Trust in Leader as a Psychological Factor on Employee and Organizational Outcome

While leadership studies have tackled the concept in various ways, it can be said that often basic psychological elements are overlooked. In this sense, the notion of trust is focused in this chapter to highlight, elaborate, and provide a thorough understanding on the vitality of trust between leader and his/her followers. Whether a business achieves success or not is highly dependent on leadership of the firm. Mutual trust among staff and their managers is a crucial matter that can hinder or enhance the process of success. With the existence of trust, workplace and environment of company become soothing for individuals, leading to positive psychological outcomes, and improved wellbeing. Therefore, we argue that building, and gaining trust should be the focus of leaders regardless of their style for it will improve performance, and thus, organizational outcome while simultaneously benefiting the staff via psychological elements. This becomes more vivid in modern business world as wellbeing of individuals and their mental health are more emphasized. Both leaders and scholars can benefit from this manuscript.