Germany- history,culture,society,organizational structure and approach to management
A federal parliamentary republic in western-central
Consists of 16 states and its capital and largest city is
Most populous member state in the European Union.
Major economic and political power of the European
The Celts are believed to be the first inhabitants of Germany.
German rulers were also usually heads of the Holy Roman .
After the defeat of Napoléon at Waterloo and North German
Confederation was formed.
Otto von Bismarck became prime minister.
He unified all of Germany in a series of three wars against
> Denmark (1864)
> Austria (1866)
> France (1871)
•Second German Reich, consisting of the North and South
German states, was born.
•The Second German Empire collapsed following the defeat of
the German armies in 1918.
•The Social Democrats, led by Friedrich Ebert and Philipp
Scheidemann established a moderate state with Elbert as
•By 1932, the German Communist Party and the Nazi Party
controlled the majority of German parliament.
•President von Hindenburg made Adolf Hitler the chancellor
on Jan. 30, 1933.
•His invasion of Poland on Sept. 1, 1939, precipitated World
•After some dazzling initial successes Germany surrendered
unconditionally to Soviet military commanders on May 8, 1945.
After WWII Germany split into two parts East Germany and
The Berlin Wall built in 1961 to stop East Germans from escaping
to West Germany.
On the night of Nov. 9, 1989, the Berlin Wall was
dismantled, making reunification all but inevitable.
On Oct. 3, 1990, Germany became a united and sovereign state
for the first time since 1945.
Germany is a modern, advanced society.
High level of gender equality, promotes disability rights.
Until the mid-1990s the opinion was widespread that Germany is not a
country of immigration.
Controlled immigration should be initiated based on qualification
Since the 2006 FIFA World Cup, Germany's national image has
Germany has been named the world's second most valued nation
among 50 countries .
Culture in Germany has been shaped by major
intellectual and popular currents in Europe.
Historically Germany has been called Das Land der
Dichter und Denker (the country of poets and
There are over 240 subsidized theatres.
Orchestras, thousands of museums.
More than 25,000 libraries.
People from Germany love to celebrate when and wherever the
Some of the famous festivals of Germany are
• Highly hierarchical with strongly defined roles.
• The Germans are averse to the "open-office" principle that has
become popular in North America and some other societies.
• Once Germans have their roles within the company context, they
endeavor to stay within those roles and adhere to the rules.
Command is much more a top-down than a bottom-up affair.
The proper term for German "teamwork" is probably "consensus-
Consensual input from both employers and employees can make
the decision making process slow.
The German style management is unique for its:
“Competence first” principle
Rule-oriented and hierarchy focus on task
Continuous investment in Human Resources
High quality and innovation orientation
They generally seek market share rather than market
German companies despise price competition
They engage in what German managers describe as
"Leistung swettb ewerb" , competition on the basis of
excellence in their products and services
The German manager concentrates intensely on two objectives:
a) Product quality
b) Product service
High premium on customer satisfaction
Style a product to suit a customer's wishes.
A German manager believes deeply in good-quality production
line and a good-quality product
Relations between German managers and workers are often close
German industry works closely with government
The German Industrial Norms.
Established through consultation between industry and
No one encourages litigation if there is no clear sign of
genuine and deliberate injury
Frequent litigation is regarded as reflecting more on the
accuser than on the accused.
Their authority and strong leadership are based on
technical expertise and the employees respect this
Leadership style is authoritarian but also participative
Managers usually remain in one firm throughout their
loyalty in German companies is Very high
Self-satisfaction is based on their contribution to
German management is consensual; managers avoid
litigations and prefer to focus on labor interests and
good labor relations
“Time is money” for the Germans
The promise of a faithful adherence deadlines is an
advantage for customers
There is no improvisation at work
Strategies draw up a long-term planning
In a working team the leader has final word on
This allows the management style to be more decisive
and quick in execution
From minute to minute, Germans do not welcome
distractions, interruptions, digressions or unexpected
Although they don’t like distractions but they do not
On the whole, Germans prefer to carry out tasks in a
meaningful, planned sequence. They generally get more
satisfaction from completion and delivery than from
starting and exploring
Their system is not as innovative, aggressive, or results-
oriented as the United States management style
Germans tend to opt for a linear approach. They see time as
a passing train - each carry a window of opportunity to be