Functional Management Human resource management

NETFLIXS
CULTURE AND EMPLOYMENT PRACTICES
High-performance culture freedom and responsibility
Expect employees to work hard, take ownership, show initiative, and act like owner by putting
the companys interests first.
Netflix afforded them considerable flexibility in how they performed their duties. Minimize rules
and bureaucracy described as having a fully formed adult culture. [cara berpikir employeenya
diharapkan sudah lebih dewasa
Hiring employees who were capable of doing the work of two or three people company was
willing to pay top-of-market wages
Companys philosophy pay them more than anyone else likely would. Pay them as much as a
replacement would cost. Pay them as much as we would pay to keep them if they had a higher
offer from elsewhere.
Only the highest-performing employees were retained [bagi pegawai yang kurang perform bakal
kemungkinan besar untuk dipecat ada. Karena Netflix cuma mau punya pegawai2 yang
performancenya tinggi]
Involuntary turnover was very high, nearly double the rate of voluntary turnover
Employees were granted unlimited vacation during the year, with the expectation that they would
take only the time that was prudent, given the level of performance the company required [kalo
performancenya memenuhi ekspektasi perusahaan, baru dikasih unlimited vacation during the
year]
Employees were offered comprehensive health, dental, vision, and life insurance
Netflix offered a 401(k) and an employee stock purchase plan (ESPP) allowed employees to
invest up to 15% of their salary in company stock purchased every 6 months at a 15% discount
What was unique COMPENSATION MIX was determined. [kompensasi ga cuma dalam bentuk
cash. Bisa di mix sesuai keinginan employeenya]
o Ex: X was to be paid total compensation $100,000 / year, X could request to receive the
entire amount in cash. 50% cash and 50% stock options, or some other mix (up to max
60% stock options).

SOAL NO 6.

Broader applicability of Netflixs compensation program:

Types of companies or industry:

Less effective:

IDENTIFIKASI MASALAH:

Kebanyakan yang menggunakan fasilitas kompensasi stock-option adalah female employees,

higher salary, and vice president level
Functional Management Human resource management

Tingkat involuntary turn over tinggi (karena karyawan yang performancenya tidak mencapai
ekspektasi perusahaan kemungkinan besar akan langsung di cut soalnya perusahaan berani
bayar mahal)