Our article, "How Netflix Reinvented HR" by Patty McCord describes how Netflix has taken classical theories of organizational behavior and reinvented itself to work in a modern society. Patty McCord, the former chief talent officer of Netflix, learnt through years of experience that their company's approach to talent and culture worked for two reasons; success and common sense. Patty describes five key ideas that defined the way the company attracted, retained and managed its talent efforts.The first key idea was to "hire, reward and tolerate only fully formed adults" (McCord, 2014). One of Netflix's mantras was, "hire only 'A' players to work alongside them. Excellent colleagues tr ...view middle of the document...
She also mentioned that by having these conversations on a regular basis, you could get good feedback and great results from employees.Netflix's approach to teams is unique; managers are told to start with the ending outcome, and then determine if their resources are enough to achieve the desired outcome. Since the internal and external environments are always changing, Netflix realized how hard it was to build these unique teams using the right people with the right skills. Because of this crazy environment, one-of-a-kind compensation and pay techniques were put in place to attract employees from other major companies like Amazon and Google. These techniques lead to the third key point, "be honest, and treat people like adults" (McCord, 2014). Managers were exposed to the idea that "great teams accomplish great work, and recruiting the right team was the top priority;" (McCord, 2014) therefore, they were evaluated on how well the team worked.Netflix has discovered that both a fun-loving culture and an efficient company can work, but creating this culture also created three issues that required attention. These included: "mismatch in company culture and value for the company [which lead to ill-prepared leaders that do not model or reward behaviors that align with their ideas about value and culture], making sure employees understand the levers that drive the business [meaning that new and existing employees know certain behaviors will contribute to company success], and the split-personality start-up [which meant that not everyone in the company is the same and managers must be aware of subcultures that may require different types of attention]" (McCord, 2014).The final issue stressed within Netflix is the idea that managers should think of themselves as business people rather than HR people. This ensures that innovation never ceases and that Netflix does not simply "mimic other companies pursuits" (McCord, 2014).The implementation of these key points has propelled Netflix beyond competition in areas of organizational behavior and HR.MGT 20...
