How does organizational culture affect organizational and individual trust? - Action Group in Russia

University essay from Högskolan i Gävle/Företagsekonomi; Högskolan i Gävle/Företagsekonomi

Abstract: Aim: This study aims to explore how organizational culture affect organizational- and individual trust, and how the relationship is between the three constructs. Method: Qualitative method is used for this case study. Semi-structured interviews are conducted with ten representatives of the targeted company. Respondents hold different positions in the organization, including top- and middle managers, and line employees. The data was analyzed thematically according to the three main points of research questions such as organizational culture, organizational trust and individual trust. Results and Conclusions: Organizational culture and values are set by owners and top management of the company but are influenced by national culture. By using national culture and individual characteristics, and in lining them with organizational culture, organizations can enhance both profit and image. Employee motivation and commitment are enhanced as a result of a high level of trust. With the help of informal control, organizational trust also affects trust at an individual level. However, it is important to employ people whose values match the organizations. Suggestions for future research: This study is limited to one company in Russia. For future research, we recommend a longitudinal study of several companies to compare them overall, to find the impact of trust on each organizational culture and how it affects employees and business in the long term conditions. Another research approach could be to compare organizational cultures of the companies from different countries to investigate the advantages and differences of factors of success. Contribution of the thesis: The main contribution is that certain organizational culture affects trust in the organization. Development of trust as a part of organizational internal culture provides certain benefits such as efficiency, innovation, results, motivation and commitment. Trust as a part of organizational culture provides a foundation that enables the organization to develop and adapt to the market. It is important to recruit people with similar values as the company to be able to develop the desired organizational culture. Keywords: Organizational culture, national culture, organizational trust, individual trust, control, motivation, work efficiency, satisfaction, recruitment.

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