The Bosque University

Managing Organizational Culture

Catherine Martinez

FREEDOM & RESPONSIBILITY CULTURE NETFLIX

Netflix one company founded since 1997 by Reed Hastings and Marc Randolph starting
as traditional DVDs Company, which in turn allowed many facilities to anyone who
wanted to see the film and additional content thereof, as well as excellent quality. Added
to this Netflix thanks to the Internet allowed the opportunity to select and watch movies
at home. Randolph managed the website, which initially showed what the company
offered movies, and additionally showing movies currently in theaters gave, like
knowing this was not enough for the client; however this website provided information
of tastes and preferences of customers which was profitable for the company.
In addition, leaders emphasize the values that will be valued and paid, where the
importance of honesty stands to maintain a better balance within the organization, and
not having the dishonesty of its employees, linked to disperse key organizational
information, allowing the growth and development is hindered by lack of honesty,
therefore, they are important.
Netflix handles aspects that responsible people thrive on freedom and are worthy of that
freedom, the company makes an interesting reflection:
"The more companies grow, they become more complex"
In other words, the need to establish processes to sort the problems that arise, but
freedom is maintained, since every mistake that was. Netflix believes it can avoid
problems, incorporating high performers, and innovative, rather than limiting.
One of the most interesting points is that there are no limits vacation, employees can
enjoy the holidays they create fair. Netflix recognizes that employees sometimes have to
stay late into the night answer messages, but if the worker is honest, enjoy the holidays
you see necessary. And have no office hours established, nor have holiday calendar.
The context, not control is performed by employees they must be organized, not
controlled. Netflix avoids vertical decisions, ie that empower employees to make daily
operational decisions and motivate employees to consult with management on major
issues, committees or having to ask managers approvals. Rather, employees are
participants of the objectives of the company; understand well the strategy, objectives,
roles defined and the transparency of decision-making. When a talented person does
something , Netflix drives leaders to think what the context there instead of blaming the

employee. Control is only necessary in times of crisis, when a person is learning or

when you have the wrong person in a position (temporarily).
The pay top of market, it is said that Netflix recognizes that a brilliant employee pays
twice and costs less than two normal employees, so strive to have only extraordinary
employees. To keep talent must gratify not only freedom but with a good salary. The
company does not pay to all employees in similar positions equal pay but makes
differences according to their effectiveness. Another element is that the company sees
bad wage increases, because, well productivity is not improving. Netflix prefer to pay a
worker more to offer bonds, shares of the company or a package of benefits where the
employee can decide how to spend or not.
The promotion and development of the company reports that in some periods and in
some departments will be many opportunities for growth. However, Netflix agrees that
the company does not have to be a home forever. If not enough growth options, then
respect a person to get a better job. The conditions for someone to be promoted are
really stand out from the others and work on the role that is demonstrating, skills which
show that gives everything.
Other development formalized rarely effective within the organization, not tried to do as
an example they cite is: courses, assignment tutor, generally, workers in high yield are
usually best through experience.
This presentation reflects that Netflix culture revolves around two main concepts:
freedom and responsibility. Some ideas go against traditional practices the company, it
really depends on each one of the members, where their innovation strategies used
Netflix to become a successful company, was teamwork, success It had to do with the
selection of intelligent and appropriate for this company, and be sure of what they did
not want to be, making workers knew the company and have a link to it.
Netflix finally a company with influence on the market today, and where it has
established itself, thanks to an adequate and effective and innovative staff, one of the
things that was mentioned in the slides was:
Need a culture that avoids the rigidity, politics, mediocrity, and complacency that infec
ts most organizations as they grow.
We can say that a company like Netflix maintains the opposite of this sentence, their
success is not having a rigidity, employees do not have to meet strict standards, much
less a policy that achieves bored employees in large companies, much less mediocrity,
netflix is identified to have and maintain a highly innovative and sufficient staff with
strategies to keep the company positioned in the minds of consumers that are aimed at
lovers of movies, series, etc. In addition, they must have a work culture increasingly fast
forward new generations, maintaining its great impact, which has made incredible
amounts of important work, demonstrating the job strong and quality with yields, letting
his colleagues can trust the person in charge.

Questions
1. What is so favorable for the company Netflix, have as much freedom to its employees
in the long term?
2. Does the plan motivation of Netflix to its employees will be adequate, considering
that everything in excess is harmful, projecting the costs generated when an employee
leaves your holiday, how it operates at the time when the employee is on vacation?
3. High salaries that Netflix pays its employees depend the success they have?