Business Meeting set up. [1]
Communication Styles
German Business Men Discussing. Image from: https://swhite19.wordpress.com/2013/10/08/communication-style/
Not only should you consider what to say, but consider when to say it. Why? Well in Germany, first impressions are very important to German[1]. Be aware that your first impression could possibly impact the outcome of your business relationship with your German counterpart[1]. As a result of such important interactions here are a few points to consider:
- Keep a generous amount of space between you and the German counterpart[1].
- Eye contact is expected and respected – especially when toasting[1].
- German’s value their privacy[1].
- Germans are very straightforward, they like to get to the point quickly and expect to have results at the end of any meeting[1].
- Germans tend to put truth and directness before diplomacy, believing that fact is the important issue and that personal emotions should not stop the truth from being spoken[2].
German managers tend to communicate by focusing on the actions[2]. As Germans focus on results, being direct and targeting company results managers are able to communicate well with their employees.2 Rather than listing many alternatives and ideas, it is common and should be expected that only the best recommendation are tabled[2]. Recommendations are usually followed with lots of detail and an emphasis on the practicality of their ideas[2]. If discussing only the actions of the company seems not to be working consider adapting your language to include thoughts and vocabulary specific to idea communicators. Germans also use the idea communication style to communicate with their employees as Germans are known to be very innovative, they are always thinking of ways to improve[2].
- HINT: This directness in communication style sometimes comes off as a coded language. German businessmen often come off as arrogant, but this arrogance is just a misinterpretation of direct speech[2].
Method of Communication in Germany. Video from https://www.youtube.com/watch?v=twcPmRTVStM
Global Leadership Dimension
The pyramid above is a visual aid to show Germany’s top three leadership dimensions: self-protective leaders, autonomous leaders, and humane leadership[3].
German managers strive to create a perfect system. There is a clear chain of command in each department and information and instructions are passed down from the top of the chain as a result of the goal for a perfect system, consensuses are highly valued and are usually the ultimate goal, but what upper management thinks is still ultimately the final result[3].
Other management information:
- German managers tend to be procedural and status-conscious. A characteristic of the self-protective dimensions is face-saving, which is exactly what German managers believe in. They like to get right to the point, and if that means enduring conflict along the way, it is not much of a worry because in the long run time is saved[2].
- In a work place setting, compassion is low and interpersonal relationships are straightforward and stern[4].
- Characteristics of an effective German leader are high performance orientation, low compassion, low self-protection, low team orientation, high autonomy, and high participation[4].
Work Motivation Strategy
The question we know all expatriates are asking is: “How can they boost their employees engagement?”
Here is what you need to know
Assure you’re monochromic. Your German employees are all monochromic. Time is strict, and if you want to motivate your employees, you will need to show that you share the values, especially in regard to time[5]. A monochromic culture means that employees are given specific deadlines and feel accomplished when all requirements are met. As such, Germans are more responsive to intrinsic rewards; they feel accomplished from a job well done[5].
While the stress on being time focused will be valuable, its also noteworthy that Germans place a high value on security, fringe benefits and “getting ahead”. Germans live to work rather than work to live. They want to enjoy going to work and take pride in all of their output and do not necessarily want to be motivated solely on money[5].
Trust and Relationships
Trust is the fundamental platform for relationships in Germany; it is no different to North American culture as in Canada trust profoundly impacts relationships[1]. Since personal relationships are kept to a minimum, trustful relationships are mainly formed by work related relations[1]. Expect as well for these relationships to motivate employees and to affect other relationships with other employees in the business. As many Germans are concerned with their image, and how others perceive them, if others think highly of say a third person, they too are more likely to think highly and trust this third person[2]. As a potential manager levy this to your advantage. The point above shows that you do not need to befriend/gain the trust of every employee rather just a few so that others employees will automatically trust you too. Below please refer to the graph as to highlight other counties’ perceptions on trust:
Table from: http://cdn.static-economist.com/sites/default/files/images/2013/05/blogs/graphic-detail/20131130_wom111_0.
Contemporary Approach to Global Leadership
| Leadership Approach | Pros | Cons |
| Universal Leadership | -Charismatic and transformational leadership is perceived as successful within Germany6
-Transactional leadership approaches would be likely to fit more firmly with Germany’s hierarchical structure and formal approach |
– Culturally Germany is more formal, a charismatic approach if not careful may alienate workers, which is why less charismatic approaches and more process oriented ones have been widely successful despite some leaders being considered “boring”.6 |
| Contingency Leadership | -Autonomous leadership (GLOBE dimension) is promoted
-Personal work style balancing with German expectations can reduce manager-worker internal fictions -Germans have respect for leaders |
– Working as a manager focused on continual global team needs can result in less effective decisions for the company as a whole |
| Normative Leadersip | -Consider team orientation to be very important
-Supports structures of cultural dynamics -Mixing actions and values can ensure leader’s original characteristics are used within Germany’s cultural confines |
-Less participative in Germany as decisions are more centralized even if teams are valued
-Actions being perceived as wider and more open may not be beneficial to the more serious nature of this business culture |
Salaries & Gaps Between Men and Women
Currently, men are earning 16.6% more than women as a mean average[1]. Image from: http://www.oecd.org/gender/data/genderwagegap.htm
Relevance to expatriates
Ethical or not, if women are being paid less then men, as an employer there lies the opportunity to reduces wages cost while at the same time maintaining a strong and large pool of employees.
CEO’s compensation
Germany has half the wage gap between employers and employees that the US does. For every dollar made by an employee the CEO makes an average of $331 in the US and $147 in Germany.8 This difference mind you doe not include the fact that German firms tend to be significantly smaller than American firms, once this is factored into calculations, if given the same size of firms the wage gap would be very similar.9 To a CEO who values extrinsic rewards and higher pay, this would be very attractive. 8
Pay scale. Image from: http://www.payscale.com/research/DE/Job=Chief_Executive_Officer_%28CEO%29/Salary
However, the average wages of German CEOs are increasing, further making it a more attractive prospect for CEOs.8
Pay gaps comparison. Graph from: http://www.bloombergview.com/quicktake/executive-pay
- In Germany, corporate boards include representation from rank-and-file workers, ensuring that employee pay rises along with CEO salaries.”8
Decision-Making Process
German decision-making is centralized! As a new manager in German the decision is yours to make. Decisions are made from the top of the company. For lower lever decisions, still the processes is made by those at the top of the hierarchy and by such, these decisions may take a while[10].
Work Environment and Employment
What to exepct when working in Germany, what is behind the theoretical door? How do employees work and what are can you anticipate?
To begin, let us examine the workforce. 73% of the population aged 15-64 is currently part of the work force[10]. More important to an expatriot than how many people are working is how can I ensure those that work, work well. Germany’s top four work preferences/incentives – ranked form most to least importance – are: generous holidays, respected job, good hours, and responsibility[11].
How the Employees Manage Time
In Germany, full-time workers devote 64% of their day on average, or 15.3 hours, to personal care (eating, sleeping, etc.) and leisure 8, that leaves only a possible 8.7 hours left to work. By such a token, it is evident why on average, for 2014, an employee clocks 1371 hours/yr of work[8].
In comparison to other countries in the world, from the chart below one can see how significantly less this is.
Germany can be found second from the bottom from the chart.
Do they take breaks?
Officially work an average of 37.6 hours a week, but tend to work overtime-totaling 41.1 hours a week9. As an average work week in Canada is 40 hours its may surprise you that overtime in Germany averages an hour more than a standard Canadian work week. With that being said, 1/5 Germans choose to work through their breaks; this shows their devotion at work.9 As a manager what may be post important to know is that 1/5 Germans develop health issues from mostly work related stress.9
Does showing up late/early matter?
Communication and organization is more formal making it very important to show up on time or early.8 Business meetings are organized early and one must be on time.9 “Showing up early is important and matters”. It cannot be reinforced enough that Germany is monochromic and thus, time is of the essence! Be on time, be early and do not be late!
Is there a sense of juniors and seniors?
There is a sense of seniority without a doubt. This seniority is exemplified by the use of titles and addressing others by their title. If someone is a professor, nobility, doctor, etc. always use their title when addressing them even if you meet them under different circumstances (ex. as your neighbour, but the would still be Herr/Frau Professor (Insert family name here) if a professor, regardless of whether or not they taught you of if you were in school)[i][2] (Also note the formal “sie” and informal “du” from “Culture”)
Average Job Satisfaction
Correlated to job satisfaction is life satisfaction. The life satisfaction, rated from 1-10 (ten being the highest) measures how people evaluate their life as a whole rather than their current feelings. As a manager it’s important to be aware of how your employees are not only enjoying their job, yet their life too as these external factors will ultimately carry-over into the work place. Fortunately, when asked to rate their general satisfaction with life on a scale from 0 to 10, “Germans gave it a 7.0 grade7”.
Specific to job satisfaction, the level of satisfaction is reported at 89%; nevertheless, there are people who alleged that this number is exaggerates[12], yet others argue a high satisfaction level as a result of a new trend in increased long-term pay incentives towards German executives[7]. The graph below shows a different scale of job satisfaction measured form 2-3.6. This graph compares European countries, and it is valuable for expatriate as it provides further evidence to show that German’s are relatively happy and satisfied at work.
Image from: https://laboureconomics.wordpress.com/2013/04/28/job-satisfaction-in-europe-an-international-comparison/
Vacation Time
Depending on the job vacation time may differ. Nevertheless, expect to receive on average 30 days off, paid[13]. Other jobs may give 18 days paid per every 6 months worked[11], and the best possible outcome is that you may work at a firm with a 6 weeks of mandated vacation time[14].
Management Ethics
Good Business is good business. Germans prosecute people who are caught in corporate scandals[16]. Culturally Germans work within the boundaries of the law; however, in recent years, corporate scandals are becoming a more frequent issue[16]. This has been seen with the example of BMW. For more information on BMW’s scandal please find it under “Economy”. Additionally, in 2007, the rate of scandals was doubled compared to that of 2006[15]. There have been fines that exceed $100 million dollars to deter companies from bribes and corruption[15].
The Management Challenges
The differences in culture become a challenge for Canadians when assessing management. As Canadians are more open, comminute about their private lives and managers can bee seen as a relaxed figurehead in addition to being perceived as a friend; it would be challenging for managers to accommodate a culture that is a polar opposite[11]. The opposite culture in question is Germany. It is expected that work to be work and the context of a relationship to remain within the context of professionalism and work-related[16]. A second challenge for Canadians beginning to work in Germany is the difference in communication[16]. The direct communication of Germans can be perceived as rude, yet it is not intended to be. For a new manager, it is important to accustom oneself with the different communication styles so that you are prepared to enter a different and new situation. Germans try their hardest to keep their relationship very professional and very formal, while Canadians are very relaxed in and the boss can also be a friend to their subordinates[16]. The Canadian manager would try to be a friend and confuse the German subordinates[16].
Business Etiquette 101
Appropriate Clothing
Germans appreciate when people are well dressed and appropriately dressed. Within the culture, being underdressed is a faux pas, as Germans are concerned with image, being underdressed is more significant than in other places[17]. People are expected to: be formally dressed, conservatively dressed and appropriately dressed[17].
A recommended outfit for a man is: a dark suit, with a solid coloured tie. In Germany it is frowned upon to dress flamboyantly.
Boardroom Attire
Traditional Business Attire
Executive Casual Attire
Mainstream Casual In Germany
Taylor, B. (2014, September 14). SalaryShark – Here’s What The ‘Boardroom Formal’
Dress Code Really Means. Retrieved November 29, 2015,
As a woman it is recommended to not wear heavy make up or big jewelry. A dark suit or a proper dress is expected[16].
Gift Giving
Gift giving is not a common practice in Germany during a business meeting[17]. With that being said but if someone chose to give a gift, it would be opened warmly, but do not expect it to be reciprocated[17].
Dining
When dining in Germany, precisely with their co-workers, it is still a business meeting and the people there need to remember that[18]. It should still be a formal evening, but business is not normally conducted. It is a meeting designed to get to know the other party, not to conduct business[18]. Dining video here:
Includes facts about dining out including:
- Tipping – less than in Canada
- Paying in Cash – more accepted than card
- Asking for the bill vs. waiting for the bill – how to ask
- Tap water vs. Bottled water – which is to order
- Amount of time spent at restaurants – lounging or eating quickly
Meetings
German is the preferred language but if the meeting has to be conducted in English it wont be the end of the world[16]. There is not a certain way to receive a business card, but when meeting a new person there should be an exchange of business cards[16].
In Germany, it is very important to be punctual. If someone is running late, they should call immediately to explain why[17]. If a meeting is cancelled late it could seriously hurt the relationship[17].
Interesting Management Facts
- Refrain from praising employees. Too many compliments could embarrass Germans[17].
- Within the business world, Germans tend to be formal compared to other countries[17].
- Don’t ask about someone’s family or health. It is view as over stepping the boundaries and an invasion of privacy[17].
- Speak softer than in other countries[17].
Works Cited
Communication and down
- “Business communication.” Passport to trade. Web. Retrieved Nov. 27 from
- “German Communication Styles.” World Business Culture. CDA Media. Web. Retrieved Nov. 27 from http://www.worldbusinessculture.com/German-Business-Communication-Style.html.
- Lubin, Guy. “24 Charts Of Leadership Styles Around The World.” Business Insider. Business Insider Inc. Jan. 6 2014. Web. Retrieved Nov. 27 from http://www.businessinsider.com/leadership-styles-around-the-world-2013-12.
- Brodbeck, Felix. Frese, Michael. Javidan, Monsieur. “Leadership made in Germany: Low on compassion, high on performance.” Academy of Management Executive. Web. Retrieved 27 Nov. 2015 from https://bschool.nus.edu/Departments/ManagementNOrganization/publication/MichaelFreseJournal/brodbeck%20frese%20javidan%20ame02%20germany%20globe.pdf.
- “Cultural Differences in Job Motivation.” Grin. Web. Retrieved Nov. 27 2015 from
http://www.grin.com/en/e-book/184893/cultural-differences-in-job-motivation.
- Center for Creative Leadership. (2014). Leader Effectiveness and Culture. Retrieved November 27, 2015, from http://www.ccl.org/leadership/pdf/assessments/globestudy.pdf
- Germany. (2014). Retrieved November 27, 2015, from http://www.oecdbetterlifeindex.org/countries/germany/
- Butler, K. (2013, September 12). Angela Merkel and the myth of charismatic leadership. Retrieved November 27, 2015, from http://www.independent.co.uk/voices/comment/angela-merkel-and-the-myth-of-charismatic-leadership-8812441.html
- Business meeting etiquette. (2014). Retrieved November 17, 2015, from http://businessculture.org/western-europe/business-culture-in-germany/meeting-etiquette-in-germany/
- Germany – Language, Culture, Customs and Business Etiquette. (2014). Retrieved November 27, 2015, from http://www.kwintessential.co.uk/resources/global-etiquette/germany-country-profile.html
- V. Franzee, “Vacation Policies Around the World,” Personnel Journal. 1997, p.9; and A. Phatak, R. Bhagat, and R. Kashlak, International Management, New York: McGraw-Hill/Irwin, 2004, p.125.)
- Barker, A., & Bryant, C. (2015, January 5). Germany overtakes UK in corporate executive pay stakes. Retrieved November 27, 2015, from http://www.ft.com/intl/cms/s/0/e00f378a-9433-11e4-82c7-00144feabdc0.html#axzz3sjfFQTQ2
- A Guide to German Etiquette. (2013, March 13). Retrieved November 17, 20, from http://www.young-germany.de/topic/live/settle-in-adjust/a-guide-to-german-etiquette
- Stansberry, G. (2010, September 28). Why Germans Have Longer Vacation Times and More Productivity. Retrieved November 27, 2015, from https://www.americanexpress.com/us/small-business/openforum/articles/why-germans-have-longer-vacation-times-and-more-productivity-1/
- Eastwood, S., & Malterer, M. (2009, March 9). Business ethics and anti-
corruption in Germany | Lexology. Retrieved November 29, 2015
- Business Culture in Germany. (2013). Retrieved November 29, 2015,
- Business etiquette. (n.d.). Retrieved November 29, 2015,
- Dining Etiquette in Germany. (n.d.). Retrieved November 29, 2015,
Youtube links
https://www.youtube.com/watch?v=twcPmRTVStM – communication style
https://www.youtube.com/watch?v=Ts7KfgsIQi0 – dining
(23) Image from http://www.finfacts.ie/irishfinancenews/article_101863.shtml
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