Importance of Trust in the Workplace - Essay Example

Running Head: Trust Trust s Trust Research Exercises Given the global economic downturn that has affected corporations worldwide, companies have had to make many tough decisions in order to continue staying in business. This has caused many hard feelings amongst employees of companies; who take it as a slap in the face after all the many years of working loyally and hard for a corporation. Also, the uncertainty has left many employees racked with nervous qualms, wondering if they will be the next ones to get fired. Given the world statistics on whether citizens truly trust their companies, surprising results have been unearthed. Citizens in Canada and South Africa trust companies more, relative to those in India, Pakistan and Srilanka. Fear of being fooled by marketers into buying third rate products at first rate prices is a constant concern in consumers living in Asia. Whereas those in the west truly believe that what the companies say to them, they follow through. Their western counterparts are more likely to believe what is written at the back of a product’s package, than have it counter checked by asking surrounding users. The citizens in Canada are much more confident in the trustworthiness of the companies working in their state, Marketing scandals have marred the industries of Asia, with citizens and consumers ending up cynically viewing the way industries there portray products. The general consensus amongst citizens of Asia (mainly Pakistan, India and Srilanka) is that marketers can sell them anything for a profit. Even if it is expired. Thus the level of trust therefore, between the citizens and corporations in that part of the world is relatively low, compared to the level of trust found amongst those in Canada. There is also the unanimous agreement that the strict implementation of consumer rights laws in Canada is the reason for most companies working alongside ethical standards; which gives citizens ample reason to believe everything companies tell them about products. (Global corporate comparisons, 2010) 2. Three Canadian organizations that have tried to improve their image in the world and with society include: AFSC: Agricultural Finance Services Corporation is at present rated to be the best company both employer-wise and also social-service wise. The work atmosphere at AFSC is extremely well maintained; with high a degree of communication between the management and employees. Employee engagement programs are carried out, with each employee receiving individual performance reviews. As a corporation, AFSC has been rated to be involved in community work above-average. Every year, the company and its employees support countless charities and social working groups, and donate to helping charitable organizations in need. This drastically raises the company’s standing in the eye of the society. (Top Employers, AFSC 2011) Agrium Inc: Rated number second in Canada’s top employers, the work atmosphere at Agrium is said to be above average. High communication is maintained between the management and the employees via corporate newsletter, corporate internet site, and traditional and email suggestion boxes respectively. With high financial benefits and employee health insurances, employees are more than happy when they find themselves thoroughly engaged in the corporation. Aside from annual individual reviews of each employee’s performance in the corporation, employees are also encouraged to provide their own feedback with respect to the management – and in full confidence. This builds and maintains trust within the organization, which reflects on the ever-watching society. With an above-average community development involvement, Agrium donates recycled bins to local boys and girls clubs, aside from funds to numerous charitable organizations and those fighting for human rights. These and other gestures ensure the company’s image remains untarnished in society’s eye. (Top employers, Agrium 2011) Cisco: Cisco has been ranked number three in the best employers in Canada. One of the determinants of such an amazing ranking was Cisco’s high score in employee involvement. With a work environment which encourages collaboration, team work and empowerment, Cisco has effectively embraced the secret to a truly successful organization. Employees at the corporation are encouraged to play leadership roles both in business and also in social work. They are expected to play a positive role especially keeping in mind corporate diversity, the community and other areas of importance. Most employees were willing to give the company top marks in CSR work, which is a core value of Cisco; and a big plus for the corporation in the eyes of both employees and society alike. (Cisco, Top fifty corporations in Canada) Your Perspective: 1. In this time global economic downturn, many corporations are helpless in the face of increasing costs and lost revenues. Thus, building trust – which is a long term goal - takes a back seat in the face of corporate scrambling to get as much profit in the books as possible. There have been many instances where corporations have been forced to take decisions for the survival of the company that have led to a downturn in internal organizational trust. Facing global economic decline, they are left with no other options. The following include a few reasons why organizations may not give first preference to building trust: Downsizing of many employees may cause a crumbling of trust amongst internal members of the organizations. This is done to cut costs and increase profits by decreasing the number of labor to support within the organization. However, this can have adverse affects on the level of trust between the management and the staff. Especially when employees see senior staff members, who are reputed and have been loyal to the company for a long time being fired, they instantaneously distrust the management. One question that then automatically takes root in employees’ minds is: am I next? Short term gains and profit may be focused on by corporations, leading to corporate scandals. By concentrating on short term money making, managers sometimes forget to take employees into their confidence. When corporate scandals thus erupt, employees’ trust on the management and company evaporates with the company’s credibility. Some managers cannot very easily trust employees. They prefer to control their environment, and may do so to such an extent that it stifles the employees. Here, trust does not take precedence – perfection does. Thus, in such a situation, deterrence-based trust exists; where the foundations of trust are very frail. Corporate executives who are involved in embezzling funds and trying to make a profit for themselves from a sizeable chunk of revenues collected eliminate trust completely for short term gains; underreporting of accounts and other factors may come into play. However, it deeply hurts the corporation in the long run - especially when the fraud is caught, and employees become disillusioned in the company and the future. (Corporate integrity, 2010) 2. Trust in a corporation is very important. An understanding between the employees, and also between the management and the staff, goes a long way to keeping any corporation afloat. Trust in one another leads to greater productiveness by employees, which results in increased profitability in the company. Trust breeds loyalty; and a loyal employee will never leave his/her chosen company – especially when the company falls into dire straits. Even though it takes time, and is a slow and steady process, building trust is the best equity a corporation can have. Since trusting employees will always do their best to make sure their company stays afloat – especially in times of economic distress and downturns. There are numerous steps organizations can take in order to be viewed as trustworthy by society. However, building an image of a corporation always starts from beginning work on the inside of the organization. Showing employees how trustworthy the corporation is, will automatically build the corporation’s reputation to a new high in front of the rest of the world. Satisfied employees tell others about the benefits of working for their company, and about how wonderful it is to be associated with a company for whom integrity is a major principle value to be followed. Word of mouth in such cases is extremely important to keep track off – positive word of mouth is the best way to raise a company’s reputation in the surroundings and in society. But this can only happen when the employees find proof by way of the management’s actions – and are made to see the trustworthiness of a company as a whole. In order to improve trust within their internal structure, so as to get a better image projected of them abroad, organizations may carry out the following steps: Keeping promises: it’s very important to people who work in your organization that the promises made to them by the management are kept. If they believe that the word of the management cannot be trusted, trust will never be successfully built within the corporation. Never telling lies: employees lose faith in the management fairly quickly if they see that the management continuously keeps lying. Whether it be about upcoming policies; implementation; or improvements in employee salaries, etc; lying to the staff is the surest way of making their loyalty to the company come crashing down. Keeping confidences: employees need to know their management is trustworthy enough to keep confidences. Being the instigator of rumors or gossip is not the best way to form a trusting work relationship. Undertaking no favoritism: corporate management should never show favoritism amongst employees. Priority should be given to agreed principals and standards, where all employees must reach. There must be no exceptions. Listening attentively: listening to what employees have to say adds a major bridge in the gap between the two status quos. If employees think that the management is not fully listening to them, and therefore does not really care about their needs, trust will disintegrate between the two. Following through: the management should always follow through with their promises. It sets an amazing example to the employees that the corporation always means what it says. Communicating as fully as possible: everything should be fully communicated, so as not to leave any chances for error. Trust is built on communication; the more the communication between the management and the staff, the higher the confidence of the staff upon the management. (Importance of trust in the workplace 2010) Having done all the above on an internal level within the organization; the corporation must also concentrate on the external echelon. Satisfied employees will talk to the rest of the world about the benefits of working within that particular organization; but corporations must try and raise their reputation in the eyes of the world themselves. This can be done via transparency in all transactions that the organization does, so as to show the integrity of the company. Also, customers must be familiarized with the company spokespersons and people who are most in contact with them, so that a relationship of trust is built upon which the foundations for a new customer base may be easily laid. Also, acting fast on customer complaints is a very good way of advancing the corporations good reputation within the society. (Trust; the new competitive advantage 2010) References: Cisco amongst top three ranked Canadian employers, viewed November 2010. http://newsroom.cisco.com/dlls/2010/prod_010810b.html Importance of trust in the workplace, viewed November 2010. http://www.nature-trust.org/nature-trust/the-importance-of-trust-in-the-work-place Trust gives new competitive advantage to corporations, viewed November 2010. http://www.seobook.com/trust-new-competitive-advantage Top employers 2011, viewed November 2010. http://www.eluta.ca/top-employer-agriculture-financial-services Top employers 2011, viewed November 2010 http://www.eluta.ca/top-employer-agrium Corporate integrity, viewed November 2010 http://integritybridges.com/tag/corporate-integrity/ Canadian organizations have better reputations (2009), viewed November 2010 http://www.reputationinstitute.com/events/2009_Reputation_Pulse_PressRelease_Canada.pdf Read More