International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss


Exploring Faculty Psychological Contract through Leadership Style and Institutional Climate in a Higher Education Setting
Hui-Chin Chu, Tsui-Yang Kuo

This study aims at investigating the impacts of leadership style and institutional climate on faculty psychological contract (PC). Two hundred questionnaires were distributed to the faculty members a private university in Taiwan with a valid return rate of 74.5%. The study results indicated that both leadership style and institutional climate had impacts on faculty’s psychological contract (PC). Supporting to the existing literature, high consideration/high initiating structure leadership behavior was found the most favorable in creating relational and satisfied PC. It is worth to note that low consideration/low initiating structure leadership behavior was perceived the second favorable in creating faculty’s relational PC, which is inconsistent with the literature that this type of leadership style generally leads to dissatisfied subordinates and the lowest productivity among group members. It is concluded that in a highly motivated team such as college faculty with a homogeneous level of expertise, this hands-off leadership style may be more effective than high consideration/low initiating structure leadership.

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