Wednesday, February 25, 2009

Geert-Hofstede Model

Power Distance Index

PDI is the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Malaysia has a Power Distance Index of 120, and the the U.S. is just about 40. It has big difference between Malaysia and the U.S. because their different governence system. According to the Geert-Hofstede model, we can tell that Malaysia is the country which is highly rule-oriented with laws, rules, regulations, and controls in order to reduce the amount of uncertainty, while inequalities of power and wealth have been allowed to grow within the society. The United States is opposite way to compare with Malaysia. People has more equally power in the States.

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