Changing the paradigm - Trust and its role in public sector organizations

This article explores the feasibility of a trust-based organizational paradigm:as anew model for public sector management. A conceptual model is developed from a literature review of more than 100 journal articles and books. The author proposes that participation in decision making, feedback from and to employees, and empowerment of employees lead to increased, interpersonal trust (between supervisor and employee) in a public organization. The article further hypothesizes that these trust-building practices between supervisors and workers can lead to increased productivity and strengthened organizational commitment. The conceptual model is empirically tested using as a case study both structural equation modeling and data from a municipal government. The analysis demonstrates that the trust-based model is a viable paradigm for increasing;interpersonal trust, organizational commitment, and productivity in the public sector.