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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011
VOL 3, NO 2
Impact of Culture on Employees' Trust in Management: Evidence from
Pakistani Banking Sector
Tariq Hussain Khan,
MBA (HRM),MS Scholar, Riphah International University, Islamabad, Pakistan
Muhammad Maalik
MBA ,MS Scholar, Riphah International University, Islamabad Pakistan
Abstract
The main purpose of this paper was to examine and analyze the impact of cultural dimension of
Power Distance, given by Hofstede, on factors which manipulate the employees’ insight
regarding the trust-worthiness of management. This research is estimated to validate the
hypotheses related to probable moderating influence of High Power Distance on the relationship
between employees’ participation, autonomy, feedback and goal clarity (independent variables)
and trust in management (dependent variable). Culture plays an important role in employees’
trust in the management and the most important cultural dimension of Power Distance, is
analyzed in this paper. Pakistani culture has been defined by Hofstede as High Power Distance
(HPD). A sample of 120 employees of private sector banks located in Rawalpindi and Islamabad
was studied. The results indicated that HPD had negative effect on relationships of independent
and dependent variables. The employees’ participation, goal clarity and autonomy are
significantly influenced by HPD in Pakistani culture, whereas employees’ feedback is not
influenced by HPD.
Key Words: Power Distance, Trust in Management, Employees’ Participation, Autonomy, Goal
Clarity, Feedback.
INTRODUCTION
The function of Trust in Organizations’ Performance has gained considerable importance
in the recent past as organizations shift away from monitored style of control and supervision, to
greater employee empowerment, autonomy, and introduction of changed organizational
structures such as “self-directed and self-managed teams” (Connell & Mannion, 2006). HR
managers can have a positive impact on employees by inculcating trust and confidence in the
organization and the management (Tzafrir et al, 2003). Organizational Environments where
employee's participations are always welcomed and positively considered, lead to a greater trust
in management. Building trust between employees and management is considered essential for
success of organizations in all countries and cultures. However, the degree of trust varies in
cultures. As identified by Seal (1998) and Coleman & Mannion (2006), culture affects the trust
of employees in management because trust is enhanced by interactions of individuals and the
trust most importantly depends upon the organization and the social structure and culture of the
country. Hofstede had studied culture over many years and gave five important dimensions
which could be found common in all regions, cultures and countries ( Hofstede, 1984). One of
the most important dimensions of culture is power distance which refers to the extent to which a
society tolerates power differences as well as accepts status privileges (Carl, Gupta, & Javidan,
2004). Employees’ trust in the supervisor/ manager may differ depending on the kind of cultural
support given to the power distance. Pakistan is considered to be high power distance (HPD)
country as indicated by Hofestede cultural dimensions (Hofstede Cultural Dimensions of
Pakistan available at http://www.geert-hofstede.com/hofstede_pakistan.shtml).
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