(Tiểu luận) organizational behaviorgroup assignment netflix analysis

In this study, our group will talkabout how Netflix's crew was motivated to maintain such a great organizational structure.This research would look into the organization behavior of Netf

NATIONAL ECONOMICS UNVIVERSITY

Advanced Educational Programs - -

ORGANIZATIONAL BEHAVIOR

GROUP ASSIGNMENT

Bùi Quỳnh Chi - 11211040 Nguyễn Thị Quỳnh Trang - 11215851 Nguyễn Thu Phương - 11219246

Hanoi – 2023

Table of Contents

Introduction 3

A Theoretical basis 4

1 Definition of Organization behavior 4

2 The importance of Organization Behavior to Business 4

B Netflix Analysis 4

i About Netflix 4

1 General 4

2 Netflix Organizational Structure 5

ii OB Success 7

1 Identification of Netfilx Organizational Behavior Success 7

a Employee engagement 7

b Diversity and inclusion 8

c Collaboration 8

d Talent Management 8

2 Other rankings and awards 8

iii Contributing factors 9

1 Power 9

a Power Source 9

b Power Tactics 10

2 Culture 10

a Netflix’s Logo 10

b Netflix’s Culture Analysis 11

3 Politics 13

4 Motivation 14

a Content theory: Maslow’s Hierarchy of Needs Theory 14

b Process theory: Locke's Goal Setting Theory: 15

iv Management Tools 16

v Suggestion 17

vi Conclusion: 18

Reference 19

For a very long time, watching television at home was the only option In America,watching television is a popular pastime An American family would like to watchtelevision for more than 8 hours a day on average, according to the American Time UseSurvey (ATUS) The way we occupy ourselves on a daily basis changes as technologyadvances There are many platforms of various types that offer shows, movies, and seriesthat have been designed to fulfill the need for watching TV wherever and whenever it ispractical Individuals eventually start switching from cable TV to new streamingpackages We must highlight Netflix Inc as one of the most popular streaming servicesglobally It is not just well-liked in the United States; it is currently available in more than

100 nations across the world Along with its amazing technology, superb marketingstrategies, and top-notch customer assistance, Netflix's performance is also greatlyimpacted by the workplace atmosphere for its workers In this study, our group will talkabout how Netflix's crew was motivated to maintain such a great organizational structure.This research would look into the organization behavior of Netflix such as:identification of Netflix’s success culture behavior, power and politics behavior,management tools etc and how they influence the performance of the employees.Besides, we also recommend some solutions for better organization behavior of Netflix

1 Definition of Organization behavior

Organizational behavior is the study of how individuals and groups interact within anorganization and how these interactions affect an organization’s performance toward itsgoal or goals The field examines the impact of various factors on behavior within anorganization

The focus of organizational behavior tends to center around employee productivity Forexample, organizational behavior studies have shown that employees who feel valuedand appreciated tend to be more motivated and productive, leading to increased profitsfor the organization However, organizational behavior can also focus on the ways inwhich organizations can better manage, change and improve behavior in order to achievedesired outcomes (i.e., productivity, employee well-being, or workplace satisfaction)

2 The importance of Organization Behavior to Business

Organizational behavior is crucial to the success of any business By understanding howindividuals and groups interact in an organizational setting, business leaders can improveemployee productivity, job satisfaction, and collaboration The study of organizationalbehavior identifies five essential elements, including people, structure, technology, socialsystem, and environment, that are critical to understanding these dynamics Applyingorganizational behavior principles can help businesses improve their workforceprocesses, collaboration, and workforce development, leading to a positive work culture Moreover, the study of organizational behavior can inform and influence human resourcestrategies, helping organizations align employee goals with organizational objectives Inessence, organizational behavior is a key factor in improving workforce efficiency andeffectiveness, ultimately leading to the success of the business

to launch a monthly subscription As a result, the business aspires to be known foroffering limitless rentals without due dates, late penalties, shipping or handling charges,

or per-title rental costs

The company lost large quantities of money the first few years but in 2003, Finally,Netflix generated $275 million in sales and a hefty profit of $6.5 million The businessoffers a broad variety of movies to its consumers and ships roughly 1 million DVDsevery day They increased their success by developing a customized videorecommendation system for their consumers based on ratings and reviews to assist themidentify the movies the viewers prefer

The firm expanded to the internet in 2007, making it possible for their clients towatch movies online, which helped Netflix thrive despite a decline in DVD sales from

2006 to 2011 Additionally, Netflix contributed significantly to the distribution of indiefilms and created unique subjects with filmmakers through a program called RedEnvelope Entertainment This program closed in 2008

Overall, given that it mails out 190,000+ DVDs every day and has 24.4 million UScustomers or 30 million subscribers worldwide, Netflix is one of the most successfulmovie distributors

Around 12,800 full-time employees were employed by Netflix as of 2022 Thenumber of employees increased by 1,500 or 13.27% compared to the previous year andmore than twice as many as were tallied in 2017 With the assistance of these workers,

2022 turned out to be the business's most prosperous year to yet, generating record sums

in term yearly income

-> Netflix Employees increase rapidly each year

2 Netflix Organizational Structure

Netflix Inc has a U-form or unitary organizational structure that involves a hierarchyfor maintaining executive control and direction throughout the organization However,this corporate structure is relatively flat compared to many businesses that have ahierarchical organizational architecture Through this corporate structure, the company isable to continually evolve to offer original entertainment content and on-demand mediastreaming service that attract target customers around the world Netflix Inc.’s corporatestructure is based on the business need to make rapid decisions as a way to respond tochanges in the online entertainment market This organizational structure allows thecompany to effectively perform against strong competitors, such as Amazon, Walmart,Apple, YouTube (Google), Disney, and HBO, among others

This power system involves a CEO named Reed Hastings at the top and successivelayers of authority below him He is directly reported to by a number of principal officerswho supervise The chief talent officer comes in third, followed by the chief marketingofficer and the chief communications officer

The chief product officer comes next, followed by Ted Sarandos, a c-level official atNetflix who collaborates closely with the chief marketing officer, as chief content officer.The chief financial officer of Netflix is in charge of supervising all financial activitiescarried out by the firm and ensuring compliance with accounting and financialregulations

The business development officer of Netflix is another top executive Last but notleast, David Hyman holds the post of general counsel at Netflix and provides the Netflixcommunity with legal advise (Wagener, 2020) He also designates those who willrepresent the organization in court To make sure the business takes the best judgments,

he is constantly present throughout important organizational transactions

Following the chief executive officers, lower-level managers and department headsarrange themselves vertically in terms of influence The major goal of this organizationalstructure is to uphold executive authority and direction across the board

Because there aren't many levels of middle management at Netflix, the hierarchicalstructure is considerably more flat than it is at other companies As a result, the chain ofcommand is quite short

Behavior 100% (5)

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Organization Behavior Net ix Case

-Organizational

Behavior 100% (4)

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Organisation Behaviour A1

Organizational

Behavior 100% (3)

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Netflix makes use of a few flat organizational principles For instance, only the first

layer of senior executives and next-level management at the functional level is vertical;

beyond that, the organizational structure is very flat Direct communication and prompt

decision-making are made possible from the middle level on down as a result

ii OB Success

1 Identification of Netfilx Organizational Behavior Success

a Employee engagement

Netflix is listed as one of the most pioneer companies in having a high performance

culture which surveys show that Netflix employees were the happiest employees in 2019

in the US (Rodriguez, 2020)

- Fostering a Culture of Freedom and Responsibility

Fostering a culture of independence and responsibility is one of the main ways

Netflix keeps its staff content and productive Instead of micromanaging them, the

corporation encourages its staff to take the initiative and make decisions Employees can

then feel empowered and respected, which boosts their productivity and level of job

satisfaction Give your staff liberty and put your faith in them to make decisions that are

in line with the company's objectives if you want to implement this strategy in your

business

- Generous Benefits and Positive Work-Life Balance

Netflix also encourages a healthy work-life balance and provides extensive perks to

keep its staff members content and productive The employer provides extensive parental

leave, flexible scheduling, and unrestricted vacation time Employees may better manage

their work and personal life as a result, which can increase productivity and job

satisfaction You can think about providing flexible work schedules, unlimited vacation

days, or remote work opportunities to help your employees better balance their

professional and personal lives

- Emphasis on Employee Development and Career Growth

Additionally, Netflix places a high priority on its employees' professional

development To aid employees in advancing their careers, the business provides a range

of training and development options, such as coaching and mentoring programs In

addition to enhancing employee satisfaction and engagement, this also helps the business

retain top talent You might think about establishing a mentorship program, giving access

to professional development classes, or setting up a clear career growth route as ways to

engage in your employee's development

- Transparency and Communication

Netflix places a high value on openness and communication Regardless of level or

position, all employees at the organization are given access to information regarding the

company's performance and strategy Employees may experience greater job satisfaction

and productivity as a result of feeling more a part of the company's vision and objectives

You might think about developing an open communication culture, constantly informing

your staff about the company's performance and plan, and encouraging criticism if you

want to increase transparency and communication in your business

- Employee Voice and Surveys

Expectancy theory

Organizational Behavior 100% (3)

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By regularly surveying its workforce, Netflix gives them a voice and helps tomaintain a happy workforce The business regularly polls workers on their involvement

to get their opinions on things like communication, professional growth, and work-lifebalance This allows staff members the chance to express their issues and ideas and havetheir voices heard by the management of the business By disseminating the surveyfindings to every employee and acting on their suggestions, Netflix also makes the surveyresults transparent Additionally, it promotes an environment of openness and trust.Giving employees a voice and demonstrating that their opinions are appreciated can helpbusinesses build a more engaged and motivated staff, which will eventually improveproductivity and employee retention

b Diversity and inclusion

There are 12,135 workers at Netflix Employees at Netflix are 53% males and 47%women White people make up 61% of Netflix's customer base Latino or Hispanicworkers make about 18% of the Netflix workforce

Netflix has a 9.5 out of 100 diversity score, according to Zippia.com By evaluating anumber of variables, such as the ethnic heritage, gender identity, and languageproficiency of their personnel, it computed the diversity score of organizations

c Collaboration

A few years ago, Netflix altogether eliminated yearly performance reviews as part of

a performance management overhaul Netflix chooses a 360-degree evaluation approachinstead With this system, employees receive recommendations from their coworkers onwhat they should start, stop, or continue doing To minimize embarrassment, the reviewswere initially anonymous But then, Netflix has switched to signed reviews and, mostrecently, face-to-face 360s Netflix chooses complete openness because they feel that ifyou tell people the truth, they can handle anything

d Talent Management

The success of Netflix might be partly ascribed to its focus on luring and keepingoutstanding talent The business understands the importance of choosing employees whoshare its values and can contribute to a high-performance culture Netflix has a stringentrecruiting procedure that considers applicants' aptitude for thriving in a dynamic, fast-paced workplace in addition to their talents (McCord, 2014) The organization will befilled with brilliant people who are driven and capable of fostering innovation thanks tothis strategy

2 Other rankings and awards

Netflix received one award in 2021 and two in 2020 Netflix got the award for BestCompany Culture in 2021 Netflix won in 2020 for Best Leadership Teams and BestCompany Compensation Based on 3,594 reviews from 439 participants, it's clear thatNetflix's employees are happy with their jobs The overall culture score, 81/100 or A+, isbased on employee evaluations of the Executive Team, Perks & Benefits, and OverallCulture

1 Power

a Power Source

Netflix's corporate culture prefers people above processes and promotesindependence in decision-making as well as open communication and honesty.Additionally, it promotes employee autonomy and empowerment The organizationalbehavior of Netflix is driven by the flexibility of employees to take the initiative andmake decisions, which maintains the company adaptable and competitive The companyemphasizes employee autonomy and responsibility and promotes and hires employeesbased on specific skills that align with its guiding values The company focuses a lot ofattention on aligning plans and objectives, rewarding top performers with top marketremuneration, and encouraging ongoing conversations about performance and growth.Instead of imposing strict control, managers provide context

Coercive power: Coercive power is one of the types of power utilized in negotiations

in Netflix's organizational behavior Netflix's CEO and managers are free to use pressure

to make employees perform below expectations by threatening punishment or generatingfear in them Netflix's organizational style exhibits coercive power when it offers largeseverance payments to failing workers Sharon Slade has the power to offer these bundles

as Netflix's CHRO It's crucial to remember, though, that Netflix's personnel managementstrategy places more of an emphasis on assembling top-notch teams and employing "A"performers than it does on using pressure to enforce compliance A culture that prioritizeshonesty and creativity above intimidation and fear is one that Netflix fosters by recruitingfully developed individuals and encouraging candor Another instance of avoidingcoercive power is Netflix, which addresses employee performance through casualdiscussions as opposed to formal assessments This strategy promotes open dialogue andteamwork between staff members and management, which boosts output and jobsatisfaction Netflix has developed a corporate culture that promotes creativity,innovation, and cooperation by refraining from using threats and coercion

Legitimate Power: New policies and practices for the business may be developed

and implemented by the CEO and management Sharon Slade shown this sort of power inher capacity as Netflix's top human resources officer by developing and implementing thenew policies and procedures at the business She, for instance, put "Act in Netflix BestInterest" into action by reducing costs and allowing frontline managers greater authoritywhen it came to travel and expenditure The personnel generally abided by Sharon'sregulations because of her position Given that Sharon reduced Netflix's costs, her impactwas essential in this case

Reward Power: When a boss or other authority imposes a reward, this is known as

reward power Outstanding workers who incorporate their principles into their work livesare recognized by Netflix Job security is the key prize they provide to those who performbetter than the others The workplace appreciates accountability and fosters freediscussion They exclusively work with the most talented and intelligent candidates,encourage employee creativity, and let individuals act on their feelings

capacity to motivate and inspire their staff members based on their personal traits andcharacter Employees are more likely to be inspired to work harder and be moreproductive when they regard their superiors as people

For example: Bela Bajaria - Chief Content Officer of Netflix She has a majorinfluence on the film industry Many shows she has shepherded have become globalphenomenons such as 'La Casa de Papel' (Spain), 'The Witcher' (Poland), 'Sacred Games'(India), 'Squid Game' (Korea), 'Blood & Water' (South Africa), and 'Sintonia' (Brazil) Bajaria has been honored by THR’s Women in Entertainment list, Variety’s LA Women’sImpact Report, named one of TIME’s 100 Most Influential People of 2022, and namedone of Fortune’s Most Powerful Women in 2020, 2021 and 2022

b Power Tactics

Rational Persuasion: In its organizational behavior, Netflix uses logical persuasion

as an influence strategy It is thought of as a soft influence technique to provide logicaljustifications and factual data to support demands This strategy is used by Netflix leaders

to validate their demands and win the support of their staff In a business with adistinctive corporate culture like Netflix, this tactic can boost team trust and support for aleader's decisions When employing rational persuasion, authenticity is essential toprevent losing a team's trust and participation by providing false facts In general,Netflix's use of rational persuasion is a successful strategy for influencing and inspiringits staff

Pressure: Core values, beliefs, business philosophies, and behaviors that encourage

resilience and inspire staff to support development and innovation are at the heart ofNetflix's company culture The fundamental characteristics that define the firm cultureare independent decision-making, open and extensive communication, and remarkablecandor Extreme openness, continuous feedback, and radical transparency are allencouraged in the culture, which some employees may find unsettling and is a source ofcomplaints However, such a competitive market forces Netflix to always look for ways

to enhance its operations Only the top candidates are sought after by the firm, whichmight lead to problems with pressure Despite this, Netflix's culture assures a competitiveedge in terms of innovation and a strategic advantage over other companies

Inspirational Appeals: The organizational culture of Netflix places a strong

emphasis on leadership and motivation by encouraging staff to experiment with newconcepts and uphold an honest and impartial demeanor The business employs intrinsicmotivation to enhance its human resources strategies by letting workers experiencenatural fulfillment from completing tasks This strategy aids in inspiring and motivatingworkers to contribute to the accomplishment of the organization's objectives Theorganizational culture of Netflix also places a high value on individuals by encouragingautonomy, communication, productivity, and rule-breaking This fosters a culture whereworkers feel appreciated and motivated to contribute to the success of the business In thecutthroat market of on-demand digital video streaming, Netflix improves its strategicposition by incorporating inspirational appeals into organizational behavior