Netflix

Question 1

What is the common problem Netflix addresses with their HR policies

Answer 1

As firms grow, they
1. Need more human capital to manage the increasing complexity
2. yet tend to become less attractive to talented, hard-working, innovative individuals who dislike bureaucracy.

Question 2

List the goals Netflix had to address the problem

Answer 2

1. Reduce the complexity and bureaucracy.
2. Create an environment that attracts human capital.
3. Increase its human capital faster than its complexity and bureaucracy increased.

Question 3

What is Netflix’s definition of culture

Answer 3

How a firm operates

Question 4

How does Netflix adhere to its values?

Answer 4

1. It is important to record, define, and publicize company values.
2. It also is important that these values shape hiring, retention, and promotion decisions.
3. Although culture and values can provide structure, they should not be so rigid that they
   discourage adaptability. In this regard, Netflix evaluates its culture and values annually.

Question 5

How does Netflix emphasize and reward high performance?

Answer 5

1. Superstar workers usually want to work with other superstar workers.
2. The firm works like a professional sports team, not a family.
3. “Adequate performance gets a generous severance package” at Netflix (p. 26).
4. Netflix pays well (high salary, no bonus, based on external markets)
5. Netflix emphasizes pay and jobs more than formal titles
6. Retention is based on employee contributions
7. Promotion opportunities are based mostly on Netflix’s need for the particular job.

Question 6

Why does Netflix want to create a culture of cooperation and accountability?

Answer 6

Because it wants to minimize unnecessary control systems.

Question 7

Netflix wants well-functioning adults who are more autonomous and require less oversight

Answer 7

true

Question 8

Too much reliance on processes, especially if they are rigid, can hinder flexibility

Answer 8

true

Question 9

Describe loose-tight governance system

Answer 9

1. Most activities are loosely (i.e., minimal oversight) governed.
2. Activities that can ruin the firm (e.g., fraud) or that involve ethical issues (e.g.,
   discrimination), by contrast, are governed more tightly.
3. Netflix articulates and publicizes clear and specific strategies and goals. It gives
   individuals autonomy in deciding how to achieve those strategies and goals.
4. Collaboration occurs as needed, not through regularly-scheduled meetings, which
   can become unproductive