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  Building the Virtuous Circle of Trust  Premium

Cardona Soriano, Pablo; Wilkinson, Helen
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During times of recession, feelings of distrust in organizations become acute, making it more necessary than ever to understand how trust is created and maintained. According to the authors, the relationship between managers and subordinates is fundamental to building and maintaining trust. In this article, they present a model based on the results of an international study and their own professional experience as coaches. Put simply, when the behavior of managers is trustworthy, employees trust their managers more; consequently, they become more involved in their work and demonstrate “organizational citizenship.” This greater involvement, in turn, strengthens their bosses’ trust in them, which reinforces reciprocal attitudes of trust. In this way, a virtuous circle of trust-building is generated in organizations.

Tools and Frameworks:
> The Organizational Benefits of Trust highlights that creating a climate of trust encourages cooperation and collaboration, stimulates open communication, increases motivation and, consequently, increases the efficiency and productivity of the entire organization.
> The Virtuous Circle of Trust-Building depicts the pattern of behaviors between managers and subordinates that reinforces the dynamics of trust within an organization over time.
> Behavior Changes Perceptions presents a matrix by which certain behaviors can moderate the positive or negative effects of personal, social or cultural factors, resulting in varying levels of trust or distrust.

Examples Cited:
Kraft, Victorinox, numerous quotes from study participants

Research Basis:
The authors draw from their experience as coaches and from an empirical study conducted among 737 managers and 2,111 subordinates in 18 countries, led by the Cross-Cultural Management Network, an initiative of IESE’s International Research Center on Organizations (IRCO). After analyzing the replies and conducting a series of qualitative interviews, the authors were able to validate their theoretical model on the dynamics of trust in corporations.

About the Authors:
Pablo Cardona is a professor and department head of Managing People in Organizations at IESE.

Helen Wilkinson is an independent researcher, instructor and coach for corporations and for IESE executive development programs.

This article is based on:  Como criar o círculo virtuoso de confiança
Publisher:  Estudios y Ediciones IESE
Year:  2009
Language:  English
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