Transformational leadership and shared values: the building blocks of trust

Interpersonal trust is central to sustaining team effectiveness. Whilst leaders play the primary role in establishing and developing trust, little research has examined the specific leadership practices which engender trust toward team leaders. This study investigated the relationship between a set of leadership practices (transformational, transactional, and consultative) and members' trust in their leader, in research and development (R&D) teams. Usable questionnaires were completed by 83 team members drawn from 33 R&D project teams. Three factors together predicted 67 per cent of the variance in team members' trust towards leaders, namely: consulting team members when making decisions, communicating a collective vision, and sharing common values with the leader. Trust in the leader was also strongly associated with the leader's effectiveness. The implications of these findings for leadership development, team building and future research are discussed.