10 minutes with Geert Hofstede on Uncertainty Avoidance 01032015

Summary

The concept of 'uncertainty avoidance' is explored, detailing how cultures react to ambiguity. It's distinguished from risk avoidance, with examples highlighting its societal impact. The uncertainty avoidance index (UAI) measures a society's discomfort with uncertainty, with higher scores indicating a greater need for rules and structure. The script contrasts high and low UAI countries, discussing their attitudes towards change, innovation, and diversity. It also links UAI with other cultural dimensions like power distance, influencing organizational structures. Lastly, it notes that while UAI scores fluctuate globally due to economic and political climates, they remain consistent on a national level over time.

Takeaways

• 📚 The concept of 'uncertainty avoidance' was introduced in the 1960s and later applied to national cultures in the 1970s to describe how cultures react to ambiguous and unknown situations.
• 🌍 Uncertainty avoidance is not synonymous with risk avoidance; it refers to the cultural tendency to feel threatened by uncertainty, not just the avoidance of risky situations.
• 🏛️ Cultures can be categorized into uncertainty-avoiding and uncertainty-accepting, with most falling somewhere in between, exhibiting varying levels of stress and anxiety in response to uncertainty.
• 🚦 In uncertainty-avoiding societies, there is a greater need for rules and structure, even if impractical or unenforced, compared to uncertainty-accepting societies that favor fewer rules and more flexibility.
• 🚗 The uncertainty avoidance index (UAI) is used to measure a society's level of uncertainty avoidance, with higher scores indicating a stronger aversion to uncertainty.
• 🌐 Examples of high UAI countries include Russia and Japan, while the Netherlands, Australia, and the United States are on the lower end of the scale.
• 🔍 The UAI can be used to statistically analyze societal phenomena, such as driving speed and the prevalence of alcoholism, which are found to correlate with a society's level of uncertainty avoidance.
• 🏥 In healthcare, uncertainty-avoiding societies tend to have more doctors and fewer nurses, indicating a preference for specialized roles, whereas uncertainty-accepting societies have a more balanced ratio.
• 🌐 The perception of corruption varies with UAI, with higher uncertainty-avoiding countries often perceived as more corrupt, despite being wealthier.
• 📊 When combined with power distance, the UAI helps to categorize countries into different organizational and societal structures, such as market-like, machine-like, pyramidal, or familial.
• ⏳ Over time, while individual country scores on the UAI may not shift significantly, global trends show oscillations in uncertainty avoidance levels, influenced by periods of war, economic crisis, and peace.

Q & A

What does the term 'uncertainty avoidance' refer to in the context of national cultures?

Uncertainty avoidance refers to the extent to which members of a culture or national society feel threatened by ambiguous and unknown situations. It does not equate to risk avoidance but rather reflects the societal response to uncertainty.

How is uncertainty avoidance different from risk avoidance?

Uncertainty avoidance is about the cultural response to ambiguity and the unknown, whereas risk avoidance pertains to the conscious effort to avoid dangerous or risky situations. The former is a cultural trait, and the latter is an individual or collective strategy.

What are the characteristics of uncertainty-avoiding societies?

In uncertainty-avoiding societies, uncertainty is perceived as a threat, there is a higher level of stress and anxiety, aggression and emotions may be vented, a need for rules is emphasized, formalization is valued, and there is a slower adoption of technological innovations.

How do uncertainty-accepting societies view uncertainty?

In uncertainty-accepting societies, uncertainty is seen as a normal part of life, and there is less stress and anxiety. These societies tend to have more tolerance for what is different and prefer fewer rules, with a greater acceptance of breaking them when necessary.

What is the relationship between uncertainty avoidance and job stability?

In uncertainty-avoiding societies, people tend to stay in the same job for as long as possible because changing jobs is seen as one of the most uncertain things one can do, whereas in uncertainty-accepting societies, job changes are more easily accepted.

How is the uncertainty avoidance index (UI) measured, and what does it represent?

The uncertainty avoidance index (UI) is measured by comparing one country to another on a scale from zero for weak uncertainty avoidance societies to 100 for strong uncertainty avoidance societies. It represents the cultural tendency towards dealing with uncertainty.

What are some examples of countries with high and low uncertainty avoidance scores?

High uncertainty avoidance scores are found in Russia, Japan, France, Italy, and Arab countries, while low scores are found in the Netherlands, Australia, the United States, India, Britain, China, and Nordic countries like Denmark.

How can the uncertainty avoidance index be validated and what is it useful for?

The uncertainty avoidance index can be validated through statistical analysis to see what societal phenomena correlate with the index. It is useful for understanding cultural differences in areas such as driving behavior, alcohol consumption, healthcare, perceived corruption, and marketing preferences.

How does uncertainty avoidance relate to power distance in organizational structures?

When combined with power distance, uncertainty avoidance can influence how organizations are perceived and structured. For example, countries with high power distance and high uncertainty avoidance may view organizations as pyramidal structures, while those with low power distance and low uncertainty avoidance may see them as more flexible and market-like.

Do uncertainty avoidance index scores change over time, and if so, how?

While there is no worldwide shift or systematic change in the relative position of countries regarding the UI index, there is an oscillation that occurs worldwide, influenced by periods of war, economic crisis, peace, and economic stability. During times of crisis, the index tends to be higher, and during times of stability, it tends to be lower.