Power Distance Defined

2. Power Distance Defined • By looking at the three questions used to compose the PDI, one can notice something surprising. What is that? • The three questions are part of the same cluster shows that from one country to another there is a close relationship between the reality one perceives and the reality one desires. • In small-power-distance countries, there is limited dependence of subordinates on bosses, and there is a preference for consultation (interdependence between boss and subordinate). • In large-power-distance countries, there is considerable dependence of subordinates on bosses.

3. Power Distance Differences within Countries • Social Class • Education Level • Occupation • The occupations with the lowest status and education level showed the highest PDI values, and those with the highest status and education level produced the lower PDI values.

4. Table 2.2 PDI Values for Six Categories of Occupations (Based on IBM Data from Great Britain, France, and Germany)

5. Power Distance Difference Between Countries: Roots in the Family In the large-power-distance situations: Children expected to be obedient toward their parents. Younger children expected to yield to older children. Independent behavior on the part of a child is not encouraged. In the small-power-distance situation: children are more or less treated as equals as soon as they are able to act. Active experimentation by the child is encouraged Children allowed to contradict their parents. Behavior toward others is not dependent on the other’s age or status. Formal respect and deference are seldom shown.

6. Differences Between Small & Large Power-Distance Societies: General Norm, Family and School • Inequalities- Minimized • Social relationships –Handle with care • They have dependence between less & more powerful people • Parents treat children as equals • Children treat parents and relatives as equals • Inequalities-expected and desired • Balanced with restraint • Less powerful people should be dependent • Parents teach children obedience

7. Differences Between Small & Large Power-Distance Societies: General Norm, Family and School- Continued • Children play no role in old age security of parents. • Students treat teachers as equals • Teachers are expect initiative from students in class • Quality of learning depends on two-way communication and excellence of students • Less educated persons hold more authoritarian values than more educated persons • Educational policy focuses on secondary schools • Children are the source of old age security to parents. • Students give teachers respect ,even outside • Teachers are gurus who transfer personal wisdom • Quality of learning depends on excellence of teacher • Both more and less educated persons show equally authoritarian values. • Educational policies focus on universities

8. Key Differences Between Small and large power-distances at workplace • Hierarchy for role convenience. • Decentralization is popular • Fewer supervisory personnel • Narrow salary range • Managers rely on their own experience and subordinates • Subordinates expect to be consulted • Hierarchy reflects existential inequality • Centralization is popular • More supervisory personnel • Wide salary range • Managers rely on supervisors and on formal rules • Subordinates expect to be told what to do

9. Key Differences Between Small and large power-distances at workplace-Continued • Ideal boss is resourceful democrat • Subordinate-superior relations are pragmatic • Privileges and status symbol are frowned upon. • Manual work has the same status as office work. • Ideal boss is autocrat • Relation are emotional • Privileges and status symbol are normal and popular • White collar jobs are valued more than blue collar jobs.

10. Corruption • We Speak Corruption When People use the Power of their position to illegally enrich themselves Or collaboration of authorities for their private purposes. • Japan China and many countries giving gifts important Ritual.

11. Corruption Perception Index

12. Power Distance and Ideas • All the doers & thinkers (Parents, teachers, Managers, rulers,..) are children of a culture. • Understanding the power differences in different countries help us to appreciate better. • Kong Ze Theory on five basic relationship: • Ruler-subject, father-son, older brother-younger brother, husband-wife & senior friend-junior friend.

13. Power Distance and Ideas • All the doers & thinkers (Parents, teachers, Managers, rulers,..) are children of a culture. • Understanding the power differences in different countries help us to appreciate better. • Kong Ze Theory on five basic relationship: Ruler-subject, father-son, older brother-younger brother, husband-wife & senior friend-junior friend.

14. Power Distance & Ideas • Asian countries • Roman Catholic Church • Niccolo Machiavelli’s model (Italian) • Model of fox and the model of lion • Karl Marx concept of power. • U.S.A Leadership theory – participative Management

15. Difference between Small and Large Power Distance Societies • Small Power Distance • The use of power should be legitimate and follow criteria of good and evil • Skills, wealth, power and status need not go together. • Mostly wealthier countries with a large middle class • All should have equal rights. • Power is based on formal position, expertise, ability to give rewards. • The way to change a political system is by changing the rules. • Large Power Distance • Might Prevails over right: whoever holds the power is right and good. • Skills, Wealth, Power and Status should go together. • Mostly poorer countries with a small middle class. • The powerful should have privileges. • Power is based on tradition or family, charisma & the ability to use force. • The way to change a political system is by changing the people at the top.

16. Small Power Distance • There is more dialogue & less violence in domestic politics. • Pluralist government based on outcome of majority votes • The Political spectrum shows a strong center and weak right and left wings • There are small income differentials in society, further reduced by the tax system. • There is less perceived corruption; scandals end political career. • Large Power Distance • There is less dialogue & more violence in domestic politics. • Autocratic or oligarchic governments based on cooptation. • The political spectrum, if allowed to exist, has a weak center and strong right and left wings. • There are large income differentials in society, further increase by the tax system. • There is more perceived corruption; scandals and usually covered up.

17. Origins of Power Distance Differences • Romance Languages (French, Italian, Portuguese, Romanian, Spanish): Medium to high on power distance scale. • Germanic Language (Danish, Dutch, English, German, Norwegian, Swedish): Low on power distance scale. • Chinese Cultures (Confucian): Medium to high on power distance scale. • Stepwise Multiple regression tool: • Geographical Latitude (Higher Latitude = Lower PDI) • Population Size ((Larger Size = Higher PDI) • Wealth (Richer Country = Lower PDI)

18. Future of Power Distance Differences • Globalization • The Importance in hard work and thrift decreasing and importance of imagination increasing. • Small or large countries decision made internationally: global increase in power distance. • Increase in wealth may increase in power distance.

19. I, We, and They

20. Individualist: “Society in which the interests of the individual prevails over the interests of the group.” Collectivist: “Society in which the interests of the group prevails over the interest of the individual.” HUMAN SOCIETY INDIVIDUALIST COLLECTIVIST

21. General characteristics of Individualism & Collectivism • Individualism • Loose Ties • Look after oneself & one’s immediate family only • Independent of the group • Collectivism • Strong, cohesive in-groups • Protection in return of loyalty • Dependent on the group

22. IBM SURVEY BASED ON WORK GOALS • Important aspects for Individualist pole • Personal time • Freedom • Challenge • Important aspects for Collectivist pole • Training • Physical conditions • Use of skills

23. Individualism Index (IDV) “ A measure for the degree of Individualism in a country’s culture “ Individual Index Values

24. INDIVIDUALISM vs. POWER DISTANCE • Individualism and Power distance are negatively correlated • Large Power distance countries are likely to be more collective • Small Power distance countries are likely to be more individualist

25. Individualism & Collectivism according to Occupation • Occupations can be distinguished as ‘Intrinsic’ versus ‘Extrinsic’ • People in occupations demanding more education, tends to prefer intrinsic elements • People in lower status, lower-education occupations, prefer extrinsic elements

26. Individualism and Collectivism in the Family

27. Language, Personality and Behavior

28. Individualism & Collectivisms at WORK PLACE • Following occupation of their fathers. • Difference between employees in individualist and collectivist societies. • The Hiring process.

29. Relationship between an employee and employer • Managers in individualist and collectivist societies

30. Individualism, Collectivisms & State • Value System • Wealth • Law • Human rights

31. Individualism, Collectivisms & Ideas WHAT WILL YOU CHOOSE? I find that both freedom and equality are important . but if I were to make up my mind for one or the other, I would consider personal freedom more important , that is everyone can live in freedom and develop without hindrance. Certainly both freedom and equality are important. But I were to make up my mind for one or two, I would consider equality more important, that is that nobody is underprivileged and that social class differences are not so strong.

32. Mental Software • Economics • Hierarchy of Human Needs • Physiological • Safety and Security • Belongingness • Esteem and Self-Actualization

33. Origin Of Individualism, Collectivisms Differences • The origins of differences are matter of conjuncture. • IDV- IDV can be fairly and accurately predicted from • The country’s wealth • The country’s geographic latitude • Economic Growth • Population

35. Masculine & Feminine societies A society is called masculinewhen emotional gender roles are clearly distinct: Men are supposed to be assertive, tough, and focused on material success, whereas women are supposed to be more modest, tender, and concerned with the quality of life. A society is called femininewhen emotional gender roles overlap, both men and women are supposed to be modest, tender, and concerned with the quality of life. Masculinity Femininity Men: assertive, tough, and focused on material success. Women: modest, tender, and concerned with the quality of life. Men & Women: modest, tender, and concerned with the quality of life.

36. Masculine pole Feminine pole Masculinity and Femininity Manager Cooperation Living area Employment security Earnings Recognition Advancement challenge

37. Masculine Culture Feminine Culture Differences Between Masculinity and Femininity Societies Relationship and quality of life are important Both men and women should be modest Both men and women can be tender and take care of relationship Both father and mother deal with fact and feelings Challenge and earning are important Men should be assertive and tough Women are supposed to be tender and take care of relationship Father deal with fact and mother with feeling

38. Masculinity index (MAS) Masculine Slovakia 110 Japan 95 Hungary 88 United States 62 (19/70) Feminine Netherlands 14 Norway 8 Sweden 5 • Masculine countries strive for a performance society. • Feminine countries for a welfare society. No poverty

39. Masculinity and Femininity According to Occupation Sales Representatives Engineers and Scientists Technicians and skilled craftspeople Managers of all categories Semiskilled and unskilled workers Office workers

40. Masculinity and Femininity in Family Both boys and girls learn their place in society Children controlled by Parents Children socialize in family Role distribution between husband and wife Role of men and women

41. Masculine culture Feminine culture Masculinity and Femininity in Education Teachers rather praised weaker students to encourage them Failing is a minor incident Job choices are guided by the interest in subject academic curricula vary if the country is wealthy or poor According to research the teachers don’t praised for the effort Failing in school is a disaster Job choices are guided by career opportunities They follow the same academic curricula

42. Masculine Culture Feminine Culture Masculinity and Femininity in Shopping People spend more on the products for home People take their carven or trailer with them for vacation People spend more on making their own stuff Women and men shop for food and cars More fiction is read People buy more expensive watches and jewelry People more often fly on business class on pleasure trips People prefer foreign good than local product Women shop for food, men shop for cars More nonfiction is read

43. MasculineCulture Feminine Culture Masculinity and Femininity in the Workplace Resolution of conflicts: by the strongest Rewards are based on equity Live in order to work More money preferred over more time Careers are compulsory for men, optional for women Resolution: by compromise and negotiation Rewards are based on equality Work in order to live More time preferred over more money Careers are optional for both

44. Key Differences Between Feminine and Masculine Societies: In The Workplace FEMININE Societies Modest Management Compromise and negotiation. Preference for smaller organizations. People work in order to live. Career is optional Agriculture and service industries. MASCULINE Societies Assertive Management Resolution of conflicts by letting the strongest win. Preference for larger organizations. People live in order to work. Career is necessary. Competitive manufacturing and bulk chemistry.

45. The masculinity-femininity dimension affects priorities: Masculinity, Femininity, and the State Solidarity with the weak VS reward for the strong Aid to poor countries VS investing in armaments Protection of the environment VS economic growth Do you know which culture is which and why? What do you conclude?

46. Masculine Culture Feminine Culture Masculinity, Femininity, and Religion Tough religions In Christianity: stress on believing in God Dominant religions stress the male privilege Religions approve sex for reproduction rather than recreation Tender religions In Christianity: stress on loving one’s another Dominant religions stress balancing of the sexes Religions are positive or neutral about sexual pleasure

47. What is Different is Dangerous. Uncertainty Avoidance

48. Uncertainty Avoidance • What is different is dangerous • Extreme ambiguity creates intolerable anxiety • Different cultures have different UAI

49. Definition of Uncertainty Avoidance Index (UAI) Cultural index that measures the extent to which the members of a culture feel threatened by ambiguous or unknown situations. The essence of uncertainty is a subjective experience, a feeling. This feeling is expressed by nervous tension and the requiring of predictability, which creates the need for written and unwritten laws

50. High Uncertainty Avoidance Low Uncertainty Avoidance