Practical Strategies for Trust Management in Virtual Organizations
Trust is always associated with building and functioning of an organization. For example, in organization and management theory, Henri Fayol (1949) pointed out that crucial issues include good atmosphere among colleagues, esprit de corps, and trust. Trust played the foremost role in the past, but it is still a meaningful phenomenon in contemporary organizations. Interest in trust grows mutually with a higher and higher number of strategic alliances and other forms of collaboration. It can be discerned that lack of trust results in an increase of 50% in the costs of business activity (Ryan 1996). Mistrust toward people evolves into the need for control and monitoring of their behaviors, which create additional costs. Doing business in tumultuous times indissolubly leads to trust, which becomes an essential factor in strategy and condition for existence of an organization.