Issues in Business Management and Economics
Vol.1 (2), pp. 022-036, June 2013
Article ID BM018, 015 pages
Copyright © 2014 Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 3.0 International License
Original Research Paper
Trust-building, agency, and the entrepreneur-HR Manager:A Nigerian case study
Accepted 9 June,2013
Faculty of Business Ethics, Sustainability and Anthropology. Lagos Business School, Km 22 Lekki-Epe Expressway, Ajah –Lagos,Nigeria.
Corresponding author Email: kogunyemi(at)lbs.edu.ng
Small businesses often have the Human Resource (HR) function managed by the CEO. Leadership tends to be informal and processes and procedures are still fluid. Trust – the willingness to take risks together and be vulnerable to others – is needed since trust drives performance. A small size could enhance communication and mutual understanding in an organization. However, any breach of trust greatly impacts the business and workplace morale. The paper’s objective is to explore, through case study methodology, how trust-building could resolve the problems of a CEO cum HR Manager. The findings suggest that trust-building overcomes agency problems unsolved by incentives and monitoring techniques; that entrepreneurs who double as HR Managers should build and rebuild trust constantly; and that cultural differences can affect the principal-agent relationships that the HR function oversees.
Key words: Trust, entrepreneur, human resources manager, agency, trust-building, human resources, small business