Reforming Human Resource Management Systems: Exploring the Importance of Organizational Trust

Abstract

The literature suggests, but provides no empirical evidence, that high trust levels within organizations may aid human resource management reform efforts. This article seeks to fill this empirical gap by assessing the effect of organizational trust across a variety of attitudinal variables. The analysis indicates that increased levels of organizational trust strengthen the pay-for-performance link; appraisal, and the supervisory role in that process; and positively influence organization-specific attitudes toward merit pay. As such, the findings suggest that a supportive and trusting organizational climate may be a necessary precursor to "successful" reform of human resource management systems.