Organizational Behavior Analysis: Reed Hastings and Netflix

This report offers a comprehensive analysis of Reed Hastings, the CEO of Netflix, focusing on his leadership qualities, including his transformational leadership style. The paper explores his innovative approach to employee compensation, emphasizing generous severance packages, flexible leave policies, and a focus on "digital content." It highlights his philanthropic activities and ethical stances, such as abstaining from associations with individuals accused of misconduct. The analysis also delves into his strategic decisions, such as increasing investment in original digital content, which has significantly contributed to Netflix's subscriber growth. The report discusses Hastings' emphasis on "freedom and responsibility," his analytical approach, and his ability to identify and capitalize on market demands through creative marketing and digital strategies. The conclusion summarizes his contributions as a charismatic and analytical leader whose decisions have greatly impacted Netflix's global popularity and success.

Running head: GLOBAL LEADER: AN ANALYSIS
GLOBAL LEADER: AN ANALYSIS
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1GLOBAL LEADER: AN ANALYSIS
The respective paper is an analysis of the contribution (both positive as well as negative)
of a business leader, the leadership quality he/she exhibited or exhibits, the strengths and
weaknesses of the respective leader and his/her contribution towards the business where he/she
belongs to.
The business leader which has been chosen for the respective essay is Reed Hastings who
is the CEO of Netflix, which is an international entertainment application that is viewed
worldwide by a diverse global population. Reed Hastings was born in 1960, educated in
Bowdoin College of America where he passed out as a graduate in mathematics. The main area
of focus of Reed Hastings in promoting Netflix is emphasizing on “Digital Content”
(Fortune.com, 2010). During the early years of Netflix, Hastings had focused on innovative way
of compensating his employees. The generous severance packages of the employees of Netflix
are one of the reasons why the respective leader is famous for in the contemporary arena of
entertainment business. The leadership style which Hastings follows is “transformational
leadership” where he works upon the innovative ideas and modifications for his company and
influences his employees to materialize such changes. He had been showing flexibility in sick
and vacation leave along with maternity and paternity leave. Hastings is also known for his
philanthropy enthusiasm and activities. Recently, Hastings had been investing to start up a $100
million philanthropic fund that would encourage and assist educational institutions and
movement. He had assisted United Negro College Fund and Hispanic Foundation of Silicon
Valley area of America in order to provide a helping hand to the racially diverse children and
students in attaining proper education (Fortune.com, 2010).
Hastings had been completely abstaining from Harley Weinstein’s production houses and
institutions as Weinstein was alleged for sexual abuse. With the help of such decisions, Hastings

2GLOBAL LEADER: AN ANALYSIS
had been clear to his employees and admirers about his strict principles of respect and integrity
for his company as well as his employees. Such decision provided Hastings, a landmark position
in the globe as a positive business leader. He has increased his investment on original digital
contents which has proven to be tremendously beneficial and speculated to be overshadowing
Amazon in terms of number of subscribers. The “travel policy” which has been introduced by
Reed Hastings for the employees who are working under him is remarkable (Pinder, 2014). The
creative intelligence and transformational abilities are the pioneering capabilities of Reed
Hastings which is the reason for his as well as his company Netflix’s massive popularity across
the globe. Hastings, apart from being a charismatic leader, is also an analytical task master as
well who believes in the factor of “freedom and responsibility”. Hastings is very particular about
the employees who are under him and demands superior quality of work while providing a
plethora of incentives (monetary and non-monetary) to the employees in order to keep them
motivated towards working in the organization (Fortune.com., 2010). Hastings’ exceptional
capability of observing and creating a need or demand, designing a plan according to the
psychology of the society, introducing the plan in the market place with innumerable and
remarkable creative advertisement methods and collaboration with famous social media
platforms as well as employing digital marketing experts has given a special leverage to Netflix
by the whole world (Hbr.org., 2014).
The respective paper concludes to be an analysis of the contribution (both positive as well
as negative) of a business leader, the leadership quality he/she exhibited or exhibits, the strengths
and weaknesses of the respective leader and his/her contribution towards the business where
he/she belongs to. The business leader chosen in the respective essay was Reed Hastings, the
CEO of Netflix, which is a famous entertainment application across the globe.

3GLOBAL LEADER: AN ANALYSIS

4GLOBAL LEADER: AN ANALYSIS
References:
Pinder, C. C. (2014). Work motivation in organizational behavior. Psychology Press.
Fortune.com., (2010). Available at: https://fortune.com/2010/11/18/reed-hastings-leader-of-the-
pack/
Hbr.org. (2014). Available at: https://hbr.org/2014/01/how-netflix-reinvented-hr