USD Managing Talent: Netflix Treats Workers ‘Like Adults Review Review “Managing Talent: Netflix Treats Workers ‘Like Adults'” (The attachment below) Then,
USD Managing Talent: Netflix Treats Workers ‘Like Adults Review Review “Managing Talent: Netflix Treats Workers ‘Like Adults'” (The attachment below) Then, choose one of the two questions to respond to in this Discussion post. You’ll want to respond with a thorough answer to the question (400 – 500 words). Once you’ve done so, you will be able to see others’ posts. By Saturday night, you’ll need to respond to at least two others’ posts, with a substantive response to their position(s). Netflix Treats Workers Like Adults
When Patty McCord talks about human resource management
at Netflix, she refers to treating people like adults.
McCord, until recently the companys chief talent officer,
MANAGING TALENT
means the company hires people who are mature enough
to take responsibility and then simply gives them responsibility.
The result, McCord insists, is that employees live up
to what is expected of them. If not, the company feels free
CHAPTER 2 Trends in Human Resource Management 55
New Belgium Brews Success through Employee Ownership
HR IN SMALL BUSINESS
From the early days of Colorado-based New Belgium
Brewing Company, founders Kim Jordan and Jeff Lebesch
treated their workers as a valuable source of knowledge, not
just labor. They based the companys culture on employee
involvementseeking ideas and freely sharing information
about company performance.
Eventually they went a step further than most companies
by making owners of their employees. At first they
gave employees stock as part of an employee benefits
program; eventually, following Lebeschs departure from
New Belgium, Jordan expanded the employee stock ownership
plan (ESOP) to 100% employee ownership. Now all
employees are eligible for an ownership stake after they
to find someone else. That direct approach makes sense to
the knowledge workers who populate the results-oriented,
data-respecting world of information technology.
When McCord was at Netflix, she and CEO Reed Hastings
settled on five principles that would direct the companys
approach to human resource management:
1. Hire, reward, and keep only fully formed adults.
For McCord and Hastings, such employees use common
sense, address problems openly, and put company
interests ahead of their own. People like this need not
be managed with endless policies. Rather, the company
can trust them to take off time when they need it and
spend money appropriately. The employees also are literally
adults; Netflix favors hiring experienced workers
over recruiting at colleges.
2. Tell the truth about performance. Managers are
expected to make performance feedback part of their
routine conversations with employees. If an employee
is no longer working out, managers are supposed to let
him or her know directly, offering a good severance
package to smooth a dignified path to the exit.
3. Managers are responsible for creating great teams. The
manager of each group is expected to envision what
that group should accomplish and what skills are necessary.
If the manager needs different skills than the ones
already on the team, the manager is supposed to make
changes. To keep workers on the team, Netflix is open
about paying salaries in line with the labor market
what employees would be offered if they considered
leaving for a competitor.
4. The companys leaders must create the company culture.
Netflix executives are supposed to model behaviors
such as truth-telling and treating people like adults.
5. HR managers should think of themselves first as businesspeople.
As chief talent manager, McCord focused
on the companys financial success and products, not
on employee morale. She assumed that if employees, as
adults, were able to make Netflix a high-performance
organization and be compensated fairly, that would
improve morale more than anything.
To put these principles into action, Netflix rewards
high-performing employees with fair pay and a flexible
schedule. Employees who do not perform up to standards
are asked to leave. Rewarding high performance, in fact,
makes it easier to allow flexibility and empowerment,
because managers do not have to police every action and
decision. It also creates an environment in which employees
do not assume they have a Netflix job forever. Instead,
they are responsible for doing good work and developing
the skills that continue to make them valuable to their
employer. Netflixs approach to talent helps the company
stay agileperhaps agile enough to withstand the shifting
winds of entertainment in the digital age.
Questions
1. How well suited do you think Netflixs principles are
to managing the knowledge workers (mainly software
engineers) who work for Netflix? Explain.
2. What qualities of Netflix support the idea that it is a
high-performance work system? What other qualities would
contribute to it being a high-performance work system?
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