Impact of leadership on interpersonal trust at work in enterprises in Bosnia and Herzegovina

Abstract

The paper presents theoretical basics and results of concrete research of the influence of leadership dimensions on dimensions of interpersonal trust at work in enterprises in Bosnia and Herzegovina. In addition, the moderating effects of the ownership structure and the national origin of enterprises on the observed relationships were examined. The data were obtained by surveying 334 medium level managers from 103 enterprises in Bosnia and Herzegovina. The aim of this research was to determine the extent to which leadership influences interpersonal trust at work as one of the indicators of the overall effectiveness of business process management, which directly influences the scope and intensity of organizational and business performance of the enterprise. Also, the task of this research was to provide certain recommendations and guidelines for leaders and managers in order to plot future plans according to these data. The basic conclusions of this research are that leaders need to lower their performance expectations, reduce punishment, improve their relationship with employees, increase rewards in line with opportunities, and refine their strategic knowledge, thinking, and action.