The effects of organizational structure on employee trust and job satisfaction

Abstract

Keywords: organizational trust, job satisfaction, high performance organization, and traditional organization. Employees in all organizations want to work in an environment of trust and respect where they feel they are making a real contribution to organizational goals and objectives. They want to be able to have the opportunity to show management that they can accomplish a task with the creativity obtained from working in teams. There is a consensus in the literature reviewed that trust and job satisfaction are essential elements to an organizations success. Cook and Wall (1980) conclude that “trust between individuals and groups within organizations is a highly important ingredient in the long-term stability of the organization and the well-being of its members” (39). By examining the relationship between trust in management and employee job satisfaction, corporations will have the knowledge necessary to assess their current culture and, if needed, develop a culture that allows for growth of its employees through high levels of trust. The purpose of this study was to research the possible relationship that exists between the individual’s level of organizational trust and the individual’s job satisfaction. Also examined was the influence the organizational culture (high performance vs. traditional hierarchical organization) had on the individual’s level of trust and job satisfaction. To examine this relationship, three hypotheses were tested using a survey that examined organizational trust and job satisfaction. Organizational trust was measured by four dimensions (openness/honesty, reliability, concern for employees and identification). Four organizations agreed to participate in the study. Each organization was sent 25 surveys to distribute to personnel. Two of the organizations were, by definition, traditional hierarchical organizations and the other two were high performance organizations. Out of the 100 surveys distributed, 84 completed and valid surveys were returned. Therefore, the overall response rate was 84 percent. The findings of this study indicate that a relationship does exist between an individual’s level of organizational trust and his/her overall job satisfaction. The study also indicated that a significant relationship exists between the structures of the organization and overall levels of both trust and job satisfaction