Sunday 22 June 2014

Uncertainty Avoidance

This dimension refers to the extent to which a society, organization, or group relies on established social norms, rituals, and procedures to avoid uncertainty. Uncertainty avoidance is concerned with the way cultures use rules, structures, and laws to make things predictable and less uncertain.
HIGH UNCERTAINTY AVOIDANCE societies’ characteristicsLOW UNCERTAINTY AVOIDANCE societies’ characteristics
  • Use formality in interactions with others.
  • Are orderly and keep meticulous records.
  • Rely on formalized policies and procedures.
  • Take moderate, carefully calculated risks.
  • Show strong resistance to change.
  • Use informality in interactions with others.
  • Are less orderly and keep fewer records.
  • Rely on informal norms for most matters.
  • Are less calculating when taking risks.
  • Show only moderate resistance to change.
Practices represented circumstances as managers perceived them to be, while values represented circumstances, as managers desired them to be.
  • VALUES AND PRACTICESAccounting for all 61 societies, the average score for uncertainty avoidance practices (“as is”) was 4.16 on the 1-to-7 scales, while the average for uncertainty avoidance values (“should be”) was 4.62.   The average score for the U.S.A practices between scales 1 to 7 was 4.15, while the average of values scores was a very similar 4.00.
  •  Table 1: GLOBE's Uncertainty Avoidance Practices (Rank)
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    The table shows that German-speaking Switzerland was the GLOBE society highest in UA practices, while Russia was lowest. Greece was also toward the low end, and the U.S. and India were mid-range. In other words, German-speaking Switzerland is a society with many rules and a high degree of order. Russia and Greece show more of an “anything goes” orientation, in which citizens don’t have much in the way of clear guidance for managing their daily lives.
  • APPLICATION TO LEADERSHIPA high value placed on uncertainty avoidance was strongly and positively associated with the CLT named Team Oriented leadership.  In other words, “the more the society and organization values the reduction of uncertainty, the more they report endorsing team-oriented leadership”.
    Uncertainty avoidance also showed a strong positive relationship with both Humane Oriented leadership, and with Self-Protective leadership .  As the authors note, “being self-protective is one means to reduce uncertainty”.
NOTE: Societies that highly value UNCERTAINTY AVOIDANCE strongly associate the following global leader behaviors (CLTs) with outstanding leadership: TEAM ORIENTED, HUMANE ORIENTED,  AND SELF-PROTECTIVE

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