(Tiểu luận) group assignmentorganizational behaviornetflix case study

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATION PROGRAMS GROUP ASSIGNMENT ORGANIZATIONAL BEHAVIOR NETFLIX CASE STUDY Group: Class: Marketing 63D Team Members Đinh Thuỳ An Lê Nguyễn Hiền Anh Nguyễn Hiền Anh Đỗ Thị Hà Phương Phạm Vũ Xuân Nhi Trịnh Minh Hiếu Instructor: Assoc Prof Dr Pham Thi Bich Ngoc Hanoi, November 2022 TABLE OF CONTENTS I Introduction About Netflix: About Reed Hastings and Marc Randolph: About case: 3 3 II Answer the questions Question 1: To what extent employees look to their CEOs for motivational signals? Do you think Netflix employees grow to be motivated by the same things that engage Hastings? Question 2: Which theories seem relevant to customers’ motivations (to pick certain titles), not just employees’ motivations (to perform their tasks well)? The expectancy theory Goal-setting Theory Two - factor Theory Question 3: When it comes to complex work - like Netflix engineers analyzing data on customer viewing habits - will intrinsic or extrinsic motivators prove more effective? Why? Definition and Overview The principals of intrinsic and extrinsic motivation Status quo and solution 11 III Conclusion 12 REFERENCES 14 I Introduction About Netflix: - Netflix, Inc is an American production business and subscription-based overthe-top streaming service with headquarters in Los Gatos, California Reed Hastings and Marc Randolph established Netflix in Scotts Valley, California, in 1997 It offers a collection of movies and TV shows through distribution agreements as well as its own works, dubbed Netflix Originals As one of the top entertainment services in the world, Netflix has 223 million paying subscribers in more than 190 countries who enjoy TV shows, documentaries, feature films, and mobile games in a range of genres and languages Members have unlimited access to play, pause, and resume watching whenever and wherever they like, and they are always free to alter their plans About Reed Hastings and Marc Randolph: - Reed Hastings: American billionaire businessman Wilmot Reed Hastings Jr He serves as co-founder, chairman, and co-CEO of the company.(CEO) of Netflix, and sits on a number of boards and non-profit organizations - Marc Randolp: Marc Bernays Randolph is an American IT entrepreneur, lecturer, and advisor He was Netflix's co-founder and first CEO About case: - According to an online study done by the app Blind, Netflix is among the top firms with the happiest employees In 2019, 86% of participants reported feeling satisfied and inspired The major indicator for happiness employed in the research was whether respondents reported "substantial growth," "moderate growth," or "no growth." 73% of respondents said they would recommend Netflix to friends and family, and 90% said they supported the CEO, which is consistent with Glassdoor reviews Compared to the average CEO approval rating of 69% provided by Glassdoor, this rating is noticeably higher What, then, made the workforce appreciate Netflix and the CEO? One of these is Netflix's distinctive culture, notably the way that staff members are encouraged II Answer the questions Question 1: To what extent employees look to their CEOs for motivational signals? Do you think Netflix employees grow to be motivated by the same things that engage Hastings? Since they manage the company, the CEO is viewed as the superior individual He has full responsibility for all business choices made by the company, including those pertaining to marketing, operations, accounting, human resources, and so forth Without a doubt, executive roles in businesses are some of the hardest occupations on the planet, if not the worst.In actuality, what takes place is that the CEO is expected by both the company and the employees to provide perks as compensation The process that explains an individual's intensity, direction, and persistence of efforts toward obtaining a goal is known as motivation Motivating and inspiring staff is one of a CEO's most crucial responsibilities Only motivated employees will give their best work and be most productive Praise is the first and simplest strategy People are curious as to whether their work is up to par Positive feedback may be a fantastic motivator for productivity A safe workplace must be provided Making sure there is a good work-life balance is preferable Only in a workplace that values the need to balance work and leisure can employees be joyful and productive Therefore, allow your staff to take time off each week to unwind Additionally, money is the best motivator of all People work for the money they are paid in exchange It's not only about getting paid; an employee's wage also serves as proof and acknowledgement of their efforts When employees feel valued by their employers, they are more motivated to work The CEOs are frequently looked to by employees for encouragement and direction In this instance, Hastings' customers are both his inspiration and his passion Every time, Netflix makes an effort to comprehend the decisions its millions of users make Teams of designers, mathematicians, and programmers are employed by Netflix to investigate why viewers gravitate toward certain films while avoiding others In a similar vein, Hastings thinks that if the staff members are happy, they will be inspired to help Netflix create many great customer experiences Employees who are happy with the demands of their jobs, their pay, and their cultural fit will be more productive, it has been demonstrated Researchers at the University of Warwick found that happiness increased staff productivity by 12% in a series of trials In the case of Netflix, I believe that when Hastings addresses any issues that can annoy employees, such as pay, benefits, time off, and the freedom to work only when they feel up to the task, the workers will be guaranteed to provide quality work This might be viewed as a sign that he had successfully structured things so that staff' motivation would be driven by the needs of the consumers Despite their tiny size, these elements still contribute to the work's increased competitiveness and speed up its development Additionally, workers well just because they can receive the incentive or award that their employer announced They may also be able to raise the bar for their personnel in order to reach that goal.The management' initiatives are always eagerly anticipated by the staff Of course, the reality motivates Netflix staff members Otherwise, how does Nexflix spread its hegemony over the world? Additionally, it is true that innovation never stops moving forward Consequently, people have a propensity to solve difficulties by thinking outside the box All other requirements for motivation are already satisfied According to some, an employee is motivated when they have the following three beliefs: that their effort will lead to performance (Expectancy), that their performance will lead (Instrumentality), and that their outcomes will be worthwhile (Valence) to results Question 2: Which theories seem relevant to customers’ motivations (to pick certain titles), not just employees’ motivations (to perform their tasks well)? The expectancy theory A theory says a person's propensity to act in a particular way is influenced by how strongly they anticipate that action will result in a particular outcome and how appealing that consequence is to them The theory emphasizes three relationship: ● Effort-performance relationship ● Performance-reward relationship ● Rewards-personal goals relationship The expectation motivates people to exert the effort necessary for performance For the customers, if a consumer is making an effort to find your brand, performance would be doing so It is the responsibility of the brand to make joining its rewards program as simple as feasible for customers Brands who are aware of this are able to direct consumer effort in a way that will produce results and increase motivation to participate in the program Programs for rewards are made to entice clients with incentives Netflix would advertise films or television episodes based on the customer's interests, as was mentioned in the case As a result, Netflix has created motivation for its users to keep watching content on its website This is accomplished by allowing users to select from a variety of options The decision is taken in consideration of what the person finds enjoyable If the person is consistently presented with options that not make them pleasant, demotivation will occur Netflix prevents demotivation by providing a variety of options For the employees, they demonstrate to staff that they are capable of coming up with new ideas and act as a link in the chain by demonstrating innovation success to workers rather than leadership Netflix’s core value is “independent decision-making by employees” Netflix recognized that they could often achieve better results at a lower cost by just asking personnel to rely on logic and common sense rather than tight regulations Managers at Netflix are supposed to create the environment or context rather than take charge or direct others Additionally, they developed an office setting that rewarded excellence and barred those who misused or violated their liberties "Personal Top of Market" is how Netflix ensures that its employees receive competitive pay Working more intelligently is superior to working harder The business doesn’t run on a regular 8-hour workday Efficiency is the main objective, much as what half-day Fridays or a 4-day work week aim to accomplish Employees are allowed more free time instead of being required to work lengthy hours with the idea that they can return to the workspace and perform better, increasing productivity Their values link tightly to innovation: “You care intensely about our members and Netflix‘s success” Netflix makes a culture of freedom and accountability On Comparably, the employee satisfaction at Netflix is ranked in the top 5% of businesses with comparable sizes Employee happiness has a lot to with compensation, and at Document continues below Discover more from: Organizational Behavior Đại học Kinh tế Quốc… 301 documents Go to course Final exam of Organizational Behavior Organizational Behavior 100% (10) VĂN HÓA Vingroup Organizational Behavior 100% (6) 102003 44 OB A1 - OB 22 14 17 Assignment Organizational Behavior 100% (5) Organization Behavior Netflix Case Organizational Behavior 100% (4) Organisation Behaviour A1 Organizational Behavior 100% (3) Expectancy theory Organizational Behavior 100% (3) Netflix, 84% of workers believe their pay is fair, 88% are happy with their perks, and 78% are satisfied with their stock or ownership Netflix is a happy place to work because 87% of Netflix employees say their workplace is favorable Goal-setting Theory According to a thesis, setting clear, challenging goals and receiving feedback increases performance The difficult goals when accepted, result in higher performance than easy goals, and that feedback leads to higher performance than does non feedback In this case, the goal-setting theory of providing customers with what they want even before they are aware of what they want It is encouraged by the customer's sense of significance in the services they are receiving and by their own self-determination to keep using those services The customer's quality of life will be impacted by our capacity to this For the employees, they need to be able to offer engaging content to their subscribers In fact, the goals set by Netflix are specific enough that they focus on improving customer satisfaction Netflix has identified its target customer groups as well as their needs and the Netflix team would also figure out what customers find most enjoyable through the scientific process They would develop hypotheses using existing quantitative data, qualitative information, and survey results, and then A/B test these hypotheses to determine which ones are most effective With A-level, employees will get more responsibility and high compensation Netflix is also inspirational in that it instills in people a desire for growth and progress Managers are advised not to retain team members with whom they are not entirely satisfied with using a general criterion known as the "Keeper test." Moreover, at Netflix, positive/constructive feedback is a part of everyday - not just an annual event Through teaching and exemplifying the behaviors we want to see throughout the firm, this teaches individuals how to offer and receive criticism Netflix also opts for a 360 degree review process Employees are advised by their colleagues on what they should stop doing, start doing, or continue doing under this new structure Cultural excellence of Netflix increases member satisfaction This is how they build an extraordinarily successful company in the world The MBO process is used by managers at Netflix to give staff members the context they need to make decisions that align with the company's objectives and strategy The hierarchy at Netflix is arranged like a tree: The roots are Hastings, the trunk is senior leadership, the branches are descending levels of management, and the uppermost branches are employees (making decisions as captains) This is perfect framework for the MBO process Two - factor Theory A hypothesis that links intrinsic (advancement, recognition, responsibility, achievement) and extrinsic aspects (supervision, pay, company policies, work condition) to job satisfaction and unhappiness, respectively In service encounters, there are numerous hygiene-related motivators and influences that take the form of client expectations - Motivators : free trial, give feedbacks, discount… - Hygiene factors : some movies/TV shows/series are restricted to some countries On the other hand, Netflix employs motivation through work design, promoting autonomy, feedback (JCM), and the desire to gain - Motivators: + Stock Option Program: Each year, employees decide how much of their pay they want to be made up of salary and stock options + Personal Top Market: pay employees at the top of their personal market + Providing 360 degree review process - Hygiene factors: + Netflix’s policy for travel/entertainment/presents and other charges is words long: “act in Netflix’s best interest.” They not have a travel policy + When it comes to work schedule, rush hour can be stressful for the employee Question 3: When it comes to complex work - like Netflix engineers analyzing data on customer viewing habits - will intrinsic or extrinsic motivators prove more effective? Why? Definition and Overview Intrinsic motivation is defined as doing something for your own spiritual satisfaction rather than external interests You it because the task is interesting, useful or practical, in place of visible rewards or the avoidance of punishment Intrinsic motivation is evident in young children, who are constantly trying to grasp, throw, bite, crush or scream at new objects they encounter Even if less important as they get older, adults still have intrinsic motivation when they're doing crossword puzzles, painting, gardening, or just reading novels or watching movies By engaging in activities that give you inherent satisfaction, you are contributing to a sense of well-being, which is an important part of the psychological needs of humans In this way, intrinsic motivation is very important to a person's overall sense of motivation Extrinsic motivation, on the other hand, encourages our will to complete tasks and perform a behavior in order to get a reward or avoid punishment When you are externally motivated, your behavior is motivated by an external factor that motivates you to something in the hope of earning a reward or avoiding a less positive outcome An example of extrinsic motivation would be getting paid to a job You may enjoy spending your days doing things other than work, but you're motivated to go to work because you need a paycheck to pay the bills In this example, you are externally motivated by your ability to cover daily expenses In return, you work a certain number of hours a week for pay The principals of intrinsic and extrinsic motivation In the case description, we know that Hastling created the Netflix Prize – million dollar reward for person or team that can revolutionize a company's “predictions” engine This is a good example of using extrinsic motivation as a reward provided in the form of financial benefits And to evaluate Hastings' work, we need to consider the principles of internal and external dynamics A study has been carried out in MIT for a few years, they took a whole group of students and gave them a set of challenges such as memorizing strings of digits, solving world puzzles and even physical tasks like throwing a ball through a hoop To incentivise their performance, they gave them levels of reward and the winner won a lot of money Finally, they found out that as long as the task involved only mechanical skill, bonuses worked as expected: “ The higher the pay, the better the performance” But once the task called for even rudimentary cognitive skill, the larger reward led to poorer performance The case study gives us an overview of how motivation works For jobs that require a lot of labor, extrinsic motivation promotes employee performance effectively However, when it comes to more complex tasks, often with more than one right answer, creative and requires more self-skills, extrinsic motivation produces the opposite effect This shows that external motivation makes us more passive It prevents us from getting out of our “comfort zone” and creating creative ideas to upgrade our skills It forms a habit and makes us stagnate, working like machines, unable to get out of our shadows or think outside of the box For complex jobs like data analytics engineer for Netflix, it is better for intrinsically motivated programmers Because when you want to it, you will spend a lot of effort and ideas with the aim of getting recognition and trust from customers, making them satisfied to enhance your value and ability When we put our mind into the work, the results will be well worth it Therefore, work efficiency will make us stand out 10 from the competition and attract as many potential customers as we deserve We can identify the answer as an intrinsic motivation thanks to the aforementioned detailed examination and examples Status quo and solution Why did Hastings invent extrinsic incentive in the first place if it is not the solution to the problem? Didn't he realize that he was the CEO? Yes, Hastings has skill, and yes, the award might not be the best idea However, this is typical in all industries Managers typically offered a reward or a threat of punishment to obtain specified outcomes This dates back to the industrialization era, when all factory workers received the same treatment Because the labor tasks back then are simple and repetitious, it produces a superior output Given the volume and complexity of the work we face today, our previous methods of management are no longer appropriate Compliance can be generated through extrinsic motivation, but intrinsic motivation that makes employees actively engaged in the company Workers nowadays need to feel as though their work is making a difference and advancing society They desire a sense of autonomy and self-control Additionally, they strive to excel at their jobs Given the requirements, a business may provide a greater performance level without using up additional incentives or vacation days 11 III Conclusion ● Critical point: We have come to a conclusion after looking at how Netflix is set up - In place of several highly regarded television programs, Netflix has established a solid brand reputation and become a household name The business has recently experienced exponential expansion - The original TV episodes and movies on Netflix provide plenty of options for aspiring filmmakers The platform's presentation style of its original material is appealing to the public - Netflix is fond of saying it hires only “fully formed adults,” and the company treats them as such bestowing on them great amounts of freedom so they can take risks and innovate without being bogged down by process.“Freedom and Responsibility” is a phrase that is emphasized throughout Netflix's corporate culture suite Netflix considers its employees "adults" They provide employees with a high degree of autonomy in their work, and also require a high sense of responsibility Specifically, Netflix employees are not limited to the number of days off and they get unlimited vacation They can expense without getting approval from their managers, as long as they’re acting in Netflix’s best interest and are not constrained by cumbersome payment processes for travel and travel expenses Netflix also emphasizes that it values people over process In addition to its innovative organizational structure, Netflix maintains high standards and, by continuously looking to the future, has positioned itself for long-term success ● Suggestions: - Netflix's solid reputation and the current market's high demand for OTT platforms may make it possible for the brand to grow - Since Netflix is signing up for exclusive Netflix-only content, they can bring in other product lines, including video games, comic books, and more - Globally, Netflix is already well-known By forming a strategic alliance with 12 nearby businesses, they can increase the number of subscribers they have and so better compete in the neighborhood - The company has the opportunity to create original concepts that outperform current OTT platforms Netflix now has the ability to provide top-notch customer support after already rejecting the traditional advertising-based economic model 13 REFERENCES Netflix Happiness Score https://www.comparably.com/companies/netflix/happiness Work Life Philosophy https://jobs.netflix.com/work-life-philosophy? fbclid=IwAR20m4y3HBhSOPodjzHRXVI1wq0sj4YN_fqAwMWyzsKAAiT_ YhIfu3byBvU Netflix Culture — Seeking Excellence https://jobs.netflix.com/culture?fbclid=IwAR3WMBWxii0q_YK69a4k3Q66DMOh6cwTZmHKbnYaerWr-rCT-25cCh52tU Organizational Behavior Slide uploaded on LMS 14