Handbook of Principles of Organizational Behavior - Soltanieh ...

620 M IRIAM E REZ
Power distance reflects the level of equality in the society. High power distance means
low equality in the society and a clear power structure in organizations. Employees in such
cultures know their place in the organizational hierarchy, and there are clear status symbols
that differentiate between employees of different organizational levels. On the other
hand, in low power distance cultures, employees feel free to disagree with their superiors
and to express their ideas openly. Malaysia, the Philippines, Arab countries, India and
some of the South American countries are known for their high level of power distance.
In contrast, Israel, Scandinavia, and New Zealand are known for their low levels of power
distance. Recently, a group of more than 80 researchers, headed by Robert House from
the Wharton School, joined together to conduct the Globe Study in 60 different countries.
(House, Hanges, Javidan, Dorfman, and Gupta, 2004 ). This study assessed differences
and similarities in cultural and organizational values, as well as in preferences for leadership
characteristics. Table 33.1 depicts the cultural values of collectivism and power distance
in a sample of eight countries that includes the USA, England, West Germany, East
Germany, Russia, Finland, Japan, and Israel.
The results demonstrate that in this sample, East Germany and Russia are the countries
with the highest level of power distance, and Israel is the most egalitarian country.
Similarly, the USA is the most individualistic culture, and Japan and Russia have the most
collectivistic cultures.
Three additional values that help differentiate cultures are: uncertainty avoidance,
masculinity/femininity, and future time orientation.
Uncertainty avoidance reflects the extent to which members of the society feel threatened
by uncertain or unknown situations. High levels of uncertainty lead to anxiety.
Organizations that seek to avoid uncertainty have formal rules and regulations, clear task
definitions, and low tolerance for deviation from their rules and norms. In opposition,
organizations with a high tolerance for uncertainty are less formal, more fl exible, and
allow for higher levels of heterogeneity in norms and behavior. Cultures with high levels
of uncertainty avoidance are: Switzerland, Sweden, and Singapore; cultures with low
levels of uncertainty avoidance are Greece, Venezuela, and Russia.
Masculine versus feminine cultures – the former pertains to societies in which social gender
roles are clearly defined (i.e. men are supposed to be assertive, tough, and focused on material
Table 33.1 Differences in cultural values across selected countries ( based on House
et al., 2004)
Collectivism
Power distance
Uncertainty avoidance
England 4.08 (C) * 5.15 (B) 4.65 (B)
USA 4.25 (C) 4.88 (B) 4.15 (B)
Israel 4.7 (B) 4.73 (C) 4.01 (C)
Germany (W) 4.02 (C) 5.25 (B) 5.22 (A)
Germany (E) 4.52 (B) 5.54 (A) 5.16 (A)
Russia 5.63 (A) 5.52 (A) 2.88 (D)
Finland 4.07 (C) 4.89 (B) 5.02 (A)
China 5.8 (A) 5.04 (B) 4.94 (A)
Japan
4.63 (A) 5.11 (B) 4.07 (C)
* Different letters mean statistically significant differences between the numbers.