Developing Manager-Employee Trust.

• Position: Brief Article

With profits on the way down and unemployment on the way up, companies that have a trust-based management system and high employee morale will have a significant edge over those that don't. Workplace experts even maintain that honesty and trust in the office are key to surviving through tough economic times. However, Watson Wyatt Worldwide, Bethesda, Md., found in a study of 7,500 employees that just half trusted their senior managers.

According to Diane Tracy and William J. Morin, authors of Truth, Trust, and the Bottom Line, managers must take a "coach approach" in their management style in order to develop and maintain trust among their employees. This is especially true for companies facing corporate downsizing. The manager-coach must communicate with employees as honestly and directly as possible about their performance and future. In turn, this can help to maintain confidence and alleviate fears among staff members, particularly during...