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Organizational Trust - Result of Formal and Informal Relationships Development in Business Organizations

In: 16th Economic International Conference NCOE 4.0 2020

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  • Simona Buta

    (“Stefan cel Mare†University of Suceava, Romania)

Abstract

There are studies and applications that have argued that trust, as a phenomenon, exceeds the interpersonal limit, it leaving its mark both at the organizational level and at the socio-economic level. Thus, trust becomes an important aspect for leading organizations and not only. The present research aims to analyse the relationship between organizational trust and all formal and informal networks / relationships from business organizations in North-eastern Romania. The research aimed to identify whether there is a strong link between the promotion of formal relationships by management and a high level of trust and the development of informal relationships. For this research we used a descriptive, empirical-analytical methodology. The data obtained from the interpretation of the questionnaire, at the level of the companies included in our sample showed that there is a strong link between formal relationships and networks (such as internal relationships to a company and which are given by organization chart, internal rules and various regulations) and relations and informal networks (in which case we are talking about informal relationships that double the internal organization chart of a company) and the degree of trust. The strong connection is demonstrated by the coefficients obtained (Ï (128) = 0.430 - demonstrating the high correlation between formal and informal relations, respectively Ï (128) = 0.407 - demonstrating the high correlation between formal relations and the degree of trust). This means that a more precise delimitation of formal working groups stimulates the creation of a climate of trust between compartments / departments / groups. If the organizational climate in the company allows the development of personal relationships, there is a certain level of trust between employees. Moreover, we have identified the fact that at the level of the companies included in our sample there is a greater or lesser concern of the decision makers from these companies in the development and operation of informal networks / groups; we must mention that this concern is different by activity sectors / companies.

Suggested Citation

  • Simona Buta, 2020. "Organizational Trust - Result of Formal and Informal Relationships Development in Business Organizations," Book chapters-LUMEN Proceedings, in: Carmen NÄ‚STASE (ed.), 16th Economic International Conference NCOE 4.0 2020, edition 1, volume 13, chapter 20, pages 226-236, Editura Lumen.
  • Handle: RePEc:lum:prchap:13-20
    DOI: https://doi.org/10.18662/lumproc/ncoe4.0.2020/20
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    References listed on IDEAS

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    1. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
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    More about this item

    Keywords

    trust; organizational trust; formal relationships/networks; informal relationships;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • F1 - International Economics - - Trade
    • F3 - International Economics - - International Finance
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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