2023 Fall HRM

Assignment 2
25 Sep. 23

Assignment 2: Case study - Netflix

Date: 2023-9-30 Student number: 21229544 Name: Ritesh Karkee

Read the case study: “Netflix: The Firing Machine?” answer the following questions.
Submit via Moodle by October 1 (Sun). Bring your copy for the class discussion on October 2 (Mon.)

1. Does pay transparency work? Explain in the context of Netflix.

In my opinion, I think that pay transparency does work. Since employees are able to find out how much their
coworkers are being paid, it allows them to try and work harder to get a raise. Furthermore, they will know
what type of work they need to do in order to achieve such a salary, so they can compare the salary to how
well their coworkers do their jobs. This can give them an idea of how they should behave and act. The only
downside to this would be that the employees could find the difference between their salaries unfair, which
can create conflict. In the context of Netflix, I think pay transparency is very effective because it is a company
that solely focuses on the performance of its employees. Since they strive to select the best of the best for their
company, it is more likely that the employees will work harder to get a better salary instead of slacking.

2. Why do you think Netflix was successful in its human resource practices, especially regarding their
“hire and fire” policy? Discuss first with regard to the policy in the United States, and then how you
think it will work globally?

I think that Netflix was successful in its human resource practices when it comes to their “hire and fire” policy
due to 2 main reasons, which would be the very generous severance package for the employees that are let go,
and the constant performance reviews and feedback the employees get from their coworkers. The employees
are let go and given a severance package if their performance is not meeting the standards. Due to the package
being substantial, it makes it so the former employee has a good view of the company along with the company
having an overall positive reputation. The performance reviews allow the employees to know what they need
to work on, which provides them an opportunity to grow and work harder. In the case of it working globally, I
think it might be difficult due to the cultural differences of countries. For example, as stated in the case study,
Japan found it very difficult to implement this policy due to them being a very conservative country. I think
this also applies to different countries as well. While I do think it is a very effective policy, it might be better
if there are some sort of adjustments that fit the country.

3. Critically analyze the recruitment practices of Netflix.

There are two main practices that should be noted when it comes to Netflix’s recruitment process. Firstly, they
make sure that the person is experienced. They do not tend to look at the educational background, as long as
 2023 Fall HRM
Assignment 2
25 Sep. 23

the person has the right technical skills to do the job for which they are applying. Whether they have a masters
or a PhD, it does not really matter as long as the know what they are doing. This allows them to be unbiased
and have immediate contributions to the company by hiring the person. Secondly, they make sure that the
candidate is a right fit, whether it is to join the company, a specific team, etc. A use of a panel is made when
recruiting, where there are HR representatives, senior management, and members of the core team. If even
one person does not think that the candidate is a right fit, it is highly likely that person will not be hired, as
team synergy is very important to the company.

4. Critically analyze why Netflix did not implement a live-at-a-distance policy or a telework policy.

Since Netflix has a very homogenous culture, they believe that it is easier to communicate with each other
when everyone is so close. Due to the environment being high performance based, it is necessary for them to
have interactions with each other in person as this is highly effective. Also, conflicting schedules might occur
if Netflix decided to implement a telework policy, because of the different time zones. It would be
exceedingly difficult and time costly. Furthermore, Netflix has a performance review “every week”, which
might be hard to judge if the employees are scattered across the globe. In order to determine someone’s
performance accurately, Netflix probably viewed the telework policy as a necessary sacrifice. Another point is
the difference of culture. Some countries might view being candid as normal, however others might think of it
as being rude. These points are why Netflix did not implement a live-at-a-distance policy or a telework policy.