- What performance appraisal method would you recommend to make sure that only the best are kept on the Netflix team?
The recommended performance appraisal method would be the 360-degree performance appraisal. This performance appraisal approach reduces instances of rater bias and increases chances of acquiring accurate information. The input information using this approach is wide and can include customers, superiors, subordinate, and suppliers. Thus, all sections an employee impacts has an influence on the performance appraisal, which ensures that an employee’s full impact on the strategic objectives of the organization can be fully accessed. Furthermore, the manager can have more opportunities to discuss work and areas of problems. Using the approach, Netflix can provide customers with what they want based on the service provided by the employees. Additionally, it eliminates the need to have salaries as a criteria in the evaluation hence employees can prove their talents. Managers that know their employees well have the capacity to make decisions, which are consistent with the needs of the organization and the needs of the employee.
- What are the Limitations and risks of Hastings human resource management practices?
Hastings human strategy may have some significant limitations. For instance, in sourcing for the best talent, they need to ensure that the nature of talent required does not affect the organizational culture. Different talents in the organization and the freedom of expression may override the organizational core culture and brand. Furthermore, focusing on talent may require frequent recruiting in case where job requirements of the employees change. This will affect employees that cannot adapt to new situations. Additionally, the talent management approach focuses more on the needs of the individual rather than on the needs of the organization. It becomes easy for employees to use the organization as a platform to gain experience and then shift to other jobs in the same market. A risk associated with the talent approach is poor ethical standards in terms of allocation of resources. Unethical situations may arise where one employee is favored over the others based on some form of relationship with the manager.
- How does Netflix’s compensation encourage high performance?
Netflix has developed a transparent environment where information concerning compensation is available to employees. This serves to motivate and encourage the employees to improve performance. Employees will more likely have a higher performance and career goals when they are more aware of the potential benefits and rewards available to them. Paying employees high rates for talent ensures that top talent is retained in the company.
- Performance of Hastings and Netflix currently
Netflix performance is still high and the company is still a leader in its business. It has gained 1.44 million net subscribers in the international markets and revenues have increased because of expansion in Canada, Europe, and South America. Hastings continues to insist on rewarding performance and not effort as a key strategy in increasing the company’s performance. This implies that even if the effort is minimal as long as the work produced is great, reward should be given accordingly. Furthermore, Hastings insists on his human resource strategy since as the company grows the standard of talent required also goes up. Hastings also insists on paying employees what they deserve as an approach of retaining top talent.
Work Cited
Schermerhorn, John R. Exploring Management. Hoboken, N.J: Wiley, 2011. Print.
