Question

In: Economics

Write a page about power distance in China.

Write a page about power distance in China.

Solutions

Expert Solution

Power distance is defined as the extend to which the less powerful members of institutions and organizations within a country except and accept that power is distributed unequally. Small power distances culture believe in the importance of minimizing social or class inequalities, reducing hierarchical organizational structures and using power only for legitimate purposes.

China belongs to high power distance culture. The average of PDI (power distance index) of Asian countries is 64 but the PDI of China is 80. That is, inequalities among people are acceptable. The subordinate-superior relationship tends to be polarized and there is not defence against power abuse by superiors. Individuals are influenced by formal authority and sanctions and are in general optimistic about people's capacity for leadership and initiative.

Factories in China are a good representation of China's score on the power distance scale which states that abuse in factories is not uncommon in China and many of the workers either have to deal with the abuse or will be without the job. China's view on power distance is also demonstrated in factories by their management's lack of honesty.

According to Barboza (2008) these factories practice unfair labor procedures such as child labour, forcing employees to work 16- hours days on fast moving assembly lines and paying workers less than minimum wage.

Power distance is very important to remember when doing business with people in China. Their views reflect the idea that there are some people who are powerful and some peoplewho aren't. Leaders shouldn't be offended when Chinese leaders want a bureaucracy instead of an ambiguous social structure whwn doing business. In chinese culture it is more acceptable to have someone in charge rather than multiple people equally in charge.


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