Power Distance Index measures how a culture values hierarchical relationships and authority. Malaysia has the highest PDI score in the world of 100, indicating people generally accept hierarchical order without justification. High PDI can negatively impact organizations by creating unequal relationships where senior management is out of touch and junior staff lack enthusiasm to contribute ideas. While authority is respected, leaders in high PDI cultures should work to reduce distance from subordinates to encourage innovation.
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Power Distance Index in Work Culture
Power Distance Index measures how a culture values hierarchical relationships and authority. Malaysia has the highest PDI score in the world of 100, indicating people generally accept hierarchical order without justification. High PDI can negatively impact organizations by creating unequal relationships where senior management is out of touch and junior staff lack enthusiasm to contribute ideas. While authority is respected, leaders in high PDI cultures should work to reduce distance from subordinates to encourage innovation.
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Power Distance Index in Work Culture
By Dr. Dayana N. H. Chaskar
P ower Distance Index is part of the 5
intercultural dimensions concept introduced by Hofstede in the mid-1970s that gauges how a culture values hierarchical relationships and respects authority. The PDI measures the distribution of company is having their senior management not getting updated information, and believing in laid back treatment while junior management staff are not enthusiastic in pushing ideas forward. Innovation and creativity is almost impossible given these conditions power and wealth between many areas such as people (In Asia, Power Gets in the Way, 2012). Of course, these in a nation, business and culture, and determines the are generalizations. extent to which employees or ordinary citizens submit to authority (Malaysia has the highest Power Distance Index in the world, 2012). PDI is generally lower in countries or organisations in which authority figures work closely with people, and higher in countries or organisations with a more authoritarian hierarchy. The Arab countries, Russia, India and China are countries with high PDIs while Japan, Australia and Canada experience low scores instead. A pattern emerges from the global PDI measurements. Top ranking countries seem to be Power Distance is easily manifested in organisations less developed and appear to be undemocratic or where people with authority openly demonstrate their with imperfect democracies. These are countries with rank and power while their subordinates are deprived leaders who are physically and psychologically distant of important work and decision bound, expecting clear from their citizens. guidance from above. However for any mismanagement, subordinates are expected to shoulder the blame. Earley From the PDI score, alarmingly Malaysia scored and Gibson in 1998 (Theories of Organisational Culture’ in 100 in 2017. The study showed Malaysia’s rating was Organisational Studies) pointed out that Power distance also in line with the general trend in Asian countries is an important element as it influences employee with unusually high levels of power distance. The PDI behaviour and organisational structure and processes. has a scale of 1 to 120. The Hofstede Centre explains this score as people generally accepting a hierarchical Although most individuals and organisations in a order in which everyone fits accordingly into the high Power Distance culture hold high positions, it is jigsaw and does not require further justification (High possible to find some individuals and organisations Power Distance Index kills entrepreneurship, 2017). This can that may not share these same values. In a company, be probably be the outcome from Malaysia’s link to power inequality of the boss-subordinate relationship colonialism and the legacy of the Malay feudal system. is impartial. The relationship between a boss and his subordinates are rarely close or personal. Being in top Power Distance directly affects an organisation by or middle management, leaders should try to eradicate creating inheritance of inequalities, centralisation, ego and hierarchical position to listen and consent subordinates expecting close supervision and to to innovative ideas from their subordinates for the be instructed on their jobs plus the ideal boss is a betterment of their company’s transformation and benevolent autocrat. The usual scenario in a hierarchal continued achievement.