HIERARCHY AND
EGALITARIANISM
CHAPTER 4
Failure of Wal-Mart
• In 1997, Wal-Mart Stores, Inc. (U.S) decided to take
its successful business model to Germany.
• However, in July 28, 2006, Wal-Mart announced it was
closing its German operations and absorbing 1 billion
USD of losses.
• Reasons of failure?
• Ethnocentrism and ignored cultural differences.
Failure of Wal-Mart
US. Wal-Mart policies German point of View
• Smiling greeters stand at the • We reserve smiles only for
store’s doors to welcome all people we know. Women
German consumers as they enter. thought the greeters were
flirting with them.
• German employees were
• We work in our German not
addressed mostly in English.
the foreign one. Why should
we speak English at work?
• The staffers were harassing
• The staffers helped consumers
locate what they needed in the
consumers.
stores • Formal, Hierarchical
• Egalitarian society society
Failure of Wal-Mart
US. Wal-Mart policies German point of View
Rah-rah cheers that start • Rah-rah cheers are
the workday uncomfortable. Especially
the leaders should show
more upscale way.
Prohibition of romantic • The prohibition of romantic
encounters between encounters between
employees and their employees and their
supervisors are violation of
supervisors.
laws
• Role of Work Councils is
Nonunion attitudes very important in a company.
Hierarchy/ Egalitarianism
The way individuals view authority and power
Whether people are entitled to express themselves
How empowered people feel to make independent
decisions and take initiative
Country ranking for hierarchy/
egalitarianism
Egalitarianism Hierarchy
Australia • Brunei
Canada • India
• Indonesia
Denmark
• Iran
Israel
• Japan
Netherland • Malaysia
New Zealand • Pakistan
• Saudi Arabia
• Korea
• United Arab Emirates
Hierarchy/ Egalitarianism
Hierarchy (Hệ thống cấp Egalitarianism (Chủ nghĩa
bậc) quân bình)
Social and organizational Few barriers to opportunity
structures are stratified and personal achievement
Fairly defined ways for Individuals should have
people to interact with one equal access to
another opportunities. People
Rank can be a factor in should be treated with the
sitting at conferences same amount of respect.
Managers empower
People look for direction
employees to make
from their leaders
decisions
Behaviors
Egalitarianism Hierarchy
• People are mobile. They are able to • People believe that one’s
rise in status. position can not change easily.
• Individuals should be treated at the • People at different levels of the
same rights, privileges and
hierarchy should have different
entitlements.
rights.
• People believe in empowerment.
Everyone has a right to be heard. • Dress is typical more formal.
• People typically call one another Leader should dress
by their first names expensively
• People dress comfort, not to • Status symbols, such as cars,
demonstrate their position or fancy clothes, jewelry are
status. important cues to a person’s
• Language is direct and informal rank in society.
Leadership
Egalitarianism Hierarchy
A Leader is seen as a • Employees need greater
peer with additional inputs from the leader to do
the work and more frequent
responsibilities.
supervision.
A Leader foster
• A clear, detailed statement
symbiotic relationship of role expectation.
A leader tries to help • A leader needs to check
employees to make the frequently for understanding
most of their skills and because the employees are
resources. less likely to ask questions.
Decision making
Egalitarianism Hierarchy
Employees feel Decisions are made by
empowered to strong leaders
participate in the debate
and vote in the final
decisions.
Team and Meeting Behavior
Egalitarianism Hierarchy
Meetings are often Meetings are conducted for the
conducted to make purpose of discussing decisions
that already have been made or
decisions and determine will be made by the leader.
implementation tactics. People won’t ask during the
meeting if there is someone of
higher status is present.
Subordinates feel inconvenient
or uncomfortable to give their
own opinions if there is the
presence of senior manager
Power Distance Index (PDI)
Power Distance Index (high versus low).
This refers to the degree of inequality that exists – and is
accepted – between people with and without power.
A high PDI score indicates that a society accepts an unequal,
hierarchical distribution of power, and that people understand
"their place" in the system. A low PDI score means that power is
shared and is widely dispersed, and that society members do not
accept situations where power is distributed unequally.
Application: According to the model, in a high PDI country, such
as Malaysia (100), team members will not initiate any action,
and they like to be guided and directed to complete a task. If a
manager doesn't take charge, they may think that the task isn't
important.
Group Discussion
1. How could a foreign hierarchical manager work
effectively with his/her local egalitarian staffs? Please
give your advice and examples for illustration.
2. How could a foreign egalitarian manager work
effectively with his/her local hierarchical staffs ?
Please give your advice and examples for illustration.
Group Assignment - Step 1
Introduce your chosen country in terms of the elements
of culture that are mentioned in chapter3.
Group Project Assignment – Step 2
1. Is your chosen country a hierarchy or egalitarianism
society?
2. Describe characteristics that illustrate Egalitarianism
or Hierarchy of your chosen country’s culture.
3. How could a Vietnamese manager work effectively
with his/her local egalitarian/hierarchical staffs? Please
give your advice and examples for illustration.