Organizational Behavior Assessment for Netflix

Running head: MANAGEMENT
Organizational behaviour
Name of the Student
Name of the University
Author Note

MANAGEMENT1
Introduction- Organizational behavior assessment is an umbrella term that refers to
the systematic process of retrieving effective material about the performance of an
administration and the features that create an impact on the performance (Görög, 2016). With
the aim of gaining a better understanding of the steps that must be taken to enhance their
capability and expertise to perform, businesses can conduct such organizational behavior
assessments. Netflix is a media service provider organization, situated in America, with his
headquarters in California. The organization has recently gained attention for its subscription-
dependent streaming OTT services for television programs and films, produced in-house
(Netflix.com, 2019). This assignment will conduct an organizational behavior assessment for
Netflix, and elaborate on the factors that affect its performance.
Power and Politics- An understanding of existing organizational politics necessities
an evaluation of coalitions, power and bargaining. The organization was founded in Scotts
Valley, California in August 29, 1997 by Reed Hastings and Marc Randolph. Randolph was
then working as the marketing director for Pure Atria, Hastings' company. An estimated $2.5
million had been invested in cash for the startup and it was launched in the form of DVD
rental store on April 14, 1998. The organization currently has shares that are held by
institutional investors that commonly include Capital Group Companies, BlackRock, The
Vanguard Group, and others. However, the major power struggle for the organization can be
accredited to the wiping out of the share price in 2014 (Voigt, Buliga & Michl, 2017). Netflix
was found to add 3 million subscribers internationally during 2014, which was however less
than its own prediction for the accumulation of roughly 3.7 million new clienteles
(McDuling, 2014). Collaboration with other networks is of prime importance to Netflix
owing to the fact that it intends to stream their content through the subscription, and lack of
license for telecasting such movies and shows might lead to non-existence of the
organization. There exists a coalition between Netflix, Disney and Epix, in relation to an

MANAGEMENT2
annual licensing deal (Bell, 2015). Furthermore, ACT, the largest fiber broadband in India
has come together with Netflix under the ‘Better Together’ enterprise for delivering premium
content shows at high speed to global customers (Justus, 2019).
Leadership- Reed Hastings, the founder of the organization has been successful in
making Netflix one of the most prominent subscription based media provider all across the
globe owing to his leadership skills and creative intelligence. Hastings follows the
transformational leadership style, and his approach towards personal time off, formal
appraisals, travel policies, and recompense packages are far from the conventional. He is
generally known to provide autonomy to his employees, expects them to work as responsible
adults, and has eliminated the need of conducting formal reviews (Techcentral.ie, 2018).
Instead, the employees are provided market-based wage in place of compensation, which
makes the operations of the organization highly successful. This leadership style typically
encompasses behavior where the leaders are able to motivate, encourage and inspire the
employees for creating and innovating changes that will facilitate growth and expansion of
the organization, while shaping the path for success (Bowers et al., 2017). In addition, role of
this leadership style in ensuring success for Netflix can be accredited to the fact that it
inspires the staff to increase their productiveness and also helps in the development of a
strong rapport and bond between the employees and the manager, thereby lowering the rates
of employee turnover. Furthermore, it can also be stated that efforts taken by Hastings to
develop a positive company culture play an important role in fostering reciprocity, by making
the staffs feel indebted to reimburse the corporation by performing well (Baharuden, Isaac &
Ameen, 2019).
Decision making- Every judgment at Netflix, from the program covers, to the color
palette that has been utilized, to tailored drip marketing policies, to forthcoming innovative
content, is determined completely by data comprehensions. In other words, comprehensive