MSc Management Management Essentials Assignment Sample 2023
Introduction
Good management practice refers to the process through which an organisation effectively manages all operations to retain its growth and development in the highly competitive market. In recent times, the implementation of digital technology, increasing competition, environmental challenges and many different critical issues have adversely affected the practices of management.
Proper corporate governance provides immense support to the companies to maintain sustainability within the business process and the company also maintains desirable relationships with the stakeholders (Jan et al., 2021). On the other hand, lack of management practices creates several issues within the company as it enhances the credit within the workforce of the company and therefore, good management practice provides immense support to maintain the brand image effectively.
In recent times, Netflix is one of the popular companies which operates subscription streaming services, and production and the company are based in the USA. Along with that, the company has created a huge network as it is streaming in 30 languages and 190 countries (About Netflix. 2022). Effective management of the company provides immense scope to retain its growth and development in the international market despite the high competition and mitigate the other operational challenges.
In this report, the importance of good management practices will be discussed and with the help of the company, it becomes easy for the readers to understand the importance of leadership, values, the potentiality of emotional intelligence, and management practices of the company among leaders and many more.
Task 1: Management practices at Netflix
Mission
The mission statement of Netflix is all focused on entertaining the world through availing of on-demand movie streaming services based on the nature of the company (Rivera, 2022). Netflix also conceptualises the mission by enabling access to best-in-class TV series, documentaries, movies and mobile games irrespective of consumer taste and location and only controlled by the members through a simple subscription.
The brand promise of Netflix is roughly considered its mission statement which promised to avail stellar services to the customers, valuable partnerships with the suppliers, investors for prospected, sustained and profitable growth and employees for alluring a huge impact (Blair et al., 2019).
Apart from that, the vision of Netflix encompasses becoming the best global entertainment distribution service, licensing the content of entertainment throughout the globe, creating accessible markets for filmmakers, and helping the content creators throughout the corners of the globe for finding a global audience.
Values
The core values of Netflix are judgement, communication, curiosity, selflessness, courage, curiosity, passion, innovation, inclusion and integrity, which are integral to the organisational business operation for ensuring organisational thriving (Jobs.netflix.com. 2022). The employees it hires are rewarded or let go where the above values are uniquely designed to gain market proficiency through employee engagement and market proliferation show the organisational value.
Wise decision-making through ambiguity seeking the best for the organisation, fast decision making, understanding before responding through adopting diversity in communication as well as an inclusion with transparency and passion for driving excellence are the valued behaviours adopted by the company. The company also emphasises innovation, curiosity for eagerness and rapid learning through developing new ideas and the flexibility to thrive in a constantly evolving organisation.
Moreover, Curry (2020) has stated that Netflix has implemented the inclusion of diversity in a great measure through its program Strong Black Lead supporting black Americans in lead roles with increased numbers of Black employees and black leaders.
Preferred style of management
The CEO of Netflix Reed Hastings is familiar with the hands-off approach to leadership which allows a high level of autonomy to the employees through the cost of elevated expectations along with the culture of direct feedback. The leadership style of Reed Hastings is preferably called exemplary leadership, which is a mix of transformational and laissez-faire leadership for focusing on change, organisational convention, high growth and employee empowerment with trust building (Opencommons.uconn.edu. 2022).
Additionally, the organisational culture is highly influenced by the leadership action and commitments to sticking to the organisational values. Netflix usually manages the change in the organisation through the concepts of organisational culture based on freedom and responsibility. The organisational culture of the company is upholding the empowerment of employees, a dream team mentality, and transparency along with direct and honest feedback, which ensures the employee motivation and satisfaction to engage and initiate the innovativeness for organisational growth and positive success rate.
It may be argued that the managers and authority of the company are bestowed the responsibility to enable everything that the employee needs for making informed decisions without giving the authority for making choices on behalf of employees.
The employees of the company are subjected to follow the guidelines of being to “act in Netflix’s best interest” and “use good judgement” without monitoring or regulating the employee spending, travels and gifts. The freedom and autonomy provided by the management for self-management have greatly benefited the organisation with a bright sense of job satisfaction and individual well-being and mediated improved performance.
The organisational structure of Netflix follows the U-form hierarchy where the CEO is heading all the divisions of the organisation accompanied by product, legal, content, talent, communications and finances. Furthermore, the U-form hierarchical management collaboratively handled the geographical divisions as well as product/operation divisions to accomplish the organisational daily activities (Referred to Appendix 3).
On a different note, the organisational management style is preferably to support and promote leadership in the organisation to engage the employees to become empathetic and curious colleagues. The hands-off approach of leadership allows the company to promote freedom of thought and innovation in the organisational context to gain a competitive market advantage and deliver business success.
The management of Netflix has set clear goals for its employees, focusing on finding the most satisfying experience of global titles for everyone, which is further solidified by the core organisational philosophy of continuous innovation. It may be argued that Netflix has devised a consolidated approach to information sharing for enhancing the transparency among the CEO, board of directors, and executive members for its informed decision making, engaging the management inclusively in decision making (Larcker and Tayan, 2018).
The management style of the organisation is all structured, influenced and practised through the leadership behaviour, priority and benefiting the organisational growth by empowering employees, increasing transparency, innovation, autonomy and freedom.
Task 2: Key business challenges for Netflix
Netflix is a popular company and the company has a huge range of subscribers therefore it is recognised as one of the streaming giants in the international as well as national range. There are several rival companies such as Amazon Prime, Disney+Hotstar, Jiocinema, HULU, YouTube, HBO Now and many more as people are highly engaged in online platforms all over the world.
Amazon prime is one of the key competitors of the company and according to research the present number of subscribers of the company is 220.7 Million and the present number of subscribers of Amazon is 168.3 million and which proves the neck-to-neck competition among the companies. The current pricing strategy of the companies such as Netflix and Amazon prime is almost similar the streaming plan of Netflix is $10.99 per month and the streaming plan of Amazon prime starts from $12.99 per month (Refer to Appendix 1).
One of the key challenges for the company is language to attract the attention of the global consumers and according to research, more than 40% of the company audience looks for other languages instead of English though the demand for English is high (Lamkhede and Das, 2019).
Figure 1: increased competition in online media streaming entertainment for Netflix
(Source: Lamkhede and Das, 2019)
Effective leadership or management practices of the company may provide an opportunity to overcome the challenges through managing the operations effectively and maintaining consistency in the competitive world. According to a study, content plays a crucial role in attracting the attention of the subscribers or non-subscribers and it creates a challenge for the management of the company as it decreases the competencies of the company (Refer to Appendix 2).
Therefore, creativity is highly required to take competitive advantages in the highly competitive market scenario and to boost the sales of the company after maintaining its position in the global market. Creativity is one of the key factors in the business such as online streaming or production house and the management of Netflix incorporates several kinds of strategies to boost the marketing process (González et al., 2020).
In the case of marketing, the company has adopted innovative online marketing strategies such as personalised email to the subscribers which emphasise the demand of the consumers. In the case of pricing the company has implemented lower pricing tiers in some markets and to mitigate the challenges in local markets, the company brings innovation within the infrastructure of the company.
The effective leadership or management team of the company comprises several experienced leaders such as Reed Hastings, the Chief Executive Officer (CEO), Dean Garfield who is Vice president of the company and many more. Therefore, the decision-making process within the company is well-supported by these experienced leaders which help the company mitigate the contemporary challenges effectively.
According to a study, Reed Hastings provides focuses on freedom as well as responsibility which helps to create a desirable work culture within the operation and provides a great scope to enhance the creativity of the employees (Zhu, 2022). It also helps the company in managing the employees all over the world and proper participation of the employees boosts the decision-making process of the company because innovative notions of different employees help to bring changes within the operation.
In this age of globalisation, the company faces huge challenges during organisational change or crisis and in that time effective management practices provide a desirable solution to beat the other companies in the contemporary market. It may be argued that decision regarding distribution network with the help of the latest technologies such as data analytics provides a great scope to the online streaming and production houses to beat the competition of traditional production houses (Hadida et al., 2020).
The technological advancement and allocation of funds according to the decision of effective management of the company creates the latest opportunities for the company to overcome the challenges of getting subscribers or expanding the market in emerging economies.
Management of Netflix with the help of technology constantly tries to make the app or websites of the company user-friendly which grabs the attention of the consumers. Apart from that, the creativity of the employees in the competitive world boosts the progress of the business as it helps the company to provide desirable content which also influences the purchasing behaviour of the consumers.
According to the company’s website, the inclusion of employees within the decision-making process, communication with the consumers, and sharing of information deliberately, broadly, and openly makes the company distinguishable from other companies (About Netflix. 2022).
Task 3: The potential impact of Netflix’s managers’ Emotional Intelligence on employee engagement and organisational performance
Emotional Intelligence (EI) is reflected in the ability to understand and manage the emotions of individuals as well as the people around an individual where a high degree of emotional intelligence helps people to meaningfully articulate their personal emotions for organisational purposes. Gong et al., (2019) emphasised that, to competitively run an organisation emotional intelligence is an inevitable priority to manage its employees in a high work pressure environment to reduce job burnout and improve job performance.
Netflix usually follows the hands-off approach to leadership which is helping the business success of the organisation through increased autonomy and a high degree of innovation. EI has the ability to effectively align with the employee psychological capital, where EI plays a regulatory role between organisational citizenship behaviour and psychological capital. The leaders of Netflix have to live and breathe the organisational value for every engagement where the performance management in the organisation follows a 360-degree review process.
The managers are responsible for aligning the departmental performances with the employees as well as with overarching organisational goals. The corporate culture of the organisation encourages the employees to explore the possibilities of new ideas and ways to achieve the working objectives.
Figure 2: Role of Emotional Intelligence mediating the employee engagement
(Source: Gong et al., 2019)
Employee empowerment by Netflix is highly followed by the organisational leaders to effectively align the ups and downs of the individual to accommodate the organisational responsibility and job performance. The EI of Netflix managers helped to build emotional reasoning and inspire the employees for high performance with a high reward management structure.
The EI of individual managers helps the employees to become resilient and aggressively achieve the organisational business objectives through the high performance of an individual. On a specific note, the managers of Netflix are inspired by the hands of approach to leadership by the CEO Reed Hastings which allows individuals to engage in creativity and influence innovation and decision-making for organisational purposes.
The individual voice has been recognised for influencing organisational success through widening the scope of better employee engagement and participation in the organisational mission, vision and objectives. Additionally, the managers of EI help the work culture to promote and influence individual autonomy for increased performance as well as innovation which is mediated through increased job satisfaction with the promotion of well-being and creativity in the working environment.
It may be argued that the leadership style of Reed Hastings is a mix of transformational leadership and laissez-faire leadership which is accommodated with a high degree of EI. The organisational vision, values and guidelines are all structured through a high degree of EI where employee empowerment, the inclusion of diversity and performance management are helping to grow and prosper the organisational success through effective employee performance.
The leaders of Netflix provide immense support to the employees which enhances the creativity of the employees as open interaction among the employees provides freedom. In the current scenario, there is huge work pressure which demotivates the employees and during this time strong support of leaders motivates those employees as part of EI to boost the confidence the employees.
Emotional intelligence helps to make differentiation among the leaders who are successful in different organisations and it helps to enhance the leading skills by reducing technological implementation within the operation (Issah, 2018). In the age of globalisation, the increasing competition among the online streaming and production companies poses a real threat for Netflix as well as an effective management team with the help of proper EI helps to overcome the challenges.
EI helps the leaders to boost collaborative work, deal with changes, and show empathy to the employees and so on which enhances the productivity of the company. Creativity is highly important to increase the quality of content to draw the attention of the audience and EI helps the leaders to understand the emotions of the employees and interact with or engage them in different decision-making processes to boost the organisational performance of the company.
According to a survey, the revenue of the company is increasing as the company earned revenue of $30 Million in 20121 and it has grown from a revenue of $1.67 million (Statista. 2022).
Figure 3: Increasing revenue of Netflix
(Source: Statista. 2022)
Apart from that, in recent times the leaders of Netflix have to deal with a cross-cultural environment and the leaders of the company need to manage the employees from different corners of the world and therefore substantial understanding is highly required for the leaders.
In difficult situations, EI provides support to the leaders to decrease the inner conflict among employees which amplifies the pace of progress and increases the scope to obtain desirable success. Considering the above discussion, it may be quite clear that EI plays a great role in increasing the quality of the performance of the employees which reflects on the overall performance of the company.
Task 4: The alignment of Netflix values and management practices
Resilience management in Netflix
Resilience refers to the capacity through which an enterprise is able to recover or sustain through difficulties and uncertainties whereas Netflix is best known for its resiliency through innovation and adaptation. Netflix’s objectives are clearly defined for organisational resilience intricate with the company culture of freedom and responsibility, context and not control along with no rules.
The resilience of the company is outlined through the capabilities of resilience health monitoring and reporting, Dependency mapping and Resilience as a Service (RaaS) which primarily is engaged with identifying the risk assets. It may be stated that the risk assessment encompasses application, process, vendor relationship, physical locations or studio productions where the criticality risk score is from 1-10 for recovery time objectives.
The second step is the capability score for acknowledging the response availability and recovery for the current level of resilience of the risk assets while the final step is the resilience risk score which helps the risk owner to invest in resilience.
Moreover, the company culture is bestowed with real values and echoed through the employee’s statement through implementing the individual feeling as the right thing to fit for the organisation, taking creative risks where the full support is always there by the organisation. Heinz et al., (2021) assessed that the transformative and adaptive capabilities of Netflix help the organisation to reinvent, innovate, transition and resign the opportunities to become a leading online video streaming service.
Figure 4: Resilience management in Netflix
(Source: Heinz et al., 2021)
The organisational resilience has been witnessed through the massive transformation from DVD rental services to online video streaming and gaming through digitally transforming the business model in the wake of YouTube and other online video services. Netflix’s resilience is leveraged through constant innovation and successfully navigating through the challenging digital age.
The organisational real value also pointed out the autonomy, innovation, curiosity, judgement, courage, passion and integrity where employees are involved in focusing on opportunity and successfully capturing it through innovation. Additionally, Netflix is also engaged in creating and streaming its own production beginning with House of card (2011) and critically aligned with organisational resilience and prospects.
Apart from that, Netflix has adopted an Active-Active cross-regional architecture for its digital resiliency program where customer traffic is load-balanced across three distinct cloud regions with consistent data to manage its wide spectrum of global customers at a glance without digital failure (Refer to Appendix 4).
Izrailevsky and Bell, (2018) have mentioned that cloud computing is the modern technological artefact to improve digital scalability and performance where elasticity allows the company to rapidly deploy and store a vast amount of computing and storage resources.
Rosenthal and Jones, (2020) depicted that Netflix has embraced the chaos engineer methodology to improve organisational resilience through upholding the business process 24/7 through ensuring automatic detection and recovery from a triggered failure in a live production system.
Furthermore, Netflix’s core values emerged as real values in building organisational resilience where speed of adaptation is a cycle time of decision making and enables substitute for uncertainty by facilitating interaction for making trade-offs and boundaries of decision making.
The stakeholder relationship management in the organisation
The stakeholders of Netflix are categorised into external and internal stakeholders to effectively manage and collaborate with the stakeholders for business consistency and continuance. The external stakeholders of Netflix are competitors, customers, independent content producers, pressure groups and regulators whereas the internal stakeholders are employees, the leadership team and the shareholders.
Moreover, Netflix has implemented a microservice-based platform to promote agility and continuous development with fast time to market, optimal response time and scalability. Márquez et al., (2021) acknowledged that the microservice-based platform has encouraged the stakeholders to translate the business vision into the implementation of the architecture.
The microservice architecture has included the stakeholders in the Ambient-Assisted Living (AAL) system and Internet of Medical Things(IoMT) sensors for better consideration of stakeholders’ viewpoints and exception management. The organisational leadership team at Netflix from various functions and regions contributed positively to organisational success where employees are subdivided into four teams of product, marketing, content and corporate functions for better operational success.
The skilled talent in Netflix helps the company to develop cutting-edge solutions for managing business resilience through innovation and adaptiveness.
Figure 5: Stakeholder relationship in Netflix
(Source: Márquez et al., 2021)
On the other hand, institutional shareholders have a financial interest in business performance and need to keep informed regularly for better business efficiency through shareholder collaboration. Customer satisfaction for increased subscription, and licensing of a plethora of content for remaining competitive in the fierce market competition have enabled the company to achieve high growth and success.
Additionally, Netflix has to regularly monitor the competitors such as Hulu, Disney+ Amazon prime video Paramount+ and others. Anshari et al., (2019) described that Netflix has implemented Customer relationship management (CRM) software incorporating big data to support the personalization and customization of services, sales and customer relationships.
González et al., (2020) discussed that Netflix’s strategic management of collaborative relationships with customers and other stakeholders is focused on the relationship marketing model to create and distribute value for mutually beneficial purposes in an equitable way. Further Netflix has been beholden to the ISP provider with priority to deliver online streaming content more quickly when the internet traffic for online video streaming is high.
On a specific note, Netflix’s business process is reliable through the ISP provider’s efficiency in terms of availing sufficient bandwidth, and device manufacturing with playback technology, where continent production companies are availing the contents through lawmakers’ support of net neutrality.
The organisational culture has positioned its value to deliver business success with empowerment and autonomy and ensures a competitive advantage for the company which seeks continuous improvement. The value of the organisation has popularity articulated in its engagement with the stakeholders effectively for employee creativeness, support, reward as well as collaboration with shareholders and investors through the lens of competitor’s market doing.
The values of selflessness and courage have been pre-positioned in its communication and dealing with the stakeholders for better market representation through the contribution of the stakeholders.
Evaluating the management practice for Conflict and negotiation in Netflix
Conflict and negotiation is a crucial part of a business and it includes compensation, disputes among the public and business, disputes among employees, disagreement among consumers and so on. Netflix operates its business in the international range and therefore the company faces different types of conflicts such as conflicts with the consumers, disputes among employees, conflicts with other partners, and stakeholders of the business.
According to research, there is an ongoing conflict between the national and global industries and Netflix has faced conflict with the local companies in the international market (Wayne, 2020). Additionally, to resolve the issues with the local companies in the international market, the company implements digital technologies to reshape the relations with the local companies.
Apart from that, consumers face different issues such as discrepancies in the transaction, quality issues related to the internet and many more which also affects the reputation of the company. The company also implements digital technologies such as Artificial Intelligence (AI) which provides support to the company by giving real-time solutions to the consumers.
It may be argued that to avoid technical glitches within the operations it implants several contracts regarding distribution channels in Canada which helps the company to create value among consumers (Davis and Zboralska, 2017).
The company also faces conflict among employees which affects the productivity of the company and for this reason negotiation plays a huge role to maintain consistency. Effective leaders of the company provide immense freedom to the employees which helps the company to increase understanding among the employees and also helps the company maintain a good work culture by reducing inner conflict.
Netflix adopts practices which provide immense support to the company by creating relations among people, machines and institutions and it helps the company to mitigate the socio-technical issues within the company (Floegel, 2020). In addition to that, Netflix has a huge range of consumers and therefore the company faces several kinds of conflicts within the business operation and the company is depending on advertising or subscription business model.
Therefore the consumers often feel unsatisfied with continuing the subscription for two types of subscription and it creates conflicts among the consumers and the company. The company may focus on the in-house production and licence contracts with the content suppliers which help the company to improve the subscription fees structure (Li et al., 2021).
On the other hand, ample opportunities such as providing content in different languages, customisation process, and conveniences of offline watch support the company to boost the negotiation with consumers and create value among consumers.
Figure 6: Increasing number of consumers
(Source: Statista. 2022)
In the age of intense competition, conflict is an inevitable part of business and global companies such as Netflix also face various ranges of conflicts. Along with that, the company also implements different digital technologies to maintain the real value of the company in the market and boost the negotiation process with different stakeholders of the company.
Analysing the team management and teamwork in the company
Team management is part of business and it helps the managers of a company to achieve desired goals by collaborating with others and in global companies, team management is a crucial part. Netflix deals with huge numbers of consumers and effective team management of the company provide support to the company to retain its position of the company by maintaining the real value of the company.
Reed Hastings is the CEO of the company and the person has implemented a performance-based salary process and this helps to boost the confidence of the employees within the company (Agnihotri and Bhattacharya, 2021). Team management is important because collaborative teamwork helps the company to obtain success and for this reason, the effective leadership of Netflix constantly dominates the international market.
The production process as well as serving content through their application comprises teamwork in the case of online marketing, catering to new content, and managing a huge range of consumers. As a global company, Netflix has many employees and maintaining a good work culture enhances teamwork by boosting the confidence of the company. Ethical leadership or maintaining ethics, and providing fair treatment to the consumers helps to create transparency within the work process which also helps the company to maintain a team.
The company also arranges training programmes for the company which helps the company to increase the efficiency of the employees which increases productivity. Additionally, the company has decided to implement £1.2 Million for training programmes in the UK as the company has identified the UK market as one of the most important for market investments in the future (Refer to Appendix 5).
The training programme of the company is well known as big data analytics helps the company to assess the market demand and the company arranges the training programme according to the trends of the market (Amat et al., 2018). The leaders of the company also arrange motivational programmes for the employees which help the company to manage the team effectively and reward programmes of the company boost the confidence of the employees.
Multinational companies in recent times face critical challenges related to the growing competition, organisational complexity and technological change whereas proper team management helps to overcome the challenges (Boone et al., 2019).
Figure 7: Team management in Netflix
(Source: Boone et al., 2019)
Conclusion
From the above discussion, it has been concluded that good management practices are highly essential to maintain its position in the highly competitive market and help to maintain the real values. Netflix is one of the giant companies in the online streaming and production field and the company has a wide range of subscribers and therefore, strong management is important for the company to manage its whole operation.
Netflix also has faced several issues during the digital distribution and therefore, the company has implemented digital technologies which help the company to boost the negotiation process with the local companies in the international market (Lobato, 2019). There is an efficient team of leaders and the leaders provide immense freedom to the employees who help the company boost the confidence of the employees and it influences the overall productivity of the company positively.
On the other hand, the company also focuses on innovative training programmes which help the company to engage the employees within the work process. Apart from that, the emotional intelligence of the leaders helps to retain the top global talent for the company and effective leadership helps to reduce the inner conflict within the entertainment company.
The implementation of different policies helps the company to maintain clarity or transparency and it also motivates the employees to deliver better performance and effective team management is another crucial part of the company to retain its real value. It may be argued that lack of popper management may affect the business of the companies due to several external factors such as increasing competition, advancement in technologies, and rival companies in the international market.
Therefore, the strong management of the company is recognised as pillar of the company which effectively manages the operations in national as well as international range.
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