MG414 Organizational Behavior Assignment Sample

Introduction: Organizational Behaviour

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Leading entertainment corporation Netflix has a streaming service that is available to users globally and is based on a membership model. Understanding Netflix's success and expansion in the market requires evaluating the company's leadership and performance management practices. The unique organizational culture and leadership style of Netflix has long been recognized. The company's management has promoted an innovative, risk-taking, and lifelong learning environment (Laba, 2023). A performance management approach that puts an emphasis on employee growth and personal responsibility has been established by Netflix. The company's "Keeper Test" makes sure that only top performers are kept on staff while getting rid of underperformers.

Figure 1 Netflix Is Raising Its Prices

(Source: ELYSE DUPRE, 2017)

The goal of Netflix's performance management system is to encourage development and progress over time. A system of regular feedback and coaching has been put in place by the organization to assist employees in determining their strengths and shortcomings and working on their areas for improvement (Purwanto, 2022). The leadership team at Netflix is also essential in setting performance standards for workers and providing them with the tools and resources they need to advance. The success of Netflix has been greatly influenced by its practices in leadership and performance management. With the help of its performance management system and business culture of innovation and continuous learning, Netflix has been able to attract and retain top talent, keep them on board, and keep a competitive advantage in the entertainment market.

Business Profile of Netflix

Netflix is a global entertainment company that provides movie, television show, and documentary streaming services that require a subscription (Noori, 2022). The organization was established in 1997 by ReedHastings and Marc Randolph and has developed to become the most well-known and persuasive amusement supplier on the planet. Over 190 countries have access to Netflix’s services, and the company offers a wide range of original and licensed programming.

What they do (product and services)

In the United States, Netflix provides DVD rental services via mail in addition to its streaming services. The organization has also ventured into creating and conveying its unique substance, which has received basic approval and helped with separating the brand from its competitors.

Location

Netflix has offices and operations all over the world, in addition to its Los Gatos, California, headquarters. Globally, the company has more than 10,000 employees and a market capitalization of more than $200 billion.

Their market shares

Figure 2 Netflix Quarterly Revenue by Segment: Q1 2012 – Q4 2019

(Source: dazeinfo.com, 2019)

In 2022, Netflix saw an increase in revenue of 6.7% to $31.6 billion. In Q4 2022, it reported its first quarterly decline. This loss falls short of the company's previous projections. The business informed its shareholders that it anticipated adding 2.5 million net subscribers in the first quarter, up from 4 million in the previous quarter. 2.7 million Subscribers had been anticipated by analysts. Netflix's subscriber improper fell to 221.6 million as a result, down from 221.8 million in the previous quarter. Over 30 million of these households are located in the United States and Canada, and the company estimates that over 100 million more households are using its service.

Netflix mentioned a variety of additional factors that contributed to the loss. The streaming service announced that it lost 200,000 users in the first quarter of 2022, marking its first subscriber drop in more than ten years (Jones, 2023). Additionally, Netflix anticipates a 2 million paid subscriber loss globally for the second quarter, so its losses are likely to continue.

Key Netflix figures in 2022 Netflix had revenue of $31.6 billion, an increase of 6.7% year-over-year. North America, the company's largest market, accounted for $14 billion of Netflix's revenue. Netflix had a net income of $4.4 billion in 2022, down 12.2% from the previous year.

Leadership and Performance Management

Creativity and performance are two significant parts of any productive association. Performance management ensures that the organization's objectives are met through the effective use of resources, while effective leadership is essential for guiding employees toward achieving their goals. Daniel Goleman's six leadership styles are one of the most well-known leadership theories. According to Goleman's theory, effective leaders employ a combination of six different leadership styles depending on the circumstance. Coercive, authoritative, affiliative, democratic, pacesetting, and coaching are these styles.

Figure 4 The skills of successful change leadership

(Source: brain gorman, 2019)

Netflix is a great symbol of an association that utilizes Goleman's initiative styles to drive the execution of the board. Let's look at how each of the six styles applies to Netflix.

Goleman’s six leadership styles (Netflix)

THE GOLEMAN’S THEORYAPPLIES TO NETFLIX

1. Coercive Leadership: The top-down approach of the coercive leadership style is characterized by the leader giving commands that must be obeyed without question. When dealing with performers on the job who are not performing up to standard or in crisis circumstances, this technique works well. The coercive style is not frequently employed at Netflix (Rabiul, 2022). However, when it is employed, it is often to resolve urgent problems like safety issues or a violation of business policy

2. Authoritative Leadership: Setting clear goals for the organization and motivating staff to strive towards them are key components of the authoritative leadership style. This management approach works especially well in circumstances where the organization needs to innovate or adapt to change. The authoritative leadership style is utilized at Netflix to establish clear expectations for workers and to foster creativity inside the company. The leadership team's capacity to communicate the organization’s vision and direction is what drives the culture of innovation at the company.

3. Affiliative Leadership: The affiliative leadership style is characterized by developing a feeling of community inside the organization and forming relationships (Awan, 2023). When workers are under a lot of stress or want to help cope with personal concerns, this technique is very useful. The affiliative leadership style is employed at Netflix to create a strongorganizational culture. The leadership team of the organization focuses high priority on creating a feeling of community and motivating staff to help one another.

4. Democratic Leadership: Employee participation in decision-making processes is a component of the democratic leadership style, and employee opinion is valued. When the organization must make decisions that affect a variety of stakeholders, this technique is very successful. The democratic leadership approach is employed at Netflix to include staff members in the decision-making process. The executive management of the business encourages staff members to express their thoughts and opinions and work together to solve issues.

5. Pacesetting Leadership: Setting high expectations for workers and expecting them to meet those expectations are both aspects of the pacesetting leadership style. This method works especially well when the organization wants to achieve accomplish a particular goal. The pacesetting leadership style is employed by Netflix to promote performance throughout the company. The employer has high standards for its workers and anticipates swift progress toward those objectives.

6. Coaching Leadership: Giving advice and encouragement to staff members to help them develop their abilities and performance is a key component of the coaching leadership style. This method is especially useful when employees need to pick up new skills or are having problems fulfilling performance criteria. At Netflix, the coaching leadership style is used to assist employee skill development and performance improvement. The leadership team of the organisation frequently coaches and provides feedback to employees to help them reach their greatest potential.

A company that has effectively incorporated Goleman's leadership concepts is Netflix. An authoritative leadership style is supported by the organization's strong emphasis for creating an inventive and creative culture (Jia, 2023). The company's management inspire its workforce to achieve their goals by giving them a clear vision.The organization also values employee feedback, which is consistent with the democratic leadership approach. The coaching leadership style is reinforced by the fact that the company's executives appreciate the development of their employees.

It is important to remember that Netflix has come under fire for employing a coercive leadership style. The workplace at the corporation is referred to be "cut-throat" and is noted for its high-performance culture. Employee burnout and a lack of work-life balance may result from this.

To sum up, effective leadership and performance management are crucial for any organization to succeed. Goleman's six leadership philosophies offer a framework that managers may utilize to guide their teams. The leadership team at Netflix combines these approaches to improve performance across the firm. Understanding these approaches will enable leaders to foster an environment that values cooperation and creativity.

Figure 3Performance management

(Source: sixeleven, 2022)

Primary research findings and Discussion

How effective leadership can impact the organizational culture in a selected organization

Any organization’s performance depends critically on the impact that good leadership has on the organizational culture (Benitez, et.al, 2022). In this study, a prominent supplier of streaming entertainment, Netflix, was used as a case study to examine the effects of strong leadership on organizational culture.

A mixed-methods approach was used for the primary study, which included surveys and interviews with Netflix management and staff. 10 people, including 8 employees and 2managers, participated in the research over the course of three months.

One of the study's main conclusions is that a mixture of authoritarian, mentoring, and democratic leadership styles characterizes effective leadership at Netflix (Agbarakwe, 2023). This leadership style involves teams in decision-making processes, provides them with direction and support for their progress, and gives them a clear vision and sense of purpose. As a result, a culture of trust, openness, and responsibility has been established, which is essential for encouraging innovation and creativity.

The study's findings showed how strong leadership has a big impact on Netflix's organisational culture. The sections that follow explore the key conclusions:

• Leadership types - The study found that effective leadership at Netflix combines authoritarian, mentoring, and democratic leadership styles. The leaders at Netflix provide their staff members a clear sense of purpose and direction, include them in decision-making, and provide guidance and support for their growth on both a personal and professional level. Netflix has developed a culture of innovation, creativity, and high performance as a result of this leadership approach.
• Employee motivation and engagement - Employee engagement and motivation are significantly impacted by effective leadership. According to the survey, Netflix's leadership style is to thank its workforce's high levels of motivation and engagement. Employees at Netflix are inspired to strive towards the company's objectives by their leaders' sense of direction and purpose. Additionally, the coaching leadership style encourages people to grow in their knowledge and expertise, which improves their job happiness and engagement.
• Organisational values - The study discovered that a set of fundamental organizational principles at Netflix, such as innovation, creativity, and high performance, serve as the foundation for effective leadership (Adefope, 2023). These ideals are modeled and spread throughout Netflix by its leaders. Due to this, workers now feel a strong sense of identification and purpose, which has improved organizational culture.
• Communication and collaboration - A culture of open communication and collaboration has developed at Netflix as a result of effective leadership. At Netflix, managers encourage staff to voice their thoughts and opinions since doing so fosters cooperation and creativity (Silalahi, et.al, 2022). The democratic leadership style also encourages employee involvement in decision-making, which fosters a sense of dedication and ownership.
• Employee well-being- The study discovered that at Netflix, good leadership had a favourable influence on employee well-being. The well-being of their staff is a top priority for Netflix leaders, who do this by giving them a positive work environment and chances for advancement. Because of this, employees now have high rates of job satisfaction and a healthy work-life balance.

According to the study, effective leadership at Netflix positively impacted employee well-being (Krisnafitriana et al., 2023). Leaders at Netflix place a high focus on the welfare of their employees, and one way they achieve this is by providing them with a supportive workplace and opportunities for progress. Employees today enjoy high rates of job satisfaction and a good work-life balance as a result. Netflix's organisational culture is highly impacted by good leadership. The leadership style at Netflix, which mixes authoritarian, coaching, and democratic leadership techniques, has generated a culture of innovation, creativity, and high performance. Additionally, effective leadership has led to strong organisational values, transparent communication, collaborative work cultures, high levels of staff enthusiasm and engagement, and an improvement in employee wellbeing. These findings suggest that effective leadership is essential for fostering a positive organisational culture and advancing an organization's success.

Conclusion

The study comes to the conclusion that strong leadership and performance management are crucial to Netflix's success. The organization’sleadership style, which incorporates a blend of authoritative, coaching, and democratic based on leadership styles, has made a positive hierarchical culture that promotes development, innovation, and high performance. This has contributed to the success of the business by raising employee motivation, engagement, and job satisfaction. The organization’s performance management system, which is founded on a culture of continuous development, has assisted in making sure that workers are held responsible for their jobs and given chances to learn and grow. Because of this, staff are performing at a high level, which translates to high levels of customer satisfaction and strong financial success for the business. Netflix's leadership and performance management techniques are largely responsible for the company's success The business has distinguished itself as a leader in the entertainment sector because of its dedication to fostering a healthy organizational culture and supporting employee well-being. It also acts as a role model for other businesses aiming for similar levels of success.

Recommendations

The following suggestions may be made to further enhance the company's leadership and performance management methods based on the results of the main study on leadership and performance management at Netflix:

1. Foster a culture of diversity and inclusion – There is space for improvement, even though Netflix has made considerable steps in encouraging diversity and inclusion. The business should continue to place a high priority on diversity and inclusion in its recruiting and promotion procedures and make sure that every employee, regardless of origin or identity, feels appreciated and supported.
2. Increase opportunities for professional development –Although Netflix has an effective performance management system that promotes ongoing learning and development, the business may profit from providing more possibilities for professional growth. This could consist of learning opportunities, mentoring relationships, or leadership development programs that support employees' growth and advancement within the business.
3. Encourage employee feedback and engagement – Even while Netflix fosters open communication and teamwork, there is always space for growth. The business should keep promoting employee participation and feedback while giving staff members additional chances to share their thoughts.
4. Continuously evaluate and adapt leadership style – Although Netflix's current leadership approach has been successful, it's crucial to regularly assess and modify leadership approaches to make sure they are still serving the needs of the company and its staff. To foster a healthy organizational culture and enhance staff performance, the firm should constantly evaluate the efficacy of its leadership style and make any necessary improvements.
5. Prioritize employee well-being -Netflix should keep putting employee well-being first by encouraging work-life balance, providing benefits that support both physical and mental health, and creating a work climate that is nurturing and helpful to success. This will make it easier to maintain staff members' motivation, engagement, and dedication to the organization's success.

References

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• Agbarakwe, H.A. and Attih, J.A., 2023. Leadership, Time Management, Intrapersonal, And Interpersonal Skills For Organizational Goals And Performance In Workforce: A Case Study Of University Of Port Harcourt Interns.
• Awan, F.H., Dunnan, L., Jamil, K. and Gul, R.F., 2023. Stimulating environmental performance via green human resource management, green transformational leadership, and green innovation: a mediation-moderation model. Environmental Science and Pollution Research, 30(2), pp.2958-2976.
• Benitez, J., Arenas, A., Castillo, A. and Esteves, J., 2022. Impact of digital leadership capability on innovation performance: The role of platform digitization capability. Information & Management, 59(2), p.103590.
• Brain Gorman, 2019, the skills of successful change leadership, (online) <https://www.google.com/search?q=leadership+and+performance+management&rlz=1C1YTUH_enIN1013IN1013&sxsrf=APwXEdcc97XiJsO4TKoL788i5JSQgD99Jw:1683875593542&source=lnms&tbm=isch&sa=X&ved=2ahUKEwiB8eS0ne_-AhV9TmwGHReIDuUQ_AUoAXoECAEQAw&biw=734&bih=706&dpr=1.25#imgrc=GiKTAgM5w15IRM&imgdii=qfmlb1aReFMjVM>accessed on 12.05.2023
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• Purwanto, A. and Juliana, J., 2022. The effect of supplier performance and transformational supply chain leadership style on supply chain performance in manufacturing companies. Uncertain Supply Chain Management, 10(2), pp.511-516.
• Rabiul, M.K., Patwary, A.K. and Panha, I.M., 2022. The role of servant leadership, self-efficacy, high-performance work systems, and work engagement in increasing service-oriented behavior. Journal of Hospitality Marketing & Management, 31(4), pp.504-526.
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Appendices (Primary research findings to be attached here)

Strongly Agree	Agree	Disagree	Strongly disagree
Do you regularly receive constructive performance feedback from your manager?	4	2	1	0
Do you think your manager cares about you as a person?	5	8	2	1
Does your manager care about your development?	3	4	1	2
Does your manager create a trusting and open environment?	4	5	2	1
Are you confident in the overall effectiveness of your immediate manager?	5	2	0	4
Does your manager recognize the importance of your personal and family life?	3	1	3	1