GERMANY’S BUSINESS

ETIQUETTE 2011

Roxana Darjan

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

„ It takes time to do a thing well ”

Why Prepare?

It’s a jungle out there…..

Competition is strong, and the way we present ourselves is under closer examination more than ever before.

Task orientation

Technical competence => place facts before

sentiment

Deal-orientated

Stick to agenda and careful planners

Communication Style:

The Eiffel Tower Culture as orders come from the top to the bottom.

A low-context culture - Individualism , Personal Achievements , Truth and Directness

Non-verbal Communication - Shaking Hands, Being Punctual, Eye Contact.

Silence interprets uncertainty and negativity.

Analyze after the model of HofstedePower distance (35)

Germany’s lowest score

was 35 points on

Hofstede’s power

distance index. This index

measures the extent to

which less powerful

members accept that

power is distributed

unequally in German

institutions and

organizations.

Germany’s power

distance index score is

36% below the world

average score, and 14%

lower than the U.S.

Individuality(67)

Germany scored 67

points on

individualism, the

tendency of people to

look after themselves

and their immediate

family only.

That score is 56%

higher than the world

average score for

individualism, but 26%

lower than the United

States.

Analyze after the model of Hofstede

Uncertainty avoidnce(65)

Germany scored 65 points on

Hofstede’s uncertainty

avoidance index. This index

measures the extent to

which people feel

threatened by ambiguous

situations and have created

beliefs and institutions to

avoid such risks.

That score is only 2% above

the world average score for

uncertainty avoidance, but

41% higher than the U.S.

where Americans are much

more comfortable with risks

associated with change.

Masculinity(66)

Germany scored 66 points

on masculinity, a cultural

characteristic in which

success, money and

material possessions form

the dominant values in

society.

That score is 32% higher

than the world average

score for masculinity, and

6% higher than the U.S.

Hours of Business : From 8:00 or 9:00 a.m. to 4:00 or 5:00 p.m. Monday through Thursday . Most of German companies have a short Friday, which means the weekend starts few hours earlier.

Business Dress : In Germany business dress is conservative. Men wear dark suits, sedated ties, and white shirts. Women wear dark suits, pantsuits and blouses that are neutral in color. Don’t take off a jacket or tie. Most Germans will remain fully dressed even in extreme heat.

Meetings: Professional titles such as in ‘Herr Direktor Doktor,’ is now considered old-fashioned.

Presentations: At the end of a presentation, Germans may signal their approval by rapping their knuckles on the tabletop stead of applauding.

Negotiation: Many of them do not appreciate aggressive sales techniques and view negotiations as a ‘necessary evil’ rather than a process to enjoy.

Social Values : In Germany’s business culture, the respect a person enjoys depends primarily on his or her achievements, status and rank, and education.

Gifts : good-quality pens, imported liquor, something from your home city

DO take plenty of business cards with you and ensure they include full details of your background, qualifications, and titles.

DO maintain direct eye-contact when addressing German colleagues, especially during initial introductions.

DO use the formal version of you (“Sie”), unless someone specifically invites you to use the informal “Du” form. It is usually best to let your German counterpart takethe initiative of proposing the informal form of address

DON’T discuss personal matters during business negotiations, as this is considered to deviate from the task at hand.

DON’T try to surprise them. Germans do not like surprises. Sudden changes in business transactions, even if they may improve the outcome, are unwelcome.

DON’T use exaggerated or indirect communication styles during business meetings with you German counterparts. It creates an impression of insincerity and dishonesty.

Do’s and Don’ts

Daimler-Chrysler Merger Failure

Daimler Chrysler's success depended on integrating two starkly different corporate cultures. Daimler-Benz - methodical decision-making, respect for authority, bureaucratic precisionChrysler – creativity, symbol of American adaptability and resilience, efficiency, empowerment

National Culture influence : attitudes to work, authority and equality.Working late hours vs. Working on deadlinesCommand lower-levels vs. Discuss with lower-levels

Differences in culture between the two organizations were largely responsible for this 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 issues and to focus instead on organizational or structural issues.

Thank You For Your Attention !

Danke Für Ihre Aufmerksamkeit !