Austria is a country in Central Europe with a population of 8 million people. The official language is Austrian German. Austrians are known for their conservatism and take pride in their homes. In business, appearances and punctuality are very important. Decision making follows a methodical process and establishing relationships requires patience. Negotiations are cooperative and aim to find solutions, not compromise.

1. AUSTRIA
Educate
the
Expatriate
GMBA
5885
–
Cross-­‐Cultural
Advanced
Seminar
Richa
Bajwa
–
Ludovic
Bourgoin
December
14th,
2010

3. COUNTRY
FACTS

4. Population:
COUNTRY
FACTS
8 million

5. Population:
COUNTRY
FACTS
8 million

6. Population:
COUNTRY
FACTS
8 million
• Official
name:
Republic
of
Austria
• Capital:
Vienna
• Official
language:
Austrian
German
• Government:
Federal
Parliamentary
Republic
• Independance:
Post-­‐WWII
in
1955
• Ethnic
groups:
» Austrians
92%
» Former
Yougoslavs
5%
» Turks
2%
» German
1%

7. COUNTRY
FACTS
• DeclaraCon
of
Neutrality
– Declaring
the
country
neutral
– Enacted
on
26
of
October
1955
– Part
of
the
consVtuVon
of
Austria

8. COUNTRY
FACTS
• FORMALLY
declaraVon
promulgated
voluntarily
by
the
Republic
of
Austria.
• POLITICALLY
was
the
direct
consequence
of
the
allied
occupaVon
between
1945
and
1955:

9. PEOPLE
FACTS
Do
you
know
some
Austrian
celebrity…?

10. PEOPLE
FACTS
Do
you
know
some
Austrian
celebrity…?

11. PEOPLE
FACTS
Do
you
know
some
Austrian
celebrity…?

12. PEOPLE
FACTS
• ConservaVsm
» Austrians
are
prudent
and
moderate
» Social
invitaVons
must
be
made
in
advance
• The
Austrian
home
» Austrians
take
much
pride
in
their
homes
» Only
close
friends
and
relaVves
are
invited
into
the
house
» Neightboorly
eVque]e
has
its
rules
(cleaned
corridors…)

13. HOFSTEDE’s
Cultural
dimensions
1. Low
power
distance
• Austrian
subway
system
2. IndividualisVc
society
• Desire
for
personnal
freedom
• Preference
for
personal
well-­‐being
3. Masculinity
79
• AsserVve
desire
for
control
4. High
uncertainty
avoidance

14. NAMES
&
GREETINGS
• Shake
hands
women
1st
• Hand-­‐kiss
to
women
Don’t
if
you’re
not
Austrian!
Foreign
Minister
Karel
Scharzenberg
from
Czech
Republic,
kisses
the
hand
of
Autrian
Foreifn
Minister
Ursula
Plassnik,
2008

15. COMMUNICATION
STYLE
• Official
language
is
German
» Different
pronunciaVon
» Different
vocabulary
=
Problem
for
foreigners
who
were
taught
proper
german
Speak
some
English,
but
interpreter
recommended

16. COMMUNICATION
STYLE
• Use
of
English
» Make
it
short
» Simple
phrase
» Speak
slowly
• DiplomaVc
style
preferred
• Saying
NO
is
ok
• Rare
use
of
body
language

17. RELIGION

18. DRESS
&
APPEARANCE
Austrian traditional clothes

19. DRESS
&
APPEARANCE
• Appearances
ma]er
» PresentaVon
and
dressing
are
very
important
» Clothes
are
never
ostentaVous
» SomeVmes
strict
protocol
for
dressing
apprpriately
» Some
high
level
events
may
have
dress
code
» Women
dress
elegantly
in
public/at
work

20. ENTERTAINING
• Family
• Friends
at
the
pub!

• Watching
television
• Going
to
the
restaurant
• Sport:
Ski,
bicycle
ride…

21. DON’T…
• Expect
everyone
to
speak
English
• Expect
to
find
diet
drinks
and
non-­‐smoking
areas
• Make
noise
amer
10pm
• Give
perfume
or
clothing
as
gims
• Kiss
the
hand
of
an
Austrian
woman
unless
you
are
Austrian!
• Be
late!


22. GOVERNMENT
&
BUSINESS
• Member
of
EU
Free movement of goods, people and capital
• Austrian
Business
Agency
(ABA)
Supports
&
provides
incenVves
for
foreign
investors

23. WORK
ENVIRONMENT
• Formal
dress
code
for
business
» Navy
blue
or
black
suits
» NeckVes
» Dresses
accepted
for
women
» Polished
shoes
• First
impression
ma]ers!
Significant
impact
on
others
opinion

24. WOMEN
IN
BUSINESS
• Hard
to
get
similar
posiVons/income
as
men
• AccepVng
old-­‐fashioned
courtesies
• Too
much
confidence
might
appear
aggressive!
Reminder:
High
Masculinity!

25. DECISION
MAKING
• Hierarchy
People
expect
to
to
work
with
clear
lines
of
authority!
• Methodical
process
Conducted
with
precision
» Takes
much
Vme
» Requires
paVence
• Change
is
hard
to
implement
Reminder:
high
level
of
uncertainty
avoidance

26. BUILDING
RELATIONSHIPS
• Not
an
essenVal
aspect
for
iniVal
business
interacVons
know
you
be]er
gradually
• Business
relaVons
exist
between
companies
as
well
as
between
individuals.

27. NEGOTIATIONS
&
MEETINGS
• NegoVaVon
is
a
joint
problem-­‐solving
process
in
Austria
buyer
being
superior
• NegoVaVon
style
is
cooperaVve
people
may
be
unwilling
to
agree
with
compromises
• work
through
a
list
of
objecVves,
bargaining
for
each
item
separately
they
do
not
revisit
aspects
already
discussed
• Be
calm
and
paVent
avoid
open
confrontaVon

28. TIME…
• Pursue
acVons
and
goals
systemaVcally
• Punctuality
is
appreciated
call
with
an
explanaVon
for
delay
• Do
not
cancel
a
meeVng
at
last
minute.
• No
small
talk
before
the
meeVng
gets
to
business
ma]ers
right
away

29. THANK
You
!
& Happy Christmas Holidays ;)
home made Christmas Crib! 