With profits on the way down and unemployment on the way up, companies that have a trust-based management system and high employee morale will have a significant edge over those that don't. Workplace experts even maintain that honesty and trust in the office are key to surviving through tough economic

According to Diane Tracy and William J. Morin, authors of Truth, Trust, and the Bottom Line, managers must take a "coach approach" in their management style in order to develop and maintain trust among their employees. This is especially true for companies facing corporate downsizing. The manager-coach must communicate with employees as honestly and directly as possible about their performance and future. In turn, this can help to maintain confidence and alleviate fears among staff members, particularly during uncertain times. This management style could boost morale and improve the company's bottom line in a variety of ways:

* People would spend more time focusing on how to do their job better, rather than constantly trying to figure out where they stand and how they can protect themselves.

* Employees would trust management's word and, as a result, would invest more energy in their work, increasing productivity.

* Workers would be less inclined to make errors, sabotage the company, and look the other way when things go wrong, helping reduce costs.

* Individuals would have better relationships with management and with each other, so they probably would have better relationships with customers.