According to Zak (and an article on the quickbase.com website), people work more effectively when the culture can be described as one that encourages trust. People shouldn't be scared, as they can be when they work for an organization in which people are fired immediately if they happen to make a mistake.
So he says, if you want innovation, you need to let people make mistakes. Why? Because when you want innovations, taking risks is necessary. So you need to make sure that your people know that it's ok to take risks.
Zak described how the brain synthesizes oxytocin when people trust each other. This chemical leads to reciprocation of trust by others – when you are trustworthy. So basically, the rule “If you treat me nicely, I'll treat you nicely too” has its basis in oxytocin.
Trust reduces the friction common in economic activity, even on the level of entire economies. So if employees lack trust, what should you do?
1) No fear
People acclimatize to fear quickly. However, high levels of stress inhibit the release of oxytocin. People become selfish and start demanding more and more from their colleagues.
2) Inclusion
Leaders should share information with everyone regularly. They also should encourage diverse opinions. That's a great way to make the culture of your workplace fairer.
3) Shared goals
Chronic stress can lead to diseases – from depression to diabetes. If you don’t know what the company's or your boss's plans are, you become stressed. You won't understand why there are changes.
It's far better to bring a team together and motivate everybody by informing people and discussing issues.
Watch Paul Zak's TED talk from 2011 describing the impact of oxytocin on trust and morale in society.
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