ORGANISATIONAL BEHAVIOUR

LEADERSHIP ASSIGNMENT

SUBMITTED BY – GITANSH RAJWANI

PGFC2221

SUBMITTED TO- DR.NIRANJAN RAJPUROHIT

Description of Reed Hastings
American finance manager Wilmot Reed Hastings was born on October 8,
1960. He serves on numerous boards and nonprofit organizations and is
Netflix's principal backer, administrator, and co-CEO (Chief) . Hastings is a
supporter of preparing change through agreement schools and was formerly a
member of the California State Leading group of Instruction. At Adaptable
Development, Hastings built a device for researching programming as his first
activity. Pure Software announced a merger with Atria Programming in 1996.
The organization's Innovative methods for identifying software design flaws
were combined with Atria's tools to facilitate the development of complicated
software design. After the chief salespeople for Unadulterated and Atria both
quit following the union, The Cash Street Journal discovered that there were
problems integrating the corporate operations of Pure software and Atria. In
1997, Hastings and former Pure software agent Marc Randolph helped establish
Netflix, which provided level-rate mail-order movie rentals to customers in the
United States by combining two rising advances: DVDs, which were much
easier to mail than VHS tapes, and an online website to order them from, rather
than a paper stock. Since settling in Los Gatos, California, Netflix has gathered
a collection of 100,000 titles and amassed hundreds of partners. After leaving
the prior company, Hastings came up with the idea for Netflix. I had a
significant late fee for Apollo, according to Reed Hastings. He bought the video
outlet for about $40 when the charge was postponed for 6 weeks. He made a
pledge to himself that he would not compromise his own ethics for the sake of a
late charge. Later, he realized they had a very successful company strategy.
Customers can work out at their convenience for about $30 to $40 each month.

A Study of the rise of the leader

Hastings permits the workplace to function in accordance with the authoritative
leadership style because he thinks that the staff and other stakeholders are
capable of managing an autonomous working environment and will ultimately
act in a way that benefits Netflix, themselves as employees, and their
families. Making an organizational culture in the Netflix environment, which is
centered on fundamental company functions, won't work and won't have a
significant impact on traits, motivation, behaviours, and performance, according
to Reed Hastings. It is clear from the leadership assignment that the productive
organisational culture he created has enhanced cooperation, where employees
feel obligated to reward their employer by providing excellent work. Netflix's
market performance is currently estimated to be over $23 billion.

The leadership approach

Based on the criteria of discover, design, developing, and delivering, the

leadership methodology might be compared to Reed Hastings' leadership model.
Hastings' innovative intelligence, cooperation, and transformative leadership
work together to effectively define his leadership abilities. Personal time off
policies, performance reviews, remuneration plans, and travel initiatives vary
significantly from the norm in corporate America. Within this leadership
assignment, proof from Netflix's creative operations and leadership agendas
may be seen below
Individual time: Employees have the flexibility to take as much time off as is
necessary and important; management and employees collaborate on this. The
Hastings creative and innovative thinking workplace methodology is based on
this concept.
Travel strategy: Employees are expected to behave themselves in a mature
manner and to spend as much money as they would if it were their own money .
Official evaluations: Instead of being eliminated, corporate management and
employees are being urged to make discussions about performance a natural
part of their workplace discussions .
Compensation schedule: The criteria for bonuses are not present; employees
receive market-based remuneration and may predict how much remuneration
will be provided under the equity system; those with stock options see a
reduction in their payouts.
Nevertheless, no leader, no matter how good or developed they are, is perfect.
When he declared that Netflix would split its email-order business from its
streaming business and change customers independently for each service in
2009, Reed Hastings was on to something. The company raised consumer costs
by almost 60% and attracted the outrage of both customers and the stock
market. Even though this was only a short-term solution (the business
immediately abandoned the plan), the impact on the organization was
significant; since 2010, DVD membership had dropped from 20 million to 5.3
million subscribers. Despite this critique, the leader's ability to anticipate a need,
create a strategy, and bring it to the market again demonstrates their creative
and original thinking as well as their transformative qualities.

Leadership qualities
By encouraging progress among their people, transformational leaders can
change the direction of an organisation. For the purpose of expansion,
advancement, and change, traditional standards and guidelines are disregarded.
Transformational leadership, despite being one of the most well-known
authority styles in use today, is not without its problems. If the founder is a little
self-serving or exploitative, they may arouse people and convince them to act
against the association's ultimate benefits . Additionally, if leaders are
constantly pushed and are not naturally guided by the pioneer's style, leaders
may burn out more quickly. In this leadership assignment, Reed Hastings
demonstrated transformational leadership in a number of processes in addition
to creating an innovative and transformative leadership mindset (By decreasing
formal reviews and bonuses and effectively managing the company's personnel
resources, Reed Hastings was able to inspire his team members to make their
own decisions as long as they contributed to the achievement of the company's
main business development and other goals. By decreasing formal reviews and
bonuses and effectively managing the company's personnel resources, Reed
Hastings was able to inspire his team members to make their own decisions as
long as they contributed to the achievement of the company's main business
development and other goals.

Connection with stakeholders

According to the company's attempts to raise investor knowledge of the
importance of diversity in the workplace, all stakeholders, including Reed
Hastings, give investors a glimpse into the company's open and transparent
culture regarding more than just who are its shareholders .Netflix's commitment
to diversity, social responsibility, and inclusiveness has been summarised by the
stakeholder communication method.

Communication and interaction with investors

In order to complete this leadership assignment, it has been examined how Reed
Hastings' style of communication and collaboration with the company's key
stakeholders has surpassed investors' expectations for key economic measures
like revenues, expenses, EBITDA, and free cash flow . 
Strengths
Knowing the target audience's requirements and wants is one of Reed Hastings'
key abilities as a transformational leader. Hastings' brilliant vision has
converted his team members and supporters into believers, enabling him to rule
Netflix with full majority control and decision-making. Despite being arrogant
and demanding of his stakeholders, Hastings would be remembered as one of
the practitioners of innovative and adaptive workplace cultural development at
the time, which is another strength in terms of leadership effectiveness. Being
determined and powerful for customers, investors, and employees is Reed
Hastings' next leadership strength.

Weakness
The weaknesses of Reed Hastings as the CEO of Netflix and as a corporate
leader can be seen in the context of the leader's ethical business duty. First of
all, Netflix frequently fails to clearly inform its customers about changes or
consequences of its actions . This is an example of unethical management on the
part of Reed Hastings and the board of directors of the company. A moral leader
is always responsible for being open and honest about the choices, decisions,
and adjustments made within or outside of the company. As a result, it could be
argued that the leader in this situation lacked moral character since he was
unresponsive or unclear to one of the key stakeholders in the company.