The first dimension, power distance index (PDI), refers to the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally. In a society, an individual exhibiting a high degree of power distance accept hierarchies where everyone has a place without the need for justification. Societies with low power distance however, seek the equal distribution of power. In organization wise, employees in high power distance context are unwilling to participate in decision-making yet they are content with their top management’s decisions and follow passively. Hence, the flow of communication is top-down, with zero or little horizontal communication. The job scopes are also tightly specified and narrowed where they have limited discretion. Besides, the employees are submissive and unquestioning due to the unlimited power and control of managers.
Secondly, individualism-collectivism (IDV) explains the degree to which individuals are integrated into groups. An individualistic person tends to stress on personal achievement and individual rights. They are protective towards themselves and their immediate family and choose their own affiliations. On the other hand, a collectivist will act predominantly as members of a lifelong and cohesive group. They are loyal to organizations and love being in group. In an individualistic organization, the employees are selfish and treat each o...
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...e dimensions, for example, Japan and United States. Japan has the business ethos that places high value on fixed gender roles, an importance on structure and focus on long-term goals, however, Japan practices relatively low in individualism. In Japanese organization, the managers and employees have an egalitarian relationship where consensus of both parts is required in decision making and top management acts as facilitator to maintain harmony. In contrast, United States has the highest dimension on individualism and lowest in long-term orientation. This country does not reinforce the long-term concept as changes occur rapidly and risk-taking is generally accepted. Power distance and uncertainty avoidance are moderate, which imply that the interactions across power levels are cooperative and stable, as well as fewer rules and does not aim to control desired outcomes.
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