(Tiểu luận) group assignmentorganizational behaviornetflix case study

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATION PROGRAMS GROUP ASSIGNMENT ORGANIZATIONAL BEHAVIOR NETFLIX CASE STUDY Class: Marketing 63D Team Members 1.. Do you think Net

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATION PROGRAMS

GROUP ASSIGNMENT ORGANIZATIONAL BEHAVIOR

NETFLIX CASE STUDY

Class: Marketing 63D

Team Members

1 Đinh Thuỳ An

2 Lê Nguyễn Hiền Anh

3 Nguyễn Hiền Anh

4 Đỗ Thị Hà Phương

5 Phạm Vũ Xuân Nhi

6 Trịnh Minh Hiếu

Instructor: Assoc Prof Dr Pham Thi Bich Ngoc

Hanoi, November 2022

TABLE OF CONTENTS

2 About Reed Hastings and Marc Randolph: 3

Question 1: To what extent do employees look to their CEOs for motivational

signals? Do you think Netflix employees grow to be motivated by the same things

Question 2: Which theories seem relevant to customers’ motivations (to pick

certain titles), not just employees’ motivations (to perform their tasks well)? 5

Question 3: When it comes to complex work - like Netflix engineers analyzing

data on customer viewing habits - will intrinsic or extrinsic motivators prove more

2 The principals of intrinsic and extrinsic motivation 9

I Introduction

1 About Netflix:

- Netflix, Inc is an American production business and subscription-based over-the-top streaming service with headquarters in Los Gatos, California Reed Hastings and Marc Randolph established Netflix in Scotts Valley, California, in

1997 It offers a collection of movies and TV shows through distribution agreements as well as its own works, dubbed Netflix Originals As one of the top entertainment services in the world, Netflix has 223 million paying subscribers in more than 190 countries who enjoy TV shows, documentaries, feature films, and mobile games in a range of genres and languages Members have unlimited access to play, pause, and resume watching whenever and wherever they like, and they are always free to alter their plans

2 About Reed Hastings and Marc Randolph:

- Reed Hastings: American billionaire businessman Wilmot Reed Hastings Jr He serves as co-founder, chairman, and co-CEO of the company.(CEO) of Netflix, and sits on a number of boards and non-profit organizations

- Marc Randolp: Marc Bernays Randolph is an American IT entrepreneur, lecturer, and advisor He was Netflix's co-founder and first CEO

3 About case:

- According to an online study done by the app Blind, Netflix is among the top firms with the happiest employees In 2019, 86% of participants reported feeling satisfied and inspired The major indicator for happiness employed in the research was whether respondents reported "substantial growth," "moderate growth," or "no growth." 73% of respondents said they would recommend Netflix to friends and family, and 90% said they supported the CEO, which is consistent with Glassdoor reviews Compared to the average CEO approval rating of 69% provided by Glassdoor, this rating is noticeably higher What, then, made the workforce appreciate Netflix and the CEO? One of these is Netflix's distinctive culture, notably the way that staff members are encouraged

II Answer the questions

Question 1: To what extent do employees look to their CEOs for motivational

signals? Do you think Netflix employees grow to be motivated by the same things that engage Hastings?

Since they manage the company, the CEO is viewed as the superior individual He has full responsibility for all business choices made by the company, including those pertaining to marketing, operations, accounting, human resources, and so forth Without a doubt, executive roles in businesses are some of the hardest occupations on the planet, if not the worst.In actuality, what takes place is that the CEO is expected by both the company and the employees to provide perks as compensation

The process that explains an individual's intensity, direction, and persistence of efforts toward obtaining a goal is known as motivation Motivating and inspiring staff is one

of a CEO's most crucial responsibilities Only motivated employees will give their best work and be most productive Praise is the first and simplest strategy People are curious as to whether their work is up to par Positive feedback may be a fantastic motivator for productivity A safe workplace must be provided Making sure there is a good work-life balance is preferable Only in a workplace that values the need to balance work and leisure can employees be joyful and productive Therefore, allow your staff to take time off each week to unwind Additionally, money is the best motivator of all People work for the money they are paid in exchange It's not only about getting paid; an employee's wage also serves as proof and acknowledgement of their efforts When employees feel valued by their employers, they are more motivated to work

The CEOs are frequently looked to by employees for encouragement and direction In this instance, Hastings' customers are both his inspiration and his passion Every time, Netflix makes an effort to comprehend the decisions its millions of users make Teams

of designers, mathematicians, and programmers are employed by Netflix to investigate why viewers gravitate toward certain films while avoiding others In a similar vein, Hastings thinks that if the staff members are happy, they will be inspired

to help Netflix create many great customer experiences.

Employees who are happy with the demands of their jobs, their pay, and their cultural fit will be more productive, it has been demonstrated Researchers at the University of Warwick found that happiness increased staff productivity by 12% in a series of trials

In the case of Netflix, I believe that when Hastings addresses any issues that can annoy employees, such as pay, benefits, time off, and the freedom to work only when they feel up to the task, the workers will be guaranteed to provide quality work This might be viewed as a sign that he had successfully structured things so that staff' motivation would be driven by the needs of the consumers Despite their tiny size, these elements still contribute to the work's increased competitiveness and speed up its development Additionally, workers do well just because they can receive the incentive or award that their employer announced They may also be able to raise the bar for their personnel in order to reach that goal.The management' initiatives are always eagerly anticipated by the staff Of course, the reality motivates Netflix staff members Otherwise, how does Nexflix spread its hegemony over the world? Additionally, it is true that innovation never stops moving forward Consequently, people have a propensity to solve difficulties by thinking outside the box All other requirements for motivation are already satisfied According to some, an employee is motivated when they have the following three beliefs: that their effort will lead to performance (Expectancy), that their performance will lead to results (Instrumentality), and that their outcomes will be worthwhile (Valence)

Question 2: Which theories seem relevant to customers’ motivations (to pick

certain titles), not just employees’ motivations (to perform their tasks well)?

1 The expectancy theory

A theory says a person's propensity to act in a particular way is influenced by how strongly they anticipate that action will result in a particular outcome and how appealing that consequence is to them The theory emphasizes three relationship:

● Effort-performance relationship

● Performance-reward relationship

● Rewards-personal goals relationship

The expectation motivates people to exert the effort necessary for performance For the customers, if a consumer is making an effort to find your brand, performance would be doing so It is the responsibility of the brand to make joining its rewards program as simple as feasible for customers Brands who are aware of this are able to direct consumer effort in a way that will produce results and increase motivation to participate in the program Programs for rewards are made to entice clients with incentives Netflix would advertise films or television episodes based on the customer's interests, as was mentioned in the case As a result, Netflix has created motivation for its users to keep watching content on its website This is accomplished

by allowing users to select from a variety of options The decision is taken in consideration of what the person finds enjoyable If the person is consistently presented with options that do not make them pleasant, demotivation will occur Netflix prevents demotivation by providing a variety of options

For the employees, they demonstrate to staff that they are capable of coming up with new ideas and act as a link in the chain by demonstrating innovation success to workers rather than leadership Netflix’s core value is “independent decision-making

by employees” Netflix recognized that they could often achieve better results at a lower cost by just asking personnel to rely on logic and common sense rather than tight regulations Managers at Netflix are supposed to create the environment or context rather than take charge or direct others Additionally, they developed an office setting that rewarded excellence and barred those who misused or violated their liberties "Personal Top of Market" is how Netflix ensures that its employees receive competitive pay Working more intelligently is superior to working harder The business doesn’t run on a regular 8-hour workday Efficiency is the main objective, much as what half-day Fridays or a 4-day work week aim to accomplish Employees are allowed more free time instead of being required to work lengthy hours with the idea that they can return to the workspace and perform better, increasing productivity Their values link tightly to innovation: “You care intensely about our members and Netflix‘s success” Netflix makes a culture of freedom and accountability On Comparably, the employee satisfaction at Netflix is ranked in the top 5% of businesses with comparable sizes Employee happiness has a lot to do with compensation, and at

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Netflix, 84% of workers believe their pay is fair, 88% are happy with their perks, and

78% are satisfied with their stock or ownership Netflix is a happy place to work

because 87% of Netflix employees say their workplace is favorable

2 Goal-setting Theory

According to a thesis, setting clear, challenging goals and receiving feedback

increases performance The difficult goals when accepted, result in higher

performance than do easy goals, and that feedback leads to higher performance than

does non feedback

In this case, the goal-setting theory of providing customers with what they want even

before they are aware of what they want It is encouraged by the customer's sense of

significance in the services they are receiving and by their own self-determination to

keep using those services The customer's quality of life will be impacted by our

capacity to do this

For the employees, they need to be able to offer engaging content to their subscribers

In fact, the goals set by Netflix are specific enough that they focus on improving

customer satisfaction Netflix has identified its target customer groups as well as their

needs and the Netflix team would also figure out what customers find most enjoyable

through the scientific process They would develop hypotheses using existing

quantitative data, qualitative information, and survey results, and then A/B test these

hypotheses to determine which ones are most effective With A-level, employees will

get more responsibility and high compensation

Netflix is also inspirational in that it instills in people a desire for growth and progress

Managers are advised not to retain team members with whom they are not entirely

satisfied with using a general criterion known as the "Keeper test." Moreover, at

Netflix, positive/constructive feedback is a part of everyday - not just an annual event

Through teaching and exemplifying the behaviors we want to see throughout the firm,

this teaches individuals how to offer and receive criticism Netflix also opts for a 360

degree review process Employees are advised by their colleagues on what they

should stop doing, start doing, or continue doing under this new structure Cultural

excellence of Netflix increases member satisfaction This is how they build an

Expectancy theory Organizational

1

extraordinarily successful company in the world.

The MBO process is used by managers at Netflix to give staff members the context they need to make decisions that align with the company's objectives and strategy The hierarchy at Netflix is arranged like a tree: The roots are Hastings, the trunk is senior leadership, the branches are descending levels of management, and the uppermost branches are employees (making decisions as captains) This is perfect framework for the MBO process

3 Two - factor Theory

A hypothesis that links intrinsic (advancement, recognition, responsibility, achievement) and extrinsic aspects (supervision, pay, company policies, work condition) to job satisfaction and unhappiness, respectively

In service encounters, there are numerous hygiene-related motivators and influences that take the form of client expectations

- Motivators : free trial, give feedbacks, discount…

- Hygiene factors : some movies/TV shows/series are restricted to some countries

On the other hand, Netflix employs motivation through work design, promoting autonomy, feedback (JCM), and the desire to gain

- Motivators:

+ Stock Option Program: Each year, employees decide how much of their pay they want to be made up of salary and stock options

+ Personal Top Market: pay employees at the top of their personal market + Providing 360 degree review process

- Hygiene factors:

+ Netflix’s policy for travel/entertainment/presents and other charges is 5 words long: “act in Netflix’s best interest.” They do not have a travel policy + When it comes to work schedule, rush hour can be stressful for the employee

Question 3: When it comes to complex work - like Netflix engineers analyzing

data on customer viewing habits - will intrinsic or extrinsic motivators prove more effective? Why?

1 Definition and Overview

Intrinsic motivation is defined as doing something for your own spiritual satisfaction rather than external interests You do it because the task is interesting, useful or practical, in place of visible rewards or the avoidance of punishment

Intrinsic motivation is evident in young children, who are constantly trying to grasp, throw, bite, crush or scream at new objects they encounter Even if less important as they get older, adults still have intrinsic motivation when they're doing crossword puzzles, painting, gardening, or just reading novels or watching movies

By engaging in activities that give you inherent satisfaction, you are contributing to a sense of well-being, which is an important part of the psychological needs of humans

In this way, intrinsic motivation is very important to a person's overall sense of motivation

Extrinsic motivation, on the other hand, encourages our will to complete tasks and perform a behavior in order to get a reward or avoid punishment When you are externally motivated, your behavior is motivated by an external factor that motivates you to do something in the hope of earning a reward or avoiding a less positive outcome

An example of extrinsic motivation would be getting paid to do a job You may enjoy spending your days doing things other than work, but you're motivated to go to work because you need a paycheck to pay the bills In this example, you are externally motivated by your ability to cover daily expenses In return, you work a certain number of hours a week for pay