The relationship between trust and the success of value based management initiatives
The present study explored the relationship between trust and the success of value-based management (VBM) initiatives. According to Dirks and Ferrin (2001:450), academics from diverse disciplines, backgrounds and time periods, agree that trust is advantageous to the operations of organisations. Trust is thus beneficial to any organisation. The ultimate goal of VBM is to create value (Koller, 1994:87) which in turn creates wealth for stakeholders. The present study explored the relationship between trust and the successful implementation of VBM initiatives to provide support that value creation can be maximised if both constructs exist together within an organisation. Kaap Agri, an agricultural services group, which supplies products and services to the agricultural sector and to the general public (Kaap Agri, 2011), was selected for the present research study. Employees of Kaap Agri completed questionnaires that measured both trust and VBM. The respondents were grouped into two separate groups which became the basis used for the study. The results of the two separate groups within Kaap Agri were compared to provide insight into the different levels of trust and the different levels of successful implementation of VBM. To explore the relationship, both constructs was analysed and measured separately. The dissertation starts with a discussion on the accepted definitions for each key construct, followed by a literature review. The empirical research is discussed in Chapter three, which includes a discussion of the reliability and validity of the measuring instrument and the data that was obtained. Quantitative research was used during the study. The results of measuring both constructs are discussed separately and statistical analyses provide insights into the relationship between trust and VBM. The dissertation concludes with recommendations for future research and management considerations with regard to the research results. The results indicate that the group with higher levels of average trust also had higher scores for VBM. Although no causality is implied, the relationship between the constructs suggests that further research with a larger sample could prove causality. Furthermore, the results showed that all three inputs of trust have a significant strong positive relationship with the total average VBM. A significant strong positive relationship between total average VBM and total average trust was also found. The primary research question of the research study, which is to determine if there is a relationship between the level of trust within an organisation and the successful implementation of VBM initiatives, was answered. The present study therefore provides a platform for future research to further explore the relationship between trust and VBM and possible provide evidence of causality.