Categorization of Variables of the Organizational Culture at Netflix 1
2-2 Assignment: Categorization of Variables of the Organizational Culture at Netflix 1
WCM-510-Q3414 Negotiation/Advocacy in Work 19TW3
2-2 Assignment: Categorization of Variables of the Organizational Culture at Netflix
Amy Sessa
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2-2 Assignment: Categorization of Variables of the Organizational Culture at Netflix 2
Variables How Netflix Reinvented HR
The Woman Behind The Netflix Culture Document
Netflix Culture: Freedom & Responsibility
Observable Artifacts Netflix employees are encouraged to converse with recruiters (p. 75). Netflix has the talent philosophy of only employing “A” players (p.72).
Netflix management team compared leadership to a pro sports team, where good managers are good coaches, and the goal is to field stars in every position (p. 1).
Netflix company values are shown by those who get rewarded promoted or let go (slide 7).
Netflix did not pay performance bonuses to their employees, as they believed they were needless if the right employees were hired (p. 75).
In the early millennium Netflix let go of 30% of their staff. After layoffs meetings referred to as “metrics meetings” were held weekly in the company parking lot. These meetings allowed all remaining employees to see everything from current money in the bank, to payroll versus revenue first hand (p.6).
Netflix leader’s strive to hire top talent, develop, and cut smartly so there are stars in every position of the company (slide 24).
Espoused Values The company has implemented an expense policy which includes only five words: “Act in Netflix’s best interest” (p. 73).
Netflix does not put too much emphasis on employees having formal titles; they promote simply focusing on the tasks at hand (p.4).
Unlike most companies, Netflix practices providing an employee’s adequate performance with a generous severance package (slide 23).
Salaried employees at Netflix were encouraged to take any time off they felt was suitable, while bosses and employees were simply asked to work arrangements out with one another (p.72-73).
Netflix makes an effort to trust all employees to make the best decisions for themselves and the company, as they consider this a huge part of building a great team (p. 7).
Netflix focuses on their employee’s freedom, in order to attract innovative people. The company believes this method will provide a better chance to sustain success (slide 43).
Enacted Values One of the company’s best engineers stated
McCord says, the people in the “delta
Some employees at Netflix value there job
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2-2 Assignment: Categorization of Variables of the Organizational Culture at Netflix 3
that he had been happier since the recent layoffs. He specified he would rather work alone than work with subpar performers (p.73).
zone” usually know it before the company does, and haven’t been happy at the company for a while (p. 2).
security and stability over performance, and dislike the company culture (slide 39).
Maria was hired to develop the companies streaming service. At first she was hard working until automation was implemented. Maria lacked all skills needed to complete necessary deliverables and objectives (p.74).
Netflix has a built-in expectation of high performance, radical honesty, and the motto “we’re not family” (p. 1).
“Bad” processes tend to creep in. Netflix tries to get rid of the rules when it is applicable to reinforce the point. Employees should strive for “good process” (slide 64-65)
Basic Assumptions If you perform well or you still no longer fit in with the company’s objective a generous severance package will be offered to you (p.72).
Some managers can get sentimental, handing out extra chances; employees who perform well are paid by their companies to do so. Leniency shouldn’t be the go-to. (p.1)
Employees who have been stellar performers in the past, but have hit a bad patch get a slight pass, as Netflix believes they will become stars again (slide 34).
Netflix completely eliminated formal reviews, as they came to the conclusion that building a bureaucracy and elaborate rituals around measuring performance generally will not improve it (pg. 73).
McCord has stated many managers in the company offer performance improvement plans to employees who they know will fail (p. 3)
Freedom is not absolute there are two types of necessary rules. First is to prevent irrevocable disaster, which includes financials being produced incorrectly. The second is moral, ethical, and legal issues and there intolerance (slides 60- 61).
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2-2 Assignment: Categorization of Variables of the Organizational Culture at Netflix 4
References
McCord, P. (2014, January/February). How Netflix Reinvented HR. Retrieved from Harvard
Business Review : https://web-a-ebscohost-
com.ezproxy.snhu.edu/ehost/pdfviewer/pdfviewer?vid=1&sid=d4e50425-eaba-4b7a-
88ec-72b4a60f7334%40sessionmgr4006
Netflix Culture: Freedom & Responsibility. (2009, August 1). Retrieved from
The Woman Behind the Netflix Culture Doc. (n.d.). Retrieved from First Round Review:
https://firstround.com/review/The-woman-behind-the-Netflix-Culture-doc/
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2-2 Assignment: Categorization of Variables of the Organizational Culture at Netflix 5
Reference
McCord, P. (2014). How Netflix Reinvented HR. (cover story). Harvard Business Review, 92(1/2), 70–76. Retrieved from http://ezproxy.snhu.edu/login? url=https://search.ebscohost.com/login.aspx? direct=true&db=bth&AN=93302820&site=ehost-live&scope=site
Hastings, R. (2009, August 01). The Keeper Test Managers Use: Retrieved from https://www.slideshare.net/reed2001/culture-1798664/26- The_Keeper_Test_Managers_UseWhich
The Woman Behind the Netflix Culture Doc. (2015, February 07). Retrieved from http://firstround.com/review/The-woman-behind-the-Netflix-Culture-doc/
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