FAIRLY AND EFFECTIVELY MANAGING A GLOBAL WORKFORCE

 

The Power of Transparency in Leadership: Building Trust through Open Communication

The foundation of both management and leadership is communication. It is how we communicate expectations, offer criticism, and make sure the activities of the groups we oversee are in line with more important institutional or organizational aims. High-level communication is facilitated by goal-setting and annual reports, but it also forms the basis of regular teamwork and dialogue. In times of crisis, especially one as long-lasting as the COVID-19 epidemic, communication disruptions will be more noticeable. We typically react more strongly when we are under stress than when things are quiet. It takes calm, consistent, and open communication to reassure workers that the boat will weather the storm.Authenticity and transparency are essential for good communication.(Erickson, Sue 2021)

How decisions are made in an organization is always of great importance. Walumbwa and et al. (2011) link authentic leadership to transparency in information sharing and input into decision making. They emphasize that in the modern working world of today, “organizations in the knowledge economy require leaders who promote positive relationships through disclosures, including openness in terms of information sha ng, accountability, and honesty, and leaders who objectively analyze relevant information and solicit views from others–including those they lead–before making decisions” (p. 111). 

Transparency has been linked in the business and communication literature with trust and employee engagement. Jiang and Luo (2018) examined the link between employee trust and authentic leadership and transparent communication within the organization. Walumbwa et al. (2011) further articulate the connection between employee engagement and transparency and authentic leadership through a connection of the employee’s personal values and the vision and mission of the organization (p. 113). 

 

figure 01 Leadership Transparency

What Is Meant by Being Transparent?

 “Employees don’t quit their jobs; they quit their bosses”!(Kiehne, 2017). A cheerful workplace draws in great people and turn, advances a culture of usefulness and responsibility – a distressing climate will most certainly destroy company culture.  As an employee, it is important to feel the sense of confidence and assurance provided by your leader. Organizations and their employees have begun to recognize the importance of transparent communication and leadership in enterprises. This article presents how authentic leadership simultaneously affects the employee's (Nereida Hadziahmetovic, Nejla Salihovic2022)

Transparent organizational communication increases employee engagement through building confidence and trust, claim Jiang & Men (2017). The intentional sharing of information within a corporation and the active involvement of its employees are referred to as transparent organizational communication.

Maintaining corporations responsible for their business operations and policies and engaging in the gathering and sharing of information in a genuine, significant, and all-encompassing manner (Jiang & Men, 2017). Three elements are necessary for transparent communication, according to Rawlins (2008): substantiveity, accountability, and participation.

As a leader, you should be open and honest with your team members, share both positive and negative information, and keep them informed.

Transparency may be uncomfortable, as any leader who has mastered it will attest. Even while it makes you feel a little exposed, it calls for a desire to be open and honest with your staff.
It takes both to be a transparent leader. It functions under the premise that the objective you and your team are pursuing is the same. Your team has to know exactly why and how to do things in order to achieve their goals. You must rely on your group of bright minds to contribute in order for you to reach your goals.

 

Why it is important?

Transparency in leadership sets an example that the rest of the organization must follow. As it promotes an environment of open communication and responsible behavior for leaders as well as employees, the value of transparency in leadership becomes increasingly clear.

•  Building trust

Strong relationships are based on a basis of trust. Transparent communication on important financial outcomes, strategic updates, and even organizational difficulties helps leaders establish their credibility. Consequently, this fosters trust among stakeholders on the decision-making abilities of the leadership.

• Encouraging commitment

Leaders who are transparent are held responsible for their choices and actions. Open communication of financial results—both good and bad—incentives leaders to make wise decisions that will eventually help the company. Stakeholders can also actively participate in discussions and offer insightful commentary.

•  Establishing an Educational Culture

When leaders communicate both their triumphs and failures, everyone has the chance to grow and change. Organizations that adopt this adaptable culture can prosper in the quickly evolving commercial environment of today.

• Making Decisions Strategically

Stakeholders can comprehend the reasoning behind strategic decisions more clearly when they have access to pertinent data and updates. This clarity helps to avoid uncertainty and makes it easier to align with the objectives of the company

 

 Key Benefits of Transparency in Business

                                                                     Source : You tube

• Increased Support from Employees

Asking for comments demonstrates your appreciation for your staff. This fosters stronger employee advocacy by laying the groundwork for trust and loyalty, which raises engagement and strengthens your employer brand.

• Enhanced Productivity

You may make sure your staff members have everything they need to complete the job at hand by practicing transparent leadership. Since they get all the information they need up front, they can get right to the races rather than wasting time fiddling with their thumbs, which increases efficiency. Furthermore, regular, transparent, and unambiguous communication guarantees that staff members are less prone to form incorrect assumptions and proceed accordingly.

• Enhanced Worker Effectiveness

When you take into account how much better employee performance can result from transparency in leadership, its significance becomes abundantly evident. Knowing something is empowering. Also, well-motivated staff members work effectively.

 

How to Practice Transparent Leadership: 3 Best Practices

 

1.Show Employee Empathy

Workers desire a personal connection with their managers and supervisors. They want to make sure that those in charge of them have comparable life and professional experiences. While some leaders believe that a relationship of this nature can undermine their authority, in practice, compassionate leaders promote collaborative and productive societies.
Spend some time getting to know your staff members and having one-on-one meetings. Make personal ties with your staff throughout this time, and emphasize your commitment to transparency.

 

2.Open Communication

 Encourage open communication among all levels of the organization by creating an environment that supports it. This involves establishing pathways through which staff members can freely express their thoughts, worries, and opinions without fear of retaliation. To maintain open lines of communication, schedule frequent town halls, team meetings, or one-on-one meetings. Furthermore, actively solicit employee input and be open and honest about the company's objectives, tactics, and difficulties.

 

3. Be Genuine and Vulnerable

 Leaders must exhibit both genuineness and vulnerability in order to foster transparency. When you acknowledge that you are not an expert or that you have made a mistake, don't be scared to display your humanity. Employees will feel more comfortable owning up to their mistakes and growing from them as a result of this increased trust and culture. In addition to eschewing deception and manipulation, authenticity also entails communicating with sincerity.

conclusion

In summary, open and honest leadership is essential to efficient organizational management because it promotes responsibility, trust, and teamwork. Open communication, setting a good example, giving context, and valuing honesty are all ways that leaders may foster an environment where staff members feel appreciated and empowered. Transparent leaders listen to criticism, hold meaningful conversations, exchange information freely, and show vulnerability when needed. In today's dynamic and linked business environment, businesses can strengthen their relationships, improve their decision-making processes, and ultimately achieve higher success by implementing transparent leadership practices.

 

 References

Erickson, Sue. "Communication in a crisis and the importance of authenticity and transparency." Journal of Library Administration 61.4 (2021): 476-483.

 Hadziahmetovic, Nejla  Salihovic 2022 The Role of Transparent Communication and Leadership in Employee Engagement.

Yuwono, Wisnu, Daniel Danito, and Ferdinand Nainggolan. "The effect of authentic leadership and transparent organizational communication on employee welfare with mediation variables of employee trust in medium companies." Revista de Métodos Cuantitativos para la Economía y la Empresa 35 (2023): 250-267.

Sososutiksno, Christina. "the Effect of Transparency, Accountability and Leadership on the Effectiveness of Village Fund Management." GEMILANG: Jurnal Manajemen dan Akuntansi 3.2 (2023): 179-189.

Alarifi, Areej, et al. "Illuminating the way: the role of organizational transparency in preparing employees for change under transformational leadership." Current Psychology (2024): 1-18.

Cocozza, Antonio. Understanding Organizational Culture: Innovation, Transparency, Leadership, Community. Springer Nature, 2024.