Cultural Diversity in Business: A Comparison between Germany and Slovenia

Contents

1  Introduction  1MMMMMMM2

2  Slovenia in general  2

3  Germany in general  3

  Business Cultures in Germany and Slovenia  3MMMMMMM13

4  NA  

4.1  Ethnocentrism versus Polycentrism  3MMMMMMM4

4.2  Power Distance  4MMMMMMM5

4.3  Uncertainty Avoidance  5MMMMMMM6

4.4  Individualism versus Communitarianism  6MMMMMMM7

4.5  Low-context versus High-context cultures  7MMMMMMM8

4.6  Long-term versus Short-term orientation  8MMMMMMM9

4.7  Universalism versus Particularism  9MMMMMMM10

4.8  Neutral versus Emotional  10MMMMMMM11

4.9  Specific versus Diffuse  11MMMMMMM12

4.10  Achieved status versus Ascribed status  12MMMMMMM13

5  Conclusion  13MMMMMMM15

  Bibliography NA  

Appendix NA  NA  

  I Slovenia s History  

  II Definitions  

  Word count:  1,643

1 Introduction In times of globalisation the aspects of cultural diversity and cross cultural communication become more and more important. People have the possibility to travel across continents, meetings are organised all around the world. Therefore the knowledge of at least one foreign language is definitely an essential skill one should have. But nevertheless just translating a word or a sentence from one language into another does not guarantee a successful course of negotiation. According to Mattock (2003) the actual talk is just the tip of the iceberg.

(Mattock, 2003)

Instead the major and thus bottom layer is culture. (Mattock, 2003) Therefore international managers should be aware that transcultural competence can only be achieved by ‘being aware of cultural differences, respecting them and ultimately reconciling them’ (Trompenaars and Hampden-Turner, 1997).

The first part of this essay will present general information about Slovenia and Germany. It will then highlight the major characteristics and differences between the business cultures of the two countries © Maike Moellemann University of Brigthon Tourism Management 30.01.2004

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concentrating on the dimensions introduced by Trompenaars and Hofstede. (For definitions of culture and the dimensions see Appendix) The conclusion will highlight the major differences between the two business cultures and offer recommendations for German and Slovenian managers doing business with each other.

2 Slovenia in general The Republic of Slovenia is a small country of two million people situated in the heart of Central Europe. It borders to Austria, Croatia Italy and Hungary. Its capital is Ljubljana. (Lonely Planet, 2001) The main languages spoken are Slovene, Croatian, Serbian, German, English and Italian. (Lonely Planet, 2001) Slovenia is ethnically homogeneous with almost nine-tenths of the population being Slovenes (Bateman, 1997).

Slovenia was one of the republics, which emerged to become independent in 1991 out of the dissolution of the Socialist Federative Republic of Yugoslavia. It escaped without major conflicts, there was only a minor incursion into its territory by the remnants of the National Yugoslav Army. Slovenia’s independence was recognised internationally in January 1992, and since then the country has been at peace. (Bateman, 1997). For more details on history see Appendix.

© Maike Moellemann University of Brigthon Tourism Management 30.01.2004

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3 Germany in general The Federal Republic of Germany is situated in Western Europe and borders to Denmark, Poland, the Czech Republic, Austria, Switzerland, France, Luxembourg, the Netherlands and Belgium. It has about 82 million inhabitants and its capital is Berlin. (Bingham, 2001)

The main languages spoken are German and English. On October 3, 1990 the former German Democratic Republic (GDR) and the Federal Republic of Germany were reunited, a major event in German history. (Bingham, 2001)

4 Business Cultures in Germany and Slovenia 4.1 Ethnocentrism versus Polycentrism

Slovenian business people can be described as polycentric. On the one hand, they adapt to the foreign culture easily. For example they will use the foreign language even if their foreign counterpart understands the Slovenian language. Thus, many Slovenian managers are very successful in working for multinational companies in countries such as ex-Yugoslavia, Russia and Saudi-Arabia. (Damjan, 2004) On the other hand, in private conversations, Slovenian business people may be very critical of other cultural practices. However, they will be very clever in using them. (Damjan, 2004)

The approach of German business people is far more ethnocentric. They will expect foreign managers to speak German or at least English.

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Misconduct, that is a behaviour different from the German one, is likely to be understood as rudeness or an offence, e.g. many German managers are not willing to tolerate people arriving too late for a meeting. As they are monochronic, punctuality and reliability are closely related. Thus, being late implies unreliability. (Gesteland, 1999)

4.2 Power Distance

Slovenia is a very egalitarian culture. One main reason is that there was no aristocracy in Slovenian history. (Damjan, 2004) Today, because of the small population many people personally know the president, politicians and other members of the elite. People perceive themselves as more or less equal and get very upset with growing social differences in the lasting transition period. (Damjan, 2004)

In Germany the situation has changed over the years. One decade ago titles were very important as they showed the status of a person. Leaving © Maike Moellemann University of Brigthon Tourism Management 30.01.2004

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away the Dr. in front of the surname could be seriously insulting. (Gesteland, 1999) Nowadays, it is no longer specially important if someone is in lower- or upper-management and whether he carries a title or not. People perceive themselves as more equal then before. (Appelhoff, 2004)

4.3 Uncertainty Avoidance

Slovenia is characterised by a great entrepreneurial vigour. (Bateman, Milford, 1997) Nevertheless, business people in Slovenia tend to avoid risks, which is often an obstacle in their entrepreneurial growth. They have several businesses of different kinds, so at least one will survive. (Damjan, 2004)

The attitude of German business people is even more inclined towards uncertainty avoidance. In the beginning of 2000 a recession started in Germany and until now there is no end in sight. (Koettker and Moritz,

© Maike Moellemann University of Brigthon Tourism Management 30.01.2004

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2004) Thus, managers try to avoid all risks that could endanger their turnovers or businesses. (Randlesome, 1994)

4.4 Individualism versus Communitarianism

Slovenian business people tend to be very individualistic. Many entrepreneurs will try to stay independent even in obvious cases of synergy, as they are not willing to share their experience. (Damjan, 2004).

In Germany “medium-sized companies relish their obscurity. They make a point of not courting the media, because they are wary of revealing their winning formulae to potential competitors.” (Randlesome, 1994) This is true for most companies, other than family owned companies, in Germany. Managers want to be successful and try to achieve their own goals even if others have to stand aside. (Appelhoff. 2004)

© Maike Moellemann University of Brigthon Tourism Management 30.01.2004

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