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LODJ
26,1
A correlation of servant
leadership, leader trust, and
organizational trust
6
Received December 2003
Revised August 2004
Accepted September 2004
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0143-7739.htm
Purpose Aims to explore the relationship between employee perceptions of servant leadership and
leader trust, as well as organizational trust.
Design/methodology.approach Uses Laubs Organizational Leadership Assessment along with
Nyhan and Marlowes Organizational Trust Inventory.
Findings Perceptions of servant leadership correlated positively with both leader trust and
organizational trust. The study also found that organizations perceived as servant-led exhibited
higher levels of both leader trust and organizational trust than organizations perceived as
non-servant-led.
Originality/value The findings lend support to Greenleafs view that servant leadership is an
antecedent of leader and organizational trust, and to aspects of other servant leadership models.
Keywords Leadership, Trust
Paper type Research paper
Servant leadership research has increased from 1999 to 2004 with the emergence of
servant leadership models from Farling et al. (1999), Russell and Stone (2002), Page and
Wong (2000), and Sendjaya and Sarros (2002), as well as the development of instruments
by Laub (1999), Page and Wong (2000), as well as Sendjaya and Sarros (2002). In each of
the servant leadership models presented by these researchers, trust is a common
variable, and thus the focus of this paper. Laubs (1999) instrument has received the most
use in the current servant leadership research stream as indicated by its use in studies by
Beazley (2002), Ledbetter (2003), Drury (2004), and Irving (2004). Since Laubs instrument
has gained popularity and appears to have validity for the main factor of servant
leadership as well as high reliability in the studies that have used it, this current paper
chose to use Laubs instrument to measure organizational servant leadership. Laubs
focus on the organization led this paper to consider the following aspects of trust in order
to see if either or both forms of trust were related to servant leadership, i.e.:
.
trust in the leader; and
.
trust in the organization.
This study presents literature on leaders trust, organizational trust, servant
leadership, methods/procedures, data, and analysis.
Leadership & Organization
Development Journal
Vol. 26 No. 1, 2005
pp. 6-22
q Emerald Group Publishing Limited
0143-7739
DOI 10.1108/01437730510575552
Leaders trust
According Nyhan and Marlowe (1997), as well as Nyhan (2000), trust is the level of
confidence that one individual has in anothers competence and his or her willingness
Servant
leadership and
trust
7
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26,1
Mayer et al.s model, when applied to the relationship between leaders and followers,
suggests that trust in the leader will be a function, in part, of the leaders perceived
ability, benevolence, and integrity. Put differently, trust in the leader is a product of the
leaders behavior. The foregoing discussion underlines that trust in a leader is
determined to a great extent by various aspects of the behavior of that leader.
Greenleaf (1977), argued that the best test of servant leadership is:
Do those served grow as persons? Do they, while being served, become healthier, wiser, freer,
more autonomous, more likely themselves to become servants? And, what is the effect on the
least privileged in society? Will they benefit or at least not be further deprived? (p. 27).
Servant
leadership and
trust
9
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10
Servant
leadership and
trust
11
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.
.
.
12
Trust given and received creates the climate for service at the deepest level (Tatum,
1995, p. 312).
The relationship between servant leadership and organizational trust is further
underscored by the fact that several of the functional and accompanying attributes
ascribed to servant leaders (Russell and Stone, 2002) are associated with the
development of interpersonal and organizational trust, including:
.
integrity (Bell et al., 2002; Davis, 1999; Korsgaard et al., 2002; Martin, 1999;
Mayer et al., 1995; Simons, 1999);
.
modeling (Podsakoff et al., 1996);
.
communication (Cufaude, 1999; Ellis and Shockley-Zalabak, 2001; Fisman and
Khanna, 1999; Holton, 2001; Kollock, 1994; Larsen and McInerney, 2002;
Nikandrou et al., 2000; Sparks, 2000; Staples, 2001);
.
competence (Daley and Vasu, 1998; McAllister, 1995; Mechanic and Meyer, 2000;
Ovaice, 2001); and
.
delegation (reflected in empowerment and participative decision-making)
(Korthuis-Smith, 2002; Nyhan, 2000; Spence-Laschinger et al., 2001; Weber
and Weber, 2001).
The foregoing review establishes that a relationship exists between servant leadership
and trust in the leader, as well as servant leadership and followers trust in the
organization, and thus proposes the following hypotheses:
H1. There is a positive correlation between employee perceptions of
organizational servant leadership and leader trust.
H1a. Servant-led organizations will have higher levels of leader trust that
non-servant led organizations.
H2. There is a positive correlation between employee perceptions of
organizational servant leadership and organizational trust.
H2a. Servant-led organizations will have higher levels of organizational trust that
non-servant led organizations.
Method and procedures
To test the hypotheses, this study used a filed-based survey approach to collecting data
on the level of servant leadership in the organization, the level of followers trust in the
leader, and the level of followers trust in the organization.
Sample
The study used a convenience sample of 69 employed persons, 51 of whom were
employed students attending a small evening Bible college and 15 who were employees
of a small Christian high school in the Republic of Trinidad and Tobago, West Indies.
There were 23 (33.3 percent) men and 41 (59.4 percent) women (sex was not indicated
on five or 7.2 percent of the questionnaires). Four age groups were represented:
18-25 (18, 26.1 percent), 26-35 (23, 33.3 percent), 36-50 (22, 31.9 percent) and over 50
(6, 8.7 percent). Years of employment ranged from less than one year to over 15 years.
The sample included persons in top leadership (2, 2.9 percent),
management/supervision (18, 26.1 percent), and members of the workforce (42, 60.9
percent). Several types of organizations were represented, including for-profit
businesses (20, 29 percent), religious organizations (3, 4.3 percent), government (11, 15.9
percent), medical services (2, 2.9 percent), and education (22, 31.8 percent).
Measures
A cross-sectional survey, consisting of the Organizational Leadership Assessment
(OLA) and the Organizational Trust Inventory (OTI), was used to collect data. In
addition, six demographic questions were added (regarding age, sex, marital status,
tenure, type of organization, and position in the organization) in order to develop a
demographic profile of the sample.
The OLA, a 66-item instrument, initially called the Servant Organization
Leadership Assessment (Laub, 1999), was used to distinguish servant leadership from
non-servant leadership. Laub demonstrated that the instrument is a statistically
reliable means for measuring servant leadership in an organizational context
(Cronbachs a of 0.98). The instrument consists of 33 leader assessment items, 27
organization assessment items, and six items that sought to assess job satisfaction. It
uses a five-point Likert scale anchored on the ends by strongly disagree and
strongly agree. It has been used successfully elsewhere (Beazley, 2002) to distinguish
between servant leadership and non-servant leadership.
The Organizational Trust Inventory (OTI) (Nyhan and Marlowe, 1997) was used to
measure the level of both leader trust and organizational trust. The OTI is a reliable
and valid 12-item scale designed to measure an individuals level of trust in his or her
supervisor and in his or her organization as a whole. Items 1-8 measured trust in the
supervisor and items 9-12 measured trust in the overall organization. The instrument
used a seven-point Likert scale anchored on the ends by nearly zero and near 100
percent and demonstrated very high reliability (coefficient alphas of between 0.95 and
0.96) (Nyhan and Marlowe, 1997).
Procedure
Questionnaires were distributed to both groups of employees with a set date for their
return. The survey was re-administered, during class time set aside for that purpose, to
those students who did not return the original questionnaire. The high school
employees were asked to complete the questionnaire as a part of an end of year leader
evaluation exercise. Of the 64 questionnaires sent to the employed students, 51 were
returned and usable, while 15 of the 19 questionnaires returned by the high school
employees were usable. These 69 questionnaires provided the data for the analysis and
discussion.
Servant-led and non-servant-led organizations were determined by the mean scores
on the 60 servant leadership items of the OLA. To investigate the relationship between
perception of servant leadership and leader trust and organizational trust (H1 and H2),
separate Pearsons product moment coefficients of correlation were calculated between
Servant
leadership and
trust
13
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26,1
14
employee perceptions of servant leadership and leader trust and between employee
perceptions of servant leadership and organizational trust, respectively. Although not
part of the hypotheses, linear regression was used to determine the amount of variance
of leader trust and organizational trust explained by employee perceptions of servant
leadership. Analysis of variance by demographic categories was used to determine
whether demographic variables had any impact on the relationship between
perceptions of servant leadership and organizational trust.
Comparison of means through independent samples t-tests were used to investigate
whether servant-led organizations had a higher level of leader trust than
non-servant-led organizations (H1a) and whether servant-led organizations had a
higher level of organizational trust than non-servant-led organizations (H2a). Analysis
of variance by demographic categories was used to determine whether demographic
variables had any impact on the relationship. The results of the investigation follow.
Results
Perception of servant leadership was calculated from the total score of the 60 servant
leadership items of the OLA. The six items measuring job satisfaction were eliminated
to allow a more focused servant leadership score. Eleven of the organizations were
identified as servant-led organizations (mean of 4.00 or above), while the remaining 58
were identified as non-servant led organizations (mean of less than 4.00).
Both H1 and H2 were strongly supported. A moderate positive correlation
(r 0:64, p 0:000) was found between perception of organizational servant
leadership and leader trust, indicating that a substantial relationship exists between
the variables. H1 was thus supported. There was also a high correlation between
perception of organizational servant leadership and organizational trust (r 0:72,
p 0:000). Analysis of variance by demographic categories revealed that the
relationship between perception of servant leadership and both leader trust and
organizational trust remained the same for most demographic categories. The only
exceptions were age, F1; 56 4:07, p 0:005, and sex, F5; 64 9:42, p 0:014, in
relation to leader trust.
The regression models of the relationship between perception of servant leadership
and leader trust, F1; 67 47:22, p 0:000, and perception of servant leadership and
organizational trust, F1; 67 70:27, p 0:000, were both significant. The models
indicated that perception of servant leadership accounted for 41 percent of the variance
in leader trust and for 51 percent of the variance in organizational trust.
H1a and H2a were also supported. The independent-samples t-test revealed a
statistically significant difference, t67 3:47, p 0:001, in the means for leader trust
of organizations perceived as servant-led (M 6:44, SD 0:34) and those
organizations perceived as non-servant-led (M 5:14, SD 1:23), providing support
for H1a. There was a positive mean difference in leader trust of 0.130 between
organizations identified as servant-led and those identified as non-servant-led,
providing further support for H1a.
Similarly, the independent-samples t-test revealed a statistically significant
difference, t21:3 6:20, p 0:000, in the means for organizational trust of
organizations perceived as servant-led (M 5:98, SD 0:72) and those perceived as
non-servant-led (M 4:34, SD 1:16), providing support for H2a. There was a
positive mean difference in organizational trust of 0.164 between organizations
Servant
leadership and
trust
15
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16
and organizational trust are the products of servant leadership. Farling et al. (1999)
proposed that leader concern contributes to follower concern and to the level of trust
that followers will place in leaders, while Russell and Stones model of servant
leadership presented trust as one of the functional attributes of servant leadership.
Russell (2001) also argued that the values of servant leaders yield observable attributes
and play a primary role in establishing the interpersonal and organizational trust that
holds servant-led organizations together.
Interpretation of the findings of this study should bear its limitations in mind. One
limitation is the narrowness of the sample comprised of members of the Pentecostal
religion located in a particular country. It is possible that Pentecostals as a group have
a greater propensity to trust than other groups. The same may be said of the
country-specific sample, since nationality and cultural differences might moderate
trust relationships (Banai and Reisel, 1999; Dahlstrom and Nygaard, 1995; Huff and
Kelley, in press; Park et al., 2002). The study should be replicated with a more diverse
sample. Furthermore, this study did not take into account other moderating variables
such as organizational communication and the organizational context. The study could
also be improved by the use of a larger sample.
The foregoing discussion suggests several opportunities for future research. The
limitations identified earlier suggest a need to replicate this study with a larger, more
religiously, nationally, and culturally diverse sample. There is also a need to
investigate the effect of trust moderators such as leader and organizational
communication on the relationship between servant leadership and trust.
Furthermore, research should also explore the relationship between particular
attributes of servant leadership and leader and organizational trust.
The findings of this study have practical implications for managers and
organizations. Servant leadership has the potential to improve organizational
performance, including:
.
organizational satisfaction (Laub, 1999);
.
safety practices (Sarkus, 1996);
.
productivity (Osborne, 1995); and
.
financial performance (Melrose, 1998; Ruschman, 2002).
This study suggests that this relationship is mediated through its impact on leader and
organizational trust. Trust theory has clearly established the important role of trust in
organizational effectiveness (Nyhan, 2000; Shockley-Zalabak et al., 2000), including:
.
job satisfaction;
.
organizational commitment;
.
turnover intentions;
.
belief in information provided by the leader; and
.
commitment to decisions (Costigan et al., 1998; Dirks and Ferrin, 2002; Iverson
et al., 1996; Spence-Laschinger et al., 2001).
Managers can improve organizational performance through the practice of servant
leadership behaviors that increase trust in the manager and in the organization.
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