Problem identification and strategic significance

Netflix, a streaming service that offers TV shows, movies, anime, and documentation,
implemented Human resource management in a unique way. However, this unique way of HRM
practices creates some issues for the company, for example, Netflix did not hire fresh graduate
students or inexperienced people and did not allow the work-from-home facility to its
employees. Thus, the company was criticized by many employees which may affect its
expansion (Fairchild, 2016). Employee retention within the company is also based on employee
performance, poor performers are fired from the company. Further, there are no entry-level
positions in the company and the hiring process is very difficult. Netflix only hires employees
who fit its American culture, it becomes challenging for international employees to adjust and
adopt Netflix’s American culture (Fairchild, 2016). Thus, Netflix has resolved these HRM issues
to some extent but if not addressed, they may impact Netflix’s future performance as employees
will not prefer to work with Netflix.

Diagnosis and analysis

Most organizations manage human resource management as a strategic endeavor and the
impact of hiring the right talent is multiplicative (Meyers et al., 2013). If an organization hires
the right people and keeps motivating them to develop their talents and challenges, then every
person will be able to face challenges. Once an organization has recognized the incredible talent,
it must empower employees to address the organizational challenges (Meyers et al., 2013).
Consequently, in 2001, Netflix laid off a third of its employees from the company, when the
company faced the verge of bankruptcy. The remaining employees of the company came
together to build consciousness that they are high-performing and talented employees. It shows
that Netflix can do the best for its business and recruits only talented and best performers to
tackle complex economic challenges. Netflix is different from other business organizations and
implements different HRM practices (Hidayati, 2022).