Netflix: The Firing Machine?

Netflix: The Firing Machine?

  • Case
  • Teaching Notes
Abstract

The case discusses continuously evolving human resource management (HRM) practices at Netflix Inc. (Netflix). Reed Hastings, CEO of Netflix, implemented certain unique HRM practices such as not hiring fresh graduates from college or having any formal leave policy. He paid employees above the market rate salary but when performance and skills went below standard, fired employees. In 2018, he introduced a transparent pay policy and, in 2019, introduced weekly employee surveys. As Netflix internationalized to Asian countries such as Japan, Hastings continued with the same HRM policy of hiring and firing. It was to be seen if such policies would work in international markets and if employees would be motivated by the transparent pay policy of Netflix. Should Hastings continue these human resource practices as Netflix expands into global markets? Should he accord more importance to Netflix’s corporate culture or to the national culture of a country where Netflix operates? What advantages can standardization of HR practices provide to Hastings?

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