Trust as an Element of Strategic Management in Public Organizations

Abstract

Modern organizations operate according to the principle of trust, which is important both within the organization and in relations with the environment. The operation of public entities is strictly determined by the procedures, but those imposed by authorities are not able to guarantee trust in institutions operating in the public sphere. Trust is the determinant which enables entities to deal with complexity and variability of contemporary social and economic realities. It indicates that trust is a strategy to cope with uncertainty and inability to control the future of the public. The aim of the article is to point out the importance of confidence in strategic management of public organizations. Trust can be regarded as a tool introducing strategic management or as a result of the introduced management strategy. This article will attempt to assess this issue by analysis of the literature and theoretical discussion. Theoretical analysis has been complemented by an overview of public institutions' strategies that build trust in different areas.