The relationship between interpersonal trust, employee satisfaction, and employee loyalty

摘要

It is discussed that for TQM practicing organizations, employee satisfaction is a key factor to their success. That is, while employee satisfaction is an important driver of quality, customer satisfaction and productivity, it is observed that interpersonal trust (i.e., trust in management and trust in peers) strongly influences employee satisfaction which, in turn, influences for improved employee loyalty. Therefore, it is attempted to study empirically the hypotheses proposed relevant to the influence of interpersonal trust on employee satisfaction and the influence of employee satisfaction on employee loyalty. In this regard, a survey is conducted among the employees of an Austrian company and the hypotheses are tested using the structural equation modeling with partial least squares approach.