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

1. 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

2. Presentation Outline Introduction Research Purposes Theoretical Review Research framework 2 Studies (Results and Summary) Discussion There are six main parts in today presentation��There are six main parts in today presentation��

3. Introduction 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 . By emic approach, leadership researcher found there is a distinct and prevalent leadership style in Chinese organization, can be called paternalistic leadership (PL) . After reviewing all the studies on Chinese leadership since Silin (1976), Farh & Cheng (2000a) defined PL as combines strong discipline and authority with fatherly benevolence and moral integrity couched in a personalistic atmosphere. PL could be broken down into three distinct elements: 2. Among PL, authoritarian leadership means a leader takes rigorous control over subordinates and demands complete obedience from them. Being different from the legitimate power given by position in most of Western organizations, authoritarian leadership�s power reflects cultural characteristics of familism, paternalistic control, and submission to authority in Chinese society 3. However, as the traditional society transforms into an industrial and commercial one, that have somewhat altered the values respect authority submission (Begley, Lee, Fang, & Li, 2002). Therefore, there are two issues on authoritarian leadership worth exploring deeply. By emic approach, leadership researcher found there is a distinct and prevalent leadership style in Chinese organization, can be called paternalistic leadership (PL) . After reviewing all the studies on Chinese leadership since Silin (1976), Farh & Cheng (2000a) defined PL as combines strong discipline and authority with fatherly benevolence and moral integrity couched in a personalistic atmosphere. PL could be broken down into three distinct elements: 2. Among PL, authoritarian leadership means a leader takes rigorous control over subordinates and demands complete obedience from them. Being different from the legitimate power given by position in most of Western organizations, authoritarian leadership�s power reflects cultural characteristics of familism, paternalistic control, and submission to authority in Chinese society 3. However, as the traditional society transforms into an industrial and commercial one, that have somewhat altered the values respect authority submission (Begley, Lee, Fang, & Li, 2002). Therefore, there are two issues on authoritarian leadership worth exploring deeply.

4. Introduction 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 By emic approach, leadership researcher found there is a distinct and prevalent leadership style in Chinese organization, can be called paternalistic leadership (PL) . After reviewing all the studies on Chinese leadership since Silin (1976), Farh & Cheng (2000a) defined PL as combines strong discipline and authority with fatherly benevolence and moral integrity couched in a personalistic atmosphere. PL could be broken down into three distinct elements: 2. Among PL, authoritarian leadership means a leader takes rigorous control over subordinates and demands complete obedience from them. Being different from the legitimate power given by position in most of Western organizations, authoritarian leadership�s power reflects cultural characteristics of familism, paternalistic control, and submission to authority in Chinese society 3. However, as the traditional society transforms into an industrial and commercial one, that have somewhat altered the values respect authority submission (Begley, Lee, Fang, & Li, 2002). Therefore, there are two issues on authoritarian leadership worth exploring deeply. By emic approach, leadership researcher found there is a distinct and prevalent leadership style in Chinese organization, can be called paternalistic leadership (PL) . After reviewing all the studies on Chinese leadership since Silin (1976), Farh & Cheng (2000a) defined PL as combines strong discipline and authority with fatherly benevolence and moral integrity couched in a personalistic atmosphere. PL could be broken down into three distinct elements: 2. Among PL, authoritarian leadership means a leader takes rigorous control over subordinates and demands complete obedience from them. Being different from the legitimate power given by position in most of Western organizations, authoritarian leadership�s power reflects cultural characteristics of familism, paternalistic control, and submission to authority in Chinese society 3. However, as the traditional society transforms into an industrial and commercial one, that have somewhat altered the values respect authority submission (Begley, Lee, Fang, & Li, 2002). Therefore, there are two issues on authoritarian leadership worth exploring deeply.

5. Study 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 Therefore, Therefore,

6. Relative 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 1.According to the findings of past empirical researches, authoritarian leadership produced negative effects on organizational commitment, satisfaction, trust in leader, and so on 1.According to the findings of past empirical researches, authoritarian leadership produced negative effects on organizational commitment, satisfaction, trust in leader, and so on

7. Relative 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 that AL 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 neither totally accept nor entirely reject the traditonality values, but adopt a rational way to fact the traditionality vaues. therefore, the values of submission to authority is neither universal nor disappeared in Chinese society. 2. AL will have two form of transformations leadership behavior that hurts subordinate�s personality and dignity (such as neglecting opinions. ,belittle contribution, serious reprimand .) will be lessened; (2) leadership behavior of image building, didactic behavior high performance standards and will be retained or even reinforced.People neither totally accept nor entirely reject the traditonality values, but adopt a rational way to fact the traditionality vaues. therefore, the values of submission to authority is neither universal nor disappeared in Chinese society. 2. AL will have two form of transformations leadership behavior that hurts subordinate�s personality and dignity (such as neglecting opinions. ,belittle contribution, serious reprimand .) will be lessened; (2) leadership behavior of image building, didactic behavior high performance standards and will be retained or even reinforced.

8. Relative theories and Previous Studies 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� . .

9. Relative 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(+) Deep-rooted tradition or values was always reorganize or adjust creatively to fit the social development . So the people and task should be moderate positive correlated. Deep-rooted tradition or values was always reorganize or adjust creatively to fit the social development . So the people and task should be moderate positive correlated.

10. Relative 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 (-)

11. Relative theories and Previous Studies 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

12. Relative 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 1 Initially, the cultural concept of power distance was applied at the national or societal levels and drew many researchers� attentions to conduct cross cultural and comparative studies. 2. Recently, the individual-level cultural values of power distance have been increasingly played as moderator between leadership/attitudes/perception and subordinate outcomes in organizational behavior research. 1 Initially, the cultural concept of power distance was applied at the national or societal levels and drew many researchers� attentions to conduct cross cultural and comparative studies. 2. Recently, the individual-level cultural values of power distance have been increasingly played as moderator between leadership/attitudes/perception and subordinate outcomes in organizational behavior research.

13. Research Framework

20. 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

21. Study 1 Complement for Org. type

31. 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 (+)

32. 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

33. 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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