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An empirical study of organizational trust, employee engagement and job performance relationship

Author: ShenHaiPeng
Tutor: ChenMingShu
School: Central South University
Course: Business management
Keywords: Social Exchange Psychological Contract Trust insideOrganization Employee Engagement Job Performance
CLC: F272.92
Type: Master's thesis
Year: 2012
Downloads: 57
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As now is the era of knowledge economy, the mode of modern and humanized management has gradually dominated in the organization, so the relationship between employees and enterprises has been fundamentally changed. Management practitioners are aware of that the staff" potential and enthusiasm for work are the ultimate drivers to business success and long-term development, so managers give more attention to employee engagement, which can be an effective predictor of organization performance. It is the source of obtaining competitive advantage to improve employee engagement. However engagement is not high but it is an indisputable fact that has also become a major problem facing managers. This paper has made engagement as a meditated variable, and stematically examined the relationship of trust within the organization on the engagement and job performance. The conclusions reveal the inner mechanism about how trust within the organization enhances the levels of employee performance, also it provides some valuable insights for management practitioners to retain talent and keep the organization competitive advantage.This paper firstly summaries the theory and empirical results about the current study of trust within the organization,employee engagement and job performance through reading the domestic and international research literatures. Secondly, it proposes the theoretical assumptions of the study model on the basis of reviewing and evaluating previous studies. Then the study surveys227employees in more than30enterprises across mid China through a questionnaire and analysis the collected data to individually inspect the proposed assumptions using statistical software SPSS17.0and Lierel8.70. According to the main conclusions of this article, it proposes some practice suggestions for enterprise management. The main conclusions are as follows:(1) The trust of their colleagues,trust in leadership and organizational trust are the dimensions of trust within organization, they are the progressive layers. Trust of their colleagues can positively promote trust in leadership which significantly influence organizational trust. While trust of their colleagues does not directly affect organizational trust, the relationship between them is mediated by trust in leadership;(2) Trust of their colleagues only has a significantly positive effect on work engagement, but organizational trust has a significantly positive effect on work engagement as well as organization engagement, while trust in leadership not. Trust of their colleagues and organizational trust are antecedents of engagement;(3) Work engagement can significantly promote the employees’task performance but has no effect on relationship performance. Organization engagement can forward the promotion of task performance and contextual performance;(4) Trust within the organization has a positive impact on job performance. Trust of their colleagues can directly promote the contextual performance, while trust in leadership and organizational trust has a indirect impact on task performance and contextual performance. The relationship between trust and job performance is partially mediated by engagement;(5) Trust within the organization has significant differences in gender, educational level and firm size, and engagement has a significant difference in gender, firm size and business nature. It indicates that some demographic characteristic variables are important factors of trust and engagement.

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CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making > Corporate Administration > Personnel Management
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