Which of the following is the best definition of uncertainty avoidance?

Uncertainty avoidance deals with a society’s tolerance for uncertainty and ambiguity; it ultimately refers to man’s search for Truth. 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’.

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.

Power Distance Index | Individualism | Masculinity | Uncertainty Avoidance Index | Long-Term Orientation

Professor Geert Hofstede’s Uncertainty Avoidance Index (UAI) is a well-known measure for prototypical estimation of cultural behavior. The index was developed as a result of research Hofstede conducted using data provided by IBM from 70 countries through the late-1960s and early-1970s. The results of his research, including the concepts of Power Distance, Individualism vs Collectivism, Masculinity vs Femininity, as well as Uncertainty Avoidance, have been widely cited in cultural, management, and organizational development literature. [1][2]

Hofstede’s concept of dimension of uncertainty avoidance is simple:it refers to a country or culture’s level of tolerance or comfort for ambiguity, uncertainty, and unstructured situations. Central to this idea are cultural perceptions about the future. Should one attempt to manage future outcomes or should those outcomes unfold without attempts to intervene or manage them?

Cultures scoring high on the UAI or cultures with a high level of uncertainty avoidance are less comfortable with uncertainty and attempt through rules, regulations, laws, controls, and behavioral norms to reduce or manage uncertainty and ambiguity. It is worth noting that high UAI cultures attempt to manage unstructured, ambiguous situations not only through formal, explicit rules and laws, but also through informal, implicit rules.

On the contrary, low uncertainty avoidance cultures are comfortable with uncertainty, and are relaxed in the face of ambiguity or unstructured situations. These cultures do not rely as heavily on rule-oriented mechanisms for uncertainty mitigation, are typically more tolerant of risk taking, and are more open to change. [2][3][4][5][6][7]

High Uncertainty Avoidance

Prototypically high uncertainty avoidant cultures possess the following characteristics:

• The desire for and implementation of both formal and informal governing structures like laws (formal) or dinner etiquette (informal)
• Strategies for risk management or avoidance are utilized throughout the culture in formal and informal ways for safety and security
• Life is perceived as being stressful, and in certain high uncertainty avoidance cultures, open displays of emotions are acceptable
• In educational and family settings, children may receive the impression that the world is hectic, that their teachers or elders have all the answers, and they are taught in a structured manner.  Children in high UAI countries are generally expected to follow traditional gender roles
• Citizens in high UAI cultures tend to be politically disengaged, and high UAI cultures are generally more ritualized and fundamentalist religiously. Catholic, Islamic, and Jewish cultures typically rank high on the UAI
• Socially, high uncertainty avoidance cultures have long histories, are conservative and resistant to the introduction of new ideas and concepts, and lack multicultural populations, which makes xenophobic thinking or behavior more acceptable
• When doing business in high UAI countries, think of ways to mitigate ambiguity – be patient, involve the people in fact-finding and discussions about risk management, provide factual reasoning and plenty of details with any proposal, and expect proposals not fully addressing risks and ambiguities to be rejected
• Countries scoring high on the uncertainty index include: Greece, Belgium, Russia, Italy, Korea, and Mexico [2][5][6][7]

Low Uncertainty Avoidance

Prototypically low uncertainty avoidant cultures possess the following characteristics:

• Fewer formal and informal governing structures reflective of a greater degree of comfort with ambiguity
• Risk and risk -taking are viewed as acceptable means for obtaining greater gains in all areas of life, but risk taking is an expected part of business endeavors
• Life is not perceived as being inherently stressful, and maintaining emotional poise is valued and expected
• In educational and family settings, children may receive the impression that the world is benign, that their teachers or elders may not have all the answers, and they are taught in a less-structured, open-ended manner.  There is less pressure on children in low UAI countries to conform traditional gender roles
• Citizens in low UAI cultures tend to be politically engaged. Low UAI cultures are generally less religiously ritualistic and fundamentalist, and are less likely to persecute others for divergent beliefs. Protestant, Buddhist, Taoist, and Hindu cultures are typically rank low on the UAI
• Socially, high uncertainty avoidance cultures have shorter histories, are receptive to new ideas and concepts, and have more diverse populations through immigration
• When doing business in low UAI countries – expect new ideas to be presented, accepted, and implemented quickly, expect decisions to be made more quickly with less exploration of ambiguities and risk, and be prepared for self-directed employees to execute the responsibilities of their position with little or no intervention
• Countries scoring high on the uncertainty index include: Singapore, the United States, the United Kingdom, India, China, and Indonesia [2][5][6][7]

The concept of uncertainty avoidance necessitates three key considerations for negotiators.  First, it is critical to understand your own culture and cultural leanings.  By understanding your own culture, you have a sense of what the other side may prototypically expect of you in the negotiation.  By understanding your own cultural leanings, or how well you resemble the prototypical model of your culture, you will understand how well you may or may not fit your culture’s prototype.

Second, understand the cultural prototype of the other side.  This information can be useful in establishing a prospective baseline for their cultural leanings.  However, always be ready to adjust your expectations of the other side’s cultural leanings as you negotiate.  Individuals from a given culture may significantly deviate from their culture’s prototype.

Third, by understanding the culture and cultural leanings of both sides of a negotiation, you can think of ways that you may bridge differences that have the potential to arise due to differing cultural expectations. For example, when a high uncertainty avoidance negotiator engages in talks with a low uncertainty avoidance negotiator, there is the potential for friction over issue involving risk tolerance, procedural controls, and adherence to norms.  Being prepared to address these differences will ensure a smoother negotiation process with a higher likelihood of agreement.

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