Pursuit of organisational trust: Role of employee engagement, psychological well-being and transformational leadership

Both practitioners and scholars have shown a great deal of interest to study the trust factors that compels for establishing cordial interpersonal relations across society. However, in the context of organisation, the study on trust stands challenged for manifold reasons: lack of clarity between trust and productivity, lack of specificity on interventional mechanisms and the validity between trust and its possible antecedents. Therefore, the objective of this research is twofold: firstly, to identify the direct effect of employee engagement on organisational trust and secondly, to investigate the indirect effect of psychological well-being and transformational leadership on the relationship between employee engagement and organisational trust. Bootstrapping technique (Hayes, 2012) in addition to the mediation process through PRODCLIN2 was carried out during SEM analysis. The findings indicate that executives have a higher level of trust when they are able to perceive meaningful employee engagement, transformational leadership and psychological well-being from their respective employer.