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In essence this
cultural dimension measures a country or culture's preference for strict laws and regulations over ambiguity
and risk.
Uncertainty avoidance deals with a societys tolerance for uncertainty and ambiguity; It indicates to what
extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations.
Unstructured situations are novel, unknown, surprising, and different from usual. Uncertainty avoiding
cultures try to minimize the possibility of such situations by strict laws and rules, safety and security
measures, and on the philosophical and religious level by a belief in absolute Truth; there can only be one
Truth and we have it.
According to Hofstede's findings, Greece is the most risk-averse culture while Singapore the least. Generally
speaking Protestant countries and those with Chinese influences score low. Catholic, Buddhist and Arabic
speaking countries tend to score high in uncertainty avoidance.
For example, in Germany there is a reasonable high uncertainty avoidance (65) compared to countries as
Singapore (8) and neighbouring country Denmark (23). Germans are not to keen on uncertainty, by planning
everything carefully they try to avoid the uncertainty. In Germany there is a society that relies on rules, laws
and regulations. Germany wants to reduce its risks to the minimum and proceed with changes step by step.
The United States scores a 46 compared to the 65 of the German culture. Uncertainty avoidance in the US is
relatively low, which can clearly be viewed through the national cultures.
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Uncertainty Avoidance
Hofstede (1980) defines the term uncertainty avoidance as, "the extent to which people feel threatened by
uncertainty and ambiguity and try to avoid these situations". Countries with high uncertainty avoidance need
rules and formality to structure life. Uncertainty avoiding societies may be less innovative than uncertainty
accepting .
On the other hand, uncertainty accepting cultures do not demand high levels of documentation and formal
plans and projections before making decisions, they have greater tolerance for different ideas and prefer
autonomy, have less formal organizations, and less regulations and high codes of behavior. People in
countries that are low on the uncertainty avoidance index are also more likely to punish corporations for
irresponsible behavior than people who live in countries with high uncertainty avoidance index.
So how does this manifest in a culture or country?
Below are some of the common traits found in countries that score highly on the uncertainty
avoidance scale:
. Usually countries/cultures with a long history.
. The population is not multicultural, i.e. homogenous.
. Risks, even calculated, are avoided in business.
. New ideas and concepts are more difficult to introduce.
Some of the common traits found in countries that score low on the uncertainty avoidance scale
include:
. Usually a country with a young history, i.e. USA.
. The population is much more diverse due to waves of immigration.
. Risk is embraced as part of business.
. Innovation and pushing boundaries is encouraged.