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ll managers want trustworthy Ability doing this systematically can help
employees. But few managers This relates to employees’ view of the diagnose the source of any potential trust
consider whether employees organisation’s skills and competencies. In issues. Consider the following questions:
view their employer as the pharmacy chain, employee views on y Do the organisation’s actions show
A trustworthy. This is the organisation’s ability varied. For concern for employees’ welfare
important, because when employees do example, one employee viewed the (benevolence)?
not perceive their employer to be company’s product decisions based on the y Are the organisation’s actions
trustworthy, they do not believe the employees’ location as incompetent. “They consistent with employees’ norms
company will fulfil its commitments. This are going to bring in [a certain product] (integrity)?
lack of trust undermines all company into this store, which is very expensive to y Do the organisation’s actions appear
policies, such as bonuses or other rewards, begin with. And I mean, we’re such a small competent (ability)?
as no incentive can work if employees store. I think that them bringing in [this
expect the organisation to neglect its product] is a complete waste of money. Build managers’ trust in the
commitments. The demographic that we have here organisation
Not surprisingly, research finds that [means that] the people that can afford to Pay particular attention to managers’
employees’ trust in their employer is a take that [product] don’t come in here. So opinions. If managers’ trust in the
crucial factor for organisational success. I’m confused as to why they would do that. organisation is low, act quickly to build it,
Yet, relatively little is known about how All of us here know that it’s not going to as managers’ trust in the organisation will
employees form trust perceptions. work.” impact their direct reports’ trust in the
Our research, funded by CIMA’s organisation.
academic research programme, explores Factors influencing employee trust
how employees form perceptions of their Employees are generally tuned in to their Provide information and training
employer’s trustworthiness and how direct manager’s opinions. They are likely Communication is key. Organisations
features of the organisational structure to view the organisation as trustworthy should ensure that all employees have
influence these perceptions. when their direct manager views the received information and training to
Data collection for the project involved organisation as trustworthy, and vice inform them about the organisation’s
a case study, with both in-depth interviews versa. values, mission, and policies. Without this
and a survey, at a privately owned North Further, when employees lack information, employees will rely on their
American pharmacy retail chain. understanding of the organisation’s managers’ (or other influential
mission, values, and policies, their trust in employees’) opinions, which might not be
Organisational qualities the organisation is considerably lower. accurate. The organisation should also
Employees’ perceptions of their The study also showed that employees’ consider retraining employees when
employer’s trustworthiness are impacted reliance on their direct managers’ opinions important changes are made, as outdated
by three factors: the organisation’s is influenced by the extent of employees’ information can cause confusion.
benevolence, integrity, and ability. understanding of the organisation’s These actions can help create high-trust
mission, values, and policies. When organisations, setting them up for success.
Benevolence employees’ knowledge about the More information on the research can
This is the extent to which the organisation is low, their direct managers’ be found here. ■
organisation “wants to do good” to its opinions play a larger role in shaping their
employees. Employees experience trust perceptions. In contrast, when
benevolence when the organisation employees have high independent Jasmijn Bol, Ph.D., is a professor of
expresses genuine care and concern for knowledge about the organisation, they accounting at Tulane University, New
them as a person, beyond the are less reliant on their direct managers’ Orleans, Louisiana, in the US; Katlijn
organisation’s concerns about their opinions when forming trust perceptions. Haesebrouck, Ph.D., is an assistant
performance as an employee. professor of accounting at Maastricht
Practical ways to improve University in the Netherlands; and
Integrity employee trust Serena Loftus, Ph.D., CMA, is an
This is employees’ perception that the Three practical pieces of advice to improve assistant professor of accounting at
organisation follows an acceptable set of employees’ trust in their organisation are: Kent State University, Ohio, in the US.
principles. In the case study company, a To comment on this article or to
manager expressed concerns about Systematically examine suggest an idea for another
integrity in the following way: “They pit employee trust article, contact Oliver Rowe at
one manager against another … which I Separately examine the different elements Oliver.Rowe@aicpa-cima.com.
don’t agree with.” of employee trust in the organisation, as
FM-MAGAZINE.COM February 2022 I FM MAGAZINE I 17