The written history of Austria dates back to 14 b.c., when the Romans marched north to the Danube River, conquering a Celtic kingdom known as Noricum. Thereafter, Austria’s history paralleled that of Germany and France. Eight centuries later, Austria became part of Charlemagne’s empire. Like the French and the Germans, the Austrians consider Charlemagne a forefather of their nation.

 

Rudolph of Habsburg was elected emperor of the Holy Roman Empire in 1273. He seized Austria (among other territories), marking the beginning of Habsburg rule of Austria. In a watershed event for all Europe, the Ottoman Turks laid siege to Vienna in 1683. Thanks to help from the Polish and German armies, the Turks were swept back—not just from Austria, but from Hungary as well. In reaction to Napoleon’s annexation of various Habsburg lands, Francis II renounced his title of Holy Roman emperor and declared himself hereditary emperor of Austria (this made him Francis I of Austria). In 1806, the Holy Roman Empire ceased to exist, replaced by Napoleon’s Confederation of the Rhine.

 

Metternich became foreign minister of Austria in 1809, and for the next thirty-nine

years, he cleverly manipulated the politics of Europe. Following Napoleon’s defeat in 1814, Metternich presided over the Congress of Vienna, a gathering of the victorious powers. Metternich assured Austrian supremacy over Germany by making Austria the president of the new German Confederation.

 

In 1867, the crowns of Austria and Hungary were granted to a single monarch, who was emperor in Austria and king in Hungary. This empire became known as Austria-Hungary and was popularly referred to as the dual monarchy. They were separate states, each with its own constitution, government, parliament, and language. The Magyars had a privileged position in Hungary while the Germans predominated in Austria. 

 

The First World War was sparked in 1914 by the assassination of Archduke Francis Ferdinand and his wife in the Bosnian capital of Sarajevo. Austria-Hungary fought as one of the Central Powers alongside Germany and the Ottoman Empire—which was the losing side in the war. After the war, Austria-Hungary was carved up into separate nations. Austria itself became an independent republic in 1918.

In 1938, German troops entered Austria, and Anschluss (annexation) was declared. Austria, renamed the Ostmark (Eastern March), was divided into seven dministrative districts under the central authority of the German Third Reich.

 

The Austrian Republic was restored after World War II. Allied forces—including those

of the USSR—remained for ten years. Austria narrowly escaped becoming a Soviet satellite like its Eastern European neighbors. The occupying troops left only after Austria promised to remain neutral, allied with neither East nor West.

Austria became a member of the European Union (EU) on January 1, 1995.

 

Type of Government

The Republic of Austria is a federal multiparty republic with two legislative houses, the Federal Council and the National Council. The president is the chief of state; the chancellor is the head of the government. Suffrage is universal at eighteen years of age and is compulsory for presidential elections. 

 

Austria has a high standard of living, but this cannot be maintained as its population

ages. The country has two choices: to allow increased immigration or to encourage its elderly to re-enter the work force (probably by cutting social entitlements). Both of these are controversial political issues.

 

Language

The official language of Austria is German. www.ethnologue.com has identified nine languages spoken in Austria. When Austrians study foreign languages, they usually learn those of their neighbors, especially the French and Italians. English speakers can usually be found in major cities and in multinational corporations.

 

Cultural Note

Both Austria and Germany have designated Hochdeutsch (High German) as their official language. However, there are some vocabulary differences between Austrian and German. For example, the artistic movement called “art nouveau”(the term used in France and the United States of America) is called Sezessionstil in Austria and Jugendstil in Germany. But, for the most part, Austrians and Germans have little trouble understanding each other.

 

The Austrian View

The Austro-Hungarian Empire was staunchly Catholic, but modern Austria has no official religion. The majority of Austrians remain Roman Catholic (78 percent). Nonreligious and atheists make up the next largest group at 8.6 percent, followed by Lutherans (4.8 percent), and Muslims (2.0 percent). Today, Jews constitute only 0.2 percent of Austria’s population.

 

Austria’s birth and death rates are almost equal. Thanks to immigration, Austria now

exhibits a miniscule growth rate of 0.22 percent. Since the immigrants are usually Turkish, this is a concern for Austrians, who see their cultural traditions under siege. Whether or not to limit immigration is a constant political issue. Almost all Austrians avow a love of nature. In addition to skiing, many Austrians enjoy hiking and camping. They also enjoy long vacations to take advantage of their country’s

scenic landmarks.

 

Some Austrians believe that their country’s best days are past. Because the twentieth century was not particularly good for Austria, there may be substantial resistance to change and technology. One exception to this is in the field of medical technology. Austria ranks near the top of countries with the best medical care for its citizens. For example, Austria ranks in the top five for the number of MRI machines per population.

 

The preoccupation with the Austria’s glorious past weighs less heavily upon the younger generation. Some are far more optimistic about Austria’s future. Younger executives are also much less likely to be technophobes. However, power is heavily concentrated in the hands of senior executives and politicians.

 

Cultural Note

Austria joined the European Union in 1995. This yielded increased trade and prosperity—and forced the Austrian bureaucracy to reduce the regulations that impeded business. (Some might say they simply replaced Austrian red tape

with EU red tape.) During this period, Austria was on the periphery of the EU. Only Greece lay further east. 

 

The expansion of the EU in 2004 changed this. With much of eastern Europe now in the European Union, Austria is now strategically placed near the EU center. Austrian investment in central and eastern Europe has been skyrocketing ever since the fall of the Iron Curtain in 1990. This is expected to continue.

 

If anything can overcome traditional Austrian pessimism, it is the chance to make money in the former Communist countries of Europe.

 

Know Before You Go

The greatest hazards to visitors tend to be exposure to cold and sunburn. Because of Austria’s high altitude, there is less protection from the sun. Avalanches and landslides are also hazards. Earthquakes occasionally occur in Austria. Almost 75 percent of Austria’s land surface is more than 1,700 feet above sea level. Altitude sickness is a danger for visitors to the mountains, but not for travelers in the cities. Altitude sickness can strike anyone, even if you have never experienced it before. There is no sure prevention except gradual acclimation to high elevation. Alcohol consumption tends to make the symptoms worse.

 

Austria has an active Green Party, which believes Austrians are in danger from aging nuclear power plants in neighboring Slovenia and the Czech Republic.

 

Cultural Orientation 

Cognitive Styles: How Austrians Organize and Process Information Austrians traditionally have a structured approach to absorbing and processing information.

They are most comfortable with a linear approach to data and feel concern about taking action in a premature manner.

 

Negotiation Strategies: What Austrians Accept as Evidence

Scientific data, or facts, are the most important component of any decision. Feelings sometimes influence the process, because of the number of people who are usually consulted prior to large decisions. However, if there is a conflict between an individual’s feelings, faith, and scientific evidence, the facts will outweigh any other factor.

 

Value Systems: The Basis for Behavior

The following three sections identify the Value Systems in the predominant culture—their methods of dividing right from wrong, good from evil, and so forth.

 

Locus of Decision-Making

A desire to seek consensus and a widespread respect for order are Austrian characteristics, as evidenced by the fact that there have been almost no labor strikes in the postwar era. Every Austrian has a responsibility to support the social order. Actions that disrupt this social order are seen as inherently wrong.

 

Sources of Anxiety Reduction

Some sociologists believe that Austrians have a high index of uncertainty avoidance. As a result, Austrians use laws and morality to give structure to their worldview. Certainly, Austrians tend to be extremely averse to risk.

 

In 1955, the USSR demanded that Austria adopt permanent neutrality in exchange for agreeing to remove its troops from Austria. Official neutrality (while remaining economically engaged with the West) seems to have suited the Austrian character. The fall of the Iron Curtain and Austria’s entry into the European Union has required some redefinition of neutrality.

 

Issues of Equality/Inequality

Although titles of nobility were abolished after the First World War, Austria still has a rigid class system. Business leaders tend to come from the upper class.Historically, Austria’s ornate Catholic churches were the only place where all citizens, whatever their status, could enjoy the sort of environments found in the palaces of the

nobility. Today, church attendance has plummeted, but Austrian laws protect all citizens equally. Even legally employed noncitizens (of any nationality) belong to a legal body designed to protect their interests. For most workers, this is the Arbeiterkammern (Workers’ Chambers), which provides legal representation without regard for a worker’s ability to pay. In fact, when it loses a case, the Arbeitierkammern usually pays the opponent’s legal fees.

 

Business Practices

Punctuality, Appointments, and Local Time

 

● In business meetings between equals, Austrians are very punctual, expecting to begin at the exact time specified. They expect the same from visitors.

● As in every country, rank has its privileges: a higher-ranking person can make a subordinate wait. However, a subordinate who makes his boss wait even five minutes is in trouble.

● Social events in Austria (such as the start time of the opera) also begin on time.

● Lateness is not just impolite in Austria; it is believed that an inability to use time wisely is indicative of deficiencies in other areas. Failure to be prompt will eliminate you from consideration as a prospective business partner.

● Austrian executives have their schedule planned weeks in advance (or longer). Make your appointments as far in advance as possible, and try and give plenty of advance notice if you must reschedule.

● The residents of Austria, like most Europeans, write the day first, then the month, then the year (e.g., December 3, 2010, is written 3.12.10 or 3/12/10).

● Many Austrian businesspeople take just thirty minutes for lunch.

● Do not expect to catch Austrian executives at work after business hours. Many Austrians believe that people who work excessively late are using their time inefficiently.

● Austrians typically take long summer vacations (often the entire month of August) and long December holidays. 

● Austria is one hour ahead of Greenwich Mean Time (G.M.T. +1). This makes it six hours ahead of U.S. Eastern Standard Time (E.S.T. +6).

 

Cultural Note

Listen for reports of “good snow” at the many ski resorts. Many Austrians ski, and they may take off from work to take advantage of excellent skiing weather.

 

Negotiating

● Business meetings typically begin with small talk. Expect to be asked about your journey, what scenic Austrian sights you have visited, and so on. You may also be asked your opinion about current events. Although this conversation seems inconsequential, you are being judged by the Austrians, so be ready with intelligent commentary.

● All meeting attendees are expected to be fully prepared. Facts and figures must be provided—if not in the body of your presentation, then in supplementary materials.

● Unless a presentation is being made, the senior person present sets the agenda. Expect discussions to be linear and to follow the agenda point by point.

● When the final item is addressed, the meeting may end abruptly. Austrian concepts of time management do not call for meetings to “wind down.” If additional matters not on the agenda require discussion, those will be dealt with in subsequent meetings. 

● Austrians tend to negotiate in a direct, linear fashion. Anything that upsets the natural order of things tends to throw off the entire process.

● Decision-making is generally slow in Austria. Although consensus is sought, the top of the hierarchy, which tends to be very traditional and averse to risk, makes final decisions.

● There are still relatively few female executives at the upper levels of Austrian management. Foreign businesswomen should not be offended if Austrian men are more formal and courteous around them.

 

Business Entertaining

● Austrians keep a strict division between work and play. While you may invite your Austrian counterparts to a dinner or a party, do not be surprised if they decline. You might never see them outside the office until the close of successful negotiations, when they will invite you to a meal.

● Breakfast is usually eaten at home; business breakfasts are still rather uncommon ● Midmorning breaks often include a sandwich; midafternoon breaks usually involve coffee and cake.

● While the typical Austrian lunch is often as brief as thirty minutes, it can nevertheless be a heavy meal. A business lunch will probably last longer.

● Invitations to dine will usually be at a restaurant. Austrians rarely entertain business associates at home.

● If you are invited into an Austrian home, consider it an honor. Dress well and bring

gifts. 

● Keep your hands above the table during the meal.

● Good topics of conversation include Austria’s culture, cuisine, history, and beautiful

landscape.

● The Austrians take coffee and wine quite seriously.

● Except for traditional winter sports such as skiing, Austrians do not tend to be sports fanatics. Even football (soccer) did not become an important sport in Austria until after the Second World War. Snowboarding has become popular.

 

Protocol

 

Greetings

● If possible, find someone to introduce you. Austrians do not feel it is appropriate to

introduce yourself to strangers.

● The usual greeting between men is a brief but firm handshake. (Most Austrians will have excellent posture—no hands in your pockets, etc.) While it is not traditional for men to shake hands with women, Austrian men will do so if a woman offers her hand first. Austrian women do not traditionally shake hands with each other but may choose to do so in a business setting.

● Never put your hand in your pocket for longer than it takes to retrieve an object. Austrians find it insulting when someone speaks to them with his hands in his pockets.

● Carry a good supply of business cards. If your company is an old one, include the year it was founded on your card.

● Extended, direct eye contact is expected when conversing. Failure to meet an Austrian’s gaze will give the impression that you are untrustworthy.

 

Titles/Forms of Address

● In business settings, Austrians address each other by titles and surnames. Do not address an Austrian by his or her first name unless requested to do so.

● Even when an adult Austrian is not present, it is considered ill-mannered to refer to him or her by surname alone. The title or honorific must be used at all times.

 

Gifts

● Gift giving is not traditionally an integral part of doing business in Austria. When given, gifts tend to be well-chosen but modest in value.

● It is wise to carry several small presents with you, so if you are presented with a gift you can reciprocate immediately.

● Preferred gifts are manufactured in your home country. An illustrated book of your home city or region is a good choice. If the recipient drinks alcohol, wine or spirits produced in your home region is also a good choice. 

● In business settings, Austrians open gifts immediately. 

● Once a close business relationship is established, Austrians give business colleagues gifts at holidays (especially Christmas) and to celebrate the completion of a successful business deal.

 

Dress

● Conservative, formal dress is expected in Austria. Shoes must be recently shined. Clothes must be clean and recently pressed.

● Dark, sober colors are preferred. Flashy, bright clothing is inappropriate for a business setting.

 

Cultural Note

Austria has a hierarchical culture, in which age is respected. Your company should send senior executives to important meetings in Austria. If younger people (such as technicians) must be sent, they should be accompanied by an older executive—even if he or she has no real function other than to provide gravitas.

 

When speaking to Austrian executives, do not make jokes. Austrians do not believe that jokes and humor have any place in business. Never open a speech or presentation with a joke or humorous anecdote.