Does Globalization Matter : Does Globalization Matter : The Change of Power Distance and Its Effects...

Does Globalization Matter : Does Globalization Matter : The Change of Power Distance and Its Effects on Authoritarian Leadership in Chinese Organizations

Li-Fang Chou Bor-Shiuan Cheng Kaohsiung Medical University National Taiwan University

Globalization and Development in Chinese Economic Region Conference, June 22, 2006 in Taipei, R. O. C

Chou & Cheng @2007Chou & Cheng @2007

Presentation Outline Outline

Introduction Research Purposes Theoretical Review Research framework 2 Studies (Results and Summary) Discussion


IntroductionIntroduction Globalization and Leadership

Paternalistic Leadership (PL) Combines strong discipline and authority with

fatherly benevolence and moral integrity couched in a personalistic atmosphere (Farh & Cheng, 2000)

Authoritarian Leadership (AL) of PL

Leader take rigorous control over subordinates and demands complete obedience .


IntroductionIntroduction Leadership and authoritarian values

under Globalization The transformation of AL The Change of power distance values

regarding authority The effectiveness of transformational AL

and the key role of power distance within the relationship between transformational AL and individual outcome


Study PurposeStudy Purpose To probe into the influencing factors that will

affect the difference of employees’ power distance.

To realize the effects of different power distance values upon transformational authoritarian leadership.

To better understand the effectiveness of authoritarian leadership across individuals holding difference power distance


Relative theories and Previous StudiesRelative theories and Previous Studies

The impact of Globalization on Organizational Behavior--leadership Transcendence / compression of space and

economic, technology and information circulation

Cultural aspect, globalization → values homogeneous or heterogeneous all over the world /nation /organization ?

Globalization →Culture values → Leadership


Relative theories and Previous StudiesRelative theories and Previous Studies What happen to Authoritarian Leadership

in Chinese under Globalization ? Will be disappeared ? or transformed ? According to the content of AL, Farh & Cheng

(2000) suggested thatAL behavior hurts subordinates dignity—

should and will be lessened.AL behavior about performance, principle,

and core values –should and will be retained or reinforced.



People-related AL - Emphasizing leader’s

personal authority - Control over Subordinate - Focus on subordinate’s

compliance and fear toward leader.

- Unwilling to delegate, ignore sub. suggestion, information manipulation…

Task-related AL - Emphasizing high performance

standards, norms and core values which were built by leader or organization

- Control over task or job process and detail

- Focus on subordinate’s performance and work attitude.

- Didactic behavior, monitor work process, high- goal setting…

The Transformation of Authoritarian Leadership (Jen, Farh, Cheng, & Chou,2003; Cheng & Chou,2005).


Relative theories and Previous StudiesRelative theories and Previous Studies What will happen with the Transformation of AL?

Do people – and task – related AL co-existed ? Convergence Hypothesis (Myer, 1975; Yang, 1988) The Challenge of Convergence hypothesis

Cultural theory (Beck ， 1998) Traditionality and Modernity (Huang, 1995; Yang, 1996)

The relationships of people - and task – related AL with subordinate effectiveness Work motivation or incentive, emotional feeling… People-related AL → effectiveness(-) Task-related AL → effectiveness(+)


Relative theories and Previous StudiesRelative theories and Previous Studies PD which the values regarding submission to

authority have been gradually altered as the social modernization and industrial/ commercial development. Organizational Centralization (Janssens &

Brett, 1994) → PD (+) Power distance theory (Mulder, 1977; Poppe,

2003) ： leader’s PD > subordinate’s PD; Male PD > Female PD

The emphases on egalitarian (Farh & Cheng, 2000) ： Age (+), Education (-)



The demonstrations of AL behaviors Trait theory ; Organizational characteristic

(Yukl, 2003) Subordinate’s expectation and preference

regarding leadership ( Hofstede, 1980; Dorfman, et. al, 1997)

Organizational Centralization

Leader’s PD Leaders’ AL (+)

Subordinate’s PD


Relative theories and Previous StudiesRelative theories and Previous Studies Power Distance (PD) and AL

PD refers to people’s ideas about the what is acceptable in superior-subordinate relationship (Lee, Pillutla, & Law, 2000); Accept authority’s decision uncritically (Begley, Lee, Fang & Li, 2002)

PD shapes subordinates’ reactions to the supervisors’ leadership / decision / treatment (Farh, Liang, & Hackett, 2006)

The effect of AL on individual outcome will be moderated by PD


Research FrameworkResearch FrameworkOrganization char.

Hierarchical position and personal char.

Study 2

AL -People –related-Task - related

Subordinate Effectiveness

Power Distance

Study 1


Study 1 Subject 92 work team from business organization and 125 battalions from

military organizations (both are Taiwan sample) Business sample

92 leaders and 629 team members (one leaders with 3-13 members) from 60 organizations

Military sample 125 Battalion commanders (leaders), 402 company commanders

(members) and 1121 platoon leader (members). One leaders with 12 members

Measures Variables: Subjects’ gender , age, education, leader

position and type of organization (business / military organization)

PD, People-related AL, and Task – related AL


Organization chart. Hierarchical position and personal chart.


Power Distance

Study 1


Study 1 :Draft Results Factors for PD difference Factors for PD difference


Study 1 :Draft ResultsHLM –Factors for demonstration of ALHLM –Factors for demonstration of AL


Study 2 :Draft Results The effects of The effects of subordinate’s PD and subordinate’s PD and organization type on organization type on people-related ALpeople-related AL

-0.93 -0.43 0.07 0.57 1.073.20

3.30

3.40

3.50

3.59

subordinated pow er distance

Pe

op

loe

-re

late

d a

uth

ori

tari

an

le

ad

ers

hip ORGAN = Business Org.

ORGAN = Military Org.


Study 2 :Draft Results The effects of subordinate’s PD and The effects of subordinate’s PD and leader’s PD on task-related ALleader’s PD on task-related AL

-1.03 -0.53 -0.03 0.47 0.973.58

3.65

3.72

3.79

3.87

Leader pow er distance

Ta

sk

-re

late

d a

uth

ori

tari

an

le

ad

ers

hip subordinate with low PD

subordinate with high PD


Study 1 Summary Values regarding submission to authority--PD has

been gradually changed as the social change. Age → PD(+) on age 50+ group Education (years) → PD (-) PD in Military org. > PD in Business org.

The demonstration of AL Main effects for people-related AL

Military Org → People-AL (+); Leader PD , Subordinate PD → People-AL (+);

Cross-level interaction on AL Subordinate PD * organization type on People- AL Subordinate PD * Leader PD on Task -AL


Study 1 Complement for Org. type


Study 2 Subject 5~10 employee ( who cowork with CEO more than one year) each

business Mainland China sample

375 employees from 53 China private businesses 61% were males ;15% had college or higher education; average seniority was

about 4.57 years, 53% were supervisors Taiwan sample

181 employees from 27 Taiwan private businesses 51% were female; 24% had college or higher education; average seniority was is

about 7.60 years ; 53% were supervisors Measures

Outcome variables: Affective Org. commitment (α=.88, .95)α=.88, .95), Affective loyalty to CEO (α=.86, .92)α=.86, .92), and Obligated Loyalty to CEO (α=.80, 88).α=.80, 88).,

Control variables: employees’ gender, age, education, position, seniority


Study 2 Measures –EFA of AL Cheng, Farh, & Chou(2005)Cheng, Farh, & Chou(2005)

People-related ALPeople-related AL, 10 items, α=.87 (China) , 10 items, α=.87 (China) and .89(Taiwan)and .89(Taiwan) He will not reveal any message to me.He will not reveal any message to me. He will not let me aware of his real intension. He will not let me aware of his real intension. He will make all company decisions on his own.He will make all company decisions on his own. He asks me to fully comply with his leadership.He asks me to fully comply with his leadership. He will devaluate my contributions in work.He will devaluate my contributions in work. The final decision in meeting will be made based on The final decision in meeting will be made based on

his attitude.his attitude. He will underestimate my capability….He will underestimate my capability….


Study 2 Task-related ALTask-related AL, 7 items, α=.77 (China) and .84(Taiwan), 7 items, α=.77 (China) and .84(Taiwan)

He asks more work requirements on me than that I ask for myself.He asks more work requirements on me than that I ask for myself. He requests that his subordinates should achieve higher performance than He requests that his subordinates should achieve higher performance than

the ones from other companies.the ones from other companies. He asks me to report to him whenever there’s any work progress change.He asks me to report to him whenever there’s any work progress change. He will seriously request my explanation once work goal is not achieved. He will seriously request my explanation once work goal is not achieved. He will take control on my work.He will take control on my work. His management style is extremely strict. His management style is extremely strict. He fully know well of the my work details.He fully know well of the my work details.


Study 2 Measures-- EFA of Power Distance

Power distancePower distance: Dorfman and Howell(1988), 5 items, : Dorfman and Howell(1988), 5 items, α=.79 (China) and .80(Taiwan)α=.79 (China) and .80(Taiwan) Managers should seldom ask for the opinions of Managers should seldom ask for the opinions of

employees.employees. Managers should make most decisions without consulting Managers should make most decisions without consulting

subordinates.subordinates. Managers should avoid off-the-job social contacts with Managers should avoid off-the-job social contacts with

employees.employees. Managers should not delegate important tasks to Managers should not delegate important tasks to

employees.employees. It is frequently necessary for a manager to use authority It is frequently necessary for a manager to use authority

and power when dealing with subordinates.and power when dealing with subordinates.


Study 2


Subordinate Effectiveness

Power Distance


Study 2 :Draft Results Correlations of all Variables Correlations of all Variables

Top-right triangle matrix is correlations for Taiwan sample , andBottem-left triangle matrix is correlations matrix for China sample.

4.

4.


Study 2 :Draft Results Hierarchical regression analysis –main and moderating effects Hierarchical regression analysis –main and moderating effects


Study 2 :Draft Results Hierarchical regression analysis – moderating effectsHierarchical regression analysis – moderating effects

3.00

3.50

4.00

4.50

5.00

mean-1sd mean mean+1sd

People-Authority

OC

3.00

3.50

4.00

4.50

5.00


People-Authority

low PD high PD

Affective Loyalty to supervisor

Taiwan Sample


Study 2 :Draft Results Hierarchical regression analysis – moderating effectsHierarchical regression analysis – moderating effects

3.50

4.00

4.50

5.00

5.50


People-releated AL(China sample)

OC

low PD high PD


Study 2 Summary Authoritarian Leadership

Correlation between People- related and Task-related AL (+)

People- related AL → Outcome (-) Task-related AL → Outcome (+)

The moderating effects of PD Only for People- related AL There are different pattern between Taiwan (-

)(as predict) and Mainland China sample (+)

Chou@2007Chou@2007

Discussion-Preliminary Finding

The impact o f Globalization on Chinese Leadership Authoritarian Leadership transformed into two

type– focus on People and Task Globalization → organization design, social

development → employees’ power distance (values regarding leaders’ authority)

Organizational type, PD of leader and sub. → the demonstration of AL

The effectiveness of AL and the moderated role of PD on outcome

Chou@2007Chou@2007

Discussion Further Direction

Longitudinal approach Individual level of globalization indictor

individual subjective perception v.s. objective job characteristic

impact on OB such as loyalty, the relationship between employee and organization, organizational identity, identification, the conflict/balance between work and family life…

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Does Globalization Matter : Does Globalization Matter : The Change of Power Distance and Its Effects...

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