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Before relocating to a foreign country or culture, it is customary for the professional or executive to go through some orientation to learn how to behave and what to expect (i.e., the dos and don'ts of survival). For this purpose, many organizations employ the Power Distance Index (PDI) developed by Geert Hofstede (1991) as one of the five factors to measure the hierarchical relationships between subordinates and leaders such as respect for authority, in different cultures (i.e., countries). (The other four are Uncertainty Avoidance Index, Individualism, Masculinity, and Long-term Orientation).
People that have tried to survive in new cultures understand how difficult or scary the acculturation process can be without proper orientation. As we all know, organizations have their unique and entrenched cultures which can be as foreign as traveling in a strange land. Unfortunately, it is rare to receive the orientation prior to joining the new organization, unless one is fortunate enough to know a trusted individual within the organization prior to signing on. In most of the cases, new comer receives his/her orientation after joining the new organization. The experience may be just as traumatic as living in a foreign culture. It would be helpful if a public database exists with objective cultural ratings of organizations (i.e., public, private, government agencies, universities, etc.) similar to the PDIs. In selecting a place of employment, the potential employee could use the PDI rating. The employer could also use it as an effective recruitment tool.
The Power Distance Index and Uncertainty Avoidance Index: In his research, Hofstede concluded that countries with autocratic leaders tend to have very high PDIs. On a scale of 10 to 110, Malaysia has a score of 104, Panama--95, The Philippines--94, China--80, and Saudi Arabia--80. France has a rating of 68, higher than Turkey--66, and Iran and Taiwan at 58. The US scores 40 in the index, higher than Costa Rica, Germany, and UK with 35. Countries with low PDIs include Norway and Sweden--31, Denmark--18, and Austria--11. The Uncertainty Avoidance Index (UAI) is similar to a measure of an organization's policy (rigid or flexible). A high UAI applies to countries that have laws to cover all unexpected situations. Also, in the event that none of the laws on the book applies to a specific situation, there is always a set of laws from which one must be enforced. Portugal has a PDI of 63 but a UAI of 104. Germany has a UAI of 65 compared to the US with 46, and UK with 35.
The PDI can be viewed as an organizational leadership style (autocratic or participative) and the UAI as the organizational policy, rigid and all encompassing or flexible. In relocating from a low PDI country to a high PDI country, the professional should understand the expectations of the new employees. The leader is expected to provide detailed instructions on tasks since the subordinates expect the leader to lead, while the reverse is most likely the case when moving from a high PDI to a low PDI, and as a result, the autocratic professional or executive may not succeed.
The PDI and the Organization: The concept of PDI can be applied to rate organizations within a country. It is feasible to rate the Military, Law Enforcement Agencies, and Sweat Shops as possessing very high PDIs. Civilian employees moving from corporations with low PDIs need to be aware of what to expect. The same is true for retired Military Officers transitioning from the Military to civilian organizations. In a recent discussion with a Colonel (name intentionally withheld) at the US Military Academy during the last annual workshop on Information Security, I asked if the orientation given to retiring military officers include the need to understand that they may be transitioning from a high PDI to a moderate or low PDI organization. The response was "not much". My curiosity was based on my experience at the MITRE Corporation where a large number of military officers had to go through some growing pains when the civilian professionals would not simply take orders without questions.
Low Power Distance Organizations just as with low power distance cultures are characterized by leadership styles that empower subordinates and treat them with respect. These characteristics are evident in Good to Great (Jim Collins, 2001) companies, such as Kimberly-Clark, General Electric, Walgreens, and Gillette. On the other hand, high power distance organizations have cultures where the leadership styles are more authoritarian, with little regard for any initiatives from subordinates. In such organizations, subordinates work for these leaders out of fear and are ready to jump ship as soon as the opportunity presents itself. A retrospective review of the leadership styles of companies such as Enron Inc., WorldCom, and Tyco Inc. shows very high PDIs.
Try reflecting on the possible PDI for your company. Do you feel at home or in a foreign land? The ability of the members of any organization to work effectively together has a significant impact on the well being of the members, productivity, and survival of the organization. In conclusion, the culture of an organization should be weighed along with the compensation and benefits when considering a move to the new culture. Organizations may wish to develop PDIs to retain current employees and for recruitment.
Jide B. Odubiyi, Ph.D., is the President and Chief Technology Officer of SEGMA LLC, a technology development and consulting firm in Silver Spring, MD. Dr. Odubiyi has authored over 40 articles in Business, IT, and Engineering and is a frequent presenter and participant at national and international conferences. He is the author of Blueprint for a Crooked House (ILORI Press, Jan. 2006), a business/management book, and Building Survivable Systems: Principles and Applications for Complex Product, Process, and Organizational Change Models (ILORI Press, Jan. 2007, Business/IT, [http://www.iloripress.com] ).
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