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A test of the path-goal leadership theory in Taiwan

Colin Silverthorne
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Colin Silverthorne, (2001),"A test of the path-goal leadership theory in Taiwan", Leadership & Organization Development
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 A test of the path-goal leadership theory in Taiwan
Keywords
Leadership, Taiwan,
Organizational effectiveness,
Downloaded by United Arab Emirates University At 22:43 08 March 2016 (PT)
National cultures
Abstract
The path-goal theory of leadership
states that the leader helps
subordinates to achieve their goals
by providing a clear path for them to
follow. This research project used
data collected in Taiwan to test the
applicability of this theory in a non-
western culture. The three groups
of subjects studied (peers,
managers and subordinates),
perceived the level of task structure
to be equivalent. Three aspects of
leadership were measured:
instrumental, supportive and
participative leadership. Leaders
reported that they used each style
of leadership at a statistical
significantly higher level than their
peers believed. Two dimensions of
motivation were also considered:
efforts that lead to performance and
efforts that lead to rewards. Overall,
the results provide some support for
the path-goal theory of leadership.
The theory was supported for the
relationship between managers and
subordinates but not supported for
the relationship between managers
and peers.
The author wishes to thank
Dr Ping-Chi Mao and Dr
April Chi of the California
Management Institute for
their assistance with the
data collection.
Received: January 2001
Revised/accepted:
March 2001
Leadership & Organization
Development Journal
22/4 [2001] 151±158
# MCB University Press
[ISSN 0143-7739]
Colin Silverthorne
University of San Francisco, California, USA
This study analyzed the leadership behavior
and processes of managers in a sample of
Taiwan companies using the path-goal theory
(House, 1971). Research regarding leadership
styles is highly important to Taiwan's
industrial organizations. Taiwan is in a
unique position in that industrial
development was very rapid and occurred
without a parallel increase in management
education. Taiwan is a newly industrialized
country and the use of modern or new
management techniques have not always
occurred. Organizational change is often
slow to occur, so hopefully the findings of
this research will be valuable. Of particular
interest was whether Taiwanese managers
are able to adjust their leadership style and
behavior in order to compensate for changes
in the work environment. Further, it was
important to see how the adjustments that a
manager makes impact subordinates' job
satisfaction and performance. Research
regarding leadership styles is highly
important to Taiwan's industrial
organizations. Taiwan is in a unique position
in that industrial development was very
rapid and occurred without a parallel
increase in management education. A review
of the research literature yields no studies
that have tested this particular leadership
theory in Asia, let alone Taiwan.
The path-goal theory developed by House
(1971) and revised over the next several years
(e.g. House, 1999), argues that leaders can
adjust their own behaviors to adapt to
contingencies and in this way find the most
suitable style for any particular situation.
The theory states that the main goal of the
leader is to help subordinates attain the
subordinates' goals effectively, and to
provide them with the necessary direction
and support to achieve their own goals as
well as those of the organization.
The research register for this journal is available at
http://www.mcbup.com/research_registers
The theory proposes four different kinds of
leadership styles. They are directive or
instrumental, supportive, participative and
achievement-oriented leadership styles. An
effective leader is one who knows which style
to use and when to use it. Directive or
instrumental leaders tell subordinates what
is expected of them and give specific
guidance and enforce rules and procedures.
The supportive leader likes a friendly
environment and gives strong attention to
the needs and wellbeing of his or her
subordinates. The participative leader
involves his or her subordinates in the
decision-making process. Finally, the
achievement-oriented leader seeks to
improve performance, sets high standards,
and shows confidence that his or her
subordinates will achieve these standards,
(Prasad, 1990). Which of these styles a leader
chooses should depend on the nature of the
task and the needs of the subordinates. If the
task is well defined then less guidance is
needed and the leader can be less directive,
whereas, if the task is poorly defined,
subordinates will require more guidance and
direction from the leader. The path-goal
theory argues that a leader should be able to
be either task or relationship oriented as the
particular situation requires (Wren, 1994).
The theory is built around two different
hypotheses or propositions. The first is that
when subordinates take the leaders' behavior
as the source for their present job
satisfaction, the leader's behavior is
generally acceptable and can lead to
employee satisfaction. The behavior of the
leader will be viewed as acceptable to
subordinates only when they perceive it as
either an immediate source of satisfaction or
as instrumental to future job satisfaction.
The second hypothesis or proposition offered
by the theory is that leadership behavior is
motivational. Therefore the more
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[ 151 ]
 Colin Silverthorne
A test of the path-goal
leadership theory in Taiwan
Leadership & Organization
Development Journal
22/4 [2001] 151±158
Downloaded by United Arab Emirates University At 22:43 08 March 2016 (PT)
[ 152 ]
appropriate the leader's behavior, the more
motivational it is likely to be. Motivation of
subordinates is achieved by tying
satisfaction of subordinates' needs to
effective performance and by complementing
the work environment of the subordinates by
providing the necessary coaching, guidance,
and rewards for their effective performance,
(Levanoni and Knoop, 1985). If the work
structure is unclear or there is a significant
amount of environmental pressure, the
directive leadership style will give
subordinates more job satisfaction and result
in more effective work performance. If the
work structure is clear then the supportive
leadership style will allow subordinates to
feel more job satisfaction and result in more
effective work performance. When employees
have a high level of ability and experience,
the directive leadership style is probably not
the most effective and in fact may hamper
employee performance and job satisfaction. If
the organization has a rigid and clear power
system, then the leader needs to be more
supportive than directive.
According to the theory, the role of the
leader is dependent on the subordinate's
working environment and the amount of
structure in the environment. Highly
structured environments that provide a large
amount of organization and role and task
clarity will provide a clear path to work
goals. In this situation, the leader should be
concerned with his or her relationship with
subordinates. The leader supports morale
and reduces the tedium of tasks as much as
possible. If the nature of the work structure
is unclear or changeable, the leader should
assist subordinates by providing direction
and guidance. In this type of situation the
leader should choose task orientation over
relationship orientation.
The path-goal theory has both supporters
and detractors. Schriesheim and DeNisi,
(1981) looked at some of the criticisms of the
theory. One primary criticism is that it does
not have the ability to generate meaningful
predictions. In addition, critics cite the lack
of available empirical support. To counter
these criticisms Schriesheim and DeNisi
conducted several field studies and
concluded the data provided considerable
support for the path-goal theory. Fulk and
Wendler (1982) identified four areas of
research that they considered have not
received sufficient attention, and attempted
to predict outcomes using the path-goal
theory. These four areas were leader
influence up the organization, achievement
orientation, contingent approval and
punitive behaviors. The findings supported
the underlying premises of the path-goal
theory and demonstrated the robustness of
the theory in regard to leader behavior and
that the theory could be used outside the
normal parameters of leadership research.
Another study (Fry et al., 1986) tested the
moderating effects of interdependence
between leader behaviors and satisfaction
and performance. The research, conducted
on sports teams, found strong support for the
performance hypothesis but not the
satisfaction hypothesis. It was suggested that
this result might have occurred because
achievement behavior is very important in
sports teams and participation is less
important because of the team nature of
sports. This would infer that organizations,
with highly interdependent work groups,
need managers who are more instrumental
in controlling and coordinating group
member tasks either through direct
supervision or formalized rules. If group
members work independently of each other,
a coaching, counseling and consideration
leadership style may lead to greater
collective group performance.
Keller (1989) looked at the moderating need
for clarity for the initiating-structure-
performance relationship and the current
and future impacts of these variables. He
found support for the path-goal theory in that
need for clarity does moderate the
relationship between leader initiating
structure and satisfaction. However, Keller
cautioned that additional research in a
greater variety of settings is necessary before
these results can be generalized. In the
workplace, professionals with a low need for
clarity would generally structure their own
work consistent with the organizational and
task needs. However, those professionals
with a high need for clarity should receive
more structure from their supervisors for
unclear tasks to enhance performance and
satisfaction, and then the supervisor can
provide the appropriate leadership behavior.
Keller (1989) noted that the less structure
there is in the work environment, the more
the leader is likely to be motivated to add
structure by coaching and guiding
employees. Initiation of structure, or
directive leadership, was found to be more
effective than other styles of leadership in
situations where tasks are ambiguous,
unstructured or where insufficient feedback
is given to employees (Fry et al., 1986). In this
situation, directed leadership helps to keep
employee effectiveness and satisfaction high
and increase the amount of time and energy
spent on a task.
The relationships between job attitudes,
work environment perceptions and
supervisor's rating of job performance was
 Colin Silverthorne
A test of the path-goal
leadership theory in Taiwan
Leadership & Organization
Development Journal
22/4 [2001] 151±158
Downloaded by United Arab Emirates University At 22:43 08 March 2016 (PT)
investigated by Butler and Ehrlich (1991),
and their results also supported the path-goal
theory. Given the highly structured and
standardized task environment investigated
in this study, there was considerably less
pressure on the leaders in the organization.
However, given the complexity of the tasks
undertaken, the effect and need for
leadership were found to be strong.
In a meta-analysis of studies that had been
conducted to investigate the merits of the
path-goal theory, Woffard and Liska (1993)
concluded that research did not seem to
support the major tenets of the theory,
although they also concluded that much of
the research was flawed. They noted that the
research in general found that effective
leadership is not dependent on the
instrumentality of the leader or that the
elements that get in the way of employees
being successful do not match the theory.
They suggest that the constructs used in
research receive greater attention if effective
research is to be conducted. Further, they
concluded that the most effective leader may
well be the person who identifies the
deficiencies and hindrances in a work
situation and uses behaviors that will
minimize or eliminate them. Communicating
with employees regarding their needs and
problems on the job would be an effective
strategy for managers. In fact, leadership
skills often take second place to job-related
experience and job-related expertise when
managerial promotions and hiring decisions
are made (Campbell et al., 1995).
Based on the findings from the earlier
research, the following hypotheses were
proposed and tested. The path-goal theory
suggests task structure is related to
instrumental leader behavior, resulting in
the following research hypothesis:
H1: Since task structure has a moderating
effect on the relationships between
instrumental behavior, managers will
prefer a high task structure to a low
task structure.
The second research question looked at
whether the manager's leadership style is
accepted by peers and seen as motivational.
This question has to be analyzed in two parts
generating two different hypotheses.
H2: The leadership style of managers is not
seen as accepted by peers.
H3: The leadership style of managers is not
seen as motivational to employees by
their peers.
The third research question is similar to the
second, but in this case the focus is on the
subordinates rather than the peers. This
question asked if the manager's leadership
style is accepted by subordinates and seen as
motivational, and also generates two
hypotheses.
H4: The leadership style of managers is not
seen as accepted by subordinates.
H5: The leadership style of managers are is
not seen as motivational to employees
by their subordinates.
The next research question looked at the role
of strategic rather than tactical decision
making. This concept is a critical one in path-
goal theory since it is important to know
whether participation in tactical rather than
strategic decisions is a better predictor of
performance, generating the following
hypothesis:
H6: Participation in tactical rather than
strategic decisions is a better predictor
of work outcomes.
Method
Subjects
Data were collected from managers, peers
and subordinates for a sample of staff from a
major company in Taiwan. The sample sizes
were as follows: 46 managers, 46 peers and 92
subordinates. An attempt was made to
include all managers in the sample. However,
because of factors beyond the control of the
researcher, three managers were not
available or refused to participate. The peer
group consisted of the same managers acting
in their peer role, so this group also included
46 of the 49 people available. Two
subordinates for each manager participating
in the study were picked at random to be
included in the sample of subordinates, and
these subordinates evaluated their own
manager only. Two employees either refused
to participate or were not available and were
replaced, yielding the sample of 92
subordinates. Both males and females were
included in this sample. It should be noted,
however, that the population of available
managers was predominantly male (40 males
and six females), while the subordinate group
had more of a balance between males and
females (61 males and 31 females).
Instrumentation and data collection
The data were collected from all subjects
using standardized questionnaires
previously validated for use in looking at
path-goal theory. All subjects in this study
completed the task structure scale (House,
1973). This scale consists of ten items
intended to measure the degree to which the
task stimuli and execution rules are simple,
repetitive, and unambiguous. The second
[ 153 ]
 Colin Silverthorne
A test of the path-goal
leadership theory in Taiwan
Leadership & Organization
Development Journal
22/4 [2001] 151±158
Downloaded by United Arab Emirates University At 22:43 08 March 2016 (PT)
[ 154 ]
scale used was the leader behavior scale.
This scale was developed from several
sources and validated by House (1973). This
scale has three sub-scales that measure
instrumental, supportive, and participative
leadership. The third scale that was used
looked at leader expectancy. This scale has
two sub-scales. The first sub-scale measures
efforts that lead to performance and the
second measures efforts that lead to rewards
(House, 1973). A measure of work outcomes
was also needed. The instrument used was
developed by Sagie and Koslowsky (1994).
These authors developed and validated an
instrument that measures acceptance,
satisfaction, effectiveness and time at work.
All of the scales were translated into
Chinese using the double translation method.
This approach assures that the translation is
accurate. Since little research has been done
outside the USA on path-goal theory, there
are no research data to support the validity
and reliability of these instruments in any
language other than English. To overcome
this problem, pilot data were collected and
the validity and reliability process used by
House was replicated to provide support for
the validity and reliability of the
instruments. This study was designed to
evaluate the path-goal theory and any such
study requires consideration of all aspects of
the theory as well as the measurement
instruments used. Thus, the issue of validity
and reliability of the instruments was an
integral part of this study. All three
leadership scales were given to samples of
people in equivalent types of jobs as the
subjects used in the final sample. These
results are based on 80 workers and
managers taking two administrations of the
test two weeks apart. Test-retest reliabilities
for the three scales were as follows: task-
structure, 0.74; leader behavior, 0.77; and
leader expectancy, 0.71. For the work
outcomes scale, the reliability coefficient was
0.73. Split-half reliability scores were also
obtained on a different sample of 75 workers
and managers and the reliability scores were
as follows: task-structure, 0.84; leader
behavior, 0.86; and leader expectancy, 0.79.
All of these coefficients are more than
adequate levels of reliability, and it can be
concluded that the tests are reliable for the
population to be studied.
A measure of concurrent validity was
obtained by asking a group of managers to
evaluate their peers on a ten-point scale for
each of the dimensions on the three scales
and then comparing these results with their
scores on the same scales. These managers
were different from those included in the
final sample. Pearson product moment
correlations yielded a score of 0.42 on the
task-structure scale; a value of 0.52 for the
instrumental leadership scale, of 0.49 for the
supportive leadership scale and 0.65 for the
participative leadership scale; and a value of
0.56 on efforts that lead to performance and a
value of 0.41 on efforts that lead to rewards.
All of these correlations are statistically
significant at the 0.05 level for the sample
size used. The scales used in this study
therefore can be considered to have a
reasonable level of validity for the population
sampled in this study. The validity measure
for the work outcome scale replicated the
procedure used by Sagie and Koslowsky
(1994) and found equivalent measures of
validity of 0.63.
Results
An analysis of variance comparing the level
of task structure between the three groups
indicated that the level of task was perceived
as equivalent by the three groups (F (2, 181) =
1.76, p > 0.05). A comparison of the data from
the task structure scale indicates that the
task structure was higher than the USA
normative data for all three groups; however,
no recent normative data were found so this
comparison is only indicative of a possible
trend. Using the data from the leader
behavior scale for the managers and their
peers, a series of independent t-tests were
computed. The test results were as follows:
for the instrumental leadership scale t (104) =
4.26, p < 0.05; for the supportive leadership
scale, t (104) = 3.92, p < 0.05; and for
participative leadership, t (104) = 3.55, p <
0.05. These results indicate that the managers
scored higher on all three scales than the
scores attributed to them by their peers. This
finding suggests that the peers have a lower
level of acceptance of the managers'
leadership style.
Pearson product moment correlations were
computed for each of the two motivational
factors, efforts that lead to performance and
efforts that lead to rewards, as assigned by
the peers. A strong positive correlation
supports the expectation that leadership style
is related to performance and reward factors.
However, this effect was found only for the
participative leadership score assigned by
peers and the performance factor (Table I).
Independent t-tests were computed using
the data from the leader behavior scale for
the managers and their subordinates. The
results were: for the instrumental leadership
scale t (137) = 1.46, p > 0.05, for the supportive
leadership scale, t (137) = 1.91, p > 0.05; and
for participative leadership, t (137) = 1.59,
 Colin Silverthorne
A test of the path-goal
leadership theory in Taiwan
Leadership & Organization
Development Journal
22/4 [2001] 151±158
Downloaded by United Arab Emirates University At 22:43 08 March 2016 (PT)
p > 0.05. Given that the results for the
managers were equivalent on all three scales
to those attributed to the managers by their
subordinates, the subordinates had a good
level of acceptance of the managers'
leadership style.
A series of correlational analyses were also
computed for each of the two motivational
factors and the scores assigned by
subordinates. The results are summarized in
Table II. A strong positive correlation on
each of these dimensions would be
supportive of a relationship, and this effect
was found for all of the variables measured.
Finally, a regression analysis was used to
investigate each of the work outcomes
measured. These work outcomes were
Discussion
The present study looked at the dimensions
of the path-goal theory developed by House
(1971) as they apply in Taiwan. The relative
effectiveness of leadership styles and the
theoretical frameworks within which these
styles operate have been a major topic of
consideration in the organizational and
leadership literature for more than 50 years.
The path-goal theory was tested in order to
understand the relationship between
leadership styles, preferred levels of task
structure and peer and subordinate
acceptance of a manager's style. There has
been no published research in Taiwan using
the House (1971) model. For this reason, it

acceptance of change, work satisfaction, was necessary to translate all of the

effectiveness and time invested in work. A instruments used in this research into
hierarchical regression analysis of work Chinese and then to test the instruments for
outcomes was computed for the organization their reliability and validity; based on the
being studied and for each of the three groups findings it is reasonable to assume that the
of subjects used in this study (Cohen and instruments have an acceptable level of
Cohen, 1983). The results are reported in reliability and validity.
Table III. Since the path-goal theory suggests that
As can be seen from Table III, the beta task structure has a moderating effect on
values range from 3 to 23 and many of the instrumental behavior, it was expected that
additional variance values (R2) were managers would prefer high task structure.
statistically significant. The results of the test of this hypothesis
showed that the three groups of subjects
perceived the level of task structure to be
Table I equivalent. This finding is important since it
Correlational values between the variables for peers suggests that the different subject groups
Instrumental Supportive Participative perceived task structure levels in the
leadership leadership leadership organization the same way. Given that
members of the organization perceive the
Performance factors ±0.24 0.27* 0.37*
level of task structure as equivalent, the next
Reward factors 0.12 ±0.32* 0.22
concern was to ascertain whether the level of
Note: p < 0.05 (all degrees of freedom 45) task structure could be considered to be high
or low. One way to judge the level of task
structure is to compare the results of the
Table II scores provided by the Taiwanese sample
Correlational values between the variables for subordinates with normative data from the USA. The
groups in Taiwan all perceived the level of
Instrumental Supportive Participative task structure to be higher than those
leadership leadership leadership indicated by US normative scores. While it is
Performance factors 0.44* 0.47* 0.41* not possible to argue without contradiction
Reward factors 0.52* 0.38* 0.37* that the task structure is higher in Taiwan
organizations and no recent normative data
Note: p < 0.05 (all degrees of freedom 91)
are available for this scale, the level of
difference between the two sets of data is
very large, indicating that the task structure
Table III is higher. Further, managers' self-reports
Hierarchical regression analysis of work outcome beta values indicate that they prefer a high level of task
structure and subordinates and peers also
Acceptance Satisfaction Effectiveness Time at work
believe that managers prefer high task
2 2 2
Subjects Beta R Beta R Beta R Beta R2 structure.
Managers 23 0.13* 11 0.03 14 0.06 12 0.08 The second hypothesis tested in this
Peers 10 0.03 16 0.11* 19 0.15* 20 0.14* research study was that the leadership style
Subordinates 16 0.09 19 0.14* 22 0.21* 17 0.18 of the managers would not be acceptable to
their peers. Three scales of leadership were
Notes: * p < 0.05
measured in this study: instrumental,
[ 155 ]
 Colin Silverthorne
A test of the path-goal
leadership theory in Taiwan
Leadership & Organization
Development Journal
22/4 [2001] 151±158
Downloaded by United Arab Emirates University At 22:43 08 March 2016 (PT)
[ 156 ]
supportive and participative leadership. On
all three scales the leaders reported that they
used this style of leadership at a statistical
significantly higher level than their peers
believed. These findings indicate that the
peers have a lower level of acceptance of the
manager's leadership style and supported the
second research hypothesis. This finding is
interesting in that the managers perceived
themselves differently to the way they are
perceived by other managers. Perhaps
managers either have a false sense of their
own leadership style or they downgrade the
leadership of others. Given that the peer
group of managers includes the same
individuals as the manager group, it might
have been anticipated that the perception of
self and others would have been more
consistent. However, the results are
supportive of the path-goal theory.
The leader's behavior is important because
it has a direct impact on the behavior of
followers. This is particularly true in the
area of motivation and performance. This
study looked at two dimensions of
motivation. These were efforts that lead to
performance and efforts that lead to rewards.
Efforts that lead to performance motivate
individuals at an intrinsic level. The
employees will work because their
performance is valued both by the manager
and by themselves. Performance and efforts
that lead to rewards are more extrinsic in
nature. Here individuals are motivated
because they will receive rewards from the
organization in the form of such things as
salary or benefits. These two dimensions of
motivation are important components of the
path-goal theory of leadership, which
emphasizes that the role of the manager is to
provide employees with a clear picture of the
path they are to follow in order that they can
reach the organization's goals.
In order to test this hypothesis, a series of
correlations were computed. The results
were not consistent and provide an
interesting range of findings. In order for the
hypothesis to be supported, it was necessary
to find a consistent set of positive
correlations. This was not the case. The
correlation between the score for the efforts
that lead to performance and the
instrumental leadership score was a non-
statistically significant negative correlation.
However, the correlations between efforts
that lead to performance and the supportive
leadership score and between efforts that
lead to performance and the participative
leadership score were both positive and
statistically significant. The results
comparing the efforts that lead to rewards
were even more inconsistent. The correlation
between the score for the efforts that lead to
rewards and the instrumental leadership
score was a non-statistically significant
negative correlation. The correlation
between efforts that lead to rewards and the
supportive leadership score was a
statistically significant negative correlation.
However, the correlation between efforts that
lead to reward and the supportive leadership
score was a positive, statistically significant
one.
The question is: why were the results
inconsistent? The path-goal theory argues
that there should be consistency among these
three variables. However, instrumental
leadership is most dependent on a task
emphasis, while the supportive leadership
style places more emphasis on relationships.
Research by Bales and Slater (1955) and
others has suggested that these two
components are often in conflict and difficult
for many managers to reconcile and use
effectively. This would suggest that if the
correlation between instrumental leadership
and performance is negative then the
correlation between instrumental leadership
and rewards should be positive. The reverse
relationship should also be true and should
apply to all three dimensions of leadership
measured.
This expectation was only supported for
the supportive leadership dimension. The
results of the data analysis to test the third
hypothesis suggest that the relationship
between style of leadership and the
perception of motivation is more complex
than path-goal theory implies. For example,
if instrumental leadership is rarely used in
the organization, it is reasonable to assume
that individuals with limited exposure to this
style will be less consistent in identifying it.
The fourth and fifth hypotheses are an
extension of the previous two hypotheses, but
this time the comparison was between
subordinates and managers. The forth
hypothesis tested suggested that the
leadership style of the managers would not be
acceptable to their subordinates. On all three
scales the leaders reported that they used this
style of leadership at statistically the same
level as their subordinates believed. These
findings indicate that the subordinates'
acceptance of the manager's leadership style
and managers see themselves in the same
way as their subordinates. This implies that
managers and subordinates have a sense of
leadership style. This finding contradicts the
results for the peers on the same dimensions.
The results show differences for the peers
and are supportive of the path-goal theory of
leadership but no difference for the
 Colin Silverthorne
A test of the path-goal
leadership theory in Taiwan
Leadership & Organization
Development Journal
22/4 [2001] 151±158
Downloaded by United Arab Emirates University At 22:43 08 March 2016 (PT)
subordinates, which does not support the
path-goal theory.
The leader's behavior is important because
it has a direct impact on the behavior of
subordinates, and this study looked at efforts
that lead to performance and efforts that lead
to rewards. As stated earlier, these two
dimensions of motivation are an important
component of the path-goal theory of
leadership. In order to test the fifth
hypothesis, a series of correlations were
computed. The results were consistent with
those predicted by the path-goal theory. In
order for the hypothesis to be supported, it
was necessary to find a consistent set of
positive correlations. This was the case. The
correlation between the score for the efforts
that lead to performance and the
instrumental leadership score, between
efforts that lead to performance and the
supportive leadership score and between
efforts that lead to performance and the
supportive leadership scores were all
positive, statistically significant
relationships. The results comparing the
efforts that lead to rewards were also
consistent, showing a positive correlation
between subordinates' perceptions of
leadership style and the motivational factors
supporting the path-goal theory. The final
hypothesis stated that participation by
employees in organizational decisions that
were tactical rather than strategic was more
likely to be predictive of work outcomes. The
data were analyzed using a regression
analysis and looked at four work outcomes.
These were acceptance of the decision-
making process, satisfaction with the
decision-making process, the perceived
effectiveness of the decision-making process
and the time involved. The type of decision
involvement was derived from the path-goal
theory (Sagie and Koslowsky, 1994).
Decisions that involve initiation of new
products or service are called strategic
decisions. Decisions that involve methods or
procedures are called tactical decisions. This
study paralleled the one conducted by Sagie
and Koslowsky.
The results of the regression analysis using
each work outcome as the dependent
variables indicate that the work outcomes
were attributed primarily to the expectations
of tactical rather than strategic decisions.
Beta values for perceived and expected
tactical decisions in the organization
exceeded the corresponding beta values for
the strategic decisions. Also, for each of the
four variables the additional variance was
statistically significant. This analysis tested
the belief (Schriesheim and DeNisi, 1981) that
the moderators implied by the path-goal
theory need to be examined and tested. The
results indicate that employees found
participation in tactical rather than strategic
decision making more productive. According
to the path-goal theory, tactical decision
making is less ambiguous than strategic
decision making. This difference generates
different expectations in subordinates.
Specifically, subordinates have a greater
expectation of being involved in tactical
rather than strategic decision making. From
a practical perspective, the findings on
decision making imply that the subordinates
have an expectation that they will be
involved in decision making that relates to
methods and procedures. They do not share
this expectation for decisions involving
issues like new product development.
Overall, the results of this study provide
some support for the path-goal theory. The
primary finding, in this study, is that the
path-goal theory can be a useful tool when
applied to organizations in Taiwan, with the
implication that managerial training and
selection should reflect the key components
of the path-goal theory of leadership.
Managers who adapt to the basic principles
of the theory may prove to be better leaders
and managers.
The findings from this research provide
some support for the path-goal theory. It was
supported when the relationship between
managers and subordinates was considered.
The theory was not supported when applied
to the relationship between managers and
their peers. It may reasonably be assumed
that the path-goal theory in general and the
use of a tactical decision-making process
with subordinates can be used to provide a
theoretical framework for managers in
Taiwan. Overall, the path-goal theory,
particularly as it applies to the relationship
between leaders and subordinates, was
supported.
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