Production and people values: their impact on relationships and leader effectiveness in China

Productivity and people maintenance values have traditionally been considered to contribute to leader effectiveness but the dynamics by which they have their effects have not been clarified. This study proposes that cooperative and competitive goal interdependence mediates the relationship between these values and outcomes. Working in organizations in Shanghai, China, 103 managers indicated their productivity and people values and 206 employees indicated their goal interdependence, leader effectiveness, and their commitment. Structural equation analysis suggested that productivity and people maintenance values affect goal interdependence which in turn results in leader effectiveness and employee commitment. Findings refine the theorizing by suggesting that leader values reduce competitive and independent goals but may not themselves strengthen cooperative goals. Results also suggest that leader values may directly induce employee commitment. The study’s findings and previous research were interpreted as suggesting that productivity and people values coupled with cooperative goals provide a foundation for effective leadership.