| Overview
& Cultural Perspective |
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Once the centre of power for the Austro-Hungarian
Empire, Austria was reduced to a small republic
after World War I. Following annexation by Nazi
Germany in 1938 Austria's status remained unclear
until it regained independence in 1955. In 1995
Austria became a member of the European Union
and in 1999 joined the EU Monetary Union.
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| Austrian character is consistently
conservative and tradition plays an important part
in their way of life from the wearing of national
costume ('Tracht') to delight in the glories of
Austrian classical music. |
| Its varying geography creates
different balances between agriculture and tourism
in the alpine areas and industry and commerce elsewhere.
Austria is a well-developed market economy closely
tied to other European economies, especially Germany.
Austria also has strong banking and insurance sectors
based on good commercial relations, especially with
central, eastern and south-eastern Europe. |
| The majority of Austrians (73%)
belong to Roman Catholic Church around 5% are Protestants.
The national language is German, even though one
should not make the mistake and fail to recognize
the clear distinction between Austrians and Germans.
Although both countries are of Germanic origin,
Austrians have never, by free will, been part of
Germany. |
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| Context & cultural awareness |
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In Austria, Business is influenced by traditions.
Status and hierarchy are a very important part
of Austrian culture. Punctuality is also one of
these important values. These characteristics
are displayed in business meetings, which are
usually very formal with a fixed agenda.
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| This traditional approach implies
a fairly inflexible systems and procedures. Teamwork
is not especially important but organization is
central to the way Austrian companies function.
One corollary of Austria's bond with tradition is
the survival of an influential class system. Hierarchies
are powerful even though they may not always be
readily apparent. |
| A potential cause of impatience
can be the slow process of decision-making because
Austrians tend to be risk-averse and make decisions
methodically and with precision. However, precisely
because responsibility for decision-making lies
only with those at the very top, it means that any
action plan is likely to be implemented immediately.
During business negotiations Austrians aim at win-win
strategy. |
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| Effective cross-cultural communication |
Austrians like socialising and
communicate quite openly even though with a great
focus on good and traditional manners. Meetings
usually start with a small briefing and some time
for small talk, which is much appreciated. Senior
and high status persons are highly respected and
you should try to include all titles together with
the name when addressing a person.
Austrians have a great sense of humour and will
accept jokes as long as one is self-deprecating
at the same time; however, humour has no place in
formal business meetings. |
| At dinner settings, the guest
of honour usually sits to the right of the host
who will open dinner proceedings with a toast. Eye
contact should be made when raising and lowering
your glass. It is common for the guest to thank
the host with a toast at the end of the dinner.
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| Austrians value a life of 'Gemütlichkeit'
which means an easy-going enjoyment of life and
the finer things in life. This includes good food,
drinks, the famous classical music and Austrian
balls. |
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