Review- How Netflix reinvented HR

The case study on Netflix documents the talent management strategy and culture of
the company. The focus of the company was on recruitment, performance review,
and team building. The first goal of Netflix was to hire the right people, as the
company believed that a good employee would be motivated to work more if
accompanied by equally efficient colleagues. Further, when the wrong employees
are recruited, it increases the chance of attrition.

The second goal of the company was to establish a process of reviewing peers. Peer
reviews allow the employees to evaluate the performance of their colleagues. The
third was to develop motivated teams that could work together without disruption.The
fourth focus of the company was to create a business-oriented company culture that
allowed all its employees to understand the business model, goals, and mission of
the company. Fifth, Netflix introduced innovative human resource management
policies, like not tracking vacation and absences.

The first aim of the company was to hire the right people. It is important to hire the
right people, as this will allow the company to create an environment that would
support the culture of the company. The right people will understand the business
and the culture within the organization. Hiring the right people will create a cohesive
environment, helping in knowledge management. Performance review of the
employees is important. When evaluating an employee, holistic evaluation process
concentrates only on the performance of the employee.

The case study shows that a holistic environment for performance review helps
garner a competitive advantage for the company. However, the success of a 360-
degree assessment to increase performance has not been proven through empirical
findings.The managers of Netflix value the importance of creating a great team. A
good team would work in accordance with the company’s strategy and follow the
goal of the company. Here the stress is not only on creating a good team, but on
also ensuring that the managers become good leaders. It is important to have a
great team, but it is equally important to have a focused team-leader.

The company culture is important to ensure that human resource management can
become a competitive advantage. Hence, leaders are responsible for ensuring
implementation of the company culture within the organization. The leaders of the
company develop the company culture. Leaders must remove all discrepancies
between values and behavior within the organization.
Further, the leaders must ensure that the employees understood the business model
and strategy in order to align their personal goals with that of the organization.
Further, leaders must disseminate their knowledge about the organization to all the
employees within the company. This will help the employees to know the different
segments within the organization and understand the unique subcultures present
within the departments.

Talent management is not a process of HR but that of innovation and business.

Therefore, talent management must not be approached as simply as acquiring
people, but hiring the right people and grooming them in the right manner. Thus,
approach towards the human resource, talent acquisition, and management should
be from a strategic point of view rather than through the lenses of human resources.