worker trust and motivation. Pinder (2014, p. 11) defines motivation in the organisational context as a set of internal and external energetic forces to initiate activities that are related to work. These forces also have an impact on the type, intensity, and duration of the work related activity. This definition implies that external factors can have as much impact on motivation as factors that originate within an individual. This opens the door for worker trust to be among the factors that have an impact on the motivation of employees. Gilbert et al. (2011), conducted a study that was aimed at evaluating the concepts of trust, commitment, motivation, and performance. They began by confirming that there was a direct link between trust and commitment, where commitment to the objectives of an organisation could only occur in the presence of trust. A second study gathered the opinions of human resource professionals on specific factors that affected motivation in the workplace. The study concluded that that trust has a considerable impact on motivation. Additionally, the firm found that workplace trust had an effect on organisational performance (Gilbert et al. 2011). The confirmation of the link between workplace trust and motivation means that there is a direct link between managerial practices and motivation. As stated, Gould-Williams (2003, p.48) established that there is a direct link between consistent managerial practices and workplace trust. This was confirmed by Sendjaya & Pekerti (2010, p. 645) who found that servant leadership, a management practice that is fair and consistent, is associated with improved trust in the workplace. In turn, the studies conducted by Gilbert et al. (2011) established that workplace trust has a bearing on the level of commitment and motivation in an organisation. Therefore, it is arguable that fair and consistent management practices create trust in the workplace, and the trust benefits the organisation through increased commitment and motivation. The lesson from this linkage is that management needs to take concerted actions to ensure that they are fair and predictable. This will allow the collection of individuals described by Barnard to trust management and align their personal needs with the needs of their organisation. The workers will then be motivated to work and allow the organisation to attained controlled performance through coordinating and organising. Conclusion To summarise, this paper began with definitions of the organisation, predictability, and trust. Two contrasting definitions of organisations were adopted from two management theorists namely Barnard and Follett. These definitions allowed for a complete definition of predictability, which is the level of consistency in handling different situations. Trust was then defined as the degree to which a party is willing to be vulnerable. The conclusion from the definitions was that there is a direct link between predictability and trust whereby predictability enhances the level of trust in an organisation. The paper then examined experimental research to establish the relationship between consistent and fair managerial practices and worker trust. Two studies that examined fair human resource policies and servant leadership confirmed that there is a direct relationship between fair managerial practices and workplace trust. Finally, the paper examined the relationship between managerial practices, worker trust, and motivation. The finding was that managerial practices affect worker trust, which in turn determines commitment and motivation. This led to the conclusion that practicing managers need to be predictable and trustworthy in order to earn the trust of the workforce, build motivation, and allow the organisation to meet its performance objectives. References Bhatti, WA Waris, S & Zaheer, A 2011, The effect of commitment and motivation on human talent and its contribution to organizational performance. Management & Marketing, 6(3). Gilbert, D Halliday, S Heavey, C & Murphy, E 2011, Enhancing performance: Bringing trust commitment and motivation together in organisations. Journal of General Management, 36(3), 1-18 Gould-Williams, J 2003, The importance of HR practices and workplace trust in achieving superior performance: a study of public-sector organizations, International Journal of Human Resource Management, 14(1), 28-54. Manzoor, QA 2012, Impact of employees motivation on organizational effectiveness, Business management and strategy, 3(1), 1-12. Mayer, RC & Gavin, MB 2005, Trust in management and performance: who minds the shop while the employees watch the boss? Academy of Management Journal, 48(5), 874-888. Pinder, CC 2014, Work motivation in organizational behavior. Psychology Press. Robbins, SP 2009, Organisational Behaviour in Southern Africa. Pearson South Africa. Sendjaya, S & Pekerti, A 2010, Servant leadership as antecedent of trust in organizations, Leadership & Organization Development Journal, 31(7), 643-663. Stevenson H & Moldoveanu MC 1995, The Power of Predictability, Harvard Business Review, 73(4), 140-143. Wren, DA & Bedeian, AG 2009, The Evolution of Management Thought, 6th edn., John Wiley & Sons, Hoboken, NJ. Read More