Netflix Case Study: HRM Practices and Challenges

This case study analyzes the human resource management practices and challenges faced by Netflix. It covers the recruitment process, successful HR practices, and theories applied by the company. The study also highlights the challenges faced by Netflix in its international business expansion.

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Case Study (Netflix case
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EXECUTIVE SUMMERY
Overall study reflect that organization human resource manager develop efficiency at
work place. And manager can be effectively applied practices theories and methods for the new
employee selection and hire and development of powerful workplace. Netflix organization
HRM department when they recruit new employee they mainly wanted to hire experienced
people, and they not look forward their education they highly consider the skills and knowledge
what individual have, but it has been impacted on the communication process. The company's
human resource management considered human capital theory, organizational behavioural theory
and high performance work system for effective management expansion. It has been clear that
Netflix considered and develop good practices of HRM, so they effectively improved their
performance. Netflix mainly influenced by some new employee who not performed well for the
particular task.

TABLE OF CONTENTS
EXECUTIVE SUMMERY..............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Successful human resource practices and policies and their benefits for international market...4
Evaluate the recruitment practices in the company.....................................................................5
Causes of HRM practices in organization and Implication of the challenges:............................6
CONCLUSION................................................................................................................................9
RECOMMENDATION...................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource management practices useful for the overall business performance
and develop more productivity, but the application of HRM practices require knowledge of
business requirement in clear manner. Organization applies theories, models for effective
people management, some time when business wrong employee, and they not do their work
within proper manner, then it directly impacts of the human resource management practices
(Srivastava, 2021). Netflix organization provides their services at global or international
level, and they mainly provide services T.V. Series, film etc. The company wants to hire new
employee for their business activities continuity. Application of human resource practices
can effective inference the overall human activities. Company also known as they have
different and unique human resource management practices, and they want to expand their
business activities with the new people engagement. This report will clearly provide idea
about how company hire new employee which skills they saw in their new employee and
completion of this process which practices they effectively develop for their individual work
performance. This study will show that Netflix organization applies practices, policies and
strategies like work benefits, performance management, payment methods, centralization of
workplace and many more for human resource management.
MAIN BODY
Analysis
Successful human resource practices and policies and their benefits for international market
Netflix company successful because they develop effective practices and applies effective
strategies for new employee engagement for their business. Company considerer and develop
hire and fire policy to make strong human resource development in the organization and
company mainly wants to hire knowledgable and experienced human for their business activity
(Ansari, Farrukh and Raza, 2021). And they provide good salary as well.
Application of Hire and fire policy:
The company consider hire and fire culture practices which means company's human
resource manager hire employee for particular goals and provides them clear information about
the task. And fire means when employee and individual not performing their task with good
manner it impacts on the performance. So company provides training period to their employee,

and they provide them clear information about business task, and they develop training sessions,
motivation, programs for human management.
Organization wants to improve their international business workforce, so they need to
hire new employee (Vrontis and et.al., 2021). So they apply this strategy, and they hire new
employee, and they recruit freshers and manager saw they have good technological skills and
knowledge in this particular field or not. So those who performs well, and they happy with the
rules and regulation of organization their performance is good but those who are not performed
well company has power, and they fie employee.
Netflix company announced that they develop performance management practices and
eliminate formal reviews practices like they consider that individual performance is good or not
analysis of this practice clearly defines that this particular human resource is beneficial for long
term or not and it gives proper idea about fire employee who has no potential and capability.
On the basis of global business employee engagement at workplace they develop
structure and effectively provide information in the market that which things they mainly
requires for the business.
Evaluate the recruitment practices in the company
Recruitment process is technical aspect and company human manager develop this
approach for new employee engagement in the company. Human resource manger has potential,
and they have proper idea about which essential knowledge and skills requires for the completion
of particular task (Biron and et.al., 2021). Company's manager clearly decides that they recruit
employee how has 5, 10 and more years of experience. So on the basis of this concept they
prepare strategy and prepares framework for experienced people skills knowledge. And also they
hire experienced employee because they provide good salary to them. Netflix human resource
recruitment practices are as follows,
Recruitment process
Recruitment practices of Netflix is best because they clearly explain each and every
aspect what they majorly essential for the company when they hire new employee they primarily
consider that individual fit in their culture or not and secondly they consider they have technical
knowledge or not. Most of the employee when they give interview they have good confidence
but when company provides them task and give them technological tools then they not perform
well so company mainly prepares structure and take some practical solutions for knowledge

about they have potential to survives, and they have personality to engage with the company's
culture. They put technical questions and ask them for answer.
 Company's HR manager explain that they require this technical skills and communication
skills, and they recruit freshers because they thought they have new advancement, and
they know better technology.
 Next they take interview, and they not consider their educational skills they only ask
them about technical variations.
 Completion of this task they select employee who has great potential, and they have some
knowledge about advance technology and who has great interest in this filed.
 They prepare questions, data framework, structure about real word problems impacts on
the business activity.
So overall this recruitment process company applies, and they maintain their business
performance on the basis individual skill information. Also, company applies this recruitment
process because they only focuses on the technological skills. By this helps in evaluating
employees efficiency that he /she is capable according to job requirement or not. From following
all steps of recruitment determine perfect candidate for job after qualifying all process right
people is select for this job profile. Also, increases company productivity and profitability to
attract customers in firm by adapting different style for them. Such as by preparing questions
with proper structure and identify real life problems that influences company activity.
3.
Causes of HRM practices in organization and Implication of the challenges:
Identification of issues and problems by Netflix : It has faced various problems that are
explained below to determine this;
Competition- Due to increasing number of competitors in market company has to face problems
related to decrease in productivity, decline rate of customers in their by which organization
profitability also falls with the affect of rising competition. Other app is providing more to its
prime members by charging no extra cost for it from that their consumer declines.
Cost of content high- Due to this, it contains high risk with developing new content and Netflix
has very limited number of experience in the area. It occurs because they are collecting large
amount of gratified things from which they determine issues. Also, faced problem of high

content that is drawback for company. To enhance their profitability they have to focused on
these to increases their sustainability in market by providing these that may help them to
developing efficiency and achieving organizational objectives of Netflix.
Several Packages- Different offers give by competitors also decreasing customer by which
organization affected in way that decrease their cost of productivity and efficiency in market. For
example, Amazon is providing many facilities that included free shipping charges etc by which
customer are attracted towards their various sources that is beneficial for peoples. From this
customer goes toward this site rather than Netflix because they are not giving such facilities to
attract consumers. From this many consumers are attracted towards other business because they
are offering more as compare to this company. By providing several packages to their customers,
company have to build their infrastructure in it by enhancing packages and offerings for
organization.
Human capital theory- In context to company, it determined that by focusing on workforce,
diversity systems, framework which prepared to meet program demand for employees and
experienced candidates. From this they may increase their efficiency by implementing
individuals knowledge, experiences and skills to attain organization goals and targets. This
theory is new for finance and economics. For achieving or overcome from issues this approach
helps in by using human resources to increase its sustainability in market that determine labor
capital is not compatible. They are treated to developing innovation in their work that helps in
succeeding business objectives by this concept. For example, motivating employees may rise
peoples creativity to put in their work from which they apply in company. That refers human
being may rise their potentiality in several ways such as by providing training to employees in
order to make them more effective for organization which helps in improvising performance of
individuals to increases profitability in market. This model may be estimated from various sides,
therefore it considered as one of dimension only. Particular believes that such concept would
enhance correlation between physical and mental abilities of employees. Also, define learning
and training programs for personnel, that is more beneficial because it identifies which skills are
most developed among individuals and one of least that is established.
Organizational Behavior Theory- It studies human behavior and considered as concept that
determine action or attitude of behavioral science. That exercise behavior of group, individual
and framework of management to achieve aims and objectives of Netflix. Beneficial to

understand this approach because it helps in improving attitude of employees and action towards
their leader to analyze that firm is considering this concept or not for enhancing the efficiency or
profitability. In these there are three approaches that considered in company that are bureaucracy
elaborate highly specialized of labor from their hierarchy, scientific and process management
concept helps in developing approach for every factor of work. This concept is helps to
determine why individual act in specific ways within company, created with purpose of
reestablish groups, modifies their framework or for evaluating employee performance in order to
achieve targets. It studies human behavior in setting organization, knowledge about its would be
useful in improving management effectiveness. Also, investigates people's emotions and
attitudes, performance in teams, systems , structures of firm. That helps to explore and provide
an understanding of all elements which are necessary to create an effective and successful
organization.
There are five models of it that are; Autocratic model which is based on strength, power and
delegated authority to motivate business expertise from which who has less subordinate skills is
determined. Custodial study helps in providing economic security through earning, rewards to
peoples who working on organization. Then comes supportive model that aims at encouraging
leadership that build employee more productive in order to develop their ideas in innovative
way. Collegial model promotes teamwork that focusing on group work that emphasizes by
considering each idea, thoughts best will work towards achievement of efficiency.
Contingency theory- In regard to Netflix, this strain discipline of organization behavior because
range of study that may help in building employee performance. Through which may access in
managing predict behavior of employees so that organization identifies way by which employees
motivated. That there are particular elements that may affect direct relationship between
variables. For example, if leader facing circumstances in where, always see particular individuals
that shows late to work from this management evaluate and said to them that they have to be on
time. In accordance to that recognize person's performance. It provides that there is no difficulty
in order to organize department to lead business for making correct decision for firm for
achieving company's productivity and profitability. By doing this it helps in motivating
individuals by giving them faith they can do more, has potential to do so from establishing their
inner creativity and innovatory in workplace. If any failure occurs due to researchers to arrive at
any results around leadership in mid center to lead study of situational analysis by which it

examined on the basis of these approach. It proposed that effective group performance in regard
to Netflix, that match between manager's and degree to which situation gives control to leader.
Human resource management develop multiple practices abut they have some causes as
well because human resource want some improvement, and they have some issues from the
given practices (Hauff, 2021). They only apply new employee engagement which has experience
but this practices is not good because company not gives chance to freshers, and they also have
great skills and knowledge.
Next is centralization policy which refers to the term where company involves in the
planning and decision-making process. They not apply solution of any problem with help of
employee, and they only takes decisions and solution from head office and leaders. So this
company has to focuses on this practice and develop solution and decision from their employee
as well because they have more knowledge about advancement.
Growing international business expansion is major challenging aspect and it generates
causes in human resource practices, multiple companies not wants to the business expansion in
their country because it impacts on the economy (Muisyo and Qin, 2021). Every country has
different rules culture so management of human practices and selection of new employee is
difficult task. But they develop their knowledge of external factors of other country which is the
best option for the management of effective business expansion. Company consider theories like
organizational behavioural theory, human capital theory, motivational theories for their effective
human resource expansion.
CONCLUSION
It has been summarized form the above reflective study that Netflix highly consider and
effectively develop policies, strategic, practices for new employee engagement, and they mainly
considered development of experienced employee in the business. Company provided great
practices for effective human management. This study has been given idea that when Netflix
company wanted to recruit new employee that they develop proper structure and clearly
explained questions, they collect data what they mainly require for human resource development
in different at global level, they face communication barrier, individual behaviour, way of work
process and many more. This report has been provided information about Netflix organization
manager and owner consider ad develop multiple approaches like they give salary to their
employee higher than other company, they develop training and performance management, if

employee perform well, and they complete their task on the time they provided benefits, rewards
to individual, sick leaves, holidays and many more. Apply team work and develop coordinate
between employee and develop new time off policies for effective employee engagement.
RECOMMENDATION
It has clear that organization manager face multiple issues and challenges if they not
applied theories and practices for their human resource management. So they have to apply it,
and they have to consider work benefits mainly because it is the only option which will improves
the quality of employee work performance and his human resource engagement practices can
improves the overall business activity and productivity that is the reason Netflix consider this
practice.
REFERENCES
Books and Journals
Ansari, N. Y., Farrukh, M. and Raza, A., 2021. Green human resource management and
employees pro‐environmental behaviours: Examining the underlying
mechanism. Corporate Social Responsibility and Environmental
Management. 28(1). pp.229-238.
Biron, M., and et.al., 2021. Structuring for innovative responses to human resource challenges: A
skunk works approach. Human Resource Management Review. 31(2). p.100768.
Hauff, S., 2021. Analytical strategies in HRM systems research: a comparative analysis and
some recommendations. The International Journal of Human Resource
Management. 32(9). pp.1923-1952.
Muisyo, P. K. and Qin, S., 2021. Enhancing the FIRM’S green performance through green
HRM: The moderating role of green innovation culture. Journal of Cleaner
Production. 289. p.125720.
Srivastava, S., 2021. An Analysis on Human Resource Management Practices and Job
Satisfaction with Special Reference to IT Company. Shanlax International Journal
of Economics. 8(3). pp.21-30.
Vrontis, D., and et.al., 2021. Artificial intelligence, robotics, advanced technologies and human
resource management: a systematic review. The International Journal of Human
Resource Management. pp.1-30.