Netflix Pto

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Category: Business and Industry

Date Submitted: 01/18/2011 12:07 PM

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While trying to decide whether this policy fits into our client’s companies’ culture, we analyzed a few theories of motivation. The most well known model is that of Abraham H. Maslow’s hierarchy of needs. Which proposes that an individual’s lower level of needs must be satisfied before that person can address higher level needs. Starting with Physiological, Security, Social, Self-Esteem and ending with Self-actualization needs.1 The second theory we analyzed was Herzberg’s Motivator-Hygiene Theory, which states “for employees to be truly satisfied and to perform above minimum standards, motivators had to be built into the job.”2 We also reviewed he Exchange theory, which attempts to explain group behavior in terms of rewards exchanged and costs incurred in different interactions.3

Managers always have assumptions about human nature and use these assumptions to influence the way they motivate their employees. Douglas McGregor identified two views labeled Theory X and Theory Y. Theory X beliefs tend to lead managers to think in terms of close direction and control of subordinates since people in general are viewed as inherently lazy, lacking ambition and desire to assume responsibility, self-centered and likely to act contrary to organizational needs, and resistant to change. Theory Y assumes that people are more growth and development oriented, and not necessarily irresponsible and naturally resistant to organizational objectives. Given this orientation, the central task of management should be to arrange organizational conditions to create opportunities for people, provide guidance, remove barriers, and encourage their growth.4 After analyzing Netflix’s management style, I can say that they are definitely operating under the Theory Y assumption. Netflix believes that by treating their employees as responsible adults and giving them trust, flexibility and freedom will ultimately motivate, keep them happy, engaged, and reduce turnover.

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