Categorization Of Variables Of The Organizational Cul 126176

Categorization Of Variables Of The Organizational Cult

Identify and categorize the variables of organizational culture at Netflix, focusing on observable artifacts, espoused values, enacted values, and basic assumptions. Analyze how these variables influence and reflect the company's culture and practices, including their approach to talent management, performance evaluation, employee autonomy, and organizational behavior.

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Organizational culture is a critical component that shapes the behavior, practices, and overall environment within a company. It encompasses the shared values, beliefs, and assumptions that influence how employees interact and how the organization functions. Netflix exemplifies a distinctive organizational culture characterized by innovation, high performance, and a commitment to employee freedom and responsibility. This essay aims to categorize and analyze the variables of Netflix’s organizational culture using the framework of observable artifacts, espoused values, enacted values, and basic assumptions.

Observable Artifacts

Observable artifacts are the visible indicators of an organization's culture, including behaviors, rituals, physical symbols, and language. At Netflix, these artifacts manifest in various ways. For example, employees are encouraged to openly communicate with recruiters and participate in transparent discussions, which reflect the company's culture of openness and directness (McCord, 2014). The company's talent philosophy emphasizes hiring only "A players," indicating a high-performance culture (Netflix, 2009). Management compares leadership to coaching in a professional sports team, emphasizing mentorship, skill development, and team performance (Hastings, 2009).

Another observable artifact is the company's approach to layoffs and transparency: after laying off 30% of staff in the early 2000s, Netflix held weekly metrics meetings in the parking lot where employees had clear visibility into financials and performance metrics (McCord, 2014). This exemplifies openness and accountability. Additionally, Netflix's practices, such as discouraging formal titles and promoting based on task performance rather than hierarchy, signal a culture centered on meritocracy and results (Netflix, 2009).

Espoused Values

Espoused values are the explicitly stated values and principles that guide organizational behavior. Netflix’s espoused values include a focus on acting in the company's best interest, trust among employees, and the importance of employee freedom. Their expense policy of "Act in Netflix’s best interest" broadens accountability and aligns employees' actions with corporate goals (McCord, 2014). The company downplays formal titles and emphasizes task-focused promotion, reflecting a belief in merit and talent over hierarchy (Netflix, 2009).

Another core espoused value is trust. Netflix trusts employees to make decisions that benefit both themselves and the company, which is fundamental to fostering innovation. This trust is reinforced by policies such as providing generous severance packages and encouraging flexible time off, illustrating a commitment to employee autonomy and well-being (McCord, 2014). Furthermore, Netflix promotes radical honesty and transparency, as evidenced by their culture of direct feedback and open discussions about company performance.

Enacted Values

Enacted values are the values that are actually demonstrated through behaviors and decisions. At Netflix, enacted values include the emphasis on high performance, radical honesty, and minimal bureaucracy. The company’s practice of dismissing formal performance reviews and performance improvement plans signifies its commitment to removing unnecessary rituals that impede agility and performance (McCord, 2014). Employees who have performed well are given opportunities to rebound even after setbacks, emphasizing a culture of forgiveness and continuous improvement (Netflix, 2009).

Netflix’s approach to layoffs and severance packages demonstrates enacted values of compassion and recognition of individual contributions. The company’s practice of offering substantial severance to departing employees, regardless of circumstances, signifies the value placed on human dignity and respect (McCord, 2014). Additionally, the company’s strong stance on rules—only implementing necessary laws to prevent disastrous or unethical outcomes—reflects a culture that values good judgment over rigid compliance.

Basic Assumptions

Basic assumptions are unconscious, taken-for-granted beliefs that form the essence of the culture. In Netflix’s case, a fundamental assumption is that high performance and excellence are essential for survival and success. This belief underpins the company’s rigorous talent management approach—only top talent is recruited, and underperformers are swiftly let go or helped to improve (McCord, 2014). The assumption that trust and autonomy will foster innovation and high productivity guides the company's policies on employee freedom, including flexible work arrangements and minimal oversight (Hastings, 2009).

Another underlying assumption is that bureaucracy and formal procedures hinder agility and creativity. Netflix’s elimination of traditional performance reviews and formal performance management processes reflect the belief that continuous feedback and self-motivation are more effective (McCord, 2014). The company assumes that a culture of radical honesty, transparency, and high accountability creates an environment where innovation can thrive and where employees are motivated to excel without rigid supervision.

Furthermore, Netflix's culture assumes that organizational health, including the physical and psychological well-being of employees, is crucial. This is evidenced by their generous severance and vacation policies, which demonstrate that the company values employee dignity and well-being as integral to its success.

In conclusion, Netflix's organizational culture is a dynamic amalgamation of observable artifacts, espoused values, enacted values, and basic assumptions that collectively foster an environment of innovation, high performance, and trust. These variables reinforce each other, creating a distinctive culture that has enabled Netflix to reinvent itself continually and maintain a competitive edge in the entertainment industry.

References

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