Sunday, December 16, 2012

PDI and how it affects outsourcing

"The PDI norm deals with the need for dependence versus interdependence in society. Inequality in a low-PDI society is seen as a necessary evil that should be minimized; in a high-PDI society, inequality is seen as the basis of societal order. Both low and high-PDI countries have hierarchies, but on the low-PDI side this is an arrangement of convenience. On the high-PDI side the hierarchy is existential: Superiors are seen as superior persons." p. 97, Culture's Consequences, G. Hofstede

The corollary is as follows - in high-PDI countries if somebody is not a superior person he/she cannot be a accepted as superior.

I would add that if the superior is not a superior person he/she will never be accepted as a leader. Subordinates will be silent at work and complain only in private about it. They will have no respect to their boss and that will reflect on the organization.

The impact of the PDI score on the outsourcing is more visible in staff augmentation. If the responsible person on the client side is not a superior person in some way e.g. technical skills she will not able to gain the respect of his colleagues on the supplier side. This disrespect will have a negative impact on the whole relationship.


According to Bulgaria scores high on PDI dimension (score of 70).
Same applies for all Eastern European counties - Poland scores 68.
There is no data for Ukraine but Russia, scoring 93, is among the 10% of the most power distant societies in the world!
From Asia  - India scores 77; China scores 80!
Argentina is a bit different - At a score of 49 Argentina sits in the middle rankings of PDI – and thus far from the much higher values that characterizes all other Latin American countries (leaving aside Costa Rica). In this society status should be underlined. Appearance is very important: the (dark) attire or sober tailleur, the valuable watch, an expensive hotel, these elements allow inferring about power and facilitating the entrée.

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