Friday, January 30, 2009

Trust follows Communication

In the backdrop of corporate scandals regarding issues like greed, bankruptcy, dishonesty and ethical violations, employee trust in senior management is deteriorating. Plummeting trust signals impending disastrous corporate performance.

Addressing the issue
Trust is not necessarily a matter of what is legal or illegal. It is more a matter of how countless management decisions affect employees over a time.

HR’s role
HR’s efficiency is a key predictor of employee trust. Though the HR’s relationship is direct, it alone cannot build employee trust. Management ‘s backing is critical. HR focuses on two primary trust drivers: Communication and managing change.

HR at work

An efficient HR functioning is associated with high levels of trust and facilitates an organisational culture that infuses faith, loyalty, and confidence among employees.

Tips for HR:

Out in the open: Explain to employees the rationale for major decisions and the company’s performance.

Convey the advantage: Companies conveying the advantages, through issue of “total award statement” (that communicates an employee’s total value of compensation), enhances the degree of trust.

Employee inputs drive change: Employee attitude significantly influences the trust levels in an organisation. Eliciting employee input greatly improves an organisation’s work climate.

Sighting Business goals and roles: Employees of high trust organisations are provided a clear picture of organisation’s goals and their role towards achieving it.

Accountability: Organisations having high levels of trust not only reward high performers but also hold poor performers accountable.

An effective and efficient HR department ensures that employees have high levels of trust and ensure that the organisation maintains the credibility it possesses through communication, consistency, follow-through, respect and internal customer service.

Ref: TheManageMentor

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