Deutshcland

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Deutschland How German Socio-Cultural Norms Affect Business Practices

James Pound 998707X


Executive Summary (Zusammenfassung) Germany is a low context society: they value punctuality, formality, and are straight to the point. Their culture has a history based in aesthetics with many world famous artists and musicians contributing to their culture. However, in the past 100 years, Germany has had three revolutionary cultural shifts: the Third Reich, the Berlin Wall, and a freedom movement. After World War II, and the fall of the Berlin Wall, Germany geared it’s focus to manufacturing and engineering quality goods. This shift shaped Germany into the economic force it is now, yet created a national identity problem. Their turbulent past turned Germany into a long-term orientated society with a clear focus on the future, and less of a connection to past traditions. Through research, it was found that Germans are a private society, having a clear distinction between work and leisure. As a result, German workers are able to be efficient by successfully balancing punctuality and organisation. Efficient workers means efficient businesses and products; a unique selling point for many of Germany’s exports. When conducting business with a German organisation, it is recommended that a adiaphora cultural adaption is adopted in order to respect their personal life and opinions. It must also be understood that even though Germans do not intend to come off as rude and direct, even if it seems like they are, it is merely a culture trait.


Contents (Inhalt)

1.1 Introduction

Page 1

2.1 Privacy

Page 2

2.2 Verbal Communication

Page 3

2.3 Efficiency

Page 4

2.4 National Identity

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3.1 Conclusion

Page 7

4.1 Reflection

Page 8

5.1 References

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1.1 Introduction (Einführung) “Ich bin ein Berliner!” boasted United States President John F. Kennedy at the West Berlin Schöneberg Rathaus (City Hall) in 1963. Only 20 years earlier, the United States of America and Germany were on opposing sides in a world war that raged for six years. This statement by the ‘leader of the free world’ was a declaration of support for West Germany’s freedom. Freedom that unfortunately would not be granted to every German for another 16 years, when in 1989 the Berlin Wall fell and a divided country was united once again. With three revolutionary cultural shifts in the past 100 years (the Third Reich, the Berlin Wall, and now freedom), not only has the world changed its views on Germany, but it has also dramatically altered German culture. These revolutionary waves have resulted in Germany becoming a low context culture, which has also impacted German business practices. Although successful and highly-skilled historically in aesthetics (Beethoven, Bach and Händel for example), Germany has evolved into the powerhouse economy of the European Union (EU), and is now the fourth biggest economy in the world. This growth is a result of world leading industrialisation and engineering, but what other factors have driven growth? As in every nation, there are socio-cultural attitudes and norms that affect business practices, this is no exception for Germany. Germans are known for their efficiency, innovation and prosperity, which translate well to how they conduct business. In this report, I will explore how individual and collective cultural behaviours and ideals impact German business practices. Each cultural characteristic will be discussed, then shown how it impacts business, and finally compared to Australian business behaviour. The four key cultural areas I will be exploring are privacy, verbal communication, efficiency, and national identity.


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2.1 Privacy (Privatsphäre) 2.1.1 Overview In a video uploaded by user SamWaltonMan to YouTube in 2014, Sam (an American living in Germany) outlines the cultural differences between the U.S and Germany. He outlines that Germans are deeply private people that are known to keep to themselves and respect other people’s boundaries. They do not like discussing political, religious or monetary topics, “it’s just not something you want to discuss with someone you don’t know very well” Sam says, adding that even between friends these topics are taboo. It is considered rude to ask a German how much they earn, or how much something was, or even compliment them on something they may have purchased like a piece of furniture. As well as having taboo topics, Germans are also reserved when it comes to small talk.

2.1.2 Affect On Business Practices As a result of this privacy, when Germans go to work the only thing they have on their mind is work. German office environments rarely involve discussions of life outside the office, especially the aforementioned political, religious and monetary topics, and many may avoid small talk and office banter. This may make expats working from different countries to find it hard to start conversations and find friends at work. When conducting business with a German company representative, it would be respectful to have adopt an adiaphora cultural adaption. Adiaphora is a cultural adaption method where one person can identify a cultural characteristic and have the option to accept/ respect the cultural norm (Arunthaneset al., 1994, p. 46). For example if somebody from Scotland was conducting business with somebody from Germany, it would be respectful for the Scot to honour the German’s privacy, even though they do not necessarily have to.

2.1.3 Comparison To Australian Business Behaviour When it comes to privacy, Australian’s are quite open about their opinions. People in offices are unfazed to private questions that Germans may try to avoid (Australians may even answer questions about salary depending on the relationship). Office discussions and banter is prevalent, and many office environments create close friendships.


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2.2 Verbal Communication (verbale Kommunikation) 2.2.1 Overview Germans are known to be very direct and to-the-point when it comes to communication. This is a common characteristic of a low context society, where communication is almost always formal. Unless you are close friends, Germans may come off as reserved; as a result it may take a long time to create a friendship. Until you are officially friends, Germans introduce themselves by either Mr. or Mrs. (Herr or Frau) and their last name (for example: Hello, I’m Herr Pound, nice to meet you). Due to the differences between German and English languages, a German speaking English may come off as rude due to translation and inflection confusion. Germans end their words with a hard ending, which carries over to when they speak English. This blunt ending at the end of each word is what makes Germans sound rude to foreigners.

2.2.2 Affect On Business Practices Respect is important when it comes to business deals. Everyone in an office will respect each other. When conducting meetings with international business people, introductions with last names only is very common. This immediately sets a formal and direct business relationship. Business proposal presentations involve facts, graphs and statistics in order to get their point across as clearly and directly as possible. There is no interest for a long-winded pitch in order to sell. International businesses must acknowledge German inflection and understand that they are not being intentionally rude. This may adversely affect business relationships. Communication between colleagues remains formal at all times.

2.2.3 Comparison To Australian Business Behaviour Australians are quick to make friends, and although they try to establish a formal relationship, are more open to small talk and discussion. Each workplace will usually have groups of close friends, and introductions are less formal than those in Germany. Business and stranger introductions are on a first name basis (for example: Hi, I’m James, nice to meet you). Australian’s are not as direct of communicators as Germans are, however they still manage to get their point across and usually have no questions left at the end of a meeting even if they may go off in a tangent.


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2.3 Efficiency (Leistungsfähigkeit) 2.3.1 Overview Germany is world renowned for their efficiency and quality. There are few components that add up to their incredible efficiency: punctuality, organisation and work-life balance. Germans are punctual and avoid arriving anywhere late. If you invite them over to dinner at 7 pm, you will most likely see them right on 7 pm if not five to ten minutes earlier. But never late. Organisation is another important aspect of life as Germans are not fond of surprises or sudden changes or cancellations to appointments. German workers also have a well-balanced work-life. According to the OECD Better Life Index, Germans devote an average 15.3 hours a day to leisure and personal care, and only 5.2% of employees work “very long hours” (more than 50 hours a week).

2.3.2 Affect On Business Practices Efficiency is perhaps the number one reason why Germany is the powerhouse economy it is now. Efficiency at an individual level leads to corporate success. Workers are never late, leave on time and organise their work realistically. By having a generous work-life balance, when German employees go to work, they are only focused on their work. Germans believe that work is for work, and home is for leisure. This clear differentiation results in organisational efficiency. Management run their companies in a controlled, highly organised manor. This efficiency also carries over to engineering and design. Take the German automobile industry for example. Cars designed and manufactured in Germany are considered to be some of the best cars in the world with many high-end car brands originating from Germany: Mercedes-Benz, BMW, Volkswagen, Audi and Porsche. Their efficiency drives their ability to innovate. On the world stage, Germany accounts for 1% of world labour yet 10% of the world’s exports again showing just how efficient they are with time, their workforce and other resources.

2.3.3 Comparison To Australian Business Behaviour Australia is not known for their punctuality, but are not as bad as high context societies. Australians may not be as efficient as Germans are, they are highly proficient in many industries. They know how to work hard with 14% of workers working more than 50 hours a week, almost 10 percentage points more than German workers.


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2.4 National Identity (Nationale Identität) 2.4.1 Overview Germany’s economic growth and stability since the end of the second world war and the fall of the Berlin Wall has been unprecedented. This has created a slight image problem for Germans. On one hand, they are proud of the work they do, yet they are humble about it and do not necessarily show national pride. (Miller-Idriss & Rothenberg, 2012, p. 137).

This rapid economic growth has made Germany the powerhouse of the

EU, with some EU countries reluctantly depending on the German economy. These EU countries are cautious due to the events of the second world war and dislike the idea of Germany being the dominant country in the region by different means (force vs. finance). Germans acknowledge their past while trying to move on and learn from it. This is evident considering Germany scores an 83 ‘long term orientation’ using the Geert-Hofstede Cultural Dimensions theory. A high score like this means a society has some links to their past, but their is more of a focus on the future. According to the Geert-Hofstede Centre, Germany is also an individualist society (67, partly because of the desire to avoid large collective groups that plagued Germany in the first half of the 20th century.

2.4.2 Affect On Business Practices In order to move past historic events, businesses focused on making the best quality products as possible. Brands such as Volkswagen and Miele promote their goods as ‘German made’. This marketing technique is used as a unique selling point to international markets to convey high quality German engineering. Also in a push to distance itself from historic events, bribery and corruption in Germany is very low, ranking 12th least corrupt economy in the world on the Corruption Perceptions Index (out of 176 countries). This means businesses try to conduct business as ethically as possible. The individualistic nature results in Germans doing the best work they can possibly give in order to provide for their immediate family. Employees and businesses are future orientated and hold less to tradition.


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2.4.3 Comparison To Australian Business Behaviour Despite showing more nationalistic pride than Germany, Australia scores higher (90) than Germany for individualism using the Geert-Hofstede Cultural Dimensions theory. Meaning than workers are more self-sufficient and individually motivated. Alternatively, Australia is not as long-term orientated as Germany only scoring 21, resulting in a more conservative and traditional culture. Some Australian businesses pride themselves for being Australian made, and try to market Australian produce to be of higher quality to the world. An example of this would be beef to America, and dairy to China. The Australian made USP is not as big or renowned as German made.


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3.1 Conclusion (Abschluss) Germany is a highly individualistic, low context society valuing connections between immediate family over friends and colleagues. As a result, Germans are private and respectful to strangers. Their privacy directly translates to a differentiation between work and leisure. Where at work they focus purely on work tasks, and less on mingling between colleagues, leading to greater efficiency in the workplace. This efficiency works well for them as, when compared to the other countries, Germans work less yet are such a global economic force. German society has a long-term orientation, where they place less focus on tradition (due to a turbulent 20th century), and more on future prosperity. Through organisation, perseverance, and acceptance of the past, Germany has become a peaceful country to work in and an enviable world economy. 


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4.1 Reflection (Reflexion) While researching Germany, I discovered the real reason behind ‘German Efficiency’. I learnt that Germany, and German people are fairly liberal people compared to rest of the world and even other EU countries. This is a stark change coming off of their recent historical events of which the German people are not proud of, yet they have accepted this past and have tried to improve themselves because of it. Although they are famous for their aesthetic and material culture, their national culture and culture at a more individual level is built on a delicate set of socio-cultural norms.

Thank you for reading. Danke für das Lesen.


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5.1 References (Verweise) Arunthanes, W, Tansuhaj, P, Lemak, D.J, 1994, ‘Cross-cultural Business Gift Giving: A New Conceptualization and Theoretical Framework’, International Marketing Review, vol. 11, no. 4, pp. 44 - 55 BBC News, ‘Ich Bin Ein Berliner’, BBC News, accessed 8th September 2015, <http://news.bbc.co.uk/onthisday/hi/ dates/stories/june/26/newsid_3379000/3379061.stm> Eryn Paul, WHY GERMANS WORK FEWER HOURS BUT PRODUCE MORE: A STUDY IN CULTURE, Knote, accessed 9th September 2015, <http://knote.com/2014/11/10/why-germans-work-fewer-hours-but-produce-more-astudy-in-culture/> Knoema, World GDP Ranking 2015, Knoema, accessed 8th September 2015, <http://knoema.com/nwnfkne/worldgdp-ranking-2015-data-and-charts> Miller-Idriss, C, & Rothenberg, B, 2012, ‘Ambivalence, pride and shame: conceptualisations of German nationhood’, Nations and Nationalism, vol. 18, no. 1, pp. 132 - 155 OECD Better Life Index, Work-Life balance, OECD, accessed 10th September 2015, <http:// www.oecdbetterlifeindex.org/topics/work-life-balance/> Olaf Simons, Why do people think German is an ugly, harsh, and rude language?, Quora, accessed 11th September 2015, <http://www.quora.com/Why-do-people-think-German-is-an-ugly-harsh-and-rude-language> Passport to trade, German Business Communication, Business Culture, accessed 8th September 2015, <http:// businessculture.org/western-europe/business-culture-in-germany/business-etiquette-in-germany/> Passport to trade, German Business Etiquette, Business Culture, accessed 8th September 2015, <http:// businessculture.org/western-europe/business-culture-in-germany/business-etiquette-in-germany/> PBSNewsHour, 2012, How Germany Became Europe's Richest Country, YouTube, accessed 8th September 2015, <https://www.youtube.com/watch?v=Uad1Ma5DSMA> Petya Vetseva, Culture and social etiquette in Germany, Expatica, accessed 8th September 2015, <http:// www.expatica.com/de/insider-views/Culture-and-social-etiquette-in-Germany_106557.html> Prapul Kumar, 2013, BBC News How Germany became Europe's indispensable power, YouTube, accessed 8th September 2015, <https://www.youtube.com/watch?v=IfHYyCDbDtY> Salford Business School, 2013, German Business Culture Video, YouTube, accessed 8th September 2015, <https:// www.youtube.com/watch?v=n8K9FZo4OlI> SamWaltonMan, 2014, Life In Germany - Ep. 54: Cultural Differences, YouTube, accessed 8th September 2015, <https://www.youtube.com/watch?v=Q0MHRTAfCCc> SamWaltonMan, 2014, Life In Germany - Ep. 59: More Cultural Differences, YouTube, accessed 8th September 2015, <https://www.youtube.com/watch?v=woUZCk58iCQ> The Hofstede Centre, What About Australia?, The Hofstede Centre, accessed 10th September 2015, <http://geerthofstede.com/australia.html> The Hofstede Centre, What About Germany?, The Hofstede Centre, accessed 10th September 2015, <http://geerthofstede.com/germany.html> The Local, Ten tips for German business etiquette, The Local, accessed 8th September 2015, <http://www.thelocal.de/ galleries/others/1773> Transparency International, Corruoption Percentages Index 2014, Transparency International, accessed 10th September, <https://www.transparency.org/cpi2014/results>


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