HRM REPORT

HRM POLICIES OF NETFLIX

Submitted To: Prof. Sauvik Kumar Batabyal

Submitted By:

1. Ashi Savant [23PGDM074]

2. Shirangi Kapoor [23PGDM108]
3. Shreya Aggarwal [23PGDM110]
4. Sanidhya Verma [23PGDM106]
5. Saarah Sayed [23PGDM105]
6. Yashasvi Jain [23PGDM117]

HUMAN RESOURCE MANAGEMENT: THE

INFALLIBLE NETFLIX FORMULA
Netflix is a media company for movie lovers. Netflix has successfully transformed into one of
the Video on Demand (VoD) providers with the most operational areas worldwide. They made a
significant transformation to get the best team in their organization. There is no hesitation. The
company will only hire players (grade) "A" to get the best practices. Regardless of how much an
employee contributed to the prior organization, the employer will discharge them if their abilities
are no longer required. Letting go of people whose talents are no longer necessary for the firm's
evolution (as Netflix's technology advancements demonstrate) is a win-win situation for both the
company and the employees. In addition to companies experiencing losses. It is not just the
company that suffers, and employees will also experience a phase of frustration when forced to
try to achieve performance beyond their reach.

For example, companies face challenges transitioning from DVD delivery content via cyberspace
to VoD. Companies need to find people who are very experienced with cloud services that will
enable them to operate on a massive scale. Netflix's best practice is to strive to put together a
great team of employees dedicated to the company's benefit. Netflix enables customers to watch
their favorite episodes from virtually any location, at any time, and on practically any device
(smartphones, smart TVs, tablets, PCs, and laptops).

One of Netflix's added values is that it is content free of advertisements, so viewers do not have
to wait for television series broadcasting schedules and can decide for themselves the content
they want to enjoy. Along with improving the user experience, Netflix continuously attempts to
strengthen its reputation as a quality corporation wanted by individuals, particularly those in their
twenties and thirties. As a result, they are now well known for their culture.

Reed Hastings, prior to founding Netflix, served as the CEO of Pure Software, based in New
York. His tenure at Pure Software was marked by setbacks, which he attributed to hiring
mismatches. This experience deeply influenced his hiring approach at Netflix, where cultural fit
took precedence over technical prowess. Hastings believed it crucial for individuals to resonate
with Netflix's values rather than trying to fit them into the company's culture. This philosophy
prompted him to publicly unveil a 127-slide deck delineating Netflix's cultural norms, fostering
transparency for all stakeholders. This focus on cultural alignment engendered trust and a sense
of belonging among Netflix employees, fostering a mutual commitment to excellence.
Managerially, Netflix operates under a unitary organizational structure, grouping members and
units into functional departments, each reporting directly to the CEO. Furthermore, Netflix
embraces a flat organizational structure, promoting employee autonomy and accountability. This
hybrid approach, as corroborated by studies like Kobiruzzaman's, allows Netflix to prioritize its
guiding principle of "people over process" while fostering a conducive and productive work
environment.
TALENT MANAGEMENT STRATEGY: NO
COMPROMISE
Many organizations tend to overlook the strategic importance of talent management, particularly
prevalent in industries like media where new hires are relatively low. However, Netflix stands
out by vehemently opposing this notion. In 2001, despite laying off a significant portion of its
workforce due to financial difficulties, the remaining employees rallied together to underscore
the caliber of their high-performing colleagues. This highlights Netflix's commitment to
recruiting only the best performers, leveraging the complexity of the economic landscape to their
advantage.

So, what sets exceptional workers apart? Contrary to common practice where candidates are
primarily evaluated based on their resumes, educational backgrounds, and possibly references,
exceptional talent is subjective. Traditional recruitment methods often fail to recognize talents
beyond academic credentials. Few employers actively align these talents with job requirements.
It's understood that a superb employee thriving as Player A in one organization might excel as
Player B elsewhere, and vice versa. Hiring the right talent yields multiplicative benefits,
especially when the team is motivated to develop their skills and tackle challenges
collaboratively.

At Netflix, the Talent Team spearheads the identification, attraction, and development of
exceptional colleagues. Comprising Recruiting, Employee Services, and HR Business Partners,
this team aims to foster a remarkable experience for Netflix team members, deeply ingrained in
the company's cultural values of freedom and responsibility. The recruiting arm of Netflix bears
the significant responsibility of sourcing and hiring outstanding individuals to drive Netflix's
success. They champion Netflix's culture, collaborate closely with business units, and prioritize
creating an inclusive and diverse workforce reflective of the global community.

RECRUITMENT STRATEGY OF NETFLIX

Netflix's recruitment strategies delve deeply into fostering cultural alignment, empowering hiring
managers, and attracting top performers:

Cultivating Cultural Fit:

Netflix employs the "keeper test," emphasizing the importance of cultural cohesion over mere
qualifications during interviews.

Their interview process hones in on assessing candidates' alignment with Netflix's core values,
such as autonomy, effective communication, and continuous learning.

Behavioural questions are utilized to gauge candidates' past behaviours in line with the
company's cultural values, assessing their ability to take initiative and surmount challenges.

Empowering Hiring Managers:

Recruiters collaborate closely with hiring managers to grasp their specific requirements and
pinpoint potential candidates.

Hiring managers play a pivotal role in the interview process, spearheading candidate evaluations
and final hiring decisions.

Netflix prioritizes a swift and streamlined hiring process by empowering managers, eliminating
bureaucratic hurdles, and enabling prompt decision-making.

Attracting High Performers:

Netflix sets a high bar for talent acquisition, seeking individuals with extensive experience, a
track record of success, and robust problem-solving abilities.

While experience is valued, Netflix also looks for candidates with significant potential for
growth and rapid adaptation.

Competitive compensation packages are offered to entice top talent, yet the emphasis lies on the
opportunity to contribute meaningfully within a dynamic, high-performance environment, rather
than solely on short-term incentives.

Additional Considerations:

Netflix maintains transparency throughout the recruitment journey, providing candidates with
comprehensive insights into role expectations and company culture.

Diversity of thought and experience is highly prized at Netflix, with deliberate efforts made to
recruit from diverse backgrounds, fostering a culture of creativity and innovation.

Through these strategic initiatives, Netflix endeavors to assemble a team of high-performing

individuals who not only fit seamlessly into the company culture but also propel it forward,
maintaining its leading position in the streaming industry.
 PERFORMANCE APPRAISAL AT NETFLIX

A performance appraisal is a structured evaluation process designed to assess an employee's

overall performance and contributions to the organization, with the goal of improving work
performance or behavior. This process, also referred to as performance review, evaluation, or
employee appraisal, offers an opportunity to provide feedback and formally evaluate job
performance. Additionally, it serves as a mechanism for organizations to allocate raises and
incentivize their employees.

A performance appraisal typically takes place once or twice a year, usually at the beginning of
the year and midway through. In these sessions, the employee's direct manager or supervisor
assesses their performance against key responsibilities and goals. Currently, Netflix faces a
significant challenge as its traditional performance management system does not align with its
culture. This outdated approach relies on yearly reviews, focusing solely on individual
performance. Unfortunately, it fails to provide employees with the constructive feedback needed
for their development and neglects to foster collaboration and teamwork among them.

360-degree feedback rather than performance reviews

Netflix overhauled its performance management system by eliminating traditional annual
performance evaluations altogether. In its place, the company adopted a 360-degree review
process. Under this new system, employees receive feedback from their colleagues on areas they
should stop, start, or continue doing. These reviews occur frequently and in an informal manner.
Initially, the reviews were anonymous to prevent any discomfort or awkwardness. This shift
reflects Netflix's commitment to fostering continuous improvement and open communication
among its employees.

Netflix has transitioned to a practice of providing signed feedback and, most recently,
conducting face-to-face 360-degree reviews. This shift towards full transparency underscores
Netflix's belief in the importance of honesty in communication. While this approach has proven
effective for Netflix's employees, it may not be universally applicable to all organizations or job
roles.

Netflix fosters a culture of radical transparency, encouraging feedback to flow in all directions
within the organization. Employees are empowered to both give and receive feedback openly and
honestly. The adoption of open, non-anonymous 360-degree feedback has sparked valuable
discussions. However, Netflix's leadership, led by Reed and colleagues, recognized the necessity
for such feedback to adhere to specific principles:

Clarity, Actionability, and Good faith.

In response, Netflix developed the 4A Principles of Feedback, requiring all employees, including
managers, to adhere to these guidelines when giving and receiving feedback.
 The Key to Netflix's performance review success

Netflix's innovative approach to performance management has yielded remarkable outcomes

across various dimensions. Firstly, the company boasts high levels of employee engagement,
with its workforce feeling deeply appreciated, involved, and empowered. This sense of value and
ownership motivates employees to give their best.

Secondly, Netflix's culture of autonomy and experimentation has sparked a wave of innovation
within the organization. Employees are encouraged to explore new ideas, leading to creative
solutions, enhanced problem-solving capabilities, and the development of groundbreaking
products. Additionally, Netflix's performance-driven culture ensures agility and adaptability in
the face of dynamic market conditions, enabling swift responses to emerging trends and
competitive pressures.

Finally, the company's commitment to ongoing learning and development provides employees
with tailored opportunities for professional growth, fostering a culture of continuous
improvement. This holistic approach to performance management not only drives employee
engagement but also fuels innovation, agility, and continuous learning within Netflix.
 A DEEP DIVE INTO NETFLIX'S L&D
INITIATIVES: EMPOWERING A CULTURE OF
GROWTH

Netflix's innovative approach to Human Resource management is extraordinary, and a core pillar
of this success is its unique and effective Learning and Development (L&D) strategy. This
comprehensive overview dives into the various L&D initiatives that empower Netflix's
exceptional workforce.

Freedom, Responsibility, and Continuous Growth: The Core Philosophy

Freedom and Responsibility: Central to Netflix's approach is its "freedom and responsibility"
culture. This philosophy grants employees autonomy in shaping their learning paths. Instead of
imposing rigid training programs, Netflix encourages individuals to pursue development
opportunities aligned with their interests and career aspirations. Employees take ownership of
their learning journeys, leading to a more engaged and motivated workforce.

Continuous Growth: Learning is a lifelong pursuit at Netflix. They cultivate a culture of

continuous improvement where employees are expected to stay updated with industry trends and
actively develop new skills. This ensures a workforce that remains agile and adaptable in a
dynamic landscape.

Transparency and Feedback: Open communication is paramount. Their 360-degree feedback

system allows employees to receive valuable insights from peers and superiors. This continuous
feedback loop helps identify areas for development and allows targeted learning opportunities to
be implemented.

L&D Initiatives: A Buffet of Learning Experiences

Netflix University: This internal powerhouse offers a treasure trove of courses on diverse topics.
From technical skills like coding and product management to soft skills like leadership and
communication, Netflix University caters to a wide range of learning needs. Content comes in
various formats – videos, podcasts, articles – ensuring accessibility for different learning styles.

Mentorship Programs: Netflix understands the value of mentorship. They pair experienced
employees with new hires or those seeking career guidance. Mentors provide support, career
advice, and help mentees navigate the unique company culture. This personalized approach
fosters strong relationships and accelerates learning.

Hackathons: These innovation events are hotbeds of creativity and problem-solving.

Employees across departments collaborate to brainstorm and develop solutions to real-world
business challenges. Hackathons not only generate innovative ideas but also encourage
employees to learn from each other and develop new skillsets through collaboration.
Guest Speaker Series: Netflix regularly invites industry leaders and experts to share their
knowledge with the team. Exposure to diverse perspectives broadens employee knowledge and
fosters a culture of continuous learning. These sessions can spark new ideas, inspire innovation,
and provide valuable insights into industry trends.

Beyond the Initiatives: Fostering a Growth Mindset

While the L&D initiatives are impressive, the true magic lies in how Netflix fosters a growth
mindset. They value effort and learning over perfection. This encourages employees to step
outside their comfort zones, embrace challenges, and learn from mistakes. This supportive
environment allows employees to thrive and continuously develop their skills.

Continuous Coaching: Managers play a crucial role in supporting employee growth. Through
ongoing coaching and guidance, they help employees identify development goals, navigate
learning resources, and track progress. This continuous support system ensures employees feel
empowered and equipped to achieve their full potential.

Cross-Functional Collaboration: Knowledge sharing is a cornerstone of Netflix's approach.

They actively encourage collaboration across teams and functions. This not only fosters a more
cohesive work environment but also allows employees to learn from each other's diverse skillsets
and experiences.

Investing in the Future: Leader Development and Innovation

Leadership Development Programs: Netflix invests heavily in developing future leaders. Their
programs equip aspiring leaders with the skills and competencies needed to drive organizational
success. Through a blend of classroom training, mentorship, and practical experience,
participants develop key leadership qualities essential for navigating complex business
challenges.

Innovation Days: Netflix's commitment to learning is further exemplified through initiatives like
"Innovation Days." These dedicated days grant employees time to explore passion projects
outside their usual scope of work. These projects serve as invaluable learning experiences,
allowing individuals to experiment with new ideas and technologies in a risk-free environment.
This fosters a culture of innovation and allows for the discovery of new ideas that can benefit the
company.

The Netflix Effect: A Culture of Learning Leaders

The impact of these L&D initiatives is undeniable. Employees at Netflix are empowered to
become self-directed learners, taking ownership of their professional development. This fosters
a culture of continuous learning where everyone is encouraged to contribute their growing
knowledge and expertise. The result? A highly skilled, adaptable, and innovative workforce that
propels Netflix forward.
Netflix's L&D approach serves as a model for modern organizations. By prioritizing employee
autonomy, fostering a growth mindset, offering a diverse range of learning opportunities, and
providing continuous coaching and support, Netflix empowers its workforce to reach its full
potential. This commitment to L&D not only benefits the company but also attracts and retains
top talent, securing its position as a leader in the competitive entertainment industry. Netflix's
L&D strategy demonstrates that investing in employee growth is not just an expense, but a
strategic advantage that fuels innovation, drives results, and positions the company for long-term
success.

UNVEILING THE NETFLIX SELECTION

PROCESS: A PEEK BEHIND THE CURTAIN
While details of Netflix's HR approach are not readily available on their official website, the company has
shed light on some unique practices through interviews and publications. Let's delve into the
unconventional world of Netflix's selection process:

Freedom and Responsibility: A Core Value

Empowered Hiring Managers: Netflix fosters a "freedom and responsibility" culture, granting managers
the autonomy to choose candidates who resonate with their teams. This ensures compatibility in work
styles and ideas, fostering a cohesive and collaborative work environment.
Culture Fit Above All Else: Finding the right cultural fit is paramount. Netflix prioritizes matching
candidates with the company's core values, beliefs, and work styles. A strong alignment between
potential hires and the existing team ensures a smooth integration and fosters a sense of belonging.

Seeking High Performers with a Growth Mindset

Proven Track Record of Excellence: Netflix seeks candidates with a demonstrably successful history in
their respective fields. They value individuals who consistently deliver exceptional results, showcasing
their ability to thrive in a demanding and fast-paced environment.

Innovation and Adaptability: The ideal Netflix candidate isn't just a high performer; they're also
innovative. The ability to generate creative ideas and adapt to changing circumstances is crucial for
success in their dynamic work environment.

Unconventional Yet Effective: Key Selection Practices

A World Without Formal Policies: One of Netflix's defining characteristics is its lack of formal HR
policies. They prioritize open communication, trust, and personal responsibility to guide employee
conduct and choices. This fosters a culture of ownership and empowers individuals to make informed
decisions.

Constant Evaluation: A Continuous Feedback Loop Feedback is king at Netflix. Managers and
employees engage in regular discussions to assess performance, potential, and overall impact on company
goals. This ongoing evaluation ensures informed hiring decisions based on a comprehensive
understanding of the candidate.

Data Drives Decisions: While intuition plays a role, Netflix doesn't shy away from data and analytics in
their hiring process. This data-driven approach helps uncover trends and potential weaknesses, allowing
them to continuously refine and improve their recruitment strategies.

Employee Referrals: A Valuable Source Netflix leverages the power of their existing workforce.
Employees are encouraged to recommend qualified candidates who embody the company's values and
culture. Referrals from trusted sources offer a valuable pool of potential talent.

Building a Team that Reflects the Netflix Spirit

While specifics remain undisclosed, we can glean key insights into the selection process at Netflix:

Culture Fit Assessment: Compatibility with the company's culture is a core focus. Interview processes
and evaluations aim to identify candidates who resonate with Netflix's values, particularly the emphasis
on freedom and responsibility.

A Quest for Excellence: Netflix seeks individuals with a proven track record of high performance and
expertise. They value innovative thinkers, adaptable problem-solvers, and those who excel in a fast-
paced environment.

Building a Fair and Equitable Process: To ensure fairness, Netflix may implement policies that
prioritize merit, qualifications, and potential over biases or stereotypes. Training on unconscious bias for
hiring managers and interviewers helps eliminate potential hiring disparities.
Transparency and Feedback Throughout: Open and honest communication is a cornerstone of Netflix's
culture. HR policies likely promote transparency and constructive feedback throughout the hiring
process. Candidates can expect prompt updates on their applications.

Data Informs Decisions, Intuition Guides: Data and analytics play a crucial role in informing hiring
decisions, but Netflix doesn't disregard the value of human judgment. HR policies likely highlight the
importance of data-driven insights for identifying patterns and areas for improvement in the recruitment
process.

Lifelong Learning is Encouraged: Continuous learning is a core value at Netflix. They hire candidates
who embrace lifelong learning and provide opportunities for skills enhancement, career growth, and
personal development within the company.

Employee Referrals: A Win-Win Strategy: Similar to many tech companies, Netflix utilizes an employee
referral program. HR policies may incentivize current employees to recommend qualified candidates
who align with the company's culture and values, making this a primary recruitment method.

Simplicity and Flexibility: While formal policies are absent, Netflix emphasizes adaptability and trust,
fostering a culture where employees and managers feel empowered to contribute ideas and make
decisions aligned with the company's shared values and goals.

By adopting this unique selection approach, Netflix has built a team of high-performing individuals who
thrive in their unconventional work environment. This focus on cultural fit, excellence, and continuous
learning positions them for continued success in the ever-evolving entertainment industry.

EMPOWERING GROWTH: A LOOK AT

NETFLIX'S PROMOTION POLICIES
Netflix's success relies heavily on its talented workforce. Their promotion policies reflect this by
prioritizing the recognition and development of their employees. Here's a breakdown of key aspects:

Recognizing Value Beyond Job Descriptions:

Promotions at Netflix go beyond simply fulfilling assigned tasks. They emphasize recognizing
employees' contributions to the company's success. This includes dedication, innovation, and the
ability to embody the company's core values. By promoting individuals who go the extra mile and
exemplify the Netflix culture, the company fosters a more engaged and high-performing workforce.

Transparency: A Roadmap for Advancement

Clear and transparent promotion criteria are essential at Netflix. Employees deserve to understand
what's expected for advancement, ensuring fairness and consistency throughout the process. This
clarity allows them to set clear career goals and focus their efforts on achieving those goals.
Knowing the specific criteria empowers employees to take ownership of their professional
development, positioning them strategically for promotions.

Inclusive Decision-Making: A Broader Perspective

Movements within the company shouldn't solely depend on individual performance; Netflix
understands that. Promotion decisions consider the broader impact of an employee's contributions.
Including diverse perspectives in the decision-making process ensures inclusivity and fairness. This
can help mitigate unconscious bias and create a culture that values diversity and fosters equality of
opportunity.

Investing in the Future: Supporting Growth

At Netflix, promotions are seen as opportunities for both the company and the employee. When
someone earns a promotion, they receive the support needed to excel in their new role. This can
include training programs, mentorship opportunities, and exposure to new challenges that contribute
to their continued growth. By investing in the development of their promoted employees, Netflix
fosters loyalty and encourages them to reach their full potential.

Feedback as Fuel: A Growth-Oriented Approach

Feedback is a cornerstone of the promotion process at Netflix. Regular performance reviews and
constructive feedback provide employees with actionable insights for improvement. This allows
them to identify areas for growth and make necessary adjustments in their working style. Integrating
feedback into the promotion process ensures that advancements are based on merit and align with
employees' long-term career aspirations.

By prioritizing these aspects, Netflix creates a promotion system that recognizes and rewards
valuable employees while also supporting their continuous growth. This approach fosters a culture of
ownership, and innovation, and ultimately contributes to the company's continued success.

CULTIVATING GROWTH:
RECOMMENDATIONS FOR REFINING
NETFLIX'S PROMOTION POLICIES
Building on Netflix's strong foundation, here are some recommendations to further refine their
promotion policies:

Nurturing the Netflix Spirit

Culture-Aligned Promotions: Ensure promotion policies seamlessly integrate with Netflix's

unique culture of freedom and responsibility. Promotions should value employees who
exemplify the company's values and contribute to its success through innovative approaches.
This reinforces the desired behaviors and strengthens the company culture.

Personalized Pathways to Growth

Tailored Development Plans: Implement personalized career development plans that cater to
individual aspirations and talents. Empower employees to be the architects of their own growth
by offering resources and opportunities for skill enhancement and advancement aligned with
their unique goals. This fosters a sense of ownership and motivates employees to take charge of
their careers.

Mentorship and Coaching: Investing in People

Mentorship and Coaching Programs: Cultivate a robust mentorship and coaching culture to
support employees in their pursuit of promotion. Partnering employees with mentors who
embody Netflix's values can provide invaluable guidance, feedback, and encouragement
throughout their journey. This creates a supportive network that fosters learning and
development.

Identifying Future Leaders

Recognizing Potential: Recognize and reward employees based not just on current performance,
but also on their potential for future leadership and impact. Identify high-potential individuals
who can drive innovation, adapt to change, and make significant contributions to the company's
long-term growth. This proactive approach ensures a pipeline of talented leaders ready to take on
new challenges.

Transparency: Building Trust and Ownership

Clear Communication: Maintain transparency in the promotion process by clearly

communicating the criteria and expectations for advancement. Provide employees with visibility
into promotion pathways and opportunities for growth. This empowers them to take ownership
of their development journey and make informed decisions about their careers at Netflix.
 GLOBAL HRM AT NETFLIX: BALANCING
FREEDOM WITH LOCALIZATION
Netflix's global success hinges not just on its content library, but also on its unique approach to
Human Resource Management (HRM). This approach, often referred to as "Global HRM" or
"International HRM", seeks to balance a strong centralized culture with the need to adapt to
local contexts.

Centralized Core Philosophy:

People Over Process: Netflix prioritizes attracting and retaining top talent over rigid processes.
This core philosophy extends globally, with a focus on finding high-performing individuals who
fit the company culture.
Context, Not Control: Leaders establish the cultural framework, but employees are empowered
to make decisions within that framework. This emphasis on freedom and responsibility applies
across all locations.

Balancing with Local Needs:

Compliance: Netflix adheres to local labor laws and regulations in every country it operates in.
This might involve adjustments to compensation, benefits, and work policies.
Talent Acquisition: Recruitment strategies consider regional talent pools and cultural nuances.
Netflix might emphasize different skills or experiences depending on the location.
Content Acquisition and Development: Local teams curate content libraries and develop originals
that resonate with specific audiences. This requires cultural sensitivity and understanding of local
preferences.

Key Practices with a Global Twist:

Hiring: The rigorous recruitment process remains consistent, but the focus on cultural fit takes
on added importance in a global context. Netflix might leverage local talent acquisition
specialists to navigate regional nuances.
Compensation and Benefits: Competitive salaries are offered globally, but benefits packages may
differ to comply with local regulations and cater to regional needs.
Performance Management: Open and candid feedback is encouraged across locations. However,
specific communication styles and approaches might be adapted to local cultural norms.

Challenges and Considerations:

Maintaining Culture: Ensuring core values like "Freedom and Responsibility" translate
effectively across diverse cultures can be challenging.
Standardization vs. Localization: Finding the right balance between global consistency and local
adaptation is an ongoing struggle.
Global Leadership: Developing strong leaders who can navigate cultural complexities is crucial
for successful global HRM at Netflix.

BIBLIOGRAPHY
https://www.zavvy.io/hr-examples/employee-performance-reviews-at-netflix
https://www.linkedin.com/pulse/performance-management-netflix-james-bush-yfgwe/
https://www.performyard.com/articles/how-netflix-does-performance-management
https://www.coursesidekick.com/management/47097
https://www.databahn.com/pages/netflix-organizational-structure