DOING BUSINESS IN GERMANY

GERMANY

FACT & FIGURES

DOING BUSINESS IN GERMANY

Official name: Federal Republic of GermanyCapital: BerlinArea: 147,883 sq miPopulation: 82,329,758 (2009)

FACT & FIGURESLanguagesGerman official, English, Russian, Sorbian.Religious Affiliations:Protestant 37 %Roman catholic 35 %Muslim 4 %Life expectancyTotal 79.3 %Female 82.4 %Male 76.3 %

(GDP) 3.3 trillion US

COMMUNICATION STYLENon- Verbal Communication:

Shake hands at both the beginning and the end of meeting.

Good eye contact.

In meeting, age takes precedent over youth.

Being punctual and do not sit until invited.

Silence is not an appropriate way of communication.

COMMUNICATION STYLECommunication Network:

Germans put authority and hierarchical differences in front.

The Eiffel Tower Culture-everything is coordinated from the top.

Electronic Communication

New innovation

Email

COMMUNICATION STYLE

• Their communication are very explicit.

• Confrontations among workers often happen.

• Business decisions are no made over the phone.

• It is better to able to speak German when dealing with Germans.

• Business people do not appreciate humor to their works

TEAMWORK

Group of individuals working to specific leader towards a recognizable goal.

Individual, very planned and regulated by rules, agendas and calendars.

After clear instruction, Germans team members are let alone to perform the task.

Cross-departmental teams is very difficult to manage.

WOMEN IN BUSINESS

• Many women rights still out dated, despite Germany 1st woman chancellor –Angela Markel

• Few women in management positions.

• 60% of women work outside of home(age 15-60 ).

Only about 30% of these work in professional positions and only 40% work full time.

BUSINESS DRESS CODE In Germany dress in corporate business or in banks

is generally formal, dark colored and conservative for both men and women.

Other wise business dress is usually casual; suites are usually worn by clerk and other office staff who are in higher level.

In banks usually men are more formal than their women co-worker, as they often wear suites and ties, while dress code in IT sector is completely casual.

BUSINESS STRUCTURE• Everybody knows what is expected of them and has a

process to help them achieve clearly identified goals.

• Management Board/Vorstand is the final decision maker on the company policy matters, and they are responsible for the overall management of the company.

• Chairman of the company has less personal power than in other companies.

• Large companies have Supervisory Board which appoints the Management Board.

BUSINESS STRUCTURE• Below Management Board level, companies tend to

have a strictly hierarchical approach where individual's specific roles and responsibilities are tightly defined and structured.

• Good side - Everybody know what is expected from them.

• Bad side - General opinion is that the Germans are inflexible and slow to change to new situation.

GENERAL MANAGEMENT STYLE• Future oriented with long terms goals.

• Very competitive but don’t like price competition. They rather seek for market share than market domination.

• Concentration on excellence in their product and services.

• Managers and their teams are strongly product oriented, believing that good product will sell itself.

• Managers are not risk takers and they have universalistic approach to ideas and practice.

• German Management is sensitive to government standards, policies and government regulation.

GENERAL MANAGEMENT STYLE

• Relationship between managers and workers is close to create great product, but still distant and cold in comparison to some other countries –formal.

• They are technically capable in their respective areas with clear and strong leadership.

• Appraisal system are difficult to implement, as the Germans are asked to perform their tasks professionally.

• All Germans product are subject to The General Industrial Norms-Deuctche Industrie Normen/DIN which is firmly imbedded in the consciousness of German managers.

MEETING STYLES AND ENVIRONMENT

• Pre-planners, well prepared and informed and they expect the same from other side.

• No relationship between them and business partners.

• Address issues ,problems and facts through very technical communication behavior.

GEERT HOSFTEDE: CULTURAL DIMENSION

GERMANY CANADA

TIPS FOR SUCCESS Learn about German values and norms. Channel information in formalized structures, using directness in

communication. Use business English so that it can be understood as a second

language. Adapting business to obligations regarding the environment By communicating in a direct way, focusing more on facts and

targets than personal. Knowing when to use task or relationship orientation Defining tasks and their scope.

Formality, directness and timeliness, deductive decision-making.

THANK YOU!