The document compares the power distance index and uncertainty avoidance index scores of China and New Zealand based on Geert Hofstede's cultural dimensions. China scores higher on power distance, indicating greater acceptance of unequal power distribution, while scoring lower on uncertainty avoidance, suggesting a more pragmatic approach. New Zealand scores lower on power distance with a preference for consultative decision-making, and moderately on uncertainty avoidance, with a balance of planning and improvisation.

1. (POWER DISTANCE &
UNCERTAINTY)
Group 2:
Chan
Nisreen
Maryam Said
Naisula
8/6/2012

2. Power Distance Index(PDI)
China (CHN) vs New Zealand (NZ)
Power Distance Index
CHN
38%
NZ
62%
Sources from Geert Hofstede (http://geert-hofstede.com)

3. Sources from Geert Hofstede (http://geert-hofstede.com)
Power Distance Index in
China
What about China?
If we explore the Chinese culture through the lens of the 5-D Model, we can get a
good overview of the deep drivers of Chinese culture relative to other world
cultures.
Power distance
This dimension deals with the fact that all individuals in societies are not equal – it
expresses the attitude of the culture towards these inequalities amongst us.
Power distance is defined as the extent to which the less powerful members of
institutions and organisations within a country expect and accept that power
is distributed unequally.
At 80 China sits in the higher rankings of PDI – i.e. a society that believes that
inequalities amongst people are acceptable. The subordinate-superior relationship
tends to be polarized and there is no defense 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. People should not

4. Sources from Geert Hofstede (http://geert-hofstede.com)
Power Distance Index in New
Zealand
What about New Zealand?
If we explore the New Zealand culture through the lens of the 5-D Model, we can get a good
overview of the deep drivers of its culture culture relative to other world cultures.
Power distance
This dimension deals with the fact that all individuals in societies are not equal – it expresses
the attitude of the culture towards these inequalities amongst us. Power distance is defined
as the extent to which the less powerful members of institutions and organisations
within a country expect and accept that power is distributed unequally. It has to do with
the fact that a society’s inequality is endorsed by the followers as much as by the leaders.
New Zealand scores low on this dimension (22). Within organizations, hierarchy is
established for convenience, superiors are always accessible and managers rely on
individual employees and teams for their expertise. Both managers and employees expect
to be consulted and information is shared frequently. At the same time, communication is
informal, direct and participative.

5. 5
OTHER EXAMPLES OF
PDI

6. Sources from Geert Hofstede (http://geert-hofstede.com)
6 PDI in Denmark
What about Denmark?
With a score of 18 points Denmark is at the very low end of this
dimension compared to other countries. This matches perfectly with what
many foreigners in Denmark express: Danes do not lead, they coach and
employee autonomy is required. In fact, Denmark ranks highest amongst
the EU27 countries in terms of employee autonomy. With a very
egalitarian mindset the Danes believe in independency, equal
rights, accessible superiors and that management facilitates and
empowers. Power is decentralized and managers count on the
experience of their team members. Respect among the Danes is
something which you earn by proving your hands-on expertise.
Workplaces have a very informal atmosphere with direct and involving
communication and on a first name basis. Employees expect to be
consulted.

7. Sources from Geert Hofstede (http://geert-hofstede.com)
7 PDI in Malaysia
What about Malaysia?
Malaysia scores very high on this dimension (score of 104) which means that
people accept a hierarchical order in which everybody has a place and which
needs no further justification. Hierarchy in an organisation is seen as reflecting
inherent inequalities, centralization is popular, subordinates expect to be told
what to do and the ideal boss is a benevolent autocrat. Challenges to the
leadership are not well-received.

8. Uncertainty Avoidance Index (UAI)
China (CHN) vs New Zealand (NZ)
8
Uncertainty Avoidance Index
60
50
40
30
20
10
0
CHN NZ
Sources from Geert Hofstede (http://geert-

9. Sources from Geert Hofstede (http://geert-
hofstede.com)
9
Uncertainty Avoidance Index in
China
Uncertainty avoidance
The dimension Uncertainty Avoidance has to do with the way that a society deals
with the fact that the future can never be known: should we try to control the future
or just let it happen? This ambiguity brings with it anxiety and different cultures
have learnt to deal with this anxiety in different ways. The extent to which the
members of a culture feel threatened by ambiguous or unknown situations
and have created beliefs and institutions that try to avoid these is reflected in
the UAI score.
At 30 China has a low score on uncertainty avoidance. Truth may be relative
though in the immediate social circles there is concern for Truth with a capital T and
rules (but not necessarily laws) abound. None the less, adherence to laws and
rules may be flexible to suit the actual situation and pragmatism is a fact of life. The
Chinese are comfortable with ambiguity; the Chinese language is full of ambiguous
meanings that can be difficult for Western people to follow. Chinese are adaptable
and entrepreneurial. At the time of writing the majority (70% -80%) of Chinese
businesses tend to be small to medium sized and family owned.

10. Sources from Geert Hofstede (http://geert-
hofstede.com)
10
Uncertainty Avoidance Index in
New Zealand
Uncertainty avoidance
The dimension Uncertainty Avoidance has to do with the way that a society deals
with the fact that the future can never be known: should we try to control the future
or just let it happen? This ambiguity brings with it anxiety and different cultures
have learnt to deal with this anxiety in different ways. The extent to which the
members of a culture feel threatened by ambiguous or unknown situations
and have created beliefs and institutions that try to avoid these is reflected in
the UAI score.
New Zealand scores 49 on this dimension and is a fairly pragmatic culture in terms
of uncertainty avoidance. This means that both generalists and experts are
needed. There is focus on planning, and they can be altered at short notice and
improvisations made. Emotions are not shown much in New Zealand; people are
fairly relaxed and not adverse to taking risks. Consequently, there is a larger
degree of acceptance for new ideas, innovative products and a willingness to try
something new or different, whether it pertains to technology, business
practices, or foodstuffs.

11. 11
OTHER EXAMPLES OF
UAI

12. UAI in Japan
12
What about Japan?
The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future
can never be known: should we try to control the future or just let it happen. This ambiguity brings with it
anxiety and different cultures have learnt to deal with this anxiety in different ways. The extent to which the
members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and
institutions that try to avoid these is reflected in the UAI score.
At 92 Japan is one of the most uncertainty avoiding countries on earth. This is often attributed to the fact
that Japan is constantly threatened by natural disasters from earthquakes, tsunamis (this is a Japanese
word used internationally), typhoons to volcano eruptions. Under these circumstances Japanese learned to
prepare themselves for any uncertain situation. This goes not only for the emergency plan and precautions
for sudden natural disasters but also for every other aspects of society. You could say that in Japan anything
you do is prescribed for maximum predictability. From cradle to grave, life is highly ritualized and you have a
lot of ceremonies. For example, there is opening and closing ceremonies of every school year which are
conducted almost exactly the same way everywhere in Japan. At weddings, funerals and other important
social events, what people wear and how people should behave are prescribed in great detail in etiquette
books. School teachers and public servants are reluctant to do things without precedence. In corporate
Japan, a lot of time and effort is put into feasibility studies and all the risk factors must be worked out before
any project can start. Managers ask for all the detailed facts and figures before taking any decision. This
high need for uncertainty avoidance is one of the reasons why changes are so difficult to realize in Japan.

13. THANK YOU FOR
LISTENING
8/6/2012