How Do Power- Distance Values Affect Management Practices Across Cultures?

QUESTION: HOW DO POWER- DISTANCE VALUES AFFECT MANAGEMENT PRATICES ACROSS CULTURES?

Cultural differences between countries have strong effects on individual personality and behaviour, as well as on organizational culture. These differences can be a significant barrier for a manager, especially for one who is working in a foreign country. Failure to understand and adapt to these differences may result in culture shock, which can have adverse affects on a manager’s performance. "Power distance" is among one of five cultural measures, devised by Geert Hofstede which helps managers identify and understand the differences between national cultures. A nation can have low, medium or high power distance.

Hofstede designed of five measures, called dimensions, to describe national culture. They include individualism versus collectivism, power distance, uncertainty avoidance, quantity versus quality of life and time orientation.

Power distance is a way to explain the handling of differences between groups existing in a system of inequality. It reflects a culture’s attitude towards human inequality which defines itself inside organizations through a manager subordinate relationship. Where low power distance is present, managers and subordinates have equal relationships with access to near equal levels of power. High power distance thrives inside hierarchical organizations where importance is placed on social status of employees.

Power distance is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. Cultures that endorse low power distance expect and accept power relations that are more consultative or democratic. People relate to one another more as equals regardless of formal positions. Subordinates are more comfortable with and demand the right to contribute to and critique the decision making of those in power. In high power distance countries, less powerful accept power relations that are more autocratic and paternalistic. Subordinates acknowledge the power of others simply based on where they are situated in certain formal, hierarchical positions. As such, the power distance index Hofstede defines does not reflect an objective difference in power distribution, but rather the way people perceive power differences.