Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 18

Programme

Module name

Schedule Term

Student Reference Number (SRN)

Report/Assignment Title

Date of Submission

(Please attach the confirmation of


any extension received)

Declaration of Original Work:

I hereby declare that I have read and understood BPP’s regulations on plagiarism and that this
is my original work, researched, undertaken, completed and submitted in accordance with the
requirements of BPP School of Business and Technology.

The word count, excluding contents table, bibliography and appendices, is

words. Student Reference Number: Date:

By submitting this coursework you agree to all rules and regulations of BPP regarding
assessments and awards for programmes. Please note, submission is your declaration you are
fit to sit.

BPP University reserves the right to use all submitted work for educational purposes and may
request that work be published for a wider audience.

BPP School of Business and Technology

1
MANAGEMENT ESSENTIALS

Summative Assessment

2
Table of Contents

Introduction 3

Task 1 – Management Practice at Netflix 3

Netflix’s mission, values, and preferred style of management practice 3

Mission 3

Values 4

Preferred Style of Management 6

Critical assessment on alignment of the mission, values, and preferred style of management
6

Task 2 – Key Business Challenge for Netflix 7

Task 3 – The Potential Impact of Netflix Managers’ Emotional Intelligence on Employee


Engagement and Organisational Performance 9

Impact of Netflix Managers’ Emotional Intelligence on employee engagement 9

Impact of Netflix Managers’ Emotional Intelligence on organisational performance 11

Task 4 – The Alignment of Netflix Values and Management Practice 12

Conclusion 15

References 17

3
Introduction

In the current competitive atmosphere for becoming successful, organizations are looking
towards better management procedures to be adopted. The better management within
companies ensures optimum utilization of resources, planning, elimination of wastage,
earning efficiency and productivity in all business operations (Crostack, Klute and
Refflinghaus, 2011). Besides, new talent acquiring must be a focus because currently several
issues are found. For example, lack of management leads to failure in terms of revenue
earning, economic constraints, lack of client base, and bad publicity affecting reputation
(Huscroft et al., 2013). Therefore, a good management practice is required by the
organizations to hold competitive edge respectively.

A good management practice is defined as, “practice, procedure and tool which offers to
proceed towards desired performance by help of environmental outcomes as it gets evolved
through time resulting in continuous improvement in terms of information, technology and
awareness in industry” (Benson, 2014). Thus, it is important to re-evaluate management
practice and making changes for achieving success within the companies.

Netflix is American over the top content platform and production company with primary
business focuses on subscription streaming service online for films, TV series, and produced
in-house with around 208 million subscribers (Pilipets, 2019). For this given case, the
purpose of the study is to determine current management practice at Netflix for retaining the
top global talent for continued success as the world’s largest entertainment and media
company. Henceforth, some major aspects are covered in the report including reflection on
management practise, Key Business Challenge, Impact of on Employee Engagement and
Organisational Performance, as well as management of value alignment respectively.

Task 1 – Management Practice at Netflix

Netflix’s mission, values, and preferred style of management practice

Mission

The Netflix’s as an organisation have corporate mission statement which is entertainment on


worldwide scale as well as offering on-demand movie streaming services to the customers in
longer run.

#1 Best in-class entertainment

The Netflix as an entertainment organization have invested in consumers so that different


types of products could be offered including TV shows, sitcoms, originals, movies and
documentaries in higher quality content (Rivera, 2019). The streamlining online has become
a major objective through unique subscription mode. Besides, the major benefits included
good app quality support, control, customized interface and different categories to select
medium.

4
#2 Global Dominance

Another mission in longer run is to globally dominate OTT platform space as it provides
reach in more than 30 languages and 190 countries around 73.94m users in the US and
Canada, 66.7m in EMEA, 37.54m in Latin America, and 25.49m in the Asia Pacific (Rivera,
2019).

The corporate mission put highlights on the entertainment industry success with thriving of
consumer expectations and preferences. The first aspect of mission statement showcases that
company needs to become successful in terms of entertainment business with different
categories broadly identified including movies, series, documentaries performance art, stage
plays (Business Strategy Hub, 2021). Therefore, mission statement focuses on Netflix
operations and strategic plans required to broad the Netflix operations. On the contrary,
second aspect focuses on worldwide reach of audience with company association should be
achieved. For example, movie streaming business should expand on larger global scale for
which company want to explore in large space (Rivera, 2019). Henceforth, Netflix aims to
expand organisational structure by offering expansion across the globe for diverge audience
and markets.

Values

The core Netflix values focuses on specific behaviours of skills of employees rather than
organizational structure aspects. It includes ten core and fundamental values described below.

Judgement: Netflix believes in making strategic decisions by keeping company’s success as


major motto. For example, rent-by-mail DVD service was converted into streaming platform
so that new changes in medium could support successful growth of the company (Peakon
Post, 2021). Thus, root cause of problem is identified with calculated strategic judgements
and receiving market capitalization.

Communication: Secondly, communication is core value of Netflix which offers better global
expansion. For example, for achieving effective communication style and engaging globally,
company have focused on non-English content for the viewers worldwide. The increasing
network could incorporate different content, cultures and regions as entertainment service
(Peakon Post, 2021).

Curiosity: The company always decides to integrate new opportunities and thus curiosity is
another core value to be seen.

Courage: The Netflix’s another core value to taking risks and associating themselves with
uncomfortable decisions. The employees who performed well get rewards and praise of better
work done with appreciation (Peakon Post, 2021). The new programs for with no vacation
policy is instilled as employees could take leave for some time and again re-join effectively. 

Impact: The core value of Netflix showcases that performance in business operations could
improve the overall success. The staff and employees are not controlled however they are
appreciated for bringing new ideas (Peakon Post, 2021). Thus, new changes impact them to
bring new ideas and incorporate in business operations making HR practices strong.

Innovation: The core value of innovation in Netflix is based on developing new ideas to
resolve problems. The concept of video stream platform was innovation and brought

5
consumers nearby accessing content much faster as compared to DVD launch which takes
more than 1 year to access locally at shops. Besides, subscription starts for different devices
in a range affordable by viewers easily.

Integrity: The company always offers the content which is original and operates in business
aspects with same core value. For example, transparency and originality by not hurting any
person, group or religion is incorporated by new and authentic content. The stories are not
authorized or accessed by copyright issues and content is always unique in terms of
presentation to viewers.

Inclusion: Netflix follows this core value by providing new options and diverse
collaborations, backgrounds and cultures. For instance, one movie per week in local and
regional language have been supported by the company. It also creates regional support and
offers content in different languages with unique and authentic themes respectively.

Passion: The emotional connection with audience is highly appreciated by Netflix as core
value respectively. The application platform adopts recommendation engine from which an
algorithm predicts best content like movies, documentaries, series, and viewership
(TheBrandBoy, 2021). As a result, consumers also get affected by search engine to gauge
their emotions and personal connection from video streaming platform. Hence, personalized
offerings and customization also builds good connect with audience for identification of
content.

Selflessness: Some organizations only focus on profit minded streaming towards OTT
platform which differs from Netflix’s core principle. The company has kept an ad-free
platform even though a lot could be gained from paid ads. The viewers' experience has been
kept as top priority by developing valuable business skipping ads (TheBrandBoy, 2021).
Also, the organization have kept minimal subscription mode as per the device availability.
Hence, consumers are kept as topmost priority as per alignment of company’s motives.

Preferred Style of Management

Reed Hastings has preferred democratic style of management as Netflix’ management


framework. This style focuses on autonomous management of employees on values,
behaviors and skills. The democratic management style is described as a style in which
managers take decisions by taking inputs from the employees through consultation,
participation and collaboration as well as encouraging them for new ideas and contributions
(Agirre, Reinares and Freundlich, 2014). Besides, employees are provided multiple
opportunities to perform well and provide a way to complete objectives with instilled core
values required from the workforce. Under the process of democratic management style,
Reed Hastings have given full focus on changing business perspective through which
operations are undertaken, adoption of creative intelligence and it’s reception from
employees. The democratic style focuses on asking employees on what new operations
should be accomplished by offering rewards in the long term process, seeking inspiration

6
from employee experience and achieving success from new creative ideas (Moskovich, and
Palgi, 2015).

Thus employees following an autonomous approach has been adopted by the workforce in
Netflix to manage work driven environments with employees respectively. For example,
Netflix has eliminated formal reviews among managers and employees and focuses on
creating value by discussing performance and work interactions (Zhang, Cao and Tjosvold,
2010). Rather than focusing on traditional corporate practices such techniques will offer
culture positively by motivation, positive attitudes, behaviour and performance.

Critical assessment on alignment of the mission, values, and preferred style of


management

All three elements, mission, values and preferred style of management like democratic follow
each other due to a common approach of incorporating employees in the decision making
process. Netflix as a company holds entertainment and global dominance as the primary
mission to accomplish among the consumers. The value and democratic management is
aligned with mission by offering encouragement and motivation among employees to adopt
new goals for accomplishing. The value is based on skills and behaviours of the employees
who could help to create business ideas making Netflix more successful. Furthermore, with a
strong mission goal and value belief, the democratic style of management becomes easier to
execute.

To explore the concept of democratic style of management, the manager takes inputs from
employees on business operations, feedback, and full participation for new opportunities
(Dragilev, 2018). With Netflix’s vision is to transform the company’s growth, democratic
style of management offers employees an equal weightage to complete this objective. The
mission and values also demands the employees to take forward initiative and support the
company for making it successful in the entertainment business. Therefore, employees focus
on creating value within Netflix with new and resources to earn extreme success in terms of
business process management.

The adoption of democratic management as management style for Netflix was chosen to
uplift motivation, morale and job performance of employees through different mechanisms. It
also incorporates an atmosphere for managers to create so that employees could follow it as a
form of inspiration (Mitonga-Monga, Flotman, and Cilliers, 2018). In the case of the Netflix
company, this type of management aligns mission, and core values completely. For example,
change could be adopted with democracy such as Reed Hastings makes employees accept
organizational commitment through decision making, loyalty for articulation of vision, and
offering support in creating something better (Avolio and Yammarino, 2013). As employees
are involved in smaller decisions, democratic style has made them more committed to task,
followed by success in the entertainment business. Hence, there is a positive relationship
between democratic style and commitment is made to get successful alignment of mission
and objective completion.

7
Task 2 – Key Business Challenge for Netflix

With an increasing competitive edge, in the Netflix organization several issues are also
developed. First of all, the current competition in the company occurred due to different
packages offered by rivals. For example, Netflix have exclusive offering to stream
subscription services whereas Amazon’s prime video subscription package does not have
extra charge for selected product with free shipping from purchasing catalogue (Sebag
Montefiore, 2019). Henceforth, increasing competition have challenged company to add extra
perks with their consumer offering. Additionally, content from different services make
company highly qualified and works as an important factor respectively. Another competitive
challenge is due illegal piracy of content offered. The pirated content to available which
makes it difficult to overcome the disclosing the new content. For example, applications from
BitTorrent makes it easy to capture pirated data. It operates on a decentralized network and
does not have shutdown which makes content available and more accessible with comparison
to average user (Sebag Montefiore, 2019). Therefore, removal of such key business challenge
could be accomplished with help of following management competencies. Besides, Netflix
adopts them for making their competitive edge.

i. Managing Yourself- Creativity

Due to ever increasing competition, Netflix have been adopting creativity in number of ways
since it’s inception. First of all, Netflix introduced a rental model in the year 1998 with
addition of subscription model to sell DVDs. Due to ever expansion of Netflix company, the
new model was launched for taking fees and unlimited rentals to develop respectively. This
creative expansion was helpful and made a change in selling of DVDs for movies and TV
series. However, growth of OTT platforms made them to adopt new models for consumers in
the year 2003 (Netflix Annual Report, 2020). Thus, company was shifted to adopt subscriber
model as new innovation technique.

The movie rentals were a very tedious process in which Netflix found huge challenge. The
viewers will be logged in, make payment request, wait for receival and after watching sent in
back as well as late fee cannot be incurred as expectation. In addition to this, rental stores are
now operating and thus more time was undertaken. Hence, new model was developed by
Netflix in which as per lower movie charge, late fees and watching from home could be
accomplished. The online website platform offered a much larger content for consumers to
watch with huge flexibility. With help of subscription model, it becomes easy to manage the
consumers by giving them content as per likes only.

The new creative change brought with business model subscription offered Netflix a huge
opportunity as technology company and interdiction of personalized product respectively.
The new platform was developed as personalized application which uses recommendation
system and variety of algorithms to develop content to member preferences Netflix Annual
Report, 2020. The new model from creative change incorporated user ratings and reviews so
that from historical view only liked content is shown. Thus, new software was developed by
developers who improved company’s overall performance in terms of engaging content. With
new innovative change, digital content was seen as per customer changes made on
application with vertical and horizontal screen adjustments.

Another transition was working on video content for streaming entertainment online. Initially
Netflix started as an DVD rental company that was working on inventory of movies and
content. However, a new change was adopted from traditional movie rental businesses to

8
OTT platforms. Thus, company with online streaming content was highly appreciated by
consumers. The new change was found for on-demand launch in the year 2007 (Netflix
Annual Report, 2020). As a result, new change in the Netflix provides support new platform
for watching TV series, movies under pay per subscription model. To put it clearly, with help
of the subscription service with help of video on demand, creativity is managed. As a result,
it has supported driving source for revenue as well as entertainment, television and movie
making industry support for facing competitive challenges effectively.

ii. Managing Yourself- Decision-Making


Decision making is an important management competency which could change
organization’s direction achieving success. To earn competitive advantage, Netflix have
always believed in taking decisions in an effective manner. One of the major decisions
undertaken were due to download and go feature on their subscription model. As a result,
consumers could easily access show offline after downloading. This model was launched
across 130 countries globally (Netflix Annual Report, 2020). In turn of events, another
decision was undertaken focused on Netflix mobile experience improvement to make global
expansion in foreign territories as videos are watched on their phones. Around 2017, their
mobile application went through several changes including scrolling and change in content
for encoding of static video scenes as well as usage of bits. This change was helpful to allow
content streaming in an effective manner and through phone as well as supportive internet
quality (Sebag Montefiore, 2019). On the other hand, upgrades were another part of better
decision-making developing Netflix’s commitment towards viewers and earning competitive
advantage. Therefore, decision making approach creates competitive edge which could be
helpful in facing challenges associated with company.

Task 3 – The Potential Impact of Netflix Managers’ Emotional Intelligence on


Employee Engagement and Organisational Performance

Emotional Intelligence is the most important aspect which managers of Netflix requires to
overcome major barriers in terms of management. The emotional intelligence is described as
understanding ability, using and managing emotions in a positive way for stress reliever,
communication, empathy and conflict diffusion (Obradovic et al., 2013). There are four
dimension of EQ which managers needed including self-awareness, self-regulation, social
self-consciousness and relationship management. Thus, EI could influence employee
engagement and organisational performance if managers of the organization closely observe
as per following discussion.

9
Impact of Netflix Managers’ Emotional Intelligence on employee engagement

Employee engagement is a process through which organizational members within the


organization as per work role and engage through expressing with physical, cognitive, and
emotional aspects. The employee engagement with emotional intelligence competencies
could improve leadership skills, co-worker relationships, work tasks and resources as well as
rewards for the employee working in Netflix corporation.

The following EI competencies in Netflix managers will impact employee engagement


positively.

Self-Awareness: The self-awareness develops emotional contact with other people and for
self-regulation (Huang et al., 2016). The Netflix managers have self-awareness skill through
they are able to understand the team and guide them well. Furthermore, empathy as primary
source through which each employee’s opinion in autonomous culture is understood. For
example, new ideas on incorporating in online platform will be highly appreciated in
Netflix’s sales team. As a result, team members and customers both are satisfied with the
outcome.

Self-regulation: The Netflix managers also requires to have self-regulation ability in which
emotional maturity reflects higher capacity assessment and emotional control altogether
(Huang et al., 2016). The change resilience is seen in Netflix managers because they support
new creative changes for the company to overcome any challenge. The flexibility towards
responding to change also helps employees to share their issues with management authority
respectively.

Social Self-Consciousness: The important aspect is social self-consciousness which supports


the development of emotional contact with other people as well. The managers at Netflix
understand what each employee could offer with proper communication (Huang et al., 2016).
For example, employees are offered responsibility and freedom to become creative in the
business process. Hence, trust with each employee by the manager is developed regarding
emotional intelligence competency.

Relationship Management: The purpose of relationship management competency for


managers to earn respect and trust within team members (Akila and Thangavel, 2011). For
example, it included communication skills, listening ability and reassurance of managers for
each employee. The Netflix as a company always involves their employees by taking proper
inputs on working process and improvements needed. The feedback works as part of earning
transparency and communication. The management takes place with team members guidance
through motivation of achieving maximum efforts. The emotionally intelligent managers at
Netflix also supports conflict management process internally (Akila and Thangavel, 2011).
For example, here managers focus on determining contrasting viewpoints, emotions and
affection within conflicting parties and determining common grounds to agree and disagree
respectively. Besides, the management is also associated with teamwork to develop an
flexible, friendly and collegial atmosphere with employee preference and promotion of closer
interpersonal relationships of employees.

Impact of Netflix Managers’ Emotional Intelligence on organisational performance

The entertainment and media organizations work into those settings where interpersonal
interaction is needed. In Netflix the interaction occurs for managing online service platform

10
with marketing strategies and new innovations (McCord, 2014). The interactions among
managers and team occurs for allocated tasks including customer interest, receiving
instructions, supervising reports, cooperation and coordination among team members
(Shekhar, Gupta and Dubey, 2012). The managers at Netflix understand employee issues
related to tasks by using antecedent and response focused emotional regulation so that social
interaction related to problems are resolved.

The emotional intelligence offers a set of competencies in which personal competence and
social competence with combination offers role in direction and control of individual’s
feelings related to work efficiency. The employees could be managed with managers who
have full control on mood, and impulse in work settings. For example, Netflix keeps
employee neutral by cutting of employee rating to place in higher performance or
underperformance list and keeps them motivated with monotonous working experience
(Channe, 2015). The empathy focuses on understanding one’s emotions and feelings and
working as per changing situation through emotional competency, emotional maturity and
emotional sensitivity (Supramaniam and Singaravelloo, 2020). With employees interacting
to Netflix managers related to new business processes, the performance of organization
improves in terms of decision making.

The job satisfaction and wellbeing are observed under manager’s emotional intelligence
competency resulting in organizational performance. Furthermore, employees kept in positive
emotional state develops positive affection in terms of work environment (Danquah, 2014).
Due to such a reason, job satisfaction and well-being is felt by the employees as they
experience positivity in work culture. The commitment also follows by successful job
satisfaction by working on the job wholeheartedly. The Netflix managers through open
communication encourage employees for offering feedback on current scenario and
opportunities for improvement (McCord, 2014). With incorporation of employees with EI
competency in managers bring satisfaction among employees due to time effectiveness,
higher turnover intentions, interest in daily tasks and full commitment. The Netflix managers
have been seen self-motivation as EI competency as they inspire employees to think
independently for decision making (Channe, 2015). Henceforth, managers offer confidence to
the employees who are not performing well at every level respectively. Overall, employees
being cared off at Netflix work culture provide the increment in organizational performance
successfully.

11
The organizational performance improved by the Netflix managers with strong emotional
intelligence competency change resilience. The ability for change resilience focuses on
adjustment of one’s emotions, thoughts and behaviours with changing situations and
conditions altogether (Quang, Khuong and Le, 2015). At Netflix, Reed Hastings incorporates
employee feedback with change as part of it so that employees could feel empowered
impacting motivation, attitude, behaviour and performance (Goncalves, 2018). The working
situation depends on employee’s interaction openly on ideas, suggestions and opinions. Being
a manager of Netflix, higher emotional intelligence is seen because company offer
constructive feedback on each employee with changing needs which impacts on
organizational performance as a whole. Another aspect is that organizational performance
depends on service delivery and quality of product which is due to higher emotional
intelligence. As it is seen that Netflix uses an autonomous strategy for employees so they
could take an independent approach for selecting what is right for the company's improving
service quality (Brunetto, Teo, Shacklock and Farr-Wharton, 2012). Thus, customer
satisfaction with new type of content on Netflix website also improves the performance of the
company.

Task 4 – The Alignment of Netflix Values and Management Practice

i. Managing Yourself - Resilience


To manage employees as individuals, Netflix aligns judgement as a core value. The
employees at company have been encouraged to take wise decisions, determine root problem
causes, critical thinking for resolving problems, skills for strategic approaches, and decision
making at times of difficult situations. Being a resilient employee, any difficulty could be
managed successfully by taking strategic decisions and make right judgements. Thus,
resilience reflects on Netflix company because approach for employees is to make them
quick learner and focusing on dealing with company’s toughest challenges ahead.
Resilience Engineering have been adopted as an approach at company. According to Senior
site reliability engineer; Ryan Kitchens, Netflix have developed a resilient tendency through
podcast for ensuring how failures are managed. According to this socio technical system,
people and tool interact with one another to highlight unforeseen interaction and operational
surprises to tough situations (Denyer, 2019). Furthermore, the system focuses on determining
incidents and generating recovery medium with holistic view on what is required to minimize
consequences. Whereas, Netflix managers have designed resilience risk scoring board
because employees are provided with creative freedom and responsibility. The risk scoring

12
approach have standardized, intuitive, and valuable metric to manage current risk and operate
it in a successful manner (Baldwin, 2021).
Besides, some changes included increasing capacity for changing adaptability, increment for
operational expertise, advanced approaches for learning paradigms, change in internal tool
building for people interaction on strategic approaches, as well as improvement in team
building with empowerment and guidance on operational responsivity and development
balance (Baldwin, 2021). Hence, with help of resilience as competency and aligned with core
value, Netflix have received different outcomes.

ii. Managing Relationships - Stakeholders


To manage stakeholder relationships, inclusion have been considered as Netflix’s core value
which aligns with stakeholder management. The inclusion value focuses on working in
collaboration and with innovation so that objectives could be match. Some major objectives
included management of people from different backgrounds and cultures, understanding
perspectives of different stakeholders, curiosity for working with different viewpoints,
adjustment towards demands of stakeholders, as well as intervention for marginalization. For
management of stakeholders among Netflix organization, information sharing and
transparency have been considered as primary approach for managing all stakeholders like
CEO, executive team, and board of directors. Two important management practises are
adopted like periodic attendance of board members for meetings, and communication of
board so that information could be shared among stakeholders and observing answers with
help of memos (Larcker, 2018). As a result, approach for stakeholder management is
accomplished by keeping employees and executives well informed on new decisions, policies
and concerns. Besides, meetings are helpful to understand expectations of all stakeholders for
any new business decision taking place respectively.
iii. Managing Relationships - Conflict and Negotiation

To manage different relationships, conflicts could appear among different stakeholders while
taking opiniated decisions. Furthermore, to align this management competency,
communication is included as primary core value from Netflix which gets aligned. To remove
conflicts and doing negotiation, the management appreciate communication. The purpose of
communication is to understand that employees are understanding basic requirements
respectively as core objective (Larcker, 2018). Hence, Netflix determine that employees
could understand written communication with concise articulated speech, listening and
understanding on new changes, determining to manage calm pose in stressful situations, style
of communication for different people with cultural backgrounds, and offering timely as well
as resourceful feedbacks.

13
To manage different conflicts, negotiation as management competency takes place by
offering structured governance from board attendance, executive, and senior executive
meetings. The management takes three important meetings for sharing major concerns for
conflict resolve process.

● First of all, staff meeting with Hastings takes place at monthly meetings with all seven
executives to be present for open discussion related to strategic and organizational issues
(Larcker, 2018).
● Secondly, executive staff meetings take place as quarterly meetings with top 90
executives in which presentations and breakout sessions are done to review strategic
concerns, competitive threats, and issues related towards workplace and policies (Larcker,
2018).
● Lastly, quarterly business review takes place as 2-day gatherings and top 500 employees
are included in quarterly review as focuses on business, presentations, crowd-sourced
discussion topics, and group dinners (Larcker, 2018).

iv. Managing Teams - Teamwork

For building better teamwork and management of team, two core values of Netflix get
aligned including courage, and impact. First of all, employees at Netflix are encouraged for
taking risks and associated with selection of challenging decision making. The focus is to
make employees take risk in working as team by taking responsible decisions related to task
allocated to them. In the teamwork, each individual should cooperate with other to make
thing work successfully. Furthermore, teamwork is built if each team member who performed
well through rewards on showing courage in decision making and appreciation on work
accomplished in effective manner (Kaplan, 2016).

In addition to this, Netflix another core value is impact through which Netflix adopts a format
to coach, model, and train employees in effective teamwork and team effort development. For
example, new programs could motivate employees to improve in the workplace and conduct
better results effectively (Kaplan, 2016). Some major benefits included approval for
important work done with accomplishments, records of strong performance and trust building
in team management, improvement of colleagues in teamwork, as well as receiving results
for developed process.

It has been understood from above discussion that Netflix follows a company culture through
honesty and responsibility given to the employees. Furthermore, all the employees should
adopt to a responsible method and technique for earning business model success. For such
reason, teamwork is done by keeping open communication from each member. The approach
adopted here is by seeking understanding on what people think in team. For example, de-
centralization of work in decision making offers motivation force as all team members are
adopting same objective even if some ambiguity exist altogether (Towery, 2018). Henceforth,
team management in Netflix is adopted with open communication, expectation of creativity
from employees and keeping autonomous culture to perform and support other team members
in a balanced fashion.
14
Conclusion

On a closing note, Netflix is an organization whose sole purpose is to offer entertainment


among the viewers with unique content. The mission and values among organizations focuses
on providing unique content to people who watch platforms for sources of recreation. In
addition to this, democratic management style focuses on people and their attitude towards
taking major business decisions. The major business challenges were found in creativity and
decision making due to lack of resources and support. For example, competitive edge makes
us shift towards new changes respectively and want to adopt new creative ideas. To resolve
different issues in the organization, creativity and decision making could be useful
competency which will bring innovation to overcome difficult situations respectively.

Emotional intelligence is extremely vital in the Netflix’s managers so that they could able to
understand what is going on with employees. The work productivity and efficiency could be
earned if employees are engaged into work in a very stable culture and atmosphere. For
employee engagement, emotional intelligence competencies will create a culture in which
interpersonal relationships and work ethics is promoted. The managers align employees at per
their caliber and potential without reaching any over the top challenging situation. On the
contrary, Netflix could improve organizational performance by bringing best from each
individual employee. The service delivery and product quality in terms of entertainment will
be better because open discussion with employees on bringing new changes are promoted.
Also, democratic leadership works because each employee has creative freedom in promoting
business activities respectively.

It was found that Netflix’s core values do reflect on the management practices which are
undertaken by the company. The practices like resilience, stakeholders, conflicts and
negotiation as well as teamwork are important competencies which support companies to
manage any difficult situations. Henceforth, the competencies are mandatory for
organizations to balance work and aim at earning success.

References

Agirre, I., Reinares, P. and Freundlich, F., 2014. Does a Democratic Management Model
Enhance Performance through Market Orientation? Empirical Evidence from the
Mondragon Industrial Group. Review of Radical Political Economics, 47(3), pp.345-367.

Benson, T., 2014. Building good management practices in Ethiopian agricultural cooperatives
through regular financial audits. Journal of Co-operative Organization and
Management, 2(2), pp.72-82.

Business Strategy Hub. 2021. Netflix Mission Statement, Values, & Culture | Business
Strategy Hub. [online] Available at: <https://bstrategyhub.com/netflix-mission-
statement-values-culture/> [Accessed 24 June 2021].

Brunetto, Y., Teo, S., Shacklock, K. and Farr-Wharton, R., 2012. Emotional intelligence, job
satisfaction, well-being and engagement: explaining organisational commitment and

15
turnover intentions in policing. Human Resource Management Journal, 22(4), pp.428-
441.

Baldwin, S., 2021. Netflix’s way: innovating resilience - About Resilience. [online] About
Resilience Available at: <https://www.aboutresilience.com/netflixs-way-innovating-
resilience/> [Accessed 24 June 2021].

Channe, P., 2015. People Matters - Interstitial Site — People Matters. [online]


Peoplematters.in. Available at: <https://www.peoplematters.in/blog/assessments/5-hr-
strategies-you-should-learn-netflix-12320> [Accessed 19 June 2021].

Crostack, H., Klute, S. and Refflinghaus, R., 2011. Holistic requirements management
considering the degree of requirements' performance. Total Quality Management &
Business Excellence, 22(6), pp.655-672.

Dragilev, D., 2018. 4 Types of Management Styles to Master to Become a Strong Leader.
[online] Lifehack. Available at: <https://www.lifehack.org/837968/types-of-
management-styles> [Accessed 28 June 2021].

Danquah, E., 2014. Analysis Of the Impact of Emotional Intelligence on Organisational


Performance: A Banking Perspective. British Journal of Marketing Studies, 2.

Denyer, D., 2019. How Netflix Is Building Resilience Engineering Into Its Culture. [online]
Linkedin.com. Available at: <https://www.linkedin.com/pulse/how-netflix-building-
resilience-engineering-culture-david-denyer> [Accessed 24 June 2021].

Dr. R. Akila, D. and Dr. N. Thangavel, D., 2011. Team Leader’s Emotional Intelligence
Competencies and Team’s Emotional Intelligence Norms. Indian Journal of Applied
Research, 3(3), pp.211-213.

F. Larcker, D., 2018. Netflix Approach to Governance: Genuine Transparency with the


Board. [online] The Harvard Law School Forum on Corporate Governance. Available at:
<https://corpgov.law.harvard.edu/2018/05/10/netflix-approach-to-governance-genuine-
transparency-with-the-board/> [Accessed 24 June 2021].

Goncalves, V., 2018. A Leadership Analysis of Netflix CEO, Reed Hastings | PSY 532:
Foundations of Leadership (Dobbs). [online] Sites.psu.edu. Available at:
<https://sites.psu.edu/leaderfoundationsdobbs/2018/09/21/a-leadership-analysis-of-
netflix-ceo-reed-hastings/> [Accessed 19 June 2021].

16
Huang, W., Li, Y., Wang, S. and Weng, J., 2016. Can ‘democratic management’ improve
labour relations in market‐driven C hina?. Asia Pacific Journal of Human Resources,
54(2), pp.230-257.

Kaplan, E., 2016. Here’s What Netflix Can Teach You About Creating an Awesome Work
Culture. [online] Medium. Available at: <https://medium.com/the-mission/here-s-what-
netflix-can-teach-you-about-creating-an-awesome-work-culture-76b52a06edc6>
[Accessed 24 June 2021].

McCord, P., 2014. How Netflix Reinvented HR. [online] Harvard Business Review. Available
at: <https://hbr.org/2014/01/how-netflix-reinvented-hr> [Accessed 19 June 2021].

Moskovich, Y. and Palgi, M., 2015. Cultural change in a kibbutz factory: from democratic to
more autocratic management style. International Journal of Cooperative Studies, 4(2),
pp.27-38.

Mitonga-Monga, J., Flotman, A.P. and Cilliers, F., 2018. Job satisfaction and its relationship
with organisational commitment: A Democratic Republic of Congo organisational
perspective. Acta Commercii, 18(1), pp.1-8.

Obradovic, V., Jovanovic, P., Petrovic, D., Mihic, M. and Mitrovic, Z., 2013. Project
Managers’ Emotional Intelligence – A Ticket to Success. Procedia - Social and
Behavioral Sciences, 74, pp.274-284.

Peakon, a Workday company. 2021. Workplace Spotlight: Netflix Company Culture Focuses


on "People over Process". [online] Available at: <https://peakon.com/blog/employee-
success/netflix-company-culture/> [Accessed 24 June 2021].

Pilipets, E., 2019. From Netflix Streaming to Netflix and Chill: The (Dis)Connected Body of
Serial Binge-Viewer. Social Media + Society, 5(4), p.205630511988342.

Quang, H., Khuong, M. and Le, N., 2015. The Effects of Leaders’ Emotional Intelligence on
Employee Engagement in Vietnamese Construction Companies – A Case of Hoa Binh
Corporation. Journal of Economics, Business and Management, 3(8), pp.746-752.

R. Huscroft, J., T. Hazen, B., J. Hall, D., B. Skipper, J. and B. Hanna, J., 2013. Reverse
logistics: past research, current management issues, and future directions. The
International Journal of Logistics Management, 24(3), pp.304-327.

17
Rispens, S., Jehn, K.A. and Steinel, W., 2021. Conflict management style asymmetry in
short-term project groups. Small Group Research, 52(2), pp.220-242.

Rivera, A., 2019. Netflix’s Mission Statement & Vision Statement: A Strategic Analysis -
Rancord Society. [online] Rancord Society. Available at:
<https://www.rancord.org/netflix-corporate-vision-statement-mission-statement-
strategic-analysis> [Accessed 24 June 2021].

Shekhar, S., Gupta, D. and Dubey, R., 2012. Emotional Intelligence in Retail Banking
Employee. Global Journal For Research Analysis, 3(6), pp.1-2.

Supramaniam, S. and Singaravelloo, K., 2020. Impact of Emotional Intelligence and


Organisational Culture on the Performance of Malaysian Administrative and Diplomatic
Officers. International Online Journal of Educational Leadership, 3(2), pp.41-55.

Sebag Montefiore, A., 2019. Challenges faced by Netflix. [online] Medium. Available at:
<https://medium.com/digital-society/challenges-faced-by-netflix-a577e82384a>
[Accessed 24 June 2021].

Towery, N., 2018. The Netflix Way: Shaping Culture at the Team Level | Pluralsight. [online]
Pluralsight.com. Available at: <https://www.pluralsight.com/blog/teams/netflix-shaping-
culture-team-level> [Accessed 24 June 2021].

TheBrandBoy | Creative Small Business Blog with Free Resources. 2021. Core Values of
Netflix: Mission Statement, Vision and Success. [online] Available at:
<https://thebrandboy.com/core-values-of-netflix/> [Accessed 24 June 2021].

Wilkinson, F., 2015. Emotional Intelligence in Library Disaster Response Assistance Teams:
Which Competencies Emerged? College & Research Libraries, 76(2), pp.188-204.

18

You might also like