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GERMANY’S BUSINESS
 ETIQUETTE 2011
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 Hofstede
         Power distance (35)                   Individuality(67)

Germany‟s lowest score was 35          Germany scored 67 points on
points on Hofstede‟s power distance    individualism, the tendency of
index. This index measures the         people to look after themselves
extent to which less powerful          and their immediate family only.
members accept that power is
distributed unequally in German        That score is 56% higher than
institutions and organizations.        the world average score for
Germany‟s power distance index         individualism, but 26% lower
score is 36% below the world average   than the United States.
score, and 14% lower than the U.S.
Analyze after the model of Hofstede

Uncertainty avoidnce(65)                   Masculinity(66)


Germany scored 65 points on Hofstede‟s     Germany scored 66 points on
uncertainty avoidance index. This index    masculinity, a cultural characteristic in
measures the extent to which people feel   which success, money and material
threatened by ambiguous situations and     possessions form the dominant values
have created beliefs and institutions to   in society.
avoid such risks.                          That score is 32% higher than the
That score is only 2% above the world      world average score for
average score for uncertainty              masculinity, and 6% higher than the
avoidance, but 41% higher than the U.S.    U.S.
where Americans are much more
comfortable with risks associated with
change.
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‟s and Don‟ts
DO take plenty of business cards with      DON‟T discuss personal matters
you and ensure they include full details   during business negotiations, as this is
of your background, qualifications, and    considered to deviate from the task at
titles.                                    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 business
introductions.                             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 indirect
invites you to use the informal “Du”       communication styles during
form. It is usually best to let your       business meetings with you German
German counterpart take                    counterparts. It creates an impression
the initiative of proposing the informal   of insincerity and dishonesty.
form of address
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
precision
Chrysler – creativity, symbol of American adaptability and
resilience, efficiency, empowerment

National Culture influence : attitudes to work, authority and equality.
Working late hours vs. Working on deadlines
Command 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 !

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Germany’s business etiquette 2011

  • 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. „ 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.
  • 4. Task orientation Technical competence => place facts before sentiment Deal-orientated Stick to agenda and careful planners
  • 5. 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.
  • 6. Analyze after the model of Hofstede Power distance (35) Individuality(67) Germany‟s lowest score was 35 Germany scored 67 points on points on Hofstede‟s power distance individualism, the tendency of index. This index measures the people to look after themselves extent to which less powerful and their immediate family only. members accept that power is distributed unequally in German That score is 56% higher than institutions and organizations. the world average score for Germany‟s power distance index individualism, but 26% lower score is 36% below the world average than the United States. score, and 14% lower than the U.S.
  • 7. Analyze after the model of Hofstede Uncertainty avoidnce(65) Masculinity(66) Germany scored 65 points on Hofstede‟s Germany scored 66 points on uncertainty avoidance index. This index masculinity, a cultural characteristic in measures the extent to which people feel which success, money and material threatened by ambiguous situations and possessions form the dominant values have created beliefs and institutions to in society. avoid such risks. That score is 32% higher than the That score is only 2% above the world world average score for average score for uncertainty masculinity, and 6% higher than the avoidance, but 41% higher than the U.S. U.S. where Americans are much more comfortable with risks associated with change.
  • 8. 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
  • 9. Do‟s and Don‟ts DO take plenty of business cards with DON‟T discuss personal matters you and ensure they include full details during business negotiations, as this is of your background, qualifications, and considered to deviate from the task at titles. 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 business introductions. 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 indirect invites you to use the informal “Du” communication styles during form. It is usually best to let your business meetings with you German German counterpart take counterparts. It creates an impression the initiative of proposing the informal of insincerity and dishonesty. form of address
  • 10. 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 precision Chrysler – creativity, symbol of American adaptability and resilience, efficiency, empowerment National Culture influence : attitudes to work, authority and equality. Working late hours vs. Working on deadlines Command 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.
  • 11. Thank You For Your Attention ! Danke Für Ihre Aufmerksamkeit !