CASE: NETFLIX Although Netflix's focus on firing B players is meant to drive motivation, it's not without its controversies. Indeed, an expose by the Wall Street Journal-which drew on interviews with 70 current and former employees-argued that the culture can seem ruthless. Some complaints revolve around the salience of the so-called "Keeper Test." This test asks managers to ponder whether they would fight to keep an employee if the employee received an offer from a competitor. If the answer to that question is "no," then the employee is probably not someone who should be retained. At one meeting of Netflix managers, one person admitted that he comes to work every day fearing that he'll fail that test. Upon hearing that admission, one executive was reported to have responded "Good, because fear drives you." That emphasis on firing B players extends to the unusual way that Netflix handles those events. Specifically, the company performs a public postmortem of firing events via e-mails or face-to-face meetings. Those discussions-which are meant to reinforce core values of candor and transparency-wind up focusing on the flaws and limitations of the fired colleague. Explained one employee about his own postmortem, "It was certainly awkward for some, but was also consistent with the culture-there is sometimes a cost to transparency." Another employee offered, "Anything like that can definitely turn into a pile on. But in my experience overall, I found them to be generally useful." For its part, the company works hard to ensure that firings aren't a surprise. Its annual feedback process is 360-degree in nature, meaning that employees receive feedback from bosses, coworkers, and subordinates. And-given the culture-it's no surprise that the comments associated with such feedback don't pull any punches. One danger of this sort of hard-driving approach is that it could prevent Netflix employees from living up to the company's other core values. For example, it may seem hard to be creative and innovative in a company known for firing people for ineffective performance. And it may be hard to be passionate about your work if you're feeling anxiety about your job security. For its part, Netflix points out that the company placed second in Comparably's list of "Happiest Employees." It also notes that its firing rate of 8 percent is only slightly higher than the 6 percent national average. Perhaps most tellingly, its rate of voluntary turnover is only 4 percent, significantly below the 13 percent national average.

Imagine working for a company whose product was so omnipresent in people's lives. How would that affect your motivation?

What motivation theories would help explain such effects? Consider the "we give adequate performers a generous severance package" mantra. Would that philosophy increase your motivation or decrease your motivation? Why? Think about a scenario where an employee is fired for being a B player. How should that event be handled exactly? How much information should a manager share with the employee's coworkers? What are the benefits of more information and what are the benefits of less information?