| Abstract [eng] |
The contemporary financial sector is characterized by high dynamism, strict regulation, and significant responsibility, making leadership a critical factor in organizational success. A trust-based work environment enhances employee motivation, engagement, and loyalty, particularly in the financial sector, where responsibility for clients’ funds, confidentiality, and stringent regulatory requirements make trust between managers and employees not only a moral value but also a fundamental condition for effective operations. Organizational trust is defined as employees’ belief in the integrity, competence, and consistency of both the leader and the organization. In this context, the choice of leadership style becomes a central factor determining whether trust within the organization is developed, maintained, or eroded. Values-based transformational leadership fosters mutual trust and psychological safety, whereas an authoritarian leadership style focused primarily on control undermines employee trust. Scientific research consistently treats organizational trust as an unequivocally positive phenomenon, positively influencing organizational performance and being associated with higher employee engagement, loyalty, and identification with organizational values. When appropriate leadership is ensured within a financial institution, it has a positive impact on employee behavior, as trust in the organization is strengthened, operational efficiency increases, and stable, high-quality organizational functioning is sustained. Based on this, it can be argued that the research topic is highly relevant; however, within the context of the financial sector, it remains insufficiently explored. Research object – the impact of a manager’s leadership styles on employees’ organizational trust in the financial sector. Project aim – to reveal the impact of a manager’s leadership styles on employees’ organizational trust in the financial sector. Main results of the project. The study revealed that respondents most actively observe the manifestation of the transformational leadership style in the activities of financial sector managers. The research identified that the prevailing overall level of employees’ organizational trust among respondents is slightly above average; the horizontal trust dimension stood out as the highest-rated, while impersonal trust was rated the lowest. When examining the impact of leadership style on employees’ organizational trust, it was determined that transformational leadership has a moderate positive effect on overall organizational trust, transactional leadership has a weak positive effect, and passive leadership has a negative effect on employees’ trust in the organization. |
