Human Resource Management Policy of Netflix: A Critical Analysis

This report critically analyses the human resource management policy of Netflix, including their recruitment practices, challenges faced by HRM, and theories of HRM. It also discusses the impact of HRM issues on the company and the importance of good HRM practices for organizational success.

HUMAN RESOURCE

EXECUTIVE SUMMARY
This report has been critically analysed the human resource management policy of the Netflix
company. As Netflix has been leading the entertainment industry across the world, it provides
many options to its user. Company has been decided to apply the human resource practice policy
for their new Hiring process. They have included transparent pay policy through which every
employee of their organization could make easily accessed to their salary. If any employee were
compensated with extra salary it would be disclosed to everyone in the company. It included how
hiring and firing policy of their human resource management team effectively worked in their
native country and what would be the result if they would operate this policy in other countries.
It includes how theories and models helped the company to provide opportunities to develop the
effective human resource management team. It also includes the recruitment procedures of the
Netflix company.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Human resource practices for Netflix organization.....................................................................4
Recruitment practices of Netflix:.................................................................................................5
Challenges faced by HRM:..........................................................................................................7
Theories of HRM:........................................................................................................................8
Impact of issues on the company:................................................................................................9
CONCLUSION................................................................................................................................9
RECCOMENDATIONS................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource is the part of business management team who are in charge of screening,
recruiting and to give coaching and training to the new applicant. Every organization has their
human resource cell who manage their employees also hire applicants who posses skills
according to their organizational need (Boon, Den Hartog and Lepak, 2019). Netflix is the
global online leading streaming agency company provide entertainment services to all people
around the world. Netflix is operating globally they have variety of entertainment shows through
which company is earning more revenues. Scenario is depicted as Netflix company only hires a
employee who set in their work culture or posses technical knowledge, they fire their employees
if they are no longer able to produce good result for the company. CEO of Netflix company told
their human resource management team to not hire a people who are freshly graduated from the
college. They also introduce a transparent pay policy for their employees in United States.
Report cover HRM practices regarding hire and fire policy of the company in United State and
critical analyse on how this policy will apply globally.
Report includes the critical analysis on recruitment policy of the Netflix company which
includes models and theories. Report further describe about the critically analysis on the
challenges and opportunities to develop an effective human resource policy. It included the
finding of issues and for that theories and models are applied to resolve those issues. Theories
are written in concisely and in logically way to solve the issues.
MAIN BODY
Human resource practices for Netflix organization
Netflix is a global recognized entertainment agency which provide varieties of shows and
movies to the people across the world. It provides a online platform in which streamer can
stream entertainment show from anywhere in the world. To manage their resources company has
different cells for every resource management team. Human resource management team are
aimed to carry out the finding, screening, hiring process of the company (Makedon and et.al
2019). Human resources practices are ensuring safety for the employee, resolving issues arise in
work place of employee, providing better coaching and mentoring training to the new applicants
so that easily carried out the task of their organization. The main task of the human resource
team is to hire a better person for their organization who can carry out their company's operation
easily. They have criteria to hire or recruit a person based on their skills and knowledge.

Netflix is the leading company in entertainment market as their employee works
effectively. CEO of the Netflix company already told their human resource management team to
consider a applicant who possessed skills which will be beneficial for their company. In United
State their human resource apply a new policy in which they do not consider a person who
freshly graduated person as company demand for high technical skills possessed person because
their work is technical which required innovations and new inventions (Delery and Roumpi,
2017). The hiring process of company in United State is supportable as people there posses good
technical skills so that it is success for them. Netflix also not focus on educational background of
the applicant as their human resource team conduct a interview of the applicants in which they
hire a person whom they find they are suitable to their work culture if they do not satisfy their
need they don't hire those people.
Human resource management team of the Netflix fire the employee if they find they are
no longer productive for the company even they work for their company for long time if they
found they do not satisfy their work culture need they immediately fire the employee (Chang,
and et.al 2019). They also introduced a transparent pay policy in which every employee of the
organization can see other employee's salary if they are compensated then it will be visible to
everyone. But this policy in United State can work for them but for globally it seems to be
difficult as company is looking for to apply this HRM policy in different countries of Asia if they
apply this policy in Japan, South Korea country then it will be good for the company because
both these countries are technically expert people here posses good technical skills so this policy
work in high technical environmental country but also this policy will not work in a country
where technology are not considered as much in such countries people do not posses good
technical skills. Therefore, for the Netflix company their HRM practices can work for those
countries who have high technological environment (Boateng, Okoe and Mensah, 2017).
Recruitment practices of Netflix:
Netflix hiring policy is centred around hiring only the best adults. It employ
knowledgeable campaigner and intentionally did not hire freshly graduate college educate. As
the company requested high self-sufficiency from employees, it did not recruit fresh talent. Also,
Netflix did not centre on learning qualifications for knowledgeable candidates. Furthermore,
Netflix centred on hiring only those worker who are principally fit their culture and secondarily

possessed the needed technical knowledge (Arora, and Gupta, 2017). Talent managers at
Netflix do not dissipate time poring over CV and occupation application forms. As this might be
having the mode to find grown-ups who live and breathe the Netflix belief, and they bypass
champions with big egos, terrible attitudes, and poor work moral.
They present and detect candidates cautiously and ask thoughtful questions that disclose
more about action and opinion than well rehearsed reply to textbook questions. The profit of
recruiting the best people in the company are obvious as, great people attain great things. The
good people inspire, motivates, and force others to do finer. Netflix have a well-formed,
thoughtful recruiting procedure that it really follow. This is one of the top-grade indicators of
recruiting prosperity. Recruiting is a procedure like any other business process, and should be
customized for the situation and necessity of Netflix. All hiring judgment of Netflix are made
and completely managed by hiring manager of Netflix. As organization hire the employee and
make their effective training while by keeping them with various criteria and make sure for
having their skills and knowledge to be growth for the business.
The hire manager overseas all feature of recruit, involving, with judgment criteria
supported on faculty necessity, partner with recruiters to origin, show and evaluate campaigner
and on boarding fresh hires. The procedure of meeting at Netflix includes pre-screening with a
recruiter before the telephone call, the recruiter transmit with using organization link . All inner
papers are shared broadly and consistently for any employee to view and remark on. journal
production review are made accessible to all employees right after each quarterly earning's
declaration. Managers of Netflix don't offer formal measures, choosing for feedback system for
having the growth and make their employee for working with motivation.
While phone screen that could be easily handled with open ended question and many
more technical question with particular to the technology or scheduling communication
individual is familiar with. If the recruiter is interviewing for the engineering unit, as this could
also asked them for complete a coding challenge using a common editor. Otherwise, individual
acquire take home task, which takes many hours to complete. Treating candidates as customers is
the process used by Netflix. Whether phone screening or video interview, a candidate basic
impression of the company is critical. It's essential to make them feel like organization is
concerned and excited about acquiring to recognize them as they are about reasoned for the role.

Social media is also a fantastic recruiting instrument. Social recruiting allows Netflix to share
business postings with its full network and promote a two-way conversation. Even if the people
reached aren't interested in the part it is hiring for, it is probable they may know individual who
is a great fit.
Challenges faced by HRM:
Some severe challenges faced by HRM are as follows:
1)Recruitment and selection: Finding an appropriate entrant for the job from big figure of
appliers is primary trouble for the human resource manager (Banaś, and Michnik, 2019). They
have to create an appropriate change from time to time in the choosing process and see to it that
the candidate that could created with mark accomplishing the job necessities. If needed, the
candidate should be given with training to get superior outcomes.
2)Emotional and physical stability of employees: Provide with reward and pay to workers is
not adequate in present time of world. The HR manager have to keep proper emotional
proportion of employees. They should make sure about for realize the knowledge, needs and
sensitivity of employees, and inspire them whenever needed.
3)Balance between administration and employees: The HR director duty to balance the
curiosity of supervision and workers. Net profit, commitment, cooperation, trueness, and
sincerely are the component usual by managing, whereas finer salary and pay, safety and
security, healthy working conditions etc., are the elements anticipated by the employees.
Performance appraisal: This activity should be reasoned a regular procedure by the human
resource manager. If workforce are not acquiring appropriate criticism from them, it may impact
their forthcoming work. A scientific appraisal method reported to altering needs must be applied
and the choice of having some better restrained from time to time.

Theories of HRM:
HRM assure the smooth functioning of an organization. The procedure starts with formulate the
correct plan of action for the occupation needs and ends with ensure a winning business
maturation of the concern (Mishra, and Yadav, 2021) Therefore, HRM is an invisible agent that
binds all the features of the organization.
1)Human capital theory: Human capital is a broad word referring to an employee's educational
background, expertise, experience, and abilities. while this might be some few relatively with
new concepts of finance and economics. Companies have a desire to pursue out useful human
resources and to add to the intellectual capital of their recent people, according to the report.
Human capital, to put it another way, is the idea that recognises that labour capital is not uniform
(Ngo-Henha, 2018). Human and intellectual capital theories are considered as sustainable
sources of development. Netflix leads with having their innovation and creation, along with this
could also create their process and make sure for having in solving out the company problem and
that could also important for them in working for market and customer.
2)High performance work system: It is a collection of human resource management methods
aimed at improving employees ability, enthusiasm and association in order for a company to
obtain a long-term competitive edge (Olawumi, 2019). This involves job stability,
comprehensive training, teams and decentralised decision-making, and information sharing,
among other things. These activities contribute to the development of favourable climate views
of Netflix, which foster engaged and discretionary workplace behaviour and, as a result, high
performing companies.
3)Resource based view: The resource based approach takes an internal focus to illustrate how
an unique customer package of internal resources and skills should serve as the foundation for
value-creating initiatives. Capital equipment, individual staff abilities, patents, brand names,
financing, and talented management are examples of resources used in a company's
manufacturing process. These assets might be both tangible and intangible. Capabilities are the
ability of a group of resources to undertake a task or activity in an integrated or combined
manner. In Netflix, it is vital to note that overall strategic resources are frequently formed by
combining various strategies and resources that could be easily duplicated and bundeled together

in a difficult to copy manner. With the various strategies the company will be able to increase
productivity.
Impact of issues on the company:
Various issues affect the environment of the company. Netflix may need to hire more
employees for a variety of reasons, including expanding operations. HRM confronts substantial
obstacles when it comes to recruiting, such as finding the best candidate and acclimating the
recruited employee to the environment and culture. With the challenges faced by HRM
employees will be able to look for work elsewhere as a result (Sun, and et.al 2018). In this
scenario, addressing more about the motivation while for having the exits interview with skilled
HR practices. If this meeting does not take place, no one will be able to pass on the important
information, and critical company concerns may remain unaddressed. This will almost certainly
result in a high rate of turnover.
HRM has an impact on a firm via influencing organisational culture. Setting a Netflix
company’s vision and mission, as well as its core values, is critical because it draws employees
together to work toward a common goal (Townsend and Bugg, 2018). The issues of HRM
considerably impact on organizational success, according to various studies. Methods such as
recruitment, learning, performance evaluation, job placement, employee participation, role
clarity, and remuneration have been demonstrated to influence university.
CONCLUSION
From the above it is concluded that Good human resource management could play a
important role to provide better applicants to the company. Report includes the scenario of
Netflix company how their Human resource management policy applied in their country. Human
resource practices helped the management team to carried out company's task easily as they are
assigned to recruit the employee who possessed all the skills and knowledge which were required
by the organization. Company's protocol was to consider only skilled experienced person who
possessed all knowledge regarding their business they do not consider college pass out fresher,
or to hire those who fits in their work culture. It includes their hiring and firing process work in
highly technological environment country it does not work for the country who had not

technological advancement. Report discussed the theories which are human capital theory, high
performance work and resource based view theory to critically analyse the human resource
practices of Netflix company. This report concluded how these theories support the human
resource management of the company how they imply the practices in their country or to apply
in other country. Report also covered the area in which it discussed the opportunities and
challenges to develop the effective human resource management in the company which focused
on the performance and the ethical process of the company.
RECCOMENDATIONS
In order to build a more strong team and increase the value of business, Netflix need to
devote many of the pre-employment showing and education everything that an recruiter can
about a candidate. As organization also needs to check the information about their employee that
could be related with their criminal background and various other personal information. Netflix
should create opportunity for its employees to grow their professional and individual abilities if it
wants to keep its customers content and satisfied. Netflix should set aside the portion of its
workforce and that could take their training for which the they can easily work and make their
organization for working with proper effective things. This move will pay off in two ways: the
staff will make their growth and try to make sure for their abilities about any work and that can
be used to develop the firm. Netflix must reward its workforce with highly package through
which they can keep their motivation and also make their more efforts towards their various
thing and work in organization.

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