Before moving to a foreign country or culture, it is common for the professional or executive to go through some orientation to learn how to behave and what to expect (ie the do’s and don’ts to survive). For this purpose, many organizations employ the Power Distance Index (PDI) developed by Geert Hofstede (1991) as one of five factors to measure hierarchical relationships between subordinates and leaders, such as respect for authority, in different cultures (i.e., countries). (The other four are the Uncertainty Avoidance Index, Individualism, Masculinity, and Long-Term Orientation.)

People who have tried to survive in new cultures understand how difficult or frightening the acculturation process can be without proper guidance. As we all know, organizations have their unique and ingrained cultures that can be as strange as traveling to a strange land. Unfortunately, it is rare to receive orientation before joining the new organization, unless one is lucky enough to meet a trusted person within the organization before signing up. In most cases, the newcomer receives orientation from her after joining the new organization. The experience can be as traumatic as living in a foreign culture. It would be helpful if there was a public database with objective cultural ratings of organizations (ie public, private, government agencies, universities, etc.) similar to IDPs. When selecting a place of employment, the potential employee could use the PDI qualification. The employer could also use it as an effective recruiting tool.

The Power Distance Index and the Uncertainty Avoidance Index: In his research, Hofstede found 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 on the index, higher than Costa Rica, Germany and the UK at 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 (hard or soft). A high UAI applies to countries that have laws to cover all unexpected situations. Also, in the event that none of the laws in the book apply to a specific situation, there is always a set of laws from which one must be enforced. Portugal has a PDI of 63 but an IAU of 104. Germany has an IAU of 65 compared to the US at 46 and the UK at 35.

The PDI can be seen as an organizational leadership style (autocratic or participatory) and the UAI as organizational politics, rigid and encompassing or flexible. When moving from a low PDI country to a high PDI country, the professional must understand the expectations of new hires. The leader is expected to provide detailed task instructions, as subordinates expect the leader to lead, whereas the opposite is more likely to occur when moving from a high POI to a low POI, and as a result, they may the autocratic professional or executive will not succeed.

The PDI and the Organization: The PDI concept can be applied to qualify organizations within a country. It is feasible to classify the Armed Forces, law enforcement agencies and clandestine workshops as having very high IDPs. Civilian employees moving from low PDI corporations should know what to expect. The same applies to retired Military Officers transitioning from the Armed Forces to civilian organizations. In a recent discussion with a Colonel (name intentionally withheld) at the US Military Academy during the latest annual Information Security workshop, I asked if the guidance provided to retiring military officers includes the need to understand that they may be transitioning from a high IDP to a moderate or low IDP organization. The answer was “not much”. My curiosity was based on my experience at MITER Corporation, where a lot of military officers had to go through some growing pains when civilian professionals just didn’t take orders without asking questions.

Low power distance organizations, like 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 companies (Jim Collins, 2001), such as Kimberly-Clark, General Electric, Walgreens, and Gillette. On the other hand, high power distance organizations have cultures where leadership styles are more authoritarian, with little regard for the initiatives of 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 to reflect on the possible POI for your company. Do you feel at home or in a foreign country? The ability of members of any organization to work together effectively has a significant impact on member well-being, productivity, and organizational survival. In conclusion, an organization’s culture must be weighed against compensation and benefits when considering a change to the new culture. Organizations may wish to develop POIs to retain current employees and for recruitment.