10 minutes with Geert Hofstede on Uncertainty Avoidance 01032015
Summary
TLDRThe 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
- π 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.
- π 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.
- ποΈ 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.
- π¦ 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.
- π 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.
- π 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.
- π 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.
- π₯ 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.
- π The perception of corruption varies with UAI, with higher uncertainty-avoiding countries often perceived as more corrupt, despite being wealthier.
- π 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.
- β³ 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.
Outlines
π Understanding Uncertainty Avoidance
The concept of 'uncertainty avoidance' was initially used in the 1960s in the context of organizational theory but later expanded to describe cultural differences among nations. It refers to the degree to which individuals in a society perceive ambiguous situations as threatening. This is not synonymous with risk avoidance. The speaker contrasts uncertainty-avoiding societies, which view uncertainty as a threat, with uncertainty-accepting societies, which consider it a normal part of life. The former often exhibit higher stress, anxiety, and a need for strict rules, while the latter are more relaxed, open to change, and less rule-oriented. The speaker also notes that uncertainty avoidance is associated with a preference for formalization and slower adoption of technological innovations. Cultural attitudes towards difference are highlighted, with avoiding societies perceiving difference as dangerous and accepting societies finding it curious. The uncertainty avoidance index (UI) is introduced as a comparative tool to measure a society's stance on this spectrum, with examples of countries at both ends of the scale.
π¦ Cultural Impacts of Uncertainty Avoidance
This paragraph delves into the practical implications of the uncertainty avoidance index (UI). It reveals that higher UI countries tend to have faster driving speeds and higher speed limits, contradicting the misconception that uncertainty avoidance equates to risk avoidance. The UI also correlates with societal phenomena such as alcohol consumption patterns, identification requirements, and healthcare professional ratios. The speaker discusses differences in marketing and advertising strategies across cultures, with uncertainty-avoiding societies favoring clean and pure products and uncertainty-accepting societies preferring convenience and humor in their marketing. The paragraph concludes with an exploration of how UI interacts with power distance, affecting organizational structures and perceptions, and how these cultural dimensions can be visualized through a 2x2 matrix categorizing countries into four distinct types based on their UI and power distance scores.
π Global Variations and Temporal Changes in Uncertainty Avoidance
The speaker discusses the variability of uncertainty avoidance across different countries and how it contrasts with power distance. They present a matrix that categorizes countries into four groups based on high or low uncertainty avoidance and power distance. This categorization influences how people in these countries perceive organizations, ranging from market-like interactions in low uncertainty avoidance societies to family-like structures in high power distance and low uncertainty avoidance cultures. The speaker also addresses the temporal aspect of UI, noting that while there is no significant worldwide shift in UI scores, there are oscillations that correspond to periods of war and economic crisis, with higher UI scores during these times and lower scores during peace and stability. These fluctuations are observed globally but do not alter the relative positions of countries on the UI scale.
π Oscillations in Uncertainty Avoidance Over Time
This final paragraph focuses on the temporal changes in uncertainty avoidance, highlighting that there is a global oscillation in UI scores. During times of war and economic crisis, the index tends to rise, reflecting increased societal anxiety and a desire for certainty. Conversely, in periods of peace and economic stability, the index decreases, indicating a more relaxed societal attitude towards uncertainty. Despite these fluctuations, the relative positions of countries on the UI scale remain consistent, suggesting that while external circumstances can influence societal attitudes, the underlying cultural tendencies towards uncertainty avoidance are relatively stable over time.
Mindmap
Keywords
π‘Uncertainty Avoidance
π‘National Society
π‘Risk Avoidance
π‘Xenophobia
π‘Uncertainty Acceptance
π‘Index
π‘Cultural Dimensions
π‘Formalization
π‘Innovation
π‘Power Distance
π‘Corruption Perception Index
Highlights
Uncertainty avoidance was first used in the 1960s in a book about the theory of the firm.
It was later applied to describe differences between national societies by Hofstede in the 1970s.
Uncertainty avoidance is the cultural response to ambiguous and unknown situations.
It is not synonymous with risk avoidance, as exemplified by different societal reactions.
Societies can be categorized as uncertainty avoiding or uncertainty accepting, with most falling in between.
Uncertainty avoiding societies experience more stress and anxiety compared to uncertainty accepting societies.
Aggression and emotions are handled differently across these societal types.
Uncertainty avoiding societies have a greater need for rules, even impractical ones.
In contrast, uncertainty accepting societies prefer fewer rules and are more open to breaking them when necessary.
Technological innovations are adopted more slowly in uncertainty avoiding societies.
Job stability is valued more in uncertainty avoiding societies due to the aversion to change.
Xenophobia is more prevalent in uncertainty avoiding societies, reflecting fear of the different.
The uncertainty avoidance index (UAI) measures a society's level on a scale from 0 to 100.
Examples of high and low uncertainty avoidance scores among countries are provided.
The index can be used for statistical analysis to correlate with various societal phenomena.
Uncertainty avoiding societies tend to have higher speeds on motorways and more alcoholism.
Healthcare systems differ, with more doctors in uncertainty avoiding societies and more nurses in accepting ones.
Marketing strategies vary, with a focus on cleanliness and purity in avoiding societies, and convenience in accepting ones.
The combination of power distance and uncertainty avoidance influences organizational structures and perceptions.
UAI scores reflect stable values passed down through generations, with little worldwide shift observed.
There is a global oscillation in uncertainty avoidance levels, influenced by periods of war and economic stability.
Transcripts
the term uncertainty
avoidance was used in the
1960s in a well-known American book
about the theory of the firm it was
applied to the level of organizations by
sad and March but I borrowed it uh in
the 1970s for describing differences
between National
societies what does uncertainty
avoidance mean uncertainty avoidance is
the extent to which the members of a
culture of a National
Society feel threatened by ambiguous and
un known situations some people think
that it means risk avoidance but it does
not mean risk avoidance and I have a
good example to show why that is the
case what does uncertainty avoidance
stand for I'm opposing here uh two
extremes uh the uncertainty avoiding
societies and the uncertainty accepting
societies and actually most societies
are somewhere in between in uncertainty
avoiding societies the uncertainty which
is inherent in life is a threat that
must be fought whereas in uncertainty
accepting societies uncertainty is
normal and life is accepted as it
comes which also implies that in
uncertainty avoiding societies there is
more stress and anxiety and uncertainty
accepting societies there is less stress
and
anxiety in certainly avoiding societies
aggression and emotions may sometimes be
vented whereas in uncertainly accepting
societies aggression at the emotions
should be
controlled uncertainty avoiding
societies have a feeling that what is
different is dangerous what is different
is
dangerous whereas un certainly accepting
societies believe that what is different
is
curious there is in un certainly
avoiding societies a need for rules
there is a need for rules even if they
are impractical or even if they are
never practiced there must be rules
there must be a rule whereas uncertainty
accepting societies don't like rules
very much they want fewer rules and even
the rules that are necessary May
sometimes be broken in case of
necessity uncertainty avoing societies
believe in
formalization un certain accepting
societies believe in
deregulation Innovations also
technological innovations
are adopted in uncertainty avoiding
societies rather slow rather carefully
for example the uh modern Information
Systems Innovations have taken more time
in the uncertainty avoiding societies
than in the uncertainty accepting
Societies in uncertainty avoiding
societies people tend to stay in the
same job as long as they can because
changing jobs is one of the most
uncertain things one can do in life in
uncertain accepting societies the
changing of jobs is much more easily
done and finally um and very importantly
uh and certainly voting societies they
are afraid of people who are different
who look different who behave different
who come from elsewhere that's called
xenophobia with an next uh whereas
uncertainty accepting societies are more
tolerant they as more tolerant towards
people who are
different how do we measure uncertainty
avoidance well uh there is no absolute
standards so you can only compare one
country to another differences between
societies is the only thing you can
measure and the position
on the uncertainty avoidance is measured
by an index the uncertainty avoidance
index
UI and the countries we have got data
from have been plotted on a scale which
goes from zero for um weak uncertainty
avoidance societies to 100 for strong
uncertainty avoiding societies now let
me give you some example we have dat for
76 countries on the high side on the top
we find
Russia and we also find
Japan in the um European countries the
Western European countries France is the
scores highest on uncertainty avoidance
uh in uh the other side of the Atlantic
we have Mexico which scores high in
Europe also Italy scores fairly high and
we find high scores in the Arab
countries and just above average in
Germany on the low side we find also not
so far from Germany but on the other
side we find the
Netherlands we find Australia and the
United States and still lower we find
India Britain is quite low China is low
and the Nordic countries especially
Denmark are very low what what can we do
with this index the uncertainty voidance
index how can we validate it what is it
useful for well uh you can do
statistical analysis and see what
phenomena in society are related to this
index and then we discover one thing
which is very interesting which is that
in general uh uncertainty avoiding
societies drive faster people drive
faster on motor ws and even the speed
limits on motorways tend to be higher
there uh uncertainly accepting societies
drive slower and here you show that
uncertainty avoidance is not risk
avoidance because obviously if you if
everybody drives faster there is more
risk in traffic but this is supposed to
be a known risk it is not felt as a
source of
uncertainty in uncertainty avoiding
societies there is more alcoholism and
there is less alcohol abuse in
uncertainty accepting
Societies in uncertainty avoiding
societies it is compulsory for everybody
to always be able to identify yourself
so you should carry your identity card
all the time now in most uncertainty
accepting
societies you have identity cards but
carrying them is optional you only need
to carry them if you want to go
somewhere where where you have to
identify
yourself there's an interesting
difference in health care between the
two kinds of societies in uncertainty
avoiding societies there are relatively
more doctors and fewer nurses and an
uncertainty accepting societies there
are relatively fewer doctors and more
nurses which means that the number of
tasks which on the one side are
performed by the doctor himself can be
delegated to nurses who are less
educated who are supposed to be less
expert uh there's also difference in
perceived
corruption uh there is an organization
called Transparency International that
issues a um corruption perception index
you cannot measure corruption but you
can measure the perception of corruption
and now we are talking about wealthy
countries in particular on the
uncertainty avoiding side the wealthy
countries tend to be perceived as more
corrupt on the
uncertainty accepting side in the
wealthy countries tend to be seen
perceived as less
corrupt there are interesting
differences in the field of marketing
and
advertising for example in the
uncertainty voiding societies clean
products and pure products tend to be
quite popular so cleanness and Purity
are key words in marketing a product
whereas in the uncertainty accepting
side consumers will be more attracted by
easy products by convenience product
readymade
products and this also is seen in
advertisements in ads you will see in
the in certainty avoiding societies more
often an expert but maybe somebody in a
white coat who explains to you why this
product is so important whereas in the
advertising side on the uh uncertainty
accepting societies advertising more
often uses
humor it is very interesting to put the
two dimensions of power distance and
uncertainty avoidance next to each other
now first of all they are not related in
some parts of the world you find a
combination where both are high and
other parts where both are low but
there's also countries where one is high
and the other is low and so I made a
table a 2 by two table where are divided
or 76 countries into high and low uh
uncertainty avoidance uh strong and weak
uncertainty avoidance and high and low
power distance and then if I look at how
people organize themselves you can see
the difference and it is already there
if you ask people what they imagine if
they think of an
organization uh now if you have a small
power distance and a weak uncertainty
avoidance than you are in the uh
Anglo-Saxon countries you are in you
United States you also are in the na
countries of Europe and marginally in
the Netherlands if people think of an
organization it is something like a
market a place where people interact but
nothing is fixed forever you can change
the rules you can change the
circumstances whereas if you have a
small power distance but a strong
uncertainty avoidance then you get to
countries like the German speaking
countries Germany Austria Switzerland
but also the Baltic countries in Europe
and um then you see that people imagine
an organization as a kind of machine a
machine that operates by itself it's not
necessary that the boss intervenes all
the time to make it function but um it's
the uh well oiled
machine now if you move to the corner
where the power distance is large and
the uncertainty voidance is strong then
you get to the typically ltin
countries um including France but also
Russia and the countries of Southeastern
Europe but also some Asian countries
like Japan and Korea and there people I
imagine an organization like a pyramid
of people that's CLE a pyramid where
there is somebody at the top in France
it's called a president director General
p and everybody else is on their proper
place below and the organization
function owing to this structure that
makes it function and finally you have
the combination of large power distance
but weak uncertainty voidance and this
we find in the two largest countries in
the world uh China and India and U there
an organization is rather imagined like
a family um the relationship in an
organization can be compared to the
relationship in a family
and this is also visible in the fact
that there are more family-owned
organizations and family members are
employed in the own organization don't
the uaii scores change over time in a
world where so many things are
changing now first of all the uh scores
reflect the values that have been
transferred from parents to children and
uh there are values that rarely change
after adulthood we got them when we were
children when discussing the other
dimensions uh I'm also referring to
research by Professor burgl from groning
and University who compared answers to
the same questions by two age
cohorts uh successive Generations 30
years
apart uh and in the case of the UI index
we found
no worldwide shift and also no
systematic changes in the position of
countries however there is an other
effect which becomes evident uh we do
have data uh over a period of 80 years
ever since
1935 uh from which we can reconstruct an
certainty avoidance
index uh and we can see that there is an
oscillation in the entire world that
there are periods when all indexes tend
to go up and in periods when they tend
to go down and the periods when
uncertainty avoidance tend to be high is
in periods of war and economic crisis
and in periods of peace and economic
stability the index tend to go down
again so this wave movement is visible
worldwide but it does not affect the
relative position of countries
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