Since unification in 1989, Germany is Europe’s most populous nation and largest economy. It is situated at the heart of the European continent and fundamentally shaped by Europe’s history.
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Germany Today
Germany is characterised by deep regional identities while at the same time also conveying a ‘national’ German culture. In today’s global business environment, developing successful business strategies and valuable business relationships, based on an awareness of this German culture, is essential for your organisation.
Germany Culture – Key Concepts and Values
Ordnung – Most aspects of German living and working are defined and regulated by structures through for example laws, rules and procedures, which are evident in all economic, political and even social spheres. In German business culture this is for example reflected in adherence to prescribed rules and, consequently, a low degree of flexibility.
Facts – Objective facts are considered essential in decision-making and problem-solving; in business negotiations the preferred approach to successful decision-making is based on logic and analysis of information rather than on intuition and personal networks.
Task-Oriented – In their approach to work, Germans tend to focus on achieving the task at hand. Coupled with their well-defined structures, this implies that interpersonal relationships play a secondary role in business dealings. The attention paid to targets to be achieved is evidenced in the precision of timetables, meeting planning and achievement of milestones. Close adherence to time schedules is also considered vital.
Communication – A vital component to understanding business negotiations is the direct, seemingly confrontational communication style. In business discussions or planning, openly-expressed criticism tends to be directed at aspects of the problem, project or business at hand; it should not be considered as personal disapproval.
Individualist yet Consensus-Seeking – As most western European cultures, Germany is marked by a strong sense of individualism. Nevertheless, the desire to achieve one’s own goals and successes is coupled with a keen sense of responsibility for ‘the good of the community’. In many business decisions, not only the financial benefits to the company are important, but also those of its employees. The structure of much German business decision-making requires consensual input from both employers and employees—which can render decisions comparatively slow.
Doing Business in Germany
Germany has played a central role in Europe’s history and is today a major player in economic and political organisations. Following the country’s reunification, Germany now has one of the world’s most productive economies. Its economic success is mainly built on its strong export industries, fiscal discipline and welfare policy which helped the country to rebound more robustly from the global financial crisis than other EU members.
Situated at the centre of Europe, Germany is an ideal base for tapping into all other European markets. However, before considering doing business in Germany, it is necessary to take into consideration a number of aspects vital for your success.
Germany Business, Part 1 - Working in Germany: Working practices in Germany
Structure and hierarchy in German companies
Working Relationships in Germany
Germany Business Part 2 - Doing Business in Germany: Business practices in Germany
Business Etiquette (Do’s and Don’ts)
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 take the initiative of proposing the informal form of address (this implies readiness to develop a personal relationship).
DON’T discuss personal matters during business negotiations as this is considered to deviate from the task at hand.
DON’T attempt to continue negotiations after a contract has been signed. Your German colleagues may view this with suspicion, which could lead to an unsuccessful business agreement.
DON’T use exaggerated or indirect communication styles during business meetings with your German counterparts. It creates an impression of insincerity and dishonesty.
German Culture Quiz - true of false
1. Germans sometimes gently rap their knuckles on the table instead of applauding at the end of a business meeting.
2. It is impolite to shake hands with one hand in your pocket.
3. At a dinner party, nobody may drink until the guest has made a toast.
4. The ‘thumbs up’ gesture is not only a sign of appreciation and agreement but also means the number one.
5. German executives prefer to keep their office doors open to create a feeling of openness and mutual trust.
German Culture Quiz - Answers
1. True.
2. True.
3. False. It is customary for everyone to wait until the host has drunk first.
4. True.
5. False. You will often find that Germans are very private people and will therefore keep their office doors closed.
Germany Today
Germany is characterised by deep regional identities while at the same time also conveying a ‘national’ German culture. In today’s global business environment, developing successful business strategies and valuable business relationships, based on an awareness of this German culture, is essential for your organisation.
Germany Culture – Key Concepts and Values
Ordnung – Most aspects of German living and working are defined and regulated by structures through for example laws, rules and procedures, which are evident in all economic, political and even social spheres. In German business culture this is for example reflected in adherence to prescribed rules and, consequently, a low degree of flexibility.
Facts – Objective facts are considered essential in decision-making and problem-solving; in business negotiations the preferred approach to successful decision-making is based on logic and analysis of information rather than on intuition and personal networks.
Task-Oriented – In their approach to work, Germans tend to focus on achieving the task at hand. Coupled with their well-defined structures, this implies that interpersonal relationships play a secondary role in business dealings. The attention paid to targets to be achieved is evidenced in the precision of timetables, meeting planning and achievement of milestones. Close adherence to time schedules is also considered vital.
Communication – A vital component to understanding business negotiations is the direct, seemingly confrontational communication style. In business discussions or planning, openly-expressed criticism tends to be directed at aspects of the problem, project or business at hand; it should not be considered as personal disapproval.
Individualist yet Consensus-Seeking – As most western European cultures, Germany is marked by a strong sense of individualism. Nevertheless, the desire to achieve one’s own goals and successes is coupled with a keen sense of responsibility for ‘the good of the community’. In many business decisions, not only the financial benefits to the company are important, but also those of its employees. The structure of much German business decision-making requires consensual input from both employers and employees—which can render decisions comparatively slow.
Doing Business in Germany
Germany has played a central role in Europe’s history and is today a major player in economic and political organisations. Following the country’s reunification, Germany now has one of the world’s most productive economies. Its economic success is mainly built on its strong export industries, fiscal discipline and welfare policy which helped the country to rebound more robustly from the global financial crisis than other EU members.
Situated at the centre of Europe, Germany is an ideal base for tapping into all other European markets. However, before considering doing business in Germany, it is necessary to take into consideration a number of aspects vital for your success.
Germany Business, Part 1 - Working in Germany: Working practices in Germany
Structure and hierarchy in German companies
Working Relationships in Germany
Germany Business Part 2 - Doing Business in Germany: Business practices in Germany
Business Etiquette (Do’s and Don’ts)
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 take the initiative of proposing the informal form of address (this implies readiness to develop a personal relationship).
DON’T discuss personal matters during business negotiations as this is considered to deviate from the task at hand.
DON’T attempt to continue negotiations after a contract has been signed. Your German colleagues may view this with suspicion, which could lead to an unsuccessful business agreement.
DON’T use exaggerated or indirect communication styles during business meetings with your German counterparts. It creates an impression of insincerity and dishonesty.
German Culture Quiz - true of false
1. Germans sometimes gently rap their knuckles on the table instead of applauding at the end of a business meeting.
2. It is impolite to shake hands with one hand in your pocket.
3. At a dinner party, nobody may drink until the guest has made a toast.
4. The ‘thumbs up’ gesture is not only a sign of appreciation and agreement but also means the number one.
5. German executives prefer to keep their office doors open to create a feeling of openness and mutual trust.
German Culture Quiz - Answers
1. True.
2. True.
3. False. It is customary for everyone to wait until the host has drunk first.
4. True.
5. False. You will often find that Germans are very private people and will therefore keep their office doors closed.
