MAN2120 ASSESSMENT 3:

INDIVIDUAL ESSAY
UNDERSTANDING AN ORGANISATIONAL BEHAVIOUR

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 Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Concept of Organisational Behavior in the case of Netflix.........................................................3
Reason and process on of enabling the above outcomes or consequences by the leadership
(related to power and communication) and organizational culture..............................................4
Explain how and why you believe the existing management practices in the case of Netflix
minimize or worsen this situation by giving the necessary concepts..........................................5
Conclusion.......................................................................................................................................9
Reference List................................................................................................................................10

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Introduction

The presented study discusses the case of Netflix as well as its management practices, which
have an influence on the company's workforce. Under the specified type of Management
practices, the appropriate organizational behavior concept impacting the employee's outcome is
explained. The study also discusses the various technique of supervision and the working
environment of the organizational culture together with their pros and cons. Moreover, the study
also includes the dark side of Netflix in terms of Organisational behavior This dark side may
come across in the existing management practices of Netflix so that if Netflix will know prior to
that it can be prevented. And at last, the detailed analysis of mitigating the effect of this dark side
is also described.

Discussion

Concept of Organisational Behavior in the case of Netflix

Employees in the business are influenced by management practices. Reed Hastings, Netflix's
CEO and co-founder are at the heart of the company's managerial success. It has been shown that
Netflix's organizational behavior is linked to his persistent motivating leadership as well as
adaptive management (Pérez, 2020). He is credited for creating a new culture for the
organization that is optimized for flexibility, agility, as well as creativity while also increasing
talent density, increasing honesty, and reducing control. Employees are more productive,
happier, and engaged when their philosophies, beliefs, and outlooks build a culture of
adaptability, fun, success, cooperation, innovation, and excitement. Netflix's major goal is to
increase employee productivity, with the belief that if an employee is really not excellent, they
should go. They want to increase employee engagement, so they can do this by giving employees
more power. Instead of training the employees how to accomplish the activity, the task can be
broken between them, and commands are provided. Rather than providing training to workers,
they focus on choosing the finest candidates who would be capable of prioritizing the
organization's interests while also recognizing and respecting the need for a higher-performing
environment. The employees are motivated, and they receive honest feedback on their

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performance. In contrary to some organizations that use a five-point scale to assess everyone,
honesty and simplicity are the most important factors in reviewing the regular performance of its
employees in order to get the best possible conclusion.
Every employee linked with the Netflix company benefits from the human tool of organizational
behaviour. The following are the important organizational behaviour concepts that explain the
above-mentioned effect or consequence of employees:
Increasing talent density: The main feature of this concept of organizational behaviour is to
simply hold those employees who have the highest capability and performance in the company.
Netflix's management does not provide rules and standards in effect for subpart management
since the corporation does not remove or prevent any individual connected with the organisation
who will be bound by rules and regulations (Fouladirad et al.2018). Netflix creates an
organization that is primarily dominated by better achievers who don't even need any kind of
leadership or control, resulting in unhappiness among the entire workforce of the organizational
structure.
Increasing transparency: the company Netflix encourages honesty among its staff, allowing
them to freely give their thoughts with good intention. This increases the effectiveness of the
entire team during working.
Both the concepts of organizational behaviour discussed above are adequate to improve the
factor of motivation between Netflix workers. It convinces employees to provide their best
overall of performance by removing appropriate rules, which raises the degree of unhappiness.
Netflix also employs motivation through a working design which promotes feedback as well as
flexibility. Employees begin to communicate freely with their superiors, coworkers, and
managers, forming an interpersonal relationship based on the sanitation factor.

Reason and process on of enabling the above outcomes or consequences by the leadership
(related to power and communication) and organizational culture

The working environment, as well as staff supervision, have a significant impact on the result or
outcome of an organization. Similarly, Netflix's suitable management and work environment
encourage their employees to contribute towards the achievement and success of the
organizational goals and objectives. As previously said, the performance of the entire team is
noticed to improve, as it is already influencing employees to provide their best effort and

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motivating them to communicate their opinions in order to attain organizational goals. When
workers begin to share their opinions, the relationship between employers and employees grows
fairly strong, implying that proper feedback is offered for the improvement of the firm. As a
result, each of these results is favourable since they are guiding the company towards
achievement, whether directly or indirectly.
According to the case of Netflix, the CEO of Netflix, Reed Hastings, is known for being
responsive to the management. Until now, when asked about the company's success, he has
credited it entirely to Netflix's organizational culture. This organizational culture has been
developed by Reed Hasting himself as he believes in the foundation of motivating the
employees, sense of urgency, and the formation of a goal to perform, together with adequate
planning, provides the organization with short-term achievement, leading to the long-term
success of the organizational goal. 'Netflix developed a culture of accountability and liberty by
focusing on three fundamental pillars: increasing talent density, increasing honesty, and reducing
control. All of these things are interconnected (Odor, 2018). It would be difficult to remove all of
the laws and processes when expecting great performance from the workers as a current form.
However, Reed Hastings has given the definition of organizational culture and in terms of his
concept, it is linked with people. Is there a way to convert any miserable group of people into a
creative and high-performing company that is uncompromising, unforgiving, and candid? He
retains the best and particularly the most skilled staff, providing them with the necessary
feedback to help them achieve. He effectively uses his power as well as interacts with their
people in order to get the finest possible result and effects.
Reed Hastings, the company's chief executive officer, is famous for trying something different
approach in terms of leadership. He gives his staff a more high level of authority, but it comes at
a cost-increasing factor and a system of direct feedback that includes a relationship between
positive and negative feedback.

Explain how and why you believe the existing management practices in the case of Netflix
minimize or worsen this situation by giving the necessary concepts.

On one hand, Netflix's organizational behaviour motivates its employees, but on the other hand,
it may be indicated that they are indifferent to human resources by their habit of firing employees
immediately. This uncaring attitude of firing unproductive staff may sound surprising to some

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employees who are new in the company. Moreover, as per the research, the staff of Netflix are as
happy just like every other organization's employees in terms of numerous criteria like the
company's average salary. Netflix's present management practice is quite demanding and harsh
when it comes to changing any needy group of employees into a creative and higher
performance. Netflix, on the other hand, does not think twice about firing staff who provide poor
results. This phenomenon may show as a Dark Side for the organization in the coming days,
which must be avoided.
Several years ago, the organization was discovered to improve its management performance by
conducting an annual performance appraisal (Suryanto et al.2018). The organization chose a
360-degree feedback method that includes an informal although regular evaluation.

Netflix has implemented a collaborative culture for the growth of resistance between their staff
in order to promote growth and increased competitiveness as the broadcast digital media market
demands. This corporate culture system produces an online platform which is highly successful
for delivering the value proposition and also assuring the requirement for competitive advantage
for Netflix's business strategy, intense growth plan, and general strategy. The company uses its
organizational culture to establish a framework of behaviour, business strategy, belief, as well as
fundamental beliefs that enable and inspire its workers to contribute to the success of this online
business through creative designs. For example, the business's Organizational culture encourages
collaboration, allowing for more innovative ideas to be shared throughout the organization. The
organizational culture contributes to the competitiveness of this streaming media company by
encouraging the use of innovative ideas. The business's corporate strategy is being strengthened
by cultural signals.
Netflix's corporate culture encourages its staff to experiment with new approaches and ideas in
order to meet their goals. The current situation stimulates competition with other businesses like
Amazon and YouTube. This competitive market creates a great deal of pressure on businesses to
strive for continual improvement in their operations through the strategic adoption of operational
culture, and to provide original shows and content for internet platforms that are mostly
appealing. Netflix's corporate culture addresses a number of difficult issues, including customer
preference matching, entertainment quality enhancement, and consumer preference orientation
(Lozic, 2021). The company's organizational culture promotes a strategic management

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framework that benefits both the sustainable competitive position of the company and its
development.

It should be highlighted that the corporation does not provide any bonuses or training to its
employees. Current management practice and notions linked to organizational behaviour require
a close examination of employees' capacities and skills, followed by a harsh removal to those
who are not good or exceptional. Considering this, around 71 percent of Netflix workers are said
to recommend their friends to work for the company. Netflix is among those firms that is
publicly regarded as the finest environment to work around the world since the company's
management encourages individual quality and honesty over everything else. Netflix give
importance to its employees more than the policies made by the management, according to the
company's culture. Netflix neglects unnecessary rules and maintains just the most productive
staff.

The following are some of the importance of Organisational Behaviour in case of Netflix:
Skill Imrpovement: The research of organisational behaviour aids in the development of
abilities (Bakhri et al.2018). This involves employees' capacity to become much more productive
and their use of expertise. It also enhances the job skills of supervisors and other staff.
Understanding Consumer Purchasing Behavior: Identifying consumer (buying) behaviour is
also an essential aspect of improving the market strategies.
Employee Motivation: OB assists in understanding the foundations of motivation as well as
many methods for appropriately motivating employees.
Employee Nature: It is critical to understand workforce and staff nature in order to effectively
manage them. The organisation may use OB to determine whether workers or persons are
Introverts, Extroverts, Motivated, Dominant, and so on.
Organizational Efficiency and Effectiveness: Organizational behaviour analysis aids in
increasing the efficiency and effectiveness of the business.
Better Workplace Environment: OB assists in the creation of a healthy, moral, and efficient
workplace environment.

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Optimum Resource Utilization: The analysis of OB aids in a better understanding of
employees, their work styles, and skills. Management could train and inspire staff to make the
best use of resources if they understand this.

The famous 'cultural Deck' of the company Netflix declares that they give significant retirement
benefits, stating that they provide a list of 4 months complete salary as compensation, allowing
their ex-employees to seek for any other organization. It has been discovered that the corporation
has a policy of terminating individuals who are only anticipated to provide acceptable production
as a result of their existing management practices (Jeanina & Suzana, 2018). This may be shown
in their organizational culture as the business expects their employees to put forth their full
attempt despite the fact that they may not be members of the company for their whole life. And
thus these concepts or strategies of Netflix can disclose the Dark side of their management and
soon it will going to affect their existing management practices.

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Conclusion

Netflix was founded in early 2000 for $50 million, resulting in a loss of roughly 57 million
dollars but quickly becoming a successful organizational model. Reed Hastings, the chief
executive officer, and Co-founder of Netflix is regarded as the reason for the success of Netflix,
as he employs his exceptional leadership to make the organization completable in the age of
disruption. He attributes his successful performance to the corporation's distinct culture, which is
built on three fundamental pillars: increasing talent density, increasing honesty, and reducing
control. This results in increased creativity, adaptability, and agility in the corporate culture,
which has an influence on employee behaviour. But, the existing management practices of
Netflix have a bad and a good side that must be removed in order to ensure the success and
development of the future of Netflix.

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Reference List

Pérez, E. P. (2020, May). NEXT EPISODE, NEXT MARKET: SOCIAL MEDIA MARKETING
FOR SVOD: THE CASE OF NETFLIX. In GLOBAL (Vol. 4, p. 8).

https://onresearch.ch/wp-content/uploads/2020/05/ON-RESEARCH-journal-edition-
4.pdf#page=8

Fouladirad, M., Neal, J., Ituarte, J. V., Alexander, J., & Ghareeb, A. (2018). Entertaining Data:
Business Analytics and Netflix. International Journal of Data Analysis and Information Systems,
10(1), 13-22.

https://www.researchgate.net/profile/Joshua-Alexander-4/publication/
333998454_Entertaining_Data_Business_Analytics_and_Netflix/links/
5d121fe692851cf4404a5a9a/Entertaining-Data-Business-Analytics-and-Netflix.pdf

Odor, H. O. (2018). Organisational culture and dynamics. Global Journal of Management and
Business Research.

https://pdfs.semanticscholar.org/182e/3e766df0a248625267bfd409896c0a843943.pdf

Suryanto, T., Haseeb, M., & Hartani, N. H. (2018). The correlates of developing green supply
chain management practices: Firms level analysis in Malaysia. International Journal of Supply
Chain Management, 7(5), 316.

https://www.researchgate.net/profile/Muhammad-Haseeb-33/publication/
329040632_The_Correlates_of_Developing_Green_Supply_Chain_Management_Practices_Fir
ms_Level_Analysis_in_Malaysia/links/5bf2b8e1299bf1124fddc30b/The-Correlates-of-
Developing-Green-Supply-Chain-Management-Practices-Firms-Level-Analysis-in-Malaysia.pdf

Lozic, J. (2021). MEDIA INDUSTRY TRANSFORMATION: COMPARISON

MANAGEMENT IN COMCAST AND NETFLIX. In Economic and Social Development (Book
of Proceedings), 69th International Scientific Conference on Economic and Social (p. 107).

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https://www.researchgate.net/profile/Venelin-Terziev/publication/
352257758_Prosecutor's_Office_of_the_Republic_of_Bulgaria_Investigated_corruption_crimes
_and_counteracting_corruption/links/60c0d04aa6fdcc2e612bd2d5/Prosecutors-Office-of-the-
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Jeanina, C., & Suzana, D. (2019). THE EMPLOYEE PERCEPTION ON THE IMPORTANCE
OF ORGANIZATIONAL CULTURE FOR THE FUTURE OF AN ENTERPRISE. Annals
of'Constantin Brancusi'University of Targu-Jiu. Economy Series, (3).

https://www.utgjiu.ro/revista/ec/pdf/2019-03/31_Ciurea.pdf

Bakhri, S., Udin, U., Daryono, D., & Suharnomo, S. (2018). Diversity management and
organizational culture: Literature review, theoretical perspectives, and future directions.
International Journal of Civil Engineering and Technology, 9(1), 172-178.

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