What Do Expatriate Managers Know About Their HCN Subordinates' Work Values

Abstract

To be able to adjust to a foreign work environment, expatriate managers need to know what to adjust to. This article explored to what extent expatriate executives are familiar with the work values of their host country national subordinates in Asia. A field study investigated Swedish top managers' perceptions of the work values of their middle managers who were employed in Swedish subsidiaries in Hong Kong. The result showed that the Swedish executives significantly underestimated the importance of the work values of their subordinates in one third of the investigated values. Managerial implications of the findings are discussed.     

Expatriate or local bosses? HCN subordinates' preferences in leadership behaviour

This article explores host-country national subordinates’ preferences in leadership behaviour comparing expatriate bosses and local bosses. From a sample of 240 middle managers in Hong Kong with experience with both local Chinese bosses and expatriate bosses from a broad spectrum of Western and Asian countries, it was found that the subordinate managers assessed the leadership behaviour of their expatriate bosses to be significantly closer to that of their perceived ideal boss. American leadership behaviour was the most preferred and Japanese leader style was the least preferred, with British leadership style comprising a middle group. Implications of these findings for international business firms and future academic research are discussed.     

Organizational socialization and career success of Asian managers

This study proposed a new framework to conceptualize organizational socialization. It examined two broad socialization strategies: perceived organizational support and developmental experience and their relationships with career success. Data were obtained from interviews with 374 line managers and human resource managers in four industrial sectors in five Asia countries/societies, namely, Singapore, Hong Kong, Taiwan, Japan and Thailand. There is partial support for the predicted relationships. The results from the present study add to our understanding of how organizational socialization affects career success. Implications for research and managerial practices, as well as future research directions, are provided.     

Women-friendly HRM good for QWL? The case of Hong Kong based companies

Organizations in Hong Kong were surveyed to gauge how women-friendly they were and how their human resource managers viewed the effect of women-friendly HRM policies and practices on employees' quality of work life. It was found that only about half of the policies mentioned in the questionnaire were practised by less than 10 per cent of the organizations. Principal component analysis conducted showed that organizational women-friendliness was multi-facet in nature. Using these facets - women friendly dimensions (WFDs) - as criteria and controlling for size, the study found that firms with American and European origins were more women-friendly than Hong Kong firms. Furthermore, when American companies were compared to Hong Kong companies, it was on the WFD of career development that the former were significantly higher than the latter. In contrast, when comparing European organizations with Hong Kong organizations, it was the WFD of flexibility on which the two differed most markedly.     

Corporate restructuring and career advancement in Hong Kong

This paper examines the factors that contribute to career advancement in a sample of forty-four Hong Kong managers working in three local companies that had undergone restructuring. The findings indicate that they were acutely aware of shifts in the nature of their career paths but generally were reactive to changes rather than proactive. Their concerns about changes were mostly instrumental and pragmatic judgements about how things might affect their job security and career prospects. To increase their chances of getting promoted, they focused on human-capital investment by upgrading and widening their work skills. While they felt obligated to work overtime and enhance their performance by taking on extra duties and responsibilities, they sought to develop a harmonious relationship with the environment rather than dominate it. They disliked challenging their superiors, preferring instead to imitate their superiors' behavioural patterns. In their efforts to increase opportunities for career advancement, they employed business networking and visibility as ‘wooing’ strategies. Furthermore, the desire to avoid losing face and humiliation were effective motivators.     

Attitudes towards different sources of executive appraisal: a comparison of Hong Kong Chinese and American managers in Hong Kong

This study examines the attitudes of three groups of managers in Hong Kong, namely, Hong Kong Chinese managers in local Chinese firms (HK/HK), Hong Kong Chinese managers in US firms (HK/US) and American managers in US firms (US/US), towards supervisory, peer, subordinate and multi-source appraisal of executive performance. The more recent perspective of crossvergence, within the convergence-divergence debate, provides the theoretical foundation for formulating the hypotheses. The findings indicate support for this new perspective of crossvergence. There is also evidence of the coexistence of all the three perspectives of convergence, divergence and crossvergence. The study found that the practice of supervisory appraisal is supported more by HK/US and US/US managers than by HK/HK managers. Furthermore, both HK/US and US/US managers are more supportive of subordinate evaluation than peer evaluation. Overall, the findings indicate that the traditional Chinese values may be more congruent with the notion of supervisory appraisal than with peer and subordinate evaluation. The study thus points out the importance of the compatibility of norms and beliefs regarding a management practice such as performance appraisal with the local national cultures in determining the acceptance and hence the transferability of that practice across countries.     

Middle Managers and the Employee Psychological Contract: Agency,Protection and Advancement

This paper investigates the construction and enactment of the employee psychological contract by a sample of middle-level line and personnel managers responsible for introducing job change in the air traffic control sector. We show how middle managers' concerns with fulfilling their own contractual commitments to senior management are perceived to conflict with meeting obligations to subordinates under the employment agreement. Thus, we illustrate our main argument that middle managers who are exposed to more exacting performance demands and controls do not simply subordinate employee concerns to their own interests. They seek to disguise the presence and outcomes of employee disaffection and to manipulate the impressions of senior management. We conclude that far from increasing individual accountability at middle levels such stringent controls may yield interpersonal rivalry, lower standards of employee treatment and the subversion of corporate aims.     

A Cross‐National Study of Fairness in Asia: How Perceptions of a Lack‐of‐Group Bias and Transparency in the Performance Evaluation System Relate to Job Satisfaction

This study explored how managers’ fairness perceptions of performance evaluation systems differ across countries and relate to their job satisfaction. Lack‐of‐group bias and transparency were the constructs used to assess fairness perceptions. The data sample consisted of 903 Asian managers from the subsidiaries of a leading multinational corporation (MNC) strategically expanding its retail markets in Japan, China, Hong Kong, Malaysia, and Thailand. Results showed that the fairness perceptions of lack‐of‐group bias and transparency concerning the common performance evaluation system varied within these Asian countries. Furthermore, those fairness perceptions were significantly related to job satisfaction among Asian managers overall, as well as in each of the five geographical subgroups with the exception of Hong Kong, where the perception of a lack‐of‐group bias was only marginally related to job satisfaction. These findings offer theoretical implications regarding organizational justice, cross‐national management, and performance evaluation, as well as practical implications for leveraging organizational justice perceptions of performance evaluation systems for the effectiveness of MNCs. © 2015 Wiley Periodicals, Inc.     

Performance appraisal and culture: practice and attitudes in Hong Kong and Great Britain

This article compares the practice of and attitudes towards performance appraisal for managerial and professional staff in Hong Kong and Britain, and considers the extent to which actual practice and employee preferences are in alignment. Findings suggest that appraisal may be more widespread in Hong Kong than in Britain. However, British appraisal tends to be more participative and to place greater emphasis on discussing objectives, development and career plans. Hong Kong appraisals appear to be more directive and Hong Kong respondents perceive a higher level of 'negative' appraiser behaviour. In spite of this, Hong Kong respondents show if anything slightly more confidence in the utility of appraisal than do British respondents. They show stronger support for appraisal's use for reward and punishment and less support for the objectives-setting and training and development uses than do the British sample. Hong Kong respondents are more likely than their British counterparts to favour involving a more senior manager in appraisal, and they are less likely to prefer more frequent appraisals. There was little evidence that Hong Kong respondents had a stronger preference for group-based appraisal criteria, although they did show more support than the British sample for the use of personality as a basis for appraisal. Overall, the suggestion is that appraisal has been adopted in Hong Kong organizations but that the practice of appraisal has been adapted to suit the cultural characteristics of the society.     

Predicting employee commitment and satisfaction: the relative effects of socialization and demographics

This study compared the relative influences of organizational socialization and demographic variables on job satisfaction and organizational commitment. Organizational variables were assessed by asking 193 Chinese employees in Hong Kong to evaluate socialization within their companies, namely: (1) training received; (2) understanding of the organization; (3) co-worker support; and (4) future prospects within their companies. Dependent variables were standard measures of (affective, continuance and normative) commitment and of satisfaction (with co-workers, pay, promotion, supervisors and the work). Results revealed higher correlations between the socialization measures and job satisfaction and commitment than between the demographic measures and the dependent variables. Although a few demographic measures had some predictive power, the regression analyses confirmed that the socialization variables were consistently stronger predictors of both satisfaction and commitment. Strategic implications for human resource management are discussed.     

Expressions of anger in Israeli workplaces: The special place of customer interactions

We examine norms regarding displays of anger in interactions with different target persons in Israeli organizations. Israeli university students who had been employed in the last year were asked about displaying anger to managers, subordinates, coworkers, customers and customer service representatives. For comparison, data about displays of another negative emotion—fear—were also collected. Our predictions—that anger expression is influenced by the power of the target person—were supported. There was stronger agreement that anger should be suppressed with managers than with coworkers and subordinates. Agreement that anger should be suppressed was also stronger regarding displays toward customers than toward coworkers, subordinates and managers. Norms of suppressing anger were particularly strong for displays toward customers, and far stronger than the parallel of customers' displays toward customer service representatives. These finding are suggested to imply the penetration of global customer service norms to the Israeli economy.     

Coping and adjustment of Western expatriate managers in Hong Kong

This article examines coping mechanisms of Western expatriate business managers in Hong Kong to determine how these strategies are associated with the expatriates’ sociocultural and psychological adjustment. This is important since the few previous studies that have touched upon expatriate coping strategies have focused on other topics which affected both their samples, methodology and findings. Furthermore, effective coping strategies can be taught in cultural training programs better preparing expatriate candidates for their foreign assignments. As predicted, the results indicated a clear positive association between problem focused coping and both sociocultural and psychological adjustment as well as a negative relation between symptom focused coping and both dimensions of adjustment. Implications for international business firms and future research of the findings are discussed in detail.     

An improved subordinate appraisal of bank manager's competence

The three-factor, forty-five item instrument measuring manager's competence in retail banking returns a poor comparative fit index when modelled as an orthogonal or oblique model. Revisiting the original scale development study published in 1996 with a new data set and following a revised research design yields a considerably improved model. A second-order factor, overall managerial competence, is demonstrated to capture a meaning common to the five first-order factors, namely, entrepreneurial style , interpersonal skills , intellectual capacity , participative management style and emotional maturity . The revised model with substantially improved construct validity and reconfirmed instrument reliability can now be used with more confidence by human resource managers. The revised instrument can become a diagnostic tool in identifying areas of incompetence in management, as well as an instrument of feedback to the manager from subordinates. Allowing subordinates to voice their opinions about their immediate supervisor can become a welcome addition to the practice of participative management. The emergence of interpersonal skills and participative management style as the key factors explaining overall managerial competence indicates the importance of assessing managerial candidates on these factors.     

下属潜能的开发——论企业人才从何而来

对企业而言，面对日益激烈的竞争，如何赢得或保住市场都是极为严峻的挑战。能够帮助企业迎接这一挑战的核心竞争力，便是来自高素质高技能的队伍——人才。企业缺乏合适的人才，如若采用挖墙脚方式虽可解救燃眉之急，但无法长期满足企业成长的需要，因此企业应着重于从内部培养。管理人员的一个最重要的职责就是有效地培育与发展下属，并激励团队成员为组织的目标全力以赴。从公司内部培养和提拔业务骨干和中层管理人员，对企业的长远发展来讲是一件非常重要的事情。公司的每位中、高级管理者都有培养下属的责任。但多数企业并没有下大力气实施人才培养，这其中有观念的问题也有实际的障碍。     

Organizational context and human resource management strategy: a structural equation analysis of Hong Kong firms

Previous studies to explain why companies utilize particular human resource management (HRM) strategies have not adequately addressed the influence of contextual variables such as size, location, ownership, competitive pressure, technological change, age and growth. In this study, we investigate the extent to which these contextual variables are related to HRM strategy in seventy-six private-sector firms located in Hong Kong. Our analysis uses structural equations to examine the relationships among contextual variables and HRM strategy to develop and retain managers. The results show that contextual variables have both direct and indirect effects on an organization's HRM strategy. The indirect effects occur through the top management involvement of the HR function within an organization. Use of a human capital development HRM strategy reduces organizational uncertainty about having an adequate supply of managers to meet firm objectives. Contrary to our expectation, in Hong Kong firms, greater reliance on internal development and promotion tends to increase uncertainty and greater competition tends to reduce training investment. Both of these unanticipated relationships may reflect the high mobility of managers peculiar to the Hong Kong labour market.     

Challenges to the psychological contract in Hong Kong

This study investigates empirically the psychological contract of a sample of 205 Hong Kong junior and senior managers. It determines the perceptions of factors that employers and employees see as relevant to the employment relationship, and then analyses perceptions of and attitudes towards recent changes in the Hong Kong business environment. In addition to exploring the nature and content of manager's psychological contracts in Hong Kong, the study explores how contracts are related to and affected by both the external environment and internal management practices. A survey questionnaire is used to measure the promises and commitments perceived to have been made by organizations, and the obligations that employees perceive they owe to their employer. In addition, the actual policies and practices of the employing organizations are determined. The impact of the HRM climate of the employing organizations (actual policies and practices) and the attitudes, expectations and feelings of organizational members about ongoing changes in the business and management environment on this exchange relationship are isolated. The study makes two contributions to the psychological contract literature: it examines the relevance of a psychological contract approach in a nonWestern geographical region; and it moves the concept of HRM preferences more centrally into the psychological contracting literature. This enables a better understanding of the construct in relation to the comparative management literature. The content of the psychological contract is shown to be multi-dimensional. Perceptions of organizational commitments and promises focus around four judgements: an intrinsically satisfying and challenging environment; a secure and rewarding job; equity; and supportive leadership. By Western standards the employee side of the employment relationship 'deal' is more one-sided. The proportion of managers who believe employees are strongly obligated to do certain things for their employers is very high. The study examines the factors that predict employees' psychological contracts. Actual HRM practices are shown to predict perceived commitments and obligations, and the strength of obligation is related to perceived promises and commitments. In contrast to the emphasis on the internal cognitive and individualized conception of the psychological contract in much of the literature, this study indicates that this decontextualizes psychological contracts. The true nature of a psychological contract is shown to be an exchange relationship firmly linked to a culture's reciprocity norms.     

Expatriate selection: back to basics?

Expatriate assignments are becoming increasingly unattractive to potential candidates making the unwieldy myriad of proposed selection criteria of decreasing practical value to internationally assigning firms. When the issue is more to find anyone willing to do the job rather than selecting the best candidate from a large pool of applicants, maybe basic personal characteristics can better guide corporations in their search for suitable expatriate candidates. To examine this proposition, a large sample of Western business expatriates in Hong Kong responded to a mail survey about their sociocultural and psychological adjustment. The results of the hierarchical regression analysis indicated that age had a positive association with general, interaction and work adjustment of the expatriates as well as with psychological adjustment. Gender was not associated with any kind of adjustment whereas being married had a positive relation with work adjustment. The implications for international firms of these results are discussed in detail.     

An Evaluation of Financial Analysts' Earnings Forecasts for Hong Kong Firms

This study evaluates the accuracy and potential bias of analyst forecasts for Hong Kong firms published in the Estimate Directory and compares analyst forecasts to model forecasts. It also examines the association of forecast accuracy with various firm characteristics. The findings of the study show that on an overall basis analyst forecasts for Hong Kong firms are more accurate than model forecasts. Analyst forecasts for Earnings Per Share (EPS) are generally biased towards overstatement. The analysis of the association between forecast accuracy and company characteristics suggests that analyst forecasts for larger firms are comparatively more accurate than for smaller firms. As expected, the results also show that analyst forecasts with shorter time horizons are more accurate than forecasts with longer time horizons. The variability in firms' earnings, beta (market risk) or industry classification have no significant impact on the accuracy of analyst forecasts.     

Personal characteristics and adjustment of Chinese mainland business expatriates in Hong Kong

Chinese mainland business expatriates assigned to Hong Kong were surveyed assessing their socio-cultural and psychological adjustment. The investigation explored the association of a variety of personal characteristics with adjustment to work and life in the territory. The main results of the study showed that expatriates from the neighbouring Guangdong Province, male expatriates, younger expatriates and expatriates who were accompanied by their spouses were better adjusted in Hong Kong than others. On the other hand, expatriates recruited directly from universities were less well adjusted than those hired from other sources. Implications of these findings are drawn and future avenues for improving and extending this kind of exploratory research are discussed.     

Choice of Accounting Method for Valuation of Investment Securities: Evidence from Hong Kong Firms

This study examines whether Hong Kong managers choose “benchmark” or “alternative” valuation method for investment securities, after the Hong Kong SSAP 24 became effective starting with fiscal‐year ending December 31, 1999. Tests are conducted on a sample of 292 firms, out of which 155 Hong Kong firms reported unrealized gains and losses and 128 firms that did not report holding gains/losses, but reported investment securities. The findings indicate that firms with strong relative performance, i.e. current year's EPS higher than that of the last year, chose the alternative valuation method when the investment securities had holding gains and recognized the unrealized holding gains in the equity section of the balance sheet. This finding is consistent with the Cookie Jar hypothesis because these holding gains would be used in the income statement in future periods, when needed. With regard to firms with strong relative performance and holding losses, the findings indicate that the benchmark valuation was used. The losses were reported in the income statement to the extent that they did not reduce the EPS below that of the last year. This finding is consistent with the Income Smoothing Hypothesis, because the use of benchmark valuation reduced EPS of the current year to bring it in line with that of the last year. Evidence on firms with weak economic performance and holding gains or losses provided weak support to the Income Smoothing Hypothesis and Big Bath Hypothesis. Additionally, the results indicate that the firms with high debt‐equity ratio preferred the benchmark method and recorded securities at cost. This treatment provided managers with an opportunity to liquidate or reclassify the securities in future periods and use the accrued gains, when needed. The findings are inconclusive with regard to the impact of bonus plan on the choice of valuation method.