Book proposal and book review

145 The China Business Model. Copyright © K. Chang, J. Taylor and KT. Cheng. Published by Elsevier Ltd. All rights reserved.2017

http://dx.doi.org/10.1016/B978-0-08-100750-1.00007-3DOI:

CHAPTER 7

Exploring Manager-Employee- Heterophily (MEH) in US-Owned and Managed Plants in Taiwan Kirk Chang1,2, Julie Taylor3 and Kuo-Tai Cheng4 1HC HRM Consultancy Ltd, Manchester, United Kingdom 2University of Salford, Manchester, United Kingdom 3University of Cumbria, Carlisle, United Kingdom 4National Hsinchu University of Education, Hsinchu City, Taiwan

7.1 INTRODUCTION

Starting from the position of a low-cost manufacturing provider, Taiwan has transformed itself into a major player in international business. The fast-grow- ing markets in Taiwan, enabled by business-friendly regulations and a plentiful workforce, have created opportunities for overseas investors and organizations to set up companies in Taiwan (Chang & Smale, 2014; Zhou, Gao, Yang, & Zhou, 2005). These opportunities have resulted in a situation referred to as Manager-Employee-Heterophily (MEH). MEH refers to a position whereby the owners and/or senior managers of a business are from different ethnic and cultural backgrounds to those they employ, i.e., managers are often expa- triates from overseas parent-companies, while the general workforce typically comprises individuals with permanent Taiwanese re sidency.

Evidence is emerging to suggest that the relationship between American managers and local Taiwanese workers is not always harmonious; with reports of increases in the number of worksite disputes and conflicts (Lee & Jin, 2001; Mannix & Neale, 2005). An increase in discord has been observed and reported by the Taiwanese media, but has attracted little research atten- tion to date—with the exception of Zhou et al. (2005). Given the potential impact of such disharmony on organizational performance, it is concerning that research investigating the impact of MEH and strategies to ameliorate its’ impact have not been forthcoming.

The current research aims to: (1) clarify MEH’s influence on facets of organizational culture; and, (2) use the research findings to support HR practitioners in their management of MEH. MEH is on the increase across

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Asian countries (OECD, 2013), e.g., Carrefour in South Korea, Walmart in Japan, and Siemens in Taiwan, which means that the findings from the current investigation may have applicability beyond Taiwan.

7.2 LITERATURE REVIEW

7.2.1 MEH in Taiwan The rapid economic market growth in Taiwan has created opportunities for overseas investors and enterprises to expand their business and set up companies in Taiwan (Chang & Smale, 2014; Zhou et al., 2005). One posi- tive consequence is the growth of Taiwan’s economy, averaging 7.8% in 2009–12 and predicted to continue at this pace for some time to come (Du, 2011; OECD, 2013). Nevertheless, this level of prosperity is tempered by a growing concern that the relationship between overseas managers and local Taiwanese workers is discordant. Understanding how MEH may impact on the workforce is important for a number of reasons; one of the main advantages of developing our understanding is that it would enable HRM (Human Resource Managers) in developing and implementing strategies to temper any negative effects, and harness positive opportunities.

Based on the extensive work of Hofstede, Hofstede, and Minkov (2010), we intend to examine the particular relationship between expatri- ate managers from the US and Taiwanese employees. Hofstede et al. (2010) described six culturally salient dimensions within their organizational cultural model, these are: Power Distance Index (PDI); Individualism versus Collectivism (IDV); Masculinity versus Femininity (MAS); Uncertainty Avoidance Index (UAI); Long Term Orientation versus Short Term Normative Orientation (LTO); Indulgence versus Restraint (IND). The US and Taiwanese cultures are proposed to differ quite markedly on Individualism versus Collectivism and Long Term Orientation versus Short Term Normative Orientation. Where Taiwanese culture has been observed to display high degrees of interdependence between societal members—long term goal setting and a concomitant respect for tradition, the American culture is typically seem as valuing independence and working on relatively short term goals. The for- mer, it has been argued, foster collaboration whilst the latter competition (Hofstede et  al., 2010). If the managers of a workforce subscribe to one set of values and the employees another, then leadership styles that are not sensitive to value-based differences may generate tension.

Zhou et  al. (2005) reported that many foreign managers may not be aware of the disparity between Western and Chinese work ethics, e.g.,

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political communication style, hierarchical personnel system, and work overtime culture. This may appear superficially innocuous in a world where difference is celebrated, but these differences could strike at the heart of a central value system, and may become significant sources of pressure at work (Mannix & Neale, 2005; Robinson & Dechant, 1997). Empirical research by Chang and Lu (2007) indicated that a failure to become familiar with the Taiwanese work ethic may result in foreign managers being too eager to solicit feedback, something which may lead to feelings of discomfort among a Taiwanese workforce. Similarly, Chang and Parker (2004) observed that US managers tend to employ conflict resolution strategies such as working to resolve difficulties (or problems) in groups, which may generate feelings of unease among their Taiwanese employees. Unlike US managers, Taiwanese managers are more likely to adopt palliative and nonconfrontational approach when dealing with dif- ficulties and problems. Taiwanese management is typically underpinned by a goal of enabling employees to manage difficulties and problems as they arise (Yang & Kuo, 1991). Empirical research to date does indicate some support for the argument that differences on cultural dimensions within the workplace, particularly in the form MEH, may affect the employer– employee relationship (Chang & Smale, 2014).

In order to explore the potential impact of MEH further, the con- cepts of homophily and heterophily warrant consideration. Homophily generally describes the tendency of individuals to bond with similar oth- ers. Homophily is often expressed in the adage “birds of a feather flock together”. Heterophily, in contrast, refers to “a tie in which the two indi- viduals manifest substantial differences on relevant dimensions” (Lord, Lee, & Choong, 2001). In the workplace, homophily refers to the tendency for employees to associate with the colleagues who are similar to themselves in terms of attributes and values (Lazarsfeld & Merton, 1954). It is often seen as a basic organizing principle that limits people’s social worlds in ways that can impact all aspects of their social functioning. It may also determine, for instance, the types of interactions experienced; the attitudes that are formed; and the information that is available to them (McPherson, Smith- Lovin, & Cook, 2001). Lazarsfeld and Merton (1954) further hypothesized two types of homophily: status homophily, in which similarity is based on formal/ascribed status, and value homophily—based on values, attitudes, and beliefs. Using this dichotomy of homophily, Lazarsfeld and Merton sought to explain why managers are likely to be closer with other managers from other departments, rather than their subordinates in the same department.

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At the individual level, people in homophilic relationships may share common characteristics such as: job beliefs, worksite values, work ethics, and the educational background that make communication and relation- ship formation easier (Lazarsfeld & Merton, 1954). To a certain degree, the concept of homophily has explained the occurrence of homogamy, e.g., popularity of collaboration between business enterprises with simi- lar marketing strategies, and unions between new members with the same ethics and beliefs (McPherson et al., 2001; Mollica, Gray, & Trevino, 2003). Several empirical studies have addressed the phenomenon of homophily at work and the evidence demonstrates that it has a significant role to play in organizational success (Burt, 2000), workforce dynamics (Ibarra & Smith- Lovin, 1997), and task accomplishment (Aldrich, Elam, & Reese, 1996). The aforementioned studies of homophily may have different research aims and objectives, but their findings convey a clear message: similarity breeds connection. It seems that homophily acts like a social glue linking individuals who share similar characteristics (McPherson et al., 2001).

At the organizational level, homophily may become a salient factor in management, especially when managers and their employees (subordinates) are from different ethnic backgrounds. According to Gerstner and Day (1994), managers in traditional societies, e.g., Greece and India, tend to pre- fer autocratic management styles with passive subordinates, whereas manag- ers in technologically-developed societies, like Germany, the United States, and Canada, prefer subordinates who are active and participatory. Ralston, Gustafson, Elsass, and Cheung (1992) found that American managers are more concerned with worker productivity, using a task-oriented manage- ment style, whilst Chinese managers are more concerned with maintaining a harmonious work environment, using a relation-oriented manage- ment style. Taken together, these findings provide preliminary support for the proposition that MEH may affect the employer–employee relationship in American-owned enterprises in Taiwan. In particular that cultural dif- ferences on a number of Hofstede et  al. (2010) organizational dimensions may present workplace challenges that are particularly evident where senior managers are predominantly from one culture and the workforce predomi- nantly from another i.e., where MEH is evident.

However, it is important not to ignore the possibility that heteroph- ily may have a potentially useful role to play in the workplace. Where homophilious relationships may be harmonious and enable collaboration, heterophilious ones may promote the dissonance required to generate paradigm shifts and innovation (Lord et  al., 2001). This study intends to explore whether MEH does impact on manager–employee relationships,

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perceived workplace stress, and hypothesized moderating factors with a view to consider how the findings may be used to inform the develop- ment of appropriate HRM strategies.

7.2.2 The Influence of MEH in the Workplace A potential concern arising from heterophily of a hierarchical nature, such as MEH, might be workplace stress emerging from a perceived lack of person-organization fit. Person Organization (P-O) fit is a concept that has been used to describe the congruence between the individual’s goals and the goals of the organization (Cheng, 2015; Parkes, Bochner, & Schneider, 2001). Managers have been found to play a key role in the mis- fit perceptions (Cooper-Thomas & Wright, 2013) and so understanding this process is extremely relevant in contemporary organizations where MEH exists. If management and organizational goals are distinct or in conflict with those of the employee, then that perceived fit between the two might be incongruent and experienced as stressful. The majority of work-related stress theories have been established on the basis of Western values and norms. The interpretation of stress-related behaviors may also reflect Western ideology and cultural imperatives that emphasize the indi- vidual’s need for generic control of their work environment (Chang & Lu, 2007). Scholars generally agree on three assumptions: (1) occupa- tional stress arises from an individual’s subjective perception of their work; (2) controllability equates with a feeling of being able to control environ- mental/working conditions; and (3) a lack of control can result in occupa- tional stress. In their Demand-Control Model, Karasek and Theorel (1979) proposed that the quantity of demands placed on an employee and their decision latitude are two key factors in the formation of stress at work; problems with either quantity or quality of demands can trigger occupational stress.

Evidence suggests that culture influences both what is experienced as stressful and how people respond to stress (Liu, Spector, & Shi, 2007). Therefore, in organizations in which those charged with managing come from a different culture to the majority of those they manage, understand- ing workplace stress would be of particular importance. In Taiwan, e.g., personal control has been found to be a less-significant factor in stress for- mation than in western culture. In Taiwanese culture, more emphasis is placed on obedience and conformity to the organizational environment, with these behaviors and attitudes typically considered to be virtues (Yang & Kuo, 1991). Power distance i.e., the extent to which a culture accepts power differentials among citizens (Hofstede, 1980) is just one example of how a management structure dominated by one culture may generate

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stress in employees from another if understanding is not reached. In the case of US and Taiwanese culture this difference may be exacerbated by the Taiwanese moral principle that dictates respect for older, senior, or those with higher status (Chang & Parker, 2004). Employees thus generally believe that they should not express personal opinions if their social status (e.g., if they are younger, less experienced, of a lower position, or more recently employed) does not qualify them to do so. In short, Taiwanese organizations are typified by a traditional authoritarian and/or paternalis- tic culture rather than a democratic, egalitarian one (Lu, Tseng, & Cooper, 1999), which encourages people to become involved in decision making (Li, Lee, Lee, Chen, & Chi, 2001). American managers, however, may not recognize these subtle differences in values and beliefs, so may inadver- tently create tension and stress in a predominately Taiwanese workforce.

Two hypotheses were developed to examine these propositions: H1: Taiwanese employee manager preference ratings will be higher for Taiwanese managers than American managers. H2: Working for American managers will be rated as more stressful than working for Taiwanese managers.

7.2.3 Proposed Moderators to the MEH-Related Stress The review of empirical studies suggests that MEH may affect the employer–employee relationship in American-owned enterprises in Taiwan. Identifying stress as a potential consequence of MEH is important, but only the first stage in the process from an HR intervention perspec- tive; the second stage is to identify possible moderating factors. Research pertaining to MEH-related stress and manager preference is still in its infancy, but a number of recent studies have suggested that any negative effects resulting from non-Taiwanese management styles may have less of an impact on employees who possess certain characteristics, or who, by virtue of their employment term, have acclimatized to the ways of their managers and organizations (Chang & Lu, 2007, 2009; Hayes, Strosahl, & Wilson, 2004). On the basis of the findings from these studies, two poten- tial moderators emerge:

Psychological acceptance at work. The term psychological acceptance denotes a willingness to experience unpleasant psychological events with- out changing, avoiding, or otherwise controlling them (Hayes et al., 2004). “Unpleasant events” at work may include negative thoughts about col- leagues, unsatisfactory feelings/sensations about the job, or an uncomfort- able organizational culture that could harm employees’ mental well-being

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and work performance (Chang & Lu, 2007). Acceptance-based theories of psychopathology claim that if people are willing to accept unpleasant events and the concomitant negative feelings, they can prevent or alleviate emotional problems such as strain, depression and anxiety (Hayes, Jacobson, Follette, & Dougher, 1994). That is, employees who have higher levels of psychological acceptance at work will be less impacted by MEH-related stress. Bond and Bunce (2003) claimed that psychological acceptance is positively correlated with enhanced job performance, asserting that such acceptance helps people cope with the challenges of the workplace. Research has also shown that employees feel more self-assured and capable the more willing they are to accept negative feelings at work. They also respond to these experiences in a more objective and constructive man- ner (Yeung, 2006). On the basis of these findings, it seems reasonable to propose that psychological acceptance is a promising moderator to MEH- related stress. These findings led to the proposition of a third hypothesis:

H3: Psychological acceptance at work will moderate the stress per- ceived by employees. That is, employees with higher psychological acceptance will feel less

stressed, compared to the employees with lower psychological acceptance. Job tenure. Prior studies have investigated the extent to which job ten-

ure can moderate stress at work, and there are grounds for predicting that stress may vary over the duration of an employee’s employment. Frese and Zapf (1988) described two plausible patterns of change; an employee’s perception of stress may have little initial impact and may begin to cause problems after an extended period of exposure (a relationship Frese and Zapf called the “sleeper effect” model). Alternatively, stress perception may increase steadily with exposure early in an employee’s career, but stabilize at some ceiling afterwards (the “accumulation” model). Employees with longer tenure will, e.g., be more familiar with their company policy, ethics, and worksite (i.e., they are more experienced). Therefore, when problems arise they are more likely to know where to find possible solutions— knowledge that may help to reduce stress accumulation (Chang & Lu, 2009). More experienced employees may also develop strategies to man- age workplace stressors; this would account for higher levels of perceived stress during the early employment phase with a gradual reduction as ten- ure continues (the “adjustment” model; Frese & Zapf, 1988). This model may see employees building up a repertoire of practical, social, and/or psy- chological resources to manage non-Taiwanese management styles, such as support from spouses, task variety, or access to training (Demerouti,

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Bakker, Nachreiner, & Schaufeli, 2001). While the process of adaption is unlikely to be uniform (with some employees leaving the organization or “drifting” into other jobs), selection attrition is likely to be observed, which means that those who “suffer least stay the longest” (Bradley, 2007; Zapf, Dormann, & Frese, 1996). Very likely, the net result of these adaption and selection effects is: the impact of non-Taiwanese management style is likely to be greater earlier—rather than later—in an employee’s job tenure. Thus, our final hypothesis proposes:

H4: Job tenure will moderate ratings of perceived stress. That is, employees with longer job tenure will feel less stressed, com-

pared to the employees with shorter job tenure.

7.2.4 Conceptual Framework To consolidate the research hypotheses and clarify the associations between the research variables, an integrative framework has been developed (see Fig. 7.1). This framework is informative in several ways: (1) management style preference is correlated with stress at work (i.e., posi- tive and negative); (2) the relationship between management style preference and stress at work is moderated by psychological acceptance and job ten- ure; and, (3) employees with higher psychological acceptance and longer job tenure feel less stressed, compared to employees with lower psychological acceptance and shorter job tenure.

7.3 METHOD

7.3.1 Sample and Procedure This research focused on the employees from three US-owned and run plants (pharmacy, food, cosmetics) in X (blinded for the review purposes),

Management style

preference

Job tenure

Psychological acceptance at

work

Stress at work

Figure 7.1 Conceptual framework.

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as per the research grant criteria. Participants were contacted via the per- sonnel managers or secretaries of each company and questionnaires were distributed in booklet form (via corporate email), with a cover-letter assuring anonymity and explaining the voluntary nature of participation. A reminder email was sent out 7 days after the initial invitation with the aim of boosting the response rate. The completed questionnaires were then returned via email to the researchers. Of the 700 copies of questionnaires initially distributed, 515 were returned, of which 474 are useable (response rate = 67.71%). More respondents were received from employees at the pharmacy plant (n1 = 189) and the food plant (n2 = 181), than from the cosmetics plant (n3 = 104). No between-group differences were detected in terms of gender ( χ2 (2) = 2.78, p = .35) or age ( χ2 (2) = 1.50, p = .66). The mean age of participants was 33.0 years old (SD = 6.22). Mean job tenure was 8.4 years (SD = 5.39). Educational levels were stratified with high school education representing 14% of the sample, college graduates 81% and 5% held postgraduate awards. The sample comprised 37% male respondents and 63% female. The participant’s organizational status was distributed as follows: junior posts (2%), mid-level posts (57%), senior posi- tions (31%), and upper management positions (10%).

7.3.2 Measures Three standardized scales were adopted for the measurement:

Management style preference was measured by the management style preference scale (Chang, 2002; 5 items; α = 0.75), which assesses whether Taiwanese managers are more preferable (favorably perceived) by Taiwanese employees. All items are preceded by the stem: Please rate the truth of each statement as it applies to you in your workplace. These items are: (1) Compared to American managers, Taiwanese managers are more suitable to Taiwanese employ- ees; (2) Compared to Taiwanese managers, American mangers more focus on the final output and hence lead to more pressure at work; (3) Compared to American managers, Taiwanese managers better understand our expectation and needs at work; (4) Compared to American managers, Taiwanese managers are more communicable and considerate in organizational policies; and, (5) The workplace is more har- monious when managed by Taiwanese managers. Responses are measured on a 7-point Likert scale (1 = Not true at all, 7 = Very true). Higher scores indi- cate a view that, compared to American managers, Taiwanese managers are rated as more suitable/preferable for Taiwanese employees.

Psychological acceptance at work was measured by the acceptance and action questionnaire (Hayes et  al., 2004; 9 items; α = 0.80), designed to

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assess experiential avoidance, experiential control, psychological accep- tance, and actions taken despite the experience of negative private events. All items are preceded by the stem: Please rate the truth of each statement as it applies to you at work. Samples items are: (1) I am able to take action on a prob- lem even if I am uncertain what the best action is; (2) I am not afraid to face my own feelings; and (3) When I evaluate something negatively, I usually recognize that this is just a reaction, not an objective fact. Responses are measured on a 7-point Likert scale (1 = Completely disagree, 7 = Completely agree). Higher scores indicate that individuals are more willing to accept negative events in their workplace, i.e., higher levels of psychological acceptance.

Perceived stress at work was measured by the perceived stress scale (Cohen, Kamarck, & Mermelstein, 1983; 10 items; α = 0.85), which assesses the degree to which situations in one’s life are appraised as stress- ful. All items are preceded by the stem: In the last month, how often have you………at work. Sample items are: (1) Been upset because of something that happened unexpectedly; (2) Felt nervous and under tons of pressure; and (3) Felt that you could not cope with all the things that you had to do. Responses are measured on a 7-point Likert scale (1 = Never, 7 = Always). Higher scores indicate higher levels of perceived stress at work.

Both second and third scales are originally validated in English, so the questions (scale items) were translated into Traditional-Chinese for the pur- pose of this survey, a back-translation procedure was used to ensure language equivalence and appropriateness. Two bilingual experts in management studies were invited to examine the validity and clarity of scale items, and further revisions were made accordingly.

7.4 RESULTS

Descriptive statistics, correlations, and reliability coefficients of variables are shown in Table 7.1. These reveal that management style preference is negatively correlated with perceived stress at work (r = 0.16, p < .01) and positively correlated with job tenure (r = 0.13, p < .01). Psychological acceptance at work is negatively correlated with perceived stress at work (r = −0.53, p < .001). Job tenure is also negatively correlated with per- ceived stress at work (r = −0.22, p < .01). Jointly, these statistical figures have shown significant inter-relations between the research variables.

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7.4.1 Common Method Variance (CMV) Due to the cross-sectional research design, the likelihood of common method variance (CMV) bias increases (Podsakoff, MacKenzie, Lee, & Podsakoff, 2003). One strategy to combat CMV bias was to adopt a tem- poral separation strategy, collecting data relating to different variables at different times. This strategy was rejected by the HR managers from the three plants because of the implications repeated data collection would have on their workloads. An alternative strategy to combat CMV-bias was required. Reynolds (1982) proposed the inclusion of a social desirability scale to act as a marker or surrogate variable (Reynolds, 1982; Podsakoff et  al., 2003). The proposition is that the surrogate variable would enable the researcher to partial out a social desirability score from each measure and correlate it against the constructs of interest, both with its inclusion, and without it. The purpose of which is to examine whether the surrogate for common method variance (social desirability) explains the variance in the observed relationships. If it does, then CMV has impacted on the find- ings, if not them the impact of CMV may be within tolerable limits.

Having applied the Pearson’s formula to examine the correlation coef- ficients between the marker/surrogate variable and all other variables, the results showed that the correlation coefficients (r): acceptance and action questionnaire (0.21), perceived stress scale (0.16), and management style preference (0.30), were small. None of the coefficients were close to or higher than 0.07, suggesting that CMV bias was not impacting on the relationships in a significant way (Podsakoff et al., 2003).

We also adopted Harman’s single factor test to examine the potential bias caused by CMV (Podsakoff et  al., 2003). All research variables were first merged into one factor, and the results showed poor fit—suggesting that one single factor of merging all variable was inappropriate for data

Table 7.1 Descriptive statistics of the research variables (N=474) Mean SD α 1 2 3

1. Management style preference

5.64 1.03 0.75

2. Psychological acceptance at work

4.06 0.55 0.80 0.05

3. Perceived stress at work

3.86 0.78 0.85 0.16** −0.53***

4. Job tenure* 8.36 5.34 – 0.13** −0.02 −0.22**

Note: *Job tenure is measured by a single item and hence no α (*** p< .001; ** p< .01).

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analysis ( χ2 (350) = 6330.78, p < .001, RMSEA = 0.243, NFI = 0.66, CFI = 0.68, IFI = 0.68, SRMR = 0.198). We then adopted an unmea- sured latent construct method in order to measure the potential influence of CMV, as recommended by Podsakoff et al. (2003). The Chi-square dif- ference test was not statistically significant (Δ χ 2 (1) = 3.64, p > .05) and results were consistent with the findings of Harman’s single factor test. To simplify: the influence of CMV was very slim, thus the research dataset should be accepted for further data analysis.

7.4.2 Analysis of the Measurement Model Confirmatory factor analyses (CFAs) were undertaken on all research vari- ables. The hypothetic model (4-factor) was then compared with alternative models, including one 3-factor model, one 2-factor model, and a 1-factor model (see Table 7.2). CFAs revealed that the hypothetic model provided a sound fit to the data; specifically, the 4-factor model had a significantly bet- ter fit than the first 3-factor model (Δχ 2 = 614.54, p < .001), the 2-factor model (Δχ 2 = 3029.35, p < .001) and the 1-factor model (Δχ 2 = 5157.30, p < .001). Taken together, the hypothetic model represented the best fit to the data (Δ χ 2 (344) = 1173.48, p < .001, RMSEA = 0.07, NFI  = 0.90, CFI = 0.93, IFI = 0.93, SRMR = 0.06).

7.4.3 Hypotheses Testing Management style preference was operationalized to assume that Taiwanese managers (rather than US managers) would be more-favorably perceived—thus deemed more suitable—by Taiwanese employees. Scores significantly higher than the mid-point would indicate a preference for a Taiwanese management style. Statistical analysis revealed that the mean score (management style preference; M = 5.64, SD = 1.03) was signifi- cantly higher than the scale mid-point of 3.50 (MDiff = 2.14, p < .001), indicating that Taiwanese employees generally reported a preference for a Taiwanese management style. Hence, the first hypothesis is supported.

This research is keen to understand the relationship between a pref- erence for Taiwanese managers in an environment where the manage- ment style was not Taiwanese and the perception of workplace stress, i.e., to explore whether working for American managers was perceived to be more stressful (compared to Taiwanese managers). Congruent with expectations, statistical analyses confirmed a positive correlation (r = 0.16, p < .01) between management style preference and perceived stress at work. That is, employees who indicated a preference for a Taiwanese

Table 7.2 Comparison of the model fitness: hypothetic model and three alternative models Model Factors ÷ 2 df ∆ ÷ 2 RMSEA NFI CFI IFI SRMR

Hypothetic model

Four-factor model: management style preference, psychological acceptance at work, perceived stress at work, and job tenure

1173.48 344 0.07 0.90 0.93 0.93 0.06

Model 1 Three-factor model: management style preference and psychological acceptance at work are merged. Perceived stress at work, and job tenure stand alone

1788.02 347 614.54 0.12 0.85 0.88 0.88 0.09

Model 2 Two-factor model: management style preference, psychological acceptance at work, and perceived stress at work are merged. Job tenure stands alone

4202.83 349 3029.35 0.19 0.75 0.78 0.78 0.15

Model 3 One-factor model: dispositional envy, positive- and negative-gossip engagement and employee cynicism are all merged

6330.78 350 5157.30 0.24 0.66 0.68 0.68 0.19

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management style would report perceiving greater levels of stress in a US-owned company; whilst employees who do not indicate a preference for Taiwanese management may report feeling comparatively less stressed at work. In addition, it is important to note that employees did typi- cally agree with the statement that compared with Taiwanese managers, American mangers place greater emphasis on the final output which was observed to add more pressure at work (M = 4.41, SD = 1.12). The mean score was higher than the scale mid-point of 3.50 (MDiff = 0.91, p < .05). Taken together, these findings suggest that working for American manag- ers was perceived to be more stressful than working for Taiwanese manag- ers, lending support to the second hypothesis.

Table 7.3 Summary of moderating analysis (Models) Perceived stress at work

M1 M2 M3 M4

Control variables

Age −0.18** −0.19** −0.18** −0.17** Rank of position −0.02 −0.02 −0.01 −0.01 Educational levels 0.03 0.03 0.03 0.02 Gender 0.03 0.02 0.02 0.03 (ΔR2) (0.05*)

Research moderators

Psychological acceptance at work

−0.54*** −0.45***

Job tenure −0.18** −0.16** (ΔR2) (0.31***) Independent variables Management style preference 0.17** 0.12* (ΔR2) (0.05*)

Moderating effect

Psychological acceptance at work × management style preference −0.24*** Job tenure × management style preference −0.34*** (ΔR2) (0.11**) R2 0.55 0.53 0.44 0.50 Adjusted R2 0.52 0.51 0.43 0.49 F value 30.15*** 30.11*** 26.44*** 29.93*** df 4470 6468 5469 9465

Note: *** p< .001; ** p< .01; * p< .05.

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More stressed

Less stressed

Shorter job tenure

Longer job tenure

Less belief More belief Management style preference

Figure 7.3 Moderating effect of job tenure.

More stressed

Less stressed

Low psychological acceptance

High psychological acceptance

Less belief More belief

Management style preference

Figure 7.2 Moderating effect of psychological acceptance.

Further hypothesis testing, using regression analyses, was undertaken to examine the moderating effect of two proposed moderators (see Table 7.3 for detailed statistics). To closely observe the impact of aforementioned interactions, two line charts are presented to further explain the moder- ating effect (see Figs. 7.2 and 7.3). As it is shown in Table 7.3, psycho- logical acceptance at work (β = −.54, p < .001), job tenure (β = −18, p < .01), and management style preference (β = 17, p < .01) all signifi- cantly predicted perceived stress at work, although with different pre- dicting directions. These findings are largely consistent with the research expectations. To be specific, as it is shown in Fig. 7.2, employees with more belief in management style preference (i.e., people who believe that Taiwanese managers are more suitable to Taiwanese employees) reported feeling more stressed at work, compared to those who with less belief. Yet, employees with lower level of psychological acceptance at work reported

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feeling even more stressed at work, compared to those with a higher level of psychological acceptance. On the other hand, as it is shown in Fig. 7.3, employees with more belief in management style preference (i.e., peo- ple who believe that Taiwanese managers are more suitable to Taiwanese employees) reported feeling more stressed at work, compared to those who with less belief. Yet, employees with shorter job tenure reported feel- ing even more stressed at work, compared to those with longer job ten- ure. Hence, based on these findings, we are of the view that the third and fourth hypotheses should be supported.

7.5 DISCUSSION

As MEH has become a popular phenomenon in workforce across Asian countries (OECD, 2013), our research is keen to examine the concept of MEH and understand its influence in the workplace. Specific hypotheses were developed and supported by the research data. Specifically, Taiwanese employees have indicated a preference for Taiwanese management styles, a relationship was discovered between this preference and stress perception at work, and the two factors identified as possibly moderating the effect of the discrepancy between American and Taiwanese management styles did have the predicted effect. The research findings concur with previous research by Hayes et  al. (2004) and Lazarsfeld and Merton (1954). Their analysis suggested that the stress experience may result from a perception of a poor fit between the values of the workforce and those of the senior management. The level of stress experienced may be reduced over time, as employees adjust and adapt to their job role. Furthermore, those who rated high on psychological acceptance were less likely to score highly on workplace stress perception.

Previous studies have explored the impact of management style on employees (Gerstner & Day, 1994; Ralston et al., 1992) and described the disharmony between non-Taiwanese managers and Chinese employees (Zhou et  al., 2005). Our findings compliment and extend these in sev- eral meaningful ways: they affirm that the majority of Taiwanese employ- ees do feel that Taiwanese managers are more suitable for them across a wide range of industries and diverse work contexts (e.g., participants are recruited from US-owned and run pharmacy, food, cosmetics plants in Taiwan). This preference may be predicted in terms of value homophily theory. The participants reported a number of motivations for manager ethnicity preference. These included: (1) Taiwanese employees feel that

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American managers place too much emphasis on operational procedure and outcomes, which is demanding and stressful; (2) companies with Taiwanese managers enjoy a more-harmonious and less-competitive work climate; (3) Taiwanese managers are seen as having a better understanding of their subordinates’ needs and expectations. These reasons concur with the organizational values discussed earlier in the chapter, e.g., whereby the harmony and collectivistic values associated with Taiwanese employees are not evidenced in the competitive, individualistic environment encouraged by American management styles. The power distance expectation may also be compromised in an American-led organization, where employees need to know their place but are simultaneously expected to make contribu- tions to decision making. Uncertainty avoidance may be higher in this situation because a clear access to career pathways is obscured and inac- cessible—as a consequence of little opportunity for either status or value homophily (Brass, 1995).

Our research has identified important individual moderators that can alter the relationship between a preferred management style and work- place stress. Specifically, we have found that employees with a higher psy- chological acceptance to negative events are better protected from feeling stressed and this finding partially corroborates results from prior studies. For instance, proactive and nonaversive attitudes are found to help indi- viduals re-evaluate stressors and devise effective coping strategies (Bond & Bunce, 2003). Our research findings have provided preliminary support for the view that psychological acceptance may help people to regulate emotions and respond to stressors in a more adaptive manner, thus coping better with stress (Hayes et  al., 1994), and that psychological acceptance may also result in improved job performance. Although, more research is necessary toward psychological acceptance and the nature of work perfor- mance (Hayes et al., 2004).

Our research has also found that employees with longer job ten- ure feel less stressed. Experience does appear to help, as more-seasoned Taiwanese employees can better appreciate different management styles, whereas those with shorter tenure may be unfamiliar or uncomfortable with an American management style. Conclusions here are tentatively drawn, however, because studies have shown that other factors such as age, experience, gender and level of education could act as cultural amplifiers, and, if this were the case, then job tenure alone may only provide part of the moderation narrative. It could be, e.g., that those who have had experience of Taiwanese managers and then moved to organizations with

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American managers may have found this adjustment more difficult than those new to the workplace and who have little or no previous history of being managed in an employment context. Alternatively, new recruits straight from education may require a different induction program to that offered experienced workers from Taiwanese owned-and-run companies. Moreover, those with considerable experience within the American-run companies might make excellent mentors and assist in the induction pro- cess. In other words: although job tenure clearly moderates the relation- ship between management style preference and stress, it is an area that warrants further investigation.

7.5.1 Implication of the Research Findings Our research does not seek to emphasize difference in order to be pessi- mistic; the purpose is to explore the phenomenon of MEH and analyze its potential influence in the workplace. Moreover, our research has presented an opportunity to discuss the extent to which ethnic homophily might be observed, even when the potential for homophily is additionally compro- mised by status. The final, and possibly most important, goal is to use the findings to develop ways of working that may alleviate the impact of dis- cord generated by a poor fit between manager and employee values, both in the immediate and longer term.

We found that, among Taiwanese employees, stress may arise from divergent values in the two systems; employee values may be shared amongst the majority of the workforce but not by senior managers, so increasing uncertainty and a lack of role clarity. In the immediate term we would suggest that, as a minimum, tailor-made induction programmes should be arranged for foreign managers and new employees. New man- agers can be inducted into the values of the workforce and can also be made aware of the potentially negative effects of certain management styles. The employees would benefit from an induction into the organiza- tion which explained the differences, identifies progression routes within the organization and assigns mentors with long service (and possibly high levels of psychological acceptance).

Globalization brings the promise of significant wealth and prosperity to Taiwan, so we propose that a longer-term and further-reaching policy measure would see the Taiwanese education system include a focus on management styles rooted in non-Taiwanese cultures. This could be intro- duced as part of the wider curricular or through vocational workshops, but the purpose would be to familiarize students with diverse foreign

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management styles and prepare them for today’s culturally diverse work- places. These workshops can also potentially help students establish a cog- nitive buffer—alleviating the impact of a foreign management style on stress formation.

7.5.2 Research Limitations and Recommendations In this research, participants were only recruited from American owned- and-run enterprises in Taiwan, as per the research grant criteria. It would be ideal for more companies i.e., owned and run by managers from other cultures, to be compared and differences examined. These diversity factors may generate a more nuanced interpretation of MEH. There might be a lot to learn by examining differential effects on the manager–employee relationship, and exploring potential moderating factors by adopting a wider lens. Moreover, for the purpose of research, all American manag- ers are seen as operating a similar management style, which is of course an artificial simplification. The similarities assumed are those that Hofstede et  al. (2010) refer to as broad cultural norms, so are regularly applied in this manner. Despite the regularity of the application, it remains a limita- tion and is subject to criticism, as one may claim that such categorization (American vs Taiwanese managers) does not account for sample hetero- geneity. Moreover, individual differences between managers cannot be scrutinized. Despite this, our research aimed to explore a relatively new workforce phenomenon in Asian countries, so a macro perspective and country-wide approach was an appropriate place to start.

The MEH phenomenon has been found in American owned-and- run enterprises in Taiwan. It would be ideal if a reverse-setting research could be conducted, i.e., to examine whether the MEH phenomenon exists in Taiwanese-owned and run enterprises in the United States. Furthermore, self-assessed data are mainly based on individual subjective experiences, which may reflect the reality an individual observes rather than any underpinning reality (Podsakoff et  al., 2003). In our research, stress levels were measured by self-report; respondents were asked to iso- late their perception of workplace stress independently of other sources of stress—this is difficult and artificial and so may have implications for data interpretation. Further research may offer alternative explanations for the associations discovered. Finally, the interactions between vari- ables, e.g., job tenure, management style preference, should be interpreted with caution, as the cross-sectional design cannot explain the direction of interactions. Future studies may adopt an experimental approach with

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a counter-analysis procedure, so that the interaction of variables can be better clarified (Liakhovitski, Stone-Romero, & Jaccard, 2008). Finally, throughout the paper there have been allusions to the possibility that MEH may have positive implications for organizations. There is a lack of research in this area but this author believes it is worthy of future inves- tigation; surrounding oneself with likeminded individuals may be com- fortable and lead to harmonious environments, but may ultimately stifle innovation and organizational transformation.

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