Hosftede Paper on Panama

Topics: Geert Hofstede, Culture, Sociology Pages: 3 (859 words) Published: January 29, 2013
Hofstede Global Understanding of Panama

Panama was discovered and settled by the Spanish conquerors in the 16th century. Panama reached independence with Spain in 1821, and joined the Republic of Gran Colombia, mainly integrated by Colombia, Venezuela, and Ecuador. With the United States backing up, Panama successfully was separated from Columbia in 1903, and promptly became a democratic and sovereign country. Power Distance Index (PDI)

Panama power distance index refers to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally. The problem involved is the degree of human inequality that underlies the functioning of each particular society. The values and attitudes found at the national level contrast. It expresses the attitude of the culture towards the inequalities among us. Power distance is defined as the extent to which the less powerful member of institutions and organizations within a country expect and accept that power is distributed unequally. Panama is a hierarchical society scoring at 95 in power distance index. This means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boos is a benevolent autocrat. Individualism (IDV)

The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people’s self-image is defined in terms of “I” or “we. In individualist societies people are supposed to look after themselves or integrated into groups, usually around their direct family only. In a collectivist society people belong to “in groups” that take care of them in exchange for loyalty. Panama is considered a collectivistic society with a score of 11. This means in a close long-term...
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