German Business Culture

In: Business and Management

Submitted By Panda123
Words 2614
Pages 11
German business culture tips
Keep in mind most of this is copy and pasted and has not been reworded and extracted yet.
Background of German business culture
In Germany, much greater attention has been paid to academic, technical education and its value to business in general. Therefore, companies tend to be run by technical experts rather than lawyers and accountants and this is reflected in the high regard in which engineers are held by other Germans.
Diligence and competence are characteristics which are held in high esteem by colleagues and are seen as the key indicators of performance. Appraisal systems based on the softer competencies as favoured by many U.K. and U.S. firms are still not common in traditional German companies.
German business structures
Most of the power in German companies is vested in the hands of a few senior managers. Larger companies (AG & GmbH) have a Supervisory Board (Aufsichtsrat) which appoints the Management Board (Vorstand). The management board is the final decision-maker on policy matters which affect management.
However below Vorstand level, companies tend to have a strictly hierarchical approach within which individual's specific roles and responsibilities are tightly defined and compartmentalised. This results in a methodical approach to most business issues where procedures and adherence to well-defined rules are respected.
This methodical approach has both good and bad points. On the plus side, everybody knows what is expected of them and has a process to help them achieve clearly identifiable goals. On the other hand, a criticism that is often levelled at German industry as a whole and at German business people individually is that they are inflexible and slow to change to new situations.
Management in Germany
Managers in Germany are expected to be technically capable in their respective areas and to show…...

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