Influence of personality and psychological capital on managers’ trust in their direct–reports

Abstract

Purpose: This article investigates the influence of a manager’s psychological capital (Psycap) and Personality Traits, based on the Five Factor Model (FFM), on their Propensity to Trust their direct-reports. While most literature focuses on subordinates’ trust in managers, this study explores the reverse. It stems from the need to enhance organisational performance by improving trust between managers and subordinates.

Design/methodology/approach: The study uses a quantitative approach with established scales: Nyhan and Marlowe’s Trust Measurement Scale, the TIPI Scale for personality, and the Psycap Questionnaire-12. Data were primarily collected from managers in South African manufacturing firms.

Findings/results: Psycap was the strongest driver of trust, showing a significant positive link to managers’ trust in direct-reports. Agreeableness and Emotional Stability show significant positive relationships with trust, though at a lower confidence level, while Conscientiousness, Extraversion, and Openness do not show significant links.

Practical implications: The findings highlight the need for targeted training to improve managers’ interpersonal, emotional regulation, and trust-building skills. Performance evaluations should consider trust-building behaviours and promotion policies could be refined based on the research findings, to ensure that candidates who are suitable for leading successful teams are placed in managerial positions.

Originality/value: The study contributes nuanced insights by challenging traditional perspectives on Personality Traits and Trust, emphasising the vital role of Psycap in trust propensity. The study shows that investing in employee Psycap development is crucial. Employees with higher Psycap levels tend to trust their direct-reports more, which helps build a positive organisational culture that prioritises psychological well-being.