An American company is setting up a new office in Saudi Arabia, which has a high Power Distance Index. What should the company consider when selecting a leadership style for this office?

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BlackTom AI · Accepted Answer

The scenario involves a high Power Distance Index (PDI) context in Saudi Arabia, where hierarchical structures and clear authority lines are often the norm. 
Option 1: 'Adopt a more participative and democratic leadership style.' This approach emphasizes shared decision-making and egalitarian norms, which may clash with high-PDI cultures that expect leaders to direct and make final calls. 
Option 2: 'Prioritize more individual freedom and autonomy.' In high-PDI settings, employees typically look to leaders for guidance and control; excessive autonomy can be uncomfortable or ineffective in establishing clear accountability. 
Option 3: 'Encourage greater open communication and feedback.' While open communication is valuable, high-PDI environments may reinterpret unsolicited feedback as challenging authority or disrupting established authority gradients, potentially reducing its effectiveness unless properly framed. 
Option 4: 'Focus on building a flatter organizational structure.' Flatter structures reduce visible hierarchy, which may be at odds with expectations of strong, centralized leadership in high-PDI cultures; this could hinder decisiveness and clear lines of responsibility. 
Option 5: 'Implement a more directive and authoritarian leadership style.' In high-PDI cultures, subordinates often anticipate clear directions, explicit instructions, and strong top-down control from leaders. This style aligns with cultural norms and can facilitate faster decision-making and adherence to policy, reducing ambiguity for local staff. 
Overall, each option contrasts with typical high-PDI expectations to varying degrees, but the directive approach is the one most congruent with such a cultural setting.

An American company is setting up a new office in Saudi Arabia, which has a high Power Distance Index. What should the company consider when selecting a leadership style for this office?

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