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utor to why Netflix continues to outperform competition and achieve substantially-high ratings from consumers who appear satisfied with its customer service practices. Based on careful analysis of the firm, its high pay structures and autonomous working environments are missing metrics to determine whether these policies are the genuine catalyst for organisational success and performance. Some research findings have discovered that pay systems are not always effective for achieving long-run job performance and that there are risks to providing too much autonomy.
Based on all research and investigation into theory of organisational behaviour and even human psychology, as well as business theory, it is recommended to implement a 360 degree feedback appraisal system at Netflix and engage in the management-by-objectives ideology. These practices will give the firm a new ability to accurately measure true job performance and determine whether there is substantial return on investment for having such liberal HR policies. In order to maintain its reputation as a world class provider of superior customer service, Netflix seeks to hire only the most talented and motivated employees.
HR-related perks include generous pay packages, seemingly unlimited vacation opportunities, a reduction of work rules and policies and considerable job role autonomy in order to attract and retain these high performers. This would, theoretically, provide considerable socio-psychological benefits that make employees more committed and motivated to achieve organisational goals. However, there is a potential plethora of problems with providing employees with perks such as the aforementioned to achieve job role performance.
First, the case study did not indicate that Netflix has established a metrics system that would measure performance appropriately; a method of ensuring return on investment for these HR activities. Whilst Netflix believes that this will create a culture of commitment for the
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