Trust & Performance


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A leader's guide to building trust and performance

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Trust & Performance

  1. 1. Trust & Performance Dr. Amine Ayad
  2. 2.  What is trust?  Why is “trust” important?  Are there potential negative consequences to trust? AMINE AYAD – DM 2
  3. 3. Different authors define trust differently  Assured reliance on the character, ability, strength, or truth of someone or something (Source:  An expectancy held by an individual or a group that the word, promise, verbal or written statement of another individual or group can be relied upon (Rotter, 1967: 651).  A personality trait of people interacting within an organization (Farris, Senner, & Butterfield ; 1973: 145). AMINE AYAD - DM 3
  4. 4. Numerous theories attempted to explain trust  Classic theory of management: Workers are motivated by external factors i.e. rewards & punishment. They would slack without supervision  Economists: Humans are self-benefiting in an opportunistic way  Agency theory: Trust is a product of negotiations i.e. contractual  Anthropologists: Trust is cultural i.e. in certain cultures actions are done for the benefit of the collective not the individual  Social identity theory: Individual identity tied to the organization i.e. mutual success necessitates trust AMINE AYAD - DM 4
  5. 5. Calculated and uncalculated methods of trust provide clarity to understanding trust Calculated I trust you because you will be held accountable if you don’t fulfill my trust. It is in your best self-interest. It is contractual. Uncalculated I trust you because you will have my best interest in mind regardless of external factors such as rewards & punishments and / or contractual obligations. AMINE AYAD - DM 5
  6. 6. Seven dangerous factors that lead to bad team performance Bad Performance No agreement - paralysis Groupthink (agreement at any cost) Free-riding (no contribution) Bad Apple Effect (negative member) No Accountability for Results Lack of TrustWeak functional knowledge AMINE AYAD - DM 6
  7. 7. Absence of trust among team members hampers team’s effectiveness Conceal Weaknesses Hide mistakes Don’t ask for help Don’t offer to help Jump into conclusions Don’t tap into one another’s experience AMINE AYAD - DM 7
  8. 8. Employee’s trust is shaped by 4 key influencers Leader or CEO Other Employees Direct Supervisor Company Employee’s Trust AMINE AYAD - DM 8
  9. 9. There is a relationship between trust and performance Davis et al. (2000) found that trust was significantly related to sales, profit and turnover, and to employees' perceptions of their managers' integrity and competence. Observation: Trust without verification process opens the door for risks and inadequacies. AMINE AYAD - DM 9
  10. 10. Trust building is about managing the task, self, and relationships Openness in communication was seen as highly important, because gate-keeping of information or keeping employees in ignorance, creates uncertainty, fear and distrust. Essentially, supervisors were most likely to be trusted if they were seen to take a caring, mentoring approach with their supervisees while still being regarded as competent and deserving of authority. By contrast, managers perceived as untrustworthy were seen as self-serving, failing to give recognition, stifling the employee's potential, quick to blame and criticize, and perceived as incompetent. It can be concluded that a trusted supervisor not only manages the task responsibilities of his or her role, but manages the relationship and power differences positively at the same time (Evans, 1996) AMINE AYAD - DM 10
  11. 11. Mentorship builds trust Not all supervisors are mentors; however, Bell (1996) argues that, when supervisors take on a mentoring role (formally or informally), the individuals as well as the organization benefit. House (1981) identified four dimensions of mentoring: emotional support (e.g. trust, concern, listening and esteem); appraisal support (e.g. affirmation, feedback); informational support (e.g., advice, suggestions, directives and information); and instrumental support (e.g. resources, labor and time). These factors are clearly related to issues of trust in supervisor-supervisee relationships. AMINE AYAD - DM 11
  12. 12. Integrity & Sincerity are key elements to building trust & performance Trust Productivity & Efficiency leading to Results & Performance Fairness Reliability Accountability Consistency Openness Care Mentorship Transparency Competency Collaboration Teamwork Confidence Engagement Tenure Learning-in- action Functional- Competency Integrity & Sincerity Integrity & Sincerity AMINE AYAD - DM 12
  13. 13. POA to build trust Create a Plan of Action (POA) to build trust:  Sincere self-reflection on trust-relationships (Transparency, Competency, Reliability, Consistency, Fairness, Etc.)  Trust assessment (360 surveys)  Employees who report directly to you  Other employees in your business  Community leaders  Non-Profit organizations  Your leaders  Business Partners  Peers AMINE AYAD - DM 13