cross-cultural negotiation: an american’s guide to german business practices
TRANSCRIPT
Cross-cultural Negotiation:
An American’s Guide To German Business Practices
Developing an Understanding of Germany
1. Historical Background and Cultural Orientation
2. Social and Business Protocol
3. Business Practices
History:
• Germanic tribes date back to 3500 BC.
• Otto Von Bismarck united Prussia and Austria in the 19th century.
• In 1871, Prussian King William I crowned Kaiser, and modern
Germany was born.
• The 20th century brought WWI and II, Nazi Germany, and the cold
war division of East and West Germany.
• In 1990, East and West Germany were reunited.
• Today, Germany has one of Europe’s strongest economies, despite
former East Germany’s struggle to catch up with its western
counterpart.
Cultural Orientation:
1. Cognitive Styles: How Germans Organize and Process Information
2. Negotiation Strategies: What Germans Except as
Evidence
3. Value Systems: The Basis for Their Behavior
Cognitive Styles:
• analytical and conceptual
• committed to universals of their culture
• closed to outside information and reluctant to share information
• friendships are difficult to develop
Negotiation Strategies
• Objective facts are the basis for truth.
– statistics, reports, tests
• Feelings are not accepted in negotiation.– no “gut” reaction/ decision
Value System:
• strongly individualistic but consider cultural history in making decisions
– slow decision-making process, unalterable decisions
• rules and regulations + strong internal discipline = stability and reduced uncertainty
• hierarchical society– classes– some biases to foreigners, refugees, East Germans– biases to women regarding power and pay
Social and Business Protocol:
• Dress
• Greetings and Introductions
• Titles and Forms of Address
• Gestures
• Gift Giving
Dress: for business, parties, dinners, theatre
MEN:• dark suites
• white shirts
• neutral color ties
• no khakis
WOMEN:• dark suites• white blouses
Greetings and Introductions:
Greetings:• Give a brief but firm handshake.
• Wait for woman to initiate handshake.NOTE! Do not keep one hand in your pocket while shaking with the other.
Introductions:• Lower-ranking individual are always introduced first.
• Men stand when a woman enters a room and remain standing until she is seated.
Titles and Forms of Address:
• Only close friends and family members are on a first name basis.
• Business colleagues are addressed Mr. or Mrs. + surname:– Mr. = Herr
– Mrs. (Ms.) = Frau
– Miss = Fraulein
• Professional titles are always included: ex. Herr (or Frau) + Dr. + surname
NOTE: Business cards should include any degree above the Bachelor level.
Gestures:
• Speak in complete sentences.
• To get someone’s attention raise your hand, palm out, and only extend your index finger.Never beckon.
• When sitting have one knee over the other not one ankle over the opposite knee.
• Eldest/Highest-ranking official enters the room first.
• Men enter rooms before women.
NOTE: Germans usually do not display emotion or affection publicly, and they tend to stand far apart during business negotiations.
Gift Giving:
• Quality but not expensive gifts should be given.• Appropriate Gifts:
– quality pens, pocket calculators, and imported liquors
• If invited to a home, bring an unwrapped bouquet consisting of an odd number of flowers.
NOTE: Germans often enjoy odd facets of Americana such as zydeco music and cowboy novels.
Business Practices:
1. Appointments
2. Negotiating
3. Business Entertaining
Appointments:
• Punctuality: BE ON TIME!!!• Making an appointment:
via fax or telephone: make it 1 to 2 weeks prior to meeting
via mail: make it at least one month prior to meeting
• Appointment times:– Mon.. through Thurs. 11:00am to 1:00pm and 3:00pm to 5:00pm– Not after 2:00pm or 3:00pm Fri. afternoons.– July, August, and December are popular vacation months.– Little work gets done during regional festivals such as Oktoberfest.
NOTE: Inquire about the language used during the negotiation. You may need a translator.
Negotiating:
A German’s goal is to produce a high quality product.
Prior to Negotiating:
• Germans usually begin talking business immediately.
• If small talk occurs, some good conversation topics
include:– sports (soccer, hiking, skiing) and German breweries
• Although Germans protect their privacy, they will open up
as trust is established.
– Avoid asking personal questions in the beginning.
During the Negotiation:
• Be prepared! Have data and technical expertise to support your claims.
• Avoid compliment/ complaint juxtaposition.
• Be aware of “hidden” series of advisors and decision-makers.
• Emphasize your product’s superiority, and downplay glamour.– Germans HATE hype and exaggeration.
• Keep humor out.
• Hold some negotiable offers in reserve.– Germans are notorious for requesting last minute concessions.
• Contracts are usually very detailed.– A warranty for quality assurance is often included.
Business Entertaining:
• Breakfast meetings never occur in Germany.• Luncheons are commonplace.
– Discuss business before or after the meal but never during.
– Use utensils at all times.
• An invitation to someone’s home is a rare honor.– Bring an appropriate gift to show your appreciation.
Quick Tips:
1. Be punctual.
2. Put it in writing.
3. Cut out the glitz.
4. Respect the hierarchy.
5. Slow down.