Effects Of Workplace Trust On Employees’ Performance: The Case Of Holeta City Administration Public Sectors

Abstract

Every organization exists to effectively work towards the achievement of greater organizational goals with high performance through the consistent action of trust while working together on the common goal that relies on each individual contribution. So to effectively perform and achieve the set mission, vision and overall goal requires standing together in supporting each other in mutual trust. Hence, the main objective of this study was to examine the effects of workplace trust on employees’ performance in HCAPS. This research was paying attention on eight purposely selected public offices that are expected to represent all other offices. From eight sectors of the total target population of 347, using Taro Yamani (1967) formula the study determined a sample of 187 respondents. The management teams (process owners, team leaders), and experts of the eight selected public sectors were selected as the sources of the required data whereby the researcher managed the data collection works via the questionnaires, and structured interview. In this study, three independent variables were identified: leaders’ trust, organizational trust, and interpersonal trust. Employees’ performance was identified as the dependent variable of the study. The SPSS version 20 was used to analyze the data using descriptive statistics, including mean, standard deviation, and biveriate correlation and multi-leaner regression was used to analysis inferential outputs. According to the descriptive, correlation and regression outputs, it was found out that workplace trust dimensions such as leaders’ trust, organizational trust and interpersonal trust are correlated to and affected employees’ performance significantly and positively (statistical mean 4.1297, 3.9546, 4.2195), (pearson correlation) and 0.955, 0.948, 0.959), and (regression beta coefficient 0.331. 0.211, 0.418). These dimensions have substantial effects on and positively contribute to employees’ performance in Holeta City Administration Public Sectors. On top of this, it was concluded that trust is a very important issue in the public sectors as it has the potential of determining and influencing the performance of the employees in the sectors. It is evident to conclude, inversely, that distrust in workplace: leaders’, organizational and interpersonal (mutual trust) negatively affects employees’ performance by calling counterproductive behavior which in turn harms the organizational successes. Recommendations were forwarded to help organizations to maintain trust so as to attain the goals and objectives.