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

  • Simona Buta “Stefan cel Mare” University of Suceava, Romania
Keywords: trust, organizational trust, formal relationships/networks, informal relationships

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 (ρ (128) = 0.430 - demonstrating the high correlation between formal and informal relations, respectively ρ (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.

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Published
2020-08-11
How to Cite
Buta, S. (2020). Organizational Trust - Result of Formal and Informal Relationships Development in Business Organizations. LUMEN Proceedings, 13, 226-236. https://doi.org/10.18662/lumproc/ncoe4.0.2019/20
Section
Management, business administration and economic informatics