Psychological Contract and Leadership Style

Institute of Management Sciences
Managerial Leadership

“Effect of Leadership style on Psychological Contract”

Second Monthly Exam
Submitted to:
Sajid Iqbal Dawezai

Irum Azmat
MS-HRM
1st Semester

Date: 24th september, 2012

Introduction:
The topic that I have selected for my review is “effect of leadership style on psychological contract”. In this review, first I would like to introduce the concepts of leadership and psychological contracts. After that, I would be talking about what researchers have found out about the link between leadership styles and the psychological contract, mainly from an employee’s perspective.
Leadership:
Leadership is a difficult phenomenon to define. Many authors have tried to come up with one best definition of leadership but none has succeeded so far. Stogdill (1974) had concluded that “there are almost as many definitions of leadership as there are persons who have attempted to define it”. Leadership has been defined from different aspects like traits, behaviors, interaction patterns, roles and relationships with followers.
However, many authors have agreed on the central theme of leadership concept i.e. the ability to influence others. For convenience purpose, here a few definitions of leadership will be provided that may prove helpful in getting an insight into this concept.
Definitions:
Leaderships is “the behavior of an individual…directing the activities of a group towards a shared goal” (Hemphill & Coons, 1957, p. 7)
“Leadership is about articulating visions, embodying values, and creating the environment within which things can be accomplished” (Richards & Engle, 1986, pg. 206)
“Leadership sis the ability of an individual to influence, motivate and enable others to contribute towards the effectiveness and success of the organization…” (House et al., 1999, pg. 184)
There are a lot of dissimilarities or differences among authors regarding the central theme of influences. (Gary, 1989 15:251)

References: Stodgill, R. M. (1974). Handbook of leadership; a survey of theory and research. New York: The Free Press Hemphill, J.K., and A Richards D., & Engle, S. (1986) After the vision: Suggestions to corporate visionaries and visions champions. In JD Adams (Ed.), transforming leadership (pp. 199-215). Alexandria, VA: Miles River Press DeMeuse, K, & Tornow, W (1990) Newell, H, & Dopson, S (1996). Muddle in the middle: organisational restructuring and middle management careers. Personnel Review, 25(4). Rousseau, D M (1989). Psychological and implied contracts in organisations. Employer Responsibilities and Rights Journal, 2, 121-139. Sims, R R (1994). Human resource management 's role in clarifying the new psychological contract. Human Resource Management, 33(3), 373-382. Moorhead, G., & Griffin, R. W. (2004). Organizational behavior: Managing people and organizations. 6th ed. Houghton Mifflin (Academic). Robinson, S. L. (1996). Trust and breach of the psychological contract, Administration Science Quarterly, 41, 574-599. Rousseau, M D. (1990). New hire perceptions of their own and employer’s obligations: A study of psychological contracts. Journal of Organizational Behavior, 11, 389-400. Rousseau, D.M., & McLean Parks, J. (1993). The contracts of individuals and organizations. In L. Cummings & B.M. Staw (eds.). Research in Organizational Behavior (pp. 1-43). London: JAI Press. Chu, H.C. & Kuo, T.Y. (2012) Exploring Faculty Psychological Contract through Leadership Style and Institutional Climate in a Higher Education Setting, International Journal of Business and Social Science, Vol. 3 No. 4 (feb 2012) Chu, H.C