Sunday, November 23, 2014

Uncertainty Avoidance

I can see clearly now the rain is gone
I can see all obstacles in my way
--Jimmy Cliff

Uncertainty avoidance is the degree to which a culture prefers structured over unstructured situations. In high uncertainty avoidance cultures, people have high anxiety about uncertainty and ambiguity. Laws, rules, regulations, and controls are designed to reduce uncertainty. Things that are new and different are considered dangerous and risky.

Low uncertainty avoidance cultures are less dismayed by ambiguity and have greater tolerance for various options. There are less rules and more risk taking. Change is more readily accepted.

Hofstede (1978, 1980, 1997) developed the uncertainty avoidance construct in the context of country cultures, although it obviously applies elsewhere.

References

Hofstede, G. 1978. The poverty of management control philosophy. Academy of Management Review, 3: 450-461.

Hofstede, G. 1980. Culture's consequences: International differences in work-related values. Beverly Hills, CA: Sage Publications.

Hofstede, G. 1997. Cultures and organizations: Software of the mind. New York: McGraw-Hill.

1 comment:

dgeorge12358 said...

Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.
~George Soros