DELEGATION AND EMPLOYEE WORK OUTCOMES: AN EXAMINATION OF THE CULTURAL CONTEXT OF MEDIATING PROCESSES IN CHINA

DELEGATION AND EMPLOYEE WORK OUTCOMES: AN EXAMINATION OF THE CULTURAL CONTEXT OF MEDIATING PROCESSES IN CHINA Zhen Xiong Chen School of Management, Marketing & International Business ANU College of Business and Economics The Australian National University Canberra ACT 0200 AUSTRALIA Fax: +61 2 6125 5005 Email: george.chen@anu.edu.au and Samuel Aryee Aston Business School Aston University Birmingham B4 7ET ENGLAND Fax: 44-121-204-3327 Email: s.aryee@aston.ac.uk The authors are grateful to Brad Kirkman and three anonymous reviewers for their insightful comments and suggestions on earlier drafts of this article. Address correspondence and reprint requests to Zhen Xiong Chen, School of Management, Marketing & International Business, ANU College of Business and Economics, The Australian National University, Canberra ACT 0200, AUSTRALIA. Email: george.chen@anu.edu.au

1 DELEGATION AND EMPLOYEE WORK OUTCOMES: AN EXAMINATION OF THE CULTURAL CONTEXT OF MEDIATING PROCESSES IN CHINA ABSTRACT We used cultural self-representation theory (Erez & Earley, 1993) to develop a model of the processes linking delegation to work outcomes. We tested this model with data from a sample of 171 subordinate-supervisor dyads from the People s Republic of China. Regression results revealed that with the exception of job satisfaction (partial), organization-based self-esteem (OBSE) and perceived insider status (PIS) fully mediated the influence of delegation on affective organizational commitment, task performance and innovative behavior. Furthermore, traditionality moderated the relationships between delegation and the mediators (OBSE and PIS) such that the relationships were stronger for individuals lower rather than higher in traditionality.

2 As a form of employee involvement in decision-making, delegation describes a category of leader behavior that entails assignment of new responsibilities to subordinates and additional authority to carry them out (Yukl, 1998) or a supervisor s empowerment of a subordinate to take responsibility for certain activities (Bass, 1990). The practitioner literature promotes delegation as a critical element in leadership effectiveness and it is replete with prescriptive accounts of why and how to delegate (Ford, 1983; McConkey, 1974). In the past two decades or so, the prescriptive accounts of delegation in the practitioner literature have been complemented by empirical research. Much of this research has focused on why managers delegate (Leana, 1986, 1987; Yukl & Fu, 1998) and the outcomes of delegation such as job satisfaction and performance (Farrow, Valenzi, & Bass, 1980; Leana, 1986, 1987; Schriesheim, Neider, & Scandura, 1998). Although the empirical research has illuminated our understanding of why managers delegate and the outcomes of delegation, there is a paucity of research on the conditions under which delegation is effective (Leana, 1986, 1987; Schriesheim et al., 1998; Yukl, 1998) and why delegation is related to its demonstrated outcomes. The growing adoption of flat or nonhierarchical organizational structures and the consequent empowering of employees to create effective workplaces suggest that delegation will become an increasingly popular managerial technique or leader behavior. Understanding the processes through which delegation influences employee work outcomes therefore constitutes an important research task. Underpinned by Erez and Earley s (1993) cultural self-representation model, the first objective of the current study is to examine the self-concept constructs of organization-based self-esteem (OBSE) and perceived insider status (PIS) as mediators of the relationship between delegation and the work outcomes of job satisfaction, affective organizational commitment, task performance and innovative behavior. Further, research on delegation has rarely been conducted

3 in non-western contexts hence there is scant knowledge of the cultural variables which promote effective delegation in these contexts. A second objective of the current study is to examine the moderating influence of the individual cultural value orientation of traditionality (Farh, Earley, & Lin, 1997) on the relationship between delegation and the self-concept constructs of OBSE and PIS in a non-western setting (i.e., China). These objectives are schematically depicted in Figure 1. ------------------------------------------------------------------------------------------------------------- Insert Figure 1 about here ------------------------------------------------------------------------------------------------------------- THEORY AND HYPOTHESES The cultural self-representation model proposed by Erez and Earley (1993) represents a culture-based model of work motivation that evaluates the motivational potential of managerial techniques or practices (e.g., delegation) across cultures. The model posits that behavior is selfregulated by processing self-relevant information in terms of the extent to which it contributes to self-worth and well-being. In processing self-relevant information, cultural values play an important role in determining the implications of managerial practices for the self-concept. This is because cultural values define what it means to be a person in a particular society and therefore provide the criteria for evaluating managerial practices in terms of the extent to which they satisfy the self-derived motives leading to enhanced self-worth and well-being. Consequently, congruence between a managerial practice and the cultural values in a particular society has a positive effect on employee work attitudes and behavior (Newman & Nollen, 1996). Following Erez and Earley (1993), we posited that the self-concept constitutes an underlying mechanism through which delegation is related to the work outcomes. The self-

4 concept describes the totality of an individual s thoughts and feelings having reference to him or herself as an object (Rosenberg, 1979:7). Although the self-concept is considered to be a highly complex entity, Gecas (1982) distinguished between two dimensions of the construct: (1) self-conceptions and (2) self-evaluations. In his view, self-conception is defined by for example, identity, which reflects the meanings that comprise the self as an object. In the context of the current study, identity is reflected by one s status as an organizational insider. Since PIS connotes an employee s sense of having earned a personal space and acceptance as an organizational member (Masterson & Stamper, 2003:483), the status of an organizational insider defines his or her identity. Hence, PIS reflects the self-conception dimension of the self-concept. In contrast, Gecas (1982: 4) considered self-esteem as an example of the self-evaluation dimension of the self-concept. This is because self-esteem reflects a personal evaluation of what one thinks of oneself as an individual. Given our focus on self-esteem in the context of work and consistent with Gecas (1982), OBSE represents the self-evaluation component of the self-concept. Delegation and Employee Self-concept Following Tharenou s (1979) recommendation that the conceptualization and measurement of self-esteem should be consonant with the situation, Pierce, Gardner, Cummings and Dunham (1989) developed and validated a measure of OBSE. It describes the self-perceived value that individuals have of themselves as important, competent, and capable within their employing organizations - employees with high organization-based self-esteem have come to believe that I count around here (Pierce & Gardner, 2004: 593). As a leader behavior, delegation will foster high levels of OBSE. This is because it (delegation) provides an employee the opportunity to exercise self-direction and control, which signals to the employee that he or she is considered by the supervisor/organization to be able, task competent, organizationally important, and need-

5 satisfying (Gardner et al., 2004; Pierce & Gardner, 2004). The incorporation of such positive messages into the self-concept leads to enhanced OBSE. PIS depicts an employee s conception of him/herself as having earned a personal space and acceptance inside their work organization and therefore, a sense of personal relatedness with other organization members (Stamper & Masterson, 2002). Following leader-member exchange (LMX) theory (Dansereau, Graen & Haga, 1975; Graen & Uhl-Bien, 1995), we expect delegation to be related to PIS. LMX theory posits that leaders develop differentiated relationships with subordinates ranging from low to high quality, which may be reflected in a subordinate s status as out-group or in-group member. Analogous to the differentiated relationships a leader develops with his/her subordinates, Stamper and Masterson (2002) argued that PIS connotes differentiated relationships that organizations have with employees. In their view organizations foster a differentiation of the workforce (insiders versus outsiders) by using inducements such as benefits, training, and promotion (that define the quality of the employment relationship) to send signals to certain employees that they have achieved insider status (Stamper & Masterson, 2002:877). Consistent with LMX theory predictions, the high quality employeeorganization relationship that the leader behavior of delegation fosters will enhance or signal to an employee his/her status or identity not only as a member of the supervisor s but also the organization s in-group. Further, delegation will be positively related to PIS because being empowered to take responsibility for certain activities signals one s inclusion or acceptance in the organization and therefore the individual s respected position within the organization. Hypothesis 1: Delegation will be positively related to both OBSE and PIS. Mediating Influence of Employee Self-concept In addition to the work outcomes of job satisfaction and task performance (Farrow et al.,

6 1980; Leana, 1986; 1987), we hypothesized that delegation will be related to affective organizational commitment and innovative behavior. Given that delegation reflects a high quality employee-organization relationship, it will encourage employees to incorporate their status as organizational members into their self-concept leading to affective organizational commitment. The influence of delegation on innovative behavior can be explained in terms of the opportunity to experience self-direction in work that delegation engenders. The experience of self-direction will motivate employees to experiment with new ways of doing their job leading to innovative behavior. We contend, however, that the influence of delegation on these work outcomes is indirect through the self-concept constructs of OBSE and PIS. The hypothesized mediating influence of the self-concept constructs of OBSE and PIS on the relationships between delegation and the work outcomes is predicated on the notion that as a managerial behavior, delegation enhances the self-concept and the motivational implications of the self-concept (Markus & Wurf, 1987; Shamir, 1991) in turn, influence the work outcomes. OBSE has since been shown to be related to job satisfaction, organizational commitment, task performance and extra-role behavior (Chen, Aryee & Lee, 2005; Judge & Bono, 2001; Pierce et al., 1989; Pierce & Gardner, 2004). Self-consistency has been employed as a regulatory mechanism to explain the demonstrated outcomes of OBSE 1. Korman (1970: 32) posited that all other things being equal, individuals will engage in and find satisfying those behavioral roles which maximize their sense of cognitive balance or consistency. Following Korman (1970), high OBSE individuals will engage in behavior, possess attitudes and choose roles that reinforce their positive self-cognition. Although there is evidence linking OBSE to extra-role or discretionary behavior (Pierce & Gardner, 2004), innovative behavior has not been previously examined as an outcome of OBSE. Innovative behavior entails the production or adaptation of

7 useful ideas and idea implementation (Kanter, 1988). It may involve a fair amount of risk taking especially in the implementation stage where an individual will need to build a coalition of supporters to sponsor the idea. Consistent with their positive self-cognition as competent and capable employees, high OBSE individuals will be more willing to take risks and thereby engage more in innovative behavior than low OBSE individuals. Low OBSE individuals or individuals who have negative self-cognition will engage in behavior or hold attitudes that reinforce or are consistent with that image which preclude the risk of experimenting with new ways of performing their task roles. Furthermore, high OBSE individuals will hold attitudes about their jobs and organizations, which reflect their sense of value and/or importance to the organization leading to job satisfaction and affective organizational commitment. Given that OBSE and its motivational implications are more proximal to the work outcomes, OBSE will mediate the influence of delegation on the work outcomes. As an indicator of the quality of the employment relationship, we expect PIS to be related to the behavioral and attitudinal work outcomes. The influence of PIS on employee task performance and innovative behavior may be explained in terms of the motivational implications of membership. Stamper and Masterson (2002) equated organizational insider status to Graham s (1991) notion of citizenship with its implied acceptance of certain responsibilities. They therefore argued that an individual s conception of him/herself as an organizational insider would lead him or her to accept the responsibilities of citizenship. This will entail performing the prescribed work role dependably as well as engaging in discretionary work roles such as innovative behavior (Stamper & Masterson, 2002). PIS fosters a sense of belonging which will encourage employees to explore ways of promoting the organization s future well-being and of their own. We argue that exploring ways to promote their mutual future well-being will motivate

8 organizational insiders to engage in innovative behavior. The impact of PIS on job satisfaction and affective organizational commitment is explicable in terms of the inducements employees receive from the organization. Based on inducement and contribution theory (March & Simon, 1958), Stamper and Masterson (2002) argued that one of the reasons why employees regard themselves as organizational insiders is because they receive more inducements from the organization (e.g., training and promotion opportunities) which will lead to job satisfaction. The inducements organizational insiders receive will also reflect the quality of their employment relationship, which they reciprocate by incorporating their organizational membership into their self-concept leading to affective organizational commitment. In addition, attainment of organizational insider status satisfies the socioemotional need for affiliation or belonging leading employees to incorporate their organizational membership and role status into their self-concept (cf., Rhoades, Eisenberger, & Armeli, 2001). Demonstrating positive work behavior and possessing positive work attitudes will be consistent with one s self-concept of PIS which will therefore, mediate the influence of delegation on the work outcomes. Following the preceding discussion and to the extent that delegation is positively related to the self-concept constructs which are in turn, related to the work outcomes, we expect the delegation-work outcome relationships to be indirect through the motivational implications of OBSE and PIS. Hypothesis 2a: OBSE and PIS will both be positively related to job satisfaction and will mediate the delegation-job satisfaction relationship. Hypothesis 2b: OBSE and PIS will both be positively related to affective organizational commitment and will mediate the delegation-affective organizational commitment relationship.

9 Hypothesis 2c: OBSE and PIS will both be positively related to task performance and will mediate the delegation-task performance relationship. Hypothesis 2d: OBSE and PIS will both be positively related to innovative behavior and will mediate the delegation-innovative behavior relationship. Traditionality as a Moderator of Delegation - Self-concept Relationships In view of the emergent trend of examining individual-level orientations that reflect cultural values (Lam, Chen & Schaubroeck, 2002), we examined traditionality as a moderator of the relationship between delegation and the self-concepts. Schwartz (1992) defined traditionality as commitment to, respect for, and acceptance of customs and norms of a traditional society. In Chinese society, the defining characteristics of a traditional culture include respect for authority, filial piety, ancestor worship, fatalism, and a general sense of powerlessness (Yang, Yu, & Yeh, 1989). Because respect for authority is a key aspect of traditionality (Farh, Earley, & Lin, 1997), researchers (Hui, Lee, Rousseau, 2004) have suggested that high traditionality employees have similar characteristics to those high in power distance while low traditionality employees have similar characteristics to those low in power distance. Hofstede (1991: 28) defined power distance as the extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally. In the context of an organization, it is typical for high traditionality individuals (cf., high power distance individuals) to accept status differences and their behavior tends to be guided by their role as subordinates. Thus, high traditionality employees tend to be more willing to comply with their leaders directives but less inclined or even distressed when empowered to assume roles that fall within the domain of the leader. The reluctance of high traditionality individuals to accept responsibility for certain workrelated activities might stem from their sense of powerlessness or low sense of agency. As a

10 result, the self-concept of high traditionality individuals will not be enhanced by delegation. Indeed, Kirkman and Shapiro (1997) suggested that high power distance employees (cf., high traditionality employees) might resist the type of autonomy and responsibility that characterize a high degree of self-management. In contrast, low traditionality individuals (cf., low power distance individuals), who may be similar to those observed in Western settings, are less constrained by the expectations of the subordinate-superior relationship. Such individuals may have a high sense of agency and will therefore be more desirous of obtaining authority to carry out certain work-related activities. Consequently, delegation will be instrumental in enhancing not only a low traditionality individual s perception of his/her status in the group (PIS) but also his/her belief that I am an important part of this place (OBSE). Hypothesis 3: Traditionality will moderate the relationships between delegation and both OBSE and PIS such that the relationships will be stronger for people lower, rather than higher, in traditionality. METHOD Sample and Procedure Participants in the current study were employees of a manufacturing company located in a major city in Southern China. Separate questionnaires were administered to supervisors and subordinates. The supervisor questionnaires were distributed to 70 supervisors while the subordinate questionnaires were distributed to 210 immediate subordinates of these supervisors. Each supervisor was asked to rate the job performance indicators of three of his/her immediate subordinates. The average span of control for supervisors in this sample was about 13 employees. With the assistance of the human resource department and based on systematic sampling, we randomly selected three immediate subordinates for each supervisor in order to

11 ensure objectivity in the ratings of the focal performance indicators. Respondents were informed that the survey aimed to examine their experience of the company s human resource practices and were assured of the confidentiality of responses. Completed surveys were individually returned to a box in the human resource department designated for that purpose. Sixty-two supervisor and 185 subordinate questionnaires were returned for response rates of 88.1% and 88.6%, respectively. After deleting records with unmatched supervisor-subordinate pairs, a total of 171 supervisor-subordinate dyads (171 subordinates and 62 supervisors) remained and constituted the sample for this study. Of the 171 respondents, 62.6% were male. Respondents reported an average age of 26.84 years (s.d. = 6.25), an average organizational tenure of 3.46 years (s.d. = 3.60) and an average of 12.01 years of education (s.d. = 2.85). They represented diverse occupational backgrounds such as accounting/finance (7.6%), engineering (16.0%), sales/marketing (14.5%), production/ manufacturing (44.3%), computer systems (2.3%), human resources/administration (9.9%), consumer services (2.3%), research and development (3.1%). Pertaining to the supervisors, 63.6% were men and reported an average age of 37.45 years (s.d. = 9.80), an average organizational tenure of 4.12 years (s.d. = 2.42) and an average of 13.85 years of education (s.d. = 2.49). In terms of level in the management hierarchy, 41.4% were lower level managers, 45.1% were middle level managers and 13.6% were senior/top level managers. Measures With the exception of two scales (traditionality and task performance), the measures were originally constructed in English. To assure equivalence of the measures in the Chinese and the English versions of the survey instrument, a standard translation and back-translation procedure was performed (Brislin, 1980). The Chinese version was subsequently pilot-tested on employees

12 of the participating organization who were not included in the final sample. Based on the feedback, a few items were reworded to ensure clarity. Unless otherwise indicated, response options ranged from (1) strongly disagree to (5) strongly agree. Delegation. As a form of empowerment or self-direction in the context of work, delegation differs from the conceptually similar construct of autonomy. We conceptualized delegation as a form of leader behavior while autonomy describes a structural feature of a job (Hackman & Oldham, 1980). We used a 6-item scale (Schriesheim et al., 1998) based on two three-item scales developed and validated by Schriesheim and Neider (1988) to measure perceived delegation. Response options ranged from (1) none of the time to (5) always. Sample items are My supervisor does not require that I get his/her input or approval before making decisions and My supervisor permits me to get needed information from him/her and then make my own decisions. We conducted an exploratory factor analysis of the six delegation items whereby the factors were extracted using principal components and the resulting factor matrix rotated by varimax. The results yielded a one factor solution because the latent root for factor 2 (=.08) was smaller than 1 (cf., Hair, Anderson, Tatham, & Black, 1998). Thus we combined the two scales to create a composite measure. The scale s reliability of.87 compares favorably with the.84 reported by Schriesheim et al. (1998). OBSE. We used Pierce et al. s (1989) 10-item scale to measure OBSE. This scale has previously been used in a Chinese context (Hui & Lee, 2000; Chen et al., 2005). Sample items are I count around here and I am taken seriously around here. The scale s reliability was.91. PIS. We used a 6-item scale developed by Stamper and Masterson (2002) to measure PIS. Sample items are I feel I am an insider in my work organization and My work organization

13 makes me believe that I am included in it. The scale s reliability was.80. Job satisfaction. We used a 5-item general job satisfaction scale within Hackman and Oldham s (1975) Job Diagnostic Survey to measure job satisfaction. Sample items are Generally speaking, I am very satisfied with this job and I frequently think of quitting this job (reverse score). The scale s reliability was.85. Affective organizational commitment. We used Meyer, Allen and Smith s (1993) 6-item scale to measure affective organizational commitment. This scale has previously been used in a Chinese context (Chen & Francesco, 2003). Sample items are I would be very happy to spend the rest of my career in this organization and This organization has a great deal of personal meaning for me. The scale s reliability was.82. Task performance. We used a 4-item scale developed by Farh and Cheng (1999) to measure task performance. This scale has previously been used in a Chinese context (Chen, Tsui, & Farh, 2002). Sample items are This subordinate makes an important contribution to the overall performance of our work unit and The performance of this subordinate always meets my (supervisor s) requirements/expectations. The scale s reliability was.76. Innovative behavior. We used a 6-item scale by Scott and Bruce (1994) to measure innovative behavior. Supervisors rated each of their subordinates who participated in the survey on the extent to which This employee generates creative ideas and This employee develops adequate plans and schedules for the implementation of new ideas. The scale s reliability was.76. Traditionality. We used 8 items from the Chinese Individual Traditionality Scale developed by Yang, et al (1989) to measure this construct. This 8-item scale, including the five items used by Farh et al. (1997), has been previously used in a study conducted in the Chinese Mainland

14 (Chen, 1997). Sample items are The best way to avoid mistakes is to follow the instructions of senior persons and When people are in dispute, they should ask the most senior person to decide who is right. The scale s reliability was.89. Controls. We controlled for four demographic variables and one contextual variable that may potentially confound the results. Previous research has shown age, gender and tenure to be related to affective organizational commitment (Meyer, Stanley, Herscovitch, & Topolnytsky, 2002). Education has been found to be related to innovative behavior (Scott & Bruce, 1994), and gender has been found to be related to task performance (Chen et al., 2002). Gender and education have been shown to be related to traditionality (Farh et al., 1997). Age, education, and tenure were measured by number of years. Gender was coded 1 for male and 0 for female. The contextual variable of position in the organizational hierarchy was coded (1) for non managerial employee, (2) for first level supervisor/manager, (3) for middle level manager, and (4) for senior level manager. We controlled for position because lower level employees may respond more positively to delegation than higher-level employees. This is because the role of lower level employees generally precludes authority to take responsibility for certain task-related activities. Data Analysis To examine the distinctiveness of the study variables, we conducted a confirmatory factor analysis (CFA) using LISREL 8.5 (Jöreskog & Sörbom, 2001). We compared the fit of our hypothesized model to a number of nested plausible alternative models. After demonstrating the distinctiveness of the study variables and following Baron and Kenny s (1986) recommended conditions for establishing mediation, we tested Hypothesis 1 and Hypotheses 2a to 2d using regression analysis. To test Hypothesis 3, we conducted a moderated regression analysis. Following Aiken and West (1991) and to reduce multicollinearity, we centred the variables used

15 in the interaction term. RESULTS The results of the CFA that examined the distinctiveness of the study variables are presented in Table 1. As shown in this table, the fit indices revealed the hypothesized 8-factor model to be a better fitting model relative to each of the alternative nested models indicating support for the distinctiveness of the constructs in the study. ---------------------------------------------------------------------------------------------------------------- Insert Table 1 about here ----------------------------------------------------------------------------------------------------------------- The means, standard deviations and intercorrelations among the study variables and the controls are presented in Table 2. ---------------------------------------------------------------------------------------------------------------- Insert Table 2 about here ---------------------------------------------------------------------------------------------------------------- Results of the regression analysis are presented in Table 3. As shown in the table (Model 1, Hypothesis 1), delegation was related to OBSE (ß =.52, p <.01) and PIS (ß =.29, p <.01). Furthermore, the results showed that delegation was related to the work outcomes of affective organizational commitment (ß =.27, p <.01), job satisfaction (ß =.35, p <.01), task performance (ß =.24, p <.01) and innovative behavior (ß =.20, p <.01). As evident from the table (Model 2), both OBSE and PIS were significantly related to each of the work outcomes examined controlling for delegation, the demographics, and the contextual variable of position in the organizational hierarchy. Pertaining to the mediated hypotheses, Model 2 further revealed that with the exception of job satisfaction, the previously significant relationships between delegation and the work outcomes ceased to be significant in the presence of the two mediators. Taken together, support for Hypothesis 1 and the significant relationship between delegation and

16 the work outcomes provided support for two of the conditions for testing mediation. However, since delegation continued to be significantly related to job satisfaction in Model 2, the third condition for mediation was only partially supported. Specifically, Hypothesis 2a received partial support whereas Hypotheses 2b -2d were fully supported. ---------------------------------------------------------------------------------------------------------------- Insert Table 3 about here ---------------------------------------------------------------------------------------------------------------- Table 4 presents the results of the moderated regression analysis that examined the moderating influence of traditionality on the relationships between delegation and the selfconcept constructs of OBSE and PIS. As predicted (Hypothesis 3), traditionality negatively moderated the influence of delegation on OBSE (ß = -.25, p <.01) and PIS (ß = -.23, p <.01). Their interaction term accounted for 6% ( R 2 =.06, F = 14.14, p <.01) and 5% ( R 2 =.05, F = 9.50, p <.01) of the explained variance in OBSE and PIS, respectively. --------------------------------------------------------------------------------------------------------------- Insert Table 4 about here -------------------------------------------------------------------------------------------------------------- To interpret the moderated effects, we solved for regression equations at high and low traditionality. Following Cohen and Cohen (1983), the high and low values were defined by plus and minus one standard deviation from the mean. As shown in Figures 2 and 3 and as predicted, the plot of the interaction terms shows that delegation was related to both OBSE and PIS for low traditionality individuals. In contrast, the flat slope shows that both OBSE and PIS for high traditionality individuals were unaffected by delegation. Thus Hypothesis 3 was fully supported. --------------------------------------------------------------------------------------------------------------- Insert Figure 2 & 3 about here

17 --------------------------------------------------------------------------------------------------------------- DISCUSSION The results of the study revealed that in addition to job satisfaction and task performance, delegation was related to affective organizational commitment and innovative behavior, and the self-concept constructs of OBSE and PIS. Furthermore, both OBSE and PIS were related to each of the work outcomes and with the exception of job satisfaction (partial mediation); they fully mediated the influence of delegation on the work outcomes. The moderated regression results revealed that the influence of delegation on both OBSE and PIS was contingent upon the individual cultural value orientation of traditionality. The self-concept of individuals lower but not those higher in traditionality was positively enhanced by delegation. This suggests that the signal that delegation conveys is not uniformly interpreted by employees and that traditionality constitutes an important cultural value orientation that moderates the delegation-self-concept relationship. Theoretical Implications Our findings regarding mediation contribute to the delegation literature in several ways. First, the mediating effect of the self-concept moves research on delegation beyond main effects to an examination of the mechanisms that underpin the demonstrated influence of delegation on its work outcomes. Specifically, they lead us to suggest that the previously demonstrated influence of delegation on the work outcomes (Farrow et al., 1980; Schriesheim et al., 1998) at least in a Chinese context is indirect through enhancing the self-concept constructs of OBSE and PIS. Schriesheim and his colleagues (1998) theorized that delegation influences employee work outcomes through the job characteristics model (Hackman & Oldham, 1980). In light of our findings, future research may need to examine the relative utility of the self-concept and the job

18 characteristics model as mechanisms through which delegation influences employee work outcomes. Second, our findings support the cultural self-representation model proposed by Erez and Earley (1993) that posits the self-concept (e.g., OBSE and PIS) as a mediator of the relationship between managerial practices (e.g., delegation) and employee work outcomes (e.g., affective organizational commitment, task performance and innovative behavior). Additionally, the mediating role of the self-concept further underscores its motivational implications (Markus & Wurf, 1987; Shamir, 1991). In his formulation of a self-concept based motivational theory, Shamir (1991) posited that work behavior may not necessarily be goal-oriented and may be an expression of the components of the self- concept which an individual seeks to validate in his or her work. Our finding pertaining to the moderating influence of traditionality on the relationship between delegation and the self-concept constructs of OBSE and PIS is consistent with Erez and Earley s (1993) formulations and the extant literature (Newman & Nollen, 1996). Specifically, our findings suggest traditionality as an individual cultural value orientation that moderates the role of delegation in enhancing the self-concept constructs of OBSE and PIS. As previously noted, a key dimension of traditionality (respect for authority) is conceptually similar to power distance which has been empirically shown to moderate the effectiveness of leader behavior/management practices that devolve work-related decision making authority (Hui, Au, & Fock, 2004). Although employees from a high power distance culture such as China may not be considered receptive to delegation, the results of the moderated regression suggest that a focus on individual difference is more appropriate especially when societal cultures are in transition. This is because individual difference cultural values better reflect the nature of changes in belief or value structures (Lam et al., 2002).

19 Managerial Implications The results of our study have several managerial implications. First, the moderating role of the individual cultural value orientation of traditionality has implications for improving the effectiveness of delegation. A prerequisite for effective delegation suggested by McConkey (1974:100) is the willingness of an employee to accept responsibility for execution of duties assigned to him or her. To make delegation a more effective managerial behavior or practice, managers must identify individual cultural values that moderate the influence of delegation on the self-concept of employees. The moderating influence of traditionality suggests that delegation will be more effective with low traditionality than with high traditionality subordinates. For the former group of subordinates and perhaps because of their willingness to accept responsibility for delegated tasks, delegation enhances their self-concept leading to the work outcomes. However, managers may enhance the willingness of high traditionality subordinates to accept delegated tasks through such psychological capital strategies as mastery experiences, vicarious learning, positive feedback and social recognition (Luthans & Youseff, 2004). These practices will influence their self-concept and ultimately the work outcomes. Second, since cultural/individual values have been changing in China (Ralston, Egri, Stewart, Terpstra, & Yu, 1999), the new generation in China may become less traditional in the future. Thus, our finding that low traditionality employees were receptive to delegation because it enhanced their self-concept and ultimately work outcomes highlights the potential viability of delegation in China. Finally, our findings of the mediating influence of the self-concept constructs suggest that organizations should sensitize supervisors to the effects of their leadership practices on the self-concept of subordinates. Accordingly, strategies that enhance the self-concept of subordinates should be incorporated into leadership training programs. Although

20 our results generally provide support for the study s propositions, the generalizability of our findings to other cultural contexts remains an empirical question. In view of the popularity of management practices that devolve responsibility for certain work activities to subordinates future research should replicate our findings using samples from different cultural contexts. Limitations The current study has a number of limitations that should be addressed in future research. First, the use of cross-sectional data implies that cause-effect relations cannot be inferred from our findings. For example, it is intuitively plausible that OBSE and PIS influence delegation. This is because supervisors delegate to employees with a history of competence and those who are members of the in-group (Leana, 1986). Our findings are, however, consistent with the cultural self-representation theory that underpinned our study. Second, even though we obtained data on task performance and innovative behavior from a separate source (i.e., from supervisors), the two attitudinal variables (i.e., affective commitment and job satisfaction) examined in the mediating influence of PIS and OBSE on the delegation-work outcome relationships were based on subordinates self reports. Although results of the CFA demonstrated the distinctiveness of the focal variables, it is unclear the extent to which the results involving the work attitudes are attributable to method variance. Third, we measured delegation from subordinates perspective. Future research should obtain data on delegation from both supervisors and subordinates in order to obtain a more objective measure of the construct (Schriesheim et al., 1998). Fourth, it is unclear the extent to which traditionality will be meaningful in a Western context. Although the core element of traditionality is similar to power distance, these two constructs may not necessarily have similar moderating effects. As individual cultural value orientations, future research in a Chinese context should include both constructs to empirically demonstrate their

21 relevance as moderators in research on delegation-work outcome relationships. A final limitation is that we did not include LMX in our study. This is in spite of the fact that we discussed delegation as a leader behavior and constitutes a defining characteristic of a high quality LMX. Future research should include LMX either as a moderator of the delegation-work outcome relationships (Schrieshiem et al; 1998) or as a control variable. Conclusion The findings of the current study suggest that the influence of delegation on employee work outcomes is indirect through enhancing the self-concept constructs of OBSE and PIS. Because these self-concepts motivate employees to behave in ways and/or hold attitudes that are consistent with their positive self-image, they constitute more proximal antecedents of the work outcomes than delegation. However, the influence of delegation on these self-concepts is contingent upon the individual cultural value orientation of traditionality. Delegation is more effective in enhancing the self-concept constructs of OBSE and PIS among individuals lower in traditionality rather than higher in traditionality. From a managerial perspective, organizations and their managers should increase the sense of agency of employees high in traditionality if delegation is to enhance their self-concept and ultimately improve organizational effectiveness. ENDNOTE 1 In addition to self-consistency, self-protection and self-enhancement motives operate in the service of the self. Self-enhancement describes a motivation to attain outcomes that indicate personal growth whereas self-protection represents a defense of the self-concept from threatening environmental forces (Korman, 2001)

22 REFERENCES Aiken, L. S., & West, S. G. 1991. Multiple regression: Testing and interpreting interactions. Newbury Park, CA: Sage. Baron, R. M., & Kenny, D. A. 1986. The moderator mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51: 1173-1182. Bass, B. M. 1990. Bass and Stogdill s handbook of leadership (3 rd ed.), New York: Free Press. Brislin, R. W. 1986. Translation and content analysis of oral and written materials. In H. C. Triandis & J. W. Berry (Eds.), Handbook of cross cultural psychology, vol. 2: 389-444. Boston. Allyn & Bacon. Chen, Z. X. 1997. Loyalty to supervisor, organizational commitment, and employee outcomes: A Chinese case. Ph.D. dissertation. The Hong Kong University of Science and Technology. Chen, Z. X., Aryee, S., & Lee, C. 2005. Test of a mediated model of perceived organizational support. Journal of Vocational Behavior, 66: 457-470. Chen, Z. X., & Francesco, A. M., 2003. The relationship between the three components of commitment and employee performance in China, Journal of Vocational Behavior, 62 (3): 490-510. Chen, Z. X., Tsui, A. S., & Farh, J. L. 2002. Loyalty to supervisor vs. organizational commitment: Relationships to employee performance in China. Journal of Occupational and Organizational Psychology, 75: 339-356.

23 Cohen, J., & Cohen, P. 1983. Applied multiple regression/correlation analyses for the behavioral sciences. Hillsdale, NJ: Lawrence Erlbaum. Dansereau, F., Graen, G. & Haga, W.J (1975). A vertical dyad approach to leadership within formal organizations. Organizational Behavior and Human Performance, 13:46-78. Erez, M., & Earley, P. C. 1993. Culture, self identity, and work. NY: Oxford University Press. Farh, J. L., & Cheng, B. S. 1999. An investigation of modesty bias in self ratings of work performance among Taiwan workers. Chinese Journal of Psychology, 39: 103-118 (In Chinese). Farh, J. L., Earley, P. C., & Lin, S. C. 1997. Impetus for action: A cultural analysis of justice and organizational citizenship behavior in Chinese society. Administrative Science Quarterly, 42: 421-444. Farrow, D. L., Valenzi, E. R., & Bass, B. M. 1980. A comparison of leadership and situational characteristics within profit and non profit organizations. Paper presented at the annual meeting of the Academy of Management, Detroit. Ford, R. C. 1983. Delegation without fear. Supervisory Management, July 2-8. Gardner, D. G., Van Dyne, L., & Pierce, J. L. 2004. The effects of pay level on organizationbased self-esteem and performance: A field study. Journal of Occupational and Organizational Psychology, 77: 307-322. Gecas, V. 1982. The self concept. Annual Review of Sociology, 8: 1-35. Graen, G. & Uhl-Bien, M. 1995. Relationship-based approach to leadership: Development of leader-member exchange (LMX) theory of leadership over 25 years. Applying a multi-level multi-domain perspective. Leadership Quarterly, 6:219-247. Graham, J. W. 1991. An essay on organizational citizenship behavior. Employee Responsibilities

24 and Rights Journal, 4: 249-270. Hackman, J. R. & Oldham, G. R. 1975. Development of the Job Diagnostic Survey. Journal of Applied Psychology, 60:159-170. Hackman, J. R., & Oldham, G. R. 1980. Work redesign. Reading, MA: Addison Wesley. Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. 1998. Multivariate data analysis (5 th edition), Upper Saddle River, New Jersey: Prentice Hall. Hofstede, G. 1991. Cultures and organizations: Software of the mind. London: McGraw-Hill. Hui, C., & Lee, C. 2000. Moderating effects of organization-based self-esteem on the relationship between perception of organizational uncertainty and employee response. Journal of Management, 26: 215-232. Hui, C., Lee, C., & Rousseau, D. M. 2004. Organization versus relationships in China: Is organizational support distinguishable from personal relations with one s manager? Organization Science, 15: 232-240. Hui, M. K., Au, L., & Fock, H. 2004. Empowerment effects across cultures. Journal of International Business Studies, 35: 46-60. Jöreskog, K. G., & Sörbom, D. 2001. LISREL 8.50. Scientific Software International, Inc. Judge, T. A., & Bono, J. E. 2001. Relationship of core self evaluations of traits self esteem, generalized self efficacy, locus of control, and emotional stability with job satisfaction and job performance: A meta analysis. Journal of Applied Psychology, 86: 80-92. Kanter, R. M. 1988. When a thousand flowers bloom: Structural, collective, and social conditions for innovation in organizations. In B. W. Staw & L. L. Cummings (Eds.), Research in organizational behavior, 69-211. Greenwich, CT: JAI Press. Kirkman, B. L., & Shapiro, D. L. 1997. The impact of cultural values on employee resistance to

25 teams: Toward a model of globalized self-managing work team effectiveness. Academy of Management Review, 22: 730-757. Korman, A. 1970. Toward a hypothesis of work behavior. Journal of Applied Psychology, 54: 31-41. Korman, A. K. 2001. Self-enhancement and self-protection: Towards a theory of motivation. In M. Erez, U. Kleinbeck, & H. Thierry (Eds), Work motivation in the context of globalizing economy, 121-130. Mahwah, NJ: Lawrence Erlbaum Associates. Lam, S., Chen, X.P, & Schaubroeck, J. 2002. Participative decision making and employee performance in different cultures: The moderating effects of allocentrism/idiocentrism and self-efficacy. Academy of Management Journal, 45:905-914. Leana, C. R. 1986. Predictors and consequences of delegation. Academy of Management Journal. 29: 754-774. Leana, C. R. 1987. Power relinquishment versus power sharing: Theoretical clarification and empirical comparison of delegation and participation. Journal of Applied Psychology, 72: 228-233. Luthans, F. & Youssef, C. M 2004. Human, social, and now positive psychological capital management: Investing in people for competitive advantage. Organizational Dynamics, 23:143-160. March, J. G. & Simon, H. A. 1958. Organizations. New York: Wiley & Sons. Markus, H., & Wurf, E. 1987. The dynamic self-concept: A social psychological perspective. Annual Review of Psychology, 38: 299-337. Masterson, S. S., & Stamper, C. L. 2003. Perceived organizational membership: An aggregate framework representing the employee-organization relationship. Journal of Organizational

26 Behavior, 24: 473-490. McConkey, D. D. 1974. No nonsense delegation. New York: AMACON. Meyer, J. P., Allen, N. J., & Smith, C. A. 1993. Commitment to organizations and occupations: Extension and test of a three component conception. Journal of Applied Psychology, 78: 538-551. Meyer, J. P., Stanley, D. T., Herscovitch, L., & Topolnytsky, L. 2002. Affective, continuance, and normative commitment to the organization: A meta-analysis of antecedents, correlates, and consequences. Journal of Vocational Behavior, 61: 20-52. Newman, K. L., & Nollen, S. D. 1996. Culture and congruence: The fit between management practices and national culture. International Journal of Business Studies, 27: 753-779. Pierce, J. L., & Gardner, D. G. 2004. Self-esteem within the work and organizational context: A review of the organization-based self-esteem literature. Journal of Management, 30: 591-622. Pierce, J. L., Gardner, D. G., Cummings, L. L., & Dunham, R. B. 1989. Organization based self esteem: Construct definition, measurement, and validation. Academy of Management Journal, 32: 622-648. Ralston, D. A., Egri, C. P., Stewart, S., Terpstra, R. H., & Yu, K. 1999. Doing business in the 21 st century with the new generation of Chinese managers: A study of generational shifts in work values in China. Journal of International Business Studies, 30: 415-428. Rhoades, L., Eisenberger, R., & Armeli, S. 2001. Affective commitment to the organization: The contribution of perceived organizational support. Journal of Applied Psychology, 86: 825-836. Rosenberg, M. 1979. Conceiving the self. New York: Basic Books.

27 Schriesheim, C. A., & Neider, L. L. 1988. Subtypes of managerial delegation: An extension of the Vroom and Yetton conceptualization. Paper presented at the annual convention of the American Psychological Association, Atlanta. Schriesheim, C. A., Neider, L. L., & Scandura, T. A. 1998. Delegation and leader member exchange: Main effects, moderators, and measurement issues. Academy of Management Journal, 41: 298-318. Schwartz, S. J. 1992. Universals in the content and structure of values: Theory and empirical tests in 20 countries. In M. Zanna (Ed.), Advances in experimental social psychology, vol. 25: 1-65. New York: Academic Press. Scott, S. G., & Bruce, R. A. 1994. Determinants of innovative behavior: A path model of individual innovation in the workplace. Academy of Management Journal, 37, 580-607. Shamir, B. 1991. Meaning, self and motivation in organizations. Organization Studies, 12: 405-424. Stamper, C. L., & Masterson, S. S. 2002. Insider or outsider? How employee perceptions of insider status affect their work behavior. Journal of Organizational Behavior, 23: 875-894. Tharenou, P. 1979. Employee self esteem: A review of the literature. Journal of Vocational Behavior, 15: 1-29. Yang, K. S., Yu, A. B., & Yeh, M. H. 1989. Chinese individual modernity and traditionality: Construct definition and measurement (in Chinese). Proceedings of the Interdisciplinary conference on Chinese psychology and behavior: 287 354. Yukl, G. 1998. Leadership in organizations (4 th ed.). Englewood Cliffs, NJ: Prentice Hall. Yukl, G, & Fu, P. P. 1999. Determinants of delegation and consultation by managers. Journal of Organizational Behavior, 20: 219-232.