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It was likewise found that private-sector employees experience all leadership styles more than their public sector counterparts. These outcomes are relevant to ensuring the satisfaction and retention of staff. Chapter 1 Introduction 1.1 Background of the Study Cross-cultural research has emphasized how culture can be strongly associated with leadership behaviors. Aside from practical needs, it is also of great importance that the influence of culture on leadership is investigated. The notion of the concept of leadership has now highlighted the fact that attitudes, behaviors, and values of leaders can vary due to national cultures (Liu, Fu, and Wu 2008).
Moreover, it has also been asserted that leaders’ effectiveness considerably differs due to the culture with which such leaders function (Fikret-Pasa, Kabasakal, and Bodur 2001). Because strong evidence exists regarding the impact of national culture on the behavior of leaders, the influence of Chinese culture on their styles of leadership has been widely documented (Wang, Tsui, and Xin 2011). The considerable transformation of the People’s Republic of China with regards to its political, economic, and social aspects has caught the world’s interest over the previous years.
Due to a planned economy that has become increasingly competitive during the past two decades, the country’s activities have become more incorporated into the global economy and have been observed to be a very significant player in the international market (Tsui and Lau 2002). China also remains to be the world’s largest Communist nation and is committed to functioning with its cultural influences in controlling and managing businesses. Nonetheless, traditional firms in China have continued to experience major organizational transformations as well as an increased competition due to numerous new and fresh entrepreneurial companies (Tsui and Lau 2002; Moody 2003).
Such conditions develop a sense of uncertainty for firms and establish a setting in which their leaders must possess and demonstrate a high level of good judgment to positively influence organizational outcomes (Boal and Hooijberg 2000).
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