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Executive Summary

This study examines the efficacy of Large Language Models (LLMs), specifically GPT-4, in creating employee manuals for small businesses, focusing on a family-owned restaurant. Addressing the psychological contract theory, the research explores how LLMs can aid in drafting manuals that articulate implicit employer-employee expectations within the unique context of small businesses. The study involves a comprehensive content analysis of an LLM-generated manual, evaluating its legal compliance, operational relevance, and alignment with the restaurant's culture. Results highlight LLMs' potential in addressing resource and expertise constraints while also underscoring challenges such as ensuring legal accuracy and maintaining the nuances of the psychological contract. The findings contribute to understanding LLMs' role in enhancing HR practices in small businesses and suggest a need for a balanced approach, integrating AI-generated content with human expertise.

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