Kim Woods Only (wk 8)
Astroorange
BuildingStrongOrganizationalCulture.pptxBuilding Strong Organizational Culture
Presented by: Jessica Alano, Jessica Baeza, Orlando Besorio and Clint Haffey
Seminar in Organizational Dynamics
OLCU 613
Introduction
Organizational culture is an integral part to any organization. It is the, “formal environment and norms” that speak to a company’s characteristics (Mercadal, 2014). Being in touch with an organization’s culture can help, “strengthen the work environment” and provide a greater understanding of the mission the company is trying to achieve (Mercadal, 2014).
This presentation will explore Netflix and Facebook to identify best practices for a strong organizational culture, compare and contrast these companies cultures as well as provide recommendations to further enhance that culture.
Employee Engagement
According to a recent Gallup survey, “only 13 percent of employees across 142 countries worldwide are engaged at work. (Gallup, 2013, p. 6). In the United States, disengaged employees are at 52 percent that has been known to result in lost productivity in billions of dollars among businesses in the country (Rana, 2015, p. 309).
“Employee Engagement is a heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or co-workers that in turn influences him/her to apply additional discretionary effort to his/her work” (Gibbons, 2006, p. 5).
Three Best Practices
Talent Management (Hughes & Rog, 2008)
Recruitment and retention of employee with high potential
Performance management
Development and succession planning (Lewis & Heckman, 2006)
Investing in people to meet their needs
Pay well, reward well, and offer job security (Bolman & Deal, 2013)
Sharing company’s wealth
Employee development
Encourage autonomy (Van den Broeck, Vanteenskie, Den White & Lens, 2008).
Effective Leadership
Foster relationship between manager and employee (Gibbons, 2006)
Walks the talks and show care by listening and responding to employees.
Treat employees with respect
Organizational Culture
Facebook’s mission: “Make the world more open and connected.” (Corporate Culture, n.d.).
The organization culture shines through the following:
Rewarding creativity
Risk taking when it comes to making decisions
Collaborative atmosphere
Quickly respond to current social media trends
Evaluate and consider innovative ideas
(Lombardo, 2017)
New employees at the organization are allowed to choose where they feel that they will provide the most impact (McCracken, 2015).
Organizational Culture
(continued)
Netflix does not have a formal mission statement, but their goal is to provide entertainment services globally.
The organization values good judgment, positive impact, and creativity.
Netflix treats each employee as part of a team that will make a big impact within the organization.
Each employee is granted the freedom to make decisions based on individual judgment.
(Thomas, 2016)
Impact of Organizational Culture
The origin of Netflix’s culture starts with first hiring the top talent available. Netflix’s chief talent officer describes it as, “the best thing you can do for employees—a perk better than foosball or free sushi—is hire only “A” players to work alongside them” (McCord, 2014).
As the company grew and demands changed, the company had to let go some of their valued employees since they didn’t quite meet the standards they were looking for anymore. They offered severance packages to those that only held community college degrees as they wanted credentialed, educated, and certified individuals on their team (McCord, 2014).
Impact on Organizational Culture
(continued)
Netflix’s culture is rooted in their faith of their employees. Their motto for their staff is, “Hire, Reward, and Tolerate Only Fully Formed Adults” and through that motto they let their teams rely on their own, “common sense” rather than, “formal policies” (McCord, 2014).
They have an honor system in place, where they expect their employees to track and report their vacation days and their own travel expenses rather than doing standard reports, they feel that since they hire top talent, they trust that they will do the right thing (McCord, 2014).
The company also did away with performance reviews, they opt to keep communication open and inform their employees regularly with how they are doing (McCord, 2014).
The culture of Netflix lies with their main idea, “Be honest and treat people like adults” (McCord, 2014).
Netflix puts a great deal of faith into their staff. They are confident that they hire the best there is and because of that they place a lot of responsibility on them to do the right thing. Netflix has continued to grow into a streaming giant and this is due to the transparency in their culture. The laid-back culture of Netflix encourages employees to be who they are and openly communicate with their managers.
Impact on Organizational Culture
(continued)
Similarly to Netflix, Facebook has a lax approach to business in their offices as well. Facebook is known for their, “casual work culture” where there is no business dress code. Employees wear jeans and t-shirts. (Skemp, 2014).
The founder Mark Zuckerburg is often seen wearing a, “hooded sweatshirt” and “sandals” to the office. (Skemp, 2014).
Impact on Organizational Culture
(continued)
Office décor is also on the casual side as they are covered in graffiti. The company motto is painted on the walls, “Move Fast and Break Things” which is said to, “ foster a hacker culture of experimentation” (Skemp, 2014).
Impact on Organizational Culture
(continued)
Facebook also has a strong hiring process. They require their new hires to meet their, “criteria” as well as possessing full understanding of the “company’s goals and direction” (6Q Blog).
They hire the, “best and brightest” and invest in, “developing their staff” to keep them competitive. (6Q Blog).
Facebook is said to, “excel in treatment of their staff, growth opportunities, freedom, responsibility, company atmosphere, stock options, general fun” as well as, “good benefits” (6Q Blog).
Impact on Organizational Culture
(continued)
Much like Netflix, Facebook’s culture has fostered great success through its staff and its business. It is the largest social media platform today. By valuing their employees and offering many perks, they have shaped their employees to be the best they can be which ultimately results in greater performance for the company as a whole.
Impact on Organizational Culture
(continued)
Comparison Between Netflix and Facebook
Both Netflix and Facebook show high employee engagement. Netflix motto states this perfectly “Hire, Reward, and Tolerate” (McCord, 2014).
Netflix and Facebook have competitive team management through a top talent hiring process.Facebook uses attractive employee marketing like allowing new employees to choose where that can make the most impact in the organization as well as traditional opportunities like stock options (McCracken, 2015)
Netflix and Facebook invest in their employees by encouraging creativity and freedom instead of reports and oversight (McCord, 2014).
Netflix and Facebook demonstrate effective leadership through a collaborative atmosphere and trust (Lombardo, 2017).
A specific recommendation for both organizations is more opportunity during paid hours to advance in formal education and training to allow for inner advancement options. This is a balancing challenge because these companies keep up with trends by hiring fresh new talent.
Insights Gained
Employee engagement begins before an individual is hired at all levels. Traditionally many individuals get into organizations through an application process or who you know. Successful companies are scouting for creative, qualified, and innovative individuals.
Another insight is the leadership role of being hands off. Where traditionally leaders were expected to take charge, now leaders are encouraged to have a more facilitative role (Greenleaf, 1970).
The traditional hierarchical structure is not “one size fits all” (Bolman & Deal, 2013). Culture is a combination of perspectives and experiences with teamwork and trust at the foundation of survival.
Conclusion
Organizational culture can have a positive impact on the work environment.
Employee engagement is the level of motivation or loyalty that an individual has towards the organization and colleagues.
The success of an organization depends on choosing the right people for the job, investing in the employees, and effective leadership.
Employees that work at either Facebook or Netflix are encouraged to be creative and independent in decision making.
Valuing employees can have a positive impact on the success of the organization.
It is recommended that both organizations provide professional development opportunities during paid work hours.
Some of the insights include leaders as facilitators, hiring the right people that fit the position, and having an open mind.
References
Bolman L. G. & Deal, T. E. (2013). Reframing organizations: Artistry, choice, and leadership. San Francisco, CA: Jossey-Bass.
Gallup (2013). State of the Global Workplace: Employee Engagement Insights for Business Leaders Worldwide. Washington, DC:
Gallup.
Gibbons, J. (2006). Employee Engagement. A Review of Current Research and Its Implications, The Conference Board,New York,
NY, pp. 1-21.
Greenleaf, R. (1970). The servant as leader. Westfield, IN Greenleaf Center for Servant Leadership.
Hughes, J. C. & Rog, E. (2008). Talent management: A strategy for improving employee recruitment, retention and engagement
within hospitality organization. International Journal of Contemporary Hospitality Management, 20(7), 743-757.
doi:10.1108/09596110810899086
Lewis, R. E. & Heckman, R. J. (2006). Talent management: A critical review. Human Resource Management Review, 16, 139-154.
Lombardo, J. (2017, February 08). Facebook Inc.'s Organizational Culture Characteristics (Analysis). Retrieved from
http://panmore.com/facebook-inc-organizational-culture-characteristics-analysis
References
(continued)
McCord, P. (2014). How Netflix Reinvented HR. Harvard Business Review. Retrieved from:
https://hbr.org/2014/01/how-netflix-reinvented-hr
McCracken, H. (2015, November 25). How Facebook Keeps Scaling Its Culture. Retrieved from
https://www.fastcompany.com/3053776/how-facebook-keeps-scaling-its-culture
Mercadal, T. (2014). Organizational culture. Salem Press Encyclopedia,
Rana, S. (2015). High-involvement work practices and employee engagement. Human Resource Development International, 18(3),
308-316. doi:10.1080/13678868.2014.1003698
Skemp, K. M. (2014). Facebook. Salem Press Encyclopedia,
Thomas, S. (2016, November 22). 7 Big Takeaways from Netflix's Employee Culture Document - Engage Me. Retrieved from
https://engageme.online/7-big-takeaways-netflixs-employee-culture-document/
(2017). An Insight into the Corporate Culture at Facebook. 6Q Blog. Retrieved from:
https://inside.6q.io/insight-corporate-culture-facebook/
