Research Journal of Recent Sciences _________________________________________________ ISSN 2277-2502 Vol. 4(2), 36-43, February (2015) Res.J.Recent Sci. International Science Congress Association 36 Investigation on the Impact of Internal Marketing Elements on Trust-building among staff of IKCO Tabriz Iranzadeh Soleyman, Bohlooli Nader and Lavei RaminDepartment of Management, Tabriz branch, Islamic Azad University, Tabriz, IRAN Department of Management, Bonab branch, Islamic Azad University, Bonab, IRAN Available online at: www.isca.in,www.isca.me Received 9th December 2013, revised 4th February 2014, accepted 29th May 2014Abstract In today's world, in most of the organizations, the employees are regarded as the main resources of the organization. They have understood that motivated, happy and faithful employees would feel responsibility for their duties. Internal Marketing, as well as using certain elements utilizes a systematic process to increase employee's motivation - as inter-organization costumers. On the other hand, existence of organizational trust atmosphere leads to information division, improvement of employee's moral, preventing the organizational gossip, decreasing disagreements and increasing cooperation among employees, increased innovation and productivity and helps effective management of the organizations. The present research aims to investigate the impact of IM elements on organizational trust-building among staff of IranKhodro Tabriz to find that if practical performance of IM concepts leads to successful organization trust building. Using the gathered data and their statistical analysis via regression method, all raised seven hypotheses have been confirmed. Then, multiple regression analysis revealed that among the seven elements stated, six elements have direct impact on dependent variable and regression model of the test was described. ANOVA and Tukey tests showed that there was a significant difference between the attitudes of manufacturing unit employees and attitudes of supporting and administrative unit employees towards organizational trust-building. Keywords: Internal marketing, internal marketing elements, organizational trust, organizational trust-building.IntroductionNowadays, pioneer and successful organizations integrate effective and efficient management methods in internal and external dimensions of the organization1 with increasing the competition in the industries markets including services and non-services industries, different organizations are always threatened by the risk of exclusion from the market. The issue becomes more important when the employees are regarded as the main resource of the organizations in third millennium; i.e. gaining permanent competitive advantages over the other competitors depends on investments on human resources and satisfying their needs and requirements, since the only way to have loyal and satisfied external costumers and establish continuous business communication is to possess satisfied and acquiescent employees (internal costumers) in the organization. Basically, the way leading to satisfaction of external costumers and their anticipated quality passes through the satisfaction of internal costumers. So any kind of researches and studies which could create methods and points about acquiring competitive advantages by focusing on humanistic factors is regarded serious and vital. Issues of attracting and maintaining the costumers have been turned to be one of the main concerns of any organization, since maintain and increasing the market share and profitability is ascertained when the organization reaches to an accurate recognition from marketplace and identify costumer needs and responds quickly. But reaching to satisfaction of costumers has some prerequisites that focusing on which lead to this aim. One of these prerequisites is existence of employees who undertake the aims and visions of the organization and have costumer-care and costumer-oriented behaviors in different organizational levels. It is rarely possible to present proper and valuable products and services to the customer if the needs and expectations of working force as the main resource of the organization that bear the responsibility of acquiring competitive advantages are not fulfilled and their needs have been seen as organizations expenditures. In the field of organizational literature, various studies focus on importance of trust as a prerequisite for productivity. Lack of organizational trust and trust-building generates indifferent and unmotivated employees which causes slow implementation of organizational plans. Low level trust makes employees to deflect the information flow in organizations, promotes distrust and suspicion, spoils honest and open communications and causes decisions to have unsatisfying quality. In order to counter distrust phenomenon, distrusted employees decrease their dependency to the organization and hinder reaching to determined goals in organizational policy. Top managers of IranKhodro Tabriz have always announced increased productivity, decreased expenses and costumer's Research Journal of Recent Sciences _____________________________________________________________ ISSN 2277-2502Vol. 4(2), 36-43, February (2015) Res.J.Recent Sci International Science Congress Association 37 satisfaction as the main goals of this industrial organization, so focusing on customer's satisfaction as third main goal should be visible in all organizational levels. Not using systematic methods such as IM to reach to the goals of satisfying internal costumer's needs would promptly lead to outbreak of relative distrust phenomenon. Internal marketing: IM paradigm is a mechanism to systematically analyze organizational problems which should be used in order to execute business marketing strategies. As stated by Schultz, the motto of this branch of marketing is “satisfied employees beget satisfied costumers”. So, the best initial point to create a model for a profitable business is employees and other internal beneficiaries. Internal marketing links two distinguished subjects to each other; one is marketing, especially services marketing, and the other is organizational knowledge, especially organizational behavior (OB) knowledge. One of the most comprehensive definitions in this field is as follows: “Internal marketing is a programmed effort to use a marketing-like approach in the field of employees' motivation to execute and integrate organizational strategies on the orientation of costumer”. According to the theory of Total Quality Management (TQM), the main cycle of internal marketing is a relatively simple cycle; i.e. an organization through executing it by satisfying and motivating the employees, can reach to a better position regarding presentation of services with better quality and in higher degrees of efficiency, profitability and costumer's satisfaction gaining. In a simple concept, the internal product is job. Addressing the jobs as products means penetration into the tasks and paying attention to their factors, except merely money factors. In general, employers should face with their employees with the same sensibility they behave with their external costumers. At first, internal marketing was suggested as a method to make higher level quality in service industries, while nowadays it's intended as a pattern for management, executive strategy and making changes in organizations. Harrell and Fors have used the concept in a manufacturing company and Rafiq and Ahmed suggest internal marketing as a proper method for change management execution in an expanded range of various fields of activities. Three researchers of this field named Tansuhaj, Randall and McCullough, presented a classification as elements of IM which consists of: positive attitude towards employees, Employee participation in employment process, Formal and on the job training, leading employees towards attainable individual goals, open environment for communications, mutual feedback and helping to understand the relationship between performance and reward. This classification has been regarded as the basis of the current study. Positive attitude towards employees means positive attitude towards qualifications of the employees. Qualifications, are a collection of knowledge, skills, personality characteristics, interests, experiences and capabilities related to the job that make their owner to do his responsibilities in a level higher than normal10. Employment process is the process of sifting job applicants to identify and select the most appropriate choice to hire for the organization11. Employee participation in employment process could be asking for organizational practitioners’ (including heads and employees) opinions in an effective way about expertise and skills required for new positions and final decision making for selection12. Leading employees towards attainable individual goals means helping employees to obtain vocational progresses which could be achieved through development of career path11. John F. defines on the job training as: “continuous and systematic improvement of employees regarding their knowledge, skills and behaviors that help to their welfare as well as organization they work for”13. Blake Reed remarks organizational communications as a form of inter-personal communication in a way that it observes vocational relationships between the employees14. Feedback means presentation of the findings resulted from performance evaluations of a person to himself. Feedback is an essential process which links the manager to the staff and makes efficient methods to work with each other. Helping to understand the relationship between performance and reward which is one of three elements forming Victor Vroom’s Expectancy theory could be defined as follows “the rate or the range of a person’s belief that a certain level of job leads to the outcome, result or reward”15. In order to help employees to understand the issue, this relationship should be clearly visible. Organizational Trust-building: In today’s world we cannot do every work by ourselves, so we have to trust our colleagues. If an employee does not believe that his boss is a gentle, competent and goodwill person and his behaviors are predictable, the possibility to trust him is very low. The scientists of organization science believe that trust is a means of organizational control16. The subject of trust has both theoretical and practical importance for studying administrative organizations. Trust acts as a simplifier phenomenon which improves the efficiency of organizations. It is fact that there is not a unique definition based on scientific researches about trust. But there is an agreement on the reasons of why trust is so important. Some of the reasons are as follows: trust improves the behavior based on collaboration, develops compatibility procedures, and decreases non-functional (destructive) conflicts17, leads to information sharing, commitment to the decisions, organizational citizenship behavior, more correlations, increased working spirit, decreased absence, increased sense of dependency to the organization, Research Journal of Recent Sciences _____________________________________________________________ ISSN 2277-2502Vol. 4(2), 36-43, February (2015) Res.J.Recent Sci International Science Congress Association 38 increased creativity and productivity, and helps managing the organizations efficiently18 .Trust is an essential element for making continuous relations and maintaining collaborations19. Trust is a multi-level concept which is highly affected by the culture20. Theorists such as McGregor, Likert and Argyrys have supported the idea that trust is the basic element for organization's success21. Foundation, maintenance and promotion of trust level in today’s vocational and business relations could be regarded as the cornerstone of success in companies of 21st century. Some believe that significant increase in researches in the field of trust could be related to the fact that organization suffer from trust shortage among the managers and employees. So some solutions should be presented to solve this problem which could raise many other problems in future if not noted. The best way to define organizational trust is to express what happens if it lacks or destroys. The employees like to have capability to trust managers. They anticipate receiving honest responses for their questions. Organizational trust empowers the employees, increases participation in decision-making and finally provides more productive working environment22. Sashkin defines organizational trust as follows “the confidence that employees feel towards managers and the rate that they believe manager’s statements”. According to Robbins trust emerges over long time and in case of lack of attention, it fades promptly that could not be recovered easily23. The solution to create trust culture and eliminate the existed gaps is to make all organization activities clear for employees. A negative event could be very destructive rather than a positive event to create trust24. Employees' trust to managers appears in various contexts such as trust to accuracy and precision of presented information, compiled operational and strategic goals, etc.25. Manager’s behavior is more important than the other factors in the organization to determine trust levels. Furthermore, positive evaluation of supervisors’ performance leads to higher levels of organizational trust19. When the trust level in an organization is low, the situation of the organization is as follows: i. The organization’s atmosphere is usually quiet and calm and the energy level and responsibility is low. ii.There is not any conflict, no one shows resistance and dissatisfactions are punished. iii. Changes are usually along with distrust and suspicion and alarming. iv. Management method is top-down. Positions and posts have a great importance. v. Decisions are controlled via commandant chain. vi. Employees feel that they are limited in their jobs. The results of distrust would be conflicts, rumors, political moves, slumber, false information, etc. in such organizations; it is worthless to speak about concepts such as self-management and self-control, collaboration, creativity outbreak, high level efficiency, total quality management, etc. In a research carried out by SeyyedJavadin et al. under the title of “internal marketing, a step towards improvement of organizational citizenship behaviors and services quality” it has been shown that internal marketing measures in Tehran Metropolis Gas Company have significantly positive direct effects on organizational citizenship behaviors and significantly positive indirect effects on services quality and the citizenship behaviors themselves have significant positive direct effects on services quality26. In a research carried out by Khodaparast under the title of “a pattern to introduce and evaluate reciprocal trust in organizations” it has been resulted that supplying reciprocal trust among people (recourse), groups (professional employees) and organizations’ managers is possible in organizational analysis area by the stated approach in the article. Despite the traditional theories that follow win-lose strategy, this article introduces and suggests win-win strategy16. Farzad, in her study “the effects of internal marketing on organizational commitment” shows that state-owned banks of Isfahan could provide better experiences of services to their costumer through increasing organizational commitment among employees which could be acquired via focusing on training and motivation dimension for “inter-operational cooperation and integration”. Methodology According to the purpose, the present study is applicable research and as it is describing the situations with under-investigation phenomena for more recognition of the situation and helps decision-making process to improve the current situation, according to research plan, it is a descriptive survey research. For configuring the subject's literature, library based method has been utilized. Also, for data gathering to test the research hypotheses and required statistical analysis, field study method has been utilized in the form of questionnaire. According to the title of the research, the present study has been carried out in IranKhodro Tabriz, among the staff. Also it has been tried to acquire the maximum participation for more desired analysis of data, according to the questions raised in the questionnaire. According to the statistical population of this research, sampling method has been utilized and sampling principles in statistical method have been considered in order to extend the results to total population. In the present research, as the extent of investigable statistical population (N) is 800 people, by using Morgan table27, the number of sample (n) is 260.The questionnaire included 39 close-ended type of question. The questions regarding deductive statistics were designed using a five-point Likert scale. In order to design a proper questionnaire, some preliminary studies were carried out by researcher and also the questionnaire were distributed among some of the people from statistical population to acquire corrective feedbacks and their comments. The result was some modifications applied in the questionnaires. In order to Research Journal of Recent Sciences _____________________________________________________________ ISSN 2277-2502Vol. 4(2), 36-43, February (2015) Res.J.Recent Sci International Science Congress Association 39 investigate its quality, required investigations were carried out; to investigate validity of the questionnaire, content validity was utilized, i.e. by referring to the professionals of marketing field and gathering their ideas, it was tried to heighten the validity of measurement tool at the highest level and anticipate it to measure and evaluate the variables of the problem. This way, the validity of measurement was accepted. After confirming the validity of the prepared questionnaire, the reliability should be measured. In order to investigate the reliability of this questionnaire, Cronbach's Alpha method has been used. In order to assure that the designed questionnaire has acceptable reliability, 30 questionnaires have been distributed among some of the members in statistical population randomly as pretest and the data has been analyzed by SPSS software, and reliability coefficient has been calculated that in case of any modification required for questions to increase the reliability, these modification would be applied.The value of Cronbach's reliability coefficient in table-1 is more than 0.7 in all items. So the reliability of this tool is acceptable. In this study, as you will see, various descriptive statistical and analytic statistical methods such as two-variable regression, multi-variable regression, ANOVA and Tukey has been utilized as well. Table-1 Reliability coefficientItems Cronbach's Positive attitude towards employees 0.822 Employee participation in employment process 0.707 Leading employees towards attainable individual goals 0.787 Formal and on the job training 0.854 Open environment for communications 0.863 Mutual feedback 0.712 Helping to understand the relationship between performance and …0.792 Organizational trust-building 0.898 Results and Discussion Descriptive analysis of independent variables of the research: The resulted findings are as the following tables: Table-2 Frequency table of internal marketing elementsFrequency Percent Valid Percent Cumulative Percent 1 41 15.8 15.8 15.8 2 93 35.8 35.8 51.5 3 56 21.5 21.5 73.1 4 46 17.7 17.7 90.8 5 24 9.2 9.2 100.0 Total 260 100.0 100.0 - It is distinctive that the number of disagreed people is relatively twice more that agreed people who believe that the considered elements of IM have not been executed in the statistical population. According to table-3, it is observable that 98 people (37.7 percent) disagreed trust-building and 114 people (43.9 percent) agreed this issue. Table - 3 Frequency table of organizational trust-buildingFrequency Percent Valid Percent Cumulative Percent 1 23 8.8 8.8 8.8 2 75 28.8 28.8 37.7 3 48 18.5 18.5 56.2 4 87 33.5 33.5 89.6 5 27 10.4 10.4 100.0 Total 260 100.0 100.0 - Kolmogorov-Smirnov Test: This test has been utilized to determine normal or abnormal distribution of dependent variable. So, H0 was that ''data related to this variable has a normal distribution'' and H1 was that ''data related to this variable has not a normal distribution ''. As the value of "Asymp Sig. (2-tailed)" in table-4 is 0.210, which is higher than 0.05, so the above mentioned test was not significant and therefore there is no reason to reject H0; so the related distribution is normal. Table - 4 Kolmogorov-Smirnov Test Organizational Trust-building N - 260    \n  Mean 34.0385 Std. Deviation 7.93156 K-S z - 1.061 Asymp. Sig. (2-tailed) - .210 In this research seven hypotheses have been raised: Positive attitude towards employees has positive impact on trust-building among staff of IKCO Tabriz, Employee participation in employment process has positive impact on trust-building among staff of IKCO Tabriz, Leading the employees towards attainable individual goals has positive impact on trust-building among staff of IKCO Tabriz, Formal and on the job training has positive impact on trust-building among staff of IKCO Tabriz, Open environment for communications has positive impact on trust-building among staff of IKCO Tabriz, Mutual feedback has positive impact on trust-building among staff of IKCO Tabriz, Helping to understand the relationship between performance and reward has positive impact on trust-building among staff of IKCO Tabriz. The hypotheses have been tested via two-variable regression. Research Journal of Recent Sciences _____________________________________________________________ ISSN 2277-2502Vol. 4(2), 36-43, February (2015) Res.J.Recent Sci International Science Congress Association 40 Table-5 Variance analysis of the research hypothesesHypothesis No. Model Sum of Squares df Mean Square F Sig 1 Regression 3656.399 1 3656.399 76.649 .000 Residual 12673.216 258 48.081 - - 2 Regression 2685.099 1 2685.099 50.906 .000 Residual 13608.516 258 52.746 - - 3 Regression 6219.317 1 6219.317 159.275 .000 Residual 10074.299 258 39.048 - - 4 Regression 2335.691 1 2335.691 43.173 .000 Residual 13957.924 258 54.100 - - 5 Regression 3341.154 1 3341.154 66.552 .000 Residual 12952.462 258 50.203 - - 6 Regression 3517.196 1 3517.196 71.024 .000 Residual 12776.419 258 49.521 - - 7 Regression 4908.654 1 4908.654 111.237 .000 Residual 11384.961 258 44.128 - - Table-6 Values of R, R2 and modified R2 and standard error of variables of the research hypotheses hypothesis No. R R Square Adjusted R Square Std. Error of the Estimate 1 .474 .224 .221 6.999 2 .406 .165 .162 7.263 3 .618 .382 .379 6.249 4 .379 .143 .140 7.355 5 .453 .205 .202 7.085 6 .465 .216 .213 7.037 7 .549 .301 .299 6.643 Table-7 Variance analysis of effective variables on organizational trust-building (the first and second model)Regression Model No. Model Sum of Squares df Mean Square F Sig 1 Regression 8795.071 7 1256.439 42.225 .000 Residual 7498.544 252 29.756 - - 2 Regression 8793.397 6 1465.566 49.437 .000 Residual 7500.218 253 29.645 - - As shown in the table-5, according to the acquired significance levels in all hypotheses, the acquired F is significant and therefore all seven hypotheses are acceptable. Value of R coefficient shows the rate of relation between dependent and independent variables. Also R (Coefficient of Determination) shows that to what extent the organizational trust-building is determined by independent variable of each hypothesis. Multiple Regression Test: In this research, multiple-regression test with simultaneous method has been utilized to investigate the simultaneous effect of independent variables on dependent variable. In order to have the best model with acceptable coefficient of determination, first all the variables enter to regression equation. Then insignificant variables are eliminated from the model. Finally, by eliminating the ineffective or less effective variables, the most optimized model is remained which includes the variables with most effect on coefficient of determination (forecasting dependent variable). The values in table-7 show that independent variables affect on the dependent variable in both the first and second regression models. Also, the value of F is significant according to the significance level of 0.95. Significance of F means that at least one of the variables entered to the model has significant relation with dependent variable, and also it could be stated that independent variables have significant and linear relation with dependent variable. As a result, the value of R in models 1 and 2 is .735 and .735, respectively. Also, the value of R Square is .540 and .540, respectively. Now, the reason for creating two regression models will be described. Research Journal of Recent Sciences _____________________________________________________________ ISSN 2277-2502Vol. 4(2), 36-43, February (2015) Res.J.Recent Sci International Science Congress Association 41 Table-8 Table of coefficients for variables investigated in the first regression model Model Un standardized Coefficients Standardized Coefficients t Sig. B Std. E. Constant 5.786 2.146 - 2.696 .007 positive attitude towards employees .039 .164 .013 .237 .813 Employee participation in employment process .564 .217 .123 2.593 .010 leading employees towards attainable … .961 .187 .304 5.146 .000 formal and on the job training .397 .180 .106 2.207 .028 open environment for communications .427 .149 .146 2.859 .005 mutual feedback .452 .218 .106 2.068 .040 helping to understand the relationship … .968 .194 .255 4.986 .000 Table-9 Table of coefficients for variables investigated in the second regression modelModel Un standardized Coefficients Standardized Coefficients t Sig. B Std. E. Constant 5.768 2.141 - 2.694 .008 Employee participation in employment process \r    .569 .216 .124 2.632 .009 leading employees towards attainable individual goals \r   ) .976 .174 .309 5.595 .000 formal and on the job training (    .400 .179 .107 2.239 .026 open environment for communications  \r   ) .432 .148 .148 2.927 .004 mutual feedback \r    .454 .218 .107 2.087 .038 helping to understand the relationship … (    .977 .190 .257 5.135 .000 Table-10 The impact of IM elements on trust building according to affection valueStandardized Coefficients () IM elements .309 leading employees towards attainable individual goals .257 helping to understand the relationship between performance and reward .148 open environment for communications .124 employee participation in employment process .107 formal and on the job training .107 mutual feedback Among the variables in table-8, according to the significance level of 0.813, the variable of positive attitude towards employees is not significant, so it is eliminated from the equation (this variable has indirect effect on dependent variable). According to their significance level, the other 6 variables are the most important effective factors on dependent variable and have relation with it, so they remain in the regression equation. By eliminating the stated variable, the table of coefficients changes as follows: The final equation is as follows: y = 5.786 + 0.124 ( ) + 0.309 ( ) + 0.107 ( ) + 0.148 ( ) + 0.107 ( ) + 0.275 ( ) The effects of IM elements on organizational trust-building according to affection value: According to the second regression model in the previous part, it is possible to consider the effects of IM elements on organizational trust-building according to affection value as shown in table-10. Variance analysis test (ANOVA): In order to determine that if there is an important difference between respondents' attitude towards organizational trust-building based on organizational unit, one-way ANOVA has been used. The hypotheses for this test are as follows: H0: and H1: at least one "mean" is different from the others. The results are presented at the table 11. Table-11 Variance analysis test Sum of Squares df Mean Square F Sig. Between Groups 574.215 2 287.108 4.694 0.010 Within Groups 15719.400 257 61.165 - - Since the sig. value of this test is 0.010 (less than 0.05), so it is Research Journal of Recent Sciences _____________________________________________________________ ISSN 2277-2502Vol. 4(2), 36-43, February (2015) Res.J.Recent Sci International Science Congress Association 42 significant and the H1 is accepted. Therefore, it could be resulted that there is a difference between respondents' attitude towards organizational trust-building based on their organizational department. But here it is not enough to reject H0 and it could be important to find out the point that clarifies this difference. Tukey Test: After determining that at least one of the means is different from other means, it is possible to use Tukey test to determine the point that the different exists. According to the table-12, by dual comparison, it is clear that there are differences between manufacturing department and supporting department as well as manufacturing department and administrative department according to the significance level. So, it could be concluded that there is difference between attitudes of manufacturing employees towards organizational trust-building and attitudes of supporting and administrative departments towards organizational trust-building. Also it worth to mention that there is no significant difference between attitudes of supporting and administrative department towards organizational trust-building. Table–12 Tukey test Organizational units(I) Organizational units (J) Mean Difference (I-J) Std. Error Sig. Manufacturing unit Supporting Unit -3.47330 1.23481 .015 - Administrative Unit -4.23001 1.61566 .025 Supporting Unit Manufacturing unit 3.47330 1.23481 .015 - Administrative Unit -.75671 1.35167 .842 Administrative Unit Manufacturing unit 4.23001 1.61566 .025 - Supporting Unit .75671 1.35167 .842 Conclusion Both internal marketing and organizational trust-building, separately, are very important for reaching their related aims. Descriptive analysis of variables showed that, the number of respondents who disagreed with the existence of a proper form of IM process by using the considered elements, were twice more than agreed people. Also, the number of agreed people to existence of proper levels of organizational trust-building process was relatively equal to those who believed the contrary side. But the main issue investigated and discussed in the research is the relation between these two concepts, i.e. the research aimed to answer to: what is the impact of IM elements on trust-building among staff of IranKhodro Tabriz? We have showed that there is no evidence to reject main hypotheses and all seven hypotheses have been accepted and IM elements have positive effect on organizational trust-building. So, execution of internal marketing will have important and positive results for organization and will increase trust and trust-building. Also, increased trust in the organization will help it to take more advantages. In addition, we have showed that leading employees towards attainable individual goals has the most effect on dependent variable. Finally, it's discussed that there is difference between attitudes of manufacturing department's employees towards organizational trust-building and attitudes of supporting and administrative department's employees towards it. 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