REED HASTINGS- NETFLIX

Table of Contents
1. Executive summary.....................................................................................................................2
2. Introduction.........................................................................................................................2

3. Reed Hastings leadership qualities.....................................................................................2

4. Hastings leadership traits change from Pure Software to Netflix on Big Five Model of

personality........................................................................................................................................3

5. Leadership styles used by Hastings in Netflix and Pure Software...................................4

6. Role of power, organizational politics and negotiating in case study...............................4

7. Communication change by Hastings from Pure Software to Netflix...............................5

8. Recommendations to become effective leader....................................................................5

9. Conclusion............................................................................................................................5

References............................................................................................................................................6

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1. Executive summary
Reed Hastings is American business visionary or entrepreneur. He is founder of Pure Software and
co-founder, CEO of Netflix. Reed Hastings is ambitious, curious and great business visionary and also
owner of billion Dollars Company. Gig five models of personality make a good and effective leader.
In the case study Hastings was autocratic style of leadership. In Netflix, he changes his leadership
style to make proper helpful culture or friendly environment for the employees. Role of power,
organisations politics and negotiation is also important traits of big leaders. Change in
communication helps Hastings to reach at peak and achieve his dreams. Communication change
from Pure Software to Netflix change the leadership style of Hastings. These changes in style help
Hastings to raise the position of his company. Potential leader must not afraid from difficult
situations and must motivate all colleagues. Big five model of personality, Leadership style and give
motivation to employees make a best leader.

2. Introduction
A American business visionary and philanthropist Wilmot Reed Hastings, Jr. Is co- founder
and C.E.O of Netflix. He also works for many non profit organizations and also for facebook.
Reed Hastings was member and advocate change in education by charter schools in
California state board of education. Hastings first founded the Pure Software. Pure Software
develops the products related to trouble shoot software (Patrick J. Sauer 2005). Netflix was
co-founded by Hastings and Mark Randolph. Netflix has earned 100,000 titles and more than
44 million subscribers (Press release 2012). Netflix cross all hurdles successfully under a
Reed Hastings leadership and become public entertainment with rapid company growth. He is
supporter of internet television and dream about its future (Jason riley 2008).
This report tells about the reed Hastings achievements, milestones and his leadership style
used in Netflix and Pure Software. This report also tells about communication effectiveness
and also networking effectiveness that used by Hastings in Pure Software and Netflix.

3. Reed Hastings leadership qualities

Reed Hastings, C.E.O of Netflix is very ambitious, curious, great business visionary or
entrepreneur and owner or leader of billion Dollars Company. Reed Hastings leadership
quality influenced the growth of company as well as the workers who work under the
leadership and guidance of Reed Hastings.

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4. Hastings leadership traits change from Pure Software to Netflix on Big

Five Model of personality
Big five model can also be said five factor method (FFM). This method also matched to
personality leadership traits in psychology term and also big five points are related to
personality which are used to describe human personality. The theory used to describe five
factors can also be said as five factor model. The five factors are:-

Meticulousness

Openness
Neuroticism towards
BIG FIVE experience

MODEL OF
PERSONALITY

Extraversion Agreeablenes

Figure 1: Big five model personality (Self-made)

 Minuteness or Meticulousness: Meticulousness is important factor who play a vital

role in big five model. It is ability or inclination to the efficient and organised, self
control, act obediently, dream achievement and preference to make plan rather to act
quickly or immediately. High scruples regularly saw as tenacious and fanatical. Low
principles are adaptable and unconstrained, yet can be seen as messy and inconsistent
(Toegel 2012).
 Openness towards experience: It is also important and major factor which assist
Hastings to achieve his dreams and to become great entrepreneur. Appreciation and
motivation for innovative ideas changed Netflix position among different rivals.

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 Agreeableness: agreeableness is ability to compassionate and helpful. Hastings

seriously follows this point, which helped his company to achieved or reach at peak.
 Extraversion: It is also one of five factors and it focused on positive energy and
emotions to encourage and motivate the employees to reach and achieve their goals.
 Neuroticism: This is the last point of big five model of personality. It is also as
important as others. It is ability to experience difficult situation on work place very
easily. Hasting was very short tempered; he changed his nature from Pure Software to
Netflix (Denning 2012).

5. Leadership styles used by Hastings in Netflix and Pure Software

We can see Hastings leadership styles change from Pure Software to Netflix. Hastings was
oppressive and he forces everyone to do everything according to him. He also embarrassed
his employees by insulting them with critical comment on their stupid or dumb ideas. As a
very fresh CEO of Pure Software, he was not able to handle any type of criticism (Ghisliers
and Gatti 2012).
After founding Netflix, Hastings changes his leadership style as CEO of company. He
develops a new leadership style by making proper helpful culture inside the workplace. Due
to change in his leadership style, people are attracts to work in Netflix. He was also compared
with Steve Jobs, he took advices and new or innovative ideas from employees to overcome
errors and to make friendly environment in the workplace or company. This results in
achievement of dreams by Hastings in competitive world.

6. Role of power, organizational politics and negotiating in case study

Careful nature of leaders towards recruiting of employees whom will shows their interest to
take company on number 1 position. An employee will understand and support the wish of
the workplace with his high efficiency and high performance, than 97 % people will do right
job. Organizational policies, negotiation and power develop the Hastings leadership style
which lifts the company on higher position. In Pure Software autocratic style of Hastings de
motivates the employees whereas in Netflix democratic styles of Hastings encourage and
motivates the employees to give their new and innovative ideas. Leadership style of Hastings
and also professional behavior with employees and others are said by name animal. This is
example of organizational politics. He insults other employees by rolling eyes and bad
comment of their ideas. This had bad impacts on the employee’s behavior towards company.
When he comes to Netflix from Pure Software, he realized real power of leadership and learn
actual path of leadership. The new style of leadership gives comfort feeling to employees to
work in friendly environment (Kumar 2012). Netflix face big challenges by Amazon and
other companies. He negotiates regarding fresh technologies. He added team work for
advancement and development of technology. He also included his some employees in
important organization decisions. He should organize and make some motivational strategies
to raise the motivational level of employees. Performance appraisal tool is the best tool for
the employee’s satisfaction (Samad and Abdullah 2012).

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7. Communication change by Hastings from Pure Software to Netflix

We read in case study that Hastings has autocratic leadership style in Pure Software. Hastings
communication was very rude and autocratic. Employees were angry from Hastings
behaviour as well as from his attitude. People also named Hastings as hard headed leader.
Hastings shows attitude to communicate with sub-ordinates and force employees to work
hard without their willingness. He did not add his employees in any type of discussion. He
embarrassed his employees on poor and average idea by rolling eyes and by giving bad
comments. This type of behaviour gave name ‘animal’ to Reed Hastings (Northouse 2007).
After joining the Netflix Hastings communication and leadership style changes. He realized
the value of calm and good leader. He also realised the motivational power and participation
power, which increases the performance of employees. He makes participative organisational
culture, which works on employees satisfaction and they appreciates the new and innovative
ideas even ideas are dumb and average. He becomes a favourite leader of the employees with
honest and co-operative behaviour. Hastings actively works with employees to teach them
about work.

8. Recommendations to become effective leader

In this century, leaders must have the quality to overcome all situations. They should not be
scared from difficult situations. Some recommendations to become potential leaders are:
 Potential leader should learn and teach new things or innovative things. They should
show their interest in employee ideas.
 Potential leader have to motivate the employees, so that they will work with their full
efficiency and raise their performance.
 Potential leader should also focus out of their job. They have to realise the value of
other staff.
 Potential leader should make positive and balanced environment at workplace. A
great leader has potential to make area in a positive position (Powell and Koltz 2012).
 Hastings must focus on employee’s motivational area. It has been seen in case study
that Hastings was autocratic leader in Pure Software due to which employees lost their
interest in job. Therefore good leadership style is necessary for potential leader.

9. Conclusion
After reading this case study, it can be concluded that leadership style play a vital role to
become great, potential leader. As we saw in case study that autocratic nature of Hastings fall
his company whereas helpful and co-operative style of leadership helps Hastings to achieve
his dreams. Recruitment of employees also raises the position of company. Rewarding and
tolerating also play a vital role in company profit and both parameters should be viewed
carefully by leader. A good leader covers all areas to become a great and potential leader.
Change in leadership style from Pure Software to Netflix help Hastings to reach his destiny.

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