Abstract
The study was aimed at exploring empowerment and interpersonal trust, and how it would impact on the overall profitability of organizations. Given this conceptualization, empowerment may influence interpersonal-level trust and profitability in several ways. If principal create a work environment that enhances the feeling of empowerment in terms of meaning, competence, self-determination and impact. Teacher may be more likely to trust their supervisor and it will impact on overall profitability of organization. Fasialabad city was selected as universe and sample of 100 respondents were analyzed. Questionnaire tool was used to collect the data. After collecting information certain statistical tools (Mean, Standard deviation, regression and multi variate analysis) were applied to examine the relationship between empowerment and interpersonal trust and that relationship had an impact on overall profitability of institutions. Interpersonal trust level in colleges increased when teachers perceived that they were empowered in their work related activities. Teachers who perceived higher levels of empowerment in terms of the subscales of self-determination and impact also showed higher levels of interpersonal-level trust in their principals. Interpersonal trust and empowerment are very much essential to increase overall profitability in terms of goodwill and organizational learning.