Please finish it before 11pm 9.22!!!! Essay Example
Netflix is different from other competitors in many ways. Firstly, its staff can take as many days as possible of vacation as they wish but the organization lacks a formal vacation policy in place (Bauer et al., n.p.). Secondly, the companys employees also choose on their own the percentage of their cash versus stock. Thirdly, employees are further required to foot their entertainment and travel expenses. In addition, the company pays high salaries, but does not offer external incentives such as bonuses as well as perks like free food and computer games. Also, Netflix has no performance appraisal systems and relies on an informal appraisal system where their staffs highlight and voice what their concerns are to fellow workers. Lastly, the company offers stock with no vesting period so that employees are not forced to stay with them for a certain period to fully own their stocks like other organisations do. As a result, they can leave the company at any time they want without incurring a financial penalty.
To me, the absence of policies such as vacation, travel, or expense reimbursement helps an organization function efficiently by making it less bureaucratic. Employees working in organizations lacking such policies can take vacations when they consider best and do not need to follow a rigid system that works against them. Also, do not expect to be reimbursed for any expenses that they incur while carrying out an organization’s activity, which cut costs for their companies. However, lack of such policies may negatively affect the operations of a company. For example, Netflix employees may spend more of their time on vacations rather than at their workplaces, which may lead the organization to incur losses. Besides, some employees may take short holidays, which may have a negative on their output due to lack of balance between their work and families. Also, lack of expense reimbursement may prevent its employees from carrying out activities that would make them incur expenses, but are beneficial to the company.
Netflix does not use financial incentives as the management has invested in providing them with good salaries. The management also feels that employees should derive total satisfaction from work and not from incentives. Arguably, bonuses and incentives play a significant role in helping employees behaviors and performance. Some of the common types of incentives and bonuses that companies offer include giving employees free vacations, money rewards, taking care of their families, providing them with gift cards and offering gym facilities in workplaces among others. Incentives go a long way in attracting qualified workers and retaining them. It is especially common in technology companies where companies outdo each other in attracting and retaining the best workers in the industry. Usually, employees are entitled to bonuses and incentives when they meet an individual target or pre-set objectives. Therefore, companies that offer incentives and bonuses enable their employees achieve their mission. Godechot advices companies to always develop optimal incentives that encourage employees to make a maximum effort at minimal cost (36).
Performance appraisals for a long period have been used by organizations to measure the output of employees. However, lately many companies Just like Netflix are eliminating their annual performance review process, as they are considered an ineffective tool for current employees. Besides, some employees may find the whole process scary, which can negatively affect their performance whereas some managers see the process as cumbersome. Instead, Netflix and other companies have adopted an informal 360 system where employees correct their co-workers and identify their strengths as well as weakness. Netflixs informal 360 system borrows for performance appraisals that aim to improve the output of workers by identifying their skills and rewarding them for satisfactory progress. However, formal performance evaluation systems help companies determine their high performing employees and reward them based on an objective criterion. Kadakia says that if employee performance is not tracked or measured, they would most likely not be getting any valuable career feedback that they deserve (Para. 4.).
Bauer, Talya et al. 1st ed. Flat World Knowledge, 2016. Web. 23 Sept. 2016.
Godechot, Olivier. Wages, Bonuses And Appropriation Of Profit In The Financial Industry. London: Routledge, 2016. Print.
Kadakia, Crystal. The Huffington Post. N.p., 2015. Web. 23 Sept. 2016.
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