six staff including one in a wheelchair around a whiteboard as a man explains the idea

Trust issues: Don't dismiss new ideas, managers could damage their relationship with staff if they do

Employees trust managers less when they fail to recognise highly creative ideas, according to new research from Warwick Business School, UCL School of Management and Soligence Advisors, which found that workers view leaders who overlook them as less competent, reducing confidence in their judgement and decision-making.

Among the first studies to examine the interpersonal consequences of idea evaluation, the research shows that the way managers respond to new ideas affects more than which innovations move forward. It also shapes how much employees trust those making decisions.

Perhaps more surprisingly, employees' own views of how creative an idea was proved a stronger predictor of trust than independent assessments, suggesting people respond not only to whether an idea is objectively creative, but also to how creative they personally believe it to be.

"Employees are constantly watching how ideas are handled,” said Velvetina Lim, the study’s lead author and Assistant Professor of Entrepreneurship and Innovation at Warwick Business School.

"When a manager overlooks a highly creative idea, employees may see that as a sign that the manager lacks the judgement needed to recognise good ideas, which can reduce trust.”

Recognising creative ideas builds employee trust

Across two experiments, more than 800 full-time UK employees took part. Participants trusted decision-makers less when they dismissed highly creative ideas. Participants trusted decision-makers more when they recognised ideas they viewed as highly creative.

In the first study, participants observed a manager evaluating product ideas which varied in creativity. Employees reported lower trust in a decision-maker who evaluated a highly creative idea as uncreative than in one who made the same evaluation of a less creative idea. They also viewed that manager as less competent.

In the second study, participants generated their own product ideas before receiving feedback from a fictional manager. Participants who believed their ideas were highly creative trusted the manager more when those ideas were recognised as creative and trusted the manager less when they were evaluated as uncreative.

The researchers also compared participants' own assessments of creativity with ratings provided by independent observers. Employees' own views of their creativity were a stronger predictor of trust than outside ratings. This suggests that how employees see their ideas shapes how they respond to feedback.

"Our results show that employees are not simply reacting to whether an evaluation is objectively correct," said Dr Lim.

"Instead, their own perceptions of an idea's creativity appear to influence how they judge a decision-maker."

Why recognising creative ideas matters for workplace trust

Organisations often encourage employees to share new ideas. However, little research has examined what happens when decision-makers fail to recognise creative ideas.

The findings suggest that evaluating ideas is not only important for identifying potential innovations. It may also affect workplace relationships by shaping how employees view the competence and judgement of decision-makers.

Trust plays an important role in collaboration, knowledge sharing and the willingness to contribute new ideas. Repeatedly overlooking creative ideas could have consequences that extend beyond innovation itself.

"Recognising creative ideas is important not only because it helps organisations identify potential innovations," said Dr Lim.

"It may also influence how employees view and trust those responsible for evaluating ideas."

Verena Krause, co-author of UCL School of Management, added: "These findings suggest that employees use idea evaluations as one way of judging the competence and judgement of decision-makers. Therefore, the way managers respond to ideas may shape how their employees perceive them."

Managerial competence drives employee trust

The study found that perceptions of competence consistently explained why trust increased or decreased following the evaluation of ideas.

Perceptions of warmth also increased trust in some cases. This was most common when participants received feedback on their own ideas. However, competence was the more consistent explanation across the studies.

The researchers also found that the results were not explained only by how accurate a manager’s evaluation was. Instead, trust depended on both how creative an idea was perceived to be and how that idea was evaluated.

Further reading:

How to overcome fear of failure and foster innovation

Can diverse workplaces increase innovation?

Four strategies to drive innovation in your organisation

The key leadership skills for leadership growth

 

Velvetina Lim is Assistant Professor in Entrepreneurship & Innovation. She teaches Lean Startup on BSc International Business & Management, BSc Accounting & Finance, and BSc Business & Management.

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