Case Study #2 - Netflix
Organizational Development in Netflix
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Netflix Chief talent officer Lynn McCord and CEO Reed Hastings assembled revolutionary approaches called the culture deck, that the organization was practicing which helped it form a unique culture having a great impact on the employee’s performance.It was made public and it has since been viewed more than 6 million times All the documented work greatly influenced all the startups and the successful businesses. Some of the rarest aspects of work practices the organization followed were outlined by McCord and Hastings. All the aspects were based on logic unlike most of the organizations that invest their time and money on the forming and enforcing HR policies. Another practice Netflix did differently was their performance appraisal methods (Guitton, 2015). Formal reviews were completely eliminated. Management decided to make casual conversation about performance an integral part of the organization. Netflix culture and talent approach were quite compelling for few reasons.
The strategy revolved around 7 key points drawing a culture entirely based on company values, giving employees the choice to succeed and hiring top talent. The seven aspects of the Netflix culture were derived from the common sense like values of the organization, high performance, context and no control, highly aligned-loosely coupled, pay top of the market, promotion and development (Guitton, 2015). Netflix believes, instead of something written on the walls and posters ‘‘values should be lived, breathed and actually valued’’ According to the hasting, one must work as highly active sports team and not as a family, employee has to compete and do his best to for the success of organization.
Culture undoubtedly establishes a particular tone for the organization and motivate individuals to do their best and stay in the organization for long. Netflix culture can be applied in a manufacturing industry that also encourages great performance. The organization should seek people with number of qualities like who can make sound judgment, communicate well, and can think out of the box. Their values must be restricted to explicit behaviors so to know what they are seeking. Furthermore, they must understand the significance of the role of high performers and should not bear anything less. Another Netflix approach to culture that can applied is to just ask the employees to completely depend on common sense and logics instead of following rules. Management must be encouraged to define metrics and clearly state roles, overall approach is to attain well defined plans and goals in the organization and within all the teams. The organization must also have faith in departments and group so to avoid meetings within the departments. The organization compels its workforce not to focus on the process but the results
In the manufacturing industry, the role of HRD function is to often assist an administrative work, pay roll and plays a role of arbitration between the workers and the management. Generally, the manufacturing organization rely on the HRD function in the times of strikes and labor related problems.
If an organization wants to adopt a similar culture to Netflix then it also has to follow the similar OD strategies practiced there. Netflix develop their workforce by giving them the chance to explore themselves and be with the competent staff members and by giving them great challenges to work on. Netflix follow this belief system that unchallenging work and incompetent coworker is what destroys individual development.
Guitton. (2015). Netflix Case Study. Slideshare.net. Retrieved 26 September 2019, fromhttps://www.slideshare.net/JulienGuitton/netflix-case-study-54240175
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