BABES-BOLYAI UNIVERSITY FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ NAPOCA

GERMANYS BUSINESS CULTURE

Student,

2013

GERMANYS BUSINESS CULTURE

The reason why I choose Germany is because it is a major trading partner for many countries throughout the world and also the most important market in the European Union. Everybody wants to be active in this market so I think that first of all it is very important to know some characteristics of Germans business culture in order to succeed on this market.

The topics that Im trying to follow in this presentation are: A short introduction about Germanys business and economy; German Business Values German Business Mentality Business communication And finally I tried to draw a conclusion.

I want to start from putting a very simple question: Which qualities came into your mind when youre thinking about Germans as businessmen? I asked myself this question when I started to organize this presentation and I found the same answers that Im very sure you are thinking about too. The reason for this question is that, in my opinion, these words are the basic characteristics which form the entire German business culture. Some of the characteristics mentioned above form, as we can see, the most important values of German business culture which are: Punctuality

Punctuality is very important for Germans. Unpunctual business partners are perceived as lacking seriousness and thus credibility. So, unexcused lateness should be avoided at all costs. Showing up even five or ten minutes late to a meeting is considered rude. Formality

Formality refers on respecting some requirements regarding business behavior, decision-making process, negotiation and so on. Professionalism Professional rank and status in Germany is based on an individuals achievement and expertise in a given field. Academic knowledge are important at the expense of family relationships.

Bluntness

Germans are not subtle, they usually want to get straight to the point, even if the subject can make partners uncomfortable. Fairness, integrity, loyalty

One of the very important characteristic in German business ethics is the ability to have a personal integrity and to be loyal to associates. A lack of integrity could be a reason for managers to fire people. Privacy

For German businessman, work and personal lives are strictly divided.

Also, for Germans: Long term commitment and company stability are top priorities. Germans are looking for honesty which must be proven over a long period of time. Rushing this process may be considered suspicious. In Germany, quality equals durability. Business is organized into vertically hierarchical structures. Decision-making is often a slow and detailed process. Individual work counts most. Germans do not like surprises. Sudden changes in business transactions, even if they may improve the outcome, are unwelcome. Germans pay a lot of attention to environmental issues. These are major concerns and are highly regulated in Germany. Gift-giving is often inappropriate. The only gifts that are allowed are: souvenirs from businessman home country, office equipment like good quality pens with personal companys logo. Business is viewed as being very serious, and Germans do not appreciate humor in a business context.

Communication is very formal and Germans tend to be direct. German business people do not operate an open-door policy. People often work with their office door closed and counterparts are expected to knock and wait to be invited in before entering. Communication can be divided into 2 sections: verbal and non-verbal. About non-verbal communications we could speak about: Eye contact

Eye contact is expected and very respected because it shows attention and interest in the conversation Greetings

Male greet counterparts with a firm handshake at both the beginning and the end of a meeting. Body language

German businessman use a very few hand gestures. It is maintained a great personal distance. It is forbidden to put hands in pockets while speaking or leave suit jacket even if it is warm. Public behavior

Public behavior must be reserved and formal. For example, shouting at a person who is far away can be considered as a lack of politeness Business cards

Business cards is another form of business communication because in a meeting context, an exchange of business cards usually take place.

Forms of communication The most important forms of communication are email and telephone. Emails, letters and missed phone calls should be answered within 24 or 48 hours. Presentations are made by the last name. Work program

Nobody works after 5 pm on Monday through Thursday and after 4 pm on Friday. Germans are very organized people, if they do not finish the work in time means that they didnt plan the day properly. Also, it is likely to avoid business meetings in the months of July and August or around the times of national holidays. Topics for discussion

Because they keep separate personal life from work life, they always avoid to speak about family at work. But if a person want to break the ice there are some topics that could be discussed like: sport,

international travel, business issues. Questions related to family, salary, age, politics and religion are forbidden.

Intercultural incident a) The first incident which I want to tell you is about how Germans act in work environments and the differences between Germans behavior at work versus after work. A Pole, who started working for a German firm years ago, reported that his colleagues at work would very rarely say anything remotely personal, or utter any statements longer than necessary. However, when after a few months they started frequenting pubs together the same Germans turned out to be sociable and friendly. Still, the way they communicated at work never changed and the Pole admitted, But Ive never met a German who would talk for a long time, anyway. This incident emphasize the fact that German tend to be very serious when its about work, they have a lower power distance in work environment, they are more individualistic. But, in comparison, when Germans are in other environment, between friends, they have a closely behaviour, they are friendly. Business is taken as very serious so Germans act in accordance.

b) Incident between intercultural business behavior appear also in management styles. A German manager is working with an executive from Japan who has issues with his European team. The goal of the meeting is to discuss differences between European and Japanese management styles. The German manager asks questions such as What do you think your team member xy thinks of you? What do you think is important for your team member xy? The executive answers I dont care, I am the manager and I want him to do what I say. The conclusion of this incident is that Germans are very interested in the satisfaction of employees because they know that employees and the relationship between them are two important aspects for a successful business. In comparison, for Japanese managers count only their satisfaction in terms of a successful business.

In conclusion, if we take into consideration Germanys motto we can see that there are 3 elements which narrow emphases the most important characteristics of Germans business culture: unity, freedom and justice.