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An Analysis of the Relationship between Trust and Employee Empowerment: A Field Study

DOI: 10.3923/ibm.2012.264.269

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Abstract:

Trust within organization plays an important role in enhancing the interaction among superiors and subordinates which are reflected on the way effective organizational goals are achieved. One of the core functions of effective manager is to enhance confidence climate with his/her relations with peers and subordinates. Furthermore, employee empowerment has become an important management approach to motivate subordinates and lead them in an efficient manner. Employee empowerment involves delegation of authority through which lower level management can make autonomous decisions without referring to their superiors. Data were collected from a sample of 206 participants whose responses were usable for statistical analysis. Descriptive analysis, one sample t-test and linear regression are performed to reach the final results. Results of the study indicate that trust is at a medium degree while employee empowerment is at a high level. At the same time, results show that there is a significant correlation between within organization trust and employee empowerment. It is hoped that this study will offer some insight for the importance of within organization trust to all management approaches and techniques, especially in effective employee empowerment. The study proposes several directions for further research such as conducting more empirical studies on the antecedents and outcomes of both within organization trust and employee empowerment.

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