Germany’s business etiquette 2011

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Germany’s business etiquette 2011

  1. 1. GERMANY’S BUSINESS ETIQUETTE 2011
  2. 2. The Agenda• Cultural Types : The Lewis Model• Communication Style• Analyze after the model of Hofstede• Business Etiquette• DO‟s and DON‟Ts• Daimler-Chrysler Merger Failure
  3. 3. „ It takes time to do a thing well ” Why Prepare?It‟s a jungle out there….. Competition is strong, and the waywe present ourselves is under closerexamination more than ever before.
  4. 4. Task orientationTechnical competence => place facts before sentimentDeal-orientatedStick to agenda and careful planners
  5. 5. Communication Style:The Eiffel Tower Culture as orders come fromthe top to the bottom.A low-context culture - Individualism , PersonalAchievements , Truth and DirectnessNon-verbal Communication - Shaking Hands,Being Punctual, Eye Contact.Silence interprets uncertainty and negativity.
  6. 6. Analyze after the model of Hofstede Power distance (35) Individuality(67)Germany‟s lowest score was 35 Germany scored 67 points onpoints on Hofstede‟s power distance individualism, the tendency ofindex. This index measures the people to look after themselvesextent to which less powerful and their immediate family only.members accept that power isdistributed unequally in German That score is 56% higher thaninstitutions and organizations. the world average score forGermany‟s power distance index individualism, but 26% lowerscore is 36% below the world average than the United States.score, and 14% lower than the U.S.
  7. 7. Analyze after the model of HofstedeUncertainty avoidnce(65) Masculinity(66)Germany scored 65 points on Hofstede‟s Germany scored 66 points onuncertainty avoidance index. This index masculinity, a cultural characteristic inmeasures the extent to which people feel which success, money and materialthreatened by ambiguous situations and possessions form the dominant valueshave created beliefs and institutions to in society.avoid such risks. That score is 32% higher than theThat score is only 2% above the world world average score foraverage score for uncertainty masculinity, and 6% higher than theavoidance, but 41% higher than the U.S. U.S.where Americans are much morecomfortable with risks associated withchange.
  8. 8. Hours of Business : From 8:00 or 9:00 a.m. to 4:00 or 5:00 p.m. Mondaythrough Thursday . Most of German companies have a short Friday, whichmeans the weekend starts few hours earlier.Business Dress : In Germany business dress is conservative. Men wear darksuits, sedated ties, and white shirts. Women wear dark suits, pantsuits andblouses that are neutral in color.Don‟t take off a jacket or tie. Most Germans will remain fully dressed even inextreme heat.Meetings: Professional titles such as in „Herr Direktor Doktor,‟ is nowconsidered old-fashioned.Presentations: At the end of a presentation, Germans may signal their approvalby rapping their knuckles on the tabletop stead of applauding.Negotiation: Many of them do not appreciate aggressive sales techniques andview negotiations as a „necessary evil‟ rather than a process to enjoy.Social Values : In Germany‟s business culture, the respect a person enjoysdepends primarily on his or her achievements, status and rank, and education.Gifts : good-quality pens, imported liquor, something from your home city
  9. 9. Do‟s and Don‟tsDO take plenty of business cards with DON‟T discuss personal mattersyou and ensure they include full details during business negotiations, as this isof your background, qualifications, and considered to deviate from the task attitles. hand.DO maintain direct eye-contact when DON‟T try to surprise them.addressing German Germans do not like surprises.colleagues, especially during initial Sudden changes in businessintroductions. transactions, even if they may improve the outcome, are unwelcome.DO use the formal version of you(“Sie”), unless someone specifically DON‟T use exaggerated or indirectinvites you to use the informal “Du” communication styles duringform. It is usually best to let your business meetings with you GermanGerman counterpart take counterparts. It creates an impressionthe initiative of proposing the informal of insincerity and dishonesty.form of address
  10. 10. Daimler-Chrysler Merger FailureDaimler Chryslers success depended on integrating two starkly differentcorporate cultures.Daimler-Benz - methodical decision-making, respect for authority, bureaucraticprecisionChrysler – creativity, symbol of American adaptability andresilience, efficiency, empowermentNational Culture influence : attitudes to work, authority and equality.Working late hours vs. Working on deadlinesCommand lower-levels vs. Discuss with lower-levelsDifferences in culture between the two organizations were largely responsible forthis failure. The crucial point in the cultural differences was the business culture.Underestimating cultural issues is especially dangerous in international mergers.There has always been a tendency to underestimate the impact of cultural issuesand to focus instead on organizational or structural issues.
  11. 11. Thank You For Your Attention !Danke Für Ihre Aufmerksamkeit !

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