HRM Practices of Netflix: Analysing the Hire and Fire Policy
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This case study analyses the successful HRM practice of Netflix's hire and fire policy, recruitment practices, challenges, opportunities and recommendations for sustainable development.
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TABLE OF CONTENT INTRODUCTION..........................................................................................................................3 MAIN BODY...................................................................................................................................3 Successful HRM practice of Netflix âhire and fireâ policy.........................................................3 Analysation of the recruitment practices of Netflix.....................................................................5 Challenges and opportunities Netflix...........................................................................................6 Recommendations........................................................................................................................8 CONCLUSION................................................................................................................................8 REFERENCES..............................................................................................................................10
INTRODUCTION Human Resource Management is thestrategic approach to an effective and efficient management of the people of the organization for gaining competitive advantage. The Human Resource management is designed in a way that it can maximize the employee performance in service of an employer's strategic objectives (Lengnick-Hall, Neely and Stone, 2018). This case study is on Netflix which is one of the worlds leading internet subscription services provider company. This organization offers TV series, documentaries and featured films in various different languages. In this project the policy of Netflix in expanding its business over the international business has been discussed. In this analysation the organizational method of hiring and firing of this organization will be discussed. This project will also help in the analysation of the effectiveness of the organization. The effects which this policy will have on the culture of the organization will be discussed. In this project the analysation of the recruitment practices of Netflix is going to be done. This project will also help in analysing the challenges and opportunities which provides effectiveness and efficiency to the business of the organization. It focuses on the ethical practices and performance of the HRM of Netflix. This project will also provide recommendation to this organization for effectively improving its practices and policies. MAIN BODY Successful HRM practice of Netflix âhire and fireâ policy HRM policies and practices is defined as the attitude with which the organization expects and values its individuals on how they are treated while serving as the point of reference for the development of the organization. In the HRM practices the decision made for the people in the organization for equal treatment among the individuals. Netflix as an organization has followed one very effective strategy which has led it to success, This policy of the organization was âhire and fireâ. As the name suggested in this policy the organization when hired individuals and fired the same amount of individuals simultaneously (GOEL and et.al., 2021). This organization focused on the only hiring those candidates which are experienced and offered high self-sufficiency from the employees. Netflix tried not to hire the fresh candidates as they desired qualified candidates which can fit into its structure very easily. It can be said that Netflix wanted only experienced candidates so that they can hire only those employees which
can easily fit into the culture of the organization. For this policy Netflix the hiring was centred around only the best individuals which provide the premium performance for the organization. Hiring of the best individuals ensure quality from the employees of the organization it is considered to be very helpful for the high-performance at the workplace. Netflix is therefore able to achieve success and also develop strategies which can be very helpful for the organization for increasing is productivity and also development of its brand image. The selective hiring of the organization is said to be one of the most important aspect of the organization which can help them in maintaining the strong and selective hiring process. Only hiring the employees cannot be any good for the organization as it will create dis-balances in the structure of the business. Thus, along with the hiring this organization also fire the less productive individuals for ensuring that the quality of the organization can be maintained. It is also another way in which Netflix makes room for the new hiring which as per the Netflix plan is to bring success to their operations (Jatoba and et.al., 2019). Netflix is so active in its firing that it has made some targets which it needs to meet every month in the firing of individuals. In general the employees needs to be worried about the lack of job security however, it was noticed that it was quite a common phenomenon in the organization which can help the organization achieve its results. In USA this organization has been very successful for the last decade. This has been because of many reasons which has allowed Netflix to grow as strong as it has over the years. Many policies were utilized by this company for gaining success. The first policy of this organization was regarding the hiring process in which it identified that hiring the best individuals can bring success to the organization (Duggan and et.al.,2020). This happened as one of the films which were streamed on this platform won a Grammy award. This award was basically an achievement of the company but a way of promotions for Netflix services. Thus, this organization decided to hire those groups and individuals which can guarantee such success to the organization. This changed the thought process in the organization completely, and they started to believe that for hiring more of the best individual we need top create space in the organization and also fire of some existing employees which are not as productive for the organization. The result of his strategy was Netflix HR practices developed into this world- famous HR practice of hire and fire policy.
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Analysation of the recruitment practices of Netflix As discussed above the hire and fire policy of Netflix has been the reason success for the organization. This policy has also been a great influence to the company demanding the high self-sufficiency from the employees. The recruitment practices of the organization were also effected due to this policy. As a part of the recruitment practice the Netflix always had to keep the bigger picture in the mind (Youssif Abo Keir, 2019). Its main objective was to hire those individuals which can be productive and also provide the organization success in the term of awards which will help Netflix to grow its brand image. This has been the main Netflix objective since the beginning of its services in USA. Thus, Netflix looked for the best and experienced professionals which had the potential of improving the brand image of Netflix in the international market. The company avoided hiring new and fresh graduates as the company did not want to spend on training and development of those people. It hired only the experienced individual which can ensure the organization with productivity and also efficiency in their operations. For making room for the hirings in the organization these individuals ensured that can ensure this organization success in providing best services to the customers with their subscription. Netflix hired managers are relegated to simply passing the requisition of the recruiters for filling process (Engelsman and et.al., 2021). With the help of this the organization is able to gain complete control over the hiring process of the organization. Due to having such a cruel policy in the organization honesty is this business is considered to be sacred as its has ingrained the in the organization's culture from the beginning. This is why the Netflix has honestly as the part of their recruitment model. The employees are completely aware of the fact that they are going to being fired eventually by this organization. This creates a sense of competition amongst the employees which results in high productivity. For increasing the performance even further the managers of this company offer the hirings regular performance critiques which can help the mangers to learn different ways to communicate with their candidates and also treat the consultative process with both parties which are invested in each other's success. This organization has no force which stops the individuals from being fired as a part of the recruitment process (Zhuplev, 2018). Netflix team which recruits the best talents with top quality have total access to the information of the resources which can help the hiring process to go where is has rarely seen. The hiring managers
and recruiters do care about each other and their candidates and it's their partnership which leads to the best hiring and rapid scalability. This company also utilizes a digital platform known as the ledger which is useful for processing the information on everyone. In this online platform the hiring managers very quickly upload the requisitions for the recruits which is then broadcast across the many other platforms. This platform provides transparency to the organization which also enables it to hire better and create a very consultative environment (Aljumah, Nuseir and Alam, 2021). It records all the transactions which are history and also the future ones. The hiring managers and recruiters can also utilize this data for providing recommendations through rating and metrics which can help in forecasting the talent which this organization needs. This organization is considers itself to as the culture deck of the highlighted details of the human resources policies and culture. This HRM polices of recruitment of Netflix has been described in five words, âAct in Netflix's best interestâ, which help the organization to encourage the employees in relying on the logic and common sense which can be formal towards the polices (Torrington and et.al., 2020). Netflix for ensuring that the individuals choose this company as their first priority has made sure that they will get the best payment and holidays which they desire. All the company is concerned with is the performance of the organization. Challenges and opportunities Netflix Some challenges which the HRM practices of Netflix has to face in this organization are, Attracting the right candidates : In order to be efficient in the operation of the organization it is essential for Netflix to ensure that they are hiring the right candidates (Frosch, Warg and Lange,2021). It often a challenge for this organization as finding the right candidate require detailed screening. Engaging employees : Due to the culture of this organization it fails to develop strong relations with the employees as a result of which the organization fails to engage or qualify as good candidates which is often contacted in the regular basis by the recruiters. Building a strong employer brand : A strong employer brand is very important for an organization as it helps in the attracting and engaging better candidates. Netflix due to its fire and hire policy fails to develop such a brand.
Ensuring good employee experience : Due to constant hiring and firing in the organization creatinga strong employee experience is said to be very effective and influential in evaluating and offering jobs. The policy of this organization is said to be very determining in changing experience of the employees. One the other hand the opportunities for HRM of Netflix is regarding overcoming of these issues which will help them to improve on the issues it has to face (Ibrahim and Hassan, 2019). Thus, with the help of this organization is going to be able to increase its productivity even more. In order to overcome these challenges so that Netflix can make them its opportunities the following theories can be applied, Human Capital Theory : The human capital theory is relative to the finance and economics which the company seeks towards its incentive for seeking the productive human capital and also add to the existing employees of the organization. In this theory the human capital has been explained as the intangible value of the organization employees which is related to their educational attainment, knowledge, experience and also skills of the employees. This theory of human capital is relatively new in the finance and economics. It can be said that the organization can have an inventive growth to their production by adding new and better human capital to their workforce. The application of this theory in the management of Netflix can be done by influencing the importance of the human capital in the organizational culture. It is essential for this organization to understand that the employee are very essential for the productivity and efficiency. With the help of strong human capital an organization can not just influence the productive measures in the organization but also implement the strategies into the systematic tool of hiring and firing. The HRM practice of this company which is hire and fire needs to be altered as the result of this practice the organization tend to lose out on essential employees which is are rehired by the competitors can be issue to the organizational policy. Contingency theory : It is an organizationaltheory which claimsthat there are no better ways for an organization to ensure that there are no better ways for leading an organization to making better decisions (Fahmy, 2018). As per the success which the hire and fire policy of Netflix has provided the organization the suggestions of the contingency theory would be to make keep using this practice as it is very effective in the decision-making for the organization and also
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ensuring success. According to this theory better decision-making can influence the organization a lot for making sure that accepting the difference it can help the organization to improve the efficiency of the organization. Recommendations Netflix has been successful over the last decade with the help of its hire and fire policy in its HRM practices. These strategies have helped Netflix to provide the organization effectiveness in the organization and also implement strong culture of competition. The employees in Netflix are very influenced by the strategies of the organization due to which the competition between them has increased a lot. This increased competition in the organization has resulted in the growth of the production of this organization. However, in order to improve the sustainability of the development of this organization it is essential for this company to change some of its strategies for effective performance. It is important for the organization to differentiate between the employees which have the been very productive in the organization previously. Considering this data will help the organization to preserve those employees in the organization which are very crucial for the productivity of the organization (The most common recruiting challenges and how to over come them, 2021). This will also be an effective strategy to ensure that the organization will not lose its employees to its competitors. For improving the sustainability of this organization it needs to train its hiring team. The hiring teams needs the most experience for ensuring that they can level up the skills of hiring of this organization. It will improve the hiring process and also help the organization to make sure that they do not miss out on any productive employee. CONCLUSION With the help of this project it can be concluded that Netflix's hire and fire policy is the best HRM practice which it has utilized for several years now to gain competitive and sustainable development. In this project the discussion on the successful human resource practice of hire and fire policy has been discussed. This project also highlights the first HRM practice used by this organization in USA and how is that policy considered effective in its growth in the international market. This project also analyses the recruitment practices of the organization in Netflix. With the help of this project the analysation on the challenges and opportunities of effective and efficient development of HRM system has been realized. This project also utilized
theories like Human capital and contingency to utilize them for ensuring the organization sustainability in the towards its performance and ethical practices.
REFERENCES Books and Journals Aljumah, A.I., Nuseir, M.T. and Alam, M.M., 2021. Traditional marketing analytics, big data analyticsandbigdatasystemqualityandthesuccessofnewproduct development.Business Process Management Journal. Duggan, J., and et.al.,2020. Algorithmic management and appâwork in the gig economy: A research agenda for employment relations and HRM.Human Resource Management Journal.30(1). pp.114-132. Engelsman, W., and et.al., 2021. Traceability from the Business Value Model to the Enterprise Architecture: A Case Study. InEnterprise, Business-Process and Information Systems Modeling(pp. 212-227). Springer, Cham. Fahmy, K.I., 2018. Artificial intelligence and the future of work.The Undergraduate Research Journal.6. pp.11-22. Frosch, M., Warg, M. and Lange, M., 2021, July. HR-Management: Impacts from Service (Eco) Systems. InInternational Conference on Applied Human Factors and Ergonomics(pp. 280-291). Springer, Cham. GOEL, R., and et.al., 2021. Challenges to HR 4.0 in the Global Business Scenario.Financial Intelligence in Human Resources Management: New Directions and Applications for Industry 4.0. Ibrahim, W.M.R.W. and Hassan, R., 2019. Recruitment Trends In The Era Of Industry 4.0 Using Artificial Intelligence: Pro And Cons.Asian Journal of Research in Business and Management.1(1). pp.16-21. Jatoba, M., and et.al., 2019. Artificial intelligence in the recrutment & selection: innovation and impactsforthehumanresourcesmanagement.In43rdInternationalScientific Conference on Economics and Social Development(pp. 96-104). Lengnick-Hall, M.L., Neely, A.R. and Stone, C.B., 2018. Human resource management in the digital age: Big data, HR analytics and artificial intelligence. InManagement and technological challenges in the digital age(pp. 1-30). CRC Press. Torrington, D., and et.al., 2020.Human Resource Management. Pearson UK. YoussifAboKeir,M.,2019.ProspectiveonHumanResourcesManagementin Startups.Information Sciences Letters.8(3). p.1. Zhuplev,A.V.ed.,2018.Disruptivetechnologiesforbusinessdevelopmentandstrategic advantage. IGI Global. Online The most common recruiting challenges and how to over come them, 2021.[Online]. Available through:<https://resources.workable.com/stories-and-insights/common-recruiting- challenges>