How does Netflixs monitoring of its employees performance reflect the evolution of HR to 21st-century practices? In your answer, describe more traditional performance management practices as well as the contemporary ones Netflix uses. Your response should be 75150 words (12 paragraphs). Be sure to reference at least one scholarly source to support your answer.
CASE 2-1 STRATEGY-DRUEN HR MANAGBNEM: NETFLX,ABEHN-THE-SCENELOOK ATDEUVEMG ENERTANNET Nefflo is a hig hly sacoescful rerailer of movie rentalser- self-ixicixcon. This sers Ne dficxapan fromthe many vices, wirh a makker value of over 525 billion. It offers a companies that do nor hive employoer who woald he subecriprion servioe that allows ins members ro smeam a grear fir withrhe compan's culnure and thar there showsandmones inarath overthe lmener angamecon. fore snll spend grear amounts of rime and money on sile, Bla-may playes, HDTVs, surop boues, hame the- enforcing the ir HR policies-policiesthar uageroaly arer spsems, phones, and tahles. Nedlix ako inclades a 3% of the ir worichor. subucipion service for thone whopiefer wo tecive discs via the USmanl(ratherthan areamingh, witho un the hassle 2. Talout mak agonesthnuthing employas deith jobs. To avoid high employer rurnower, a companymur of d oedaresor larefoes The idea of a home delivery movie service came ro focruir talened peo ple wighthe righr skilk, altho agh mismarhesmay occur. Laroffs and firings are ako CEO Read Hastings when he was forced on pay 540 in inevirable given changing basines cycles. ln such overdoe fines afer rerurning a wideo of rhe mowe Apolla cases, in is HR"'s dury to plaoe employees in depars 13 ro Blockbosrer. He realized that he could capitalae ments that march the employees' siall ses, as weil on an exiting disrrihurion system (the US Post Offce) as ro rain empioyees ro meer cha nging businest that did nor require renrems ro leave their homes. The neede. Neflix website was launched an Augunt 29,1997 , with anly 30 emplores and 925 movies avallable for reat. 1. Saud the night masuger. To bonst overall employer Ir used a rradinonal pay per renul model, charging morale, masi HR deparments thron parnes of give $0.50 per rental plus US portage, and latefeesapplied. away free inems. Bur when sodk prices are decreas Neflios introd woed the monthly subscription conoept in ing or sales numbers are nor as high as predicred, Seprember 1999 , and then ir dropped the single semal . Whar use would a company have for an office parr?? model in early 2000 . Since thar rime, the company has Nedis ewecutives saved rhat rhey havenos seen an built its reprotanon on the hasines model of flat fee HR ininative thatruly improvedmarale.lnaread of unlimited remals withour due dares, late foes, os ship- heerleading, emplopeesneed ro be ed ocared abour ping and hand ling feesin addirion, is online smeaming bow thecompamy earnits evenue andwhar hehay: 2014, Nerflix's roul sales grew by 21%, generaring a abour how employeer sho uld execure and oommit ner income of 5112 million. . Suhscribers increased by oo their daties, employes wall be more informed almoer 40% that year, reaching 46 m Illion, and the sod. value tripled from 2012 ro 2014. But howdid theyreach the ir bonaes, and they will rhereforebe moreapt mo thar point? receive those bonuses. Knowing whar rodoand how cexfol, ver the n whers rell o aly the resulss and mos the _ increased morivanion, morale and performance will improve im behind-the ocenes story. According 1 Read Hlasringr and former chief ralent office [CTO] Party McCord. 4. Per formance eurluation. Nerflix implemented this success is nota surprise ar all given Nerfixis busi informal 360 degr ar reviews afrer realizing thar ness model. Bur more importanr, rhey say, is Nedlix's formal review sessions were nor effecrive. These HR srrasegy, which is ro creare an en rommenr of fully informal 360 -degree sessions allowed warkers ro morivated employees who undersuad the cultwe of give honest opinions ahout themselves and col. the companyand perform eweptionally well within it. Seagues-focusing on whether certain policies Hastings and McCard had the foresight ro document should stop, stait, continuk or change. Inatead of the ir HR srrasesy va PoiverPoint, and soon theseslides relying on bureaucratic measuaes, employed val. wenriral, with more than 5 milionvieas an the Web. ued these comversarionsasan organic part of rheir McCard desrahed Nerfix's HR. smaregy asconsisingof work, and rhose comersanons have been demon. the following stepe strared to lincr ea se employ er per formance." For example, Netflix found that when irs emplowees 1. Silectimg meavemployeasinecruitiog Hire employees perceved their boss as less than expert in the it who care about, understand, and then priaritine the field, employee per formance dropped. Employess companys interest. This will eliminate rhe need for indicated rhat managers who re lied on charm of formalregulanionsand policies becaiserheie employ. 10 were norrrusted and received low subor dinate ees will strive 00 groin the company fot their a wn appraikak
