Netflix's People Resourcing and Development Strategies Case Study

This case study report analyzes Netflix's people resourcing and development strategies, highlighting their firing and hiring strategies, transparent pay policy, and work benefit policies. It explores the internal and external factors, such as organizational culture, employee unions, political factors (Brexit), and economic factors (COVID-19), that influence Netflix's HR strategies. The report also examines the labor markets of the United Kingdom and the United States, considering employment rates, unemployment rates, and economic inactivity. Finally, it advises on how Netflix can position itself to be competitive in both labor markets, emphasizing technological friendliness and business opportunities. Desklib provides access to this and other solved assignments for students.

Project 1: Netflix Case
Study Report

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK-1............................................................................................................................................3
People resourcing and development strategies at Netflix ..........................................................3
TASK-2............................................................................................................................................6
Internal and external context Influence the Netflix's people resourcing and development
strategy........................................................................................................................................6
TASK-3............................................................................................................................................7
Labour market of United Kingdom.............................................................................................7
Labour market of United States..................................................................................................8
TASK-4............................................................................................................................................8
Based on good practices in People Resourcing and Development functions, advise how Netfix
could position themselves to be competitive in each of the two labour market.........................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource management refers to those management which is responsible for the
recruitment and selection of the employees in the organisation. The main goal of human resource
management is to employees the best talent in the organisation and enables the management to
achieve the returns of these talented employees. The human resource management not only
perform recruitment and selection function but also provide training to recruited employees so
that they can work smarty in the organisation. This report is based on the case study of Netflix
under which the strategies of human resource management are taken into consideration. This
report states people resourcing and developing strategies and internal and external context affects
the Netflix strategies.
TASK-1
People resourcing and development strategies at Netflix
It is very important for the management of the organisation that they develop effective
human resource strategies on their organisation. It helps the organisation to make their existing
employees motivates towards the organisation but also helps the company to attract new
employees towards the organisation (Rezwan, 2022). The management of Netflix is one of the
dynamic management and develops many strategies in relation to their human resource and the
brief discussion relation to the same are given below:
Firing strategy
It is one of the most popular strategy of the Netflix which is used by only few companies
of the world and Netflix is one of them. As per this strategy of the company, management of the
organisation has fired those employees from the organisation whose performance are not up to
the mark. Only those employees whose performance are favourable according to the company
will be stay in the organisation. The management of the Netflix has developed effective
benchmarks in their organisation so that the performance of the employees can be evaluated by
comparing them. The management of the organisation believe on the good performance of the
employee and fired the rest. The management has to face different types of criticism from the
market due to this behaviour but they placed on their strategy and becomes successful (Moore
and Kolencik, 2020).

Hiring strategy
It is related to those strategy of the company which is used by them to hire new
employees in the organisation. It is very important for the management of the organisation that
they develop effective hiring strategy in their business so that the talented employees can be
recruited in the organisation. The management of Netflix has developed unique hiring strategy
for their business which becomes the factor of success for the organisation. One of the unique
strategy of the Netflix is that the management does not hire the freshers from the market as they
only believe on the experienced employees in the organisation. All the employees in the
workplace of Netflix has considerable level of experience so that they can solve different types
of problems in the organisation (Mishra, Luo and Hazen, 2018).
The management of the Netflix has developed committee of eight member for the
interview of the new employee. This committee of the organisation has judge the new candidate
on different parameter such as decision making skills, communication skills, time management
and problem solving skills. This committee of the organisation has included different managers
and also some person from the top level executives. The decision related to the hiring of the
candidate are taken by these managers and the consent of all members are must because single
no from any member can lead to rejection of employee in the organisation.
Transparent pay policy
In the year 2015, the management of the Netflix has developed one of the most attractive policy
which is called Transparent pay policy. As per this policy of the organisation, the salary of every
employee of the organisation are transparent to other employees. Even the low level employee
can take the information about the salary of top level managers. The main motive of the
company behind this policy is to make the employee loyal towards the company and makes them
trust on the organisation. This policy of the company motivates the low performance employees
to make efforts so that their salary will be equates to their superiors. This policy also shocked
many employees after they knew about the salary of their peers and managers (Mier and Kohli,
2021).
Work benefit policies
The management of the Netflix has focused on the motivation and benefits of their employees so
they develop effective benefit policy in their organisation. The management of the Netflix has
decided to give standard paid time off to their employees. It provides 10 vacations, 10 holidays

and few sick leaves to their employees. These leaves provided by the company are very
beneficial because it enables the employees to satisfy their personal needs and provides time to
their family and friends. It is very important for the managers of the organisation that they stay
their employees motivated towards the organisation.
TASK-2
Internal and external context Influence the Netflix's people resourcing and development strategy
There are different types of internal and external factors are present inside and outside the
organisation which impacts the organisational policies and strategies. It is very important for the
management of the organisation that they effectively evaluates the impact of these factors so that
the counter strategies can be developed by the organisation. The policies and strategies of the
company are also impacted by different internal and external factors so it becomes compulsory
for the management of Netflix to analyse these internal and external factors:
Internal factors:- It is related to those factors which impacts the strategy and policy of the
organisation from inside the organisation (Maly-Bowie, 2019).
Organisational culture
It is related to the belief and tradition followed in the organisation and impact the strategy
of the management. The organisational culture has both positive and negative impacts on the
strategies of the company. If the culture of the organisation promotes rights and benefits of the
employees then it becomes favourable for all the strategies and policies of the organisation. The
organisational culture of the Netflix are quite formal and promote the performance of the
employees so they have positive influence over the policies of the organisation.
Employee union
There are different types of employees unions and pressure groups are present in the
organisation. The main motive of these Unions is the protection of employees rights and duties
of employees in the organisation. These union has analyse all the policies and strategies of the
company and verify the rights and duties of the employee. If the strategies and policies of the
Netflix has contain any section which demotes the rights and duties of the employees then these
unions has criticise the company.
External factors:- It is related to those factors which are present outside the organisation and
impact the policies and strategies of the organisation.

Political factor
This factor is related to the impact of government policies and rules on the policies and strategies
of the company. It is very important for the management of the organisation that they analyse the
impact of these factors so that the chances of failure can be minimise in the organisation. One of
the most biggest political factor influence the policies of Netflix and other business organisations
is Brexit. The negative impact of this factor is that the prices of labour are increases in the
European nations so that the Netflix has faced many difficulties in relation to this (Jaworski,
2021) .
Economic factors
It refers to those factor which impacts the policies and strategies of the organisation on
the basis of different economic factors such as inflation, deflation and economic growth. The
economic growth of all the countries are badly effected with the covid pandemic and reflects
negative growth. It has very negative impact on the business of the organisation because they the
company are not able to conduct their business with their full strength which impacts their
profitability.
TASK-3
Labour market of United Kingdom
The labour market of the United Kingdom are one of the most diverse and critical aspect.
It is not easy for any organisation to evaluate this market because the figures and statistics of the
market are continuously changing. It is very important for the management of the Netflix that
they analyse these data so that their policies and strategies becomes more competitive and
effective. There are some figures are analysed from the labour market of United kingdom which
are given below:
 it is based on the data of October 2015 that the number of employees person aged 16 plus
years are 32.9 million and the employment rate of the country are 75.5% which was
75.4% in the proceeding year. The employment level of the country are increased from
some year but covid pandemic has negative impact on this.
 The Unemployment rate of the United Kingdom are 4.1 % which is lower as compare to
another countries and 1.37 million people were unemployed which are category of more
16 years of age.

 There are large number of people from the age group 16 TO 64 are unemployeed and
the numerical data related to same are 8.76 million. The economically inactive rate in the
country was 21.2% which is not positive indicator for the company. The inactive level of
the economy are increased day day which is a matter of concern for the country and
government.
 The annual wages are decreases from the three months with an annual change of -1.2%.
Labour market of United States
The labour market of the United states are very complicated and sensitive towards any threats or
factors. The impact of covid are negative on the labour market of the United states because the
unemployment rate in the country were reached at their all time high at the time of pandemic.
The reason for such condition is that most of the business and ventures are ordered to be closed
so that infection of the virus are not spread in the environment.
 The number of women cult in the labour industry are more than them man in the fisrt
year of pandemic recession.
 The decrease in the number of labour in the market would lead to increase the rate of
unemployment in the market of United States (Bresciani and et. al., 2021).
TASK-4
Based on good practices in People Resourcing and Development functions, advise how Netfix
could position themselves to be competitive in each of the two labour market
The market of both the countries are suffer from some problems due to covid pandemic bur it is
nor right to say that these markets are not favourable for the business organisation. Both the
markets are the first choice of many business organisations to conduct their business because of
possessive customers and labour availability. There are many advantages can be see by the
management of Netflix if they positioned in these markets and the brief discussion related to the
same are given below:
 The market of both United Stated and United Kingdom are full of technological friendly
employees which is beneficial for Netflix due to their technology based business.
 There are many business opportunities are present in these markets which can be grab by
company and achieve success.
 The government of both the countries are supportive and promotive towards the business.

CONCLUSION
This report concludes the case study of Netflix under which the strategies of human
resource management are briefly concluded. This report concludes people resourcing and
developing strategies and internal and external context affects the Netflix strategies.

REFERENCES
Books and Journals
Bresciani, S and et. al., 2021. Human resource management and digitalisation. In Digital
Transformation Management for Agile Organizations: A Compass to Sail the Digital
World. Emerald Publishing Limited.
Jaworski, B.J., 2021. Netflix: Reinvention across multiple time periods. AMS Review, 11(1),
pp.180-193.
Maly-Bowie, B., 2019. ‘Home is where your Netflix is’–From Mobile Privatization to Private
Mobilization. Literary Geographies, 5(2), pp.216-233.
Mier, J. and Kohli, A.K., 2021. Netflix: reinvention across multiple time periods, reflections and
directions for future research. AMS Review, 11(1), pp.194-205.
Mishra, D., Luo, Z. and Hazen, B.T., 2018. The role of informational and human resource
capabilities for enabling diffusion of big data and predictive analytics and ensuing
performance. In Innovation and Supply Chain Management (pp. 283-302). Springer,
Cham.
Moore, C. and Kolencik, J., 2020. Acute depression, extreme anxiety, and prolonged stress
among COVID-19 frontline healthcare workers. Psychosociological Issues in Human
Resource Management, 8(1), pp.55-60.
Rezwan, R.B., 2022. Managing Human Resources in E-Commerce. In Research Anthology on
Human Resource Practices for the Modern Workforce (pp. 1549-1577). IGI Global.