MGMT 340 Week 3 Different Take to Engaging Employees Netflix Case Discussion

User Generated


Business Finance

MGMT 340



Homework in Introduction to Organizations. It is a one question homework of discussion case. The discussion case and the question are attached. Please follow the requirements. More resourses will be provided.

Unformatted Attachment Preview

WEEK 3 CASE DISCUSSION A DIFFERENT TAKE TO ENGAGING EMPLOYEES: THE CASE OF NETFLIX Instructions: 1) Your initial post i.e. your answer to the case question should be made by Thursday, 11:59 pm. It must be at least 100 words. [2.5 points] 2) Your reply post i.e. your response/thoughts to someone else’s post should be made by Saturday, 11:59 pm. It must be at least 100 words. [2.5 points] 3) No late posts are accepted and if you make the initial post and reply post on the same day, you lose 1 point in this week’s case discussion. Evaluation criteria i. Thoroughness (Did you answer the question?) ii. Learning (Did you apply learning points from the topics?) iii. Writing (Was your post and reply free of typos and grammatical errors?) iv. Professionalism (Was your post respectful to the perspectives of others?). When the local video rental store fined Reed Hastings $40 for the late return of the movie Apollo 13, they probably could not have guessed that this would initiate the chain reaction that would result in the demise of video rentals as we knew it. Netflix began its life as a mail-based subscription video rental company in 1997, which later added the streaming of movies to its offerings. As of 2014, the company has over 2,000 employees. Many entrepreneurial companies start out as exciting, challenging, and engaging organizations, and then, as they grow, they become bureaucratic. This could have happened at Netflix, except that it already had happened to Mr. Hastings at his first company Pure Software. His past experiences and reflections about what went wrong seemed to have put Netflix on a unique path, as he was determined not to repeat his mistakes at Netflix. Starting from its early days, Netflix had a different take on how to attract and retain top talent. As a case in point, consistent with motivation principles, Netflix believes in vacations. Yet, the company does not have a formal vacations policy. Instead, salaried employees can take as many days of vacations as they like (if employees want to take more than 30 days in a row, it requires a prior conversation with HR). Instead of tracking the number of hours or days employees are working, the company focuses on what matters, which is whether the job gets done. Employees have the power to make choices in areas where choice would be unthinkable in many other companies. For example, employees get to decide how much of their pay will be cash versus stock. Travel and entertainment expenses are left to the employee’s discretion. Instead of creating detailed procedures, their policy consists of telling employees to act in the company’s best interests. Netflix aims to treat its employees like adults. To make such a system work, a company needs employees with a very strong work ethic who are able to self-manage. As a result, Netflix puts a lot of emphasis on how they recruit and select their employees. The company is proud to pay top of the market salaries to top-notch talent. They offer stock with no vesting period so that employees do not have to work a certain period of time to fully own their stocks, which allows them to leave at any time without suffering a financial penalty. The idea is that employees should be able to leave if they want to. If they choose to stay, this should be because they are challenged and engaged, and not because they feel like they have to. The company is incredibly selective in who is hired, and people who are not drawn to the entertainment industry are not a great fit. After they are hired, Netflix expects consistently very high performance from its employees. This is not a culture for slackers, and it is not a culture for those who expect external incentives for specific actions. While the company pays high salaries, there are no bonuses or other incentives. Many of the perks that are the default in Silicon Valley companies, such as free food or computer games, are missing at Netflix offices. In fact, former chief talent officer of Netflix, Patty McCord noted that “satisfaction comes from work, not from the cookies.” While high performance is expected and employees are held accountable for their performance, the company eliminated performance appraisal systems, feeling that they were too infrequent to be useful. Instead, managers are expected to have informal conversations about performance as part of their regular workflow. They also have an informal 360 system in which colleagues identify and communicate things their coworkers should stop, start, and continue to do. Case Question Which of the approaches discussed in “Workplace Motivation” chapter (job design, incentives etc.) are being utilized to motivate Netflix employees? What can Netflix further do to improve employee motivation?
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer



NetFlix and Employee Motivation
Institutional Affiliation

NetFlix is highly selective in who is hiring assuring itself with workers with skill variety.
The company motivates workers by enriching their job, which increases their performance and
reduces absenteeism. It treats every employee as an adult, be their own boss, and NetFlix expects

Excellent resource! Really helped me get the gist of things.


Similar Content

Related Tags