The Effect Mechanism Of Transformational Leadership On New Generation Employees’ Psychological Contract

There are an increasing number of new generation employees emerging into the labour market, and more of them have already become the backbone in corporations. The new generation was born in the time which economic is booming, and they grew up in the period which is changing quickly. These all make the new generation employees differ from other generations. The new generation employees have their own unique characteristics. Accompanied with the labour laws improving, employees, especially the new generation workers, can not only satisfy with the material needs. More and more of them begin to concern their psychological contract fulfilment in companies. Most researchers both overseas and domestic have showed that leadership, especially the transformational leadership, is significantly positive related to employees’psychological contract situation. However, there are few scholars studying about the effect between transformational leadership and the psychological contract condition of Chinese new generation.This paper, based on Social Exchange theories and Human Resources Management theories and after reading a lot of literature, builds an analysis model and several hypothesis about transformational leadership and employees’psychological contract. This study revises and enriches the transformational leadership and psychological contract measures from foreign researchers. The transformational leadership is the independent variable, and the employees’ psychological contract is the dependent variable. Other variables include gender, education and tenure. This paper collects 106 new generation employees’samples through questionnaire. After gathering all sample, this study uses SPSS to do the descriptive statistics, the reliability and credibility of two measures, Pearson correlation coefficient and regression of all the dimensions. Based on these data analysis results, we test the different hypothesis. Finally, in the discussion part, we provide some suggestions to corporate managers about new generation employees’ management, and point out the limitations about this study and future research.