Psychological Contract and Transparent Leadership in Organisations

Leadership in organizations has been a topic of discussion in management circles for some time now and the discussion will remain open for a long time to come. The role and importance of Psychological contract in recruitment and placement as also in Organization Development has also been discussed in management literature elaborately. The present topic of investigation and research is concerned with the impact of organization leadership on the psychological contract between employer and employee as the organizations develop and progress to meet the growing needs of the new millennium. Leadership styles have changed and evolved with the changing requirements of the business environment and what needs to be understood is whether the psychological contract is keeping pace with the developments to enable a transparent leadership. Transparency demands an equal if not more in the interaction between the employer and employee and the understanding of mutual roles in enhancing the psychological contract between the employer and employee. This article will review the current situation as it exists in business organizations today.