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Theme 5

Assignments

1. Listen to Geert Hofstede's ten-minute lecture on Power Distance (https://www.youtube.com/watch?v=DqAJclwfyCw) and write a summary

The first use of term PD – 1967.

Definition of PD (be Hofstede) – extent to which the less powerful members of institutions and organizations expect and except power is distributed equally.

How PD transfer in the society: relationships “children-parents”

Extremes: large PD (inequality – normal part of society) and small PD (inequality is wrong and should be reduced)

• “Large – small PD” in superiors changing roles
• “Large – small PD” in dividing authority and rules of law
• “Large – small PD” in child education
• “Large – small PD” in organizing
• “Large – small PD” in bosses and subordinates relations

How to measure societal PD. PDI – power distance index (scale from 0 to100)

Data for 76 countries: high PD – Russia, Mexico. Arab, France; small PD – Italy, the US, UK. Denmark, the Netherlands.

Validating PDI:

• High PDI – more income inequality; small PDI – less
• High PDI – smaller middle class; small PDI – large middle class
• High PDI – dictatorship (oligarchy) ; small PDI – legitimated use of power
• High PDI – changing in political system through the revolution; small PDI – changing in political system by evolution
• High PDI – business executives tend to be older; small PDI –younger
• High PDI – innovations come only if they are supported by the hierarchy; small PDI – spontaneous innovations

Changing in scores over time (stable)