Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 Impact of a Global Leadership Development Program on German and Chinese Managers1, 2 Jingjing Wang* It is generally understood that some effective leadership behaviors of Asian managers differ from those of Western managers (GLOBE study). It has also been debated controversially whether Asian learners can benefit from Western learning approaches. Taking these two aspects into consideration, this study examines whether a global leadership development program from Western countries has as much impact on Chinese managers as on German managers. This empirical study is conducted within one global corporation originating from Germany. The data (N =193 at t1 and N= 162 at t2) were collected from Germany and China between 2009 and 2011. To meet the high standards of cross-cultural study, the instruments used in this study have undergone cross-cultural equivalence examinations via MDS and SEM. Based on Schwartz’s four higher order values, a cultural value comparison is conducted. The result shows that the Chinese leaders working in the Western company hold significant different values to the German managers in Germany. The impact of the global leadership development program on German managers and Chinese managers is compared by using effect sizes and statistical significance tests (ANCOVA). The investigation involved three different rating perspectives: leaders’ self-rating, direct-reports’ rating and superiors’ rating. In terms of gaining knowledge, both the German and the Chinese managers benefited from the training. Regarding the behavioral transfer and leadership results, the effect sizes of the different leadership behaviors trained in the development program vary from small to large depending on the nationality, the perspectives of the raters and the leadership behavior dimensions. Based on the core results of the study, implications for the globalization of leadership development are discussed. Field of Research: Strategic Human Resource Management, International Business and Leadership 1. Introduction The world is getting more and more interconnected and global. This interconnection among countries and the occurrence of globalization open up a good deal of opportunities for all of us, but at the same time they also generate challenges. One of the challenges is the acknowledgement of the different cultural values, practices and degree of refinement in different parts of the world (House, 2004). Facing these differences, the practitioners of leadership development have first focused on the conceptualization of global leadership development programs in the last decade. However, the concepts have not been evaluated sufficiently. *Dr. Jingjing Wang, Leadership Trainer, Consultant and Researcher at Daimler Corporate Academy and Human Resource Management and Leadership at Faculty of Law, Business and Economics, University of Bayreuth, Germany. Email: jingjing.wang@gmx.de Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 Concurrently, the Chinese economy is becoming increasingly indispensable. Zhang et al. (2008) concluded that Chinese culture has a significant influence on its people management practices, while the Western management theories have a great impact on task-related operations. In addition, a number of scholars have found that Chinese learners learn differently than Western learners. In the Western world, the situated and constructivist learning principles have been evaluated as effective learning principles. Until now, Chinese learners have been described as being rote learners or, in other words, memory learners (Kennedy, 2002). Facing the differences between China and the Western World, the striking question is not only how the Western world should react to China (Dhanaraj and Khanna, 2011), but also how should China respond to the Western world. Therefore, along with the growth and the economic transition of China, it is becoming essential for China and the Western world to get to know each other. Following these thoughts, this study will empirically explore the impact of a Global Leadership Development Program (GLDP) on German and Chinese managerial leaders. 2. Literature Review Over the past 100 years, many leadership theories have been developed in North America and Western Europe. Scholars have celebrated these results and practitioners worldwide are learning from and applying them. However, these theories may embody only the Western point of view (Ayman and Korabik, 2010). An increasing number of pioneering scholars have become aware of this situation and have begun to reflect on the generalizability of the Western leadership theories. Hofstede (1993) highlighted three idiosyncrasies of American management theories which are not necessarily shared by other cultures: an emphasis on market processes, an emphasis on the individual, and an emphasis on managers rather than workers. Den Hartog, House, Hanges, Ruiz & Dorfman (1999) referred back to the characteristics of North American leadership theories mentioned by House (1995): “focusing on individualistic rather than collectivistic values; emphasizing assumptions of group incentives; stressing follower responsibilities rather than rights; assuming hedonistic rather than altruistic motivation; and assuming the centrality of work and democratic value orientation” (ibid: 227). Similarly, Westwood and Chan (1995) argued that the leadership concepts stemming from North America represent individualism, assertiveness and independence. They “reflect a particular ideology in which a tension between espoused democratic and participative principles, and inherent power inequalities is managed” (ibid: 70). Westwood and Chan (1995) addressed that leadership varies in different contexts and suggested that “headship” is “a more encompassing and contextually meaningful term in East Asia” (ibid: 70). On the one hand, “headship” reflects the family-based tradition of East Asia; on the other hand, it symbolizes legitimized power. Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 The GLOBE study derived a large amount of knowledge regarding the cross-cultural leadership research community based on the findings from 62 societies. The results have shown that the social-cultural difference has a much larger influence on organizational practices than industrial sector does (Brodbeck, Hanges, Dickson, Gupta & Dorfman, 2004). Kühlmann (2008) examined the applicability of various leadership theories in an international context and compared these with empirical findings. The conclusion can be drawn that most leadership theories could be used in different cultures, however, desired leadership behaviors differ from culture to culture. Wang (2015) summarized these differences between the behaviors of Chinese and Western managers, refer to Table 2.1: Table 2.1: Comparison of Chinese and Western approaches to management and leadership Chinese Approaches Western Approaches Place more value on collective action Try to maintain harmony Tend to be more aligned with individual behavior Try to accommodate dissent Tend to reject impartial and non-partisan Support more participative and nonapproaches partisan approaches Have more unequal distribution of power Have less unequal distribution of power Epitomize a concept of “headship” Epitomize a concept of “leadership” Have higher level of tolerance for ambiguity Have less tolerance for ambiguity Underline long-term relationships with followers Emphasize the influence of the external environment Less emphasis on universal laws and principles Strive for implicit exchanges Relationships fade over relatively short periods Solicit “one best approach”, irrespective of the circumstances Tend to create general principles for a variety of circumstances Strive for explicit exchange Participative Leadership is “nice to have” Participative Leadership is a “must have” Support subordinate by providing ideas and Support subordinate by delegating control responsibility Address altruistic motivation of followers Address individual motivation of followers Tend to followers show responsibility towards Tend to show influence towards followers To develop a leadership development program applied globally, universally effective leadership should be chosen and trained. In the course of the discussion regarding universally effective leadership, Bass (1997) proposed that transformational leadership Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 involves virtually universal leadership behaviors. He highlighted the universality of the transactional transformational leadership paradigm by referring to evidence gathered from all continents except Antarctica. Based on thei research results, the GLOBE study also further attested to the universality of (charismatic) transformational leadership as an effective leadership behavior across cultures. This leadership behavior is also called value-based leadership in the GLOBE study. The learning approach is also an indispensable factor of leadership training design and have a dramatic impact on the transfer of training content. In the field of off-the-job management and leadership development, a variety of constructivist training methods have been developed in the West, such as: Role Playing and Discussion (Moreno, 1955); Games & Simulations (Leavitt and Bass, 1964) and Reflection (Boud, Keogb & Walker, 1994); Action Learning (Marquardt, 2004) and Feedback (Frese et al., 2003) and Problem-Based Learning (PBL) (Dochy, Segers, Van den Bossche & Gijbels, 2003). By using these methods, practitioners “facilitate” the learning of participants, instead of “teaching” the participants. In the view of constructivists, “teaching” is used more often within formal educational systems such as in schools or universities. It connotes strong instructional learning characteristics and the receptive position of the learners. In practice, particularly in the field of human resources development, the terms “training” and “facilitating” are more commonly used. “Facilitating” implies that the learners have large responsibility and room for self-direction. “Training” is used when the level of selfdirection is somewhere between “teaching” and “facilitating”. If a practitioner regards herself or himself as a “facilitator”, it likely means that she or he wishes to emphasize that the learners should have a constructivist learning environment and that the methods mentioned above will be applied. “Trainers” may use both instructional and constructivist learning principles. Some have also argued that “facilitating” is one of the necessary competencies of trainers (Stolovitch and Keeps, 2011). In this study, the terms “trainer” and “facilitator” are used interchangeably. For Chinese learners, the constructivist learning principles are not well-known. However, an increasing number of studies have shown that constructivist learning principles can also be effective for Chinese adult learners, even though more evidence is needed. (Kennedy, 2002; Watkins, 2007). The research objective of this study - the GLDP - applied constructivist learning principles. It can be expected that the Chinese adults/managerial leaders will be able to adopt this learning approach. The impact of training has been increasingly considered and studied. Among the various discussions on what the measurement of the training impact involves, in the late 1950s, Kirkpatrick proposed four levels of measurement (Kirkpatrick, 1959; Alliger and Janak, 1989). The four levels are: Reaction, Learning, Behavior and Results. Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 A couple of decades later, Collins and Holton (2004) developed and defined six outcome categories for their meta-analyses of managerial leadership development programs (refer to Table 2.2). Table 2.2: Six outcome categories (Collins and Holton, 2004: 225) Subjective Objective Principles, facts, attitudes, and Principles, facts, attitudes and Knowledge skills learned during or by the skills learned during or by the end end of training as of training by objective means, communicated in statements of such as number of errors made or opinion, belief, or judgment number of solutions reached, or by completed by the participant or standardized test trainer Measures that evaluate Measures that evaluate changes Behavior changes in on-the-job behavior in on-the-job behavior perceived /Expertise perceived by participants, or by participants, or global global perceptions by peers or a perceptions by peers or a supervisor supervisor that evaluate Tangible result, such as reduced System Results Measures changes in on-the-job behavior costs, improved quality or quantity, /Performance perceived by participants, or promotions, and reduced number global perceptions by peers or a of errors in making performance supervisor ratings Collins and Holton (2004) reported the different effect sizes between the subjective measurement and objective measurement in terms of the expertise improvement and assumed that the raters, such as superiors and subordinates, can detect the change after the training easier than the participants themselves. The low convergence of multi-raters in performance rating has hinted to scholars researching the training effect that the effect size may also differ according to different rating sources (Taylor et al., 2009). To focus on the rating differences of the multi-sources, Taylor et al. (2009) conducted a meta-analysis of 107 studies and studied the effect size of managerial training based on four rating sources (self, superior, peer and subordinate) and revealed that the population effect size estimates of self-rating have the highest score (δ = .64), superior and peer rating are in the middle (δ = .53 and δ = .26 respectively) and the subordinate rating shows the lowest score (δ = .13). Moreover, an additional subset of 14 studies was meta-analysed separately. These 14 studies have included all the four rating sources (self, superior, peer and subordinate). Similar results have been achieved. Self-rating produced the largest transfer effect (δ = .52), superior and peer rating are in the middle again (δ = .33 and δ = .34 respectively) and subordinate rating had a substantially smaller effect (δ = .004). Besides the factors inflating self-rating like in the performance rating, “trainees may exaggerate the true impact of training because [...] to indicate otherwise would reflect poorly on themselves, on training staff, or both” (Taylor et al., 2009: 106). Therefore, in light of the concern that self-rating is biased, researchers should avoid relying on the trainee’s self-rating (Eden, Geller, Gewirtz, Gordon-Terner & Inbar, 2000). Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 Before the impact of the GLDP in China and in Germany is analysed, it is necessary to have a clear understanding of managerial values across the two different samples: the Chinese leader sample and the German leader sample. There is no reason to believe that country or nationality is a “proxy” for cultural values (Gerhart and Fang, 2005; Schaeffer and Riordan, 2003). The core question is whether the Chinese leaders’ values really differ from German leaders’ values, as claimed by many previous studies. Schwartz (1994) showed that the values of Hierarchy and Mastery in China are much higher than in German culture. By applying the SVS, Ralston et al. (1996) discovered that among managers from four countries (USA, Russia, Japan and China), the Openness to Change score of American managers is the highest, while Chinese managers show the lowest (Ralston et al., 1996). Based on the previous results from other scholars, the following hypotheses are developed: HA: The values of German and Chinese leaders differ. HA1: The German leaders’ score on Openness to Change is higher than the Chinese leaders’ score and the German leaders’ score on Conservation is lower than the Chinese leaders’ score. HA2: The German leaders’ score on Self-enhancement is lower than the Chinese leaders’ score and the German leaders’ score on Self-transcendence is higher than the Chinese leaders’ score. The transactional transformational leadership paradigm has been considered to be a virtually universally applicable concept (Bass, 1997). Felfe (2006) provided evidence that transformational leadership correlates positively with these three success criteria, even in Germany. Based on these aforementioned presuppositions, the following hypotheses are developed: HB1: Before the GLDP, the higher the German direct-reports score the leaders for Transformational Leadership, the higher they will score the leaders for success criteria: Extra Effort, Effectiveness and Satisfaction. The Transformational Leadership is a virtually universal model and has been shown to be applicable in China as well; therefore, the hypothesis HB1 effects are also expected from the Chinese sample. HB2: Before the GLDP, the higher the Chinese direct-reports score the leaders for Transformational Leadership, the higher they will score the leaders for success criteria: Extra Effort, Effectiveness and Satisfaction. Since the superiors’ perspectives should show objective advantages as well, the superiors’ ratings are also expected to show similar results: Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 HB3: Before the GLDP, the higher the German superiors score Transformational Leadership, the higher they will score the leaders for Extra Effort, Effectiveness and Satisfaction. HB4: Before the GLDP, the higher the Chinese superiors score Transformational Leadership, the higher they will score the leaders for Extra Effort, Effectiveness and Satisfaction. the leaders for success criteria: the leaders for success criteria: For the success criteria, the self-perspective bears the risk of having an above-average effect. The other-perspective is considered as more valid (Rathgeber, 2005). Therefore, the rating of direct-reports and superiors should be seen as more convincing and appropriate. The self-perspective is not examined. According to the Transformational Leadership theory, the learning goals of the GLDP provided above can be classified into two different categories, as shown in Figure 2.1: Figure 2.1: Link between the contents of GLDP and the transformational leadership theory Figure 2.1: Link between the contents of GLDP and the transformational leadership theory Supporting intellectual motivation Seeking new solutions to the problem Intellectual Stimulation Gaining a holistic perspective Transformational Leadership Listening to individuals attentively Considering individual differences Individualized Consideration Considering individual needs of leadership Based on previous research results, assumptions regarding the impact of the GLDP are proposed at the learning/knowledge level, the behavioural transfer level and the leadership result level based on different perspectives. HC1: The German leaders who attended the GLDP will score better in a knowledge test than the German leaders who did not attend. HC2: The Chinese leaders who attended the GLDP will score better in a knowledge test than the Chinese leaders who did not attend. HC3: According to the leaders’ self-perspective, after the training, the German leaders who attended the GLDP show higher scores for Individualized Consideration and Intellectual Stimulation respectively than the German leaders who did not attend it. HC4: According to the leaders’ self-perspective, after the training, the Chinese leaders who attended the GLDP show higher score for Individualized Consideration and Intellectual Stimulation than the Chinese leaders who did not attend it. Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 HC5: According to the direct-reports’ perspective, after the training, the German leaders who attended the GLDP show higher score for Individualized Consideration and Intellectual Stimulation than the German leaders who did not attend it. HC6: According to the direct-reports’ perspective, after the training, the Chinese leaders who attended the GLDP show higher score for Individualized Consideration and Intellectual Stimulation than the Chinese leaders who did not attend it. HC7: According to the superiors’ perspective, after the training, the German leaders who attended the GLDP show higher score for Individualized Consideration and Intellectual Stimulation than the German leaders who did not attend it. HC8: According to the superiors’ perspective, after the training, the Chinese leaders who attended the GLDP show higher score for Individualized Consideration and Intellectual Stimulation than the Chinese leaders who did not attend it. HC9: According to the direct-reports’ perspective, after the training, the German leaders who attended the GLDP show higher score for Extra Effort, Effectiveness and Satisfaction than the German leaders who did not attend it. HC10: According to the direct-reports’ perspective, after the training, the Chinese leaders who attended the GLDP show higher score for Extra Effort, Effectiveness and Satisfaction than the Chinese leaders who did not attend it. HC11: According to the superiors’ perspective, after the training, the German leaders who attended the GLDP show higher score for Extra Effort, Effectiveness and Satisfaction than the German leaders who did not attend it. HC12: According to the superiors’ perspective, after the training, the Chinese leaders who attended the GLDP show higher score for Extra Effort, Effectiveness and Satisfaction than the Chinese leaders who did not attend it. Because of the above-average effect, the leaders’ self-rating is not considered as appropriate for evaluations at the result level. According to the direct-reports’ perspective and superiors’ perspective, the above assumptions are proposed. 3. The Methodology and Model To test the hypotheses, the extent of impact of the GLDP on the learning/knowledge level, the behavioural transfer level and the leadership result level, quasi-experimental designs are used. Four research groups are identified based on the country names and abbreviations of Experimental (E) and Control (C) in the design: • (G)erman (E)xperimental Group (GE hereafter) • (G)erman (C)ontrol Group (GC hereafter) • (C)hinese (E)xperimental Group (CE hereafter) • (C)hinese (C)ontrol Group (CC hereafter) Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 Finally, different quasi-experimental designs are chosen for measuring the different levels of impact. For the Learning level, the design used control groups but no pre-test. This design is also called a Post-test-Only Design With Non-equivalent Groups (Shadish et al., 2002). At the level of Behavioural Transfer and Leadership Results, the design included the pre-tests for all the groups. Shadish et al. (2002) emphasized the control group is of minimal advantage, unless a pretest is also conducted for both the control group. Therefore, in this study, pre-tests (t1) are conducted both for the experimental and the control groups. In psychological, educational and behavioural treatment research, this type of design is called pre-test-post-test with control (PPWC) (Carlson and Schmidt, 1999). Moreover, to capture different perspectives regarding behavioural transfer, two additional rater categories are also included. One is the direct-reports of the leaders; the other is superiors of the leader. These two additional ratings will deepen the understanding of leadership training transfer. Schwartz Value Survey (SVS), Multifactor Leadership Questionnaire (MLQ) and a Knowledge Test are used as instruments. Van de Vijver and Leung (1997) proposed that bias statistics should be examined and reported in cross-cultural studies, because item accuracy is necessary for the observed cross-cultural differences. Moreover, all of the applied instruments should possess equivalence as a property of a specific cross-cultural comparison. For the SVS, Multidimensional Scaling (MD) is used. The SVS was developed on the basis of exemplary cross-cultural research methodology (Van de Vijver and Leung, 1997). Replicating the same method to examine equivalence is considered adequate. Structural Equation Modeling (SEM) is chosen to examine the construct equivalence of the Multifactor Leadership Questionnaire (MLQ). For more details, refer to (Wang, 2015). Data collection consisted of two cycles for each assigned group. In the first cycle the team leaders, their superiors and one direct-report were asked to join the research and to fill out the online questionnaires (SVS and MLQ) at t1. For both control groups, e-mails were used to recruit subjects with two requirements. One was that they should fill out the SVS and MLQ if they were interested in participating in the research. The second requirement was that they should nominate one of their directreports to the researcher via e-mail, so that the researcher could send further questionnaires to the direct-reports as well. In order to encourage participating, the researcher promised to create personal value and leadership profiles for them based on the questionnaires. For both experimental groups, five German training groups and three Chinese training groups were asked to participate in the research by filling out the SVS and MLQ. Additionally, the researcher visited the training groups personally and asked for nominations for a direct-report. Similarly, the researcher promised to send the personal value and leadership profiles based on the questionnaires. Subsequently, the researcher asked the participants’ superiors and the individually nominated direct-report to join the research and to fill out the corresponding questionnaires, whenever the leaders themselves agreed to participate in the research. Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 For the second cycle, 7 months later (t2), the subjects received once again the corresponding questionnaires from the researcher. Since the first three months are dedicated to the leadership training, this means that four months after the training, the subjects of experimental groups were asked to fill out the MLQ again. The subjects of the control groups were asked to fill out the MLQ again and to conduct the knowledge test online. Table 3.1 – 3.3 show the dynamic of the leaders’ responses for the three questionnaires (SVS and MLQ). The participants of the knowledge test are not considered separately. Table 3.1: Dynamics of subject participation in terms of leaders’ response Groups Requeste Participation t1 in Participation t1 in Participation t2 d SVS MLQ MLQ GE 79 76 46 45 GC 53 50 40 no need CE 48 46 34 34 CC 50 49 42 no need in Table 3.2: Dynamics of subject participation in terms of direct-reports’ responses Groups Requeste Participation t1 in MLQ Participation t2 in MLQ d GE 79 50 46 GC 53 49 45 CE 48 38 32 CC 50 45 41 Table 3.3: Dynamics of subject participation in terms of superiors’ responses Groups Requeste Participation t1 in MLQ Participation t2 in MLQ d GE 79 54 40 GC 53 44 36 CE 48 38 30 CC 50 40 31 4. The Findings To test the hypothesis HA, a Linear Discriminant Analysis (LDA) is applied. The results show that the hypothesis A (Wilks’ Lambda = .678; p < .000) can be confirmed, which means that using underlying dimensions as independent variables, the values of the German leaders and the Chinese leaders differ from each other. Table 4.1: Tests of equality of group means of testing hypothesis HA Independent Variables Wilks’ Lambda F df1 df2 Openness to Change .921 18.274 1 213 Conservation .722 82.072 1 213 Self-enhancement .999 .246 1 213 Self-transcendence .996 .814 1 213 Sig. .000 .000 .621 .368 Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 German and Chinese leaders place different levels of importance on each of the four values. German leaders value Openness to Change more than Chinese leaders; Chinese leaders value Conservation more than German leaders. The hypothesis HA1 is confirmed. The hypothesis HA2 is rejected because the p values of the significance testing are larger than .05. This means that German leaders do not value Self-enhancement less than Chinese leaders and German leaders do not value Self-transcendence more than Chinese leaders. Before the correlation analysis is conducted, the normal distribution of the variables has been tested. While the Transformational Leadership in both samples has a normal distribution, neither Extra Effort nor Effectiveness and Satisfaction have a normal distribution. Therefore, the Spearman Correlation is conducted (Field, 2005). First of all, from the direct-reports’ perspective, the German sample provides evidence that Transformational Leadership correlates significantly with Extra Effort, Effectiveness and Satisfaction. The correlation coefficients are .735, .757 and .729 respectively. The hypothesis HB1 is confirmed. The Chinese sample provides evidence that Transformational Leadership correlated significantly with Effectiveness and Satisfaction and the correlation coefficients are .900 and .784 respectively. The hypothesis HB2 is also confirmed. From the Superiors’ perspective, the correlation coefficient ranges from .511 to .770 in the German sample; in the Chinese sample, it ranges from .594 to .786. Therefore, the hypotheses HB3 and HB4 are confirmed as well. These results suggest that Transformational Leadership can be considered as universally effective leadership, even though the Extra Effort from the Chinese direct-reports’ perspective and the Satisfaction from the German superiors’ perspective due to the low reliabilities are not tested. On the learning/knowledge level, based on the ANOVA test, it can be concluded that both the German participants and the Chinese participants have gained some new knowledge. Both the German and the Chinese managerial leaders who attended the GLDP have obtained significantly higher scores for the leadership principles taught in the program than the German and Chinese leaders who did not attend the GLDP. Since this knowledge test is a post-test with control group design (ESPOWC), the following formula is applied to calculate the effect sizes (Carlson and Schmidt, 1999: 852): d = (T2 −C2)/ST2C2 = ESPOWC The pooled standard deviation can be calculated based on the following equation: St2c2 = ((nt −1)S t22 + (nc −1)S c22 / (nt + nc −2) )0.5 The results show that, both in Germany and in China, larger effect sizes are achieved: d = .86 in Germany and d = .65 in China. This is convincing evidence of the impact of the GLDP on the learning level for decision-makers of the leadership development. Even though the effect size in Germany is larger than in China, based on the ANOVA Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 significance test, the score of the German sample is not significantly higher than the score of the Chinese sample. On the behavioural level, the results derive from ANCOVA and effect sizes too (refer to Table 4.2), because it is not unproblematic to evaluate the research results only based on the significant test. Many scholars have suggested the effect size as an indicator. For the measurement of effect size, the following formula is used (Carlson and Schmidt, 1999): d = [(T2 –T1) – (C2 –C1)]/ST1C1 = ESPPWC and St1c1 = ((nt −1)S t21 + (nc −1)S c21 / (nt + nc −2) )0.5 Table 4.2: Overview of effect sizes (ESPPWC) and ANCOVA results Measures Germany China Leaders’ Direct- Superiors’ Leaders’ DirectSuperiors’ Selfreports’ Rating Selfreports’ Rating rating Rating rating Rating Behavioural Transfer Intellectual Stimulation Individualized Consideration .02 .17 - / .15 .18 .41 .01 .11 .39* Leadership Results Extra Effort .05 .62* .62* Effectiveness .02 .55 .17 .41 Satisfaction / / .24 - means the reliability coefficient is too low to conduct further calculation. / means that the score has decreased in the experimental group, therefore the effect size is not calculated. italic effect size means that the preliminary assumptions of ANCOVA of this scale have been violated. For the Chinese Leaders’ Self-rating, the scale Individualized Consideration has been examined. The Chinese leaders who attended the GLDP do not have a significantly higher score than the Chinese leaders who did not attend the GLDP. Based on the German Direct-reports’ Rating, the trained leaders do not have a significantly higher score than the untrained leaders for Intellectual Stimulation or for Individualized Consideration. This is the same situation with the Chinese Direct-reports’ Rating. Based on the Chinese Superiors’ Rating, the Individualized Consideration of the leaders who have attended the GLDP is significantly higher than that of the leaders who did not attend it, but the Intellectual Stimulation is not. In Germany, no significant result emerged. In addition, the effect sizes have been calculated as well (Carlson and Schmidt, 1999; Bortz and Doering, 2006). As can be seen in Table 4.2., from the Leaders’ Self-rating, the Individualized Consideration of the trained Chinese leaders just reaches a very small effect size (d = .01), which can also be ignored. Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 From the direct-reports’ perspective, the trained German leaders also show small effect sizes (d = .02 for Intellectual Stimulation, d = .18 for Individualized Consideration). Due to the decrease of the score at t2, the effect size for the trained Chinese leaders with regard to Intellectual Stimulation is not calculated, while the effect size with regard to Individualized Consideration reaches d = .11. It has been pointed out that the relatively larger effect size of German leaders for Individualized Consideration (d = .18) also benefited from the decrease of the control group; otherwise the effect sizes would be slightly lower. It can be concluded that both in Germany and in China, the effect sizes are smaller than expected. From the Superiors’ Rating, the trained German leader sample reaches effect sizes of d = .17 for Intellectual Stimulation and d = .41 for Individualized Consideration respectively. Similarly, the trained Chinese leaders sample also shows similar effect sizes of d = .15 for Intellectual Stimulation and d = .39 for Individualized Consideration, even though both also slightly benefited from the score decrease of the control group. Interestingly, the scale Individualized Consideration in both countries has received higher effect sizes than the scale Intellectual Stimulation and both from the direct-reports’ perspective and the superiors’ perspective. This phenomenon may be due to the fact that it is easier to transfer the idea of Individualized Consideration than the idea of Intellectual Stimulation for the newly promoted leaders. More research about the difficulties of the different transformational leadership scales for learning is needed. According to Wolf (1986), an effect size of .25 is significant for education. It can be concluded that, based on the Superiors’ Rating, both in Germany and in China the Individualized Consideration has reached certain significant effect sizes and achieved medium effect sizes. These results are similar to the results of the meta-analyses of Collins and Holton (2004) and Taylor et al. (2009). They also provide evidence for the applicability of the GLDP for Chinese managerial leaders. On the results level, ANCOVA is applied in a similar vein. The direct-reports’ view and the superiors’ view were taken into consideration. The results for German samples show that, in contrast to leaders who did not attend the GLDP, the leaders who attended received significantly higher scores for the Extra Effort according to the Superiors’ Rating. Two other scales show the tendency that the leaders who attended the training have higher scores than the managers who did not attend the training. However, they are not significant. According to the Superiors’ Rating, scores of the Chinese group which attended the GLDP for Extra Effort are also significantly higher than scores of the group which did not attend. However, due to the violation of one preliminary assumption of ANCOVA, this result should be interpreted with caution. It is to be noted that the scores for Satisfaction from the direct-reports’ perspective have decreased in all four groups. This result may be due to the fact that when the data were collected, the MNC was facing a financial crisis. This crisis triggered dissatisfaction in the organization. The managerial leaders might have had no chance to increase the satisfaction of the followers if, for instance, they had to announce “bad news” very often. The scores for Satisfaction of the control groups have decreased, too. The effect sizes for the success criteria are measured as well. The results are comparable with the effect magnitude of other studies. For the Direct-reports’ Rating, both effect sizes in Germany are very small. In contrast, the Effectiveness in China from the Direct-reports’ Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 Rating show an effect size of d = .17 (the score of the control group decreased at t2). It can be concluded that on the result level as well, the effect sizes from the direct-reports’ perspective in both countries are very small. Based on the Superiors’ Rating, the effect sizes of Extra Effort and Effectiveness in Germany are d = .62 and d = .55, which are large effect sizes, even though Effectiveness does not become significant with the ANCOVA. In China, all three scales show medium to large effect sizes, from d = .24 to d = .62. It can be noticed that from the Superiors’ Rating, medium to large effect sizes are achieved both in Germany and in China. Since the Superiors’ Ratings have generally larger effect sizes than the Direct-reports’ Ratings, the question as to why the superiors perceived more improvement than the direct-reports perceived can be raised. First of all, this result is in keeping with the results of multi-rater research and indicates that the perspective of superiors and the perspective of the direct-reports have low convergence. The two studies of Taylor et al. (2009) showed the same pattern. Their meta-analysis of the first 107 studies showed that rating by superiors has the highest population effect size estimate (.53) and rating by subordinates has the lowest score (.13). For the additional analysis of 14 studies, rating by superiors’ higher effect size (.33) and rating by subordinates has a substantially smaller effect (.004). Different reasons have been explored in the theoretical discussion. For instance, since superiors are the only person who officially have the task of evaluating the performance of their direct-reports, their ability to judge should not be underestimated. Their perspective may provide more validity for the evaluation and reflect reality better. For this study, an additional reason can be assumed, namely, the superiors are more likely to be informed by the participants about what they learned during the GLDP. This information might have given the superiors a hint about what they would be doing differently. It is less likely that the participants would have informed their direct-reports about what they learned during the GLDP. This different information level may lead to the different effect sizes. Nevertheless, superiors may have less opportunity to observe the daily leadership situations than the direct-reports; therefore, the judgment of the direct-reports may show better validity. 5. Conclusions and Implications While various prominent studies have shown evidence that the Chinese workforce exhibits distinctive cultural values compared to many Western workforces, for instance in Germany, some scholars also presume that MNCs are likely to select a workforce in other countries whose values tend to match the corporate culture of the MNC than represent their own national characteristics (Gerhart, 2009; Bass, 1990). That means that the Chinese managerial leaders working at an MNC originating from Germany may have similar cultural values to the German leaders. The result shows that the cultural values are significantly different between the German and the Chinese managerial leaders. This finding is consistent with the results of many well-known empirical studies. It also supports the idea that due to the different cultural Proceedings of 8th Asia-Pacific Business Research Conference 9 - 10 February 2015, Hotel Istana, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9 values, the Global Leadership Development Program should be cautiously investigated in these two cultural contexts. However, according to the previous result of Schwartz (1994), it is assumed that the Chinese perceive Self-enhancement as more important than the Germans and that the Germans perceive Self-transcendence as more important than the Chinese do. This part of the assumption is not confirmed. This result supports the discussion that the corporate culture does have an influence on the values of the workforce, not only in China, perhaps also in Germany. Since most of the studied leaders have worked in the MNC for some years, it is conceivable that their values have been influenced by the corporate values (Bass, 1990), in this case with regard to the values Self-enhancement and Self-transcendence. Aside from some scales with unacceptable reliabilities, the correlations of Transformational Leadership with the three success criteria (Extra Effort, Effectiveness and Satisfaction) are significantly positive both in Germany and in China. This result provides further evidence for the statement that transformational leadership is a nearly universal effective leadership style. As well as being effective in North America, it is also effective in Germany and in China. However, consistency bias throughout the questionnaire answers might have occurred. This means that the respondents might have tried to give congruent responses to show consistency in thinking for questions concerning leadership success as well as leadership behaviour (Weisberg, Kronsnick & Bowen, 1996). Therefore, this result should still be interpreted with caution. Regarding the impact of the GLDP, it can be summarized that both German and Chinese leaders who attended the GLDP have achieved a medium to large effect, in particular from the superiors’ perspective. However, the direct-reports did not experience a significant difference after the GLDP. It seems that the GLDP per se needs some improvement to enhance the effect sizes in both countries. For instance, compared to the effect of learning contents regarding Individualized Consideration, it seems that the learning contents regarding the Intellectual Stimulation are not well transferred by the participants. To address this concern, the program developer could enhance the effectiveness of these learning contents in particular, for example raising systemic questions and applying systemic principles. In the course of globalization and along with increasing importance of Asian markets, leadership development strategy of Western MNCs is facing an additional challenge to develop their managerial leaders in Asian countries. For instance, the MNC originating from Germany, where the study took place, has to set up a strategy of developing their Chinese managerial leaders. A global strategy of leadership development is needed. However, can a leadership development program be implemented globally? Can a globally implemented leadership development program stemming from the West fit the leadership practices of Chinese leaders? Chinese leaders have different cultural values and engage in different leadership practices. 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