Iriciuc Angela

Master EAI, grupa 1

Facts and Statistics

Location: Central Europe
Capital: Vienna
Climate: temperate; continental,
cloudy; cold winters with frequent rain
and some snow in lowlands and snow in
mountains; moderate summers with
occasional showers.
Population: 8,174,762 (July 2004 est.)
Ethnic Make-up: German 88.5%, indigenous minorities 1.5% (includes Croatians, Slovenes,
Hungarians, Czechs, Slovaks, Roma), recent immigrant groups 10% (includes Turks, Bosnians,
Serbians, Croatians) (2001).
Religions: Roman Catholic 74%, Protestant 5%, Muslim 4%, other 17%.
Government: Federal Republic.

Language in Austria
German is the official language spoken by 98% of the population as mother tongue. There are
distinct differences between the many regional dialects, and also a wide variation in the 'standard'
Hochdeutsch spoken from region to region. Slovene is an official language in the southern
province of Carinthia. Other minority languages include Croatian (0.5%) and Hungarian (0.1%).
All three languages are taught alongside German in some bilingual schools. Another minority
language is Slovak.

Austrian Society & Culture

The People
Austrians are proud of their contributions to world civilization. They see themselves as modern,
liberal and cultured. Austrians have a great love for the outdoors (i.e., walking, skiing, climbing,
etc.). Although predominantly Catholic (89%), traditional family values have been weakened by
modern life and government legislation. The rate of women working outside the home is one of
the highest in the industrialized world.
Austrian Family Values
The family forms the basis of the Austrian social structure. The family is generally small and,
due to lack of migration, generally closely knit within a certain town or village. Weekends are
generally devoted to family activities such as outdoor activities. Eating dinner together in the
evening is very much the norm. Sundays are usually bookmarked for visiting grandparents for
dinner, and/or, enjoying a hike in the country together.
1

The Austrian Home

Austrians take much pride in their homes, keeping them neat and tidy. In a formal culture such as
theirs, the home is the place where people relax and let their hair down. Only close friends and
relatives are invited into the house, so it is a place where more informal communication may
occur.
Neighbourly etiquette also has its rules that must be observed. It is imperative that common areas
such as sidewalks, pavements, corridors (in flats), and steps be kept clean at all times by all
associated with them.
Conservatism
Austrians are generally conservative people. They are prudent and moderate in their behaviour.
'Regimentation' and 'compartmentalization' are a useful ways of describing how they organise
their lives. They extend social invitations in advance of the event, and the more formal the
occasion the greater the time between the invitation and the event itself, so that they can be
certain that their guests do not have a prior engagement.
Appearances Matter!!
Presentation and dressing well are important to Austrians. Even when dressed informally, they
are neat and conservative; their clothes are never ostentatious. There is sometimes a strict
protocol for dressing appropriately in different situations: formal wear for the theatre or a
concert, and semiformal wear for better restaurants. Some high level events may have a dress
code and will turn away patrons who are not dressed properly. Most Austrian women dress up to
go shopping, since they dress elegantly, if conservatively, at all times, especially when they will
be public.

Austrian Etiquette & Customs

Meeting Etiquette
Greetings are formal.
A quick, firm handshake is the traditional greeting.
Maintain eye contact during the greeting.
Some Austrian men, particularly those who are older, may kiss the
hand of a female.
A male from another country should not kiss an Austrian woman's hand.
Women may also kiss men, but men never kiss other men.
Titles are very important and denote respect. Use a person's title and their surname until
invited to use their first name.
When entering a room, shake hands with everyone individually, including children.

Gift Giving Etiquette

In general, Austrians exchange gifts with family and close friends at
Christmas (generally Christmas Eve) and birthdays. Children receive gifts
on December 6th, the feast of St. Nicholas. Gifts are generally not
expected in business, but come prepared in case a gift is presented.
If invited to dinner at an Austrian's house, bring a small gift of
consumables such as chocolates.
If giving flowers, always give an odd number as except for 12, even numbers mean bad luck.
Do not give red carnations, lilies, or chrysanthemums.
Gifts should be nicely wrapped.
Give: desk attire, books, music, a regional or country gift. Do not give: personal gifts, gifts with
sharp edges, gifts with company logo (unless very subtle) or a very expensive gift. Gifts are
opened immediately upon receipt.
Dining Etiquette
If you are invited to an Austrian's house:
Arrive on time. Punctuality is a sign of respect.
Dress conservatively and elegantly.
In some houses you may be asked to remove your shoes, although the custom is not as
prevalent as it once was.
Watch your table manners!
Remain standing until invited to sit down. You may be
shown to a particular seat.
Table manners are Continental the fork is held in the left
hand and the knife in the right while eating.
Put your napkin on your lap as soon as you sit down.
Do not begin eating until the hostess says 'mahlzeit' or
'Guten Appetit'.
Cut as much of your food with your fork as possible,
since this compliments the cook by saying the food is
very tender.
Finish everything on your plate.
Indicate you have finished eating by laying your knife and fork parallel on your plate with
the handles facing to the right.
The host gives the first toast. Everyone lifts and clinks glasses, looks the person making the
toast in the eye and says, 'Prost!'.
An honoured guest offers a toast of thanks to the host at the end of the meal.

Background To Business in Austria

Austria is a landlocked country, set in the heart of Europe with a
population of scarcely more than eight million people. It has little
in the way of natural resources and relies heavily on its larger
neighbour Germany in both import and export terms. Yet despite
these seeming handicaps, Austrians enjoy an extremely high
standard of living and an economy which is relatively robust. This
is, in no small measure due, to the drive and application of those
million Austrians.

eight

Although the current State of Austria has only existed in its current form since 1955, the country
has a long and distinguished history. The capital, Vienna, was for centuries one of the major
centres of the European world and as the fulcrum of the Austro-Hungarian Empire was, for a
long time, a magnet for the best and the brightest amongst European Intelligentsia.

During the Cold War period, the country managed to steer an impressively neutral path between
the two competing super powers and the contacts Austrians managed to develop into the old
Soviet Bloc countries during that period now stand them in good stead when developing business
contacts in the burgeoning markets of Central and Eastern Europe.

Austria is a country with an auspicious past and a bright future. Perfectly located to take
advantage of the development and enlargement of the EU, the country has the human capital
and highly developed infrastructure needed to act as bridge between Western and Eastern
Europe.
Austria is an attractive business destination with a strong business culture of its own and has
significant strength in such distinct areas as banking and finance, precision engineering and biotechnology.

Austrian Business Structures

After the creation of the current state of Austria and
during its post-war reconstruction stage, most basic
industries were state-owned and although the level of
state involvement in industry has been radically cut back
through a series of privatisation measures, the legacy of
bureaucracy and hierarchy remain.
Thus most large Austrian organisations would tend
towards a high level of hierarchy, with companies
managed along fairly tightly defined functional lines.
The organisation chart usually reflects the reality of the structure of a business, rather than being
merely designed to impress visitors. The head of a business function will wield a great deal of
power within that business function and can seem to act in an almost autonomous manner, with
little reference to other functional heads.
Austrian business has always prided itself on the concept of Sozialpartnerschaft, or social
partnership, which promotes dialogue and co-determination in industrial relations matters.
Thus, all industries, trades and professions have specific bodies which work together to promote
and conduct good labour relations. It is, therefore, extremely important to work to develop a
strong sense of co-determination and co-operation when working with Austrian subsidiary
companies.

Austrian Management Style

As would be expected in a mainly hierarchical
business culture, managers are less consensual than
would be the case in countries where a more
inclusive, matrix-style approach is employed.
Therefore, managers can tend towards the directive
they give direct instructions to subordinates who
will, by and large, carry them out to the letter.
This also means that managers are expected to make
the decisions and would involve their colleagues in the decision-making process to a much lesser
degree than might be the case in a consensus-oriented countries such as Sweden or the
Netherlands. Managers are expected to be sector/function experts and as such should know the
answers to problems.
This directive management approach goes hand-in-hand with an almost old-fashioned sense of
politeness and courtesy. Do not imagine a tyrannical boss barking orders at frightened
5

subordinates. Everything is done with great charm and warmth. In fact 'charm' would be seen as
one of the attributes of a good manager.

Relationships & Communication

Communication can seem a little formal to those cultures who
are accustomed to using the more informal convention of
addressing colleagues by their first names within the business
environment. It is still customary in Austria to use family
names in the workplace even with quite close colleagues.
Although there is some evidence that the younger generation
are moving away from this convention towards the use of first
names, it is still probably wise to use family names with when
meeting new business colleagues - until asked to switch to first name terms.
It is not unusual to hear Austrian business people addressing each other by first names when
speaking English in a meeting and then changing immediately back to family names when the
language switches back to German.
The code of business conduct is similar in Austria to that in the rest of Europe and the USA. A
handshake at the beginning and end of a meeting is the accepted custom. Care should be taken to
shake the hand of everyone present at the meeting.
Viennese men may kiss the hand of a woman. Accept this tradition
graciously. A foreign man should not kiss the hand of an Austrian woman,
since it is not expected and may come as a shock.

First impressions are important and you will be judged on your clothing and demeanour.
Although Austrians prefer third-party introductions, they do not need a personal relationship
in order to do business.
They will be interested in any advanced university degrees you might have as well as the
amount of time your company has been in business.
Austrians show deference to people in authority, so it is imperative that they understand your
level relative to their own.
It is imperative that you exercise good manners in all your business interactions.
There is little joking or small talk in the office as they are serious and focused on
accomplishing business objectives/goals.
Communication is formal and follows strict rules of protocol.
6

Always use the formal word for you 'sie' unless invited to use the informal 'du'. Address
people by their academic title and surname.
You may be referred to simply by your surname. This is not a culture that uses first names
except with family and close friends.
Austrians are suspicious of hyperbole, promises that sound too good to be true, or
displays of emotion.
In many situations, Austrians will be direct to the point of bluntness. This is not an attempt to
be rude, it is simply indicative of their desire to move the discussion along.
Expect a great deal of written communication, both to back up decisions and to maintain a
record of discussions and outcomes.

Business Meeting Etiquette

Meetings are formal affairs and people would be
expected to arrive well-prepared. Austrians would be
classified as 'pre-planners' in terms of their
approach to meetings. It would be unprofessional to
arrive at a meeting and to start looking through the
papers as the meeting is beginning. 'Brainstorming'
type meetings might occur but it would be obvious to
all concerned that the meeting was not for decisionmaking or information exchange in advance and
everybody would 'prepare' accordingly.
Appointments are necessary and should be made 3 to 4 weeks in advance when meeting
with private companies.
You are recommended to avoid making business appointments for the months of July and August
as well as around the dates of Austrian national holidays.
Punctuality in Austria, as in Germany, is renowned throughout the world.
Make every effort to arrive for a meeting at the appointed time or, if you are a few minutes late,
make your apologies to your colleague. It is extremely rude to cancel a meeting at the last minute
and it could ruin your business relationship.
Meetings are formal
It is very important at a business meeting to indicate your colleague's title first and then his
surname. Use of first names is intended only for private meetings, after a personal relationship
has been established. Thus for example if you meet with a professor, address him as Herr
Professor Schmidt. At further meetings, you may use his title without his surname - Herr
Professor. For women, 'Frau' is used instead of 'Herr' for either single or married women.

Have back-up material and be prepared to defend everything: Austrians are meticulous
about details.
Meetings adhere to strict agendas, including starting and ending times. If you have an
agenda, it will be followed. Follow-up with a letter outlining what was agreed, what the next
steps are, and who is the responsible party.

Business Negotiation

Do not sit until invited and told where to sit. There is a rigid protocol to be followed.
Meetings adhere to strict agendas, including starting and ending times.
A small amount of getting-to-know-you conversation may take place before the business
conversation begins.
Austrians are more concerned with long-term relationships than making a quick sale.
Rank and position are important. Since most companies are relatively small, it is often quite
easy to meet with the decision- maker.
Business is conducted slowly. You will have to be patient and not appear ruffled by the
strict adherence to protocol.
Austrians are very detail-oriented and want to understand every innuendo before coming to
agreement.
Avoid confrontational behaviour or high-pressure tactics. It can work against you.

What to Wear?
Business dress is conservative and follows most European conventions. Men should wear dark
coloured, conservative business suits with white shirts. Women should wear either business suits
or conservative dresses, complimented with elegant accessories.
Business Cards
Business cards are exchanged without formal ritual. Have one side of your card translated into
German. Although not a business necessity, it demonstrates an attention to detail. Include any
advanced academic degrees or honours on your business card. If your company has been in
business for a long time, include the founding date on your card as it demonstrates stability.
Team Working
Teamwork in Austria revolves around individuals who work on tasks given to them by the team
leader. The team members would expect to be given clearly defined instructions and goals by
their manager and will then expect to be allowed to pursue those goals without too much
interference or questioning. People would not really expect their team roles to be
8

interchangeable, nor would they expect to be asked to do the tasks allocated to another team
member. Demarcation lines can be quite strong.
Cross-departmental teams can often prove very difficult to manage, as people are asked to make
decisions in a vacuum which might adversely affect their area of the hierarchy. Thus decisions
made at cross-departmental project group level are often revisited after group members have
reported back to their superiors.

Especially for Women

It is still reasonably unusual to meet women in very senior positions in locally-owned Austrian
companies. There are some sectoral exceptions to this, such as the law, but any changes that are
happening are happening relatively slowly.
Female mangers visiting Austria can, however, expect to be treated with great kindness and
professional respect even if they are surprised by the old-fashioned courtesies they are shown
by male colleagues.
Foreign women will have no problem doing business in Austria.
Lunch is the most common setting for business discussions. Women should stick to
inviting male colleagues to lunch until they get to know them on a more personal level.
Men enter restaurants before women.
Offer your hand first upon meeting or greeting a man.

Successful Entertaining in Austria

Austria does not have as strong a business entertaining culture as some other, more southern
European cultures which reflects the strong separation which is often made between work and
private life. Thus, it is fairly unusual to be taken out for dinner and even rarer to be invited to
someone's home. Most business entertaining is done over lunch usually at a good restaurant.
(Breakfast meetings are extremely rare in Austria.)
During a business meal, it is possible to talk about business, but it might be wisest to delay
introducing work related issues until the host raises the matter.
If invited out for a meal, the host will always expect to pay. Similarly, if you invite someone for a
business lunch, you will be expected to pick up the bill. In Austria, both the knife and fork are
used throughout the meal. Eating with only one hand, with the other hand placed on one's lap
9

under the table, (as is common in North America) is not considered particularly good table
etiquette.
Alcohol will usually be offered at lunch and dinner but many Austrians will refrain from
drinking at lunch time. It is probably best to take your lead from your host.
It is quite usual to tip in Austria. A tip of around 10% should be given directly to the waiter at the
end of a meal.

Top Tips 1-20

Tip 1: Due to certain historical and cultural influences, Austrian companies tend towards a
hierarchical approach to corporate structure.
Tip 2: Try to find the organisation chart of the company you are dealing with - it usually gives a
close reflection of the way in which the company is actually organised.
Tip 3: Social partnership has, for a long time, been a central tenet of the Austrian approach to
business. Co-operation and co-determination in industrial matters are of paramount importance.
Tip 4: Managers tend to be instructional and are expected to give direct instructions to
subordinates.
Tip 5: In a country which tends towards the development of specialists, managers are usually
sector-area experts. They know what they are talking about.
Tip 6: Charm and warmth are much prized characteristics and managers will strive to achieve a
'cosy' relationship with colleagues.
Tip 7: People are expected to be very well prepared for meetings - do not arrive without having
thought through the detail of the meeting in some depth.
Tip 8: If 'brainstorming' meetings are to be held, it is best to make sure everybody knows exactly
what is expected within the meeting and what the goals of the meeting are.
Tip 9: Punctuality is prized. Do not be late as this could be viewed as unprofessional behaviour.
10

Tip 10: A certain amount of small talk can be expected at the start of a meeting.
Tip 11: Do not assume that Austrians are exactly like Germans. Austria is a country with a great
sense of historiy and a unique culture.
Tip 12: Meetings will be run in a methodical fashion with the agenda, by and large, adhered to.
Try to avoid deviating from the set agenda unless it is absolutely unavoidable.
Tip 13: Meetings may be arranged early in the morning as Austrians tend to start at 8:00 am
Tip 14: In a meeting situation, avoid speaking for the sake of speaking. Speak only when you
have something relevant to say about a topic which you are knowledgeable upon.
Tip 15: Cross-departmental teams can be difficult to manage as they cut across the normal
hierarchical loyalties and lines.
Tip 16: Surnames are usually used in business circles as are academic and professional titles.
Tip 17: Try to be as direct and literal in your use of language as possible. Avoid the use of coded
language which can be confusing.
Tip 18: Although women play a less significant role at senior management level than in some
other countries, visiting female managers should have few problems and will be treated with
professional courtesy and respect.
Tip 19: Dress code still tends towards the formal and it is best to wear conservative, businessformal attire ' this applies to both men and women.
Tip 20: Most business entertaining will be done at local restaurants. It is unusual to be invited to
the home of a business colleague for a meal.

11