Final

N E T F L I X

1 0 - 3 F I N A L P R O J E C T

A P R I L G O S S

S O U T H E R N N E W H A M P S H I R E U N I V E R S I T Y

N E G O T I AT I O N FA C T PAT T E R N

• Who: The company Netflix and their employees

• What: Cultural effects on a new path that is causing a major crisis.

• When: 2001

• Where: Netflix is located in California.

• Why: Higher performance workers is a must in all department

• How: Making sure they are recruiting the top employees

T Y P E S O F P O W E R • Official Power

• Transactional (reward) Power

• Coercive Power

• Knowledge Power (information) Power

• Charismatic Power

• Principe Centered (social) Power

C U LT U R A L A N A LY S I S OV E R V I E W Organizational Culture

Trust-Netflix has a plan put

In place that make sure they are in the

Best interest of the company

• Communication – Netflix

wants their employees to speak to management

Regarding there issues.

C U LT U R A L A SS U M P T I O N S • Netflix has a strong reputation that is known for there different ways in how

they deal with employees. Especially their severance package.

• Netflix has so much trust in their employees that they often time don’t have any rules and they don’t like to micromanage and entrust that they make the right decision in taking time off for vacations and still complete there task.

C U LT U R A L A N A LY S I S OV E R V I E W • Severance negotiation

• Netflix has always been open and honest to their employees on what they expect from them, and they are made aware of what happens if they do not give a top-tier performance.

P I O C A N A LY S I S OV E R V I E W • Opening Remarks / Case specifics

• Sharon and Alice should agree on a place to meet. Sharon should be courtesy and open to have a full discussion with Alice and make sure she listens on all th concerns she has. Also, when they meet Sharon would welcome and have a neutral approach to the meeting.

• Before the meeting begin Sharon should thank Alice for her time in showing up to the meeting. Sharon needs to start positive in the beginning and thought the meeting like telling her that she appreciate the years the was with Netflix. Also the meeting vibe should be comfortable for both parties.

• Alice will need to start off with how long she been with the company the best things sje ejoyed so far since working at Netflix. This will be and ice breaking for both parties to have a casual conversation instead of jumping right in.

• Sharon should start her meeting in a open statement about the negotiation process. The open statement is a ways for both parties start on the same page and there will be no miss communication before they start.

• Case Specifics

• ZOPA- When it comes to PIP Sharon should explain to Alice about letting her fix her mistakes in letting her complete the PIP before moving on the the next step in her careers process.

• Interest- Sharon should make her decision based on Alice tenure there at the company. Her package should be fair and considerate based on the length on fime she been with the company.

• BATNA-For Alice severance package she should give Alice a year worth of benefits. This would allow Alice time to sit back and get herself together to find another job.

P I O C A N A LY S I S OV E R V I E W- A L I C E J O N E S • Zopa- The 90 days PIP should be considered since this will allow her to still

keep her job instead of being unemployed and looking for a job.

• Interest-If the PIP doesn’t seen like an effective option of Alice, she can be a good asset to another department/team. After all she been there for over 10 years and she showed promising improvements at her job.

P I O C A N A LY S I S OV E R V I E W • Integrative Interests

• Open Ended Questions-

• open-ended question, it gives Alice the chance to start by these kinds of questions; it gives a healthy

dialogue in understanding the method around the PIP for the employees. So Sharon's determination

consumes a healthier way showing that she is sympathetic of Alice. She desires likewise be talented to

classify Alice's attentions as healthy as her location around respect to the PIP through request exposed over

problems the employee may have in that program, and they are changes that needed to be made.

• Closed ended questions- Sharon should Ask Alice questions like are you available to talk about

the problem with the performance within the Netflix company. It also closed question a guiding range when

the meeting should be concluded, and it is coming to an end. Also, towards the end, Sharon needs to make

sure everyone is on board with the PIP, including Alice.

P I O C A N A LY S I S OV E R V I E W • Objective Criteria

• The main goal for both parties is to have effective win-win negotiations for everyone. When you enter the meeting that should be your thought process for everyone involved. So, everyone should have an open mind before entering in the meeting.

• Alice was put on the PIP, because they management seen something in Alice and know that she is a good worker that needs a little guidance in making her a better employee in the long run. This will give her the opportunity to improve.

C O M M U N I C AT I O N S T R AT E G I E S • Overt Communication

•There is a clear understanding

•That Sharon can offer to explain

•In why they pride their self with the top employee

•In the policy handbook.

•Sharon can show respect by having good posture and body language in the meeting, • Tactic Communication

• •There are different ways to let someone know that you are understanding them

• And know how you are feeling without saying a word.

• saying it, this is called tacit communication.

• •Sharon can acknowledge Alice by engaging and nodding

• she speaks, this will let Alice know that Sharon is

• being attentive.

• •Sharon can maintain good eye contact, good posture and smiling are healthy forms

• of tacit communication. All of these are important in

• negotiation.

C O M M U N I C AT I O N • Benefits • Overt Communication- It get’s your point across but with honesty and

respectufully which Netflix values honesty.

• Tacit Communications- When you don’t go overboard with information

• It’s very settle but it’s still come across clear.

• Risks • Overt Communication- It’s precise and clear and you can’t leave any room for

error with this type of communication.

• Tacit Communication- Is less information and if you are not clear on the understand it can leave room for error in misunderstanding,

N E G O T I AT I O N TA C T I C A N D S T R AT E G I E S •POTENTIAL NEGOTIATING

•GAMBITS • •Cherry-picking- Cherry Picking is a great tool their perfect deal through

• When she is fishing around to see what other big companies are giving there employees

• what other companies are offering for severance different serverance

• packages based on employee tenure. At this point Sharon

• can pick the best option to present to Alice.

• •Power of print and Policies: Sometime we often give more credibility that the company policies

• that was written for. Sharon can pull out Netflix’s handbook on how they handle performances policy to

• show Alice that the company only hires and maintains

• top performers.

C O N ’ T N E G O T I AT I O N TA C T I C A N D S T R AT E G I E S • SPECIFIC GAMBITS

• This tacit will help Sharon understand Alice’s situation and how she feels. Alice has much potential that is why she was put on a PIP, because they saw something in Alice. Sharon should keep this in mind with her meeting with Alice. Sharon is, after all, representing Netflix, but it is essential to keep in mind what is “fair and right.”

N E G O T I AT I O N TA C T I C S A N D S T R AT E G I E S : TA C T I C S • The take it of leave it act doesn’t work well in situations like this and Sharon

shouldn’t take this kind of approach. Especially if she wants to end this meeting on a good note with Alice.

• Another Tacit Sharon shouldn’t allow is negotiations flinch. Sharon needs to come into this meeting levelheaded and open to understand Alice concerns. Sharon should also control her face expression because once Alice starts going over her demand then it might come across insulting if Alice feel like Sharon don’t take her needs into considerations.

R E F E R E N C E S

McCord, P. (2014). How Netflix Reinvented HR. (cover story). Harvard Business Review, 92(1/2), 70–76.

The Practical Leader (2013). 6 Basis of Power for Leaders Intro. Retrieved From:

https://www.youtube.com/watch?v=0HlE5rG1MkA

The Woman Behind the Netflix Culture Doc. (n.d.). The Woman Behind the Netflix Culture Doc. Retrieved from

https://firstround.com/review/The-woman-behind-the-NetflixCulture-doc/

Hastings, R. (2009, August 1). Netflix Culture: Freedom & Responsibility. Retrieved from

https://www.slideshare.net/reed2001/culture-1798664

 

R E F E R E N C E S