This document discusses organizational trust and employee engagement. It provides definitions of organizational trust as an employee's confidence in an organization, and employee engagement as a positive work-related state of mind. The significance of both constructs is explored, with organizational trust linked to effectiveness, and employee engagement predicting outcomes like performance and commitment. Antecedents and outcomes of organizational trust and employee engagement are presented in models. The research question examines the relationship between organizational trust and employee engagement in a Korean business context, with a quantitative methodology proposed.

1. Yu Kyoung Park
WFED 597A
ykpark@psu.edu

2. What are the issues?
Fierce Global Competition
Economic Uncertainty
2

3. What are the issues?
Work & Life Balance
Feeling of Achievement & Belonging
3

4. What are the issues?
Organizational
Organizational Trust
Employee Engagement Effectiveness
4

5. Research Variables
5

6. What is organizational trust?
Definition of organizational trust
“an employee’s feeling of confidence that
the organization will perform actions that
are beneficial, or at least not detrimental,
to him or her” (Tan & Tan, 2000, p. 243)
6

7. What is employee engagement?
Definition of employee engagement
“a positive, fulfilling, work-related state
of mind that is characterized by vigor,
dedication, and absorption”
(Schaufeli, Salanova, Gonzalez-Roma, & Bakker, 2002b, p. 74)
7

8. Significance
Why organizational trust matters?
For many years trust has been associated with effective
organizations (Barnes, 1983; Boss, 1978; Dwivedi, 1983;
French & Raven, 1968; Zand, 1972).
Today’s business environment – driven by a global
economy, increased competition, emerging technologies,
and rapid product development – brings constant change,
requiring new measurements of organizational
effectiveness.
8

9. Significance
Why organizational trust matters?
Trust is important in a range of organizational activities
and processes such as team work, leadership, goal
setting, performance appraisal, and in general,
cooperative behaviors (Axelrod, 1984; Elangovan &
Shapiro, 1998; Gambetta, 1988; Jones & George, 1998;
Mayer, Davis, & Schoorman, 1995; McAllister, 1995).
9

10. Significance
Why employee engagement matters?
Employee engagement predicts employee outcomes
, organizational success, and financial performance (e.
g. total shareholder return) (Bates, 2004; Baumruk, 200
4; Richman, 2006).
Watson Wyatt found that companies with highly engaged
employees experienced 26% higher employee
productivity, lower turnover risk, greater ability to attract
top talent, and 13% higher total returns to shareholders
over the last five years.
10

11. Antecedents of organizational trust
Organizational Open
Culture Communication
Leadership
Organizational Integrity
Trust
◈ Antecedents of organizational trust
11

12. Outcomes of organizational trust
Organizational
Commitment
Organizational
Job Citizenship
Satisfaction Behavior
Organizational
Trust
Performance turnover
◈ Outcomes of organizational trust
12

13. Antecedents of employee engagement
Organizational Job
Culture Characteristic
Employee Supervisor
Justice Support
Engagement
Perceived
Organizational Rewards &
Support Recognition
◈ Antecedents of employee engagement 13

14. Outcomes of employee engagement
Work
Performance
Organizational Employee Lower Turnover
Commitment Engagement
Better
Team-working
◈ Outcomes of employee engagement
14

15. Research question
Research Question
What is the relationship
between organizational trust
and employee engagement
in Korean business context?
15

16. Research model
Organizational Employee
Trust Engagement
◈Research Model
16

17. Practical implication
What do research results mean for HRD professionals
working in today’s organizations?
Managers and HRD professionals
can support employee engagement
by developing relevant practice
for the purpose of enhancing
organizational trust.
17

18. Research methodology
Quantitative approach
Structural equation
modeling (SEM) or
Regression Analysis
18

19. References
Barnes, L. B. (1983). Managing the Paradox of Organizational Trust. Harvard
Business Review, 107-116.
Bates, S. (2004). Getting engaged. HR Magazine, 49(2), 44-51.
Baumruk, R. (2004). The missing link: the role of employee engagement in
business success. Workspan, 47, 48-52.
Boss, R. W. (1978). Trust and Managerial Problem-Solving Revisited. Group and
Organizational Studies, 3, 331-342.
Cummings, L. L., & Bromiley, P. (1996). The Organizational Trust Inventory:
Development and Validation. In R. M. Kramer, & T. R. Tyler (Eds.), Trust in
Organizations: Frontiers of Theory and Research (pp. 302-330). Thousand
Oaks, CA: Sage.
Dwivedi, R. S. (1983). Management by Trust: A Conceptual Model. Group and
Organizational Studies, 8, 375-402.
19

20. References
Kahn, W. A. (1990). Psychological conditions of personal engagement and
disengagement at work. Academy of Management Journal, 33, 692-724.
Maslach, C., Schaufelli, W. B., & Leiter, M. P. (2001). Job burnout. Annual Review of
Psychology, 52, 397-422.
Richman, A. (2006). Everyone wants an engaged workforce how can you create it?.
Workspan, 49, 36-9.
Schaufeli, W. B., Salanova, M., Gonzalez-Roma, V., & Bakker, A. B. (2002b). The
measurement of engagement and burnout: a two sample confirmatory factor
analytic approach. Journal of Happiness Studies, 3, 71-92.
Tan, H. H., & Tan, C. S. (2000). Toward the differentiation of trust in supervisor and
trust in organization. Genetic, Social, and General Psychology
Monographs, 126(2), 241-260.
20