Answer: Power distance is the term Hofstede developed to describe how cultures perceive inequality and authority. In cultures with high power distance, organizations are formal and hierarchical, with a clear separation between superiors and subordinates. People are granted respect based on their position alone. In high-power-distance cultures, people typically expect to conduct business with others of equal rank. To send a junior executive to meet with a CEO would be considered an insult to the CEO.
By contrast, cultures with low power distance believe in social equality and therefore have a more relaxed attitude about title and status. Seniority and age alone do not earn someone respect. Younger workers expect to be taken seriously and respected for the quality of their work despite their lower status. In low-power-distance cultures, people progress to a first-name basis much more quickly than in high-power-distance cultures.
Although there is often a correlation between power distance and context, this is not always the case. For example, French culture is relatively low context and direct. However, the French have more respect for formality and authority than people from other low-context cultures, such as Canadians.