In these difficult, dramatic days, everyone is looking for a something to hold on. Some are looking for family support, others are looking for colleague’s assistance and others can even seek confidence on their job leaders. All these searching are based on trust gained. People are running where they find trust, honesty and solutions to their problems.leader, trust, motivation

Anca Tutulea

English

Research Papers in Economics

                                                                                                                            
 
 
Studies in Business and Economics 
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TRUST – A LEADERSHIP SKILL 
 
 
TUTULEA Anca  
 
Abstract: 
In these difficult, dramatic days, everyone is looking for a something to hold on. Some 
are looking for family support, others are looking for colleague’s assistance and others can even 
seek confidence on their job leaders. All these searching are based on trust gained. People are 
running where they find trust, honesty and solutions to their problems. 
 
 
Keywords: leader, trust, motivation 
 
   
Every  employee  expect  from  leader  honestly  about  the  real  facts  of  the 
situation,  of  the  problem,  vision  about  how  to  get  out  the  crisis,  focusing  on  the 
company’s  strategy  and  wisdom  about  how  to  determine  those  employees  to  work 
together to overcome the situation. It is necessary in tough times that the leader listens 
to  his  employees’  concerns,  shows  empathy  and  reminds  them  of  the  previous 
successes, and to obtain another success in this problem they are facing with and the 
only way to obtain it is to work together as a team. Essential is the unity of the group 
he  is  leading  and  above  all,  gaining  their  trust.  Many  studies  have  shown  the 
importance of great leaders in facing every situation.  
  According to Marian Năstase and other researchers (Năstase M., 2007), skills 
that a leader should have are given below: 
￿  Visionary: Leader should see and sense the future changes that can take 
place  in  the  business  or  external  environment  and  welcome  change 
accordingly. He should motivate and encourage his subordinates to work 
along with him, to face that change, and also he should benchmark and be 
an example for his subordinates. 
￿  Courage: Leaders should develop their own capacity on taking the risks of 
the business. 
￿  Self-Awareness:  It  means  to  realize  that  indeed  he  is  a  leader,  by 
understanding and recognizing his own values, needs and biases. 
￿  Credibility: Believability is achieved through both honesty and consistency 
between both the leader’s statements and actions. Credible leaders are 
straightforward with their subordinates and behave in such a manner that 
earns the subordinates` respect and trust.    
 
 
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￿  Problem-solver: Leader should possess the skill to solve the problems 
arising on daily basis and should have divergent and convergent skill to 
tackle the opposition. 
￿  A  team-builder:  A  good  team-builder  has  the  ability  to  divide  the  task 
efficiently and reward those who perform well but also, keeping in mind not 
to discourage other members of the team. 
￿  Respect  for  employees:  This  includes  the  belief  that  individuals  are 
responsible for their own actions and ideas. It includes an awareness of a 
person’s  individuality  by  recognizing  their  unique  values,  attributes  and 
skills.  
￿  Empathy:  Empathetic  leaders  will  be  better  able  to  help  subordinates 
identify the situation and then develop a plan to improve it.  
￿  A  manager:  He  should  know  how  to  manage  people,  time,  energy, 
emotions. 
￿  A  communicator:  He  should  communicate  with  his  subordinates, 
speaking to them, addressing their problems, see that they may trust him. 
He also should know how to communicate both verbally and in writing so 
that he could motivate the employees. 
￿  A  planner:  He  should  possess  the  planning  skills  and  should  use  the 
planning tools to achieve short and medium term goals, which plays a vital 
role in the achievement of long-term goals. Also he should make different 
strategies for the accomplishment of settled goals. 
  All these rolls are not easy to perform, that is why a leader’s role is such a 
complex one, expecting special skills and traits and above all trust. 
The Center for Creative Leadership (CCL®) as they declare is a top-ranked, 
global  provider  of  executive  education  that  develops  better  leaders  through  its 
exclusive focus on leadership education and research. Founded in 1970 as a nonprofit, 
educational institution, CCL helps clients worldwide cultivate creative leadership - the 
capacity to achieve more than imagined by thinking and acting beyond boundaries - 
through an array of programs, products and other services. Ranked among the world’s 
top providers of executive education by BusinessWeek and the Financial Times, CCL 
is headquartered in Greensboro, NC, with campuses in Colorado Springs, CO; San 
Diego, CA; Brussels, Belgium; and Singapore. Its work is supported by more than 500 
faculty members and staff. 
The World Leadership Survey (CCL, 2009) helps organizations gain a better 
understanding of employees’ perceptions of organizational leadership and employees’ 
commitment to their organizations. From the report were extracted the results useful to 
the  subject  approached.  The  survey  included  respondents  from  three  regions:  the 
Americas,  Asia  Pacific  (APAC),  and  Europe,  the  Middle  East  &  Africa  (EMEA). 
Extracting some of their results I would like to focus on leader, seen as model by their 
followers.  
Here is some information about respondents, helping this to understand the 
results and so to conclude.                                                                                                                             
 
 
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The average age of respondents is 46.  According to the three regions, the 
percent of respondents by regions are: 11% APAC, 14% EMEA and 75 % Americas. 
The  gender  of  respondents  according  to  the  three  regions  is  represented  in  figure 
below, Figure 1: Gender by Region. 
 
Figure 1. Gender by Region 
 
Source: The World Leadership Survey, January, 2009 
 
The survey included 49% female respondents from Americas, the rest of them 
in percent of 51% were men. In the other two regions, APAC and EMEA, percentages 
of respondents were the same, 34% female respondents and 66% male respondents. 
The organizational  level of the surveys respondents, according to the three 
regions is represented in the Figure 2: Organizational Level by Region. The survey 
included all workers, from top management to bottom line workers. 
 
Figure 2. Organizational Level by Region 
 
Source: The World Leadership Survey, January, 2009 
    
 
 
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It  can  be  seen  that  upper  middle  representatives  were  in  majority  through 
respondents, followed by executives and then middle representatives. The majority of 
respondents occupied leading positions, fact that is relevant to this survey. 
From the World Leadership Survey were extracted some charts results that 
reveal respondents point of view and in fact their beliefs about trust. 
  “Trust is a critical element of organizational life, the lack of which can result in 
less  efficiency  and  commitment  at  work.  One  important  element  of  trust  at  work  is 
employees trusting the people they work with on a day-to-day basis. Fundamentally, 
the ability of an organization to function efficiently enough to survive— and perhaps 
thrive rests almost entirely on the willingness of co-workers to work effectively together 
— to trust both that the work will get done and that the motives for the decisions are 
fair.  The  interdependence  necessary  for  successful  peer  interaction  and  teamwork 
requires  trust.  If  this  willingness  to  trust  is  absent,  an  organization  is  fraught  with 
conflict, much slower, less efficient, and definitely less viable, especially in this current 
economic crisis”(CCL, 2009). 
  From  the  same  questions  about  respondents  trusting  the  people  they  work 
with, were made three charts according to different point of view of the same issue: 
region summary (Figure 3), organizational level summary (Figure 4) and age summary 
(Figure 5). 
 
Figure 3. Trust the people you work with – Region summary 
 
Source: The World Leadership Survey, January, 2009 
 
  According  to  region  differences,  the  results  showed  that  there  are  no 
differences by region. More than 80% of people from all regions trust the people they 
work with some or a lot. 
                                                                                                                             
 
 
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Figure 4. Trust the people you work with – Organizational level summary 
 
Source: The World Leadership Survey, January, 2009 
 
  According to this, people higher in the organization are significantly more likely 
to say they trust the people they work with. What this means is that executives are 
likely to not perceive a trust issue because they trust the people they work with, while 
people lower down (who there are more of) are likely to have large trust issues. 
 
Figure 5. Trust the people you work with – Age summary 
 
Source: The World Leadership Survey, January, 2009 
 
  The last point of view of this issue is age summary.  Older workers trust the 
people they work with more than younger respondents do. What this means is that 
older people are likely to not perceive as significant a trust issue as younger people 
are. 
  In  any  organization  it  is  important  to  trust  your  colleagues,  but  also  it  is 
important to trust the manager of the organization. With three different point of view of    
 
 
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the issue “Trust your manager” were presented the results: region summary (Figure 6), 
organizational level summary (Figure 7) and age summary (Figure 8). 
 
Figure 6. Trust your manager – Region summary 
 
Source: The World Leadership Survey, January, 2009 
 
  It  can  be  seen  that  there  are  differences  by  region.  Respondents  from  the 
Americas report having more trust in their manager than do respondents from EMEA or 
APAC. 
 
Figure 7. Trust your manager – Organizational level summary 
 
Source: The World Leadership Survey, January, 2009 
 
  It is interesting to notice that people higher in the organization are significantly 
more likely to say they trust their manager than are people lower in the organization. 
This difference in perceptions of trust can cause problems for leaders because they                                                                                                                             
 
 
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can be seen as being disconnected from the reality within the organization which is 
that  there  is  a  substantial  trust  issue.  Trust  is  in  the  eye  of  the  beholder  and  just 
because executives trust doesn’t mean most of the employees do. 
 
Figure 8. Trust your manager – Age summary 
 
Source: The World Leadership Survey, January, 2009 
 
  The results showed that older workers trust their manager more than younger 
respondents do. One explanation for this result is that older people tend to be at higher 
levels  in the organization, and people at  higher  levels have more trust for reasons 
mentioned earlier. 
After identifying respondents perceptions about trusting the people they work 
with and their managers, it is very important to determine the relation between this trust 
gained or lost and employee’s motivation perception. If employees are well motivated 
the leader is responsible for that, if not the leader must do something in order not to 
lose those people. Motivation can be divided in financial or non-financial.  
Here are some payment systems that organizations can use to motivate its 
employees: 
￿  Wages and salaries – It is known that wages are normally paid per hour worked 
and workers receive money at the end of the week, especially in America used. 
But salaries it is known that are paid at the end of each month and are based on a 
previous contract between parts; 
￿  Piece-rate – It means paying a worker by his productivity, calculating the rate per 
item he produces in a certain period of time. As an advantage, this may increase 
workers speed and by that productivity, but there may be also disadvantages like 
reducing the quality of work; 
￿  Fringe Benefits – This refers to items an employee receives in addition to their 
normal  wage  or  salary,  like  company  car  or  phone,  free  meals,  private  health    
 
 
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insurance, free tickets to gym, concerts and vacations, etc. All these can increase 
employees commitment and loyalty to organization; 
￿  Performance-related  pay  –  It  rewards  great  employees  that  reach  established 
targets, but it can be a harmfully to the organization by increasing competition that 
will destroy team working projects; 
￿  Profit sharing – It means that employees receive a percentage of the organization’s 
profit. This should improve loyalty to the company between employees, but often 
this part of the profit is too small to encourage employees increasing productivity; 
￿  Share ownership – Up to their possibilities, employees may buy shares from the 
organization  and  so  to  become  shareholders  to  it.  This  is  indeed  an  effective 
financial  motivation  for  employees  that  will  determine  them  to  work  harder,  but 
often  this  opportunity  is  available  only  for  senior  managers,  so  this  can  cause 
resentment among other staff.  
  But also non-financial motivation can increase productivity like: job enrichment, 
job enlargement or delegating routine and simple tasks, congratulations in public and 
team working. 
  “An  individual’s  motivation  is  important  because  greater  motivation  leads  to 
increased productivity, while diminished motivation leads to less productivity. Increased 
motivation on the part of employees can also lead to better alignment with the vision 
within  the  organization,  which  can  result  in  organization-wide  improvements  in 
efficiency  and  effectiveness”  (CCL,  2009).  Here  were  determined  trust  in  people 
respondents work with (Figure 9) and in their manager (Figure 10) and according to 
these their motivation. 
 
Figure 9. Trust the people you work with & Motivation 
 
 Source: The World Leadership Survey, January, 2009 
                                                                                                                             
 
 
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  Results revealed that those who trust the people they work with are more likely 
to say they are motivated than are those with lower levels of trust. This is true for all 
regions, all levels, and all ages. 
 
Figure 10. Trust your manager & Motivation 
 
 Source: The World Leadership Survey, January, 2009 
 
  The results show that those who trust their manager are more likely to say they 
are motivated than are those with lower levels of trust. This is true for all regions, all 
levels and all ages. 
Trust  is  one  of  those  things  that  is  earned  and  not  given  freely.  Gaining 
someone's trust is something that comes with time and proven loyalty. To earn trust, a 
leader must prove his level of honesty. Respect goes hand in hand with trust. Without 
it, there can be no trust. 
Here are some advices for leaders in gaining and maintaining trust (Heller, R., 
1999): 
￿  If promises are made, they should always be kept. 
￿  Going behind people’s backs is not permissible.  
￿  People should be kept fully informed of anything that might directly affect 
them. 
￿  Performance should be judged and rewarded fairly. 
   The  first  job  of  any  leader  is  to  inspire  trust,  said  Steven  Covey  and 
recognized as one of Time Magazine's 25 most influential Americans, an internationally 
respected leadership authority, family  expert, teacher, organizational consultant and 
author,  his  advice  has  given  insight  to  millions.  “Trust  is  confidence  born  of  two 
dimensions: character and competence. Character includes your integrity, motive, and 
intent  with  people.  Competence  includes  your  capabilities,  skills,  results,  and  track 
record. Both dimensions are vital”, said Steven Covey. He has identified 13 common    
 
 
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behaviors of trusted leaders around the world that build and allow maintaining trust 
(www.leadershipnow.com).  These are:  
-  Character behaviors: 
1.  Talk Straight 
2.  Demonstrate Respect 
3.  Create Transparency 
4.  Right Wrongs 
5.  Show Loyalty 
-  Competence behaviors: 
6.  Deliver Results 
7.  Get Better 
8.  Confront Reality 
9.  Clarify Expectation 
10. Practice Accountability 
-  Character and competence behaviors: 
11. Listen First 
12. Keep Commitments 
13. Extend Trust 
Gaining organizational trust is a key leadership skill, because trust is difficult to 
build, but it is easy to lose. Every leader must work hard for gaining his followers trust 
and then in finding ways of showing people that he trust them to act effectively. 
 
 
References: 
 
·  Heller, R., (1999), Effective leadership, London, Dorling Kindersley Limited 
·  Landsberg,  M.,  (2008),  Leadership,  viziune,  motivatie,  elan,  Bucuresti,  Curtea 
Veche Publishing  
·  Lee, N.R., The practice of managerial leadership, USA, Xlibris Corporation 
·  Năstase, M. (2007), Lideri, leadership şi organizaţia bazată pe cunoştinţe, Editura 
ASE, Bucureşti. 
·  Parry, K.W., Meindl, J.R.,  (2002), Grounding Leadership Theory and Research: 
Issues, Perspectives and Methods, Information Age Publishing Inc., USA 
·  Patching,  K.,  (2007),  Leadership,  Character  and  Strategy:  exploring  diversity, 
Palgrave Macmillan Ltd. 
·  Stephen, R., (2006), Etica liderului efficient sau conducerea bazata pe principii, 
Bucuresti, Editura Allfa 
·  CCL (2009) World Leadership Survey, Center for Creative Leadership  
·  http://www.coveylink.com 
·  www.leadershipnow.com 

Effective leadership, London, Dorling Kindersley Limited ·

Etica liderului efficient sau conducerea bazata pe principii, Bucuresti, Editura Allfa · CCL

Grounding Leadership Theory and Research: Issues, Perspectives and Methods,

TRUST – A LEADERSHIP SKILL

http://eccsf.ulbsibiu.ro/RePEc/blg/journl/5210tutulea.pdf

TRUST – A LEADERSHIP SKILL

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