Advances in Consumer Research
Issue 6 : 162-169
Original Article
An Examination of How Leadership Styles Shape Psychological Contract and Organizational Value
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1
Professor, School of Management, NIET, Greater Noida 201310, India.
2
Assistant Professor, School of Management, NIET, Greater Noida 201310, India.
3
Assistant Professor, Department of Commerce, Dayananda Sagar College of Arts Science and Commerce, Kumarswamy Layout, Bengaluru 560111, India.
4
Assistant Professor and Research Scholar, Department of Commerce, BGS Institute of Management Studies, Chikkaballapur, Karnataka, India-562101.
5
Associate Professor, Department of Management, Chamali Devi Group of Institutions, Khandwa Road, 452020, India.
6
Associate Professor-Marketing, School of Business Management (SBM), NMIMS, Mumbai, India.
Abstract

Organizational leadership is important in influencing employees' attitudes, behaviours and perceptions. Psychological Contracts and Organizational values are two organizational factors which are impacted by leadership and which are important as they shape employee commitment, trust and workplace culture. The unspoken expectations and obligations between employees and employer are psychological contracts, and shared beliefs and principles that influence organizational behavior are organizational values. The study adopted a descriptive research design to analyze the influence of leadership styles on psychological contracts. Primary data were collected from 100 respondents using a structured questionnaire. The respondents were selected through the convenience sampling technique, considering their accessibility and willingness to participate in the study. Leadership styles have an impact on employee interpretation of the value system, fairness and promises of the organization. The article analyzes the relationship between the leadership mode, psychological contract and organizational values. It discusses transformational, transactional, ethical leadership and authoritative leadership and how they affect employee perceptions and organizational culture. The study emphasizes that good leadership, in turn, creates positive psychological contracts and reinforces organizational values, which foster employee satisfaction, engagement, and organizational performance.

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