Netflix HR Policy Analysis: Strategies, Advantages, and Disadvantages

This report provides an analysis of Netflix's HR policies, exploring its evolution from a mail-order DVD service to a leading media streaming provider. It highlights key strategies, including talent management, frequent performance assessments, and fostering a culture of freedom and responsibility. The report examines the company's core values, such as judgment, curiosity, and communication, and discusses how these values contribute to a high-performance environment. It also analyzes the competitive advantages gained from these policies, including the rise in subscriber base. The report also explores the challenges in implementing Netflix's strategies, such as potential issues with transparency, and provides insights into how other organizations can adapt these practices to improve their own HR approaches. The analysis includes references to key sources like the Culture Deck and Harvard Business Review articles.

NETFLIX HR POLICY
AN ANALYSIS

About Netflix
• An American media service Provider
• primary business is the subscription based
streaming service.
• The main platforms includes smartphones, digital
media, tablets, video game consoles and Smart TVs.
• In August 2010 the company reached a $1 billion to
stream from various productions.
• Is noted for their culture desk, an improved HR
strategy.

WHY NETFLIX?
• Was originally a media service provider and production
company which was a mail order DVD service.
• The company struggled hard and Patty McCord, the
then talent recruiter lifted the status of the company
from just a startup to a stable one.
• After her departure, the company started focusing on
new HR company and on talents from entertainment
industry and international market.
• Focused on maximizing the potential goodness.
• By 2013, the subscriber base grew around 29 million.

 Valuing the values- the company has the vision of the living up the
values. Leaders and managers set the example first which other
follows.
 Performance is the key- “High performance people are generally
self improving”- Culture Deck, 2009. the employees should act as a
sport team rather than family.
 Balance between Freedom and responsibility: the company holds
the view that responsible people strive for freedom. Giving them the
freedom will ensure innovation and creativity.
 Giving a proper control: providing a
Context to act is more beneficial than
controlling them.
Main perspectives re-
invented

 Alignment of goals: the company believes in
setting a common goal without a strict
supervision.
 Top payment in market: the company focuses on
paying the best market rate for retaining the
talent.
 Promotion and development: the company
conducts an informal regular conversations about
performance and focuses on the area of
development.
Main Perspectives re-
invented

 Judgment
 Curiosity
 Communication‘
 Passion
 Selflessness
 Courage
 Innovation
 Integrity
 Inclusion
 impact
Main Values of Netflix as
counted by Culture Deck in 2018.

Analysis of Netflix HR strategies

 Hiring the best employees and chucking off the inefficient:
If a company is new, particularly a startup, it has to build
up it’s reputation. Managing the employees is thus
essential. An organization can take a cautious hiring
strategy to understand the synthesis of the organizational
goal and the individual goal and motivation.
 Frequent performance assessment: the formal yearly
appraisal or assessment can often be too ritualistic and
prolonged. Frequent assessment of performance would
help them to fix the problem before it get worse.
 Trusting the employees: the company can incorporate a
familial attitude but, at the same time retain the
mentality of competition. While competing will help in
improving, the familial attitude will generate the sense of
autonomy that will motivate the workers.
How the values can be
incorporated in other Organisation

 Can form a separate talent
management: companies can keep a
separate talent management sector,
for the proper execution of the high
performance.
 Can offer workshops and trainings
headed by the leaders to make the
employees understand the benchmark.
 Forming cohesive and powerful teams
within the structure to create and
establish the corporate culture.
How the values can be
incorporated in other Organisation

 there is always a pressure of being kept or
fired at any moment. This can affect the work
culture as well as quality.
 the supporting of such culture of fear
sometimes drive good work but often make a
negative impacts.
 the motto of transparency or apology or the
encouragement of harsh feedback is often not
acceptable by some employees.
 Many companies, specially the startups cannot
afford to give the best market price.
Problems in incorporation of
Netflix Strategies

 Judgment: the selection of right candidate, deciding the
hiring or firing will increase the judgmental qualities of the
organization that would help them to sustain in the
competition.
 Communication: the frequent appraisal, speaking up with
the employees enhances communication. Communication
is considered to be the key for the success of organizations.
 Curiosity: the constant struggle for development will
enhance the curiosity to explore more among the
employees.
Competitive Advantage gained
from the policies

Appendix
FIG. 1 THE RISE IN SUBSCRIPTION OF NETFLIX