Case Study 61 Netflix: Introduction, Motivation, Practices ✓ Solved

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Case Study 61 Netflix introduction motivation practices and appli

Organizational behavior practices influence processes such as leadership, power and politics and communication affecting organizational outcomes. Organizational outcomes such as individual performance, job satisfaction, team performance affect organizational goals. The organization goals are affected by the entire process on how organizational behavior is handled in the entire organization.

Directions: Students are expected to answer the questions associated with the case. These questions are intended to elicit thoughtful reactions to contemporary organizational behavior initiatives and challenges. The responses should reflect higher level cognitive processing (analysis, synthesis, and evaluation).

Case Study Questions:

1. How does Netflix use intrinsic motivation to support its HR practices?
2. Why would a creative firm choose to use intrinsic motivation where an industrial firm would probably choose to use extrinsic rewards?
3. Explain the appeal of nontraditional work schedules and how Netflix has chosen to implement them.

Paper For Above Instructions

The case study of Netflix offers a fascinating examination of intrinsic motivation and how it is integrated into the company’s human resources practices. Established in 1997, Netflix has dramatically transformed the way content is consumed, and its approach to employee management has parallels with this innovation. This paper will analyze how Netflix employs intrinsic motivation in HR practices, why creative firms might favor intrinsic over extrinsic motivation, and the appeal of nontraditional work schedules within this context.

Intrinsic Motivation at Netflix

Intrinsic motivation is the drive to engage in activities for their own sake, based on interest and satisfaction. Netflix embodies this principle through its HR practices that focus on creating an environment where employees feel valued and empowered. For instance, the elimination of rigid performance management tools like annual reviews means that employees can focus on their work rather than worrying about meeting arbitrary targets. This flexibility allows creative individuals to thrive in their roles, as they are trusted to pursue excellence rather than merely fulfilling a checklist of tasks.

Moreover, Netflix's approach emphasizes freedom and accountability. As highlighted in the case, the company has done away with strict leave policies, allowing employees to take as much time off as they feel is necessary. This trust not only enhances job satisfaction but also fosters a culture where employees feel responsible for their contribution to the organization’s goals. With a decentralized control system, employees are more likely to feel engaged and intrinsically motivated to perform well.

Intrinsic vs. Extrinsic Motivation in Creative Firms

The preference for intrinsic motivation in creative firms like Netflix, as opposed to extrinsic rewards often favored by industrial firms, can be attributed to the nature of the work involved. Creative firms thrive on innovation, which requires risk-taking and experimentation. Employees in such environments need to be motivated to explore new ideas, which is more likely to occur when they are intrinsically interested in their work.

In contrast, industrial firms often operate under strict parameters where tasks are repetitive and straightforward. These firms may find that extrinsic rewards—bonuses, promotions, etc.—are necessary to incentivize employees to perform reliably within a defined set of parameters. However, Netflix understands that fostering creativity requires a different approach, one that prioritizes autonomy, psychological safety, and a shared vision among employees. By focusing on self-motivation, Netflix allows its teams to experiment, adapt, and ultimately produce more innovative content that meets evolving consumer preferences.

Nontraditional Work Schedules

Nontraditional work schedules appeal to employees for various reasons, such as promoting work-life balance and allowing for flexibility in how and when work is accomplished. Netflix’s implementation of policies that empower employees to manage their schedules contributes to the company’s image as a progressive employer. Nontraditional work schedules can alleviate stress, thereby enhancing productivity. Employees are able to work during their most productive hours, leading to higher quality outcomes for the company.

The flexibility inherent in nontraditional scheduling has become increasingly vital in modern workplaces, particularly as remote work becomes more common. By allowing employees to define their schedules, Netflix nurtures a culture of experimentation and personal accountability. This approach aligns with the company’s strategy to drive creativity and innovation by minimizing bureaucratic constraints.

Conclusion

In conclusion, Netflix has effectively harnessed intrinsic motivation within its HR practices to create a robust organizational culture that encourages innovation and accountability. The flexibility provided by nontraditional work schedules and the prioritization of personal responsibility supports employees in their quests for professional excellence. By understanding the differences between intrinsic and extrinsic motivation, Netflix stands as a model for other organizations, particularly in creative industries, seeking to optimize their workforce's productivity and satisfaction.

References

• Baer, D. (2014). Netflix’s Major HR Innovation: Treating Humans Like People. Fast Company.
• Fenzi, F. (2013). 3 Big Ideas to Steal from Netflix. Inc.
• Grossman, R. J. (2010). Tough Love at Netflix. HR Magazine.
• Kamensky, J. (2014). Netflix’s 5 Tenets of HR. Government Executive.
• McCord, P. (2014). How Netflix Reinvented HR. Harvard Business Review.
• Nisen, M. (2013). Legendary Ex-HR Director from Netflix Shares 6 Important Lessons. Business Insider.
• No Author. (2013). Netflix Wins Three Emmys. Huffington Post.
• Hastings, R. (2014). Freedom and Responsibility: How Netflix Built a Culture of High Performance. Harvard Business Review.
• Gallo, C. (2018). The Story Behind Netflix's Work Culture. Forbes.
• O'Reilly, C. A., & Tushman, M. L. (2011). Organizational Ambidexterity in Action: How Managers Explore and Exploit. Strategic Organization.

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