Power Distance

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 [Page 1299]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.

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