AUSTRIA Educate the Expatriate GMBA 5885 – CrossCultural Advanced Seminar Richa Bajwa – Ludovic Bourgoin December 14th, 2010
AUSTRIA Educate the Expatriate
GMBA 5885 – Cross-‐Cultural Advanced Seminar
Richa Bajwa – Ludovic Bourgoin December 14th, 2010
COUNTRY FACTS
COUNTRY FACTS Population: 8 million
COUNTRY FACTS Population: 8 million
COUNTRY FACTS
• Official name: Republic of Austria • Capital: Vienna • Official language: Austrian German
• Government: Federal Parliamentary Republic
• Independance: Post-‐WWII in 1955
• Ethnic groups: » Austrians 92% » Former Yougoslavs 5% » Turks 2% » German 1%
Population: 8 million
COUNTRY FACTS
• DeclaraCon of Neutrality – Declaring the country neutral – Enacted on 26 of October 1955 – Part of the consVtuVon of Austria
COUNTRY FACTS
• FORMALLY declaraVon promulgated voluntarily by the Republic of Austria.
• POLITICALLY was the direct consequence of the allied occupaVon between 1945 and 1955:
PEOPLE FACTS
Do you know some Austrian celebrity…?
PEOPLE FACTS
Do you know some Austrian celebrity…?
PEOPLE FACTS
Do you know some Austrian celebrity…?
PEOPLE FACTS
• ConservaVsm » Austrians are prudent and moderate
» Social invitaVons must be made in advance
• The Austrian home » Austrians take much pride in their homes » Only close friends and relaVves are invited into the house » Neightboorly eVque]e has its rules (cleaned corridors…)
HOFSTEDE’s
1. Low power distance • Austrian subway system
2. IndividualisVc society • Desire for personnal freedom
• Preference for personal well-‐being
3. Masculinity 79 • AsserVve desire for control
4. High uncertainty avoidance
Cultural dimensions
NAMES & GREETINGS
• Shake hands women 1st
• Hand-‐kiss to women Don’t if you’re not Austrian!
Foreign Minister Karel Scharzenberg from Czech Republic, kisses the hand of Autrian Foreifn Minister Ursula Plassnik, 2008
COMMUNICATION STYLE
• Official language is German » Different pronunciaVon » Different vocabulary
= Problem for foreigners who were taught proper german
Speak some English, but interpreter recommended
COMMUNICATION STYLE
• Use of English » Make it short
» Simple phrase
» Speak slowly
• DiplomaVc style preferred
• Saying NO is ok
• Rare use of body language
RELIGION
DRESS & APPEARANCE
Austrian traditional clothes
DRESS & APPEARANCE
• Appearances ma]er » PresentaVon and dressing are very important
» Clothes are never ostentaVous » SomeVmes strict protocol for dressing apprpriately
» Some high level events may have dress code
» Women dress elegantly in public/at work
ENTERTAINING
• Family • Friends at the pub!
• Watching television
• Going to the restaurant
• Sport: Ski, bicycle ride…
• Expect everyone to speak English • Expect to find diet drinks and non-‐smoking areas
• Make noise amer 10pm
• Give perfume or clothing as gims
• Kiss the hand of an Austrian woman unless you are Austrian!
• Be late!
DON’T…
GOVERNMENT & BUSINESS
• Member of EU
• Austrian Business Agency (ABA) Supports & provides incenVves for foreign investors
Free movement of goods, people and capital
WORK ENVIRONMENT
• Formal dress code for business » Navy blue or black suits » NeckVes » Dresses accepted for women
» Polished shoes
• First impression ma]ers! Significant impact on others opinion
WOMEN IN BUSINESS
• Hard to get similar posiVons/income as men
• AccepVng old-‐fashioned courtesies
• Too much confidence might appear aggressive! Reminder: High Masculinity!
DECISION MAKING
• Hierarchy People expect to to work with clear lines of authority!
• Methodical process Conducted with precision » Takes much Vme » Requires paVence
• Change is hard to implement Reminder: high level of uncertainty avoidance
BUILDING RELATIONSHIPS
• Not an essenVal aspect for iniVal business interacVons know you be]er gradually
• Business relaVons exist between companies as well as between
individuals.
NEGOTIATIONS & MEETINGS
• NegoVaVon is a joint problem-‐solving process in Austria
buyer being superior
• NegoVaVon style is cooperaVve people may be unwilling to agree with compromises • work through a list of objecVves, bargaining for each item separately
they do not revisit aspects already discussed
• Be calm and paVent avoid open confrontaVon
TIME…
• Pursue acVons and goals systemaVcally
• Punctuality is appreciated call with an explanaVon for delay
• Do not cancel a meeVng at last minute. • No small talk before the meeVng gets to business ma]ers right away
THANK You ! & Happy Christmas Holidays ;)
home made Christmas Crib!