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This article was downloaded by: [Salisbury University], [Richard Hoffman]On: 26 August 2011, At: 08:56Publisher: RoutledgeInforma Ltd Registered in England and Wales Registered Number: 1072954 Registeredoffice: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK

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The impact of managerial skills onemployee outcomes: a cross culturalstudyRichard C. Hoffman a & Frank M. Shipper aa Perdue School of Business, Salisbury University, Management &Marketing, Salisbury, USA

Available online: 26 Aug 2011

To cite this article: Richard C. Hoffman & Frank M. Shipper (2011): The impact of managerialskills on employee outcomes: a cross cultural study, The International Journal of Human ResourceManagement, DOI:10.1080/09585192.2011.581635

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The impact of managerial skills on employee outcomes: a cross culturalstudy

Richard C. Hoffman* and Frank M. Shipper

Perdue School of Business, Salisbury University, Management & Marketing, Salisbury, USA

Leaders with global skills are in demand by MNCs. Global management skills dependon the applicability of management practices across cultures. Using data frommanagers in 50 countries, this study examines the interaction effect of cultural valuesand managerial skills on two outcomes, employees’ attitudes and workgroupeffectiveness. Our results indicate that cultural values tend to have a greater effectwhen a manager is less skilled than when the manager is highly skilled. When themanager is highly skilled, the interaction effects of culture tend to disappear.The practical and research implications of these findings are discussed.

Keywords: cultural values; job attitudes and effectiveness; managerial skills

Introduction

Having competent global leaders has been rated as the most important factor to success in

international business; furthermore, most human resource executives in US MNCs do not

believe they have a sufficient cadre of managers with global skills (Gregerson, Morrison and

Black 1998). Possessing global skills, in part, depends on the applicability of existing

management theories across cultures (Yukl 2002). For example, do managers

trained/educated in one country have the requisite skills to manage successfully in another

country? Do effective managerial skills/behaviors transcend cultures or are they culturally

bound? Without answers to these questions, managers assigned to other cultures and those

assigned to develop such managers may be providing advice that is inappropriate on what

skills to develop to manage effectively (e.g. Shipper, Hoffman and Rotondo 2007).

Hofstede (2001) and others (Ronen and Shenkar 1985; House, Hanges, Javidan,

Dorfman and Gupta 2004) have found that different cultures reflect different values.

Recently, researchers (Lenartowicz and Johnson 2002; Leung, Bhagat, Buchan, Erez and

Gibson 2005, p. 368) have argued that, rather than determining whether or not culture

makes a difference, we need to address, ‘ . . . how and when it makes a difference’. Thus,

the purpose of this study is to examine how cultural values may interact with managerial

skills, employees’ attitudes, and work unit effectiveness. It is hoped that this research may

shed light on the practice of management in a global setting and, therefore, building on

research that has an impact on practice (DeNisi 2006).

Management practices across cultures: convergence, divergence or ?

Concern about the appropriateness of management practices across cultures is

encompassed by the cultural divergence–convergence theories of management and

ISSN 0958-5192 print/ISSN 1466-4399 online

q 2011 Taylor & Francis

DOI: 10.1080/09585192.2011.581635

http://www.informaworld.com

*Corresponding author. Email: [email protected]

The International Journal of Human Resource Management,

2011, 1–22, iFirst

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organizations. Briefly, those who adhere to the culturally bound contingent or divergent

views of management practices suggest that cultural tradition, ideologies and norms are

bound to differentiate attitudes and behaviors among cultures (e.g. Hostfede 2001). This is

often referred to as an ‘emic’ analysis of behavior. Leadership may be culturally bound

because culturally differentiated values give rise to differentiated views regarding

effective leaders and behaviors (Javidan and Carl 2005). Alternatively, because culture

represents different sets of norms and beliefs, this may limit acceptable behaviors

available to leaders (Yukl 2002).

On the other hand, leadership and management practices are deemed to be more cross-

culturally universal or convergent due to a number of factors, including (1) the globalization

of markets and industries, (2) technological breakthroughs in communications and

transportation, and (3) the homogenization of management training based on standard

criteria enforced by international accrediting agencies (e.g. AACSB, EQUIS, etc.). These

factors have contributed to creating international norms and practices that transcend local

traditions (Hafsi and Forashaki 2005). Recently, the GLOBE studies (House et al. 2004)

have identified certain leadership styles/behaviors that appear to be universally acceptable

while others were found to be universally discredited or unacceptable.

The cross-cultural management debate and subsequent research has matured

somewhat, and this has led some researchers to suggest that the relationship between

culture and effective management practices may have more nuances than the opposing

views of the debate suggest.

Some scholars (e.g. Ralston, Holt, Terpstra and Kai-Cheng 1997) have argued for an

integrative alternative to convergence–divergence debate which they call ‘crossvergence.’

This view examines the interaction of culture with economic ideology and its subsequent

influence on values. However, as Witt (2007) points out, national culture and economic

ideology are somewhat distinct concepts, so crossvergence is not another perspective of

cultural influences but rather of the interaction of culture with other ideologies. More in

keeping with our focus on national culture, Leung et al. (2005) indicate that responses to

globalization may include creative synthesis and innovation in addition to adaptation or

rejection. Still others (Den Hartog, House, Hanges, Ruiz-Quintanilla and Dorfman 1999) have

indicated that there may be different types of universals or convergence among management

practices. The first of these is the simple universal suggesting that a given management

practice is effective in all cultural settings. Thus, the management behavior or skill does not

vary across cultures. A variform universal is one in which subtle changes can be made to

management practices across cultures. For example, ‘people’ behaviors may be effective

across many cultures, but in some cultures it is manifested as coaching on job-related

activities, while in other cultures, it may be counseling subordinates on personal problems.

Thus, how the practices or skills are expressed or carried out may differ across cultures. Lastly,

there is the functional universal that focuses on the stability of relationships between different

variables across cultures. If a management skill or behavior is found to be related to

effectiveness or ineffectiveness across cultures, this would support a functional universal, if

not, it would support a functional divergence of the relationship across cultures.

Since the preponderance of cross-cultural management research adopts a culture-

specific approach when examining two leadership and management behaviors across

leaders, we adopt that perspective as our theoretical position. Any difference between the

culture-specific position, however, might represent a range of universalistic positions from

simple to variform or functional.

We begin by modeling the general relationships we seek to investigate. Then, based on

a variety of disparate research, we develop hypothesized relationships among some key

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variables in our model. From there, we empirically test the hypothesized relationships

among a large sample of managers from a global MNC. Finally, the implications of the

results for our model and practice are discussed.

A cross-cultural model of management skills and outcomes

To guide our investigation, we have developed a broad model of the relationship between

management skills and outcomes in a cross-cultural setting. This model was derived from

the general convergence–divergence debate that highlights the potentially key position of

culture in examining this functional relationship. The model is also based on general

contingency theories (e.g. Woodward 1958; Lawrence and Lorsch 1967) indicating the

influence of other environmental (e.g. economic, industrial) and organizational (e.g. size,

age, technology) factors that may influence the management skills–outcomes

relationship. The model was further specified by drawing on more recent cross-cultural

studies examining various aspects of the management skills–outcomes relationship. One

such model is the culture-based model of work motivation developed by Erez and Earley

(1993). In this model, management practices influence worker motivation that in turn

affects outcomes. In recent adaptations of the model, Chen and Aryee (2007) found

support for culture’s moderating effects between the management practice of delegation

and both employee self-concept and work outcomes. Hui, Au and Fock (2004) used a

simpler model and found support for the moderating influence of culture on the

empowerment–job satisfaction relationship. Thus in these models, culture directly affects

perceptions of management practices and indirectly affects the extent to which such

practices motivate the individual. Furthermore, the models link management to outcomes

and reflect that the context including culture, affects this relationship. Below we first

describe the general relationships depicted in our model and then define the key variables

of interest, namely culture, management skills, and outcomes.

The model shown in Figure 1 depicts culture as having effects directly (dotted arrows)

on organizational context, management practices, and outcomes. In addition, culture’s

functional or moderating effect is depicted by a thin dotted arrow directed toward the thick

white block arrow linking context to management skills/behaviors and by a thin solid

black arrow directed toward the thick black block arrow linking skills to outcomes. In this

model, the thick black arrow between skills and outcomes and the thin solid black arrow

between culture and the latter relationship reveal the focus of this study. The other

relationships will be somewhat controlled for either through sample selection or

Organizational&

environmentalcontext

Culture

Outcomes

- attitudes- work group effectiveness

Managerial- skills/ behaviors- attributes

- styles

Figure 1. General model of the relationships between culture, managerial skills, and outcomes.

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statistically. Our general proposition is that management practices affect a variety of

outcomes both attitudinal and work-centered, and that this relationship may vary across

cultures due to value differences that may be more or less accepting of certain

management practices or behaviors.

Culture is difficult to describe (Kwok and Tadesse 2006) as it has many levels, such as

observable behaviors and unobservable values and assumptions (Schein 1990). This

makes culture a difficult construct to measure. In this study, we define culture as the

pattern of shared values, attitudes, and beliefs, often shared by a particular group of

people, which affect their behavior (e.g. Hofstede 2001; House et al. 2004). Essentially,

two dominant means of assessing culture have been employed in management literature:

culture-centered and personality-centered approaches (Clark 1990; Lenartowicz and Roth

1999). Culture-centered approaches use qualitative anthropological approaches to

describe a single culture in terms of its ethnology, religion, customs, etc. This approach

is suitable when studying a single culture. Personality-centered assessments use

quantitative measures. Some of these can be proxies, such as nationality or place of birth.

Another personality-centered method is the use of value inferences based on either

primary or secondary measures. By focusing on specific dimensions or measures of

culture, we may begin to answer ‘why’ there are cultural differences that may lead us to

some specific recommendations for international management development and practice.

For this study, we selected two value-based, secondary measures of culture because they

represent well-defined, empirically based measures that have been systematically assessed

within a wide variety of cultures. The first set selected was that developed by Hofstede

(2001). Although these dimensions have been controversial, ‘ . . . they have provided a

broad framework that has inspired much IB research’ (Leung et al. 2005, p. 365). Others

(Schwartz 1994; Smith, Peterson and Schwartz 2002) have subsequently identified other

dimensions. However, these studies have yielded convergent results lending support to the

validity of Hofstede’s dimensions (Leung et al. 2005), and as a result, the latter have enjoyed

wide use in cross-cultural research (e.g. Kwok and Tadesse 2006). Hofstede assessed

culture primarily along four distinct values: power distance, uncertainty avoidance,

individualism, and masculinity. Power distance refers to the social stratification within a

society such that higher status individuals/groups are accorded more power and authority by

those of lower status. Uncertainty avoidance refers to a society’s fear of unknown or

ambiguous situations. Individualism refers to the identity of self as based either solely on the

individual or on the individual as part of a group or collective. Masculinity refers to a

society’s preference for competition and outcomes (masculine values) as opposed to

cooperation and process (feminine values). These values are supplemented by the more

recent GLOBE study of values and leadership (House et al. 2004). At least two of the values

are novel and independent of Hofstede’s dimensions and appear to be relevant to leadership

(Leung et al. 2005): humane and performance orientations. Humane orientation is the value

concerned with improving the human condition. Performance orientation is the extent to

which a society fosters and rewards improvement and excellence. A third value, future

orientation, is similar to Hofstede’s (2001) long-term orientation, but the GLOBE study

contains more country data on this value, hence, its use in this study. Future orientation

refers to whether a society uses a short- or long-term perspective. Thus, in this study, culture

was assessed using seven quantitative value dimensions.

Cultural values and assumptions influence preferences for behaviors in general

(Hofstede 2001) and leader behaviors or styles in particular (Dorfman et al. 1997; House

et al. 2004; Javidan and Carl 2005). Thus, we would expect cultural variation in the

efficacy of the use of certain managerial skills. We focus on two sets of managerial skills:

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interactive and controlling skills. Interactive skills include abilities such as communicat-

ing goals (what and why), planning and problem solving, soliciting suggestions, coaching,

training, supporting, providing feedback, delegating, and expressing appreciation or

complimenting good work. These skills are associated with ‘people’ behaviors or

participative leadership styles. Controlling skills include abilities such as keeping on

schedule and meeting deadlines, applying appropriate control to details, and applying

appropriate pressure to ensure that goals are met. These skills are associated with more

directive and task-oriented leadership styles.

Leader effectiveness has been assessed by examining a leader’s impact on affects, such

as attitudes and motivation (e.g. Shipper and Davy 2002; Hui et al. 2004) as well as on

subordinate or work group performance (e.g. Black and Porter 1991). Both of these

outcomes are incorporated in our model to assess the more comprehensive impact of

effective management practice across cultures.

Cultural values, management skills, and outcomes: hypothesized relationships

In this section, we develop some general hypotheses concerning the effects cultural values

may have on the relationship between different management skills and different types of

outcomes. First, we focus on the impact managerial skills have on attitudes in a cross-cultural

setting. Erez and Earley (1993) have noted that cultural values play an important role in

determining the impact of management practice on our motives and concept of self-worth.

A recent study (Fischer and Masell 2009) found some direct relationships between power

distance and collectivism for two types of commitment by employees. One would also

expect that different managerial skills are likely to have differential effects on affects such as

job attitudes in countries possessing different cultural values.

Interactive management skills are similar to participative leadership styles; the

latter have been found to be positively associated with job satisfaction in general

(e.g. Yukl 2002). Cross-culturally, participative leader behaviors (e.g. use of interactive

skills) have been found to be positively associated with job satisfaction and decision

commitment in cultures with low power distance (Cascio 1974; Smith and Peterson 1988;

Hui et al. 2004), low uncertainty avoidance, and feminine values (Rubenowitz, Norrgren

and Tannenbaum 1983). Humane-, performance- and future-oriented values have been

found to be positively associated with team-oriented and participative styles (House et al.

2004) both of which are similar to interactive management skills. Moreover, humane

orientation is believed to be positively associated with people as opposed to task behaviors

(Leung et al. 2005). Thus, we offer the following hypothesis:

H1: Interactive management skills are more strongly related to positive job attitudes in

cultures exhibiting:

(a) lower power distance

(b) lower uncertainty avoidance

(c) lower masculine values

(d) higher humane-oriented values

(e) higher performance-oriented values

(f) higher future-oriented values.

Task-oriented leader behaviors similar to the controlling skills have been found to elicit

different outcomes in cross-cultural studies (Bennett 1977; Bass and Burger 1979;

White and Trevor 1983; Javidan, Dorfman, de Luque and House 2006). Leaders who seek to

dominate or exert control over others are likely to be found in societies favoring high power

The International Journal of Human Resource Management 5

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distance values (Den Hartog et al. 1999; Shin, Morgeson and Campion 2007). Moreover, a

stronger managerial emphasis on tasks versus relationship behaviors has been found to be

associated with both individualist and masculine values (Hofstede 2001). Managerial task

orientations, control of uncertainties, and general administrative competence, all similar to

controlling skills, have been found to be positively associated with higher uncertainty

avoidance across cultures (Hofstede 2001; House et al. 2004). The link between controlling

skills and affects in cross-cultural settings can be observed by the findings that the use of

close supervision (Williams, Whyte and Green 1966) and centralized decision making

(Birnbaum and Wong 1985) have been found to be positively related to job satisfaction.

Performance orientation values are believed to be positively associated with task behaviors

(Leung et al. 2005) and have been found to be more strongly related to controlling leader

behaviors than either humane or future orientation values (House et al. 2004). Thus,

H2: Controlling management skills are more strongly related to positive job attitudes in

cultures exhibiting:

(a) higher power distance

(b) higher uncertainty avoidance

(c) individualist values

(d) higher performance orientation values.

We now turn our attention to examining some possible cross-cultural relationships

between managerial skills and workgroup effectiveness. The literature on leadership has

established that appropriate leader behaviors affect subordinate performance or

workgroup outcomes (e.g. Bass 1997; Yukl 2002; Judge, Piccolo and Ilies 2004;

Shipper et al. 2007) and often varies across cultures (e.g. Black and Porter 1991;

House et al. 2004). In this study we focus on whether cultural variations cause differential

relationships between managerial skills and work group effectiveness.

With respect to interactive management skills, Welsh, Luthans and Sommer (1993)

found that participative leader behaviors were associated with lower performance for

Russian managers who possessed moderate levels of both power distance and uncertainty

avoidance. Consideration leader behaviors were found to be positively associated with

leader effectiveness in the US, but negatively associated with effectiveness among Mideast

managers who reflect high power distance, uncertainty avoidance, and collectivist values

(Scandura, Von Glinow and Lowe 1999). Recently, managers’ self-awareness of interactive

skills was found to be positively associated with managerial outcomes within Western

cultures but negatively associated with outcomes in a Far Eastern culture, the latter

exhibiting higher power distance and collectivism than the Western cultures

(Shipper, Kincaid, Rotondo and Hoffman 2003). Although the effect of humane,

performance, and future orientation values has not been examined in the context of leader

behaviors and work effectiveness, we draw on our earlier discussion of these values to argue

that the values more closely related to certain managerial skills are more likely to have a

positive interaction effect on effectiveness. Thus, the following hypothesis emerges:

H3: Interactive management skills are more strongly related to positive workgroup

effectiveness in cultures exhibiting:

(a) lower power distance

(b) lower uncertainty avoidance

(c) individualist values

(d) higher humane orientation values

(e) higher performance orientation values.

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Task-oriented behaviors have also been linked to subordinate performance in single

culture studies (e.g. Judge et al. 2004). Cross-culturally, Black and Porter (1991) examined

the impact on performance of using the same leader behaviors in both the US and in Hong

Kong. The US managers’ consideration (interactive) and initiating structure (controlling)

behaviors were positively correlated with subordinate performance when working with US

subordinates. The same behaviors used by either US managers or Chinese managers with

Chinese subordinates were generally not correlated with subordinate performance.

The results indicated that, regardless of the cultural background of the managers, the

selected leader behaviors did not appear to be relevant to subordinate performance in Hong

Kong. US and China have opposite profiles on power distance, uncertainty avoidance, and

individualism. In another study (Scandura et al. 1999), the use of controlling skills to initiate

structure by managers were not related to subordinate performance when used by US

managers, but were positively related to performance among Jordanian and Saudi Arabian

managers. More recently, Shipper et al. (2003) found that self-awareness of pressuring skills

was positively associated with behaviors for managers from Malaysia, a culture high on

power distance, uncertainty avoidance, and collectivism, but not among US managers who

have a contrasting profile on these values. Similar to our reasoning above, as performance

orientation was found to be more strongly related to controlling type of leader behaviors

(House et al. 2004), we posit that they will moderate the relationship between controlling

skills and work effectiveness. Hence, we offer the following:

H4: Controlling management skills are more strongly related to positive workgroup

effectiveness in cultures exhibiting:

(a) higher power distance

(b) higher uncertainty avoidance

(c) collective values

(d) higher performance orientation values.

Methods

Sample

The original sample consisted of 16,795 managers who were participating in an ongoing

management development program in a large multinational firm in the technology sector.

The firm is known for having an open and egalitarian culture. For example, it has an ESOP,

and the employees own approximately 10% of the company. Due to missing cultural data,

only 13,480 managers were included in the study. On average, each manager’s skills were

evaluated by 3.63 subordinates. Thus, each manager also represents a work group. Fifty

cultures were represented by these managers.

When cultural values based on Hofstede’s (2001) typology were used in the study,

only 39 of 50 cultures could be included in our analyses. Similarly, when cultural values

based on House et al. (2004) typology were used, only 40 cultures could be investigated.

When the work of Hofstede’s (2001) and House et al. (2004) typologies were used together

in this study, only 37 cultures could be used due to the limited overlap. Thus, the number

of cultures in a specific analysis varies depending on the cultural typology used.

Design and procedures

The design of this study is based on survey research and archival value data. The translated

instruments employed in this study had been in use for some time prior to this study. They

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were developed by translation professionals according to normal translation and back-

translation procedures and extensively pretested prior to this study. The benefits of well-

translated instruments far outweigh the negatives. Respondents tend to respond reliably

when using their native language as opposed to a second language (Marin, Triandis,

Betancourt and Kashima 1983), and the use of summated scales reduces language bias

(Prince and Mombor 1967). Finally, translation errors tend to be randomized as the

number of language versions increase (Hofstede 2001).

For this study, primary data were electronically collected via the internet as part of an

ongoing management development program. Data from the first administration of the

Survey of Management Practices (Form LB), a 360 questionnaire, were used in this study.

The procedure used for collecting the data involved the use of a secure server and

passwords for each respondent to protect anonymity. The process was explained to all

respondents involved. For this study, each manager’s direct reports were used to assess the

manager’s skills and job attitudes. Data from each manager’s superior were used to assess

the manager’s performance, that is, workgroup effectiveness (four items). The response

rate of the direct reports was 63% while that for the superiors was 68%.

The managerial skills data was assessed using a structured questionnaire, The Survey

of Management Practices (Form LB) to collect observations (Wilson and Wilson 1991). It

was chosen for its comprehensive nature and psychometric soundness (Morrison, McCall

and DeVries 1978; Van Velsor and Leslie 1991; Clark, Clark and Campbell 1992;

Shipper 1995; Leslie and Fleenor 1998; Shipper and White 1999; Shipper and Davy 2002).

The questionnaire consists of 71 items of which 56 were used in this study. Forty-eight of

these items were selected because they constitute the scales for managerial skills found in

the Managerial Task Cycle model (Wilson, O’Hare and Shipper 1990). Eight additional

items from the Survey of Management Practices were used to measure outcomes. These

measures are addressed in detail later. Specific skills used in this study – interactive and

controlling – were taken from prior research. These measures were developed through

cluster analysis and have been found to be stable (Shipper and Wilson 1992; Shipper et al.

2003, 2007; Shipper 2004).

Prior studies have examined the questionnaire and found its test/retest reliability,

internal consistency, interrater reliability, construct validity, and criterion validity to be

acceptable (Wilson 1975, 1978; Shipper 1995; Rosti and Shipper 1998; Shipper and White

1999; Shipper and Davy 2002). For example, all of the scales within the instrument have

been reported in prior studies to exceed Nunnally’s (1978) criteria of 0.70 for reliability.

In addition, the structure of the questionnaire has been found to be stable within and across

cultures (Shipper et al. 2003; Shipper 2004). Furthermore, the instrument has been used in

other cross-cultural studies of managerial skills (Offermann and Hellmann 1997;

Shipper et al. 2003; Shipper 2004) and is available in several languages including Arabic,

Bahasa Malaysian, Chinese, English, French, German, Hebrew, Mandarin Simplified,

Polish, Russian, Spanish, and Tagalog.

Outcomes were also assessed via the Survey of Management Practices. To assess

employees’ job attitudes, four additional items that constitute an affective commitment

scale were asked of the subordinates. Affective commitment is the strength of an

individual’s involvement (Meyer, Paunonen, Gellatly, Goffin and Jackson 1989) and has

been identified as one of the most commonly used concepts of employees’ affective

reactions in organizational studies (Brooke, Russell and Price 1988; Mathieu and Farh

1991). A typical item on this scale is, ‘I try hard to do my work well’.

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To mitigate the problem of common source variance, the managers’ superiors were

used as the source to assess work-unit effectiveness. This scale is comprised of four items.

A typical item asks if the managers’ group ‘works well’.

As customary, the means, standard deviations, and correlations for all variables are

reported in Table 1. In addition, each scale was analyzed again for reliability using

Cronbach’s alpha. All scales had levels of reliability acceptable for experimental research

(a $ 0.60; Nunnally 1967). Since the level of analysis is the manager, each aggregated

scale was analyzed to ensure its suitability using the Interclass Correlation Coefficient

(ICC1; Lim and Ployhart 2004). Prior research has used ICC’s ranging from 0.12 (James

1982) to 0.22 (Lim and Ployhart 2004) to justify aggregation. Thus, given that the ICC’s

for the scales in this study reported in Table 2 fell within or exceeded this range,

aggregating the direct reports’ data to assess the manager’s skills and job attitudes appears

to be statistically justified.

To assess culture, we used two-country level indices of values drawn from secondary

sources. Data on the values of power distance, uncertainty avoidance, individualism, and

masculinity were drawn from Hofstede’s (2001) work for each country in our sample.

These indices range from 0 to 115. The measures for humane, performance, and future

orientation values were drawn from the GLOBE research of House et al. (2004) for each

country in our sample. These are also country level data assessed on a seven-point scale

and adjusted for response bias. Given that the different measures for cultural values were

assessed using different scales, the seven variables were all standardized prior to the

analysis.

Finally, certain controls were employed to account for rival hypotheses. Referring

back to Figure 1, the organizational and environmental context is controlled by examining

data from a single firm within a single industry. The direct effects of culture on skills and

outcomes are accounted for statistically by the methods used for data analysis.

Analysis

To test each hypothesis, the data were analyzed using analysis of variance. Analysis of

variance was considered to be the appropriate statistical technique over linear regression

because other researchers have found nonlinear relationships among cultural values,

managerial skills, and employees’ attitudes and outcomes (Hoffman and Shipper 2006).

When interaction terms were significant, interaction diagrams were drawn for ease of

interpretation.

To prepare the data for analysis of variance, the respondents on the scales representing

the independent variables (i.e. culture and management skills) were each divided into the

low, middle, and high thirds. Thirds were considered to be more appropriate divisions than

halves given the size of the sample and the possibility of nonlinear relationships.

The dependent variables for this study were the managers’ job attitudes and workgroup

effectiveness as described previously.

Findings

In performing cross-cultural research such as this, four fundamental questions arise. First,

for each sub-hypothesis is the overall statistical model significant? Second, are the main

effects within the model statistically significant? Third, is the interaction effect

statistically significant? Fourth, when the interaction term is significant, does the

interpretation of the results including the interaction term differ? The first three questions

The International Journal of Human Resource Management 9

Dow

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by [

Salis

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ity],

[R

icha

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offm

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at 0

8:56

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ust 2

011

Tab

le1

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ean

s,st

and

ard

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corr

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ills

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20

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No

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orr

elat

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gn

ifica

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atth

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.05

lev

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).

R.C. Hoffman and F.M. Shipper10

Dow

nloa

ded

by [

Salis

bury

Uni

vers

ity],

[R

icha

rd H

offm

an]

at 0

8:56

26

Aug

ust 2

011

are easy to answer because they are based on mathematics. For the fourth question, any

difference in interpretation of the results can be revealed by an inspection of the interaction

diagrams. Our results are interpreted in light of these parameters. As can be seen in Table 3,

the overall statistical models for each sub-hypothesis and all but one main effect are

statistically significant. The amount of variance explained in the models testing

Hypothesis 1 compare favorably to that explained by either transformational leadership

(Judge and Picollo 2004) or consideration (Judge et al. 2004) in meta-analytical studies

when the dependent variable is followers’ attitude. The amount of variance explained in

the models testing Hypothesis 2 exceeds the explanation provided by either Management

by Exception Active or Passive reported in a meta-analytical study when the dependent

variable is the followers’ attitude (Judge and Picollo 2004). For the models testing

Hypothesis 3, the amount of variance explained was similar to the amount explained by

either transformational leadership (Judge and Picollo 2004) or consideration (Judge et al.

2004) in meta-analytical studies when the dependent variable is the leader’s job

performance. The amount of variance explained in the models testing Hypothesis 4 is

similar to that explained by either Management by Exception Active or Passive reported in

a meta-analytical study regardless of the dependent variable (Judge and Picollo 2004).

Since the overall statistical models are comparable to those in other studies and the main

effects are all significant, the following discussion of findings focus on the tests of the

interaction terms that are the unique contribution of this study.

Overall, there was some support for the first hypothesis concerning the interaction

effects of cultural values on the relationship between interactive skills and job attitudes.

Table 3 reveals highly significant results at 0.001 level for both the interactive skills’ and

cultural values’ main effects across all values examined. Hypothesis H1a, regarding the

interactive effect of power distance with interactive skills on job commitment, was

partially supported. The top left panel of Figure 2 reveals that interactive management

skills were more strongly related to commitment at low to moderate levels of the value

when interactive skills were low to moderate but not when the manager exhibited high

levels of interactive skills. The findings for uncertainty avoidance values were the opposite

of what was predicted (see upper right panel of Figure 2). The skills–commitment

relationship was higher at moderate to higher levels of uncertainty avoidance when skill

levels were low to moderate, contrary to sub-Hypothesis 1b. Regarding H1c, the sub-

hypothesis was not supported. There appeared to be a significant cultural interaction at

high and moderate levels of the masculine values when managers exhibit low to moderate

Table 2. Psychometric properties of scales.

Cronbach’s Alpha (a) ICC1

Scale n n

1. Interactive skills 0.94 0.1659,706 16,719

2. Controlling skills 0.60 0.2660,346 16,703

3. Commitment 0.79 0.3157,880 16.744

4. Workgroup effectiveness 0.9014,916 N/A

Note: N/A, not applicable.

The International Journal of Human Resource Management 11

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by [

Salis

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Uni

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[R

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offm

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at 0

8:56

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Aug

ust 2

011

Tab

le3

.R

esu

lts

fro

mA

NO

VA

for

Hy

po

thes

es1

–4

.

Ind

epen

den

tva

ria

ble

sa

nd

sig

nifi

can

ceM

od

el

Hyp

oth

esis

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b-h

ypo

thes

isD

epen

den

tva

ria

ble

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lls

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inef

fect

sig

nifi

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a2

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ltu

ral

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e

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fect

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nifi

can

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a2

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ract

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nifi

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nifi

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1.

a(n

¼1

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)*C

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mit

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6

R.C. Hoffman and F.M. Shipper12

Dow

nloa

ded

by [

Salis

bury

Uni

vers

ity],

[R

icha

rd H

offm

an]

at 0

8:56

26

Aug

ust 2

011

Tab

le3

–co

nti

nu

ed

Ind

epen

den

tva

ria

ble

sa

nd

sig

nifi

can

ceM

od

el

Hyp

oth

esis

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b-h

ypo

thes

isD

epen

den

tva

ria

ble

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lls

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inef

fect

sig

nifi

can

ceet

a2

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ltu

ral

valu

e

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inef

fect

sig

nifi

can

ceet

a2

Inte

ract

ion

sig

nifi

can

ceet

a2

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nifi

can

cer2

e(n

¼8

98

9)

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ecti

ven

ess

Inte

ract

ive

r#

0.0

01

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form

ance

ori

ente

dv

alu

esr#

0.0

01

N/S

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0.0

01

.0

.01

0.0

4.

0.0

10

.06

4.

a(n

¼8

98

8)

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ecti

ven

ess

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ntr

oll

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tan

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0.0

01

.0

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0.0

10

.04

b(n

¼8

91

1)

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ess

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0.0

01

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cert

ain

tyav

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ance

r#

0.0

01

N/S

r#

0.0

01

.0

.01

0.0

4.

0.0

10

.04

c(n

¼9

00

4)

Eff

ecti

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ess

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ntr

oll

ing

r#

0.0

01

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llec

tiv

ev

alu

esr#

0.0

01

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r#

0.0

01

.0

.01

0.0

4.

0.0

10

.04

d(n

¼9

00

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ecti

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ess

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ntr

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N/S

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form

ance

ori

ente

dv

alu

esr#

0.0

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.04

No

te:

*N

um

ber

of

emp

loyee

sp

rov

idin

gd

ata

for

any

eval

uat

ion

sin

the

tab

leca

nb

eap

pro

xim

ated

by

mult

iply

ing

the

nu

mb

ero

fm

anag

ers

rep

rese

nte

din

this

colu

mn

(n)

tim

esth

eav

erag

eo

f3

.63

emplo

yee

s.

The International Journal of Human Resource Management 13

Dow

nloa

ded

by [

Salis

bury

Uni

vers

ity],

[R

icha

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offm

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at 0

8:56

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Aug

ust 2

011

skills. There appeared to be no significant difference at high and low levels, as

hypothesized, for the value across all levels of the skills (see lower left panel of Figure 2).

For Hypotheses H1d, interactive skills were more strongly related to job commitment

when humane values are higher, but again only at low to moderate levels of interactive

skills, partially supporting the sub-hypothesis. Examining Figure 3 for performance-

oriented values (H1e), we saw a similar pattern, wherein, higher levels of humane values

moderated the skills–commitment relationship only when managers exhibited low to

moderate levels of interactive skills. There was no cultural interaction for this value at

higher levels of interactive skills (see Figure 3, left panel.). Thus, H1e was partially

supported. H1f, regarding future-oriented values, was not supported. The cultural

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Low POV Moderate POV High POV Low FOV Moderate FOV High FOV

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skills

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Figure 3. Interaction diagrams for Hypotheses 1e–f.Notes: POV, performance oriented values; FOV, future oriented values.

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Low HOV Moderate HOV High HOV

High PD

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skills

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skills

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skills

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skills

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Figure 2. Interaction diagrams for Hypotheses 1a–d.Notes: PD, power distance; UA, uncertainty avoidance, MV, masculinity values; HOV, humaneoriented values.

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interaction occurred at low–moderate skill levels of future values, the opposite of what

was predicted (see Figure 3, right panel.). Overall, only partial support was found for the

predicted interaction effects for three of the six sub-hypotheses concerning interactive

skills and job attitudes/commitment.

Hypothesis 2 focused on the relationship between controlling skills and job attitudes.

Again the results, displayed in Table 3, reveal that the main effects for both skills and

values were highly significant. Furthermore, the interactions with each value were all

highly significant at the 0.001 level suggesting some support for the overall hypothesis.

No support was found for Hypothesis H2a, as controlling skills were more strongly

related to job commitment at low to moderate (vs. high levels predicted) levels of power

distance at least when controlling skills were low to moderate. The pattern depicted in the

upper left panel of Figure 4 is contrary to the prediction. Mixed support was found for

sub-Hypothesis 2b as controlling skills were more strongly related to commitment at

moderate-high levels of uncertainty avoidance when skills were at low to moderate levels

(see Figure 4, upper right panel). Hypothesis 2c was not supported because controlling

skills appeared to be more strongly related to commitment at low-moderate rather than at

higher levels of individualistic values, contrary to the sub-hypothesis (Figure 4, lower left

panel). Finally, controlling skills were more strongly related to job commitment at

moderate–high levels of performance values at least when skill levels are low to

moderate, providing some support for sub-Hypothesis 2d (see Figure 4, lower right panel).

Overall, the results revealed partial support for Hypothesis 2 as the direction of the

interactions predicted were only suggested in half of the relationships hypothesized.

Furthermore, as in the first hypothesis, the cultural interactions were valid only when the

managers exhibited low to moderate levels of controlling skills; whereas, the cultural

interactions seemed to be negligible when managers were perceived to use higher levels of

controlling skills.

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Low PD Moderate PD High PD Low UA Moderate UA High UA

Low POV Moderate POV High POVLow MV Moderate MV High MV

Lowcontrolling

skills

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skills

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skills

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skills

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skills

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skills

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skills

Figure 4. Interaction diagrams for Hypotheses 2a–d.Notes: PD, power distance; UA, uncertainty avoidance; IV, individualistic values; POV,performance oriented values.

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The results for the third hypothesis revealed significant main effects for interactive

skills and cultural values on workgroup effectiveness. However, only one of five interaction

terms were significant, suggesting little support for the hypothesis. The interaction term for

power distance was significant at the 0.05 level. However, as Figure 5 indicates, interactive

skills were more strongly related to effectiveness at moderate rather than low levels of

power distance, contrary to sub-Hypothesis 3a. Hypotheses 3b–e, concerning the separate

interaction of the four other values (uncertainty avoidance, individualism, humane, and

performance) with interactive skills and effectiveness, were not supported, as indicated by

the nonsignificant interaction terms in Table 3.

No support was found for the fourth hypothesis that examined the interaction effect of

cultural values on the relationship between controlling skills and workgroup effectiveness.

The main effects for both skills and values on effectiveness were found to be significant in

all cases except one. None of the interaction terms for the separate values (H4a–d) were

significant (see Table 3).

Overall, our results revealed that the variables examined are important predictors of

job commitment and workgroup effectiveness. Although as expected, management skills

have a direct effect on these two outcomes; the cultural values also appear to have

significant direct effects on job commitment and effectiveness. Finally, culture does

appear to moderate the relationship between skills and attitudes and effectiveness in 58%

of the equations examined although not always in the predicted direction. The moderating

effects are predominant for the skills–commitment relationship as opposed to the

skills–effectiveness relationship.

Discussion

While there is evidence that effective use of managerial skills does vary across cultures,

there is a paucity of evidence explaining the specific source(s) of that variance. An

important finding of this study was that the relationships among management skills,

cultural values, and outcomes such as job attitudes and workgroup effectiveness are more

complex than expected.

Perhaps the most significant finding regarding the interaction of cultural values on the

relationship between managerial skills and commitment/effectiveness was that using the

appropriate interactive and controlling skills mattered more to subordinate outcomes than

did cultural values. In nearly over half of the cases, the skills–outcome relationship was

truly affected by the level of cultural values. In all of these cases, cultural values enhanced

the outcomes primarily when managers exhibited lower levels of skills. At high level of

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Lowinteractive

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Figure 5. Interaction diagrams for Hypothesis 3a.Notes: PD, power distance.

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skills, culture did not seem to matter much. In addition, cultural interactions appeared to be

more important when examining the managerial skills–attitude relationship than the

skills–effectiveness relationship. In the former case, all of the values investigated had

some interactive effect even if it was not in the hypothesized direction. In the

skills–effectiveness relationship, culture had an interactive effect in only one (of nine) of

the relationships examined. These results reveal a more complex relationship between

management practice and outcomes in a cross-cultural context. The overall findings

appear to be more in line with a variform functional view of the convergence/divergence

framework. Thus, culture’s moderating effect on the skills–effectiveness relationship

depends on the skill level of the manager. For some outcomes – workgroup effectiveness

– the results almost appear to follow the simple universal view that culture has little effect

on the relationship. For other outcomes – job attitudes – a divergent view (cultural

variations exist) is supported when managers exhibit low levels of managerial skills while

a convergent view (no cultural variation) is more evident when managers exhibit higher

skill levels.

The relatively modest moderating effect of culture on the skills–effectiveness

relationship may indicate that (1) certain cultures share similar values and, hence,

expectations (e.g. Lenartowicz and Johnson 2002) or (2) certain managerial skills are

universal as recent researchers (Javidan and Carl 2005; Javidan et al. 2006) have observed.

Being communicative and planning are cited as two universal skills in the latter study, and

these form part of the interactive skills examined in our study. If universal skills are

properly implemented, they may lead to desired outcomes in most cultures. Another factor

to be considered is that most managers (93%) were native to the culture in which they

worked so they were likely to possess values consistent with those of their subordinates.

Thus, there was little within country variance in values which may account for the modest

moderating effect of cultural values observed here.

Furthermore, although we were seeking interactions among managerial skills and

cultural values on outcomes, we also found that all of the cultural values examined had a

direct effect (albeit modest) on attitudes and effectiveness for both types of managerial

skills. These findings regarding the impact of specific cultural variables suggest that

cross-cultural research should move beyond examining culture using coarse-grained

categorical measures of culture and focus on specific cultural dimensions at least with

respect to management research.

Thus, it would be erroneous to conclude that culture does not matter. Its importance

depends on the particular level of managerial skill involved as well as the particular

outcome examined. In some of these cases, culture matters very much; in others not

so much.

Limitations

As with any study, there are some obvious limitations. First, we have not examined all the

skills that might be included in a model of management. The skills examined here do not

include some of the skills that have been described as transformational in nature

(Bass 1997). Yet, recent research has questioned whether the addition of those skills has

increased our understanding of management (Judge et al. 2004). Another limitation of this

study is that the primary statistical techniques used do not account for all possible

nonlinear relationships. At least one cross-cultural study has found complex curvilinear

relationships between managerial skills and managerial performance (Shipper 2004).

Third, the study is limited to the cultures examined. Although 50 cultures were examined

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in different aspects of this study, only one Arabic culture and no African cultures were

included.

In some cases, we observed that the cultural values did not show much variation

among certain values, which could have affected our findings regarding the interactions.

Finally, all of the managers in this study work for a single multinational company. Thus,

the influences of the selection, promotion practices, and organization’s culture on this

study cannot be determined. Furthermore, the multinational firm studied has an open and

egalitarian culture. Whether the results would be the same in a multi-firm study or a firm

with a more traditional culture cannot be answered without further research. Some studies

have found that corporate culture is not strong enough to mask results due to the inherent

cultural values of the locale (e.g. Hofstede 2001) while others have found the contrary to

be true for selected managerial practices (Gerhart and Fang 2005; Tellis, Prabhu and

Chandy 2009). In this study, this issue is somewhat mitigated by having studied these

relationships among managers and their subordinates within one multinational firm.

This study is limited, also, by its methodology. In the present study, only two-way

interactions were investigated because it is difficult to display and interpret three- and

four-way interactions (Morgan and Sonquist 1963). Thus, because of the exploratory

nature of this study, the researchers limited themselves to a two-way interactions.

Implications for management practice

Despite the limitations previously discussed, we can offer some suggestions for practice

emanating from this study. Managers who exhibit high levels of appropriate interactive

and controlling skills have less concern about adapting their management practices to the

values of the local culture. However, managers who exhibit lower level skills need to be

more aware of the cultural values of the locale in which they are working. Specifically, job

attitudes/commitments are enhanced for managers with weak interactive skills if they

exhibit values of lower power distance and higher humane and performance-oriented

values. Job attitudes will be enhanced for managers with weaker controlling skills if they

exhibit higher uncertainty avoidance and performance oriented values. Certainty may be

provided by managers who at least empathize with their subordinates’ need to avoid

uncertainty even if they cannot reduce uncertainty through effective use of controlling

skills. Managers can increase certainty by both acknowledging their subordinates’ need for

it and by rewarding and encouraging subordinate behaviors that may contribute to

reducing uncertainty. Understanding what the problem is often leads to a partial solution.

Managers seeking to improve workgroup effectiveness should also have high levels of

both interactive and controlling skills. Without having the requisite interactive skills,

workgroup effectiveness might be improved if managers exhibit moderate levels of power

distance. Cultural values appear to be of little use in making up for poor skills to enhance

workgroup effectiveness. It is important to note that values in and of themselves do have a

direct impact on both job attitudes and workgroup effectiveness. One might conclude that

having an environment with the appropriate cultural values may in and of itself help

enhance job attitudes and effectiveness and, therefore, assist the manager to achieve

greater outcomes from subordinates.

For managers assigned to other cultures and those assigned to develop such managers,

these findings provide additional support of past research that has questioned the notion

that, to do well, an expatriate must develop the dominant managerial skill profile of the

local culture (Hoffman and Shipper 2006; Shipper et al. 2007). Some researchers would

argue that the dominant managerial profile even within the US would not be a good one to

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emulate to do well (e.g. Hogan, Curphy and Hogan 1994; Shipper and Dillard 2000). In

contrast, one could argue from the findings of this study that managers must develop both

good interactive and controlling skills to be ‘effective’ in most cultures.

Implications for future research

Initially, our results indicate that we need to modify our model depicted in Figure 1 to

account for different levels of proficiency exhibited in a managerial skill as well as the

specific relationship of these skills to different types of outcomes: affects versus behaviors.

Future research will do well to examine specific dimensions of culture when studying the

efficacy of management practices across cultures. This might be in the form of using the

values in this study to examine the same or different sets of skills among other national

samples to either confirm or extend its findings. Furthermore, future research might

examine other values (e.g. Lenartowicz and Johnson 2002) or measures of culture to assess

these same skills and their impact on outcomes. Studies should incorporate different

outcome measures; the strong main effect of culture on different outcomes suggests that

outcomes vary with different levels of cultural values. Thus, future research might

investigate which outcomes appear to be more certain when certain cultural values are

prevalent.

Furthermore, future studies may want to consider other forms of analysis, such as

simultaneous equations modeling. In such a study, various managerial skills as well as

multiple cultural values and dependent variables could be considered concurrently.

Moreover, future research should also investigate the interaction of culture with other

aspects of the global context, such as the economic level of society as suggested by the

crossvergence school of thought. Studies incorporating some of these suggestions should

lead to a better understanding of the different ways culture and other variables may affect

the efficacy of managerial skills in different global settings. Such research could improve

the development of more globally-oriented leaders for multinational firms.

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