GermanyWorking and Living

Internal document Infosys Technologies Limited
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Germany
Working
&
Living
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Doni John Page 1 of 21 Thursday, 29 December 2005

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Table of Contents
Introduction ................................................................................................................................................................... 4
Germany - Country Profile ........................................................................................................................................... 4
Facts and Statistics................................................................................................................................................. 4
Culture of German Management ................................................................................................................................. 4
Overview of German management and practices ................................................................................................ 4
German Society & Culture ........................................................................................................................................... 5
A Planning Culture .................................................................................................................................................. 5
The German Home................................................................................................................................................... 5
General Etiquettes ........................................................................................................................................................ 6
Public Behavior ....................................................................................................................................................... 6
Introducing oneself/others ..................................................................................................................................... 6
Shaking hands ......................................................................................................................................................... 6
Greeting others........................................................................................................................................................ 7
Addressing others................................................................................................................................................... 7
Farewell .................................................................................................................................................................... 7
Communication, Conversation, Getting together…............................................................................................. 7
General Guidelines .............................................................................................................................................. 7
Welcome Topics of Conversation ........................................................................................................................ 8
Topics to Avoid..................................................................................................................................................... 8
Some basic expressions ...................................................................................................................................... 8
Business Etiquettes...................................................................................................................................................... 9
Telephone etiquettes............................................................................................................................................... 9
Making presentations.............................................................................................................................................. 9
Planning work .......................................................................................................................................................... 9
Precision, Quantification ...................................................................................................................................... 10
Meetings, Activities ............................................................................................................................................... 10
Timelines & Punctuality ........................................................................................................................................ 10
Deliverables ........................................................................................................................................................... 10
Resource Plan........................................................................................................................................................ 11
Project monitoring................................................................................................................................................. 11
Soft skills or Behavior........................................................................................................................................... 11
Business Attire ...................................................................................................................................................... 11
Business Dinners .................................................................................................................................................. 12
Ladies at the Dinner Table ................................................................................................................................. 12
Alcoholic Beverages........................................................................................................................................... 12
Leaving a Tip...................................................................................................................................................... 12
Table manners ................................................................................................................................................... 12
Some more guidelines on entertaining for business success ............................................................................ 12
Gift giving............................................................................................................................................................... 13
Some guidelines................................................................................................................................................. 13
Appreciated Gifts................................................................................................................................................ 13
Gifts to Avoid...................................................................................................................................................... 14
Negotiating, Making a deal…................................................................................................................................ 14
Business cards................................................................................................................................................... 14
Meeting formalities ............................................................................................................................................. 14
Reactions from your counterpart(s).................................................................................................................... 14
Preparation......................................................................................................................................................... 14
“No”, “I can't”, “This is impossible” …................................................................................................................. 15
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Other intricacies ................................................................................................................................................. 15

Wrapping up a negotiation/discussion ............................................................................................................... 15
Living in Germany....................................................................................................................................................... 16
Renting a Home ..................................................................................................................................................... 16
Getting Started ................................................................................................................................................... 16
What you’ll Get................................................................................................................................................... 16
The Lease .......................................................................................................................................................... 16
Register With the Police ....................................................................................................................................... 16
Waiting Game .................................................................................................................................................... 17
What You Need To Bring ................................................................................................................................... 17
When To An-, Um- Or Abmelden ....................................................................................................................... 17
Getting Your Permit – ‘Aufenthaltserlaubnis’..................................................................................................... 17
What You Need To Bring ................................................................................................................................... 17
What it Costs...................................................................................................................................................... 17
How Long Is It Valid? ......................................................................................................................................... 17
Contact the Utilities............................................................................................................................................... 18
Rubbish and Recycling ...................................................................................................................................... 18
GEZ - Television .................................................................................................................................................... 18
Open a Bank Account ........................................................................................................................................... 18
Residency Permits Required ............................................................................................................................. 18
Credit Cards ....................................................................................................................................................... 19
How to Operate Your Account ........................................................................................................................... 19
Banking Blues .................................................................................................................................................... 19
Healthcare system................................................................................................................................................. 19
Premiums ........................................................................................................................................................... 19
Employer Responsibility..................................................................................................................................... 19
Medical Surcharge ............................................................................................................................................. 20
Hospital Care ..................................................................................................................................................... 20
Sick Pay ............................................................................................................................................................. 20
Cuts in Claims .................................................................................................................................................... 20
Preventive Action ............................................................................................................................................... 20
Dental Care ........................................................................................................................................................ 20
Obtaining a Driving License ................................................................................................................................. 20
Checklist............................................................................................................................................................. 20
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Introduction
"Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance
at best and often a disaster." - Dr. Geert Hofstede
With increasing globalization, companies today are operating in a boundary less world. To be operating in different
countries and to be successful, the companies need to adapt to local customs and culture quickly. Operating in
Germany is no exception to this. Because of its unique culture and tradition, Germany stands apart from other
countries in many aspects and that can make doing business here quite challenging.
Dr Geert Hofstede conducted one of the most comprehensive studies on how the behavior in workplace is influenced
by culture. He collected and analyzed data from over 100,000 individuals from forty countries. From those results
Hofstede developed a model that identifies four primary dimensions to differentiate cultures. He later added a fifth
dimension, Long-term Outlook.
According to Hofstede, a culture can be analyzed on five dimensions. These dimensions are described briefly below:.
• Power distance: The degree of inequality among people.
• Individualism versus collectivism: The degree to which one thinks in terms of ‘I’ versus ‘we’, whether ties
between people are loose or whether people are part of a cohesive group throughout their lives.
• Masculinity versus femininity: The extent to which a culture is conducive to dominance, assertiveness and
acquisition of things, versus a culture which is more conducive to people, feelings and quality of life.
• Uncertainty avoidance: The degree to which people in a country prefer structured over unstructured situations.
• Long-term versus short-term orientation: Long-term values oriented towards the future like saving and
persistence and short-term values oriented towards the respect for tradition and fulfilling social obligations.
Germany - Country Profile

Facts and Statistics
• Location: Central Europe, bordering Austria 784 km, Belgium 167 km, Czech Republic 646 km, Denmark 68
km, France 451 km, Luxembourg 138 km, Netherlands 577 km, Poland 456 km, Switzerland 334 km
• Capital: Berlin
• Climate: temperate and marine; cool, cloudy, wet winters and summers; occasional warm mountain (föhn) wind
• Population: 82,431,390 (July 2005 est.)
• Ethnic Make-up: German 91.5%, Turkish 2.4%, other 6.1% (made up largely of Greek, Italian, Polish, Russian,
Serbo-Croatian, Spanish)
• Religions: Protestant 34%, Roman Catholic 34%, Muslim 3.7%, unaffiliated or other 28.3%
• Government: federal republic
Culture of German Management

Overview of German management and practices
German management, as it has evolved over the centuries and has established itself since World War II, has a
distinct style and culture. Like so many things German, it goes back to the medieval guild and merchant tradition, but
it also has a sense of the future and of the long term.
The German style of competition is rigorous but not ruinous. Although companies might compete for the same
general market, as Daimler-Benz and BMW do, they generally seek market share rather than market domination.
Many compete for a specific niche. German companies despise price competition. Instead, they engage in what
German managers describe as “Leistungswettbewerb”, competition on the basis of excellence in their products and
services. They compete on a price basis only when it is necessary, as in the sale of bulk materials like chemicals or
steel.
The German manager concentrates intensely on two objectives: product quality and product service. He wants his
company to be the best, and he wants it to have the best products. The manager and his entire team are strongly
product oriented, confident that a good product will sell itself. But the manager also places a high premium on
customer satisfaction, and Germans are ready to style a product to suit a customer's wishes. The watchwords for
most German managers and companies are quality, responsiveness, dedication, and follow-up. Product orientation
usually also means production orientation. Most German managers, even at senior levels, know their production
lines. They follow production methods closely and know their shop floors intimately. They cannot understand
managers in the United States who want only to see financial statements and “the bottom line” rather than inspect a
plant's production processes. A German manager believes deeply that a good-quality production line and a good-
quality product will do more for the bottom line than anything else. Relations between German managers and
workers are often close, because they believe that they are working together to create a good product.
If there is a third objective beyond quality and service, it is cooperation--or at least coordination--with government.
German industry works closely with government. German management is sensitive to government standards,
government policies, and government regulations. Virtually all German products are subject to norms--the German
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Industrial Norms [Deutsche Industrie Normen--DIN]--established through consultation between industry and
government but with strong inputs from the management associations, chambers of commerce, and trade unions. As
a result of these practices, the concept of private initiative operating within a public framework lies firmly imbedded in
the consciousness of German managers.
The German management style is not litigious. Neither the government, or the trade unions, nor the business
community encourages litigation if there is no clear sign of genuine and deliberate injury. Firms do not maintain large
legal staffs. Disagreements are often talked out, sometimes over a conference table, sometimes over a beer, and
sometimes in a gathering called by a chamber of commerce or an industrial association. Differences are usually
settled quietly, often privately. Frequent litigation is regarded as reflecting more on the accuser than on the accused.
Because of these attitudes, Germany has comparatively few lawyers. With one-third the population and one-third the
GDP of the United States, Germany has about one-twentieth number of lawyers. German managers are drawn
largely from the ranks of engineers and technicians, from those who manufacture, design, or service, although more
non-engineers have risen to the top in recent years. They are better paid than other Europeans [except the Swiss],
but on average receive about two-thirds of the income that their American counterparts expect. Because managers
usually remain in one firm throughout their careers, rising slowly through the ranks, they do not need a visible bottom-
line result quickly. Managers do not need to be concerned about how their careers might be affected by a company's
or a division's progress, or lack of progress, for each year and certainly not for each quarter.
German taxation also induces management toward long-term planning. German tax legislation and accounting
practices permit German firms to allocate considerable sums to reserves. German capital gains tax rules exempt
capital gains income if the assets are held for more than six months or, in the case of real estate, for more than two
years.
Because management has not been regarded in Germany as a separate science, it was rare until the 1980s to find
courses in management techniques such as those taught at schools of management in the United States. Germans
believed that management as a separate discipline bred selfishness, disloyalty, bureaucratic maneuvering, short-
term thinking, and a dangerous tendency to neglect quality production. Instead, courses at German universities
concentrated more on business administration, or “Betriebswirtschaft”, producing a Betriebswirt degree. Despite this,
two West German schools for business administration, the Hochschule für Unternehmensführung and the European
Business School were established during the 1980s, but they teach in ways that reinforce rather than overturn
traditional German ways of management.
Out of this compendium of business practices arises what might be termed a German management style, with the
following characteristics: collegial, consensual, product- and quality-oriented, export-conscious, and loyal to one
company and committed to its long-term prospects. One could legitimately conclude from this that the German
system could stifle change because it is not as innovative, aggressive, or results-oriented as the United States
management style. That, however, would not be correct, for change can and does take place. It occurs gradually, not
always obviously, under the mottoes of stability and permanence, with the least dislocation possible, and often under
competitive pressures from abroad. German managers themselves occasionally speculate that change might come
too slowly, but they are not certain whether or how to alter the system and its incentive structures.
German Society & Culture

A Planning Culture
• In many respects, Germans can be considered the masters of planning.
• This is a culture that prizes forward thinking and knowing what they will be doing at a specific time on a specific
day.
• Careful planning, in one's business and personal life, provides a sense of security.
• Rules and regulations allow people to know what is expected and plan their life accordingly.
• Once the proper way to perform a task is discovered, there is no need to think of doing it any other way.
• Germans believe that maintaining clear lines of demarcation between people, places, and things is the surest
way to lead a structured and ordered life.
• Work and personal lives are rigidly divided.
• There is a proper time for every activity. When the business day ends, you are expected to leave the office. If
you must remain after normal closing, it indicates that you did not plan your day properly.
The German Home

Germans take great pride in their homes.
• They are kept neat and tidy at all times, with everything in its appointed place.
• In a culture where most communication is rather formal, the home is the place where one can relax and allow
your individualism to shine.
• Only close friends and relatives are invited into the sanctity of the house, so it is the one place where more
informal communication may occur.
• There are many unwritten rules surrounding the outward maintenance of one's home.
• It is imperative that common areas such as sidewalks, pavements, corridors (in apartments), and steps be kept
clean at all times.
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General Etiquettes
Public Behavior
If you do not speak German, be careful of automatically addressing a person in English. While Germans generally
speak very good English, some may well feel offended at the presumption. There is some noticeable resentment
among especially the 45 to 60 age group, which generally doesn't feel as secure in the language as the next younger
generations, which have grown up with a prevalence of English introduced into many aspects of German commercial
life.
Germans do not expect to be greeted by strangers, even when eye contact has been made, in the office
environment. The fact-oriented thinking is, “since I don't know this person, there is no relationship, so there is no
need to get into superficial pleasantries”. Generally, the smaller the office is, the more greetings will be forthcoming
and expected, but the bigger the environment is, the less it will be expected and offered, especially if you are not a
permanent member of the staff.
Generally, Germans prefer third-party introductions whenever possible. This has to a significant degree to do with a
“wait and see” communication behavior that evolved from the historical “village mentality” They will not expect to be
approached by complete strangers and will not as a rule do the same to establish some points of commonality
through fluent small talk.
Firm, brief handshakes at the time of arrival and departure are standard in both business and social relationships.
Hugging and kissing on both cheeks are common only among good friends and family members [though hand-
shaking between parents and grown children or between adult siblings is not at all uncommon]. When arriving and
leaving, take the time to shake hands with everyone individually in a group. The simpler American “group wave”, for
example, will not be appreciated in all but the most casual and familiar gatherings.
Eye contact during the introduction is serious, direct, and should be maintained as long as the person is addressing
you. Even in public between strangers, eye contact or out and out staring can be direct and not necessarily smiling. It
would be wrong, however, to assume that all stares in public are meant to be threatening. Nonetheless, do not
expect direct eye contact to necessitate some greeting or acknowledgement; the German will also not expect
anything from you. This is one of the most typical communication patterns immediately observed by visitors to
Germany. If the visitor is visibly foreign, this can unfortunately result in a mistaken perception of the Germans as cold
and unfriendly to foreigners. What is essentially a typical example of intercultural miscommunication /
misunderstanding, can suddenly misread in an unfortunate, racial context.
Before crossing the street, pedestrians are expected to wait patiently on the curb until the light turns green.
Moreover, on streets where there are no traffic lights, be very careful when crossing, since German drivers will not
always stop for you.
Several factors [e.g. population density, excessive rules and regulations that govern many aspects of daily life, the
fact rather than relationship orientation of the German character] converge into a typically aggressive “driving culture”
on the famed German autobahn. Germans can be extremely impatient and aggressive drivers. Reaction time on
German roads is much shorter than, say, in North America, where lower speed limits and plentiful space enable a
driver to simply take his or her time and take it easy to maneuver, be this while negotiating for a parking space,
reacting to a green light, or permitting pedestrians to pass. Tailgating is very common and quite aggressive,
especially on the left lane of the autobahn, where etiquette dictates that slower vehicles give way immediately by
moving to the right lane. The absence of a speed limit also means that one is always catching up to the next car out
in front and having to pass. Be prepared for much more “chasing” and maneuvering, which can make autobahn
driving much more stressful.
Although this is usually a very formal, law-obeying society, pushing, shoving, and other displays of impatience in line-
ups are not uncommon. Apologies are in such cases not necessarily the rule. Interestingly, despite the high value of
rules and social order in most aspects of public life, queuing and waiting your turn are not strong traits in present day
Germany. The bakery is a good showplace for this kind of behavior. Sales personnel themselves do not expect lines
and will tend to aggravate the problem by typically asking “Wer is jetzt dran?” [“Whose turn is it now?”]. If you do not
move fast and stick to your guns, expect someone brazenly to butt in right in front of you. Petty arguments are not
uncommon at such venues, and don't expect the sales person to speak up for you!
You can expect the distance of comfort between strangers in public to be much smaller than is considered normal in
North America and Australia, but more than in African and Arab countries. While people in conversation typically
maintain a comfortable distance of at least 2 ft between them, the person directly behind you in the supermarket line
can be literally breathing down your neck.
Introducing oneself/others
In a business environment, the individual of higher rank is responsible for introducing anyone who is new to the
group. For example, a trainee would be introduced to his or her new colleagues by his supervisor or his mentor. A
new professional employee would be introduced by his or her manager. Note, however, that rank refers to an
individual's professional position in the corporate hierarchy, and not his or her seniority at a company. For example,
in Germany, an older office assistant would have less rank than a young manager.
Shaking hands
In Germany, shaking hands is a common custom. However, in deciding whether or not to initiate a handshake when
introducing yourself, keep the following tips in mind:
• The colleague higher up the corporate hierarchy always has the "handshake initiative", or the right to offer his or
her hand first.
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• If you approach a group of people, you should always extend your hand and introduce yourself.
• To show respect, always extend your hand to older individuals first.
Greeting others
Make a positive impression from the start. By standing up and walking out from behind your desk to greet somebody
when they come to meet with you, you are subtly expressing respect for that person. Such an action sends the
message that you would like to communicate without a barrier between the two of you. If you are busy working when
someone comes to meet with you, stop what you are doing immediately and turn your attention to him or her. If you
are on the phone, or it is otherwise not possible to greet the person, at least make eye contact when he or she
enters, wave her into the room, and point to a chair for her to be seated. Do anything you can to make a positive
impression, then quickly end your phone conversation and offer a warm welcome.
"Guten Tag" ("Good Day") v/s "Grüss Gott" ("Greet God") - : "Grüss Gott" is used in the regions of Bavaria and Baden
Wurttemberg, and also in Switzerland and Austria. "Guten Tag" is used in the rest of Germany. If you do happen to
say "Guten Tag". In an area where it is not used, you will immediately be recognized as someone who is "not-from-
around-here". When a foreigner in Germany says "Grüss Gott" in an appropriate region of the country, it is easier for
Germans to consider them as "insiders". Additionally, the correct greeting also shows that you appreciate and
acknowledge regional practices and customs. In West, North, and East Germany you should never say "Grüss Gott"
because it will sound extremely ignorant, as it just is not used there.
Addressing others
“Du” v/s “Sie”: When translated to English, both these words refer to “You”. English native speakers who speak
German often find it tricky to navigate between “Sie” and the familiar “Du”. Thus, making the choice between "Du"
("you" familiar) and "Sie" ("you" formal) is not only a problem for foreigners. The general rule would be to always use
“Sie” unless someone specifically offers you the “Du”. The point here is that if the German offers to “duzen”, the
foreigner should not worry about insulting [loss of “face”] or showing disrespect to the older or higher-ranking
German.
First names are usually reserved for family members, as well as friends and close colleagues. Moreover, in German
business culture, it's not uncommon for colleagues who have worked together for years to remain on a formal, last
name basis. This can reflect, on the one hand, a pronounced institutional hierarchy in German society which requires
a degree of formality.
When shopping or approaching a customer service provider, it's common courtesy here to say “Guten Tag” [“hello”]
upon entering an establishment, and later “Vielen Dank, auf Wiedersehen” [“thank you, goodbye”] to the presiding
store clerk when leaving. Greeting strangers on the street, however, with a “hello” or “Guten Tag” is not expected you
may well get no reaction despite there having been direct eye contact.
Farewell
"OK, everyone, it's time for us to turn in for the night!" - If you hear this or a similar statement from your host or
hostess, you can be sure that he or she wants the evening to come to an end as soon as possible. To ensure that a
party or a get-together ends as gracefully as it begins, pay attention to any mention of when the party ends. You
might see the following in an invitation: "Apéritif um 19 Uhr" (Cocktail at 7:00 PM), "Essen 19:30" (Meal at 7:30 PM),
"Ende gegen 23 Uhr" (To end around 11:00 PM). It is customary to list such times in both business and private
invitations in Germany. The word "gegen" (around) in this case does not mean that the guests should jump up and
leave as soon as the clock strikes 11:00 PM. However, one must respect any such indication in the most appropriate
manner.
Communication, Conversation, Getting together…
General Guidelines
“Small talk” with strangers does not have a significant social function in German culture as it does in very
relationship-oriented cultures [e.g. Mediterranean, South American, African, Middle Eastern countries] or the large
immigration countries.
Be prepared to take the first step as the newcomer to introduce yourself to an established group when you arrive in a
new environment [e.g. office, student dormitory, social gathering, new neighborhood, etc.]. Unless you are
specifically invited to join a group, do not automatically expect the established group to send out the “welcome
wagon”. The German culture is highly “fact-oriented”. This extends to a recognizable difference in the communication
behavior extended to “friends” [“Freunde”] and “acquaintances” [“Bekannte”]. Be prepared for unsolicited attempts to
start a conversation with a complete stranger in a new environment to be awkward, often taking the form of very
stilted Qs & As.
The concept of “mingling” doesn't really exist in the German culture. Be prepared to be left standing holding a drink
by yourself in the corner if you arrive at a German party knowing only the host, or only one or two other
acquaintances. German parties are generally where good friends go to hang out together, and not seen as a chance
to meet “new people”. It is not uncommon at parties to see one or two guests initially converse awkwardly with a few
individuals only to eventually be relegated to sit alone, as established cliques of friends form with each new arrival.
Germans traditionally use “Wie geht es Ihnen?” [“How are you?”] as a literal question that expects a literal answer, in
contrast to the common English usage of “How's it going?” to simply meaning “Hi”. It may, therefore, be considered
strange or superficial to ask the question and keep on moving without waiting for an answer.
Even if you are staying for several days, do not expect German colleagues to take you out every evening for meals
and an evening program, as they will assume that you will want to have time to yourself after business hours, since
this has high priority for them in their culture. If you are hosting German guests, keep in mind that it may not be
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necessary to arrange a full program for them. It is very likely that they will want some time for themselves to pursue
their own interests or simply to relax a bit away from business.
Welcome Topics of Conversation

• Sports, particularly soccer [the national sport]
• Travel, recent holidays
• Current events, politics [if you know what you're talking about]
• Work and professions
• Your previous experiences and travels in Germany and other parts of Europe [just make sure you know your
geography!]
• Among those who imbibe, beer is often a good topic of conversation. Germany produces some of the finest
beers in the world, and seasoned drinkers enjoy comparing and contrasting the qualities of the various brews
available.
Topics to Avoid
• World War II/the Holocaust [although sometimes you will be surprised at how openly and frankly Germans of all
ages will make reference to or comment on their history]
• Personal questions [especially salary, cost of personal objects] among people you don't know or know well,
especially in a business environment [work and family life are usually kept separate]
Some basic expressions

Any effort, small or large, to learn and use some basic expression of courtesy will be appreciated. These might
include:
• Danke “Thank you”
• Vielen Dank “Thank you very much”
• Bitte schön “You're welcome”
• Guten Tag“ Hello”
• Guten Morgen “Good morning”
• Guten Abend “Good evening”
• Können Sie mir helfen? “Can you help me?”
• Sprechen Sie Englisch? “Do you speak English?”
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Business Etiquettes
Telephone etiquettes
In Germany, it is generally customary to state your name when you answer the phone. In accordance with corporate
identity trends, the customary way to answer a phone at a German company is to state the name of the company, the
name of the person answering the phone, and a greeting.
For example: “Infosys Technologies Limited, John, Guten Tag” (“Infosys Technologies Limited, John, Good day”)
Making presentations
For the most part, when giving a presentation in Germany, you don't have to worry. Depending on the audience, it is
often acceptable to present in English, but it is always a good idea to confirm this beforehand. This fact might make
presenting in Germany sound easy; however, Germans expect presentations to go beyond superficial information
about a topic and to provide supporting facts for business decisions. Although they prefer to focus on hard facts and
their sources, it is acceptable to lighten up your presentation with a few stories or anecdotes. At the same time, be
careful not to tell long, self-praising stories or to add too many jokes or anecdotes – you do not want to come off as
being too arrogant or unprofessional.
When preparing your presentation, keep the following pointers in mind:

• Before presenting, make sure you know which aspects of your topic the audience is most interested in and
which they are not. You should also know which questions your audience wants to have answered by the end of
your presentation.
• A good way to minimize your nervousness at the beginning of your presentation is to memorize the first few
lines of your introduction.
• Distribute handouts to audience members so that they can better follow your presentation and take notes.
• The most successful presenters capture the audience's interest with their first sentence. Telling a joke is a good
way to do this, but remember this is not always customary in Germany. A joke should at least have something to
do with the topic being presented. As a general rule, if you tell more than three jokes during your presentation,
you will be treading on unprofessional terrain.
• Use attractive visuals to enhance comprehension. A picture IS worth a thousand words. Visuals also add
interest and help reinforce the written documents. The use of colors, pictures, and symbols has the ability to
help capture and maintain the interest of the audience.
• Because many people are visual learners, these aids can help you make complex facts more understandable
and easier to portray.
• Finally, remember these golden rules: Don't let your audience get bored AND - Always thank them for their
attention.
Planning work
While everywhere in the world, one is suppose to have a plan to execute a project but in Germany a plan is much
beyond that. Germans traditionally like to plan everything to the greatest details possible before they set out to do
any activity. This applies to even simple routine activities in life like shopping for groceries.
The plan for the project will be your first impression on the client. From the plan, the client will judge you and the
impression he/she forms of you from this seldom changes. If possible have two plans. One plan should be a high
level plan. This should indicate the various phases of the project, key milestones and their dates. This plan can be
used for management meeting and other high level meetings. The other plan should be a detailed plan and should
contain the following:
1. List of all the main activities for the plan period
2. All the sub-activities with in a main activity. Give as much detailed break-up as is possible.
3. Start and end dates for these activities
4. The interdependence of activities
5. Resources required
6. Responsibility
It is advisable to prepare a list of all the risks involved and brief the client on this. Keep this updated regularly. If there
is anything that is likely to impact the timeline and delivery, tell your client as soon as possible. Review this with client
and give detailed information on what you are doing to mitigate the risk and overall impact it can have on the project.
There may be cases where some other parties (internal or external to the client) are involved. In such cases you may
need discussion with them before you can make a time plan. If a plan is being put in place without the discussion with
these parties, indicate this as an assumption and clearly state the effects in case the time plan is not suitable to those
parties.
Any change to the agreed plan, even if it is for the intermediate activities or those being carried out at offshore should
be communicated and discussed with the client. This brings in ‘transparency’ in the whole process and makes the
client comfortable.
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Precision, Quantification
Germans love to be very precise and hence don’t like qualitative information much. Where possible give quantified
information and use data as much as is possible. As an example if there is going to be a delay in some delivery, tell
your customer about how much the delay is and how this delay has been calculated.
Be prepared with your background calculations for effort/cost estimation. This will demonstrate that you have done
your work thoroughly and scientifically. This will go a long way in building the client trust.
Meetings, Activities
As for everything else, the meetings and activities like workshop/seminars etc. also need to be planned. Regular or
normal meetings are normally scheduled one week or more in advance. Other meetings (high level management,
workshops etc.) typically should be scheduled much in advance.
While scheduling a meeting, send out the agenda in advance. If there are going to be any presentations, then a copy
of these should also be sent out to participants prior to the meeting. While scheduling meeting you are expected to
take care of the following:
• Send out the invitation to all the desired participants
• The meeting invitation should clearly indicate location, time and agenda
• Book a room with right seating capacity. Please note that the rooms are also to be booked in advance.
• It is customary to arrange for coffee/tea during the meeting.
• Ensure the availability of projector, laptops and network connection if these are required.
The preferred times for business appointments are between 10:00 a.m. and 1:00 p.m. or between 3:00 p.m. and 5:00
p.m. Avoid scheduling appointments on Friday afternoons, as some offices close by 2:00 p.m. or 3:00 p.m. on
Fridays. Be sensitive to vacation and festival periods here. Germans generally have six weeks of paid vacation,
which means someone is almost always “in Urlaub” [“on holiday”]. Therefore, be prepared to take this into
consideration when making appointments or planning visits. For instance, Germans commonly take long vacations
during July, August, December and Easter, when schools break.
If you must be late for any reason, it's important that you call and notify the person who is expecting you. Moreover,
you should give a plausible explanation for the delay. Casually changing the time and place of an appointment is not
appreciated. Allow for at least 24 hrs, if you can, to change or cancel appointments. Be prepared to offer a plausible
explanation.
During the meeting notes should be taken down. You should designate one person at the start of the meeting who
will prepare the minutes of the meeting (MOM). MOMs are treated as official documents and all decisions recorded in
MOMs are considered binding. For recording MOM use the format provided by client.
Do not do the following for a meeting:

• Go un-prepared in a meeting (Know your actions items for the meeting in advance and prepare accordingly)
• Attend to phone calls during the meeting
• Reach late for the meeting (3-4 minutes is also considered late)
Timelines & Punctuality

Germans have a strong liking for sticking to time. They dislike if things are late or if time has not been defined
properly. Even for a casual meeting (with friends or family) they will fix the exact time like 6PM and not ‘Around 6’.
Likewise in the business, once a timeline has been defined and agreed upon then it is expected that it will be
adhered to.
The timelines are set in stone and failing to meet them could seriously jeopardize your business. This is even true for
intermediate deliverables. Hence care should be taken while making a commitment to a timeline. Do not commit if
you are not sure. Ask for more time to work on it. Once you have thoroughly done your homework and figured out the
time line that can be met, then convey it to your client. There may be situation where the client may try to pressurize
you for a certain timeline, but if you have any doubt about the delivery then do not agree to any such timeline.
Remember it is far worse to miss a delivery than to disagreeing with a timeline. Do not expect to be excused for a
delayed delivery because of tight timeline. If something is promised for Friday EOD, it does not mean that the
delivery can be made on Monday morning. Anything promised for Friday EOD should be delivered ideally before
4PM so that the person can go through it before the end of the week.
Avoid saying things like ‘this can be done in 5minutes’. This will be taken literally in Germany. Give a reasonable time
estimate and never make it lightly.
Germans frequently take long holidays. As with everything else, even the holidays are planned much in advance. It is
normal to ask for the holiday plans of your customers and also to see if there is going to be an impact on your time
plan. Clearly indicate to your customer if there is a need to shift the timeline because of this or discuss the
alternatives to carry on work in their absence.
Deliverables
It is expected that all deliverables to be delivered at various milestones are discussed with the customer. Customer
should be told what to expect and in what way. For documents, the customer should be briefed about type of
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document (word, xls, ppt etc.), sample content of the document and the format. Once agreed and accepted by the
customer, stick to these formats.
Also agree with customer on what documents the sign-off will be required and from which department. For other
deliveries discuss and define how these will be made and on what basis the acceptance will be given.
The idea is that the customer is aware of what to expect, when to expect and how it will be delivered. If it is known to
your customer then certainly it is going to bring in a comfort feeling to them. In Germany ‘surprise’ is one thing that is
not liked at all. They need to know what is happening and what will be the outcome.
Resource Plan
A resource plan is generally also asked before the project can start. In many cases the clients will like to meet the
resources before the work can begin. However what is not accepted in Germany is the change to the resource plan.
It is expected that assigned resources will work for the total duration of a project and there will be no change in the
process.
However if the changes are inevitable then take client into confidence by sharing with them the transition plan and
also by keeping them informed in advance. This will demonstrate that knowledge is not lost by changing the resource
and also that you have a plan for handling the change.
Project monitoring
Discuss and outline with the client as to how you are going to monitor and track the project progress. Share with
them any specific tools or the mechanism you are going to use to do so. Define the format and content of the tracking
sheet and get an approval from the client this activity. The client might fix a weekly review meeting to monitor the
project. Use the agreed formats for reporting the progress and highlighting any issue.
The ‘traffic lights’ are commonly used in Germany to indicate the status/state of various activities. The color ‘Red’
means things are critical and are not as they should be with ‘Green’ meaning the opposite.
Soft skills or Behavior

There are few things that need to be taken care of even though they do not directly impact you work. However if you
do not take care of these thing you may be viewed as rude and unpleasant to work with.
• Maintain cleanliness in your work area
• Check and take permission to use common coffee machines or kitchenette
• Find out how to pay for consumables
• Do not use other’s artifacts that are normally kept in a common refrigerator
• Maintain cleanliness in the kitchen
• Dress well in meetings
• Let the other person finish before you start speaking. Do not interrupt while the other person is speaking.
• If sharing the same office with client, try to follow their office timings
• Remember staying late does not necessarily shows that you are working hard but may be taken as a note that
you can not plan well.
Business Attire
The importance of being appropriately dressed for an occasion cannot be stressed enough. This holds true in both
business and private life. By dressing-up for an occasion, you express your respect not only for the occasion, but
also for the other guests, the surroundings, and especially the host or hostess.
Dress in corporate business and banking is generally formal, dark and conservative suits for both men and women.
Otherwise, business dress is relatively casual. Suits are seldom worn by clerks and other office staff, and are
standard dress for only managers at the upper levels. In banks, men tend to be more formally dressed than their
female co-workers, often attired in suit and tie. Dress codes in the IT sector are very casual. Khakis with a simple
jacket/blazer would be inappropriate, especially for first meetings or contacts.
Germans tend to dress in more conservative, muted colors, both in business and social environments. You will
notice, too, in both social situations and on a daily basis that Germans tend to “dress up” much more than, for
example, North Americans when they go out. This goes as much for walking the dog or shopping at the supermarket
as for going to restaurants and cafes. In other words, very casual sporting attire is seen on mostly teenagers and
students, or is otherwise reserved for the gym or beach. Dress shoes worn with jeans and a tastefully-coordinated
ensemble are quite normal for adult men and women.
Women should also avoid excessively ornate jewelry or displaying items of conspicuous wealth, especially in the
former East Germany. The standard of living in this area of Germany is still lower than that in the western part and
displays of affluence can cause resentment.
When you receive an invitation stating “informal” dress, don't assume you'll be welcome arriving in a T-shirt and
sweatpants. For a social gathering, informal more often than not means tastefully coordinated clothes, although not
necessarily a jacket and tie for men. An invitation stating “formal” dress usually means formal eveningwear, which is
very dressy by American standards.
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Most restaurants do not require a tie for men, although the upscale establishments expect both men and women to
arrive well dressed. [Important related side note: Patrons of restaurants are normally free to select their own tables
and seat themselves. In very upscale establishments, however, guests will more likely to be shown to their seats.]
Business Dinners
Breakfast meetings are not part of German business culture. It is traditional in Germany to eat the main meal of the
day at lunchtime, between 11:30 AM and 1:30 PM. In contrast to a long, several-course meal, a German lunch
usually consists of an appetizer (usually soup), a main course, and a dessert. When you are attending a business
conference, both lunch and dinner are considered important components of the conference. Meals allow those
attending to make personal contacts and to continue discussing business issues in a more casual atmosphere.
Supper is usually served from 7:00 p.m. to 8:30 p.m., and this is also the customary time for dinner parties to begin.
Consequently, dinner parties usually end at around midnight or later.
Ladies at the Dinner Table

Contrary to earlier traditions that frowned upon women speaking with the waiter, tasting the wine, or paying the bill,
all of these things are normal today. It is not only acceptable for a woman to ask for the bill, but also to enter a
restaurant first, and - if acting as hostess - to try the wine before it is served. However, this last situation will usually
not come into question at business luncheons because, in most cases, only non-alcoholic beverages are served.
Alcoholic Beverages
The consumption of alcohol in Germany (even during the work day) may be more common than you are used to in
your country, and when others drink, you may feel pressured to drink as well. Again, you don't need to worry -
modern etiquette suggests that it is acceptable to refuse a drink. In fact, you can even offer to order drinks for others
and refrain from drinking alcohol yourself.
Leaving a Tip
Generally, the rule states that 10-15% of the bill's total should be left as a tip if you were satisfied with the service you
received. If you weren't satisfied, you can simply not leave a tip, and others will not frown upon you. You may, on the
other hand, want to leave more than the standard 10-15% tip if the restaurant staff really went out of their way to
accommodate your needs. Also, when leaving, it is polite to thank the staff or your waiter / waitress with, "Danke
schön." ("Thank you.") This lets you express your appreciation in addition to the tip that you leave behind.
Table manners
For the most part, you do not have to make too much effort to mirror the Germans at the table. If you practice good
table manners at home, they will suffice in Germany; it is not necessary to worry about how to hold your fork or where
to place your napkin. But be careful - some behavior should be avoided. For example, in Southern Asia, it is normal
to chew loudly when eating and to belch after a good meal. If you were to do this in Germany, it could embarrass you
as well as those sitting with you. A few table manners that should keep in mind in Germany:
• Before eating, wish everyone at the table "Guten Appetit." ("Enjoy your meal.")
• Only take as much food as you plan on eating. The Germans usually "clean their plates".
• When eating, always use utensils; very few foods here are intended to be eaten with the hands.
• When you or others are eating, keep your hands on the table, not under it.
• Sit up straight, close to the table.
• Don't prop your head up with your hands.
• Don't bend your head over your food when you are eating or "shovel" your food in your mouth.
• Don't begin eating until everyone at the table has been served.
• Don't begin drinking until everyone has something to drink and a toast has been made.
• Look others in the eye when toasting.
• Do not get up to leave when you have finished eating, but wait for the others; if you came to dinner with others,
then leave with them also.
• Do not belch or chew with your mouth open.
• When you are finished eating, places your knife and fork together and rest them on your plate.
• There are often many additional pieces of cutlery, such as for appetizers, or buttering bread, for dessert, etc. If
you are unsure of which utensil to use, the best policy is to start from the outside and work your way in, course
by course.
Some more guidelines on entertaining for business success

• German businesspeople, as a rule, do not make business decisions during mealtimes. Follow the example of
your German dining companions and wait for them to initiate any discussions about business.
• Except for a few official dinners, do not expect your German hosts to entertain you with an evening program
every day. They will expect you to want to have some time to yourself. This is because Germans themselves
clearly separate private time from their professional duties.
• In some of the more informal restaurants during peak hours, you may be asked if you would mind sharing a
table with other patrons, instead of waiting for a free table. If this happens, and you accept, you are not
obligated to initiate conversation with your tablemates and socialize with them throughout the meal, as is often
the typical behavior in many relationship-oriented cultures.
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• Etiquette regarding who should pay at the end of a meal is quite different in German culture. The person who
extends the invitation will be the person who pays. It is not at all expected that the guest should even offer to
pay.
• A very important note: if a German colleague or friend merely suggests that you go out together to get
something to eat, this is not to be taken as an invitation! In other words, he will not be offering to pay. Typically,
in German restaurants, the waiter will come at the end of a meal and ask if the total should be “zusammen”
[totaled together on one bill] or “getrennt” [separate bills]. Unless you have been explicitly “eingeladen”
[“invited”], you can expect the waiter to be asked for separate bills, where the waiter will add together what you
have just eaten and you will be paying him directly at the table.
• German cuisine is traditionally heavy on the meats and sauces. This may present problems for people with
special diets [health reasons, religious beliefs, vegetarians, allergies, etc.]. However, the important point here is
that it will not cause irritation or embarrassment for your German hosts if you inform them of these restrictions
directly. Do not always expect Germans to ask you if there is anything you do not eat. Because Germans are
direct communicators, they will expect someone to speak up if they want something, disagree about or don't like
something. Irritation and inconvenience will rather result if you remain silent and “spring” the problem on the
host only when the dishes are being served.
• Germans do not often entertain business associates in their homes. If you are invited to a home however [which
is more common at higher management levels and among academics], consider it a relationship-building
gesture. You may be invited to a sit-down dinner in the evening, or a more common invitation is for afternoon
“Kaffee trinken” [“drinking coffee”, which basically means “eating cake”].
• Sit-down dinner parties begin quite punctually. If you must be late for any reason, it's important that you call and
notify your hosts. Again, as with all appointments, you should give a plausible explanation for the delay.
• Do not presume to seat yourself at a gathering: whenever possible, wait to be told where to sit [or wait for the
host to tell you to sit wherever you like].
• An “aperitif”, in the form of a liqueur or cocktail, may be served before dinner. When this same drink is served
after the meal, it is referred to as a “digestif.” Aperitifs or digestifs are usually served cold.
• The most common toasts are “Zum Wohl!” [with wine] and “Prost!” [with beer], both of which generally mean a
wish for good health. When making a toast, it is important to maintain direct eye contact from the time the glass
is raised, until it is placed back on the table. If many people are being toasted, make eye contact with each
individual around the table as you make the toast. This rule becomes even more important to remember as you
move west to east through Germany.
• If you do not want any more food or drink, say so politely [see above re: food restrictions]. Germans will not ask
again, as they expect you to express your personal wishes. They will also not take it as impolite or an insult if
you say “no”.
• If those around you are not smoking, you should ask permission before lighting up. Also, before you smoke, it's
considered polite to offer cigarettes to those in your company.
Gift giving
In general, gift giving is an important symbolic gesture practiced in all cultures. However, as practiced differently from
culture to culture, it is essentially a matter of knowing when to offer the gift and how large or small the value of the gift
should be given the relationship.
Some guidelines
In Germany, a small gift is polite, especially when contacts are made for the first time. Substantial gifts are not usual,
and certainly not before a deal has been reached if you don't want your intentions to be misinterpreted. Even small
souvenir-style gifts to thank local staff for their assistance and hospitality during your stay at a company will not be
expected but will always be appreciated. Avoid giving substantial gifts in private. The larger the gift, the more official
and public the giving should be.
Gifts are expected for social events, especially to express your thanks after you have been invited to a dinner party at
a home. Avoid selecting anything obviously expensive, as this may make the other person feel “obligated” to your
generosity. A lovely bouquet of flowers [though not red roses] for the lady of the house is a typical gift. When
purchasing this at the flower shop, ask the florist to wrap it up as a gift [“Würden Sie das bitte als Geschenk
verpacken?”]. Upon returning home, remember to send a hand-written thank you card/email to your hosts for their
invitation.
Appreciated Gifts
• For the company you are visiting, quality pens, tasteful office items with your company logo, or imported liquor
are usually safe choices.
• Fine chocolates can also be an appropriate gift when you are invited to a home.
• If you decide to bring alcohol, good imported liquor is the safest choice.
• You can also bring a wine of excellent vintage from your home country or an exceptional imported red wine. A
gift of German wine, however, should then be a more up-market label.
• If you are staying with a family, good gift selections can include coffee table books about your home country, or
anything that reflects the interests of your hosts and is representative of your country.
• An elegant, tasteful silk scarf can be an acceptable gift for the lady of the house.
• A local food specialty of your home country is usually a good idea for a gift, provided it is not too exotic. Keep in
mind that German tastes are generally on the conservative side, so especially for older hosts, very unusual food
gifts may well be under-appreciated.
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Gifts to Avoid
• Red roses are for lovers; lilies are used in funerals. A general rule would be to avoid including heather in a
bouquet as it is commonly planted in cemeteries.
• Clothing, perfumes, and other toiletries are considered far too personal to be appropriate gifts. Scarves,
however, are acceptable gifts according to German business protocol.
• Avoid bringing beer as a gift, since many of the finest brands in the world are already produced and widely
available here.
Negotiating, Making a deal…

What you should know before negotiating…
Business cards
Bring plenty of business cards. Unless you will be exclusively dealing with Germans, it is unnecessary to have the
reverse side translated into German. Germans, like other Europeans, write their first names before their family names
and should be addressed by the academic title given on their card [e.g. “Dr.”]. Include your full title or position, and
any university degrees you have earned or optionally professional organizations with which you are affiliated. When
designing your card, keep in mind that German businesspeople will want to learn as much about your background
and qualifications as possible.
Meeting formalities
Unless you are in the IT branch of business, meetings normally follow a formal procedure presided over by the
chairperson of the meeting. Follow the example of the senior participants as to how informal or formal you should act,
dress, and sit. If it is the very first meeting for you in Germany or in a particular company and you are unsure about
in-house procedures, do not hesitate to ask your host in private what you should expect or do. Do not think that this
would put your host in any uncomfortable or awkward position; neither should you yourself feel embarrassed about
having to ask. Germans are very straightforward and direct, especially in the business environment. It is part of their
normal communication behavior for someone to openly ask for clarification. This is to prevent complications later
when it is revealed by accident that someone had not understood instructions or expectations.
The German side will arrive at the meeting well-informed, and will expect the same from you. Even at initial meetings
where, in your culture, you may spend most of the time getting acquainted and building a personal relationship
between you and a potential business partner, expect the Germans to address issues, problems and facts through
very technical communication behavior. If this is not your intention in the initial meetings, make a point of clarifying
your intentions and expectations beforehand, so that both sides are aware of the other side's expectations and likely
communication behavior.
Because Germans are schedule-oriented for a most efficient management of business time, expect their business
communication behavior to be very agenda-based. Germans tend to be intensely analytical thinkers, requiring lots of
facts and examples from the other side to back up their position. Objective facts are the basis for truth in German
business culture, and legalistic, rational reasoning is the cornerstone of business negotiations and communication.
Ultimately, personal feelings and relationships cannot be relevant to business negotiations, as this can compromise
the fairness or integrity of the deal.
Contracts, therefore, if not holy, are certainly final after signing. Maneuvering for further concessions is not possible,
unless both sides agree on it. Failure to honor the terms and conditions of a signed contract can lead to legal action
taken against the partner. Businesspeople from cultures that traditionally regard contracts as mere “statements of
intent” which later respond to the realities and nature of the partners' relationship should not expect German
enterprises to be able to adapt too much to this way of thinking. Attempts to continue negotiations or revise fixed
terms will create distrust and suspicion and may be grounds to terminate the agreement.
Reactions from your counterpart(s)

German businesspeople tend to be traditionally cautious of new ideas and concepts. Institutional change comes very
slowly and often quite reluctantly. Therefore, German businesspeople do not respond as much to the “sell” as North
Americans, Australians and Spaniards, which are typically “high risk-taking” cultures. Tone down the “hype” and
provide lots of logical argumentation and concrete examples to back up your proposal based on much more facts and
data than you would use in your home culture.
Similarly, flexibility and spontaneity are not prominent traits in German business culture. The bigger and older the
institution, the more slow-moving internal management will tend to be. Risk-taking, or challenging rules and
traditional authority are not considered desirable, partly because of institutional hierarchy, but also, why change
something that has proven itself through time?
Detailed planning has enormous value in German culture and is a principal characteristic of German business co-
operation. This can turn out to be a smooth marriage between partners or lead to one partner feeling hen-pecked by
the other. Again, as with gift giving [see above], all cultures rely on exchanging and clarifying details to move a
project forward. It is rather a question of how much detail at what point. Therefore, as with all points where priorities
and technical expectations differ significantly between parties, it is essential that both sides do their homework
beforehand and perhaps schedule a few informal initial mini-meetings to address these issues and set some basic
ground rules that everyone can agree on.
Preparation
Having said all that ensure you have plenty of data and other empirical evidence to support your proposals and
arguments. If you are conducting the meeting in German, keep the language simple and direct. Even when you think
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you sound much more direct than you would ever be in your own native language, keep in mind that this will not likely
be the case for German ears. [Note that American business English tends to be very direct, and therefore may not
differ much in tone from the general usage of German.] In fact, too much diplomatic indirectness will be confusing
and irritating for Germans and can give the impression of insincerity and beating around the bush. Exaggerated and
overly-dramatic communication styles can also inspire distrust and caution.
When you are preparing promotional or presentation material, be aware that German businesspeople are traditionally
less impressed by glitzy advertising, illustrations, and memorable slogans. Brochures aimed at the German market
are often more serious in tone, provide substantially more technical data, and make claims that can be proven by
hard facts and examples. Do not worry about producing a brochure that seems lengthy or tedious; if the information
is pertinent, especially for a technical product, your German counterparts will be inclined to read the whole thing.
Moreover, they will expect your product to conform exactly to the description you have given.
Germans will sometimes look for deficiencies in your products or services and will quite openly draw your attention to
them if they in any way do not correspond to your claims. This is one of the toughest aspects of German
communication behavior you will encounter, in personal or professional contact with Germans. This form of direct
disagreement and criticism is possible in social interactions, not because people don't feel uncomfortable when they
hear it, but because such a statement is based on objective, impersonal truths. Ultimately, the value lies in pointing
out a mistake to someone so that it can be corrected. This is a characteristic “low context” communication behavior
that works because it is based on isolating and clarifying objective facts.
“No”, “I can't”, “This is impossible” …

Similarly, Germans have no problems saying “no”, “I can't”, or “This is impossible” if that is what they mean. If a rule
says something cannot be done, or if the person doesn't eat a certain type of food, he or she will likely say so--not
due to any intended insensitivity or discourtesy toward the other's feelings, but as a simple statement of fact. In the
event, even if you may feel uncomfortable, keep to the facts, be prepared to apologize [but not excessively!] for any
errors [apparent or mistakenly perceived], and be in a position to provide a very plausible explanation or solution.
Interestingly enough, having said all that, Germans can be quite sensitive to criticism themselves. As theirs is a more
individualist-oriented culture, they are more sensitive to their own public “face”. Therefore, you should be especially
aware of unintentionally saying or doing anything to embarrass them publicly.
Practice diplomacy whenever you can, even if the other party is not prepared to or in a position to do it themselves.
Successful and effective diplomacy is predicated on seizing the initiative, taking on the burden to create the most
productive environment conducive to a long-term relationship, regardless of how skilled or unskilled the other is in
contributing to that relationship.
Other intricacies
German businesspeople will not make concessions easily. They will, however, look for common ground and this is
your best route to making progress when negotiations reach an impasse. Be warned that any attempts to be
aggressive and confrontational with a sizeable German company are usually counterproductive.
While Germans generally prefer to maintain an air of formality, they can become very emotional if their sense of order
and routine becomes challenged. East Asians, for example, whose public behavior is far more strictly bound by
etiquette of “correct behavior” should be prepared for Germans [and generally Westerners] to show less restraint in
revealing their personal mood and emotions in public.
Germans, generally, are very private people. Therefore, do not discuss personal matters during business
negotiations. Nonetheless, despite their value of keeping business and private relations separate, it is not at all
impossible to cultivate relationships on more personal terms with your business partner. Simply realize that Germans
need more time to form relationships on a personal level.
Interruptions are also quite common if the other person has the feeling you are getting off topic. Persons from highly
relationship-oriented cultures, where emotional comfort and the preservation of “face” has priority over truth-based
issues, must therefore be careful of being “run over” in meetings and discussions with fact-oriented communicators.
Typically, the former is conditioned to “give way” for the sake of group harmony, while the latter is focused on the
logic and integrity of the facts of an argument and feels no restraint in carrying out his or her point.
Since interruptions are effective tactics for being heard in a discussion, Germans will often continue to speak, or
continue to speak louder in order to avoid being interrupted by someone else. In such cases, one continues to speak
until the other simply gives way.
In German culture, rules of any kind are meant to be taken seriously. Moreover, if you break the rules, you will be
reprimanded. You will have to make an effort to become sensitive to the implicit and explicit rules that shape this
society.
Wrapping up a negotiation/discussion
Decision-making in German business culture is slow, protracted, and every detail relating to your proposal will be
painstakingly examined. Therefore, do not expect substantial decisions to be made spontaneously at the table.
However, once a decision is finally made, it is extremely difficult to change.
At the end of a meeting or presentation, Germans often signal their approval or thanks by gently rapping their
knuckles on the tabletop instead of applauding.
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Living in Germany
When you first arrive, it’s tempting to just go out and explore. Do that, but don’t forget there’s a whole pile of
paperwork to do too.
Renting a Home
Whether you prefer to live in the inner-city or at the edges of town, in a warehouse or a farmhouse, Germany offers a
remarkable range of housing possibilities. But wherever your little piece of heaven is, the rules of the German renting
game are essentially the same. A protracted period of economic stagnation means that rents across the country have
remained relatively stable.
But as a rule, you'll find that cities such as Frankfurt, Munich, Hamburg and Cologne are more expensive than Berlin.
Indeed, it is still possible to find in old style apartment in Berlin (with all mod cons) for what you end up paying for a
much smaller shoebox in a less cheerful, new building in another city.
Getting Started
Decide early on what renting route you want to take. Do you want take the “Makler” (estate agent) route and face
having to fork out vast sums of money in advance? A Maklergebühr (agent’s fee) can mean paying out at least two
months rent (excl. VAT) before you even move in — not including two, or in some cases three, months’ security
deposit. It’s OK if your firm is paying, but otherwise the fee can be quite a shock to the system, especially as once
you have handed it over the Makler tends to melt away very quickly and take no further interest in your problems.
The Hausverwaltung, normally a different company to the Makler bureau, is the entity that manages the property and
the one you will end up dealing with. If you are planning a briefer time in the city, you could try the network of
Mitwohnzentrale, which keep listings of WG (Wohngemeinschaft - shared housing) and apartments for sub-letting.
The appeal of these is that they are usually fully furnished. The down side is that you will have to pay a fee,
sometimes hefty, in advance.
Otherwise, places to rent are advertised in newspapers and other key city publications. Fronting up for advertised
apartments in popular parts of the city, though, could mean you’ll find yourself facing stiff competition from a cast of
thousands who have also turned up. Competition is particularly tough for small-to-medium sized apartments. One of
the best ways to find an apartment is to place an advertisement yourself in one of the main newspapers, setting out
what you are after. Many Germans do this.
Some landlords prefer to find tenants this way because it means they can avoid dealing with a deluge of inquiries;
they can choose who they want to speak to in advance. Non-Germans can (emphasis is on ‘can’) be attractive to
landlords, as they likely won’t be around forever and the property can be put back on the market soon at a higher
rent.
If you’re not planning to choose a Wohngemeinschaft, be aware that some landlords or agents will ask for your
Polizeiliche Anmeldung (police registration). Once you have expressed an interest in a place, you will normally be
asked to fill in a questionnaire (or Fragebogen) giving information about yourself (Selbstauskunft).
The questions cover things like income, marital status and number of children, but they can be quite intrusive, asking
things like whether you are pregnant, have a criminal record or even — believe it or not — belong to a political party.
What you’ll Get

Rents are either “Kaltmiete” (cold rent), meaning net rent, or Warmmiete (warm rent), which includes utilities such as
heating and sometimes cable TV. There’s more furnished accommodation around than there used to be, but most
places contain nothing — no light fittings, curtains, refrigerators or, in extreme cases, floor coverings or kitchen! This
is because Germans tend to rent and not stay long.
The Lease
It could be a good idea to have a lawyer or German-speaking friend take you through the lease before you sign it.
German leases are not universal and can include all sorts of surprises. In particular, watch out for the dreaded
Staffelmiete clause, which means that rent automatically increases each year by a certain percentage. This can be
quite steep, so what seems like a bargain could turn expensive after a few years.
All sorts of other things can be tucked away in a lease, such as a requirement that you put a metal trap in the sink to
catch food, or disconnect the water supply to balcony taps in winter. If you don’t and the pipe bursts, you could owe
damages. Leases can also require you to do things when you leave, like taking down the funky wallpaper and
painting over the murals to return the place to how it was when you moved in. The duties can depend on just how
long it is that you’ve had the flat.
The lease will also set out how much notice you have to give before moving out, which also depends on how long
you have lived there.
Register With the Police

Registering with the police is one of the first things you have to do following your arrival in Germany. Getting a
‘polizeiliche Anmeldebestätigung’ requires a visit to the local registration office (‘Einwohnermeldeamt/Meldestelle’)
that is normally part of the local police station or town hall (‘Rathaus’).
Registering with the police is often something that people from countries with somewhat dubious police records
prefer not to get involved with. But the law says you must register if you intend to stay for more than three months.
You should do so within seven days of arrival in Germany, or at least once you have accommodation.
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All residents, Germans and non-Germans, must register when they move to a new town - failure could mean a fine.
You can normally track down your local Meldestelle via the internet: search for the name of the area you live in
combined with the word ‘Landeseinwohneramt’.
Waiting Game
Depending on where you apply, you can face a long wait sitting in a less-than-cheerful office until you are called forth
to present your papers. If you’re living in a crowded city area, planning ahead can help. Work out when you can go,
and drop by the office beforehand to see what time it opens. It's best to get there early.
Upon completion, you will be presented with a polizeiliche Anmeldebestätigung. Considering the number of times the
authorities seem (at least initially) to ask to see the Anmeldebestätigung, it's not a bad idea to carry it, or a photocopy
of it, with you at all times.
What You Need To Bring

Fairly obviously, you will need to bring a passport and a lease or rental agreement. A registration form
(‘Anmeldungsformular’) is available free at the Meldestelle. In some parts of the country you can buy one for about
EUR 1 in stationery shops.
When To An-, Um- Or Abmelden

Once you decide it is time to move on, you must go back to the Meldestelle to go through the job of being
abgemeldet’ (deregistered). Some offices allow you to send your Abmeldung back through the post, so you don't
have to endure another long stay in the Meldestelle waiting room. But should you decide to move to another part of
the same city, you will need to ‘ummelden’ (register a change of address) — and to bring the evidence that you have
been umgemeldet when you register at your new Meldestelle.
Getting Your Permit – ‘Aufenthaltserlaubnis’

After you register and secure a polizeiliche Anmeldebestätigung comes the hard bit: arranging your
Aufenthaltsgenehmigung or ‘Aufenthaltserlaubnis’ (residence permit). This normally means visiting the
‘Ausländerbehörde’ (authority for foreigners). If a relocation firm is arranging your entire move to Germany or you are
coming with a company which is taking charge of the move for you, then you might be lucky enough to find that
someone else will take care of the visit to the Ausländerbehörde. If not, you have three months after your arrival in
Germany to apply for a residence permit, so there is some scope for organizing for the bureaucratic joys ahead.
As a step towards making the process more user-friendly, many Ausländerbehörden and Landeseinwohnerämter are
making use of the internet. In addition to setting out general information about their services, the offices offer key
forms online for downloading and filling out in advance. The easiest way to find your local Ausländerbehörde is to
look up your city's official website and find the Landeseinwohneramt. When you get to the building, look out for the
‘Abteilung Ausländerangelegenheiten’ (department for foreigners' matters).
What You Need To Bring

• Passport
• Two passport photos
• Evidence of purpose of stay — for example, employment contract or university enrolment record
• Evidence of support — for example, employment contract, university enrolment record, evidence of earnings or
bank statement
• Evidence of health insurance (if not provided by your employer)
• Polizeiliche Anmeldebestätigung
What it Costs
Before you make the journey to the local Ausländerbehörde, it is worth your while to ring up first and check on the
latest details. Usually someone will ask you which country you come from and you will be switched through to the
appropriate office.
You should check on the current costs and opening times. It's also advisable to go through the list of things you will
need for the Aufenthaltsgenehmigung. In some circumstances you can even make an appointment. Those from EU
nations are not charged for an Aufenthaltsgenehmigung, but for those from non-EU countries it will cost about EUR
50 for the first application and EUR 25 for each extension. An unlimited residence permit (‘unbefristete
Aufenthaltserlaubnis’) costs about EUR 60.
How Long Is It Valid?

An Aufenthaltserlaubnis is usually granted for two years; this can vary depending on nationality. A provisional permit,
valid for up to three months, can be granted while you arrange paperwork (health insurance and employment
documents). After five years you can apply for an unlimited residence permit.
Note also that under the general heading of Aufenthaltserlaubnis or Aufenthaltsgenehmigung there are several
subcategories. One is the Aufenthaltsbewilligung, for non-EU members staying in Germany for a limited period.
There are also the Aufenthaltsbefugnis, for refugees, and the Aufenthaltsberechtigung, a permanent permit for non-
EU citizens.
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Contact the Utilities

Connecting to utilities in Germany is a reasonably straightforward procedure. For most people, this will largely be
handled by the ‘Hausverwaltung’ (building management company). But you’ll have to arrange your electricity
connection yourself.
When you sign the lease for your new home, the Hausverwaltung representative should give you a form to fill in for
your local electricity company. Electricity companies are local or regional and have different rules for signing up
customers; some may require that you produce ID such as a passport.
So-called ‘warm rent’ includes ‘Nebenkosten’ such as heating, water, and rubbish collection and building electricity.
In some cities it can include telephone, cable TV and your contribution to the cost of operating the building's lift and
‘Hausmeister/in’ (concierge). ‘Cold rent’ is basic rent exclusive of utilities. Whichever you have, any problems you
encounter with services like water or heating will generally be taken care of by either the Hausverwaltung or the
Hausmeister/in — even if you own the property.
Since the liberalization of the European energy market in 1998, private households in Germany have been able to
check the rates offered by different utility companies and select the one which offers the best price. It pays to shop
around; the websites www.verivox.de and www.warentest.de might be helpful.
Rubbish and Recycling

Nobody recycles like the Germans. Over the past decade or so, Germany has introduced comprehensive recycling
rules that provide for a series of sorting bins in every apartment building, contributing to a near-daily ritual of
separating items for recycling.
Product packaging can be removed and left at retail outlets, meaning that German industry has to take back and
dispose of its own packaging and used products, which tends to reduce excess packaging at the source.
Germany also has tough rules for non-recyclable drink containers. A deposit has always been payable on beer and
milk sold in glass bottles, but retailers are required to charge a deposit on cans and so-called one-way bottles, such
as plastic ones that contain mineral water and soft drinks.
GEZ - Television
The vast majority of German households have cable television, which, combined with the public and commercial
stations, means you have a choice of about 30 channels. If you want more, including access to many national
European TV stations, then there is also satellite. TV and radio owners in Germany have to pay a monthly fee (Refer
www.GEZ.de for actual prices) to help meet the cost of operating the public stations.
Cable operators are in general regionally based and access is usually arranged through the firm managing your
apartment. The normal practice is that the cost of the cable TV service will be included as part of your 'Nebenkosten'
(additional costs) which are added onto the monthly rent for the apartment.
Open a Bank Account

It is normally relatively swift and easy to open a bank account (regular or online) in Germany.
Let's start with the basics: the big four German-owned banks are Deutsche Bank, Hypovereinsbank (HVB), Dresdner
Bank, and Commerzbank. As well there are the Sparkassen (savings banks) and the Postbank (operated by the Post
Office). There are also a number of foreign banks, including Citibank, SEB etc., operating in Germany.
Expats may also find it is convenient for them to open an offshore bank or investment account. For example, many
big British high street banks offer offshore services along with banks in Switzerland. The conditions for opening
offshore or non-resident accounts vary considerably; in particular, many institutions require a minimum opening
balance. Charges for offshore or non-resident accounts can also be quite hefty.
You may also find that you face additional charges if the account balance falls below a certain amount. In most
cases, however, it is possible to use the accounts for making regular payments. The services, charges and means of
access to the account can also vary depending on what currency the account is in. While some institutions will
provide you with both a cash card and a credit card to access the account, others might offer you only a credit card
as they don't see the account as being set up to be used on a daily basis. So it also pays to shop around for offshore
banking services.
Before moving to Germany it is advisable to check up whether your home bank has a link to Germany, which can
help you to establish your bona fides with the German bank and to streamline the process of opening an account in
Germany. But even if this is the case, you will probably need to go through certain steps once you arrive in Germany
before the German bank will agree to activate your account.
Once you have selected a bank in Germany you should also check whether it has cooperative arrangements with
banks in other nations. This means that when you are in another country you can withdraw funds from your German
account without incurring any costs.
Residency Permits Required

In most cases it is impossible to just turn in off the street and set up an account - you will first have to present a batch
of paper before they will agree to draw you into their fold. The key pieces of paper of course being: your Polizeiliche
Anmeldebestaetigung (see How to get a Residence Permit) to prove that you reside in Germany, and your passport.
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Some banks may allow you to open an account without a polizeiliche Anmeldebestaetigung, but they are unlikely to
allow you to set up standing orders or to arrange credit. If you are a student you will need additional proof of your
student status. As a student, many banks will not charge you fees, so it is wise to check before you sign up with
them.
You will need an EC (cash card) to withdraw cash from the ‘Geldautomaten’ (automatic teller machines) and to
operate the bank's other customer service machines. Most German banks use the Maestro card system. You can
also use your cash card to buy things from shops and other businesses.
Credit Cards
If you apply for a credit card in Germany, you will probably find that the amount you have run-up is deducted form
your account automatically each month. After all, Germany still is very much a cash-based society, as it has been
since the traumas of the rampant inflation of the 1920s. But the credit card revolution has been slowly taking hold in
the country, with a range of entities from the railways through to department stories offering credit cards. Don't be
surprised, though, if small restaurants or shops refuse to accept credit cards.
How to Operate Your Account

If you are receiving a regular income in Germany, you will need to open a 'Girokonto' (current account). You will
probably have to supply your employer with your account number and 'Bankleitzahl' (sort code) so that your salary
can go directly into your account.
You will also need to know your IBAN number and swift code. Every account in the European Union's 25 member
states should have an IBAN number. This is aimed at facilitating international payments in Europe. Consequently, an
IBAN and sometimes swift code is important for money that is being sent from an employer based in another EU
country.
If you want to operate multiple accounts then you should ask your bank what is the cheapest way to do this; it might
be as a system of sub-accounts connected to your main Girokonto. You may have to set up a ‘Dauerauftrag’
(standing order) to pay regular bills such as rent, telephone, electricity or to pay off a loan.
To set up a standing order, you need to give your bank the account number and sorting code of the account a
payment is to be made to, as well the name of the recipient and the address of the recipient's bank. The payment is
made via an 'Ueberweisung' (transfer). This is the most common way for paying bills. Paying bills by cheque or credit
card is very unusual, so one early banking lesson - whether you intend to do your banking over the counter or online
- is to get up to speed with the 'Ueberweisung' form.
There is one small point that's important to remember when filling in forms and writing numbers in Germany. Always
reverse the usual Anglo-US conventions for points and commas. Thus what you might write as EUR 2,500.00
appears in German as EUR 2.500,00. The same holds in spoken German - for example, 'three comma five percent.'
Banking Blues
The German banking system is emerging from an era of rigorous cost-cutting, which has meant, among other things,
that many banks are scaling back the number of local branches they operate. One thing this means is that when you
open your account, you might find that you are encouraged (to put it mildly) to set up an online banking account too,
or to use the customer service machines or the bank's telephone banking services for all your banking business
rather than deal with a real person at the counter. To use telephone banking you will also need a special code from
the bank. You can set up an online account with online banking software.
Healthcare system
Premiums
Up until now Germany's once generous welfare state provided the country with largely comprehensive healthcare
services, including spa treatments and taxi bills paid by insurers. But health premiums have jumped from 11 percent
of gross salary in 1977 to more than 14 percent, with only the Swiss and the Americans paying more than the
Germans for healthcare. The aim of the new reformed German health service is to share the pain of reform, with
Germans forced to pay more out of their own pockets for medical care and the government hoping that the lower
premiums will help to spur private consumption in the nation.
As a sign that the German health reform debate still has some way to go, the government has also been considering
the introduction of a so-called citizen insurance scheme which could require every citizen to make contributions to the
nation's public health insurance groups. This includes many public sector employees and the self-employed who at
present are able to take out private health cover. Private health insurance is also popular with expats living in
Germany for a specific period.
Employer Responsibility
In general, those working for German companies will find that their employers arrange their health insurance cover.
Employers and employees each pay half of a member's premiums. Since the start of 2004 premiums have dropped
to an average of 14.2 percent of employee's income. This should be reduced next year to 13.6 percent and in 2006 to
12.15 percent.
From July 2005, members of German statutory health funds are also required to pay extra for some dental work such
as bridges, crowns and replacement teeth, as well as sick pay. This will involve a special contribution of 0.9 percent
of their gross salary. From that, 0.4 percent will be for the extra dental work and 0.5 percent for sick pay.
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At the start of 2005, contributions by childless people over the age of 23 to nursing- care insurance will increase to
1.1 per cent. Many doctors in Germany offer both conventional medicine and alternative forms of treatment such as
homeopathy, and you maybe asked which treatment you prefer. If you have any major dental work to be done you
should first ask your dentist for a quote and then check it out with your insurer.
All surgeries will have set hours for visiting (Sprechstunden). For those who are members of public health funds you
simply turn up during the allotted times and present your insurance cards.
Privately insured patients should ring in advance as in most cases they will be given a special appointment and be
able to jump the (often) long queue in the waiting room, although in some busy big city general practices this does
not apply. You can go straight to a specialist in Germany, but sometimes it is better to first see your GP as they
normally have a stable of specialists they work with. In addition, many health funds have rules for payment for
specialist services. This is especially the case with private health insurance cover.
Either way, you should always take your health insurance card with you, including if you have to go the hospital. In
general, doctors' bills are sent to your home address and paid via your bank account. You must keep a copy of all
bills (both visits to the doctors and prescriptions) for sending on to your health insurer.
Pharmacies tend to follow the old-fashioned Germany trading hours and are open between about 9am and 6pm. A
list of late-night of pharmacies in your neighborhood is normally in the front window of your local chemist. Chemists in
areas such as airports, busy shopping centers and railway or underground stations are often open until at least 8pm.
Medical Surcharge
Patients insured with statutory funds will be required to make a quarterly payment of EUR 10 when they visit a
doctor. Private patients are exempt.
Hospital Care
This costs EUR 10 a day for a maximum of 28 days per year. Those receiving outpatient care and house visits will
face an additional charge of EUR 10 plus 10 percent of the overall medical bill.
Sick Pay
From 2006 employers will be required to pay all salaries for workers after the seventh week of sick leave without
receiving any assistance from the insurance companies. Workers will be required to pay a supplementary premium of
0.5 percent. Sick pay up to the sixth week of illness is covered by health insurance.
Cuts in Claims
Patients will no longer be able to make claims for taxi rides to out-patient treatment. Claims for sterilization for non-
medical related reasons has also been removed, with financial assistance for spectacles and other sight aids only
available for patients under 18 years and for the severely handicapped. Death benefits and cash payments when a
new baby is born are to be dropped.
Preventive Action
Patients undertaking preventive care will be rewarded with a rebate from health funds. Out-patient treatment within
the EU is covered, but for a hospital stay approval from the insurer is required.
Dental Care
From July 2005, members of German statutory health funds are required to pay extra for some dental work such as
bridges, crowns and replacement teeth. This will involve a special contribution of 0.4 percent of their gross salary.
Obtaining a Driving License

If you are a citizen of a European Union or European Economic Area member state your driving license is valid in
Germany. Others essentially have six months to get a German license based on their home country license. There
are special arrangements for certain US states and some nations, such as Canada; check out the rules for your state
or country. Americans from some states are exempt from both the practical and the written test when applying for a
German license. Others can swap their home license for a German one or can get one just by passing a written test.
In a bid to keep on the right side of US business, some German states, such as Hamburg, have radically simplified
the procedure for Americans to obtain a driving license. Under certain conditions, they can apply to automatically
convert their US license.
Those from some nations, though, such as Australia, New Zealand and India, will probably have to take a driving test
to get a German license. Those forced to apply for a German driving license often opt to go through a driving school
(‘Fahrschule’). Costs vary, but tuition is often around EUR 500. Many schools have simplified courses for
experienced drivers, which cost less than beginning ones; shop around. A word of warning however - if you don't
obtain a German license within three years after gaining residency, you will then have to take as many behind-the-
wheel and theory lessons as a first-time applicant is forced to endure.
Checklist
When applying for a license, you are likely to be asked to bring the following:
• Your home license with an official German translation
• A statement by the applicant that the license is still valid
• An official ID such as a passport
• Your residency registration from the Einwohnermeldeamt
• A recent photograph (35x45mm)
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• Proof of how long you have been a resident in Germany (normally available from the Ausländerbehorde)
• The results of a recent vision test
• The name of the Fahrschule you intend to go to, if applicable.
But check before you go; requirements can vary between states.
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Doni John Page 1 of 21 Thursday, 29 December 2005

Doni John Page 2 of 21 Thursday, 29 December 2005

Other intricacies ................................................................................................................................................. 15

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Germany - Country Profile

Culture of German Management

Doni John Page 4 of 21 Thursday, 29 December 2005

German Society & Culture

The German Home

Doni John Page 5 of 21 Thursday, 29 December 2005

Doni John Page 6 of 21 Thursday, 29 December 2005

Communication, Conversation, Getting together…

Doni John Page 7 of 21 Thursday, 29 December 2005

Welcome Topics of Conversation

Some basic expressions

Doni John Page 8 of 21 Thursday, 29 December 2005

When preparing your presentation, keep the following pointers in mind:

Doni John Page 9 of 21 Thursday, 29 December 2005

Do not do the following for a meeting:

Timelines & Punctuality

Doni John Page 10 of 21 Thursday, 29 December 2005

Soft skills or Behavior

Doni John Page 11 of 21 Thursday, 29 December 2005

Ladies at the Dinner Table

Some more guidelines on entertaining for business success

Doni John Page 12 of 21 Thursday, 29 December 2005

Doni John Page 13 of 21 Thursday, 29 December 2005

Negotiating, Making a deal…

Reactions from your counterpart(s)

Doni John Page 14 of 21 Thursday, 29 December 2005

“No”, “I can't”, “This is impossible” …

Doni John Page 15 of 21 Thursday, 29 December 2005

What you’ll Get

Register With the Police

Doni John Page 16 of 21 Thursday, 29 December 2005

What You Need To Bring

When To An-, Um- Or Abmelden

Getting Your Permit – ‘Aufenthaltserlaubnis’

What You Need To Bring

How Long Is It Valid?

Doni John Page 17 of 21 Thursday, 29 December 2005

Contact the Utilities

Rubbish and Recycling

Open a Bank Account

Residency Permits Required

Doni John Page 18 of 21 Thursday, 29 December 2005

How to Operate Your Account

Doni John Page 19 of 21 Thursday, 29 December 2005

Obtaining a Driving License

Doni John Page 20 of 21 Thursday, 29 December 2005

Doni John Page 21 of 21 Thursday, 29 December 2005

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