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Iceland was hit hard by the 2008 financial crisis during which time three of the country's major banks collapsed. In the wake of the economic crisis, trust declined in Icelandic society. Trust can be defined as the expectation that other people, groups, or institutions with whom people are in contact, interact, cooperate will act in ways that are conducive to public well-being. Trust and credibility are essential for management in organizations. In this paper, we examine managers in public organizations in Iceland using data from a survey carried out by SFR, one of the largest public sector labor unions in Iceland. This labor union has asked their affiliated members and public sector employees in other labor unions questions regarding various issues concerning work and working conditions. The focus of this paper is trust and credibility of management. This paper determines whether credibility and trust of managers in the public sector in Iceland declined after the collapse of the Icelandic economy in October 2008. The results indicate that the management credibility and trust amongst public sector managers in Iceland did not fall after the collapse of the economy in 2008. In 2008, the score related to trust of managers was 3.61 out of 5, and it rose to 3.96 in 2009 and was 3.92 in 2010. The highest score measured was in 2016, 3.98. This is an interesting idea because in a time of restructuring and harder management approach, the trust and credibility of managers might decline. However, that is not the case regarding public service managers in Iceland. On the contrary, their trust and credibility are now higher than before the collapse of the economy.
Original languageEnglish
Pages (from-to)43-50
JournalJournal of International Finance and Economics
Issue number1
Publication statusPublished - 1 Mar 2017

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