Control, Authority and Trust

Control within an Organisation

Control refers to the power to manage and direct the business functions. It typically manifests in decision-making processes.
The Board of Directors, Chief Executive Officer, and other key leadership positions in an organisation typically have the maximum control.
It’s important that control is also disseminated down the managerial hierarchy to ensure efficient operations and facilitate employee empowerment.

Authority in Organisations

Authority is the legitimate power vested to an individual by the organisation to exert influence and make decisions.
Legitimate authority is typically derived from an individual’s role or position within the organisational structure.
There are three types of authority: Bureaucratic (linked to job position), Charismatic (based on personality and charisma), and Traditional (derived from traditions or the ‘way things have always been done’).
An important aspect of authority is the responsibility that comes with it. Those in authority positions are accountable for their actions and the outcomes of their decisions.

Trust in Organisations

Trust is a crucial element in any organisation. It is the belief in others’ reliability, truthfulness, and effectiveness in fulfilling their responsibilities.
High levels of trust in an organisation can enhance job satisfaction, improve work performance, and foster organisational citizenship behaviour.
Trust can be built through consistency, clear communication, respect, and fairness.
The absence of trust can lead to a hostile work environment, increased conflict, and decreased productivity.

The Interplay of Control, Authority, and Trust

Trust can help reinforce the effective use of control and authority by legitimising actions and decisions in an organisation.
Regular use of control and authority without trust leads to dissatisfaction, rebellion, and a high turnover rate.
Trust helps to reduce the need for stringent control mechanisms and promotes an environment where employees feel empowered and motivated.
Organisational leaders must strike a balance between control, authority, and trust to foster a healthy organisational culture and boost company performance.