Emotional Intelligence, Organizational Support, and Trust: HR Implications of Formalization in the Workplace

In today’s fast-paced and rapidly evolving business world, organizations are constantly looking to attract, hire, and retain the top talent which is the most valuable asset for any firm i.e. human capital. For long-term survival for any organization building trust between managers and employees has become vital. While considerable amount of existing literature has focused on the external motivators like promotions and salary, there is a mounting recognition of the importance of the internal factors like emotional intelligence and trust in forming a positive workplace environment and reducing monitoring costs. Existing studies also explored that how formalization, organizational support, and emotional intelligence influence trust, but most studies have taken an individual-focused and narrow perspective rather than a extensive organizational view. Key gap has been addressed about the need to assess how the emotional intelligence of both employees and managers, along with the organizational structure and support, which collectively impact trust within an organization. This study sets itself apart by focusing on unnoticed internal factors that shapes employees’ experience. Higher levels of trust can significantly reduce the need for continuous monitoring, that boost overall productivity. The right balance between oversight and trust is necessary, and without its internal communication may break down which can cause more harm than good. To explore this further, the study surveyed 216 employees from multiple software houses.