Hoyt,
The short answer is that the Germans were very practical about pistol use, and issued them to anyone whose normal duties generally required two hands for something other than direct hostilities. This includes noncoms and enlisteds (and some civilians!) as necessary.
The longer answer can be found in German Pistols and Holsters 1934-1945 vol. IV by Bob Whittington. This volume is translations of the German Army equivalent of the U.S. "Table of Organization and Equipment", a detailed record of manpower strength, weapons issue, and transportation by unit-type for the entire German army. A very interesting and exhaustive record of exactly who used sidearms on the German side in WWII.
--Dwight
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