What Is the Power-Distance Index (PDI)?The power-distance index (PDI) is a measurement of the acceptance of a hierarchy of power and wealth by the individuals who make up the general population of a nation, culture, or business. Developed by Dutch social psychologist Geert Hofstede, the PDI ultimately provides insight into the extent to which regular citizens, or subordinates, accept or challenge the authority of the person or people in charge. Show
Hofstede’s PDI is lower in countries and organizations where authority figures work closely with subordinates. The PDI is higher in places with a strong hierarchy. Understanding the Power-Distance IndexHighly structured businesses, societies, and institutions often have high indices. A high index indicates that the hierarchy is clearly defined, present, and unchallenged. Key Takeaways
A low index indicates a less rigid or authoritarian system. The people in a low index society or group are willing to challenge authority and readily interact with authority figures in the expectation that they can influence decisions. PDI and Cultural Dimensions TheoryThe power-distance index is one component of Hofstede’s cultural dimensions theory, which was the first attempt to quantify the differences among cultures. This theory is now applied extensively in a number of fields including cross-cultural psychology, cross-cultural communication, and international business. Driven by factor analysis, the cultural dimensions theory in its original form was based on the results of Hofstede’s global survey of the values of IBM employees. Testing and collection of the results were conducted between 1967 and 1973. Based on these and other results, Hofstede determined that there are six distinct dimensions to every culture: power distance, uncertainty avoidance, individualism versus collectivism, short term versus long term, masculinity versus femininity, and self-restraint versus indulgence.
40The PDI of the United States (The original model had only four dimensions but was later expanded to six. Long-term versus short-term was added after Hofstede performed independent research in Hong Kong, and indulgence versus self-restraint was added in 2010.) Business and the PDIHofstede's theory gained considerable notoriety because of its analysis of cultural and national differences. It has been particularly influential in the business world. With the growth of the global economy, the PDI and the factors that contribute to it have been used to foster an understanding of cultural differences and how they affect international business dealings. The differences in perception of power seem particularly relevant during business negotiations. For example, Austria has a power distance index of approximately 11, while many Arab nations have indices of around 80. Employing Austrian business practices or management styles in an Arab country may be counterproductive, or at the very least can produce a degree of culture shock. The United States, by the way, has a PDI of 40. Power Distance Index (PDI)By: Gloria HolderImagine walking into your first day of work. People are sitting quietly in their cubicles, quickly typing away on their computers. As you finish setting up your workstation, your new boss stomps into the
room and begins yelling at you. After what seems like hours of unfair and judgmental remarks being said to you, he walks away, and you are left there to silently turn back to your work, unable to say a word. Power Distance varies from culture to culture. For example, the scene depicted above would be unlikely to see in the United States. But if one were to be in Saudi Arabia, a country with an extremely high power distance, this scene may not be out of the ordinary. In this section, you will learn what power
distance is, the difference between power distance in the United States and Saudi Arabia, and why understanding power distance is crucial to intercultural communication.
What is Power Distance?Power Distance is the “extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally.” The United States has a lower power distance, where all people feel entitled to a certain amount of power. Saudi Arabia, on the other hand, has a higher power distance, where people recognize that some are given little, or no, power and others are in extremely high powered positions. Culture’s that have a 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.” Those holding inferior positions are willing to question and challenge those in superior positions, whether it comes to decisions making or suggesting a new idea. For example, in a lower power distance culture, if one was to want a promotion at their job, they would be willing to confront their boss and ask for one. In countries with high power distance, the “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 a whole, higher power distance countries believe that inequality is good, everyone has a specific place, people should depend on their leader, and that the powerful should not hide their power and are entitled to many privileges. For example, even if one was to want a promotion at their job, it would simply be out of the question to ask their boss for it. If the boss wanted to give their employee a promotion, they would, and the employee has absolutely no say in the matter. The Power Distance Index Hofstede has created “does not reflect an objective difference in power distribution, but rather the way people perceive power differences.” By looking at the power distance index, we can begin to understand why certain cultures have the values and rules that they do. Power Distance in The United States
While all societies and cultures are not equal, the range of inequality varies from culture to culture. The
United States score is a low 40, which is no surprise. We value the American premise of “liberty and justice for all.” This is also shown through the importance of equal rights in every aspect of the United States government and society. Within American organizations, “hierarchy is established for convenience, superiors are always accessible and managers rely on individual employees and teams for their expertise.” Managers and employees expect to be discussed with during decision-making, and
information is shared between the different levels of leadership and power. Along with this, communication is “informal, direct and participative.“ Power Distance in Saudi ArabiaThe power distance level in Saudi Arabia is one of the highest in the world, being ranked at 80. There are many different reasons for this power distance, the main one being religion. Saudi Arabia is a monarchy. If you are not Muslim, you are not allowed
to enter Saudi Arabia without an invitation. You also may not leave Saudi without an exit permit. Those who visit Saudi Arabia are expected to follow the same thorough Islamic laws as Saudis. The Islamic faith allows this power distance, and it could be said that it even promotes that people be in superior positions without question. Many Muslims believe in this idea of power and unquestioned superiority based off of verses in the Koran. The power distance index not only affects the relationships between the government and citizens, but also has an impact on employer-employee relationships. An article discussing power distance in the workplace in Egypt, a country with the same PDI as Saudi, compared to that in the U.S. states that, "In a comparative survey of 191 Egyptian and 92 U.S.
executives, we explore the relationship between national culture and ethical decision-making within the context of business. Using Reidenbach and Robin's (1988) multi-criteria ethics instrument, we examine how differences on two of Hofstede's national culture dimensions, individualism/collectivism, and power distance, are related to the manner in which business practitioners make ethical decisions. Egypt and the U.S. provide an interesting comparison because of the extreme differences in their
economies and related business development. Our results indicate that respondents from the U.S, individualistic and low in power distance, were likely to view the decision making outcome in ethics scenarios as more unethical than the more collectivistic and high power distance Egyptians, when applying ethical criteria based on justice, utilitarianism, relativism, and (contrary to our predictions) egoism. However, we also found that both Egyptians and Americans rely on justice, utilitarianism,
and relativism in predicting their intentions to behave ethically, and that Americans substitute egoism for justice, when the behavioral intentions of peers are examined."
 Intercultural Communication & Power DistanceWhile power distance may not seem like a necessity when traveling to a new culture, understanding how it affects an individual may actually be lifesaving. The article The Ethnic Theory of Plane Crashes discusses the importance of understanding power distance when having to communicate how to land a plane, and the catastrophes that come with not knowing how to properly communicate between pilots, air traffic controllers and cockpits. The following are excerpts from the article: "Power distance is concerned with attitudes toward hierarchy specifically with how much a particular culture values and respects authority. To measure it, Hofstede asked questions like "How frequently, in your experience, does the following problem occurs; employees being afraid to express disagreement with their managers?" To what extent do the "less powerful members of organizations and institutions accept and expect that power is distributed unequally?" How much are older people respected and feared? Are power holders entitled to special privileges?" (204).
"In low-power distance index countries," Hofstede wrote in his classic text Culture's Consequences: "You can imagine the effect that Hofstede's findings had on the people in the aviation industry. What was their great battle over mitigated speech and teamwork all about, after all? It was an attempt to reduce power distance in the cockpit. Hoftstede's question about power distance - "How frequently, in your experience, does the following problem occur: employees being afriad to express disagreement with their managers?"- was the very question aviation experts were asking first officers in their dealings with captains. And Hofstede's work suggested something that had no occurred to anyone in the aviation world: that the task of convincing first officers to assert themselves was going to depend an awful lot on their culture's power distance rating. That's what Ratwatte meant when he said that no American would have been so fatally intimidated by the controllers at Kennedy Airport. America is a classic low-power distance culture. When push comes to show, Americans fall back on their American-ness, and that American-ness means that the air traffic controller is thought of as an equal. But what country is at the other end of the power distance scale? Columbia. In the
wake of the Avianca crash, the psychologist Robert Helmreich, who has done more than anyone to argue for the role of culture in explaining pilot behavior, wrote a brilliant analysis of the accident in which he argued that you couldn't understand Klotz's behavior without taking into account his nationality, that this predicament that day was uniquely the predicament of someone who ha a deep and abiding respect for authority. Helmreich wrote: The article goes on to discuss how because Klotz see's himself as subordinate, he doesn't think it's his job to solve the crisis. It's the captain's responsibility, and yet the captain is exhausted and isn't saying anything. There's also the "domineering" Kennedy Airport air traffic controllers ordering the planes around. Klotz is trying to tell them that he's in trouble in his own cultural language, speaking "as a subordinate would to his superior." But because the controllers aren't Colombian, and instead low-powered New Yorkers, they don't see the hierarchical gap between themselves and the pilots in the air, and to them, "mitigated speech from a pilot doesn't mean the speaker is being appropriately deferential to a superior. The only thing it means is that the pilot doesn't have a problem. While many may view power distance as a fairly insignificant part of intercultural communication, it clearly is a crucial aspect of knowing when and how to communicate with someone, especially in a situation like the one described above. If the pilots, air traffic controllers and captains would've known how to
communicate based on each other's power distances, many lives could've been saved and tragedies could have been avoided.
Power Distance ConclusionTo conclude what we've learned about power distance, we now know that power distance is the amount of power distributed to authority and subordinate figures in their respective cultures. While some countries, such as the United States, have lower power distances, others like Saudi Arabia have a high power distance. Certain cultural rules, traditions and expectations are based off of the culture's power distance, such as being able to confront a boss about a specific issue, or having to be passive and indirect with a person in a high authority position. Knowing the different power distances in cultures will help one form and maintain intercultural knowledge and understandings. Without this knowledge and understanding, confusion, frustration and even anger may occur. By recognizing and respecting the power distance of a certain culture, the transition of adapting and acclimating to the new culture will be much easier, more efficient and understandable. ReferencesCultural differences - the power distance relationship. (2011, September 18). In The
Articulate CEO. Retrieved December 11, 2012, from http://thearticulateceo.typepad.com/my-blog/2011/09/cultural-differences-the-power-distance-relationship.html Hofstede, G. (n.d.). Research. In http://geert-hofstede.com/united-states.html. Retrieved December 11, 2012, from http://geert-hofstede.com/united-states.html Hofstede, G. (n.d.). What about the usa?. In http://geert-hofstede.com/united-states.html. Retrieved December 11, 2012, from http://geert-hofstede.com/united-states.html Hofstede’s Value Dimensions . (n.d.). In Saudi Arabia: typologies. Retrieved December 11, 2012, from http://dpuadweb.depauw.edu/$1~mkfinney/teaching/Com227/culturalPortfolios/Saudi_Arabia/Typologies.htm Making sense of cross cultural communication. (n.d.). In Clearly cultural. Retrieved December 11, 2012, from http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/ Neil, R. (2009, December 29). "Power distance" and innovation . In Roger neil's blog. Retrieved December 11,
2012, from http://rogerneill.blogspot.com/2009_12_01_archive.html Saudi Arabia business etiquette & culture. (n.d.). In Cyborlink. Retrieved December 11, 2012, from http://www.cyborlink.com/besite/saudi-arabia.htm The need for power and power distance. (n.d.). In Dunya blogs. Retrieved December 11, 2012, from http://blogs.dunyanews.tv/?p=3138 What is an example of low power distance?In some places, the power distance of income inequality is low. This means that there is a small spread between the richest and the poorest of people in society. Austria is an example of a low power distance country on this measure. Saudi Arabia is a high power distance country.
Which countries have a high power distance?Countries with highly structured high indices are regarded as high power distance countries. Basically, they have a PDI score of 80-100. They include: Malaysia (PDI of 100), the Philippines (PDI of 94), Russia (PDI of 93), China (PDI of 80), and Indonesia (PDI of 78).
What is lower power distance?A low power distance culture has lower levels of inequality and less acceptance of inequality. These societies strive for equal distributions of power and wealth and very often place a lot of emphasis on individualism.
Why does Germany have low power distance?With its sizable middle class and decentralized society, Germany has a low power distance. Rather than valuing positions that are based on family connections or age, Germans prefer to put trust in those who demonstrate experience and vast knowledge.
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