HRM Effectiveness at Netflix: Learning, Rewards, and Performance

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Netflix. It begins by differentiating between learning, development, and training, exploring the training processes and various development methods used within the company, such as group discussions, role play, and vestibule training. The report then evaluates the benefits of these learning and development activities in contributing to Netflix's competitive advantage, including improved staff performance, enhanced employee satisfaction, and increased innovation. The report further examines reward and performance management, defining reward management, and the importance of extrinsic and intrinsic rewards. It also discusses Netflix's 360-degree performance management system and evaluates its relevance to organizational profitability and productivity. The report concludes by highlighting the importance of HRM activities in fostering employee growth and contributing to the overall success of the organization, referencing relevant academic sources.

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Human resource management can be referred to as the practice of effectively managing
personnel belonging to an organisation through the implementation of strategic theories and
approaches. Human Resource Management practices are quite crucial for a company as they
deal with enriching the current knowledge and competence of personnel and making them
compatible with the external competitive world. The various HRM practices that take place
within an organisation on a regular basis are acknowledged to be training & development,
performance management & appraisal, learning, reward management, recruitment & selection,
inclusion & diversity and many more. NETFLIX is a globally renowned media service provider
based in America.
Learning, Development and Training
Difference between learning, development and training
Learning can be referred to as the process through which individuals belonging to an
organisation acquire new skill or knowledge or modify their existing knowledge base for the
betterment of one's professional personality.
Development is defined as the practice whereby growth of an individual takes place within the
confines of a company.
Training can be deciphered as the opportunity that is provided by a company to its employees
such that they can make themselves compatible with the operations of the company.
The major difference between the above aspects is that learning and development are long term
activities while training is an activity executed for the short run. Another difference is that
learning and development are career oriented activities while training is a job oriented practice.
Yet another significant distinction is that learning and development practices take place only for
a particular individuate while training takes place for a group of employees within a company.
Training process and assessment of the different training and development methods used in
organisation
Training process encompasses a systematic set of stages which are required to be executed with
a view to develop an effective training schedule. Training is an activity which is conducted with

the aim of enhancing the existing level of skills, knowledge and competence of personnel
belonging to a company. It provides assistance in shaping the behaviour of individuals in a way
such that they get persuaded to execute an activity.
A number of training and developments take place within the premises of NETFLIX with a
view to enhance the existing knowledge, skills and competence of the workforce. Such methods
are briefly discussed as follows:-
Group Discussion: Hereby, a number of individuals belonging to the company gather together
to have a discussion over a subject matter. All the employees herein put forward their views and
opinions about the subject. This leads to emergence of diverse set of opinions out of which the
most suitable idea or alternative is taken into consideration by NETFLIX.
Role Play: This is an interactive training and development activity whereby employees are
made to enact as someone else such as customer, interviewer, interviewee or any other role.
This makes the employee get knowledge of the situation in depth and thereby understand what
steps would be the best to be undertaken by them in order to ensure effective handling of the
circumstance.
Vestibule Training: This is a training which is given away from the actual workplace but the
settings in which the training takes place resembles a real job setting. This provides aid to the
employees in dealing with the situations as they take place in the workplace but away from their
actual work station. This reduces the burden upon individuals which is usually posed by
companies to perform productively while in their learning stage also.
Evaluate the benefits of learning and development activities to the organisation’s competitive
advantage
Learning and development activities are crucial for the attainment of competitive advantage by
a firm. Below discussed are a number of ways through which this takes place within the
confines of NETFLIX:-
Performance Improvement of staff:
The execution of learning and development activities within the premises of NETFLIX allow
employees to carry out their growth and development, thereby building confidence within
themselves. This leads to the enhancement of output delivered by personnel at the workplace.

Enhanced satisfaction among workforce:
When constant learning and development activities take place, they tend to enhance the
satisfaction level of the employees. They lead to creation of a positive atmosphere within the
confines of NETFLIX instilling a sense of motivation among the workforce to carry out
activities as per the organisational requirements.
Improved consistency:
With robust learning and development activities taking place, the workforce tends to get a
consistent experience as well as background knowledge-base of the organisation. This results in
enhancement of business efficiency of NETFLIX, thereby resulting in financial gain to the
enterprise.
Inflated Productivity levels:
As a result of development sessions being conducted within NETFLIX at rapid intervals of
time, the increment in productivity of employees is witnessed. This further leads to attainment
of organisational goals and objectives within due course of time.
More opportunities for Innovation:
With extensive investment done by NETFLIX upon learning and development, the entity is able
to instil a sense of creativity among the employees. This helps them in coming up with unique
and innovative ideas that can make the company reach to top.
Reduced Staff Turnover:
Learning and development belong to the self actualisation needs of Maslow's hierarchical
pyramid of needs. It would not be wrong to state that when a company extensively invests in
both of these activities, it is able to instil a sense of loyalty within the workforce towards the
organisation. NETFLIX realises the importance of the same and thus, invests heavily in such
activities. This helps in motivating the employees and retaining them for a long period of time
in future context.
Increase the goodwill of corporation:
Putting a learning and development strategy in place develops the brand as the one which
encourages graduates and mid-career changers to join. New recruits find the opportunity of
development attractive as they will be looking to improve their skills and openings in the
industry.

Reward & Performance Management
Concept of reward management and the importance of extrinsic and intrinsic rewards to
employees and the organisation
Reward management can be referred to as the policy, strategy or process executed by an
organisation with a view to make sure that the contribution made by employees to the company
is effectively acknowledged and rewarded. In other words, it is defined as the procedure through
which formulation of such strategies take place which aim at rewarding employees in a fair and
equitable manner on the basis of the performance delivered by them and value contributed by
them to the company. It is considered as a strong motivational tool which is implemented by
companies across the globe with a view to appreciate the efforts and initiatives taken by
personnel belonging to a firm.
Rewards can be categorised into extrinsic as well as intrinsic. The former category
encompasses the tangible types of rewards such as salary as well as benefits. On the other hand,
the latter consists of non tangible benefits such as recognitions, award, certifications, social
relationship, fringe benefit, promotions and many more. Intrinsic as well as extrinsic rewards
hold extensive importance for company as well as the individuals working within it. Rewards
tend to enhance the productivity of employees by instilling a sense of motivation within them to
work better in order to get recognised or rewarded. Whereby the productivity levels of
employees get enhanced by a significant margin, it automatically implies enhanced scope for
achievement of organisational goals and objectives within due course of time.
Concept of performance management and reflect on the performance management system used
in your organisation
Performance management is acknowledged as a management tool used by companies with a
view to provide assistance to managers in monitoring as well as evaluating the work of
employees. The goal of this human resource management practice is creation of a positive
working atmosphere for employees so that they can perform by utilising their potential for
maximisation of individual as well as organisational output. This system helps to ensure that the
work of personnel is aligned with the long term goal of the enterprise so that it can be attained

in predefined course of time.
NETFLIX makes use of 360 Degree face to face performance management system whereby an
employees derives reviews upon their performance from other individuals belonging to the
company. This system is quite effective as it provides true and fair feedbacks to each and every
individual working within the confines of NETFLIX on the basis of performance delivered by
them. This provides assistance to the employees in enhancing their existent level of output and
giving their significant contribution towards attainment of corporate goals and objectives within
predefined course of time.
Critically evaluate the relevance of the reward and performance management system to the
organisations’ profitability and productivity
Performance management keeps a track upon the output delivered by the employees within an
entity. Further, reward management seeks to recognised and award the deserving individuals
financially and non financially such that they continue to work in the same manner in future
also. Thus, reward and performance management system instils a sense of motivation among
the employees, encouraging them to give their best performance. In an instance whereby all the
individuals belonging to a corporation work in an effective and efficient manner in order to be
recognised and rewarded, this results in increment in their current level of productivity. The
collaborative efforts of employees leads to attainment of objective and goal of NETFLIX within
due course of time. This inflates the revenue stream for company and also enhances the
profitability margins.
The various types of Human Resource Management activities or practices that take place within
an organisation shape the employees in a manner such that they can give their full potential to
achievement of corporate goals. Learning, training and development are 3 practices which
provide assistance to individuals in facilitating their growth by enhancing their knowledge. This
makes them competent enough to pursue the activities of company as per the organisational
requirements. Reward and performance management seek to motivate the employees of a
company so that they utilise their competence and skills for accomplishment of corporate goals
and objectives. This leads to increment in their productivity levels and profitability of

corporation.

REFERENCES
Books and Journals
Al Karim, R., 2019. Impact of different training and development programs on employee
performance in Bangladesh perspective. International Journal of Entrepreneurial
Research, 2(1), pp.8-14.
Davis, P. and Amirbekova, D., 2019. Assessing the challenges to employee training and
development in Sub-Saharan Africa: a qualitative exploration. International Journal of
Human Resources Development and Management, 19(3), pp.266-280.
Berkley, R. A. and Kaplan, D. M., 2019. Strategic Training and Development. SAGE
Publications.
Gough, J., 2019. The training and development of careers leaders in England: Reflections on
provision. Journal of the National Institute for Career Education and
Counselling, 43(1), pp.19-25.
Perkins, S. J. and Jones, S., 2020. Reward management: Alternatives, consequences and
contexts. Kogan Page Publishers.
Heninger, W. G., Smith, S. D. and Wood, D. A., 2019. Reward type and performance: an
examination of organizational wellness programs. Management Accounting
Research, 44, pp.1-11.