Organizational Culture at Netflix
Organizational culture can be categorized into observable artifacts, espoused values, enacted values, and fundamental assumptions. These four segments enable a breakdown and an opportunity to analyze an organization’s culture deeply. “The problem with culture, if you ask an engineer or an account, is that most approaches to organizational culture treat it is an artifact.” (Chehade. Mendes. Mitchell, 2006). Observable artifacts are the most apparent elements in an organization’s culture. Espoused values are defined as the principles explicitly stated to be an organization’s customs. Enacted values are the norms employed by an organization’s employees. These standards may be equal or diverse to the espoused values. Basic assumptions are simply the organizational beliefs that are—Neglected by the organization and its employees to the point that these values are perceived as assumptions.
| How Netflix Reinvented HR | The Woman Behind the Netflix Culture
Document |
Netflix Culture: Freedom &
Responsibility |
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| Observable Artifacts | Employees should not need a bonus to work efficiently (pg.75) | Everyone knows their role and plays their position (pg.2) | Values are shown by rewards (slide 6) |
| Time off is at the employee’s discretion (pg.72) | Smaller meetings kept the employees focused on the situations at hand (pg.8) | The hiring process is very strategic (slide 23) | |
| Espoused Values | Maria noticed that the technology around her was changing (pg.73) | Netflix wants everyone to be honest (pg.6) | Give employees the freedom to be innovative (slide 42). |
| Netflix’s expense report is in the company’s best interest (pg.73) | Everyone needs to remain focused to get the job done (pg.6 | Netflix wants exceptional employees only (slide 22) | |
| Enacted Values | When we stopped doing formal performance reviews, we instituted informal 360-degree assessments. (pg.74) | High-performance people will work better if they understand the context and are turned loose to work within it. (pgs.4) | Avoid rules as you grow and suffer chaos (slide 54) |
| HR people can’t believe that a company the size of Netflix doesn’t hold annual reviews. (pg.74) | Traveling employees are trusted to use common sense. (pg.5) | We have a culture of creativity, self-discipline, freedom, and responsibility (slide 59) | |
| Basic Assumptions | So we asked managers and employees to have conversations about performance as an organic part of their work (pg. 73) | “The belief part can actually outdo the order two. Its more than passion” (pg.6) | Freedom is not absolute (slide 61) |
| We didn’t measure whether they were excellent coaches or mentors or completed their paperwork on time. (pg.74) | “You can ask for adult behavior from almost everybody, really” (pg.6) | Flexibility is more important than efficiency in the long term (slide 78) |
References
Chehade, G., Mendes, D., & Mitchell, D. (2006). Culture change for the analytical mind. Strategic Finance, 87(12), 11-13,15. Retrieved from http://ezproxy.snhu.edu/login?url=https://search-proquest-com.ezproxy.snhu.edu/docview/229872849?accountid=3783
McCord, P. (2014). How Netflix Reinvented HR. (cover story). Harvard Business Review, 92(1/2), 70–76. Retrieved from http://ezproxy.snhu.edu/login?
url=https://search.ebscohost.com/login.aspx? direct=true&db=bth&AN=93302820&site=ehost-live&scope=site(2018). Retrieved from http://firstround.com/review/The-woman-behind-the-Netflix-Culture- doc/
Hasting, R. (2009). Culture [PowerPoint slides]. Retrieved from https://www.slideshare.net/reed2001/culture-1798664/19-Seven_Aspects_of_our_Culture
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Question 
Apply what you know about Watzlawick’s iceberg communication model to analyze the organizational culture at Netflix. To do this, you will write a one-page paper to identify examples of each of the four corporate culture variables at Netflix, defined in the prompt below. You will find these examples in the following readings about Netflix:
Organizational Culture at Netflix
- Library Article: How Netflix Reinvented HR
- Article: The Woman Behind the Netflix Culture Doc
- Website: Netflix Culture – Seeking Excellence
This task provides you with critical insights that will assist you in completing Section II: Cultural Analysis Overview of Milestone One.
Prompt
Your submission must include these critical elements:
- Examples from the readings of the four variables of the organizational culture at Netflix. The four variables are observable artifacts, espoused values, enacted values, and basic assumptions, as defined by Kreitner & Kinicki (2013) in their book Organizational Behavior:
- Observable Artifacts. These are visible components of a company’s organizational culture, i.e., acronyms, manner of dress, awards, myths, stories about the organization, published lists of values, values reinforced via observable rituals and ceremonies, decorations, company brand features, etc.
- Espoused Values. These are the explicitly stated values and norms that the organization prefers.
- Enacted Values. These values and norms exhibited by the employees may be the same or differ from the stated espoused values.
- Basic Assumptions. These organizational values have become so taken for granted over time that they have become assumptions that guide corporate behavior.
- Sources of the examples of each of the four variables from the readings.