Trust remains the key variable

Victor Davis Hanson, a historian at the Hoover Institution, Stanford University, writes: "After the junk bond meltdown, the S&L [savings-and-loan] debacle, and now the financial panic, in just a few years the financial community destroyed the ancient wisdom: deal in personal trust; your word is your bond; avoid extremes; treat the money you invest for others as something sacred; don't take any more perks than you would wish others to take; don't borrow what you couldn't suddenly pay back; imagine the worse case financial scenario and expect it may well happen; the wealthier you become the more humble you should act."

Given current market conditions it is important to reflect on how to retain and motivate your critical and responsible employees, while ensuring human capital expenses are within budgets. In spite of the instinctive reaction of some businesses, it is only fair to believe that human capital is not superfluous in a recession. An exponential drop in market conditions affecting businesses and potential careers calls for organisations to take difficult decisions which more often than not are poorly communicated.

As a result, human resources professionals and HR departments are likely to find themselves being asked to manage radical and dramatic organisational changes which involve cost-cutting, up-skilling or re-skilling managers and identifying redundant full-time employees, and at the same time initiate strategic recruitment of new consultants or professionals, to help the organisation survive the economic downturn and achieve its survival business plans. It is imperative at all levels and specifically for the HR professionals to ensure that the organisation is doing the right thing while increasing emphasis on the return on investment, productivity and efficiency.

During these market conditions it makes sense to check on the resiliency of your organisation. Simple questions such as:

n How does the organisation respond to changing environment?

n Which personality types indicate survival qualities demonstrating better adaptability than others?

n How to coach managers to acquire adaptive characters to outperform?

n Is the management effective in building trust within the organisation?

Honest and hard-working leaders earn trust and effectively motivate

A successful organisation exhibits trust existing among its members. Enterprise productivity is by and large related to team spirit and trustworthy environment among its members. Lack of trust is generally associated with high stress levels, and low satisfaction and organisation loyalty.

Developing trust is not an overnight process but evolves as organisations change and need to adapt to the constant challenges of the market. These changes affect the relationship with employees, creating fears, instability, and distrust among individuals. However, trust remains the key and often, unknown variable affecting personal and professional relationships.

The leadership team at all levels has to achieve objectives by enhancing employee efficiencies and boost productivity by earning employee trust, improving employee visibility and building loyalties with them. Distrust in the team can influence success or failure of the organisation.

- Sanjiv Anand is the Managing Director and Kedar Apte is Engagement Manager at Cedar Management Consulting International.