Leadership - Importance of trust

4 important questions on Leadership - Importance of trust

Explain why trust is important and how to repair it.

A meta-analytic study found that trust is related to LMX as well as job satisfaction and performance. Trust is therefore fundamental to the development of effective working relationships with bosses (and others).

What is Calculus-Bases Trust (CBT)?

Calculus-based trust is a form of trust is based on keeping records of what another person does for you and what you do for them.
  • It is an “arm’s length” form of trust in which neither party really becomes that vulnerable to the behavior of the other person.
  • The expectations are like contracts, and the consequences of violating trust are punishment or the severing of the relationship  

What is knowledge-based trust (KBT)?

Knowledge-bases trust is level of trust is grounded in how predictable the other person is.
It is developed over time:
  • Through interactions, benefits are exchanged between two parties.
  • People come to expect the other person to come through for them.
  • Information is gathered about the other person in a variety of circumstances.      
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What is identification-based trust (IBT)?

Identification bases trust is a form of trust that is characterized by the leader and follower sharing the same goals and objectives. In other words the follower identifies with the leader's vision.

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