Psychological Contract and Leadership Style relationship in Small Business Firms

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Acknowledgment

I take this opportunity to express my gratitude to my family and friends who through out supported me. Their untiring moral help is a great factor in completing this research. I thereby, acknowledge their consistent encouragement all through the way in making this research possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation qualify my personal independent work, and this dissertation has not been presented for academic examination towards any qualification, previously. Additionally, it signifies my own impression and opinion and not that of the university, per se.

Signed __________________ Date _________________

Abstract

In this study, the concept of Small Business Firms is attempted to be explored in a holistic context. The main focus on the research is on “Small Business Firms” and its relation with psychological contract and styles of leadership. The research also analyzes many aspects of psychological contract and leadership styles and tries to gauge its effect on Small Business Firm. Finally the research describes various factors that cause the violation of psychological contract and ineffective leadership styles and tries to describe the holistic effect of these factors on Small Business Firms.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the research3

Problem Statement3

Rationale4

Aims and Objectives5

Significance6

Research Question6

Limitation and Suggestions for the Study7

Assumptions & Limitation7

Reliability7

Validity8

Ethical Concern9

CHAPTER 2: LITERATURE REVIEW10

Interdependence11

Competition11

Innovation12

The Psychological Contract15

Psychological Contract Breach16

Conceptual overview of psychological contract23

The nature of the psychological contract23

Breach and violation of the psychological contract25

Trust and the psychological contract26

Breach of trust28

Psychological Contract Focus35

CHAPTER 3: METHODOLOGY37

Research Design37

Literature Search37

Definition of Qualitative Research38

Research Method39

Literature Selection Criteria39

Search Technique40

Theoretical Framework40

Difference40

CHAPTER 4: ANALYSIS AND DISCUSSION42

CHAPTER 5: CONCLUSION AND RECOMMENDATION45

REFERENCES51

Chapter 1: Introduction

After a period of economic slump that overtook the entire world economy by storm, the recovery stage for the economies became a question of immense concern. Not only the multinational and large enterprises started focusing on the recovery phase, but also the small and medium business firms became an extremely important asset for the economies. The impact and role of small businesses recommend and extends assistance to the claim that it makes two essential contributions towards the economy. The First contribution is that small business firms play an integral part of the tough process of renewal and rejuvenation that permeates market economies the world over. The role that new and small firms play in enhancing an economy is a crucial one because it leads to innovation and experimentation that paves way for considerable productivity, technological change, and economic growth.

The second contribution made by small firms toward the economy is that small firms serve as the indispensable mechanism by that the economic and social mainstreams of different societies receive millions. All segments of the society continue to create high-level small business firms for social welfare as well as sustained economic growth. In this regard, the governments should plan a policy to facilitate the process that eliminates the entry barriers and lower transaction costs. Moreover, regulations are minimized as well. In the contemporary economic world, the globalization of economy with reference to small ...