We tested the hypothesis that top management team¡¦s effectiveness and Chaxu Geju have an positive effect relationship. Our analysis was base on data from 650 schools , including 120 pairs of team leaders and their team's members .To survey whether the leader's Chaxu Geju which is Guanxi , loyalty and talent has positive effect on team's effectiveness. The first result shows, Team leader will divide team members into insiders and outsiders according to Chaxu Geju . Finally, indicated leader¡¦s criterion of categorization didn¡¦t significant affect the top management team¡¦s effectiveness. The two group insiders and outsiders are the same .

ABSTRACT For long, scholars have been using the research tools invented in the western world to examine the leadership styles developed in western societies. With so many cultural differences between western and eastern societies, it¡¦s very difficult to explain the leadership styles and phenomena of Chinese leaders if only the same research tools are applied. In the past, many researches on the relationship between leadership behavior and leadership effectiveness were only focused on leadership behavior before leadership effectiveness was narrated; however, whether a leadership style works or how effectively it works isn¡¦t decided by the leader only. Thus, in this study, 297 pairs of supervisors and subordinates from 30 banks in central Taiwan (2 regional centers and 63 branches) were selected for an empirical study. Their background information was collected for the analysis of chaxu geju¡Xa criterion of categorization for relationship, loyalty and capability. Every subordinate was categorized into an ¡§insider¡¨ or ¡§outsider¡¨ according to the perception of his/her supervisor. Then, the relationship between the performance of every subordinate and the leadership behavior (patriarchal leadership: authoritarianism, benevolence and moral) of his/her supervisor were analyzed for leadership effectiveness. The findings of this study showed the Chinese supervisors would objectively categorize their subordinates into ¡§insiders¡¨ and ¡§outsiders¡¨ according to the rank of relationship, loyalty and capability. The supervisors tended to give ¡§insiders¡¨ better performance evaluation. The insiders felt they were given more benevolence and moral, but less authoritarianism; the outsiders felt just the opposite. The Chinese supervisors had greater personal attachment to the insiders and allocated more resources to them, so the insiders had better work attitude and performance; the outsiders was the contrary. Without equal treatment, the leadership effectiveness in the insiders and in the outsiders was different. Finally a concrete brief on the limitations of the study, further research direction in the future and how the study was related to the management in the real world was presented. Key words: chaxu geju (a multiplicity of individual distinctions of rank and distance), criterion of categorization, leadership behavior, leadership effectiveness