Influence of Trust and Participation in Decision Making on Employee Attitudes in Indian Public Sector Undertakings

Abstract

Trust is an important component that needs to be present among individuals. Survey data from 712 managerial employees from public sector undertakings were used to examine the effects of trust and participation in decision making on attitudinal outcomes. Results indicate that trust is significantly related to job satisfaction, group commitment, and affective commitment. Participation in decision making is a predictor of job satisfaction and affective commitment, but it did not predict group commitment. Job satisfaction significantly influences group commitment and affective commitment. Group commitment predicts affective commitment and acts as a mediator between job satisfaction and affective commitment. These findings suggest that managers need to facilitate trust and active participation among employees by taking their opinions on different work aspects. Organizations that allow employees’ participation in decision making and are perceived as trustworthy have employees who exhibit more attachment and identification with their organization.