Hi, Chris - good post about an important aspect of leadership - if a leader turns around and nobody is following (disengagement), they are just taking a walk.

You identified three important elements of building a culture of mutual trust:  Trust, Respect, and Dignity between the leader and the employee:

Trust - Both feel that the other will keep their word.  Honesty and credibility need be present.

Respect - Both see the other as a fellow human being, worthy of being listened to and heard.  You do not have agree, but you have to listen and try to understand the other's view.

Dignity - Both give the other the right to be part of the whole.  Different roles and responsibilities do not alter the basic equality that should exist between people.

As Page indicated in his response, you have to be willing to hear "bad news" through actually asking the hard questions, listening to the responses, and doing something about things that need to change.  Do this consistently and you will build trust, respect, and dignity.

Appreciate your articulate and useful thinking:)

John