This document provides information about management styles in Germany. It discusses Germany's culture, society, communication styles, and business practices. Some key points include: - Germans value punctuality, formality, and focus on quality products and customer service. Decision making is slow and detailed. - Acceptable topics of small talk include sports, travel, current events, work, and beer. Avoid bringing up WWII, personal questions, or praise. - Meetings follow a formal structure. Dress conservatively and bring business cards with titles and qualifications. Punctuality is essential. - Germans separate business and personal relationships. Relationship building takes time.

1. CROSS CULTURAL MANAGEMENT
STYLE IN GERMANY
Presented By:
Abhishek Malhotra
MBA II-B 6270

2. GERMANY
 Germany German: Deutschland), officially
the Federal Republic of
Germany (German: Bundesrepublik
Deutschland), is a federal parliamentary
republic in western-central Europe. The country
consists of 16 states, and its capital and largest
city is Berlin. With 81.8 million inhabitants, it is
the most populous member state in
the European Union. Germany is one of the
major political and economic powers of the
European continent and a historic leader in
many theoretical and technical fields. A region
named Germania, inhabited by several Germanic
peoples, was documented before AD 100.

3.  Germany has the world's fourth largest economy by nominal GDP and
the fifth largest by purchasing power parity. Subsequently, it is the second
largest exporter and third largest importer of goods. The country has
developed a very high standard of living and features a comprehensive
system of social security, which includes the world's oldest universal health
care system. Germany has been the home of many
influential philosophers, music composers, scientists and inventors, and is
known for it rich cultural and political history. Germany was a founding
member of the European Community in 1957, which became the EU in 1993.
It is part of the Schengen Area, and since 1999, a member of the euro area.
Germany is a great power and member of the United Nations, NATO, the G8,
the G20, the OECD and the Council of Europe.
 Germany is associated with big players like the Mercedes Benz, BMW,
Volkswagen, Zeiss cameras, Lufthansa Airlines etc.

4. Culture and Language of Germany
Religion
 Approximately 34% Protestant, 34% Roman Catholic, 4%
Muslim, with Jewish and other non-Christian minorities.
 German culture began long before the rise of Germany as
a nation-state and spanned the entire German-speaking world.
From its roots, culture in Germany has been shaped by major
intellectual and popular currents in Europe, both religious
and secular. Historically Germany has been called Das Land
der Dichter und Denker (the land of poets and thinkers).
 The federated states are in charge of the cultural institutions.
There are 240 subsidized theatres, hundreds of symphonic
orchestras, thousands of museums, and more than 25,000
libraries spread in Germany. These cultural opportunities are
enjoyed by many: there are over 91 million German museum
visits every year; annually, 20 million go to theatres and operas;
3.6 million per year listen to the symphonic
orchestras. The UNESCO inscribed 33 properties in Germany
on the World Heritage List.
 German is the official and predominant spoken language in
Germany. Recognised native minority languages in Germany
are Danish, Sorbian, and Frisian. The most used immigrant
languages are Turkish, Kurdish, Polish, the Balkan languages,
and Russian.

5. Society
 Germany is a modern, advanced society, shaped by a plurality of
lifestyles and regional identities. The country has established a high
level of gender equality, promotes disability rights, and is legally and
socially tolerant towards homosexuals. Gays and lesbians can legally
adopt their partner's biological children, and civil unions have been
permitted since 2001.
 During the last decade of the 20th century, Germany changed its
attitude towards immigrants. Until the mid-1990s the opinion was
widespread that Germany is not a country of immigration, even
though about 20% of the population were of non-German origin.
Today the government and a majority of the German society are
acknowledging that immigrants from diverse ethnocultural
backgrounds are part of the German society and that controlled
immigration should be initiated based on qualification standards

6. Communication and Behavior
 If you do not speak German, be careful of addressing a person in English.
 While Germans can speak very good English, some may well feel offended by the presumption.
 Germans don't expect to be greeted by strangers ("since I don't know this person there is no need to get
into superficial pleasantries").
 Germans usually prefer third-party introductions whenever possible.
 Praising is not part of German business protocol and will often cause embarrassment.
 Football, recent holidays, work and beer are good conversation topics.
 World War II, the Holocaust and personal inquiries (salary, cost of personal objects, family) are to be
avoided.
 German etiquette regarding who should pay the bill at the end of a meal is quite peculiar. The person
who extends the invitation will be the person who pays.
 They do not expect you at all to fight for the bill. Your persistence will result in a serious offence.
 In Germany, a small gift is considered polite, especially when contacts are made for the first time.
 Substantial gifts are not usual, and certainly not before a deal has been reached.
 Gifts are expected in social events, especially to express your gratitude after being invited to a dinner
party at a home.
 Avoid selecting anything obviously expensive. A bouquet of flowers (not in red) to the house lady will be
a good choice.
 After returning home, remember to send a hand-written card to your hosts for their invitation.
 Punctuality in German business culture is sacred.
 Arriving 15 minutes late will be considered a very serious offence and could mean a shaky start to any
potential business relations.

7.  The best time to schedule a business appointment is between 10:00 am and 1:00 pm or
between 3:00 pm and 5:00 pm.
 Avoid scheduling appointments on Friday afternoon, as some offices will close by 2:00
pm or 3:00 pm on Fridays.
 Dress in corporate business is formal, dark and conservative for both men and women.
Dress codes in the IT sector are more casual.
 Bring a plentiful supply of business cards. Unless you will be exclusively dealing with
Germans, it is not necessary to have the reverse side translated.
 Germans should be addressed by the academic title given on their card
 In your card, include your full title or position, any university degrees you have earned
and professional organisations membership.
 Germans will arrive at the meeting well informed, and expect the same from you.
 German executives tend to be analytical thinkers, requiring lots of facts and examples
from the other side to support their position.
 German businesspeople tend to be traditionally cautious of new ideas and concepts.
Institutional change comes very slowly and often quite reluctantly.
 Unlike North Americans, Australians and Spaniards, which are typically "high risk-
taking" cultures, German businesspeople tend to be traditionally cautious to new ideas
and concepts.
 Flexibility and spontaneity are not common traits in German business culture.
 When you are preparing promotional material, be aware that German executives are not
impressed by glitzy advertising, illustrations or memorable slogans.
 Germans don't find it hard to say "no", "I can't", or "This is impossible".
 Decision-making is slow, protracted and every detail relating to your proposal will be
carefully examined.

8. Dressing
Business dress is
understated, formal
and conservative.
Men should wear dark
colored, conservative
business suits.
Women should wear
either business suits or
conservative dresses.
Do not wear
ostentatious jewellery
or accessories.

9. Overview of German Management
and Practices
German management, as it has evolved over the centuries and
has established itself since World War II, has a distinct style
and culture. Like so many things German, it goes back to the
medieval guild and merchant tradition, but it also has a sense of
the future and of the long term.
The German style of competition is rigorous but not ruinous.
Although companies might compete for the same general
market, as Daimler-Benz and BMW do, they generally seek
market share rather than market domination. Many compete
for a specific niche. German companies despise price
competition. Instead, they engage in what German managers
describe as Leistungswettbewerb, competition on the basis of
excellence in their products and services. They compete on a
price basis only when it is necessary.

10.  The German manager concentrates intensely on two objectives: product quality
and product service. He wants his company to be the best, and he wants it to
have the best products. The manager and his entire team are strongly product
oriented, confident that a good product will sell itself. But the manager also
places a high premium on customer satisfaction, and Germans are ready to style
a product to suit a customer's wishes. The watchwords for most German
managers and companies are quality, responsiveness, dedication, and follow-up.
If there is a third objective beyond quality and service, it is cooperation--or at
least coordination--with government. German industry works closely with
government. German management is sensitive to government standards,
government policies, and government regulations.
 The German management style is not litigious. Neither the government, the
trade unions, nor the business community encourages litigation if there is no
clear sign of genuine and deliberate injury. Firms do not maintain large legal
staffs. Disagreements are often talked out, sometimes over a conference table,
sometimes over a beer, and sometimes in a gathering called by a chamber of
commerce or an industrial association. Differences are usually settled quietly,
often privately.

11. Making Appointments
 Never underestimate the importance of punctuality in German business culture. Arriving even five to
ten minutes later than the appointed time is perceived as late, especially if you are a subordinate. Fifteen
minutes would be considered a very serious faux pas and could mean a shaky start to any potential
business relations.
 Be prepared to make an appointment for most things. Germans don't usually feel comfortable discussin
g especially serious things “on the go”, so don't expect to be able to just drop into the office
unannounced for any detailed discussions. Make your appointments well in advance. [Making
appointments for a more detailed telephone conversation is also not unusual]. Give at least one or two
weeks notice for an appointment made by telephone; allow at least a month for an appointment made
by mail. If you don't have much preparation time, it's sometimes possible to arrange for a brief,
introductory meeting within a few days' notice.
 If you must be late for any reason, it's important that you call and notify the person who is expecting
you. Moreover, you should give a plausible explanation for the delay.
 The preferred times for business appointments are between 10:00 a.m. and 1:00 p.m. or between 3:00
p.m. and 5:00 p.m.
 Avoid scheduling appointments on Friday afternoons, as some offices close by 2:00 p.m. or 3:00 p.m. on
Fridays.
 Casually changing the time and place of an appointment is not appreciated. Allow for at least 24 hrs, if
you can, to change or cancel appointments. Be prepared to offer a plausible explanation.
 Be sensitive to vacation and festival periods here. Germans generally have six weeks of paid vacation,
which means someone is almost always “in Urlaub” [“on holiday”]. Therefore, be prepared to take this
into consideration when making appointments or planning visits. For instance, Germans commonly
take long vacations during July, August, December and Easter, when schools break.

12. Welcome topics of
conversation
 “Small talk” with strangers does not have a significant social function in German culture as
it does in very relationship-oriented cultures [e.g. Mediterranean, South American, African,
Middle Eastern countries] or the large immigration countries. In especially the latter cases,
small talk and the art of conversation with strangers evolved out of a need to bridge
considerable physical, cultural, and therefore psychological distance between individuals.
Communities therefore grew from relationships built on common interests and needs [i.e.
“Settlement community”] rather than from established familial and friendship ties [i.e.
“Village community”].

Be prepared to take the first step as the newcomer to introduce yourself to an established
group when you arrive in a new environment [e.g. office, student dormitory, social
gathering, new neighborhood, etc.]. Unless you are specifically invited to join a group, do
not automatically expect the established group to send out the “welcome wagon”.
 If you are a North American or Australian of non-European ethnicity, be prepared
for Germans to assume quite openly that you are from a part of the world based on how
you look. Despite the fact that Germany is a de facto “multicultural” society today, it is, like
most European countries, a traditionally non-immigration, mono-cultural country.
Moreover, despite the “multi-kulti” trend in the media today, the psychological distinction
between “German” and “foreigner” is very much based on ethnicity. Therefore, North
Americans and Australians of “visible ethnicity” should be prepared for a typical line of
questioning from perfect strangers that attempts to establish where you are “really from”.

13.  Giving compliments is not part of German business protocol and can often cause embarrassment and
awkwardness. Employees would, of course, be appreciative of praise from superiors, but do not expect it.
Compliments, especially from strangers or very casual acquaintances can, in fact, be taken with
suspicion [“What does he/she really mean to say or want?”].
 Germans traditionally use “Wie geht es Ihnen?” [“How are you?”] as a literal question that expects a
literal answer, in contrast to the common English usage of “How's it going?” to simply meaning “Hi”. It
may, therefore, be considered strange or superficial to ask the question and keep on moving without
waiting for an answer. Many people, when asked, will, in fact, give you a very detailed answer, including
why they are not doing well at that moment! The “Americanization” of the usage of “Wie geht es
Ihnen?” as a casual greeting is nonetheless catching on, something many people find irritating and label
“superficial”.
 If you are an invited guest, or coming for the first time from a potential partner company in a very
relationship-oriented culture like the Middle East, Africa and the Far East, be prepared for a different
margin of hospitality. The German fact-oriented culture makes a very clear distinction between time
spent to cultivate business and personal relations.
 Sports, particularly soccer [the national sport]
 Travel, recent holidays
 Current events, politics [if you know what you're talking about]
 Work and professions
 Your previous experiences and travels in Germany and other parts of Europe
 Among those who imbibe, beer is often a good topic of conversation. Germany produces some of the
finest beers in the world, and seasoned drinkers enjoy comparing and contrasting the qualities of the
various brews available.

14. Negotiating in Germany
 Punctuality is necessity in Germany. Arrive on time for every appointment, whether
for business or social. Being late, even if it is only by a few minutes, is very insulting to
a German executive. In business situations, shake hands at both the beginning and the
end of a meeting. Business is viewed as being very serious, and Germans do not
appreciate humor in a business context.
 Bring plenty of business cards. Businesspeople from the Far East and Arab
countries should provide the English translation of the information on one side of
their cards, as well as the Romanization of their names, for easier initial
communication. Unless you will be exclusively dealing with Germans, it is
unnecessary to have the reverse side translated into German.
 Germans, like other Europeans, write their first names before their family names
and should be addressed by the academic title given on their card [e.g. “Dr.”].
Include your full title or position, and any university degrees you have earned or
optionally professional organizations with which you are affiliated. When
designing your card, keep in mind that German businesspeople will want to learn
as much about your background and qualifications as possible.

15.  Unless you are in the IT branch of business, meetings normally follow a formal procedure presided
over by the chairperson of the meeting. Follow the example of the senior participants as to how
informal or formal you should act, dress, and sit. If it is the very first meeting for you in Germany or
in a particular company and you are unsure about in-house procedures, do not hesitate to ask your
host in private what you should expect or do. Do not think that this would put your host in any
uncomfortable or awkward position; neither should you yourself feel embarrassed about having to
ask. Germans are very straightforward and direct, especially in the business environment. It is part of
their normal communication behavior for someone to openly ask for clarification. This is to prevent
complications later when it is revealed by accident that someone had not understood instructions or
expectations.
 The German side will arrive at the meeting well-informed, and will expect the same from you. Even
at initial meetings where, in your culture, you may spend most of the time getting acquainted and
building a personal relationship between you and a potential business partner,
expect the Germans to address issues, problems and facts through very technical communication
behavior. If this is not your intention in the initial meetings, make a point of clarifying your
intentions and expectations beforehand, so that both sides are aware of the other side's expectations
and likely communication behavior.
 Because Germans are schedule-oriented for a most efficient management of business time, expect
their business communication behaviour to be very agenda-based. Germans tend to be intensely
analytical thinkers, requiring lots of facts and examples from the other side to back up their position.
Objective facts are the basis for truth in German business culture, and legalistic, rational reasoning is
the cornerstone of business negotiations and communication. Ultimately, personal feelings and
relationships cannot be relevant to business negotiations, as this can compromise the fairness or
integrity of the deal.

16.  Contracts, therefore, if not holy, are certainly final after signing.
Maneuvering for further concessions is not possible, unless both sides
agree on it. Failure to honor the terms and conditions of a signed contract
can lead to legal action taken against the partner. Businesspeople from
cultures that traditionally regard contracts as mere “statements of intent”
which later respond to the realities and nature of the partners'
relationship should not expect German enterprises to be able to adapt too
much to this way of thinking. Attempts to continue negotiations or revise
fixed terms will create distrust and suspicion and may be grounds to
terminate the agreement.
 German businesspeople tend to be traditionally cautious of new ideas and
concepts. Institutional change comes very slowly and often quite
reluctantly. Therefore, German businesspeople do not respond as much to
the “sell” as North Americans, Australians and Spaniards, which are
typically “high risk-taking” cultures. Tone down the “hype” and provide
lots of logical argumentation and concrete examples to back up your
proposal based on much more facts and data than you would use in your
home culture.
 Detailed planning has enormous value in German culture and is a
principal characteristic of German business co-operation

17. Individualism
 In Germany people stress on personal achievements and individual rights.
Germans expect from each other to fulfill their own needs. Group work is
important, but everybody has the right of his own opinion an is expected
to reflect those. In an individual country like Germany people tend to
have more loose relationships than countries where there is a collectivism
where people have large extended families

18. Do it the German Way!!!