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Reed Hastings Leadership And Governance Style-Case Study

Question :

The case study is based on the leadership and governance of Reed Hastings, who is an American businessman and the co-founder OF Netflix. Hastings is the former member of the California state board of education. Hastings is an advocate and reform through charter schools. As the company company develops the licenses and delivers the entertainment across different varieties of languages to 193 million customers in about 190 countries. In 1991, he founded the pure software and was acquired by rational software in 1997. Reed Hastings is an active educational philanthropist and served on the California state board of education from 2000 TO 2004.

  • Is keeper test proved to be efficient for the company?
  • Are the employees and workers of Netflix comfortable with the working atmosphere?
Answer :

The case study is based on the leadership and governance of Reed Hastings. As per the viewpoint of Victor J. Goncalves, 2018, Reed Hastings has used the transformational leadership style where the reciprocity and the intelligence has used to describe his leadership abilities. Hastings approach to the leadership has defined the personal time off, the travel policies, formal reviews and the various compensation packages are far for the business practices of Netflix. As the employees of Netflix has provided the personal time to the employees as they can take their time off as Hastings feels that it is necessary for the company. No compensations are offered to the employees as they are offered to the market based pay according to their work and capability.

Netflix Founder Reed Hastings: Make as Few Decisions as Possible,2014

ISSUES

  • Using Keeper test for employees and the workforce.
  • The myth of the all star team

SOLUTIONS

The issues which is faced by Reed Hastings as he is using the transformational leadership style to run Netflix. As the transformational leadership is the leadership style where the leader of the company works with the team to determine the changes, creating and making a vision according to the planned goals and implementing the change according to the need of the company. As the Keeper test proved to be a downfall for having the company's leadership influence as workforce. There were many firings of the employees that were caused by using Keeper test. The employees were not able to adapt the changes according to the customer 's needs and the desire and wants. The issue can be resolved by keeping and planning about the goals and objectives that what the company is desiring from its employees and workforce to have better performance. The leader can plan for goals and objectives of the company to become. Hastings can define a name that can the both early stages and the desired stages of business company to avoid the risks and uncertainness can be reduced by providing the employees a sense of satisfaction in providing the fair compensation, travel allowances etc to make employees work with their full of efficiency and effectiveness in the company. The leader can build a sense of trust among the employees and workers towards the company. When Hastings develops the sense of the trust and belongingness among employees and workers towards himself then employees and workers can be able to work with their passion and goodwill can be generated for the company.

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Hastings has suggested Keeper Test for the workforce and as a result everyone at the company are successful and happier as there is a star worker in the company but due to circumstances the star employee in Netflix has changed as it is unclear to understand its value. As a result keeper test has proved to be vulnerable to misjudgement and bias to the managers of the company. As the company states that managers are expected to inform the workers and employees who dealing with the issues and falling short. But due to circumstances Keeper test proved to be a failure for the star employees as some of the former employees stated that they didn't received the feedback and the opportunities to make improve in their performance. To resolve the issue Hastings can managed a balance in the their working and its employees. By keeping a focus on delivering the movies while increasing the gradually in their original content. The leader can don't let himself commoditized with the different channels and can build the build and carry the business practices slowly. Hastings can use talent management for the hiring the employees in the company for achieving the desired goals and objectives with the better performance in the market. Hastings can use different talent management skills to determine the talents and skills of employees and workers so that right person can be hired to achieve the desired goals ad objectives of the company. As the company and Hastings have probably gained attention about the talent management approach in managing the the talent than for any other management skills.

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RECOMMENDATIONS

Hastings can use better decision making in the company. By keeping active participation and taking initiatives from the employees and workers by taking their suggestions according to that certain decision are made in the company. The leader of the company can starts from the basics and can identify the sources through which the company can make decisions and according to that implement the certain actions. Hastings can identify his traits to analyse the employees so that an effective leadership can be performed as it is stated by Hastings executives need to take time to develop and make new skills and improve the performance according to that. Hastings can provide strategies to manage the business practices and can lead to spend less than having the personal requirements. The company can develop the goodwill for Netflix by adopting different strategies and using effective leadership styles by making changes in the company according to the needs and want of the markets in order to improve the performance of the company. The new changes can be adopted by the company to maintain a position and surviving in the markets. With the use of new ideas and adopting changes Netflix can be able to improve its performance more.

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