Future Business Leaders of America (FBLA) Organizational Leadership Practice Test

Which of these would be considered high-power-distance culture according to Hofstede's dimensions?

1. Encourages equal distribution of power

2. Prefers concentrated decision-making authority

3. Emphasizes employee input in management

4. Supports flat organizational structures

The correct answer is: Prefers concentrated decision-making authority

In a high-power-distance culture, there is a significant acceptance of unequal power distribution within organizations and societies. This means that hierarchical structures are established and respected, and decision-making authority is often centralized in the hands of a few individuals at the top of the hierarchy. The choice that indicates a preference for concentrated decision-making authority aligns perfectly with this concept. In such cultures, subordinates are less likely to question the decisions made by their superiors and tend to accept the power disparity as a normal aspect of their social and organizational interactions. This results in limited employee participation in the decision-making process, as the power dynamics favor those in positions of authority. In contrast, the other options reflect characteristics typical of low-power-distance cultures where there is greater emphasis on equality, organizational flattening, and valuing employee voices in management decisions. These approaches actively seek to minimize power distances, which is the opposite of what is observed in high-power-distance cultures.