Free Management Dissertations - Uncertainty Avoidance: Represents The Extent To Which Individuals Accept
Uncertainty avoidance: Represents the extent to which individuals accept uncertain or ambiguous outcomes. A high uncertainty culture has low tolerance for uncertain outcomes or unstructured environments. Such societies are therefore characterised by extensive rules, laws, codes and controls in order to minimise risk. Low uncertainty countries are more favourable towards risk, dynamism and change. Such countries are often characterised by higher levels of entrepreneurial activity and multiple interest groups.
According to Hofstede, uncertainty avoidance is weak in Russia suggesting that employees will be more open to change new, foreign ownership for example. This is somewhat surprising given that the country is formerly communist and therefore very rule orientated. However, Russia was under communism for less than 100 years, usually not long enough for rules to become embedded in cultural behaviour. In Germany, uncertainty avoidance is at its highest and there is a heavy dependence on rules and familiar, regular working patterns.
The human resource implications of uncertainty avoidance are twofold. Firstly, Russian workers may well be open to change and new ownership and working practices. However, a lack of rules could make imposing company cultures and working practices a greater challenge. Employees may not respond well to authoritarian, rule based management although this is less of an issue for European and US firms.
Individuality: Represents the extent to which society reinforces the ideals of individualism or collectivism and personal relationship. It is usually reflected in work structures and patterns. Highly individualist countries such as the United States are far more likely to reward individually and financially based on merit. Employees are self motivated and are looking out for number one. In collectivist societies individuals are responsible to and for the group. Work based motivations are far more likely to cover social issues such as working environment, positive social relations, and job security.
Foreign based multinationals from Europe and America regions where individualism is prevalent must recognise that rewarding individuals based on performance is more likely to be a negative strategy in collectivist countries and will potentially contribute to de-motivating and antagonising the workforce. Motivating employees in these countries is arguably less about money and more about providing working conditions that satisfy their collectivism wants and needs such as long-term job security and work-based socialisation needs.
However, there are exceptions to this rule. The French business leader Carlos Ghosn proved that cultural barriers could be overcome when he took over the ailing automotive giant Nissan Motors in Japan.
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