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GERMAN BUSINESS CULTURE Oliver Sandino, Guojie Wang, Lidia Li, Juvenal Torres
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Brief history: ■ West-central Europe ■ Capital: Berlin ■ German Empire founded after Prussia's victory in Franco-Prussian War (1870/71) ■ Mid 19th century, Germany was not a unified country ■ Germany surrendered in WWI and became a republic (1918) ■ After World War II, Germany and Berlin split into four zones of occupation ■ 1949, the three western zones were united to form the Federal Republic of Germany, and the Soviet zone became the German Democratic Republic ■ In 1961 the Berlin Wall was built, dividing the city in two
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5 Dimensions of German Culture ■ Low Context Culture: Direct and Focused ■ Individualistic: Initiative and Self-Assertion valued ■ Time Orientation: Meticulous and Punctual ■ Power Distance: Vertical Hierarchy; Expertise ■ Communication Style: Facts, not Arrogance
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Greetings: A quick, firm handshake is the traditional greeting. Eye contact when shaking hands, sometimes bow head. Avoid shaking hands with one hand in your pocket. Shake hands at the beginning and the end of meeting. When women enter a room it is considered polite for men to stand. Address Germans with full, correct title and last name.
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Body language ■ In Germany, lots of physical distance and a moderate tone are appropriate in most situations. ■ Direct eye contact is important, Avoiding it seems insecure or unfriendly to them. ■ Never put your hands in your pockets while speaking.
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Gift giving ■ A visitor thinking of giving a gift should choose one that is small and of good quality, but not overly expensive. ■ Acceptable gifts at business meetings are items of office equipment, good quality pens with your company’s logo ■ Gifts are usually opened when received.
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Appearance and Dress ■ Business dress is conservative ■ Men wear dark suits; solid, conservative ties and white shirts ■ Women dress in dark suits and white blouses ■ Chewing gum while talking is considered rude
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Meals & Dining etiquette ■ Outdoor eating is popular in Germany, ■ Pets are sometimes even welcomed ■ Many foreign dishes have been adopted into German cuisine(i.e. spaghetti) ■ Beer and wine are part of a normal dinner and alcoholic drinks are usually offered to guests. ■ Not drinking, is completely accepted. Do not insist.
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Time Structure of Typical Business Day ■ Strict regulations concerning opening and closing hours of businesses and shops ■ German Working Time Regulations regulate working hours on a legal basis ■ Most industries have collective agreements that regulate working hours and holidays ■ Working week of more than 48 hours on average during a 6 month period must not be exceeded ■ Sundays and national holidays are non-working days
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Decision Making traditions ■ Decision-making process slow, opposed to risk ■ Every detail of proposal will be carefully and thoroughly examined ■ Precise and detailed agendas, are usually followed rigorously. ■ Meetings always aim for decisive outcomes and results ■ In negotiations, Germans are direct and frank about they want and they expect you to do the same.
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Gender Roles ■ 60% of women ages 15-65 work outside of home, and only 30% in professional positions ■ The 3 K’s Kinder, Küche, und Kirche” (Children, Kitchen, and Church) ■ Social legislation entices women from returning to work
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Attitude towards Authority ■ Strong respect for authority ■ Subordinates rarely contradict boss ■ Relationship between boss and subordinates tend to be formal
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Attitude toward Conflict Resolution ■ Disputes/disagreements are a normal process for finding mutual understandings ■ Chief characteristic of professionalism; express and accept criticism ■ Critical remarks are expressed harshly and plainly
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Walmart in Germany Why Walmart failed in Germany ■CEO of German branch was American, didn’t speak German ■staff hired to greet them at the door and bag their groceries ■Other competitive retailers in the market ■German laws prevented easy go hiring and firing
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International Business ■https://www.youtube.com/watch?v=3yB7CjUXldghttps://www.youtube.com/watch?v=3yB7CjUXldg
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Works Cited Hager, Michael. "Intercultural Competence and German Business Culture." Global Business Languages, 6.1 (2010): 4. Hinner, Michael B. "Culture's influence on business as illustrated by German business culture." China Media Research 5.2 (2009): 45+. Expanded Academic ASAP. W Stedham, Yvonne, and Rafik I Beekun. "Ethical Judgment in Business: Culture and Differential Perceptions of Justice Among Italians and Germans." Business Ethics: A European Review, 22.2 (2013): 189-201. Zimmer, Oliver. "Beneath the “Culture War”: Corpus Christi Processions and Mutual Accommodation in the Second German Empire." The Journal of Modern History, 82.2 (2010): 288-334.
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