Starbucks: Providing the perfect corporate culture

By: Morgan Bittengle

Introduction 

Being an avid coffee drinker, and more specifically a Starbucks fan I felt it was only fitting to do the original case study we were assigned on Starbucks and their corporate culture. This case study will provide details on how the company works and how they treat their employees and customers, which in the end, leads to the success and popularity of the company itself.

Starbucks is one of the most popular, well-liked companies in the world. They give people their early morning boost of energy and also their afternoon pick-me-ups. They  were founded in 1971 in Seattle, Washington, and incorporated on November 4, 1985 to become the publicly traded Starbucks Corporation. It is ranked among Forbes’ top-500 world’s biggest public companies. As of 2015, Starbucks’ profit was $2.5 billion and it had a market value of $70.9 billion. Their mission statement shows just how they are not only about coffee, but also about the soul of the human and how they can and will be the best person they can be. “To inspire and nurture the human spirit- one person, one cup and one neighborhood at a time” (Starbucks.com). The way in which employees of Starbucks treat each other and act in the cafes are a very good representations of how Starbucks as a whole want their customers to be treated. The environment Starbucks provides customers with will also carry on to the companies goals for the future. The next thing that I will discuss in this case study will be carrying on into theories that are implemented within the company culture.

Photo credit: News.Starbucks.com

Theories

Communication Accommodation Theory is one that fits well with Starbucks and their culture. The employees consistently try to tend to the needs of the customers, which means they change the way they speak or act to benefit them. An example of this is when one particular Starbucks location tended to the needs of deaf or hearing impaired customers. Starbucks hired people who could read sign language to communicate with the customers enabling them to order for themselves, leaving them feeling humbled and proud they could do this in a society that doesn’t fluently use sign language. That is just one of the many examples of how Starbucks accommodates to their customers through communication, which can be verbal or nonverbal.

Another way communication accommodation theory is used throughout the Starbucks culture is through language in general. Since there are Starbucks locations all over the world, the company realizes that and tends to the communication barrier. For example, hiring employees in high tourist areas that may speak multiple languages or even may just be good at interpreting what is being said is something they strive for.

Acquired Needs theory, though, people are motivated to work to acquire status that is deemed important by society. Starbucks employees main goals are to satisfy the needs/wants of the customers. In the workplace, they strive to expand on the companies brand development and globally.

Theory of linguistic relativity “assumes that the structure of language we use influences the way we perceive the environment” (Organizational Communication). This is also known as the Sapir-Whorf hypothesis. In regards to Starbucks and their corporate culture, this is very relative because the way in which employees speak to each other and customers determines how someones experience at the cafe will go. It shows a lot about the company itself when employees speak mindfully, honestly and positively.

The main goal of Starbucks is to make sure that the needs of the consumer are met. In order to do this though, language is very important and key to their success. It starts within the company, too. When managers and others who are high up are discussing what needs to be done, things are relayed in a manner where it is comfortable and easy to see that the manager or whoever it is wants the employee to feel safe and comforted in their workplace.

Since language is such a prominent aspect in a successful company, the theory of linguistic relativity is relayed into Starbucks company as a whole very often. Whether it’s listening to what customers enjoy and what they don’t, or if it’s getting out in the public and asking for suggestions on how to provide a more beneficial coffee drinking environment, they get out there and do these things.

Critical Analysis

Starbucks is a company that is so well known by not just one area of people. It is a company that gets business all over the world. One key aspect to the culture of Starbucks that they take pride in is that they are very diverse. “Our partners are diverse not only in gender, race, ethnicity, sexual orientation, disability, religion and age, but also in cultural backgrounds, life experiences, thoughts and ideas”. Taylor Yukawa, a deaf financial analyst, at Starbucks in Seattle, Washington shares what his experience with Starbucks has been like and how they do not judge or discriminate because of his disability. Taylor is a great representation and example of how Starbucks is a diverse company that focuses more on the outcome rather than being picky on who does the work that gets to the outcome.

As mentioned earlier, there are Starbucks all over the world. In fact, there are 24, 395 retail locations. Starbucks “main markets” are the Americas (including Canada, Latin America, and the US), China and Asia Pacific, and Middle East and Africa. In the United States specifically, California is the state with the most Starbucks stores, with 1,863 locations. Having so many stores all around the world can most likely get pretty hectic at times, so I think it shows a lot about the company itself and how they are able to control and bring in customers consistently on a daily basis.

Starbucks has many values, as does any successful company, but the four main values that they have are:

1.Creating a culture of warmth and belonging, where everyone is welcome.

2. Acting with courage, challenging the status quo and finding new ways to grow our company and each other.

3.Being present, connecting with transparency, dignity and respect.

4.Delivering our very best in all we do, holding ourselves accountable for results.

These values provide an insight to the outside world of the Starbucks company as to what they truly believe in and why they do the things they do. They do not focus solely on the customer but they place high importance on the employees as well. This speaks volumes for a company of the size of Starbucks.

In a recent article comparing the difference in corporate cultures between Starbucks and Amazon, I was amazed at what I read. Amazon places high importance on the customer, which is great, but neglects the need and wants of the employees making it a hostile and unenjoyable workplace. Starbucks, on the other hand, placed the two (customers and employees satisfaction) on the same level. Amazon explains what customers need to do for the company for it to be successful and their mission statement where Starbucks leaves it short, sweet and to the point. This goes to show that less is truly more. What needs to be done for the highest rate of satisfaction doesn’t mean neglecting your employees.

Ethical standards are high in the company because they feel so strongly about employee and customer satisfaction. Being able to honestly say that the company you work for cares about others and wants the highest satisfaction rate, not just the highest income is very admirable.

“We are performance driven , through the lens of humanity”. This is a quote from the Starbucks mission statement page and I think it sums up their company perfectly. Basically, what it is saying is that the company works for and does what needs to be done to satisfy the needs of others in the world. Starbucks looks at the outside world and sees what they need to do and listens to the wants of those around.

Another example as to how Starbucks looks out for their employees just as much as their customers, is all the benefits there are for working for the company. Starbucks offers full tuition reimbursement through the college achievement plan. They also offer health care benefits for part-time and full-time employees, including same sex and domestic partner benefits.

Conclusion

All in all, Starbucks is a wonderful company to work for or even just give your business to. They show admirable qualities in what needs to be done for the satisfaction of not just the customers but also their employees, which then keeps them around longer. It also encourages them to WANT to do more for their company on their own. Things such as finding out what can be done better, what customers like best, how they view messages most, etc.

As previously mentioned, Amazon and Starbucks were compared in their corporate culture and it was a night and day difference. Amazons CEO, Jeff Bezos, could learn a lot about employee success and how to keep them going and active in the company from Starbucks’ CEO Howard Schultz. Doing little things such as positive talk, encouragement, reiteration on how important individuals are to the company goes a long way, and that is just one of the many reasons why Starbucks is so successful in that department. It is also where Amazon is very unsuccessful, so it shows a large difference in the two companies.

So, whether you’re looking for a new place of employment or just for a nice cup-o-joe, Starbucks is your place to go. You will not be let down or disappointed.

References

Bariso, J. (2015). Starbucks vs. Amazon: A tale of two cultures. Retrieved October 3o, 2016, from http://www.inc.com/justin-bariso/starbucks-vs-amazon-a-tale-of-two-cultures.html

Ferguson, E. (2015). Starbucks coffee company’s organizational culture – Panmore Institute. Retrieved October 30, 2016, from http://panmore.com/starbucks-coffee-company-organizational-culture

Linguistic Society of America. (n.d.). Retrieved October 30, 2016, from http://www.linguisticsociety.org/resource/language-and-thought

Mission Statement. (n.d.). Retrieved October 30, 2016, from http://www.starbucks.com/about-us/company-information/mission-statement

The culture case study of Starbucks – Shaun Frankson is a social entrepreneur. (2015). Retrieved October 30, 2016, from http://shaunfrankson.com/starbucks/

Our culture of inclusion. (n.d.). Retrieved October 30, 2016, from http://www.starbucks.com/responsibility/community/diversity-and-inclusion/culture

Avtgis, T., Rancer, A.,& Liberman, C. (2012). Organizational communication strategies for success. Dubuque: Kendall Hunt.

Starbucks – The Best Coffee and Espresso Drinks. (n.d.). Retrieved October 30, 2016, from http://www.starbucks.com/

October 31, 2016November 7, 2016 by morgbittengle

Behind the Scenes: Unilever

By: Chaise Perez

Introduction

“Unilever has a simple but clear purpose – to make sustainable living commonplace. We believe this is the best long-term way for our business to grow.” (unilever.com) Unilever owns over 400 brands, but focuses on 13 main brands. Unilever’s brands are used in daily activities. Unilever works hard with consumers and employees to make sure that consumers do have the essentials they need in their everyday lives. Their brands go from Hellmann’s condiments to Dove’s products to Klondike‘s ice cream and other fun treats. In this case study, I am going to talk about the general systems theory and how Unilever applies to this theory. Unilever follows the general systems theory in many different ways. To start I will be talking about the theory itself, then I will move onto talking about what the Unilever Sustainable Plan is and what it stands for, and furthermore I will talk about what parts of the theory I believe it follows the most.

Photo credit: Wall Street Daily, quora.com

General Systems Theory

The general systems theory, takes certain properties or characteristics of our everyday world and ways of life and apply them to organizations or companies. According to panarchy.org, is “existing models, principles, and laws that apply to generalized systems or their subclasses, irrespective of their particular kind, the nature of their component elements, and the relation or ‘forces’ between them.” The theory has many factors that make up the theory. This includes things such as inputs, outputs, throughputs, permeable boundaries, homeostasis, and equifinality. Inputs and throughputs are things that go into the system, while outputs are things that go out of the system and into the public. Permeable boundaries are where the inner system and the outside environment meet to exchange certain factors or elements. Homeostasis is the complete balancing of the system at hand. Equifinality is coming up with different ideas to achieve one common goal. The system itself also has systems that fall under the theory.

The general systems theory itself is just one giant overview that shows the systems perspective. There is a subsystem and a suprasystem. A subsystem is a subsection or smaller section that falls under a larger section. For example, at Ashland University has over 90 possible majors for students to study. These majors all belong to colleges based off the subject of the major. Each major would be a subsystem. The colleges that the majors belong to would be known as the suprasystem of the education system. In addition to these systems, there is also the open and closed systems.

Organizations have permeable boundaries which is very important to see that the customers’ needs are met. The open system is organizations consistently working with the consumers to continually improve their products and the quality of their products to fit with the surrounding environment. Feedback is very important to the organizations that do have open systems. Feedback is the data or information that a company receives from consumers that is negative or positive about their products or service. From receiving feedback, companies can either improve their systems and productivity or they can leave things the same because they see nothing wrong with what they are doing. This could lead to some problems within the organization. If they choose to do so, this means they are a closed system. Closed systems are just the opposite of open systems. When organizations do not work with customers that are immediate to them, they become entropic. Entropy is when a system verges upon dying out. Although there are organizations that are closed systems, majority are open systems which leads the companies to becoming a cybernetic system.

A cybernetic system is when companies self-regulate based on the feedback they have received from their customers. This leads to system maintenance or system adaptation. System maintenance is keeping current routines and work strategies. System adaptation is changing or adapting to the environment and the changes that are occurring while using feedback in order to do so. If a company is doing poorly, then they are more likely to system adaptation while a company that is striving, will use system maintenance. Organizations use system adaptation more to keep up with the constant changes in the world and to always better themselves.

Critical Analysis

Unilever is a company that is solely focused on not only its customers, but helping the changing world that we live in. According to their website biography, they have a quote directly from their CEO, Paul Polam. ‘“We cannot close our eyes to the challenges that the world faces. Business must make an explicit and positive contribution to addressing them. I’m convinced we can create a more equitable and sustainable world for all of us by doing so,” says Unilever CEO Paul Polman. “But this means that business has to change. The Unilever Sustainable Plan is a blueprint for sustainable growth.”’ Unilever owns over 400 brands but focuses only 13 brands due to the impact those brands have made on this world. To give a better understand of what they do, here is a description of what the Sustainable Plan is.

The Unilever Sustainable Plan is their layout for reaching their goals to vision to grow their business, while helping their environmental print from their growth. The positive social impact increases in the process of doing so. The Plan gives them certain targets, finding how consumers use their brands and showcasing what materials (that are all natural and raw) the companies that are under Unilever use. They are constantly trying to find new ways to work with other businesses, work with the government and the society as a whole. One of their focuses is on global warming what effects it has on the human race so they are in consistent search of ways for everyone to work with the environment to have safe and easy living being as natural as possible. Their main purpose to make a sustainable living place, that’s why it’s called the Unilever Sustainable Plan. Their ethical standards and work policies is what this case study will be showcasing.

The logo is a blue capital “U”. If you look closely enough at it, you can see there are 25 icons that make the shape of the U. Each icon means something. They each are representing the different companies that make up Unilever. For example, there is a lock of hair for all the shampoo brands, a hand, a palm tree, a heart, and many more. There are many different links and sections to their website that breaks down each purpose, value, principle, and more that the organization holds its companies too. You can read on their website that, “Our Corporate Purpose states that to succeed requires “the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact.”’

Their main values and purpose are always working with integrity, positive impact and continuous improvement, setting out our aspirations and working with others. They have many principles that they live by as well. These all include, standard of conduct, obeying the law, employees, consumers, shareholders, business partners, community involvement public activities, the environment, innovation, competition, business integrity, conflicts of interest, and finally compliance, monitoring and reporting. They have five main priorities that they live by. These include, a better future for children, a healthier future, a more confident future, a future for farmers and farming, and lastly a better future for the planet.

Their first priority, a better future for children, falls under their companies, Signal and Close-Up who partnered with FDI World Dental Federation to promote better oral hygiene. Omo and Persil, just two of their laundry brands, work with parents to tell their children that dirt is good which they can get stains of their clothes with their brands. Lastly, Unilever partnered with World Food Programme to start, Together for Child Vitality to help out with the lack of nutrition in poorer countries. For a healthier future, their Flora/Becel margarine brands have figured out a way to help reduce high cholesterol levels. Vaseline has started the Vaseline Skin Care Foundation to help with research going into skin diseases. And Lifebuoy soap has promoted a healthy life style by teaching good handwashing skills to prevent sickness.

To have a more confident future, Dove started a campaign called, Dove’s Campaign for Real Beauty, which insists on not using models but “real” women while advertising. This inspired them to start the Dove Self Esteem Fund. Just from their advertisements, they have already made differences in women and young girls’ lives. Their Sunsilk hair care brand and some of the world’s top hair stylist to create better and more efficient hair products. Close-Up toothpaste has helped many improve their dental care. To create a better future for farming and farmers, the companies Lipton tea and Ben & Jerry’s use all natural products in their foods to provide a more sustainable product.

Lastly, to create a better future for our planet, their website reads, “We’re aiming to grow our business while reducing our environmental footprint and working across the supply chain for every brand to do so. Our Laundry brands, including Surf, Omo, Persil and Comfort, have launched the Cleaner Planet Plan together, encouraging consumers to change their laundry habits to reduce water and energy consumption. Our Lipton tea brand backs sustainable forest management projects in Africa.” You can see that they hold their companies to very high standards to have such quality products. They have very high expectations of the way they would like their products made and what goes in them. They are constantly trying to be sustainable and efficient in all of their work and in their products that they are selling to their trusting customers.

Unilever embodies the general systems theory in a few ways. One, they fit the definition perfectly. Their main focus is on the living systems properties that apply to their organization. They make sure they help meet the wants and mainly the needs of the human population. Two, they do have an open system, along with showing the concepts of homeostasis and equifinality. All of their principles and values are very universal for others. Unilever itself is a suprasystem while all the companies that are under or that were bought are subsystems. For example, Axe and Ben & Jerry’s are both subsystems of the large suprasystem which is Unilever. The company does very well in embodying this theory. There is always room for improvement. For example, they could spend more time on their less-known or popular brands to switch the awareness of them around. Easily by more advertising and more non-profit work to get the idea of the companies out there. They are continually building up the image of not only themselves, but of others too. This is very important to their ethics and morals that the organization expects out of all of its companies.

Conclusion

 I believe that many many other organizations could easily learn from Unilever. Unilever is a very organized company and is a great influence. I believe they have made a difference on not only their customers, but people in general. They uphold such high values and morals that it is truly inspiring. They have five main priorities that they live by and they are all to benefit the people living in this world. They are concerned about their well-being, their confidence, their futures, farmers and farming, along with the planet. To me, these are things all organizations live by. Unilever does own over 400 brands, but they specialist each one to take care of all us in order to have a safer and easier life. Unilever believes in making a difference in this world, and for this I hold the upmost respect for the organization, along with everyone that works for them. For a little more inspiration, I leave you with this quote from their biography on Unilever’s website, “And by leveraging our global reach and inspiring people to take small, everyday actions, we believe we can help make a big difference to the world.”

References

1. @. (n.d.). Purpose, values & principles. Retrieved October 27, 2016, from https://www.unilever.com/about/who-we-are/purpose-and-principles/
2. @. (n.d.). Unilever global company website | Unilever Global. Retrieved October 27, 2016, from https://www.unilever.com/
3. By having their products centered around improving the world – instead of just the company’s bottom line – employees at Unilever care more and accomplish more. (n.d.). Why Unilever Unites Its Portfolio of 400 Brands Around One Core Value. Retrieved October 27, 2016, from https://business.linkedin.com/talent-solutions/blog/talent-connect/2015/why-unilever-unites-its-portfolio-of-400-brands-around-one-core-value
4. Ludwig von Bertalanffy. (n.d.). Retrieved October 27, 2016, from http://panarchy.org/vonbertalanffy/systems.1968.html
5. Walonick, D. S. (n.d.). General Systems Theory. Retrieved October 27, 2016, from http://www.statpac.org/walonick/systems-theory.htm
6. In search of the good business. (2014). Retrieved October 27, 2016, from http://www.economist.com/news/business/21611103-second-time-its-120-year-history-unilever-trying-redefine-what-it-means-be
7. Collective Action, Impressive Progress in 2015 | Sustainable Living | Unilever brightFuture USA. (n.d.). Retrieved October 27, 2016, from https://brightfuture.unilever.us/stories/482680/Collective-Action–Impressive-Progress-in-2015-.aspx
8. Avtgis, T. A., & Rancer, A. S. (2012). Organizational communication: Strategies for success. Dubuque, IA: Kendall Hunt Pub.

 

October 31, 2016October 31, 2016 by cperez2ashlandedu

Nothing Short of the Best: Netflix’s Unique Organizational Culture

by Susanna Savage
While every organization has its own unique culture, some stick out more than others. Netflix’s culture is one that is very different from the norm. As the organization has grown from a small DVD rental company, to the booming business that it is today, its management style and interesting culture can lend lessons to other organizations (McCord). This case study explores the culture and management style of Netflix with a critical eye to the impact of this environment on the employees.

Photo Credit: https://www.linkedin.com/pulse/culture-new-strategy-netflixs-remarkable-view-marc-do-amaral

Netflix’s Culture

Netflix’s unique culture is based on seven basic principles. The first of these is “values are what we value” (Netflix, slide 5).  Netflix seeks to employ only those who embody all nine of their organizational values. These include communication, innovation, courage and passion, among others. Second, is “high performance” (Netflix, slide 23). Netflix wants its employees to be the best in their field. The philosophy behind this is that one incredible employee accomplishes a larger amount and puts out higher quality work then several average employees (Nisen). And when it comes to deciding who stays at Netflix and who is let go, managers make decisions by asking themselves this question; “Which of my people, if they told me they were leaving in two months for a similar job at a peer company, would I fight hard to keep at Netflix” (Netflix, slide 30).

Another aspect of Netflix culture is “freedom and responsibility” (Netflix, slide 38). Netflix believes that if it works hard to ensure that its employees are the best, it can foster a creative and mature environment that shows respect for those employees by giving them as much freedom as possible and charging them to use that freedom responsibly. As evidence of this, Netflix does not have a vacation policy. This is because it trusts that employees will take as much or as little vacation as they need while ensuring that the work that they are responsible for is accomplished. This no-policy-policy is made possible by Netflix’s focus on results rather than effort. The hours that someone puts in or the amount of effort that they invest are not as important as what they produce (Nisen).

“Context and control” refers to Netflix’ belief that directly controlling employees creates a negative culture (Netflix, slide 76). Because Netflix only employs the best, it can treat all employees like adults who do not need to be controlled. However, Netflix does not completely abandon management. Instead management is more about leading than controlling. In order to lead and guide employees in the right direction, Netflix believes that management should set contexts that maximize employees’ ability to do well. To exemplify the principle of context setting, Netflix quotes Antoine De Saint-Exuperty, “If you want to build a ship, don’t drum up the people to gather wood, divide work, and giver orders. Instead, teach them to yearn for the vast and endless sea” (Netflix, slide 77). This quote clearly shows the difference between control and context. Rather than telling employees what to do, Netflix managers set a context which will empower the employees to achieve the goal on their own.

Netflix strives to maintain a model of management that is “highly aligned, loosely coupled” (Netflix, slide 86). Being highly aligned virtually means that managers, individual employees and team members have a unified sense of their goals. At the same time, being loosely coupled means that individuals are trusted to pursue goals with what they feel to be appropriate tactics, without having to get approval from management. Netflix’s goal when compensating employees is “pay top of market” (Netflix, slide 93). This means that for any given job, Netflix plays the employee that holds that position above the highest pay for that position anywhere in the current job market. Additionally, Netflix makes use of “promotions and development” (Netflix, slide 109) to reward excellent employees.

Critical Analysis

While I have never experienced an organizational culture anything like that of Netflix’s, I believe that I would thrive in such an atmosphere. Most of the organizations in which I have worked have been much closer to a traditional organizational culture and traditional management styles. Their was little competition, and job security was fairly high. Their was also very little drive to achieve or to put in more then the average amount of effort. I have definitely not experienced an organization that focused on results above effort.

The Netflix culture is incredibly appealing to me for several reasons. When I took the StrengthsFinder 2.0 analysis , I found that one of my top strengths is “Achiever.” This means that I gain personal satisfaction from producing high quality work and going above and beyond to be “the best,” at any given area or task. The Netflix culture rewards people who are achievers and also creates an environment that enables them to achieve to their full potential and to be the best that they can be. I also think that the self management aspect of Netflix’s culture would facilitate my creativity and work productivity. I am able to work best when I am in complete control of how I spend my time and how I approach tasks. When I am managed in the traditional sense, I can feel stifled and unproductive. Netflix’s culture of trusting its employees to manage their own time, and focusing mainly on results, creates an environment in which I would thrive.

Another great aspect of Netflix is that accomplishments and not effort are valued and compensated. This model makes sense. Students are not awarded grades based on the amount of time they spend studying, but on their ability to preform on various measures of their learning. In much the same way, it seems that results are all that should matter to an employer. Any given task takes some people a longer time and others a shorter time to accomplish. For some the task might require more effort and be more challenging, while for others it is easy. The Netflix focus on results rather then effort seems to be the most fair, both to the employee, and the organization.

References

McCord, P. (2014, January). How Netflix reinvented HR. Harvard Business Review. Retrieved from https://hbr.org/2014/01/how-netflix-reinvented-hr

Netflix. (2009, August 1). Netflix Culture – SlideShare. Retrieved from http://www.slideshare.net/reed2001/culture-2009?next_slideshow=1

Nisen, M. (2013, December 30). Legendary ex-HR director from Netflix shares 6 important lessons. Business Insider. Retrieved from http://www.businessinsider.com/netflix-corporate-culture-hr-policy-2013-12

October 7, 2016March 9, 2017 by Ssavage

Fully Formed Adults and Netflix

By: Sabrina Mills

The purpose of this case study is to take a look at Netflix’s unique management style. Netflix believes in a fully formed adult. They also believe in treating their employees like adults. Trust is an important part of their organization. They are not held to multiple rules and codes and reviews. This case study takes a look at this style of management and what each factor can bring to the table.

The seven aspects of Netflix’s culture are what it such a unique working environment. “Values are What we value” has been defined as actual company values that are behaviors and skills that are valued in fellow employees. High performance is when you are working with people who you respect and that you can learn from. With this come Honest Always (Hastings, 2009), As a leader, no one in the group should be surprised of your views. Always be open with your team and have open communication. Freedom and responsibility within Netflix is a model to increase employee freedom as they grow rather than lower it. An example of this is vacation days. Employees are allowed to decide how long they need off as they see fit. There are times where some people are advised not to go at certain times during the month or quarter, but it’s still controlled by the employee (Harvard,2014). Context, not control says that the best managers figure out how to get great outcomes by setting the appropriate context, rather than by trying to control their people (Hastings, 2009).

http://www.pcmag.com

 

Highly Aligned, loose coupled means that the strategies and goals of the organization are clear. Highly aligned is when team actions are based on strategies and goals, rather than tactics (Hastings, 2009).  Loosely coupled is minimal meetings to keep on track. It’s also trusting your team members without checking so that you can keep moving along. Pay top of market goes by the value of “one outstanding employee gets more done and costs less than 2 adequate employees. This plays into Netflix’s statement of “We only hire fully formed adults.” (Harvard,2014). They believe that you should know what other firms would pay you. Paying top of the market means that Netflix pays your value, whether they are doing well or not. Usually performance goes up when doing this (Hastings, 2009) Promotions and development says that sometimes, in some groups, there is chance and room for growth. A condition for promotion is that the employee has to be a superstar at their current position. But also is a role model of their culture and values (Hastings, 2009). Development is defined as “we develop people by giving them opportunity to develop themselves”. They do this by surrounding people with exceptional colleagues and giving them big challenges to work on. Netflix supports and believes in Self-improvement. And by surrounding the employees with exceptional colleagues, they can help promote this value.

Netflix culture fosters a successful organization by focusing more on the employee than a lot of companies, and how someone gets things done rather than the amount of it. By focusing on improvement within the organization as well as the supporting the self-improvement of their employees, they foster an empowering environment. An organization cares about their employees as much as they care about the work they are doing are going to get better results from their employees. With this, they will also have higher employee satisfaction. They also give their employees more freedom than most companies. By treating their employees like adults, instead of a number, they foster a better working relationship within the organization. With more trust, comes more responsibility. With this being said, the feeling of more trust can push people to do better work.

My experiences as part of an organization haven’t been as trust reliant as Netflix’s values. When I worked at Family Video, I was held to a set of rules, but it wasn’t as strict as a lot of companies. For example, our shoes. We were required to dress nicely, but it didn’t have to be business attire. This included out shoes. They had to be good for standing and walking for a long period of time. But there were secret exceptions. As long as we were standing behind the desk or not on the floor with customers, we could bring flip flops or something more comfortable to change into. Another exception of this is when the store was not busy. Every once in a while, one of us would walk across the parking lot to get pizza while the other held down the fort, so to speak. So there were certain rules to follow, but it was a bit more of a relaxed system.

I feel that I would be a more effective worker at Netflix. I believe that trust is an important part of any relationship. Personally, I know that when someone is counting on me, I feel more pressured to get things done. This is because I’m not a fan of letting people, including myself, down. Self-improvement is also such a huge part of anyone’s life, and if you can focus on that while also being part of something bigger, your progress excels. Improving yourself, while improving with others around you, is also a boost of self-esteem.

Citations

@. (2014). How Netflix Reinvented HR. Retrieved October 07, 2016, from https://hbr.org/2014/01/how-netflix-reinvented-hr

Reed Hastings, Working   Keynote Author Follow. (2009). We Support Self-Improvement • High. Retrieved October 07, 2016, from http://www.slideshare.net/reed2001/culture-1798664/120-We_Support_SelfImprovement_High_performance

 

 

October 7, 2016 by sabrinamills

Netflix: Redefining HR

Netflix is among one of the most popular websites in the world. People of all ages go to the site to watch TV shows, movies, documentaries, etc. Statista provided some details on just how well Netflix really is doing and they weren’t surprising. There are over 70 million Netflix subscribers in the world, with 26 million being outside of the United States. With the convenience of laptops and now smartphones, Netflix viewers can watch their favorite show with just a click of a button.

With the success of Netflix, employees hold themselves to standards in which they can strive in. The culture is something unlike most companies. They specifically have seven aspects to their culture, which are: value, high performance, freedom & responsibility, context not control, highly aligned loosely coupled, pay top of market, and promotions & development (Hastings, 2009).

 

The seven aspects of culture that they hold themselves to all hold each other accountable day in and day out of what they expect from each other. The first one mentioned, value, is very important because it truly shows what the employees and company stand for. To be so successful Netflix knows how they have to treat their employees but also how they need to be their best for others. The trust between each other is very high throughout the company. An example that really stood out to me was that those who work for Netflix (with a few exceptions) are able to pick their vacation time, including how long they want to be off for. They are trusted to be responsible enough to choose wisely and not take advantage of the system. They even encouraged senior leaders to take vacations and let people know about them. They said they were the role models to others throughout the company. Another example is that the employees who travel do not have an expense policy. They did away with travel agencies and instead let the employees take care of their own accommodations. Leaders told their employees that the new policy was to “Act in Netflix’s best interest” (Hastings, 2009). If the behaviors and responsibilities are clear cut, then their won’t be any questions as to what is expected of employees.

In comparison to organizations I have been apart of, Netflix compares a lot to my university soccer team. Most organizations I have been apart of don’t have that much responsibility and leeway as Netflix does. They didn’t have much trust in the other members involved and it wasn’t very organized. My soccer team has a different way of viewing things, which is much like Netflix’s culture. We put a lot of trust in each other to know what is right and what is wrong. On and off the field. On the field, there are so many things that can go wrong but we put faith into our teammates to know that they will do whats right. Off the field, the responsibilities are endless but we know that each and every one of us can handle it. I truly love being apart of something that is so important and special. Knowing people are trussing in you and counting on you to succeed can get nerve raking but succeeding and showing them your abilities is very rewarding as a whole.

I, personally, feel I would be a more effective worker in Netflix’s culture. This is because I already have experience in that style of culture. I also have experience in the opposite style culture and I know that is not what I want out of an organization. Many people may not agree with how Netflix runs its company, and that’s perfectly fine because it is a different approach than what most people are probably used to. Knowing people are counting on me and putting their trust in me to do what I know to be right can be hard and stressful at points, but in the end it is very rewarding when there is success throughout the entire organization and I know that I was able to provide some type of input to that specific success.

Not all people would be fit to work in the culture that Netflix provides. Much like the company Google, there are people who love working for them and those who feel that they run the company completely wrong. It shows Netflix’s true colors the way they handled having to let go some of their best employees due to change in technology. What stood out most to me though, was how those employees who got laid off reacted. They understood and were respectful towards Netflix, showing they respected them and their decision, even though it didn’t benefit that specific employee. Overall, I came to the conclusion that I would enjoy working for a company like Netflix. They give a lot of leeway but only because they trust their employees to be respectful and responsible of the company.

References:

Hastings, R. (2009, August 1). Culture. Retrieved October 5, 2016, from http://www.slideshare.net/reed2001/culture-1798664/8-At_Netflix_we_particularly_value

McCord, P. (2016, January 27). How Netflix Reinvented HR. Retrieved October 05, 2016, from https://hbr.org/2014/01/how-netflix-reinvented-hr

Irvine, V. (2016). Topic: Netflix. Retrieved October 06, 2016, from https://www.statista.com/topics/842/netflix/

October 7, 2016October 10, 2016 by morgbittengle