Exploring Manager-Employee-Heterophily (MEH) in US-owned and managed plants in Taiwan

In this chapter, we explore Manager-Employee-Heterophily (MEH) and its organizational influence. MEH refers to a phenomenon in the workplace where managers and employees are from different ethnic backgrounds: the managers are typically expatriates from overseas parent-companies, while the general workforce comprises locally recruited employees. Prior studies imply that MEH may affect aspects of organizational culture—particularly factors that relate to human resource management. Our research findings have revealed that MEH does influence aspects of organizational culture, more specifically, Taiwanese employees prefer Taiwanese to US managers. MEH is also shown to influence perceived levels of stress at work, an effect moderated by employees’ psychological acceptance and job tenure. The influence of MEH is largely considered in the context of cultural unfamiliarity between Taiwanese employees and US managers. Expanding our understanding of MEH, and potential sources of (dis)harmony between employees and their managers, may provide organizations with the knowledge required to harness the organizational benefits of MEH and ameliorate negatives through informed human resource management practices. Key points for managers and leaders: 1. Manager-Employee-Heterophily (MEH) describes the phenomenon of managers and employees being from different ethnic backgrounds. 2. Taiwanese employees are stressed, as they suffer from the influence of manager-employee-heterophily. 3. MEH is related to management style preference and perceived stress. 4. Employees’ psychological acceptance and job tenure are important in understanding coping responses to stress.