Power Distance Essay ⋆ Business Essay Examples ⋆ EssayEmpire

Geert Hofstede identifies five cultural dimensions that assign mathematical scores designating a particular country’s beliefs about each of the dimensions. The five cultural dimensions are Power Distance (PDI), Individualism (IDV), Masculinity (MAS), Uncertainty Avoidance Index (UAI), and Long-Term Orientation (LTO). Hofstede defines the PDI by stating, “the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.” Today, Hofstede’s studies and PDI have had several implications for the U.S. business world and have been the basis for countless additional academic studies on varying cultural indicators.

Power distance is shown as a representation of inequality; however, it needs to be defined from below, not from above. Power distance “focuses on the nature of human relationship in terms of hierarchy.” It is said that there are specific traits that can be linked to high and low power distance. For high power distance, these traits are that “power is a fact of life, everyone has a specific place, those in power emphasize position, respect for authority, and centralized authority.” On the other hand, the traits for low power distance are “class structures, no set hierarchy, those in power minimize position, respect for individuality, and decentralized authority.” As you can see, the characteristics for high and low power distance seem to be complete opposites.

When stating that power distance should be defined from below, it means that “a society’s level of inequality is endorsed by the followers as much as the leaders.” The concepts of power and inequality are common to any society. Any person who has some international experience should be conscious that not all societies are equal; some tend to be even more unequal than others. In Hofstede’s original study with IBM, the scores for the first four dimensions were obtained for 50 countries and three regions. Scores on the fifth dimension were derived from 23 countries from student data. The “power distance scores are high for Latin, Asian and African countries and smaller for Germanic countries.” When focusing on the United States, they score “a 40 on the cultural scale.” This is because they have a more imbalanced allocation of wealth compared to other societies. “As the years go by it seems that the distance between the ‘have’ and ‘have-nots’ grows larger and larger.”

Some research studies have suggested that you can predict power distance by factors such as climate, population size, and wealth. The degree of power distance a country has leads to various consequences for its population. When referring to cultures with high power distance, you may see that “their language is filled with power of hierarchy indicators.” Specific behaviors may also be expected. For instance, people must comply with authority. It does not matter if it is to a boss, parent, or official; it is still expected. In cultures that have low power distance, there is an apparent “emphasis on challenging decisions, expecting autonomy and independence.”

The PDI, like the other cultural dimensions, is calculated through a questionnaire using business employees from each individual country. Scores range from 1 to 100 where >70 is generally considered high and <40 is considered low. As of right now, over 70 countries have been included in Hofstede’s study, which took place between 1967 and 1973. The United States received a score of 40 on its PDI, which is low when compared to the world average of 55. Countries possessing high PDIs include China (80), Panama (95), Guatemala (95), and India (77). Therefore, U.S. employees view themselves more on a level playing field with their bosses, placing less emphasis on the variance in power associated with different levels within a hierarchy.

Managers must be aware of power distance and the corresponding scores of the employees they work with both abroad and domestically. For example, a U.S. manager working in a factory in Guatemala should exhibit a more authoritarian style of leadership as the domestic employees expect their managers to instruct and guide them in their work processes. This again can be contributed to the Guatemalan employees ranking high on power distance. Since the introduction of Hofstede’s study in the 1970s, the results have come a long way from being used only in a business and managerial context.

Other Applications

The PDI has other applications and has been the basis for several other studies. These studies have consisted of topics, such as ethical management, student/faculty communication, women in political positions, teamwork, suicide rates, health risks, and safety in relation to national cultures. One thing to keep in mind is that these studies have not only impacted the United States, but a large number of countries worldwide have also bought into Hofstede’s findings.

A study came out in 2007 that took samples from 10 regions in the United States, Canada, and Mexico that examined the relation of culture and the propensity for internal reporting and whistle-blowing. Results showed that countries with a high PDI and authoritarian environments discouraged the use of an internal reporting system. In addition, it was found that countries possessing a high PDI demonstrated a “positive propensity to whistle-blow.” Therefore, in this case, managers who are more familiar with PDI and the cultural links to ethics management will be better able to generate more effective ethics strategies.

Additional studies using PDI include a study that looked at 53 different regions investigating if Hofstede’s cultural dimensions can indicate whether enrollment rates can affect the career and income of women in the regions studied. Studies found that PDI “has an influence on the positions held by women in the government.” As a result, a higher PDI indicates that women will hold a lower percentage of government/political positions. Another study looked at the impact of power distance on culturally diverse teams. The study focused on two teams, Alpha and Beta, which each consisted of four members from different countries. Alpha contained members from countries with a low PDI, whereas Beta contained members from countries with a high PDI. Researchers found that in regard to team Alpha, “low power distance was one factor that enabled team Alpha to avoid potential conflicts due to miscommunication.” Team Alpha also used a decentralized decision-making process of consensus versus a revolutionary power struggle for determining leadership. Other studies concluded that countries with a high PDI showed a positive correlation with safety in relation to national culture, more formal communications between students and faculty, and a lower probability of cardiac death over the next 20 years of employment.

Hofstede’s studies and PDI have caused U.S. managers to reconsider their methods of management and have been used to support countless additional academic studies on varying cultural indicators.

Bibliography:

Anne Kari Bjorge, “Power Distance in English Lingua Franca Email Communication,” International Journal of Applied Linguistics (v.17, 2007);
Hoi Yan Cheung, “How Culture Affects Female Inequality Across Countries: An Empirical Study,” Journal of Studies in International Education (v.11, 2007);
Edward Conduit, “Submissiveness and Risk of Heart Disease,” Cross-Cultural Research (v.35, 2001);
Rian Drogendijk and Arien Slangen, “Hofstede, Schwartz, or Managerial Perceptions? The Effects of Different Cultural Distance Measures on Establishment Mode Choices by Multinational Enterprises,” International Business Review (v.15/4, 2006);
Jon Ivar Havold, “National Cultures and Safety Orientation: A Study of Seafarers Working for Norwegian Shipping Companies,” Work & Stress (v.21, 2007);
Geert Hofstede, “Geert Hofstede Cultural Dimensions,” www.geert-hofstede.com (cited March 2009);
Bradley L. Kirkman, Kevin B. Lowe, and Cristina B. Gibson, “A Quarter Century of Culture’s Consequences: A Review of Empirical Research Incorporating Hofstede’s Cultural Values Framework,” Journal of International Business Studies (v.37/3, 2006);
Brent MacNab et al., “Culture and Ethics Management: Whistle-Blowing and Internal Reporting Within a NAFTA Country Context,” International Journal of Cross Cultural Management (v.7, 2007);
Trena M. Paulus, “Power Distance and Group Dynamics of an International Project Team: A Case Study,” Teaching in Higher Education (v.10, 2005);
Floyd Webster Rudmin et al., “Questions of Culture, Age and Gender in the Epidemiology of Suicide,” Scandinavian Journal of Psychology (v.44, 2003).

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