Uncertainty Avoidance
© Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
Sunny Rays publishing 1
Risk Intelligence
series
• Uncertainty Avoidance (UA) is the dimension that expresses the degree to which an organization or a person feels uncomfortable with a
sense of uncertainty and ambiguity.
• Countries that exhibit strong Uncertainty avoidance Index or UAI, maintain rigid codes of belief and behaviour and are intolerant of
unorthodox behaviour and ideas.
• Weak UAI societies maintain a more relaxed attitude in which practice counts more than principles.
• People in cultures with high uncertainty avoidance tend to be more emotional, they try to minimize the occurrence of unknown and
unusual circumstances and to proceed with careful changes step by step by planning and by implementing rules, laws and regulations.
• In contrast, low uncertainty avoidance cultures accept and feel comfortable in unstructured situations or changeable environments and
try to have as few rules as possible. People in these cultures tend to be more pragmatic, they are more tolerant of change.
Uncertainty Avoidance
Sunny Rays publishing 2
© Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
Risk Intelligence
series
• There are many ways to detect if one has adopted a high standard of Uncertainty Avoidance. For example, the use of
formality in interaction with others, dependence of formalized policies and procedures, apparent resistance of change are all
characteristics of high uncertainty avoidance.
• Basic characteristics of High Uncertainty Avoidance –
o follow a strict structure with rules and expertise
o have high security (avoiding the unfamiliar)
o are generally hectic, stressful or even emotional.
High Uncertainty Avoidance
Sunny Rays publishing 3
© Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
Risk Intelligence
series
• In contrast people can also exhibit characteristics of low Uncertainty Avoidance. Unlike high UA, those with a low level use
informality in interaction with others, they often rely on informal norms and behaviours in most matters. Also, they will
show moderate resistance to change.
• Signs of low uncertainty avoidance
o abide by only a few rules
o sustain with little set structure
o incidences of conflicts of interests, chaos
Low Uncertainty Avoidance
Sunny Rays publishing 4
© Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
Risk Intelligence
series
• Those with High Uncertainty Avoidance prefer formal rules, strong social norms, and other ways of avoiding uncertainty
whereby although monotony is dominant than creativity yet predictable risks are aggressively covered
• Those with Low Uncertainty Avoidance profile emphasis is more on informal, unstructured, or fluid roles and behaviours
that result in innovations , creative thinking and self controlled obligations and value systems. The drawbacks include
anarchy, indifference and insolence .
Sunny Rays publishing 5
Risk Intelligence
seriesRisk
© Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
• High Uncertainty Avoidance Countries Some of the highest uncertainty avoidance countries include Russia, Germany,
Turkey, or France.
• Low Uncertainty Avoidance Countries Some of the lowest uncertainty avoidance countries include Switzerland
Sunny Rays publishing 6
Risk Intelligence
seriesUncertainty Avoidance Countries
© Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
• One of the greatest and most renowned researchers of Uncertainty avoidance is Hofstede. He has a theory called “cultural
dimensions theory” where he studies different dimensions of national culture including, Power Distance, Individualism
versus Collectivism, Masculinity versus Femeninity, Long-term versus Short-term orientation and of course the concepts of
Uncertainty Avoidance.
• David S. Baker and Kerry D. Carson performed a study to evaluate the uncertainty avoidance among field sales personnel.
They selected 155 of them from United States, Canada, United Kingdom, Australia, and New Zealand. They inspected
attachment and avoidance as the two ways of expressing individual uncertainty avoidance. Their research pointed towards
individuals using both attachment and avoidance to lower their uncertainty avoidance in the workplace.
Sunny Rays publishing 7
Risk Intelligence
seriesThinkers on UAI
© Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
• People who were high on Uncertainty Avoidance and those low behave differently.
o Those sales personnel that were low on Uncertainty Avoidance saw no need to attach with their team or adapt to
their environment settings
o Those high on UA used both avoidance and attachment to deal with situations.
o Those who reported moderate levels on uncertainty avoidance preferred to use adaptation rather than attachment
when needed.
Sunny Rays publishing 8
Risk Intelligence
seriesApplication on Human Resources
© Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
• Uncertainty Avoidance Index has a significant effect on consumer's acceptance of unfamiliar brands in the retail market.
o Brand familiarity, celebrity endorsement and cultural differences all have an effect on determining an individual's
Uncertainty Avoidance Index (UAI).
o Ms. Eliane Karsaklian has studied the effect these influences towards UAI have on consumer's attitude towards
familiar and unfamiliar brands in different cultures (specifically American and French). She concludes that uncertainty
avoidance has a deep role in shaping consumer's attitude towards brands.
Sunny Rays publishing 9
Risk Intelligence
seriesApplication in Marketing
© Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A

Uncertainty avoidance

  • 1.
    Uncertainty Avoidance © CopyrightMr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A Sunny Rays publishing 1 Risk Intelligence series
  • 2.
    • Uncertainty Avoidance(UA) is the dimension that expresses the degree to which an organization or a person feels uncomfortable with a sense of uncertainty and ambiguity. • Countries that exhibit strong Uncertainty avoidance Index or UAI, maintain rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. • Weak UAI societies maintain a more relaxed attitude in which practice counts more than principles. • People in cultures with high uncertainty avoidance tend to be more emotional, they try to minimize the occurrence of unknown and unusual circumstances and to proceed with careful changes step by step by planning and by implementing rules, laws and regulations. • In contrast, low uncertainty avoidance cultures accept and feel comfortable in unstructured situations or changeable environments and try to have as few rules as possible. People in these cultures tend to be more pragmatic, they are more tolerant of change. Uncertainty Avoidance Sunny Rays publishing 2 © Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A Risk Intelligence series
  • 3.
    • There aremany ways to detect if one has adopted a high standard of Uncertainty Avoidance. For example, the use of formality in interaction with others, dependence of formalized policies and procedures, apparent resistance of change are all characteristics of high uncertainty avoidance. • Basic characteristics of High Uncertainty Avoidance – o follow a strict structure with rules and expertise o have high security (avoiding the unfamiliar) o are generally hectic, stressful or even emotional. High Uncertainty Avoidance Sunny Rays publishing 3 © Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A Risk Intelligence series
  • 4.
    • In contrastpeople can also exhibit characteristics of low Uncertainty Avoidance. Unlike high UA, those with a low level use informality in interaction with others, they often rely on informal norms and behaviours in most matters. Also, they will show moderate resistance to change. • Signs of low uncertainty avoidance o abide by only a few rules o sustain with little set structure o incidences of conflicts of interests, chaos Low Uncertainty Avoidance Sunny Rays publishing 4 © Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A Risk Intelligence series
  • 5.
    • Those withHigh Uncertainty Avoidance prefer formal rules, strong social norms, and other ways of avoiding uncertainty whereby although monotony is dominant than creativity yet predictable risks are aggressively covered • Those with Low Uncertainty Avoidance profile emphasis is more on informal, unstructured, or fluid roles and behaviours that result in innovations , creative thinking and self controlled obligations and value systems. The drawbacks include anarchy, indifference and insolence . Sunny Rays publishing 5 Risk Intelligence seriesRisk © Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
  • 6.
    • High UncertaintyAvoidance Countries Some of the highest uncertainty avoidance countries include Russia, Germany, Turkey, or France. • Low Uncertainty Avoidance Countries Some of the lowest uncertainty avoidance countries include Switzerland Sunny Rays publishing 6 Risk Intelligence seriesUncertainty Avoidance Countries © Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
  • 7.
    • One ofthe greatest and most renowned researchers of Uncertainty avoidance is Hofstede. He has a theory called “cultural dimensions theory” where he studies different dimensions of national culture including, Power Distance, Individualism versus Collectivism, Masculinity versus Femeninity, Long-term versus Short-term orientation and of course the concepts of Uncertainty Avoidance. • David S. Baker and Kerry D. Carson performed a study to evaluate the uncertainty avoidance among field sales personnel. They selected 155 of them from United States, Canada, United Kingdom, Australia, and New Zealand. They inspected attachment and avoidance as the two ways of expressing individual uncertainty avoidance. Their research pointed towards individuals using both attachment and avoidance to lower their uncertainty avoidance in the workplace. Sunny Rays publishing 7 Risk Intelligence seriesThinkers on UAI © Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
  • 8.
    • People whowere high on Uncertainty Avoidance and those low behave differently. o Those sales personnel that were low on Uncertainty Avoidance saw no need to attach with their team or adapt to their environment settings o Those high on UA used both avoidance and attachment to deal with situations. o Those who reported moderate levels on uncertainty avoidance preferred to use adaptation rather than attachment when needed. Sunny Rays publishing 8 Risk Intelligence seriesApplication on Human Resources © Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A
  • 9.
    • Uncertainty AvoidanceIndex has a significant effect on consumer's acceptance of unfamiliar brands in the retail market. o Brand familiarity, celebrity endorsement and cultural differences all have an effect on determining an individual's Uncertainty Avoidance Index (UAI). o Ms. Eliane Karsaklian has studied the effect these influences towards UAI have on consumer's attitude towards familiar and unfamiliar brands in different cultures (specifically American and French). She concludes that uncertainty avoidance has a deep role in shaping consumer's attitude towards brands. Sunny Rays publishing 9 Risk Intelligence seriesApplication in Marketing © Copyright Mr. Sandeep Bhatnagar – Risk Intelligence series whitepaper serial 1121A