The Importance of Trust at the Organizations Today and Tomorrow

Essay, 2012

11 Pages, Grade: Super Pass


Table of Contents



1. Introduction

2. Building Trust in the Workplace

3. Staff Situation at the Organizations in the Future
3.1 Change of Awareness
3.2 Shortage of Skilled Manpower
3.3 Demographic Trend

4. Conclusions



This essay explains how important the trust between the employees and the leaders/organizations. First chapter deals with building trust in the workplace. It emphasizes that building trust up is very difficult, but demolishing it is very easy. Second chapter focuses on the staff situation at the organizations in the future examining the change of awareness, shortage of skilled manpower and demographic trend.

1. Introduction

The management consultant and author Reinhard K. Sprenger thinks that trust between employers/supervisors and workers/employees is important for a functioning organization. So indeed, one of the abilities of a leader must be to trust and to earn the trust of the employees. Without trust, even though the right tools, methods, procedures and techniques are utilized, leadership will not succeed. Also, lack of trust will stop the cooperation and the efficiency, creativity and flexibility of employees and the whole organization (Sprenger, 2007). It must also be kept in mind that it is easier to destroy the trust than building it up (Jarvenpaa et al., 1998). In today’s and tomorrow’s organizations, for the function of an organization, trust must be present, and it is a critical and very important factor to maintain the things at the organizations. It is certain that if the worker trusts the organization, he/she will be more aware of his/her objectives and necessary changes for the organization and on the other hand he/she will improve the organization in different aspects as much as possible being also more dedicated to do his/her job. Also, he/she will be aware of the mission, vision and objectives of the organization. Moreover, companies need qualified employees to satisfy their clients and to maintain their businesses. That is why; qualified employees must trust the management and the organization for not leaving the company. If there will be a shortage of qualified employees, companies should follow a sustainable recruitment. By means of continuous trainings and growing up young professionals and hiring qualified people from other countries, they will be able to survive, but for keeping those; they must create a trustworthy environment. It should not also be forgotten that there are / will be many other simple jobs depending upon the each skilled position. Demographic trend is also another subject that must be considered by the companies to shape the social environment and to secure competitive advantages and again trust will be playing a key role for a functioning organization.

2. Building Trust in the Workplace

Trust is one of the key characteristics which is very important in the relationships (Hedberg & Helenius, 2007). If there is no trust, there are no partners. Trust makes the difference. At Continental Airlines, in 2003, at a department, employees faced with the probability of layoffs. When the employees learned this, they did something interesting. They went to the management with idea that all the full-timers to move to part-time status. By doing this no one would need to be fired. The employees were sure that that management would listen to them and it happened so. Positive relationships between the management and employees go on today as well. How could these positive relationships be created? The simple answer is by means of trust. Trust is a vital, key factor for powerful communication. It also supports the cooperation across departments and hierarchies, finding solutions while facing difficult situations (Bulding trust in the workplace, 2012). As another example, Microsoft decided to make an effort to build and raise the trust among the team members. When people trust each other, they do not keep the know-how in their drawers, they share the information and their knowledge with the others and the communication flow moves without any barriers and working can become fun at the end. For this aim, Microsoft did an online survey to improve the trust. The survey gave a list seen below about the factors which affect the trust and the team began to consider these factors to reinforce the trust among the team (Zheng & Palayo, 2009).

The survey results of Microsoft about trust were as follows:

1) Be honest (79.7%)
2) Be a role model - have integrity (78.9%)
3) Be open and authentic (75.6%)
4) Demonstrate integrity (73.9%)
5) Do not let pride get in the way of doing the right thing. (70.7%)
6) Give honest and frank feedback (70.0%)
7) Timely - open communication (No secrets) (70.1%)
8) Transparency in decision making processes and actions (70.1%)
9) Address the tough stuff directly. (68.9%)
10) Admit mistakes and take visible blame (69.2%) 11) Be a constant learner (68.1%)
12) Hold yourself accountable (68.4%)
13) Say what you are going to do, then do what you say what you are going to do. (68.4%)
14) Give freedom to explore and experiment (68.1%) 15) Encourage open discussion (66.7%)
16) Respect the dignity of every person and every role (66.9%)
17) Empower people to develop their own process (67.2%) (Zheng & Palayo, 2009).

One of the factors is the economic factors (i.e. during the crises or recessions) resulting in layoffs cause trust loss in many employees. On the other hand, if a company is downsizing, some employees may ask that question “Am I the next?”. When the economic situation becomes all right again, these employees will likely look for a new position where they feel themselves more secure (The Importance of Trust in the Work Place, 2012).

As a result, it can be said that it is easier to destroy the trust in comparison to build it up.

The next chapter is related to the staff situation at the companies in the future. It is seen that trust will still be playing a key role at the end for the organizations.

3. Staff Situation at the Organizations in the Future

Staff situation at the organizations in the future will basically be affected by change of awareness, shortage of skilled manpower and demographic trend.

3.1 Change of Awareness

Dedicated staffs are greatest assets of an organization and they are highly aware of the situations at their companies. But, to be dedicated, the employee should passion for something. Dedicated employee’s passion matches with the mission, vision, values and targets of the organization. Dedicated staffs are the basically the ones who are more conscious about the organization, corporate culture. For this aim, the employee should firstly trust the organization. Dedicated employees understand and change if needed for the company and also support the company’s view. Because they think that it is a kind of corporate behaviour. They also have interest to improve the efficiency of the company and endeavour for doing improvements for the company (Being a dedicated employee on the job, 2012). Basically, dedicated employees work only for an employer in whole working lifetime. The dedication level of the people may change in the future depending on the retirement and benefit packages. In this case, employees will rarely have a career at one company lifetime (What Makes a Dedicated Employee Today? 2012). Employees in the future will probably be less or naught aware of the situation of their companies. Because there will be more opportunities in the market. On the other hand, employees who are more conscious know more about the mission, vision, targets, symbols, corporate culture of the organization. In the future, it may still be like this, but the trust will be a key factor for the ones who will still be more conscious about their organization.

3.2 Shortage of Skilled Manpower

Employees want to have a leader whom they can trust. If the managers trust the workers and give those new responsibilities as well as behaving them as they are valuable make it easier to keep the key, skilled employees at the organization (Hedberg & Helenius, 2007). In the future, depending on the demographic change, a shortage of skilled manpower could be seen in some countries. Germany could be one of these countries. A shortage of skilled manpower will jeopardize many jobs. There are so many simple jobs which are dependent upon each skilled position. For instance, if companies cannot find talented engineers to design new machines, they will lose clients and as a result, will require less people for the departments of manufacturing, service, transport and market their goods (Demographic changes - Germany Inc. loses personnel, 2012). There will be talent wars in the future and companies will give high importance to head hunting with very attractive working packages including insurances, more salary etc. Because of these reasons, the companies will try keeping the skilled employees more and more and the trust will still be playing a key role.

3.3 Demographic Trend

The demographics contain the factors like gender, age, ethnicity, job, seniority, salary levels, marital and family status.

For instance, in India, there are a lot of qualified professionals available and there are currently about 52 births in India in a minute (India’s Population, 2012) and according to the forecasts, it is expected that the population of India will be 1.4 billion by 2026, currently it is 1.2 billion (Population Projections Report 2026, 2012). The main idea to be wanted to give in India example is that there are a lot of qualified professionals and there will still be a lot of qualified professionals in the future as well. Because of this reason, if the trust of the worker in India towards to supervisor and/or organization is less, the worker will change the company, but this will basically be no problem for the company. The table below shows how many percentage of the population is /will be older than 65.


Excerpt out of 11 pages


The Importance of Trust at the Organizations Today and Tomorrow
Prifysgol Cymru University of Wales
Human Resource Management
Super Pass
Catalog Number
ISBN (eBook)
ISBN (Book)
File size
386 KB
Essay for the following assignment theme: "The business consultant and author Reinhard K. Sprenger thinks that trust between employer and employees is most important for leadership in organizations. Please make a statement regarding this position and justify your opinion with regard to the staff situation in companies of the future (changes of consciousness, deficit of qualified personnel, demographic trend)."
Trust, Trust at the Organizations, Change of Awareness, Shortage of Skilled Manpower, Demographic Trend
Quote paper
Ilhan Yuece (Author), 2012, The Importance of Trust at the Organizations Today and Tomorrow, Munich, GRIN Verlag,


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