Organizational Change: How Trust Affects Employee Productivity

Abstract

Abstract Change, it can make one person perform at their peak, or elicit anger, frustration and stifle the performance of another. This dichotomy in our nature, although complex, is not cast in stone. As human beings we are equipped mentally, and physically, to adapt to change. So, why, when change is all around us are we so prone to resist it? If we were inclined, for example, to resist change at our place of work, the ramifications could be detrimental if not devastating. But should the blame fall solely on the employee? The workplace can bring an individual financial, social, and psychological success. If we look for the reason(s) why an employee is not reaching their potential the list might become daunting. If it more cost-effective to keep an employee than to train a new one, one could reason that employers could reap a greater reward by including their employees in the decision-making process. To illustrate; “This is what we are planning to do, the company is open to discussing how the changes will unfold, and how they might affect your work.” While no single company can fix an uncertain economy, a company can make work more predictable simply by keeping its employees briefed and giving advance warning when changes are imminent.https://business.linkedin.com/talent-solutions/blog/employee-retention/2016/7-simple-ways-to-increase-employee-loyalty The hypothesis of this paper is that resistance to change comes from a lack of trust in the person, or persons attempting its implementation. Can trust, between employer and employees, be the underlying factor that motivates production and fosters company loyalty? A premise that seems so obvious and yet has only recently become popular. If your employee trusts you, they may work harder because a particular psychological-stressor has been removed, exclusion. Most people want to belong, so it would stand to reason that a negative message would be less likely to create a positive result. Companies that have employees who are "engaged"—meaning they're making decisions rather than simply following orders—have a 31% lower turnover rate. https://business.linkedin.com/talent-solutions/blog/employee-retention/2016/7-simple-ways-to-increase-employee-loyalty Let us consider the importance of exclusion’s opposite, inclusion. When a person or group of persons feel that their ideas and efforts have worth, will they become more enthusiastic about the end result of a project, regardless of the challenges encountered? This can be applied to individuals as well as those working in teams. When employers put the employee first, above the customer, will customer satisfaction suffer or flourish? Billionaire investor Paul Tudor Jones cofounded the nonprofit JUST Capital in 2013 to measure what Americans want from corporations, and which of these corporations are contributing to a "more just" society. According to JUST's principles, the companies that recognize the human aspect of their business don't have to make sacrifices to feel good — by acting in a "more just" way, they are investing in long-term value that trumps chasing fleeting short-term gains at the expense of everything else. https://www.businessinsider.com/best-companies-of-2017-ranking-just-capital-2018-1 This paper will examine several psycho-social theories, to determine if there is any validity to the theory that trust plays an enormous role in workplace relationships, and more specifically in employee-productivity.