INTER-CULTURAL MANAGEMENT

THE GERMAN MODEL

Prof. Alexandra Y. BENZ AYBenz@aol.com

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THE GERMANIC WORLD

Geographically, the Germanic World includes Germany, Austria, 60% of Switzerland, a tiny portion of Holland and of Belgium, and another one of North-East Italy (going by the language) Czechs and Slovaks as businessmen and negotiators, behave very much like Germans but not quite. Many Germans are comfortable conducting business in English and their values are pretty much the same as in the Anglo-Saxon country cluster: Their Values are those expressed in protestant ethics - individuals prevail over institutions and are directly responsible for their lives and their actions - individuals are equal in rights - autonomy, progress and individual achievement are valued

THE GERMANIC WORLD

(1) THE GERMAN FIRM and its cultural environment: 3 main differences from the Anglo-Saxon model: - Fear of risks and novelties .. High Uncertainty Avoidance: anxious people Order is reassuring (ORDNUNG) .. Importance of plans, rules, procedures and structures .. Resistance to risks and change .. Very much past-oriented .. Much less entrepreneurial than other AngloSaxons, or Latins
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THE GERMANIC WORLD

- Compartmentalization (in space, in time, and in work organization) .. A consequence of the above .. Flat organization charts .. Cloisoning of people and information .. Executives are experts, often Engineers .. Companies operate like decentralized, well-oiled machines .. Sanctity of living space: Lebensraum - Slow decision-making but quick implementation of decisions .. Federalistic and democratic approach of decisionmaking; search for consensus .. Strict respect of decisions, laws and regulations .. Strong business and corporate ethics (CSR, 4 Green ideology, sustainability)

THE GERMANIC WORLD

Better balance between individualism and collectivism than in the USA:
- Manifest concern and care for other members of in-groups - Ideal of solidariy in the society (Sozialdemokratie) Longer-term orientation than in the USA (LT planning in Germany is 10year vs. 3-year LT planning in the USA) Relatively more formal (respecting titles, hierarchies and status) than in the USA, with more straight-forward and direct communication, however

THE GERMANIC WORLD

(2) NEGOTIATING STYLE

A strongly monochronic culture, where Pnktlichkeit is essential

Much preparation and organization; some rigidity in execution later Direct communication: abruptness and readiness to get to the point Proud of speaking their mind, they are not afraid to say NO, simply NO... . It generally, means NO, but Germans answer questions willingly, in a desire of clarity and transparency, and they also ask many questions themselves Clarity of mutual understanding is the prime goal of a negotiation They like breaks for brainstorming and coordination, and they often ask for brainstorming time before making important decisions

THE GERMANIC WORLD

They make few concessions, and will like to trade them They are completely committed: totally serious and reliable in the long term at execution level, respecting their contractual obligations by the letter They like progress reports, ongoing communication and some re-assuring control mechanisms in the execution of a contract They show simple manners, and make no socializing effort Slow and formal negotiating pace: they make and expect detailed formal presentations, supported by (past) facts and figures. History and background information are expected, not fancy visuals They make realistic initial first-offers without high-low tactics ever
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THE GERMANIC WORLD

Much emphasis is laid on the legal aspects and the fine points of written contracts. The expection is that the contract will NOT be renegotiated or modified soon after it has been signed
Transparency and honesty are a must: better report issues, failures or failed comitments rather than hide them during execution... Much personal consistency is expected from each Negotiator in the Team(s) Emotions are put aside, until the end of the negotiation Not a gift-giving culture Not much humor either
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THE GERMANIC WORLD

(3) BUSINESS PROTOCOL Formal dress codes (on the first few days), becoming more casual later

Addresses are very formal and use titles: stay with titles, family names and Sie, until your counterpart suggests moving to a less formal mode
Strong handshakes; eye contact. Smiles are saved for friends and family Not much haptics. Also, interpersonal distance is longer with Germans than with Latins and Arabs. They would feel invaded in their private space otherwise....

Not much entertainment or socializing: they are more task- and goaloriented than relationship-orientated in business relations