Power Distance Index (PDI)

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Definition of 'Power Distance Index (PDI)'

The Power Distance Index (PDI) is a measure of the extent to which a culture accepts and expects that power is distributed unequally. It was developed by Dutch social psychologist Geert Hofstede in 1979 as part of his study of cultural differences.

The PDI is based on a survey of IBM employees in 62 countries. Respondents were asked to indicate their agreement with the statement, "In my country, a person's position in life is determined by birth." The scores on this item were used to create the PDI index, which ranges from 0 (low power distance) to 100 (high power distance).

Countries with high PDI scores tend to have more hierarchical social structures, in which power is concentrated in the hands of a few individuals. These countries are often characterized by autocratic leadership, social inequality, and a lack of social mobility.

Countries with low PDI scores tend to have more egalitarian social structures, in which power is more evenly distributed. These countries are often characterized by democratic leadership, social equality, and a high degree of social mobility.

The PDI is a useful tool for understanding how different cultures view and use power. It can be used to explain differences in economic development, political systems, and social norms.

The PDI is also a valuable tool for businesses that operate in multiple countries. By understanding the PDI of a country, a business can better understand the local culture and adapt its business practices accordingly.

The PDI is a complex and multifaceted concept. It is important to note that the PDI is not a measure of the fairness or effectiveness of a country's power structure. Rather, it is a measure of how that structure is perceived by the people who live in that country.

The PDI is a valuable tool for understanding how different cultures view and use power. It can be used to explain differences in economic development, political systems, and social norms. It can also be used by businesses to better understand the local culture and adapt their business practices accordingly.

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