What is power distance in an organization?

What is power distance in an organization?

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From CEOpedia | Management online

Power distance
See also
  • Uncertainty avoidance
  • Bureaucratization
  • Corporate culture
  • Centralized organizational structure
  • Culture and QMS implementation
  • Individualism
  • Distribution of decision-making powers
  • Acquired needs theory
  • Organization life cycle

Power distance is the degree to which people in a country accept that power in institutions and organizations is distributed unequally. It is a range of expectations and acquiescence on the unequal distribution of power, which is expressed by the members of the organization or the basic social structures, with less influence. The power distance is closely associated with social inequality. Usually is present in such aspects of life as family, school, the workplace and the state.

Effects of power distance

A high power distance index (PDI) means that large inequalities of power and wealth exist and are tolerated in the culture. Such cultures are more likely to follow a class or caste system that discourages upward mobility of its citizens. A low-power-distance ranking indicates the culture discourages differences between power and wealth. These societies stress equality and opportunity.

In small power distance culture people treat parents and their children as equals. Child can make independent decision to learn from mistakes. Relationships in such family are affiliate and there is high autonomy for each of the members.

Large power distance in the family manifests itself in parents requiring unconditional obedience from children. Children cannot take independent decisions, and the authority and position of the older members of the family does not change even when the children become adults.

In organizations and cultures with small power distance workers are treated equally, to each other on the same level, there are minor differences in the level of wages. Subordinate relationship with the employer is held on the principle of cooperation (subordinates expect their managers to consult with them their decisions). The privileges and trappings of status are not recognized.

We cannot determine which kind of power distance allows greater efficiency. Organizations with low power distance achieve better results in the implementation of tasks requiring initiative on the part of subordinates. However, in endeavours that require discipline, more efficient is culture with a large power distance.

Examples of various power distance in cultures

In countries with high power distance index employees are not willing to express their feelings, doubts and disagreements. The relation between subordinate and boss depends on boss who makes all decisions. The system is strictly hierarchical and can be rarely changed. The organization is centralized and employees are always told what to do. There is also a huge gap between the salaries of employees and their superiors.

In contrast, in countries with low power distance index employees are treated by their bosses as partners and are usually consulted then there are some important decisions to be taken. The salary range is rather narrow and all company workers are considered as equal.

Hofstede model and organizational behaviour

Hofstede model of culture dimensions have been influential on OB (organizational behaviour) researchers and managers. Nevertheless, his research has been criticized. First, although the data have since been updated, the original data are from 30 years ago and were based on a single company (IBM). Second, few researchers have read the details of his methodology closely and therefore are unaware of the many decisions he had to make (for example, reducing cultural values to just five). Despite these concerns, Hofstede has been one of the most widely cited social scientists ever.

References

  • Brockner, J., Ackerman, G., Greenberg, J., Gelfand, M. J., Francesco, A. M., Chen, Z. X.,... & Shapiro, D. (2001). Culture and procedural justice: The influence of power distance on reactions to voice. Journal of Experimental Social Psychology, 37(4), 300-315.
  • Hofstede, G., Hofstede, G. J., & Minkov, M. (1991). Cultures and organizations: Software of the mind (Vol. 2). London: McGraw-Hill.
  • Hofstede, G. H., & Hofstede, G. (2001). Culture's consequences: Comparing values, behaviors, institutions and organizations across nations. Sage.
  • Hofstede, G., Neuijen, B., Ohayv, D. D., & Sanders, G. (1990). Measuring organizational cultures: A qualitative and quantitative study across twenty cases. Administrative science quarterly, 286-316.
  • Hofstede, G. (1993). Cultural constraints in management theories. The Academy of Management Executive, 7(1), 81-94.
  • Power distance @ Wikipedia.

Author: Joanna Karp

What is power distance in the workplace?

In business, power distance can be defined as the acceptance (by employees) of the relationship between the highest and lowest ranked members in an organization. Studies have suggested that employees in low power distance workplaces directly impact the distribution of office power.

What is the meaning of power distance?

Power distance refers to the strength of a society's social hierarchy. The Power Distance Index (PDI) measures the extent to which those people who are at the lower end of the hierarchy accept the fact that social stance or power is not distributed equally in the society.

Why power distance is important in a workplace?

Power distance is a measure of how subordinates and people in power share responsibility. In a high-power distance culture, lower-ranking individuals acknowledge power and defer to it, accepting their 'place' in the social strata without questioning authority.

How would power distance apply to a given organization?

How would the Power Distance dimension apply within a given organization? Employees are hoping to rise to higher levels and increase their power within the company. Employees accept that their supervisor and other company officials have much more power than they do.