|M.Sc Student||Eitam-Meilik Merav|
|Subject||Managers' Trust and Human Resource Management Practices|
During Downsizing - A longitudinal Analysis in
High Tech Firms
|Department||Department of Industrial Engineering and Management||Supervisor||Dr. Shay Tzafrir|
Trust is of interest to several disciplines of organizational research, which seek to explain its role in organizational outcomes. This study examines the managerial levels of trust. A number of researchers have theorized that positive managerial expectations may translate into such managerial behaviors as providing training to employees and enabling participation in decision-making. In the same way, this research proposes a specific model in which managers’ trust in their employees is related to Human Resource Management practices, and is shown to influence the organization’s perceived performance. Bearing in mind the importance of contextualization, this study focus on the high tech industry. The results of this study indicate that managers with high levels of trust in their employees were more likely to invest in training, pay incentive compensation and promote from within as compared to managers with low levels of trust. Also, organizations with high levels of managerial trust showed better-perceived performance. The second part of this study looked at the same organizations after a process of downsizing. Downsizing is a very influential organizational process, which has an enormous impact on an organization’s work force. The results indicate that the downsizing process had a major impact on the research model. Nevertheless, the level of managerial trust did not change, but the results show a reduction in investment in employees, and a fading away of the influence of HRM practices on the organizational performance. This research contributes to the growing literature on the role of trust in the organizational and employment relationships.