The Role of HRM in MNES Today: How Netflix Reinvented HR Harvard Case Solution & Analysis


The paper basically discusses the role of Human Resource Management in multinational firms which have evolved with efficient and effective human resource practices. The company that shall be discussed in the paper shall be Netflix Inc. The paper basically looks to discuss how the company has actually revamped and restructured itself in the market by taking certain initiatives for its human resource functions. The paper looks to study the invention of talent acquisition at Netflix Inc. where the company actually launched a completely new structure for its human resource functions (Patty, 2014).

Along with this, the company Netflix Inc. has looked to follow a talent management philosophy. As the provided information suggest, the company has been developed a strategy were they wanted “A” players in the team. The philosophy was to separate those employees that are no longer a necessary part of the team and also overcome the discomfort while offering rich severance packages to them. The five tenets that have been adopted by Netflix Inc. are as follows:


Hire, Reward, and Tolerate Only Fully Formed Adults

            Over here, the company Netflix introduced yearly offs for the employees. Each employee has been provided with 10 days vacations, 10 days holidays and a few sick leaves. This motivates the employees to perform and deliver good results because employees are allowed to take offs as and when they need it.

            Moreover, the company has also looked to let the employees made decisions themselves. For instance when an employee is on an official trip he is asked to purchase the ticket himself which allows the employee to save certain amount of money. All these small things actually contributed in an effective invention of HR strategy.

Tell the Truth about Performance

            Another major initiative which Netflix Inc. has taken into account has been the element of being honest with the employees regarding their performance. In the early part, Netflix did not actually look upon reviewing employee performance, but more recently they have introduced this policy where the performance of each employee has been highlighted as per his statistics.

Managers Own the Job of Creating Great Teams

            Over here, the management or the human resource of Netflix Inc. has actually encouraged the employees to follow the idea of developing their respective teams accordingly. For instance, the managers are asked to make the decisions themselves and help their respective goals be achieved with the support and assistance of the team. This has been one common element of success at Netflix where the decisions are taken by the respective team lead.

The employees of the company are paid the similar pay as per the industry norms and standards. This has also been a support system for the employees because eventually monetary gains shall be the most basic attribute that encourages employees to deliver respective results and the desired ones also (Patty, 2014).

 Leaders Own the Job of Creating the Company Culture

            The company Netflix has even introduced the idea of making the employees take the decisions for them. Along with this, the organization has actually looked to encourage employees to help and decide their routine at work and the way they shall carry forward the decision making principles. Therefore, this again has been an encouraging element for the employees and the management at Netflix Inc (Patty, 2014).

Good Talent Managers Think Like Business people and Innovators First, and Like HR People Last

            Finally, the most important aspect explored by Netflix Inc. is that no employee can actually be motivated if the HR throws parties for the employees and offer them t-shirts. The only thing that really motivates employees is the salary and the stock prices. If the company is earning reasonable profits than the employees shall be motivated and shall deliver the best which shall be in favor of the firm also. To retain the most talented bunch, human resource needs to be reactive and aligned with the overall theme of the employees and help to communicate on behalf of them (Patty, 2014).

The Role of HRM in MNES Today How Netflix Reinvented HR


            In the current situation, the company has been quite successful and has actually transformed itself into a bench mark organization. Netflix Inc. is viewed by many employees as a firm that values its human resource.  However, moving into the future, the company needs to focus on exploring new human resource initiatives also. For instance, as for now, the organizations believe compensation cannot be the motivation for extra ordinary performance. The management believes, if the employee is talented, well equipped and hard working he shall deliver more than the expectation (Conaty, 2011)...........

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