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The Impact of Trust-Building Leadership Behaviour at Selected Organisations in the Financial Sector

Author

Listed:
  • Emoke Nyeki

    (Budapest University of Technology)

  • Marta Juhasz

    (Budapest University of Technology)

Abstract

The study investigates the extent to which trust is reflected in managers' behaviour in treating employees and how this is perceived by subordinates. Our analysis was conducted using the Pearson's chi-square test and tests determining the likelihood ratio and linear relationship. Analysing the responses of a total of 556 employees from four financial organisations, we examined how managers can build trust with their employees and how, beyond the treatment by managers, the degree of change perceived within the organisation and the attitude of trust in employees affected employee engagement. The findings confirm that the experience of trust has a knock-on effect on the manager: it increases the manager's internal security and self-confidence, which serves as an additional resource to reinforce the atmosphere of trust within the organisation.

Suggested Citation

  • Emoke Nyeki & Marta Juhasz, 2024. "The Impact of Trust-Building Leadership Behaviour at Selected Organisations in the Financial Sector," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 23(3), pages 140-170.
    • Handle: RePEc:mnb:finrev:v:23:y:2024:i:3:p:140-170
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    More about this item

    Keywords

    trust; leadership; people management; change;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices

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