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Mariano Marcos State University

Graduate School
Laoag City



Reporter: Arnel C. Sabuco Jr.
Ilocos Norte Agricultural College
Mobile No. 09085530735
Educational Management 209
Professor: Dr. Alegria T. Visaya

Organizational Trust in Business
Trust is a vital ingredient in organizations since they represent a type of ongoing
relationship (Robert Galford and Anne Seibold Drapeau ) . Organizational trust - trust that the
organization's policies will be fairly administered and implemented as stated.Personal trust -
trust that subordinates place in their manager to be fair and to look out for their interests.
Trust reduces unproductive rumors and second guessing that distracts employees from
their work. It motivates, stimulates creativity, and helps the organization to attract and retain
great employees.
Modeling Trust
Galford and Drapeau offer the following equation to model trust:
Trustworthiness =
C + R + I

S
Where:

C = credibility
R = reliability
I = intimacy
S = self-orientation

These characteristics are described as follows:
Credibility is earned by expertise, by the ability to obtain the required expertise, and by
being up-front about one's limitations.
Reliability is consistency and dependability. Reliable leaders provide a sense of comfort
to their subordinates.
Intimacy is not about revealing personal details, but rather, making the business of the
organization personal and understanding the sensitivities of others.
Self-orientation is the degree to which one focuses on one's own concerns when
interacting with others. Self-orientation decreases trustworthiness. Those who are
motivated by duty or achievement tend to be more self-oriented than those motivated by
meaning or who gain pleasure from the work itself.
Building Personal Trust
To build personal trust, Galford and Drapeau present a five stage process:
1. Engaging - finding common ground and relating to other people, for example, by
appreciating the key challenges that employees face in their jobs.
2. Listening - builds trust by showing that one cares enough to invest the time to listen.
Asking thoughtful questions, getting clarification when necessary, and giving one's
complete attention to the conversation all send the message that one cares about the other
person.
3. Framing - making sure that one understands the core of what the other person is
conveying, and letting him or her know it.
4. Envisioning - looking to the future and identifying an optimistic and achievable
outcome, and helping the other person to visualize the benefits of that outcome.
5. Committing - both parties agree and commit to moving toward the envisioned future.
Building Organizational Trust
Organizational trust is based on belief in the way things are done in the organization.
While organizational trust requires personal trust in the organization's leaders on an aggregate
basis, it is possible to have an untrustworthy supervisor and still believe in the organization.


Galford and Drapeau identified five variables on which organizational trust depends, as
shown in the following equation:
Organizational Trustworthiness =
(A
1
+ A
2
+ A
3
) x (A
4
+ A
5
)

R
Where:

A
1
= Aspirations
A
2
= Abilities
A
3
= Actions
A
4
= Alignment
A
5
= Articulation
R = Resistance

These variables are described as follows:
Aspirations - aspirations provide the incentive for people in the organization to want to
trust each other. Aspirations is another term for business vision.
Abilities - are the resources and capabilities required to fulfill the aspirations.
Actions - actually getting to the task and doing what is needed to reach the organizational
goals rather than losing focus to the distractions that inevitably will arise.
Alignment - having consistency between aspirations, abilities, and actions.
Articulation - communicating the aspirations, abilities, actions, and alignment so that
everybody in the organization knows them and is able to articulate them.
Resistance - building a trusting organization is likely to be met with resistance in the
form of skepticism, fear, frustration, and a "we-they" mindset.

Source: www.thetrustedleader.com/press-equation.html
www.quickmba.com/mgmt/leadership/trusted-leader/