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Does your culture distribute power equally? A cross cultural theory on Power Distance

One of Geert Hofstede’s five cultural dimensions is power distance which looks at the degree of equality between people in a society.  According to Hofstede, the power distance index shows the extent to which people perceive inequality as normal in an organisation or institution.

In countries with a low power distance like Austria, Denmark or New Zealand, egalitarian attitudes are preferred and decisions are made cooperatively.  Conversely, in countries which have a high power distance such as Malaysia, Saudi Arabia or South Korea, a more formal and vertical hierarchy exists in most areas of society including business.  In Europe, power distance tends to be lower in Northern countries and higher in Southern and Eastern countries.

The table below shows some key differences between cultures with a high power distance and low power distance.

High Power Distance Low Power Distance
Inequality is accepted Inequality is minimised
Rigid, authoritative structure More flexible structure
Centralised decision-making Collective decision-making
Those in power have privileges All have equal rights
Respect for authority Respect for individuality

Cultural awareness training programmessuch as Doing Business in Japan or Working Successfully Across Cultures look at the impact of power distance on business both in specific countries and on a global scale. A familiarity with this dimension will give you an improved understanding of decision-making processes as well as management styles around the world and how to adapt to them.

© Communicaid Group Ltd. 2010


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