The Impact of Trust-Building Leadership Behaviour at Selected Organisations in the Financial Sector

• Published in: Financial and economic review Vol. 23; no. 3; pp. 140 - 170
• Main Authors: Nyéki, Emőke, Juhász, Márta
• Format: Journal Article
• Language: English
• Published: Budapest Central Bank of Hungary 01.09.2024
• Subjects: Corporate culture; Employee attitude; Employee involvement; Employee management relations; Employees; Financial institutions; Leadership; Managers; Trust
• ISSN: 2415-9271; 2415-928X
• DOI: 10.33893/FER.23.3.140

The study investigates the extent to which trust is reflected in managers’ behaviour in treating employees and how this is perceived by subordinates. Our analysis was conducted using the Pearson’s chi-square test and tests determining the likelihood ratio and linear relationship. Analysing the responses of a total of 556 employees from four financial organisations, we examined how managers can build trust with their employees and how, beyond the treatment by managers, the degree of change perceived within the organisation and the attitude of trust in employees affected employee engagement. The findings confirm that the experience of trust has a knock-on effect on the manager: it increases the manager’s internal security and self-confidence, which serves as an additional resource to reinforce the atmosphere of trust within the organisation.