Management by Trust: A Conceptual Model

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Abstract
The management by trust (MBT) model is developed to ascertain the most effective system of management. It involves a trust-based managerial approach to design organizational structures and processes, assimilate conflicts, and integrate goals as an independent variable, and effective performance as a dependent variable. The theoretical soundness of the model is established through a survey of research literature, while its validity is determined through action and basic objective researches conducted by the author in India. MBT action research interventions in two plants led to significant improvement in several performance measures and generated a trusting climate. Field data collected from two industrial organiza tions in a basic objective research reveal that effective and ineffective organizations differ in terms of their adherence to trust-based and distrust-based managerial approaches, respectively. Tentatively, the MBT system seems to be an effective managerial device for accomplishing improved performance in industrial organizations.