Analyzing Human Resource Management Strategies at Netflix

This report provides a comprehensive analysis of Netflix's human resource management (HRM) practices. It begins by differentiating between learning, development, and training, and then delves into the specific training methods employed by Netflix. The report assesses the benefits of learning and development activities in terms of the organization's competitive advantage. It then explores reward management, examining the significance of both extrinsic and intrinsic rewards for employee motivation. Furthermore, the report analyzes Netflix's performance management system, evaluating its relevance to the company's profitability and productivity. The analysis highlights the importance of a balanced approach to HRM, emphasizing the impact of effective reward and performance management on employee satisfaction and organizational success, with specific examples from Netflix's unique approach to employee management and development.

Blog article where evaluate the effectiveness
of key practices of Human Resources
Management to Netflix

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The difference between learning, development and training......................................................3
Training process and assess the different training and development methods used in netflix....4
Evaluation of the benefits of learning and development activities to the organisation's
competitive advantage.................................................................................................................4
The concept of reward management and the importance of extrinsic and intrinsic rewards to
employees in an organisation......................................................................................................5
Concept of performance management and reflect on the performance management system
used in Netflix.............................................................................................................................6
Evaluate the relevance of the reward and performance management system to the
organisation's profitability and productivity...............................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Human resource management is effective management of human resource of an
organisation in way that they help business to gain advantage over their competitors. Training is
a method in which an employee is taught specific skills and knowledge in order to improve
productivity (Sutheewasinnon, Hoque and Nyamori, 2016). Development is a vast concept which
includes growth of employee in future and not just their present performance. In context to this
report, Netflix is the organisation chosen. Human Resource practices in Netflix, various practices
of training and development followed by Netflix are discussed further in this report.
MAIN BODY
Learning, Development and Training:
The difference between learning, development and training.
Basis Learning Training Development
Meaning Learning refers to
gaining information
and retaining it (Shek,
Ng and Law, 2017).
Training means
developing a certain
set of skill in a person.
Development is a
process to achieve a
state that is desired for
employee or
organisation.
Focus Learning focuses on
just topic about which
information is to be
provided.
Focus in training is on
a specific set of skill
which an employee
needs to posses in
order to complete his
task.
Development focuses
on overall growth of
individual as well as
organisation together.
Time period Learning happens in
present and it targets
on present conditions.
Training is not for
long term as well. It is
urgently required by
an individual to gain
skills and perform his
job efficiently.
Development is for
long term. It mainly
targets on what will an
individual and an
organisation be in
future (Kim and Rho,

2018).
Scope Scope of learning in an
organisation is very
narrow. Development
and training both
include some or other
learning.
Training's scope is
wider than that of
learning but narrower
than development.
Training is necessary
for development in
future.
Development has a
very wide scope.
Training and learning
both are included in
development. For long
term development
training is very
essential as it
improves skill of an
employee.
Training process and assess the different training and development methods used in netflix.
Training process refers to a set of steps which is required to be followed systematically in
order to make an effective training program (Liu and et. al . 2017). There are a series of activities
performed in order to improve skills, behaviour and attitude of an employee in order to perform a
specific job.
Netflix believes in order to provide proper training it is necessary to provide proper
instructions which will maximize learning. This is important to be applied on roles such as
customer service reps and sales associates. Netflix uses “in class” method in which a group of
similar trainees are left in a class who then form clusters and help each other learn.
Another method used by Netflix is prediction of high performer. In this an identification
of employees who are to be top performers in future is made. Also a group of employees who are
expected to be late top performers are identified. Training are given to groups based on their
prediction then. It saves time of training already skilled employees and more time is provided to
those who require more training.
Evaluation of the benefits of learning and development activities to the organisation's
competitive advantage.
Training and development are beneficial for organisation, employees and workplace
environment. It also results in providing competitive advantage to business as imitating human

resource is not possible for any organisation (Kim and Kang, 2016). There are a list of benefits
of development and training such as it increases job satisfaction and morale among employees.
Netflix provides its employees with various benefits such as training for engineers, identification
of leaders, jobs to freelancers. Netflix don't even requires graduated people for job, skills in an
individual are enough to get a job in Netflix. Training and development helps to motivate an
individual. While training it becomes much easier for an employee to adapt new methods and
technologies. Employee turnover is also said to reduce when an employee is properly trained.
Training and development results in overall increased productivity and increased financial gain
to an organisation. It provides a competitive advantage over its competitors too. Training and
development processes are designed specifically for different organisations and its employees.
The quality of training depends upon employee who are provided training and on trainer who is
training those employees. Even if a competitor copies training programme to bring equally
skilled trainer or equally unskilled employees to train will be impossible. This reason of human
tendency brings competitive advantage to organisation.
Reward and performance management-
The concept of reward management and the importance of extrinsic and intrinsic rewards to
employees in an organisation.
Reward management refers to forming and implementing strategies as well as policies
which aim at rewarding people fairly and in consistency with the task they perform and their
value to business. Rewards are generally distributed into two categories intrinsic as well as
extrinsic. Extrinsic rewards are basic pay, bonuses, promotion, recognition etc. Whereas,
intrinsic rewards include motivation (Gasca-Hurtado and et. al. 2016). It comes from passion or
interest within an individual. Intrinsic rewards include achievement, personal growth, challenge,
self-esteem, praise etc. It is seen that individuals are very sensitive regarding their pay and
bonuses. Motivation is confirmed to be achieved from pay rather any other reward. It has been
analysed that financial benefits motivate a person more than any other reward. It is beneficial for
a manager to link employees monitory expectation to goals of organisation. This would provide
benefits to both employee and organisation. Intrinsic rewards are also equally important because
only extrinsic rewards does not provide satisfaction to employee and gradually its effect
decreases. Intrinsic rewards gives opportunities to both employer as well as employee to
challenge themselves and work beyond their expectations. Intrinsic reward is said to be a win-

win situation for both employee and organisation. It is necessary for an organisation to have a
perfect balance of both extrinsic as well as intrinsic rewards. Only one of them will not work of
any business. It is important for employees to have monitory benefits as well as satisfaction of
working in an organisation. Anything not up to mark in these two will lead to dissatisfaction in
employees.
Concept of performance management and reflect on the performance management system used
in Netflix.
Performance management refers to process which makes sure that all work and activities
in an organisation are diverted towards organisational goal in an effective and efficient manner.
In context of Netflix, performance management is built up on idea stating context and not control
(Kosinov and et. al. 2016). This means that it is required by managers to give employees learning
of context which will enable employees to take decisions on their own. It is on manager to
provide best workplace environment to employee. Netflix now provide frequent feedbacks rather
than annual reviews. Managers in Netflix do not set goals for employees rather they make them
aware about companies objectives. In this way managers at Netflix use performance
management in their organisation.
Evaluate the relevance of the reward and performance management system to the organisation's
profitability and productivity.
It is important for an organisation to have an effective and efficient reward and
performance management system. There are a number of benefits which an organisation gains
while operating with a flawless system including both of these. Profitability and productivity of
an organisation runs hand in hand. With increase in productivity revenues increase which leads
to increased profitability in an organisation (Tripto, Assaraf and Amit, 2018). When a company
have an effective reward management system with various options ranging from intrinsic to
extrinsic rewards every employee will work to their best. Rewards will increase profitability as
employees will complete their targets, bring in new business etc. Firms these days also have
performance management in it feedbacks are given to employees based on jobs done by them. In
order to judge work quality of work is major criteria rather than just checking on numbers
achieved by individual. This helps to improve productivity of employee. This evaluation makes
it clear that reward and performance management in an organisation have a direct impact on
profitability and productivity. Netflix have an advance system for reward and performance

management. They judge based on work done and rather than giving individual goals mention
organisational goals to employees. This helps employees as they feel less burdened by
expectations of their managers. They do not need to work under any pressure which helps
organisation to increase its overall performance in terms of profitability as well as productivity.
CONCLUSION
It can be concluded that learning, training and development have different meaning and
they also differ on the basis of nature and scope. Training process is an important part of an
organisation. Netflix uses on the job training and forming clusters in order to train their
employees to achieve organisational goals. These learning and development activities also help
Netflix to gain competitive advantage. There are various intrinsic and extrinsic rewards provided
to employees in Netflix which results in employee satisfaction. When satisfied employees help
attain maximum profitability and productivity to the organisation along with proper reward and
performance management system.

REFERENCES
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