Exploring the German Business Culture - Coursework Example

Table of Contents Table of Contents Teamwork and Management Culture 2 Communication Styles 3 Perceptions of Time 4 Priorities and Objectives 4 Perceptions of Authority 5 Attitudes towards Conflict 5 Approaches to Completing Tasks 5 Decision Making Styles 6 Attitudes towards Disclosure 6 Setting a Direct Business Organization in Berlin 7 Business Practices 9 Conclusion 10 References 10 Exploring the German Business culture The federal republic of Germany plays a crucial in Europe’s cultural history. Germany has established itself as a business hub through the establishment of friendly economic and social, business policies. Its cultural diversity is a product of interaction of approximately 82 million people, a foundation for its profound and unique business culture. The natives exhibit a multicultural behavioral perspective that spreads within 16 federal states. The ethnic composition is characterized by 91.5% Germans, 2.4% Turkish and other communities such as Polish, Italian and Greek making 6.1% of the population. The official language is German that is used by over 95% of the population as their first language. Other minority languages include Sorbian, Frisian, Turkish and Kurdish. The communities experience a temperate and marine climate with cloudy and wet winters while the summers occasionally warm. The paper below address the German cultural aspects that should be considered when opening a business venture in Berlin through focus of intercultural aspects such as communication and decision-making styles. Teamwork and Management Culture Each member has a defined role that he plays in a team. Individual members are respected for their technical ability and knowledge. Most of the organizational roles are undertaken under minimal supervision of the teams. Cross-cultural team management can prove difficult because most people are requested to make decisions in relation to their area of hierarchy. Therefore, decisions made at cross-departmental groups are revisited after the groups have submitted their findings to their superiors. Managers delegate responsibility to a group member who is technically competent to perform the delegated tasks (Gerhart, 2008: 259-274). The appointed person is given concise and clear instructions as the manager does not supervise or interfere with their duties. Socialization within the work quarters tends to be horizontal rather than vertical. Some of the cultural artifacts that characterize the business environment include: Communication Styles The vital aspect of German communication is the direct communication style that is seemingly confrontational. Business discussions and interactive meetings are characterized by open criticism normally directed towards any aspect of the problem, business or project at hand. This should not be considered as disapproval, but rather a method of seeking clarification on the business aspect that attracts their interest. At a personal level, Germans tend to be formally withdrawn, which many people view as being emotionless or cold. This portrays their strong sense of individualism. Most of the behaviors that many people many perceive to be uncouth characteristics are natural to most Germans. For instance, their culture accepts whispering in groups which many people consider unethical in group a set-up (Gorrill, 2009). Germans appear more combative during conversations and always consider their opinions to be always right. The elder generation would always yearn to prove that they are wiser than the younger generation. The culture considers this as informative rather than rude. Their humor is more satirical and crass compared to the ordinary jokes an investor may have witnessed in their home countries. Use of indirect or exaggerated communication styles during business meetings or transactions creates an impression of dishonesty and insincerity. Establishment of a direct selling business venture in Berlin will involve direct interaction with the community at a personal level. Their mode of communication is more formal, for instance, formal greetings are characterized by use of terms such as Frau or Herr followed by the last name (Palazzo, 2002:195-216). Germans are never addressed by their first names unless one is invited. Traditional greetings are characterized by a quick and firm handshake. Visitors are required to wait for their host or hostess to introduce them to a group before they offer greetings. One is also expected to recognize the presence of everyone in a group setting through a collective handshake. Perceptions of Time According to Wehage and Clay (2012), punctuality is considered crucial whereby arriving five to ten minutes after the appointment time is regarded as lateness and disrespectful. Prior notification should be made in the event that a person would be late. Most Germans are time conscious and highly regard prior planning before undertaking any strategy with strict adherence to deadlines. Time allocation for future activities is priory planned with a detailed breakdown of the schedule of activities involved in task performance. Their mode of time management portrays a clear separation between work and personal life. A person is expected to leave the office after the completion of daily activities. Any extension in the working hours implies that one did not plan his daily schedule well. Priorities and Objectives Achievement of priorities and objectives is affected by their strong, individualistic traits. However, their desire to achieve personal objectives and priorities is coupled with adherence to the stipulated responsibilities geared towards improving the welfare of the community at large. For instance, in a business setting, the priorities should not only benefit the business owner but also the employees. Perceptions of Authority German people are respectful of the laws, obligations and rules and value their impact across all sectors of the economy as well as social life. Their attitudes towards administrative structures are based on the definition of the law regarding a certain position. The business structure has a well organized hierarchy that has clear realignment of responsibilities and roles of different departments (Egelhoff and Frese, 2009: 77-91). The professional rank and status in Germany are related to the achievement and success of an individual in a certain business field. The academic qualifications and background is eminent in conveying a person’s expertise in certain business field. German customs allows the individuals of the highest status to enter the meeting room first. However, the practice is may not be applicable in situations where meetings occur in informal business settings. Attitudes towards Conflict Germans have a pronounced awareness on suffering and mortality due to the countries historical background of conflict and war. They live to the present occasions and celebrate holidays and life’s events in totality. For instance, religious occasions are celebrated by all people whereby most groups would invite families and groups (Flippo, 2002). Germans separating people, events and places, is the safest and most ethical way of avoiding conflicts. Approaches to Completing Tasks Germans invests all their attention and focus in the achievement of the task at hand. Interpersonal relationships play a prominent role in task completion. Attentiveness to task is evidenced by occasional precision of timetables and meeting schedules. Their careful planning skills ensure efficiency in task completion and performance. Effective planning is considered an individual’s business and personal way of life. This provides a sense of satisfaction and wholeness. Careful planning promotes forward thinking and prior knowledge on the future activities in relation to the time allocated for various duties. Germans believe that once a proper way of performing tasks has been identified; there is no need of wasting time on alternative ways. Decision Making Styles Decision-making is a slow and detailed process among Germans, therefore, conclusions for such decisions are not derived from unstructured or spontaneous results. Decision-making and problem-solving involves the consideration of objective facts. For instance, successful decision making is a product of focus on logic and information analysis rather than dependence on intuition and personal networks. Most of their decisions are regulated and defined by structures such as rules, laws and procedures as reflected in economic, social and political spheres. Decision making styles are characterized by adherence to prescribed rules and a low degree of spontaneity and flexibility. The decisions made should be of benefit to the community. The structure of the German business making procedure requires consensual contribution of both employers and the employees, rendering decision making processes to be relatively slow (Flippo, 2002). Most situations involves making of appointments that requires ample time before the planned activity. Attitudes towards Disclosure Personal matters are only disclosed to close friends; not acquaintances. Therefore, it is eminent for one to realize the form of relationship they might be having with the German counterparts before enquiring about issues regarding personal life. Introducing a business venture among Germans requires full disclosure on personal, academic qualifications, background and titles. This assists in establishing trust and loyalty among the clients and business associates. Maintaining direct eye-contact when addressing people or making initial introductions is considered as a sign of honesty (Gorrill, 2009). Any invitation for use of informal mode of interaction shows that the person is ready for a personal relationship. Germans do not involve personal issues during business dealings as they term this as a deviation from the more crucial matters at hand. Any attempts to continue negotiations after business contract has been signed may be viewed as suspicious causing unsuccessful business agreement. Setting a Direct Business Organization in Berlin Setting a direct business organization in Berlin can be a daunting task as it requires paramount efforts in research and marketing. Becoming successful in the German business culture will involve making decisions that are spontaneous and flexible. The establishment procedures should duly follow the federal law as not many employees or partners would like to be associated with an illegal entity. The first step will involve choosing the right product that can be easily promoted. The Germans choosy and quality-oriented principles imply that we will take time to design and include conclusive information about the products being sold. The second step will involve determination of the marketing structure for the organization. The most appropriate marketing structure in Germany will be networking whereby distributors, agents and salesmen will be used in selling the products door-to-door. Research on the presence of similar organizations within Berlin will be conducted after deciding on the products that the organization will be selling. The study of these organizations will provide crucial information on the selling tactics that the organization should apply and how to utilize the German culture for business proliferation. Fair compensation plan will then be formulated with differing commissions and bonuses among different employee categories. The payment schedule will be clear on the payment dates and be flexible in relaying remuneration changes that may occur. Keeping mum on changes on the worker issues discourages Germans. The next step will involve development of the organization’s plan that will stipulate its mission, vision, objectives and products to be floated in the market. The plan will then be followed by acquiring business capital. Availability of financial resources will give way for recruitment of the initial team leaders and employees. Clear guidelines will accompany all the tasks assigned to individuals as German’s attentiveness in task completion requires clear instructions. The guidelines will be flexible to accommodate any alternative ideas that the employees might be having on performance improvement or overcoming challenges. Each task should be characterized by time limitation. The hired personnel should be soundly skilled and experienced in direct selling to ensure customer satisfaction and improved performance. Successful candidates will be offered with the code of conduct that should be followed while undertaking business dealings. The behavioral guidelines will be formulated after a thorough research on Germany’s law on direct sales and the business culture. Employee hiring will target individuals with a high job description. The skills that will be required include launching experience, expertise in territory planning, marketing skills and familiarity with the product lines. Interviews will involve the assessment of the interviewee attitude. This is because performance in direct marketing will require employees with the right attitude (Gherardi, 2000; 211-223). When conducting interviews, the interviewers will be required to conform to the German business culture through wearing neat dark suits, conservative ties and neat white shirts or white blouses for ladies. Conversations during training and recruitment will involve addressing the participants by their academic titles provided on their cards. Any communication will be dominated by the use of German language over English. This is because most subjects would feel more comfortable using their own dialect than English. The workmates will be introduced to each other to enable cooperation during business. This prevents poor performance emanating from the cultural attitude of ignoring strangers. Recruits will be carefully screened to ascertain their capabilities in direct selling techniques. Business Practices All the processes that will be involved in the establishment of a direct organization in Germany will be characterized by punctuality. Lateness is considered a serious drawback and signifies a shaky start for any business venture. Business appointments will be scheduled between 10:00 am to 1:00pm and between 3:00 pm to 5:00pm as this is the convenient time recognized by the business fraternity for organizing appointments. Business dealings will be characterized by the issuance of many business cards to ensure that every person is made aware of the business dealings and structures. Extensive research will be carried out to ascertain the most appropriate time for reaching out and dealing directly with clients. When doing business with legal entities, we will ensure that the representative of any company has sufficient authority to undertake the obligations. An assessment of a new business partner should go beyond their verbal details or business cards (Morris, Schindehutte, Allen, 2005: 726-735). The proprietor should always be aware of their financial back grounds and business worthiness in terms of honoring business deals. Conclusion Establishment of a direct business venture will require one to understand the cultural tendencies of the society to avoid conflicts or misunderstanding that causes business failure. The proprietor is required to develop efficient strategies necessary for utilizing the individualistic tendencies of the Germans for business advantages. One should understand how the business dealings ties with their value and beliefs. He or she should respect the people’s autonomy to make personal decisions, portray flexibility and take time to understand people. This enhances the identification of the eminent personal codes of behavior that need to be followed in the establishment of a vast and loyal customer base among Germans. References Egelhoff, W., & Frese, E. (2009) Understanding managers preferences for internal markets versus business planning: A comparative study of German and U.S. managers. Journal of International Management, 15(1), 77-91. Flippo, H. (2002) When in Germany, do as the Germans do: the clued-in guide to German life, language, and culture. Chicago: McGraw-Hill. Gerhart, B. (2008) Cross Cultural Management Research: Assumptions, Evidence, and Suggested Directions International Journal of Cross Cultural Management, 8(3), 259-274. Gherardi, S. (2000) Practice-Based Theorizing on Learning and Knowing in Organizations Organization, 7(2), 211-223. Gorrill J. R. (2009) Doing Business in Germany | German Social and Business Culture Communicaid Group Ltd. Available at: http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Germany.pdf Morris, M., Schindehutte, M., & Allen, J. (2005) The entrepreneurs business model: toward a unified perspective Journal of Business Research, 58(6), 726-735. Palazzo, B. (2002) U.S.-American and German Business Ethics: An Intercultural Comparison Journal of Business Ethics, 41(3), 195-216. Wehage, F., & Clay, G. (2012) Geschäftsdeutsch: An introduction to German business culture Newburyport, MA: Focus Pub/ R. Pullins Co. Read More