This document discusses trust as the foundation of leadership. It defines trust as a positive expectation that another will not act opportunistically based on experience and familiarity. The key dimensions of trust are identified as integrity, competence, consistency, loyalty, and openness. Trust is essential for leadership as it allows followers to feel vulnerable without fear of exploitation. Different types of trust are described ranging from deterrence-based to identification-based trust. Basic principles of trust emphasize that mistrust reduces cohesion, productivity and trust while trust increases these factors and can be rebuilt over time.

1. Trust: The Foundation
of Leadership

2. Trust or lack of trust is
an increasingly important
leadership issue in today’s
organization.

3. What is Trust?

4. Trust:
A positive expectation that another will
not—through words, actions, or decisions—
act
opportunistically.
Trust is a history-dependent process
(familiarity) based on relevant but limited
samples
of
experience
(risk).

5. → Positive expectation assumes knowledge and
familiarity about the other party.
→ Opportunistically refers to the inherent risk
and vulnerability in any trusting relationship.

6. DIMENSIO
NS OF
TRUST

7. Dimensions of Trust
Integrity:
It refers to honesty and truthfulness. Of
all the dimensions, this one seems to be
most critical when someone assesses
another's trustworthiness. For instance:
Follow policy of company, Respect coworkers, exhibit responsible behavior

8. Competence:
It encompasses an individual’s technical
and interpersonal knowledge and skills.
Does the person know what she/he is
talking about?
For Instance:

9. Listening
Understands and learns from what others say.
Reading
Comprehension
Grasps the meaning of information written in English,
and
applies it to work situations.
Speaking
Conveys ideas and facts orally using language the
audience
will best understand.
Writing
Conveys ideas and facts in writing using language the
reader
will best understand.

10. CONSISTENCY:
It
relates
to
an
individual’s
reliability, predictability and good
judgment in handling situations.”
Inconsistency between words and
action decrease trust”.
For instance:
This
dimension
is
particularly

11. “Nothing is noticed more quickly…..
Than a discrepancy between what
executives preach and what they
expect their associates to practice….”

12. LOYALITY:
It is the willingness to protect and
save face for another person. Trust
requires that you can depend on
someone not to act opportunistically.

13. OPENNESS:
The final dimension of trust is
openness. Can you rely on person to
give you the full truth?

14. TRUST AND
LEADERSHIP
Leadership
TRUST
and
INTEGRITY

15. Trust is primary attribute associated
with leadership and when this trust is
broken, it can have serious adverse
effects on a group’s performance.
Honesty and Integrity are among the
most important traits associated with
leadership. Mr. Don Carry have rightly
said that” you can’t lead people who

16. When followers trust a leader, they
are willing to be vulnerable to the
leader’s actions- confident that
their rights and interest will not
violated. People are unlikely to look
up to or follow someone whom they
perceive as dishonest or who likely
to take advantage of them.

17. TYPES OF TRUST.

18. DETERRENCE-BASED
TRUST :
One violation or inconsistency can
destroy the relationship. This form of
trust is based on fear of reprisal( if
the trust is violated). Individuals who
are in this type of relationship do what
they say because they fear the

19. Through on their obligation.
Deterrence-based trust will work only
to the degree that punishment is
possible, consequences are clear and
the punishment is actually imposed if
the trust is violated. Most of the new
relationship begins on a base of
deterrence. For instance:

20. A situation in which you are selling your
car to a friend of a friend. You don’t
know the buyer. You might be
motivated to refrain from telling this
buyer all the problems of your car that
you know about. Such behavior would
increase your chances of selling your
car. But you might lose a opportunity to

21. KNOWLEDGE-BASED
TRUST:
Most organizational relationship are
rooted in knowledge based trust. That
is, trust is based on the behavioral
predictability that comes from a
history of interaction. It exits when
you have adequate information about

22. Be able to predict their behavior
accurately. Knowledge-based trust relies
on information rather than deterrence.
Knowledge
of
other
party
and
predictability of his or her behavior
replaces contract, penalities and legal
arrangements
more
typical
to
deterrence-based
trust.
In
this
knowledge based level, trust is not

23. IDENTIFICATIONBASED TRUST:
The highest level of trust is achieved
when there is an emotional connection
between the parties. It allows one party
to act as an agent for other and
substitute
for
that
person
in
interpersonal transactions. Trust exits

24. Appreciate the other’s want, need and
desire.
The best example of identification-based
trust is a long term, happily married
couple. A husband comes to learn what’s
important to his wife and anticipates
those actions. Wife in turn trust that he
will anticipate what’s important for her
without having to ask her. Increased

25. BASIC PRINCIPLES
TRUST:
OF
≈ Mistrust drives out trust.
≈ Trust increase cohesion.
≈ Mistrusting groups self destructive.
≈ Mistrusting
generally
reduces
productivity.
≈ Trust can be regained.

26. MISTRUST
OUT TRUST:
DRIVES
People who are trusting demonstrate
their trust by increasing their
openness
to
others,
disclosing
relevant information and expressing
their true intentions.

27. TRUST INCREASE
COHESION:
Trust holds people together. Trust means
people have confidence that they can rely
on each other. If person need help and
other person knows that the others will
be there to fill in. group members who
display trust in each other will work

28. MISTRUSTING GROUPS
SELF DESTRUCT:
The corollary to the pervious principle
is that when group member mistrust
each other, they repel and separate.
They pursue there own interest rather
than the groups. Members of

29. MISTRUSTING
GENERALLY REDUCES
PRODUCTIVITY:
Mistrust always reduces productivity.
Mistrust focuses attention on the
differences in member interests, making
it difficult for people to visualize common
goals. People respond concealing behavior

30. CONCLUSION
Build trust by
→ Sharing information
→ Encouraging open communication
→ Sticking to their ideals