Key Elements in the Hofstede

Uncertainty Avoidance Dimension

RISK AVERSE

RISK TOLERANT

Developed for the Centre For International Business

Research in The Netherlands
Copyright 1996-2015 by
Bill Drake
All Rights Reserved
billdrake4470@gmail.com

Basic Attitudes Toward

Risk/Ambiguity
RISK AVERSE

The future is feared

There is strong reluctance
to accept/take risks
Change is resisted on an
emotional basis
Young people are not
trusted to run
organizations

RISK TOLERANT

The future is welcomed

There is a readiness to
accept/take risks
Emotional resistance to
change is low/absent
Young people can lead
organizations

Can Rules Be Broken?

RISK AVERSE

Compromise is seen as
weakness and losing
Only those with highest
authority can break formal
rules
Job security is more
important than satisfaction

RISK TOLERANT

Compromise is an
acceptable outcome for
conflict
Formal rules can be
broken by anyone with
sufficient reason
Job security is not as
important as job
satisfaction

Is Initiative
Expected &
Rewarded?

RISK AVERSE

Career changes are seen

as evidence of failure or
inability
Managers are expected to
give orders and enforce
their orders
Subordinates' initiative is
feared and tightly
controlled

RISK TOLERANT

Career changes are seen

as growth opportunities
Managers are expected to
offer direction and give
support
Subordinates' initiative is
valued and enabled

Relationships In The Hierarchy

RISK AVERSE

Loyalty to the boss

determines one's success
or failure
Technical specialization is
preferred over generalist
careers
Managers feel that
expertise is a necessary
basis for authority
Conflict is threatening
because losing is a
possible outcome

RISK TOLERANT

Loyalty to the boss is of

little consequence beyond
personal relations
Careers in management
are preferred over
technical specialization
Managers do not feel that
expertise is necessary for
managing effectively
Conflict is accepted as
normal and losing is not
feared

How Are Conflicts Managed?

RISK AVERSE

Conflicts should be
resolved by reference to
an established body of
precedent.
Serious problems should
be solved immediately
In a well-run organization
everyone knows what is
expected and does as they
are told.

RISK TOLERANT

Conflicts should be
resolved by applying
reasoning and principles
to the specifics of each
case.
Serious problems can be
studied before acting
In a well-run organization
everyone has a chance to
define their role and make
independent contributions.

The Nature Of Reality

RISK AVERSE

Whenever an outcome is
uncertain, others
concerned should be
consulted before
proceeding, and courses
of action should conform
to their recommendations.
The world is rational.
Theory is fine but sound
business judgment is
based on facts.

RISK TOLERANT

Whenever an outcome is
uncertain, degrees of
probability can be
assigned to each outcome,
and courses of action
should be taken with these
calculations in mind.
The world is a mystery.
A firm grasp of theory is
critical to making sense of
facts and having sound
business judgment.