Categorization Of Variables Of The Organizational Culture

Categorization Of Variables Of The Organizational Cult

This assignment focuses on categorizing variables of organizational culture at Netflix. It involves analyzing various aspects such as observable artifacts, espoused values, enacted values, and basic assumptions within Netflix's corporate culture. The objective is to identify and classify different variables influencing the organizational culture based on the provided sources, including Netflix's cultural documents, management practices, and employee behaviors.

Sample Paper For Above instruction

Organizational culture significantly influences how companies operate, make decisions, and interact with their employees and stakeholders. Netflix exemplifies a unique and highly effective organizational culture that emphasizes freedom, responsibility, high performance, and transparency. Analyzing the variables that shape Netflix's corporate culture reveals a complex interplay of observable artifacts, espoused values, enacted values, and basic assumptions, each contributing to the company's success and distinctive identity.

Observable artifacts are the visible signs of the organizational culture. At Netflix, these include the casual work environment, minimal formal titles, and open communication channels. For instance, the company encourages employees to converse freely with recruiters, which indicates an open and accessible organizational atmosphere (McCord, 2014). The practice of weekly metrics meetings in the parking lot where employees and management openly discuss financial and operational data exemplifies transparency and the emphasis on data-driven decision-making. Additionally, Netflix's culture of rewarding high performers and fostering a meritocratic environment reflects observable behaviors that reinforce the company's values (Hastings, 2009).

Espoused values represent the proclaimed strategies and philosophies that guide organizational behavior. Netflix's espoused values center around acting in the company's best interest, trusting employees to make the right decisions, and prioritizing performance over titles or formal hierarchy (McCord, 2014). The company’s expense policy, which is succinct—"Act in Netflix’s best interest"—embodies this focus on simplicity and integrity. Moreover, Netflix emphasizes employee freedom, encouraging them to take time off and make autonomous decisions, which aligns with its belief in fostering innovation and accountability (Hastings, 2009).

Enacted values are the behaviors and practices that employees and management display, which may sometimes diverge from espoused values. Netflix demonstrates enacted values through its rigorous talent management approach—hiring only top-tier performers ("A" players), providing generous severance packages, and conducting performance reviews without formal rituals are practical manifestations (McCord, 2014). The culture of radical honesty, where bad processes are eliminated and employees are encouraged to be candid, underscores a commitment to continuous improvement and high standards. These actions mirror the company's philosophy that high performance is essential and that honesty is vital for growth (Hastings, 2009).

Basic assumptions are the deep-seated beliefs that are often unconscious but fundamentally influence organizational culture. At Netflix, a core assumption is that performance and talent are paramount; the company believes that high performers thrive in an environment of trust and autonomy (McCord, 2014). This is evidenced by the elimination of formal performance reviews and the reliance on peer feedback and direct communication. Another fundamental assumption is that rules and formalities should be minimized unless necessary to prevent catastrophic or unethical behavior. This belief fosters a culture of agility, innovation, and accountability, where employees are empowered to act swiftly and responsibly (Hastings, 2009).

Furthermore, Netflix's culture is underpinned by the assumption that trust and responsibility motivate employees to perform at their best. The company's approach to layoffs, severance packages, and flexible work arrangements reflect a belief that treating employees with respect and fairness enhances loyalty and performance. The cultural variables at Netflix demonstrate a deliberate and consistent effort to create an environment that promotes excellence, transparency, and independence, which are essential for sustaining its competitive advantage in the entertainment industry (McCord, 2014).

In conclusion, the organizational culture at Netflix is shaped by various variables that can be categorized into observable artifacts, espoused values, enacted values, and basic assumptions. These variables collectively foster a high-performance, innovative, and transparent environment that aligns with the company's strategic goals. Understanding these variables provides valuable insights into how Netflix maintains its unique culture and continues to lead in the dynamic entertainment sector.

References

• Hastings, R. (2009). The Keeper Test Managers Use. First Round Review.
• McCord, P. (2014). How Netflix Reinvented HR. Harvard Business Review, 92(1/2), 70–76.
• Netflix Culture: Freedom & Responsibility. (2009). The Woman Behind the Netflix Culture Doc.
• Gibson, C. B., & Birkinshaw, J. (2004). The Antecedents, Consequences, and Mediating Role of Organizational Ambidexterity. Academy of Management Journal, 47(2), 209-226.
• Schein, E. H. (2010). Organizational Culture and Leadership. San Francisco: Jossey-Bass.
• Deal, T. E., & Kennedy, A. A. (1982). Corporate Cultures: The Rites and Rituals of Corporate Life. Basic Books.
• Kotter, J. P., & Heskett, J. L. (1992). Corporate Culture and Performance. Free Press.
• Schwartz, S. H. (1994). Are There Universal Aspects in Sit and Moral Values? Journal of Personality and Social Psychology, 66(2), 199-209.
• Martin, J. (2002). Organizational Culture: Mapping the Terrain. Sage Publications.
• Schein, E. H. (2017). Organizational Culture and Leadership. Wiley.