Appunti Cross-Cultural Management A.A. 2023-2024

PSYCHOLOGICAL SAFETY

On average, team diversity had a slight negative effect on performance. However, in teams with

high psychological safety, diversity was positively associated with performance. Psychological

Safety is a shared belief that team members will not be rejected or embarrassed for speaking up

their ideas, questions or concerns. A pscychological safe place is one in which you can make

mistakes and there is freedom to express who you are.

Working in teams

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COMMON GOAL Set clear and shared goals that everyone on the team commits to

achieve. This creates a sense of direction and belonging.

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Definition of Roles & Responsibilities Ensure that each team member understands their

tasks and expectations. This helps to prevent overlaps and gaps in responsibilities.

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Collaboration and Support Promote an environment where team members feel

comfortable asking for help and providing mutual support. This strengthens the sense of

belonging and enhances team effectiveness.

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COMMUNICATION Encourage honest and direct communication. Express your ideas

and expectations clearly and actively listen to the contributions of others.

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Constructive Feedback Provide and solicit feedback in a constructive and non-critical

manner. Feedback is essential for personal growth and team improvement.

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Flexibility and Adaptability Being open to change and ready to adapt to new situations

can help the team to navigate unforeseen challenges, while maintaining effectiveness.

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RESPECT FOR CULTURAL DIVERSITY Every culture has its norms and values, so

recognizing and respecting these differences can enhance collaboration and reduce

misunderstandings. Value the skills, experiences and perspectives of each team member.

Diversity can lead to creative and innovative solutions.

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Trust Building Build trust by demonstrating reliability, integrity and mutual respect. A

trusting environment encourages the sharing of ideas and constructive feedback.

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Conflict Management Learn to handle conflicts constructively by addressing them openly

and seeking solutions that are acceptable to all. Effective conflict management prevents

escalation and maintains a positive work environment.

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Recognition & Appreciation Recognize and celebrate successes and contributions of team

members. This can increase motivation and job satisfaction.

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Effective Leadership An effective leader can inspire and guide the team to success.

Leadership should be exercised with empathy, clarity and by encouraging active

participation from all team members.

Netflix Case Study

Netflix is an international company with a peculiar culture that has been successfully transferred

into 190 countries. How can a company like this, based in Silicon Valley (i.e., very monocronich

and universalistic), be very effective worldwide? Moreover, how is it possible to overcome the

national culture with the organizational one? In some cases, the organizational culture overlaps the

national one.

A question that will come up in the final exam is: how can organizations bring their culture

worldwide?

Netflix has demonstrated that developing country-specific knowledge is critical for success in local

markets. This knowledge needs to be both broad and deep, extending across political, institutional,

regulatory, technical, cultural, customer and competitor domains. Understanding local cultures

ensured that Netflix could be sensitive to and respond to their differences.

Put yourself in Hasting’s shoes: what would be your strategy to render Netflix’s

1. unique culture, developed in Silicon Valley, global?

Netflix’s Silicon Valley culture

The key strategy and the success of globalizing lies in a thoughtful

combination of the following strategies, considering both the core values and the adaptability

required for different regions.

➢ Training Programs:

o Provide comprehensive training on processes to local managers is essential;

o Consider bringing local managers to Silicon Valley or sending Silicon Valley

managers abroad for training can be part of the solution.

➢ Hiring Process:

o Select individuals who align and fit with the company culture during the hiring

process;

o :

Adapt compensation variables to suit different regions if necessary, for instance do

we have to use the same compensation in the US and Europe?

➢ Cultural Adaptation:

o Find a middle ground between Silicon Valley culture and local cultures, which

means finding a common ground;

o Allow some flexibility in certain practices to accommodate cultural differences.

➢ Global Cultural Spreaders:

o Deploy cultural spreaders (i.e., employees or managers) worldwide to embody and

promote Netflix’s culture, as well as spread it in different regions/countries.

For example, some foreigner employees may work for a couple of years and, once they know the

culture, they can go back to their home country and spread it. That is why, training is very important

since to spread culture you need to have processes that are aligned. Clearly, this is not easy. Some

companies can overcome local cultures, maybe in other countries they have to adapt. Although

sometimes we need to adapt to the local culture, cultural barriers in the modern generation are less

than before and young people adapt more easily.

➢ Utilizing International Talent:

o Leverage the international nature of Silicon Valley by hiring foreign talent;

o Allow employees to work in Silicon Valley for a period of time before returning to

their home countries and spreading the culture.

➢ Training Alignment: ensure that training processes are aligned globally to facilitate culture

dissemination.

➢ Adaptability to Local Practices: recognize cultural differences in employment practices,

such as the approach to firing, and adapt where necessary.

➢ High competition: maybe Netflix might not want to adapt its culture and, since there is a

higher firing, perhaps in some countries it has to adapt. Thus, it is important to hire people

who have ambitions by looking at cultural dimensions. Of course, they want to achieve

success and competition is high, so they need people who are fine with it.

➢ Utilizing Business School and Engineering Culture: tap into talent from international

business schools and engineering backgrounds, which often share a universal culture. If you

attend a business school in Singapore or in the States, more or less, they provide the same

way of thinking since they tend to be very universal, to follow the same case studies and

subjects.

Our generation is based on much more similarities than differences, compared to the culture of

Professor. It is important not to hire only local expertise.

2. Which cultural dimensions could work against Netflix culture?

First of all, which cultural dimensions can describe Netflix?

Netflix’s culture aligns with several cultural dimensions, including:

• Achievement: emphasizing a results-oriented and high-performance culture.

• Risk Uncertainty: valuing individuals who are comfortable with taking risks and uncertainty,

who are pro to them and fostering innovation.

• Few Rules: promoting a flexible and adaptive environment with minimal bureaucracy to

follow.

• Low Power Distance: encouraging a flat organizational structure, minimizing hierarchical

barriers.

• Mastery: focusing on continuous learning and development, striving for excellence.

• Individualism: valuing autonomy and personal responsibility, emphasizing individual

contributions.

However, there are cultural dimensions that might work against Netflix’s culture:

• High Uncertainty Avoidance: Netflix’s preference for innovation and flexibility may clash

with cultures that are averse to uncertainty and change.

• Particularism: Netflix’s emphasis on a consistent and transparent culture may face

challenges in cultures that prioritize relationships over standardized rules (i.e.,

universalism).

• Polychronicity: time is important, Netflix is monochronic, and there are deadlines to respect.

• Ascription: cultures that focus on one’s background rather than individual contributions may

not align with Netflix’s merit-based approach. Ascription does not work, meaning that if I

am son of a rich person who cares, it is only about what I can bring to the company.

• Collectivism: the strong individualism at Netflix may face resistance in cultures that

emphasize group harmony and collective goals.

• High Hierarchy: cultures with a strong hierarchical structure may not easily adapt to

Netflix’s flat organizational model.

• High Context Communication: Netflix’s preference for direct and low-context

communication might face challenges in cultures that rely on implicit or contextual

communication. High context communication does not work because if I want to give

feedback is low context and Netflix is very low context, this is something you have to be

very careful in the way of communicating.

The Silicon Valley is very competitive, egalitarian and individualistic, as well as achievement

oriented. Understanding and managing these cultural nuances is essential for Netflix to effectively

navigate global expansion, while preserving its core values.

Hence, we should be very careful when approaching someone with a different cultural background.

3. Referring to the dynamic theories presented in class, how can you apply concept

like continuous feedback, dispersed decision making, total transparency, no

vacation policies, talent density in high context, collectivistic and high hierarchy

cultures?

Applying dynamic theories to concepts like continuous feedback and dispersed decision-making,

especially in high-context, collectivistic and high hierarchy cultures can be a nuanced process. The

following is how dynamic theories may apply to Netflix:

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Integrative Thinking Netflix’s emphasis on continuous feedback and dispersed decision-

making aligns with integrative thinking, considering the way in which it comes up with new

ideas every day and fosters a culture where diverse perspectives contribute to innovative

solutions.

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Yin and Yang the concept of Yin and Yang can be reflected in Netflix’s balance between

achievement-oriented, individualism and survival-oriented collectivism. Employees may

navigate these dualities in their thinking and behavior.

o Achievement and Survival Culture: Netflix’s dynamic culture, driven by

achievement and survival, resonates with dynamic theories. Individuals may embody

both achievement-oriented and collectivistic behaviors based on contextual demands.

o Feedback is intrinsically low context, but at the same time you have to be very

careful with that. It is all about harmony and finding a balance between two opposite

sides: if feedback is given in a constructive way, people will improve (also by a lot)

and so will do