MBA522 Unit 2 Case Study

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Anissa Corrales Park University MBA522: Organizational Behavior and Leadership Gregory Moore January 17, 2024

Case Study 6.1: Netflix As the expansion of Netflix grew they established a worldwide name for themselves, and has been the main sector for streaming services. There are a lot of reasons for the organization's success, but the public has become interested in the HR procedures that are in place behind the scenes. By treating its employees with freedom, Netflix has adopted an unconventional approach to meeting HR requirements. Non-traditional work schedules combined with intrinsic drive lead to this independence and empowerment. How does Netflix use intrinsic motivation to support its HR practices? While the majority of businesses base their HR and management structures on standard operating procedures, Netflix uses intrinsic motivation to motivate its workforce. Its is shown that building a talent pool whose interests closely align with the companies can be achieved through maintaining intrinsic personal joy that comes from completing tasks to foster self- empowerment, accountability, and autonomy (Neck, Houghton, and Murray, 2017). It is evident that Netflix places a high value on intrinsic motivation by giving its staff members a great deal of trust. The organization allows employees to make decisions that are in the best interests of the business, as opposed to micromanaging through conventional HR procedures. By appreciating their independence, giving them the freedom to own their work, and encouraging a sense of responsibility, this strategy engages workers' intrinsic motivation. Since it was shown that the association between organizational citizenship behavior and perceived investment in employee development was moderated by intrinsic motivation. Only employees with high levels of intrinsic drive showed a favorable connection according to the moderation form (Kuvaas & Dysvik, 2009). Netflix treats their employees as responsible individuals which instills intrinsic

motivation in them to perform well in their positions. They also have the freedom to decide how they want to be compensated and engage in candid discussions about their work. Why would a creative firm choose to use intrinsic motivation where an industrial firm would probably choose to use extrinsic rewards? Unlike industrial organizations, creative firms rely on innovation and variety to grow their work in ways that are advantageous. This approach fits with the nature of the task, intrinsic motivation is frequently more effective in creative workplaces. Extrinsic motivation encompasses autonomy, self-expression, and purpose, all of which are necessary for creative endeavors. “ It is a general perception that when employees are motivated, they perform better. It means that if organizations have a good reward management system, the motivation of their employees will be high and the performance of their employees will amplify with greater magnitude” (Manzoor & Asif, 2021). By focusing on particular objectives rather than promoting experimentation and discovery, extrinsic rewards such as bonuses or stringent performance measures may inhibit creativity. People with intrinsic drive are more likely to be self-directed, creative, and dedicated to their work, which is important in fields that depend on originality and creativity. Organizations benefit from intrinsic motivation because it fosters innovative qualities. Intrinsic motivation promotes diligence and curiosity in the work. Explain the appeal of nontraditional work schedules and how Netflix has chosen to implement them. Employees that seek flexibility and a good work-life balance are drawn to nontraditional work arrangements. It's crucial to understand that employees have diverse needs and preferences and that productivity isn't always correlated with a typical 9 to 5 schedule while using this approach. Netflix has been able to implement a typical work schedules that include core

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examples as to how this schedule works for their company. Their first core concept they go by is limitless vacation, which lets workers take days off and holidays without feeling pressured to take time off when needed. This strategy has been successful in acknowledging that workers are capable of managing their own schedules and in motivating them to strike a balance between work and personal life. Flexible compensation is another principle that Netflix upholds, allowing workers to select the method of receiving their pay. Employees are now empowered to use their pay in accordance with their individual financial preferences and risk tolerance. In order to improve the evaluations, Netflix also employs a method known as 360-degree reviews. “Netflix implemented 360-degree reviews in place of regular performance appraisals. You can achieve good results—possibly better ones than a corporation that assigns everyone a five-point rating— if you have regular, straightforward conversations about performance” (McCord, 2023). This enables staff members to engage in candid discussions with multiple colleagues regarding an individual's performance. This method places more emphasis on growth and constructive criticism than it does on external rewards. Considering the amount of freedom Netflix offers its employees, the firm has been able to hold them to higher standards by integrating all of these fundamental ideas into its operations. Employee autonomy and trust are fostered by Netflix’s emphasis on a certain amount of flexibility, which allows workers to make responsible time management decisions, select their own methods of pay, and hold candid performance reviews.

References: Neck, C. P., Houghton, J. D., & Murray, E. L. (2020). Organizational behavior a skill-building approach . SAGE. Dysvik, A. and Kuvaas, B. (2009). ‘The relationship between perceived training opportunities, work motivation and employee outcomes. International Journal of Training and Development , 12 : 3, 138–157. Manzoor, F., Wei, L., & Asif, M. (2021). Intrinsic Rewards and Employee's Performance With the Mediating Mechanism of Employee's Motivation. Frontiers in psychology , 12 , 563070. https://doi.org/10.3389/fpsyg.2021.563070 McCord, P. (2023, August 14). How netflix reinvented HR . Harvard Business Review. https://hbr.org/2014/01/how-netflix-reinvented-hr

MBA522 Unit 2 Case Study

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