Distance Between Managers and Employees

High Power Distance: A Threat to Company’s Success

In today’s competitive environment every company strives to reach prosperity by all manner of means. Therefore, each organization has its own unique strategy of becoming successful and recognized. There are number of factors that can be modified and improved in order to achieve outstanding results in company’s performance. Most managers rely immensely on such factors as employees’ qualification, financial indicators, marketing strategy, the number of customers and so on. However, most of superiors do not take into account one of the key elements of efficient company’s operation – the way of communication within the organization. Not only does the form of interaction among employees matter, but also communication style between subordinates and managers. Moreover, it can be even more crucial than other factors as it determines working climate which further affects employees’ performance. Despite the fact that most managers tend to keep a considerable distance with their subordinates in order to make work process strict and precise, it might not be the best alternative. Suppressed employees’ initiative and creativity [1], poor communication and team participation [2], distressing working environment [3]: all these issues caused by high power distance between superiors and subordinates makes work process in a company inefficient.

Firstly, high power distance suppresses workers’ initiative and creativity, as they just have to execute managers’ orders in the way accepted in a company. According to Khatri (2009), in organizations with high power distance, authority and superiority of managers is usually unquestionable which leads to unwillingness of employees to be involved in the decision making process. In such companies, paternalistic style of management is considered to be most favorable. Moreover, employees have a strong belief that only their superiors possess knowledge and skills necessary to bring the organization to success (Dorfman, Javidan, Hanges, Dastmalchian, & House R., 2012). In addition to that, from the managers’ point of view, consulting with their subordinates might be perceived as an evidence of being incompetent. Consequently, in organizations characterized by high power distance methods and attitudes of managers are rarely questioned by employees which restrains potential development and improvement of the company. Moreover, in such organizations subordinates’ creativity and innovation is discouraged (Herbig & Dunphy, 1998). Employees have very little desire to express their ideas and opinions if they feel that they will not be accepted and valued by their superiors.

Nevertheless, not only a substantial number of managers, but also some employees consider strict and directive methods to be more effective for a company to reach its goals. However, Kirkman, Lowe, and Gibson argue that subordinates want their managers to mentor and empower them rather than give precise guidelines in performing their tasks. Employees feel much more valuable for their company if they see the impact of their ideas and decisions on the organization’s development. Therefore, high power distance usually results in low level of job satisfaction among the people employed in such companies (Robert, Probst, Martocchio, Drasgow, & Lawler, 2000).

Besides putting restrictions on employees’ initiative and creativity, high power distance deteriorates communication and decreases team participation in companies. It needs to be point out that effective communication within an organization is one of the key factors of its success and prosperity. However, vertical structure with strict hierarchy and subordination, which is common for organizations characterized by high power distance, makes it hard to create working teams in which employees are able to share their experience, thoughts and ideas, come up with optimal solutions to various issues and help each other to deliver the best results in their daily activities. On the contrary, in low power distance environment both subordinates and superiors can interact with each other freely disregarding their position, professional and personal status, seniority, gender, etc. (Cheung & Chow, 1999). Moreover, due to the fact that low power distance encourage team members to express their opinions and make decisions, it leads further to the high level of confidence while communicating and sharing thoughts and ideas between subordinates and superiors (Hui, Au, & Fock, 2004). Due to the fact that high power distance does not allow communication and team participation to develop, such companies do not use employees’ full potential which decreases the level of their efficiency.

In addition to poor communication and team involvement, high power distance leads to distressing working environment and constant fear of being punished among employees which deteriorates their performance. Naturally, individuals are willing to expose themselves only to those who will accept their opinions and ideas. Consequently, if they feel danger or expect penalties, they are likely to experience fear and, therefore, try to protect themselves by not taking initiative and sharing information with their superiors. In organizations where the manager is perceived as a supervisor rather than a partner, subordinates associate their potential mistakes with harsh punishment (for example, losing job or not receiving a promotion) which provokes stress and fear of making choices (Milliken, Morrison, & Hewlin, 2003). Therefore, high power distance makes subordinates avoid situations that might lead to any kind of penalties and punishment. As a result, working environment with lack of mutual trust and security is created which induces negative emotional effects and decreases job satisfaction.