German managerial failure: the other side of the globalisation dilemma

Much has been written recently about Germany’s prevailing economic problems, but the emphasis has been placed on globalisation, the rigidities of the labour market and various other difficulties related to Standort Deutschland. However, there are numerous problems with respect to German management, which are unquestionably major contributory factors to Germany’s current difficulties, especially mass unemployment. This paper considers a variety of issues in this context including the rampant and socially destructive preoccupation with cost cutting and rationalisation, negative managerial behaviour, the system of corporate governance, lack of innovation and finally, corruption and fraud. Some means of achieving a turnaround are suggested. The paper is based primarily on German‐language references.