ABSTRACT

A leader is a key to develop trust in the organizations. As trust is a reciprocal process, leaders can establish it by practicing it in their decisions and behavior. Team building in organizations contributes to trust building as interdependence creates the dynamic for reciprocity. Empirical evidence suggests that trust in supervisors is related to job performance, altruism, job satisfaction, interactional justice, procedural justice, and participative decision-making. A high trust culture is essential for adapting to continuous change and continuous improvement. La Porta, Lopez-de-Silanes, Shleifer, and Vishny found evidence in cross section of countries that suggest the role of trust in organizational performance cuts across cultural lines. L. Huff and L. Kelly discovered that organizational trust and propensity to trust was higher in the United States than in Japan, Korea, Hong Kong, Taiwan, China, and Malaysia.