HOW DO GERMANS TICK?

Intercultural Handbook Germany

How do Germans tick? - Intercultural Handbook — ©ICUnet.AG

 A very warm welcome
to Germany!

When we hear about Germany, several different pictures come to our minds: the Oktober-
fest, Lederhosen, beer, Beethoven and Bach, high quality cars, Schloss Neuschwanstein,
World War II as well as the difficulty to get into closer contact with the German people. Those
are all clichés about the country and its people which may be wrong or right. Yet, whoever
takes a look behind those stereotypes can discover a country that is full of diversity.

Nowadays, Germany is the world's fifth largest economy and the largest in Europe. The eco-
nomical dynamics are mainly a result of the country's strength in exports. Germany today
faces the same difficulties as many other industrialised countries: the financial crisis and the
demographic change are major issues. Germans describe their economic system as a
"social market economy" – providing an array of social services, while encouraging competi-
tion and free-enterprise are challenges.

Just as varied as the German industry is its culture. Intercultural competence and a deep un-
derstanding of cultural diversity are the keys to success in international business. Different
ways of behavior as well as ways of thinking can easily lead to misunderstandings. As a
golden rule: Always be open in dealing with foreign cultures, their customs and traditions.
The Intercultural Handbook Germany does not want to enforce any stereotypes, but identify
tendencies that may apply to a larger share of the German population, but of course not to
all.

We wish you an interesting and helpful reading!

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 AGENDA

1. What is culture?
2. German cultural standards & values
3. Business life
3.1 Building trust
3.2 Greetings and address
3.3 Business contacts
3.4 Team work and leadership
3.5 Business dress
3.6 Communication
3.7 Perception of hierarchy
3.8 Time management
3.9 Task orientation
3.10 Small talk
4. Impressum

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 1.
What is culture?

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 "A fish only realizes it needs water to live when it is no longer swimming in water.
Our culture is to us like water to the fish.
We live and breathe through our culture."
Dr. Fons Trompenaars

Today, various definitions of culture exist. We would like to introduce you to the most common
ones in modern intercultural studies.
The word "culture" comes from the Latin verb "colere" which stands for the cultivation of soil
and plants. It first appeared in the 17th century. Culture stood for things created by man's own
will and skill.

Edward T. Hall
"Cultures are unified wholes in which everything interrelates. Any culture is primarily a system
for creating, sending, storing and processing information. Communication underlies everyth-
ing."
According to Hall, 80 to 90% of communication are not language, but words, material things
and behaviour.

Fons Trompenaars, Geert Hofstede

"Culture is the way in which a group of people solves problems and reconciles dilemmas."

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 The cultural iceberg

When we see an iceberg, the portion which is visible above water is, in reality, only a small
piece of a much larger whole. Similarly, people often think of culture as the numerous obser-
vable characteristics of a group that we can "see" with our eyes, be it their food, dances, mu-
sic, arts or greeting rituals. The reality, however, is that these are merely an external manifes-
tation of the deeper and broader components of culture — the complex ideas and deeply-
held preferences and priorities known as attitudes and values.

Deep below the "water line" are a culture's core values. These internal forces become visible
to the casual observer in the form of observable behaviors, such as the words we use, the
way we act, the laws we enact, and the ways we communicate with each other. It is also im-
portant to note that the core values of a culture do not change quickly or easily. They are pas-
sed on from generation to generation by numerous institutions which surround us.

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 Practices
Systems
Institutions
Traditions
Heroes Architecture
Rituals
Behaviour
Language

Beliefs Attitudes

Values

Education

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 2.
German cultural
standards & values

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 What do other Nations think
about Germans?

Positive things Negative things

 Diligence  Perfectionism
 Correctness  Stubbornness
 Punctuality  Inflexibility
 Tidiness  No sense of humor
 Quality  Know-it-alls
 Honesty  Unfriendliness
 Reliability  Reserved behavior
 Stiffness

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 German values

 Commitment
 Directness
 Honesty
 Clarity
 Structure
 Rationality
 To go into something in depth
 Education, training
 Quality work
 Self responsibility
 Environmental consciousness
 Friendship, family
 Privacy, "Gemütlichkeit"
 Awareness of one's obligations
 Security

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 The German mentality
Important aspects

Need for Analysis /

Security Perfection

Task Belief in
Orientation Experts

Directness Respect

Formality

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 German cultural standards

Task orientation Motivation for actions: facts, circumstances,

control of emotions

Appreciation
of structures and Narrow interpretation of laws and rules
rules

Time
management Systematic, long-term planning

Separation of
life spheres Strict separation of private and work life

Internal control Guilt culture, self control through existing rules

Sense of an
abstract "common Everybody has to carry out his / her duty to make the hole
good" system work

Explicit and direct

communication, low Very direct and explicit communication, little reading
context between the lines

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 Passion for finding solutions

 Good results are more important than fast results

 Many Germans tend to be perfectionists and search for a 100% solution / quality
 "Made in Germany" – synonym for quality products
 Understand the problem first, then solve it
 In conflicts: finding the guilty party
 Getting to the core of a subject

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 German business values

Value Behaviour External view

Punctuality Keeping deadlines, Inflexible, impatient

not letting someone wait

Security Financial and other risks Over-anxious, dislike risks, in-

covered by insurance flexible

Privacy, Individualism Building friendships slowly; Emotional distance, cold, sel-

preserving distance at first; fish, lack of humour, serious
separation of job and private
sphere

Discipline, Diligence, Reli- "Do it 100% or not at all", Workaholics, inflexible,

ability, Accountability high-quality work, arrogant, to be a know-it-all
perfectionism

Straightforwardness, Clear statements Aggressive, undiplomatic, crude

Honesty

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 Honesty & commitment –
What does it mean?

 Being able to "look someone in the eye"

 Commitment and reliability are as important as professional competence to create
trust and respect
 A lack of trust makes cooperation and personal relationships impossible

WHAT CAN YOU DO?

 Germans associate a firm handshake and steady eye contact with confidence,
commitment and proactivity
 Communicate in a straightforward manner: A "yes" is a "yes" and a "no" has to be
openly communicated
 Communicate problems, uncertainties and doubts early
 Be punctual and stick to deadlines
 Don't cancel appointments last minute
 See a contract / decision / agreement etc. as something fixed and binding
 Accept being criticized; taking responsibility for one's actions is considered profes-
sional behavior

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 The German way of thinking

 Love abstract concepts

 Theories and models are valued
 Critical reflection
 Transfer knowledge
 Call things into question, Think something through
 Discussions: personal and factual matters are separated
 "Brainstorming"
 Debates can be heated
 Structuring tasks by priority
 Objective thinking and analysing on the job
 Organizing
 Aversion to ambiguity and contradictions
 Task-orientation
 Appreciation of rules, regulations and structures
 Rule-oriented, internalized control
 Time planning
 Separation of private and professional life
 Low-context communication style

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 3.
Business life

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 3.1
Building trust

In relationship-oriented cultures:

 Quality of the relationship

 Person thinks of how to perform his / her actions
 Search for common interests
 Care for and maintenance of the relationship is important
 Flexibility and freedom

In task-oriented cultures:
 Quality of the product
 Person thinks of what actions to perform
 Sympathy between the players is "nice to have" but not essential; reliability is more
important
 "Sticking to the topic"
 Structure / stability

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 3.2
Greetings and address

In Germany, it is customary to greet people by shaking hands (regardless of the gender) and
looking the other person directly in the eyes. The common forms of greeting are "Guten Mor-
gen" (up until approx. 10-11am) and "Guten Tag" (after 11am). More casual forms are "Hallo"
and "Hi". You take your leave by saying "Auf Wiedersehen" or, amongst friends, "Tschüss".
Only between friends, kisses on the cheeks and hugs are becoming more and more popular,
although there are no set rules of etiquette.
As a basic rule, people in Germany address each other on a surname-basis and with the for-
mal address of "you", i.e. "Sie". Germans, including close colleagues who share an office, of-
ten continue using the formal "Sie".
The use of "Du" is generally proposed by the older or more senior of the two people con-
cerned.

When addressing people with academic titles, there are

also rules about whether these should be included or
omitted. In Germany, the title "Doctor" or "Professor" is
essentially part of a person's name and should also be
included in the form of address. Such titles should be
used directly adjacent to the name, e.g. "Frau Professor
X" or "Herr Doktor X".
The title may only be omitted if "in official situation" spe-
cifically requested by the person who is to be addressed.
The normal form of address is always "Herr" or "Frau",
followed by the surname.

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 3.3
Business contacts

The German style of thinking is often deductive, i.e. the solution for a specific problem is de-
duced from a general principle. Germans initially tend to begin with a general statement
about the nature of the problem, continue with a systematic analysis of the objectives and
carefully weigh up the alternatives, so that they can then – after ample deliberation – decide
on the best option under the given circumstances. They often do not take action until the ra-
tionale is flawless and a logical conclusion is the only thing that can be deduced from it.

For Germans, life consists of two largely separate areas: their public (professional) life and
their private life. In public, cool correctness is the order of the day. In private, people like to be
easy-going and informal. As a foreigner you will initially only get glimpses of the public Ger-
many. Once you are in the inner circle of a German person, you will probably have gained a
friend for life.

As already mentioned, it is appreciated in Germany if people speak their minds and frankly
defend what they think. This also applies to criticism and feedback. It is perfectly normal to
pass judgement on what another person is doing and to be blunt when raising objections.
Honest feedback is not only expected but also appreciated, as people see it as an opportuni-
ty to improve their own performance. Direct criticism is not regarded as a personal "attack",
but as a clear and unambiguous comment related exclusively to the individual's work –
although here, too, a polite, matter-of-fact approach is, of course, still expected.

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 3.4
Team work and leadership

A meeting without an agenda is a very rare event in Germany. The sequence in which contri-
butions are made to discussions does not necessarily have to be in order of hierarchical sen-
iority. What is expected – and provided – are sound, purely factual contributions. Wild gestic-
ulation or discussions conducted in an aggressive manner are not appreciated.
From a German perspective, presentations should be prepared in multimedia form with par-
ticular attention to detail (visual format, exact numbers): the current situation is analysed, op-
tions are presented and, ideally, at the end concrete recommendations or instructions are
provided. Key information is summarised in writing in the form of hand-outs / presentation
packs, etc. Jokes, cartoons and the like are largely seen as unnecessary distractions.
A feature of task-oriented societies such as Germany is that its members are particularly fo-
cussed on the outcome during negotiations. As achieving objectives is very important, only a
concrete outcome is seen as a success, and results are expected to be achieved by the end
of the meeting. If there is time left after business has been dealt with, this is the time to take
care of building relationships. However, one thing is certainly important before any deal can
be closed: German business people need to have the feeling that they are in possession of
all the relevant information (background facts, figures, market analyses, etc.). It is not usual
to criticise competitors – the product should speak for itself.

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 3.5
Business dress

The type of clothing is dependent on a given person's position within the company. However,
value is undoubtedly attached to dressing correctly and appropriately, without attracting at-
tention. In general the dress code is quite modest – people have a slight fear of appearing
bigger than they really are. In terms of choosing discrete forms of dress, for men it is usually
expected to display a well-groomed appearance and, depending on their position and the in-
dustry they are in, wear either work clothes or a dark suit with an appropriate, inconspicuous
tie. The dominant colours at boardroom level are blue, grey, black and brown. A female em-
ployee's outfit should neither be too elegant nor too chic. In general, the rule for women is on-
ly to wear skirts or dresses that come down to at least just over the knee. Plunging necklines
should also be avoided and very high or spike heels are rarely seen in German offices.

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 3.6
Communication

Communication is an essential part of interaction, so this dimension necessarily overlaps

with the other dimensions which all involve communication. There are significant diffe-
rences, however, in how directly or indirectly members of different cultures express them-
selves. This is particularly noticeable in how people give instructions and convey criticism.

In cultures with a preference for direct communication, people are expected to take a clear
position and openly express their opinion, even if it involves criticism or confrontation. On
the other hand, other cultures avoid directly expressing opinions.

Germany is one of the so-called "low-context" cultures. All details are transmitted explicitly.
This means that Germans tend to pay more attention to the literal meaning of words than
to the context surrounding them. Messages are transmitted more by words than nonverbal
signals. If in doubt, a German will ask a follow-up question in order to get all of the infor-
mation, even if this could perhaps have been deduced implicitly.

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 3.7
Perception of hierarchy

Different cultures have different ways of dealing with the perceived distance between the
powerful and the powerless. Although social inequality can be found everywhere, there are
significant variations in how people respond to it.
In cultures with a low-level perception of hierarchy, people try to minimize social differences
and strive for equality. In cultures with a high-level perception of hierarchy, differences in sta-
tus are accepted as the norm, especially by those with lower status or position.

Contrary to the widespread stereotype, hierarchical thinking in Germany is relatively unpro-

nounced. Authority is not accepted per se, but is derived from a person's competence and
personality. A manager fulfils a functional role within an organisation, generally that of some-
one who delegates tasks. This is accepted without being questioned as long as the manager
shows through his or her ability and commitment that he or she is up to the job. Hierarchies
tend to be flat with the boss tending to embody the idealised character of a "primus inter
pares", involving his staff in decisions. It is for this reason that business cards are handed
over in a rather relaxed fashion in Germany. Germans take if for granted that anyone sent out
to represent their company is regarded as being authorised to act on its behalf and qualified
for the task at hand, regardless of their position in the company according to their business
card.
Understatement also belongs to the modest power divide in Germany. Pretentious behaviour
or making a show of power (or wealth) is not welcome, i.e. those in positions of power act as
though they are less powerful than they really are.

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 3.8
Time management

The pace of life as well as management and perception of time varies widely from culture to
culture. Different attitudes towards time in everyday life can potentially lead to intercultural
misunderstandings amongst business partners.
Single-focused time cultures tend to plan tasks in a linear way, while in multi-focused time
cultures the timing of tasks to be carried out depends far more on the person.

In German culture, time is seen as a firmly fixed concept. This leads to linear scheduling,
whereby jobs are worked through step-by-step, one after the other and it is extremely rare to
do different jobs at the same time. The entire scheduling process is oriented around the job
and the primary focus is not on the person doing it but on the outcome.

Therefore, essential elements for such planning include fixed dates and deadlines which are
adhered to as precisely as possible. Distractions and interruptions – no matter what sort – are
perceived as extremely disruptive. Linear time planning also requires a high degree of
punctuality. The maximum period of lateness that is generally accepted is a quarter of an
hour, although this can be also seen as impolite – even in private life.
In terms of their perception of time, Germans are less focussed on the present than other na-
tions. They are conscious of their past but oriented towards the future. The past plays a major
role and people live with a very pronounced awareness of history. Focussing on the future,
however, is also of key significance. Looking after the elderly (state pensions, etc.) is per-
ceived by the public as an important topic and companies often plan for and invest into this
well in advance. Reinvesting profit is usually preferred to taking short-term financial gain. Ho-
lidays are often planned many months in advance.

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 Occasion Tolerance Announcement will be…

Arriving 5 minutes before,

Business meeting "um"
punctual

Private meeting 5 minutes late are tolerable "um"

5-15 minutes late are usually

Private invitation for dinner "um"
OK

Anytime starting with the ap-

Private invitation for a party "ab"
pointed time is OK

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 3.9
Task orientation

What is more important in business negotiations? To create a pleasant working climate, or to

be matter-of-fact and deal with issues as promptly and efficiently as possible? In some
cultures, people concentrate primarily on the task to be completed, while in others creating
and maintaining a good relationship amongst the individuals involved is the main focus.
In some cultures, people "live in order to work". First comes work – business before pleasure.
At the other end of the scale are cultures in which work is not an end in itself. People "work in
order to live" and maintaining good interpersonal relations is a priority. Germans are regarded
as being rather task oriented. All parties concerned should derive clear benefits from working
together. The focus is on the deal and, as a rule, personal relationships arise only once busi-
ness matters have been agreed.
Germany shows clear elements of an individualist society. Compared to many other coun-
tries, for example, an individual in Germany has a relatively strong position vis-à-vis the
group. People tend to be more interested in dealing with their own concerns, giving priority to
their personal objectives and being inclined to highlight their own achievements and success.
A strong personality and self-assurance are perfectly respectable character traits. Private and
business matters are kept separate. Asking colleagues personal questions is only advisable
after you have known them for a long time, as they can very quickly view this as an undue
intrusion into their private life. The individualistic orientation of Germans can also be seen in
the standard family structure, which is typically a "core family" consisting of just two genera-
tions, generally with only a small number of children. Nevertheless, German culture is fairly
community oriented due to a more socially oriented state policy. Despite the focus on the indi-
vidual and his / her performance, there is a well-developed social security system. Clubs and
societies, i.e. groups that provide an "us" feeling, have a long tradition in Germany and are
very popular.

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 3.10
Small talk

Small talk creates harmony in working and in private life. However, establishing personal ties
as the basis of every business relationship...

…is in Germany often underestimated!

 In Germany, private and professional life are often strictly separated.

 Many Germans see exchange of non work- / project-related information as not very rel-
evant in the working context (efficiency, value of time, "getting down to business"
instead of "beating about the bush").

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 4.
Dos & Don´ts

DO

 Greet people when you meet them for the first time in the day (e.g. "Guten Morgen",
"Guten Tag", "Guten Abend") followed by "Herr" or "Frau" and the family name.
 Introduce yourself when you meet people for the first time and shake hands firmly.
 Make an effort to become acquainted with people during coffee breaks and at lunchtime.
 Communicate directly and tell your opinion. This is a virtue to be taught to little children
and is considered an expression of honesty and sincerity.
 Information and instructions should be rather extensive, clearly structured and also most-
ly confirmed in writing, even if an oral transmission has taken place.
 Be sure to meet deadlines or appointments. Distractions or interruptions – of whatever
kind – are bothersome.
 Be always on time, but not way too early. Punctuality is very important, both in private and
business life.
 The type of business attire is dependent on the position in the company. In general, how-
ever, you should pay attention to adequate and correct, but rather inconspicuous clothing.
 If you are invited for dinner, bring a gift, such as flowers or wine.

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 DON'T

 Use recent German history as a topic for small talk.

 Call older people by their first names and "Du", unless they have offered you this privilege
(young people tend to be much more informal).
 Be shy to ask questions, if you do not understand something.
 Private and business are usually treated separately. If you do not know your partner, do
not ask too personal questions. This will very quickly be perceived as an intrusion into the
private sphere.
 Come too late to a meeting. The maximum delay for a quarter of an hour is generally ac-
cepted, but can also be perceived as rude.
 Take the German direct way of speaking personally. Criticism is usually expressed bluntly.
 Gesticulate a lot in a business meeting or carry out any aggressive discussions.

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 5.
Impressum

Publisher
ICUnet.AG
Fritz-Schäffer-Promenade 1
94032 Passau
Telephone: +49 851 988666-0
Fax: +49 851 988666-70
Email: [email protected]
Internet: www.icunet.ag

Status: December 2014

Headquarters
ICUnet.AG
Fritz-Schäffer-Promenade 1
94032 Passau

Executive Director
Dr. Fritz Audebert

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