Social and Behavioral Sciences Commons^™

The Trusted General Manager And Unit Performance: Empirical Evidence Of A Competitive Advantage, James H. Davis, F. David Schoorman, Roger C. Mayer, Hwee Hoon Tan

Research Collection Lee Kong Chian School Of Business

Employee trust for the general manager is proposed as an internal organizational characteristic that provides a competitive advantage for the firm. This paper empirically examines the relationship between trust for a business unit's general manager and organizational performance. Trust was found to be significantly related to sales, profits and employee turnover in the restaurant industry. Managers who were either more or less trusted differed significantly in perceptions of their ability, benevolence and integrity.