german negotiatior

8/2/2019 German Negotiatior

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INTER-CULTURALMANAGEMENT

THE GERMAN MODEL

Prof. Alexandra Y. BENZ

[email protected]


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THE GERMANIC WORLD

Geographically, the Germanic World includes Germany, Austria,60% of Switzerland, a tiny portion of Holland and of Belgium, andanother one of North-East Italy (going by the language)

Czechs and Slovaks as businessmen and negotiators, behave verymuch like Germansbut not quite.

Many Germans are comfortable conducting business in English andtheir values are pretty much the same as in the Anglo-Saxon countrycluster:

Their Values are those expressed in protestant ethics

- individuals prevail over institutions and are directlyresponsible for their lives and their actions

- individuals are equal in rights

- autonomy, progress and individual achievement are

valued


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THE GERMANIC WORLD

(1) THE GERMAN FIRM and its cultural environment:

3 main differences from the Anglo-Saxon model:

- Fear of risks and novelties

.. High Uncertainty Avoidance: anxious peopleOrder is reassuring (ORDNUNG)

.. Importance of plans, rules, procedures

and structures.. Resistance to risks and change

.. Very much past-oriented

.. Much less entrepreneurial than other Anglo-Saxons, or Latins


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THE GERMANIC WORLD

- Compartmentalization (in space, in time, and inwork organization)

.. A consequence of the above

.. Flat organization charts

.. Cloisoning of people and information

.. Executives are experts, often Engineers

.. Companies operate like decentralized, well-oiledmachines

.. Sanctity of living space: Lebensraum

- Slow decision-making but quick implementationof decisions

.. Federalistic and democratic approach of decision-making; search for consensus

.. Strict respect of decisions, laws and regulations

.. Strong business and corporate ethics (CSR,

Green ideology, sustainability)


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THE GERMANIC WORLD

Better balance between individualism and collectivism than in the USA:

- Manifest concern and care for other members of in-groups

- Ideal of solidariy in the society (Sozialdemokratie)

Longer-term orientation than in the USA (LT planning in Germany is 10-

year vs. 3-year LT planning in the USA)

Relatively more formal (respecting titles, hierarchies and status) than inthe USA, with more straight-forward and direct communication, however


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THE GERMANIC WORLD

(2) NEGOTIATING STYLE

A strongly monochronic culture, wherePnktlichkeit is essential

Much preparation and organization; some rigidity in execution later

Direct communication: abruptness and readiness to get to the point -

Proud of speaking their mind, they are not afraid to say NO, simplyNO...

. It generally, means NO,but

Germans answer questions willingly, in a desire of clarity andtransparency, and they also ask many questions themselves

Clarity of mutual understanding is the prime goal of a negotiation

They like breaks for brainstorming and coordination, and they often

ask for brainstorming time before making important decisions


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THE GERMANIC WORLD

They make few concessions, and will like to trade them

They are completely committed: totally serious and reliable in the longterm at execution level, respecting their contractual obligations by theletter

They like progress reports, ongoing communication and some re-assuringcontrol mechanisms in the execution of a contract

They show simple manners, and make no socializing effort

Slow and formal negotiating pace: they make and expect detailed formalpresentations, supported by (past) facts and figures. History andbackground information are expected, not fancy visuals

They make realistic initial first-offers without high-low tactics ever


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THE GERMANIC WORLD

Much emphasis is laid on the legal aspects and the fine points of writtencontracts. The expection is that the contract will NOT be renegotiated ormodified soon after it has been signed

Transparency and honesty are a must: better report issues, failures orfailed comitments rather than hide them during execution...

Much personal consistency is expected from each Negotiator in theTeam(s)

Emotions are put aside, until the end of the negotiation

Not a gift-giving culture

Not much humor either

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THE GERMANIC WORLD

(3) BUSINESS PROTOCOL

Formal dress codes (on the first few days), becoming more casual later

Addresses are very formal and use titles: stay with titles, family names and

Sie, until your counterpart suggests moving to a less formal mode

Strong handshakes; eye contact. Smiles are saved for friends and family

Not much haptics. Also, interpersonal distance is longer with Germans than

with Latins and Arabs. They would feel invaded in their private space

otherwise....

Not much entertainment or socializing: they are more task- and goal-

oriented than relationship-orientated in business relations

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