Transcription
Advances in Economics, Business and Management Research, volume 207Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2021)Human Resources Management Review on NetflixNanda Hidayati1STIE IPWIJA, Jakarta, IndonesiaCorresponding author. E-mail: nanda.assalaam@gmail.com*ABSTRACTHuman capital is one of an organization's most crucial assets. In other words, an organization's success is directlyrelated to its workers' performance. As a result, managers, and specialists attempt to ascertain the most significantaspects of employee motivation. The effects of working circumstances, job content, and career advancement onjob motivation and performance are examined in this study. The management system offered by Netflix may be alittle contrary to the standards usually set by human resources (HR) practitioners. Being in a competitive climateand technological development, the previous practices that might have been effective now look outdated and notapplicable in the current and future business environment. So, the role of HR in the future seems no longer as aBusiness Partner. It should become an 'Enabling Business.' Netflix has proven that HR can be an enabling business.Keywords: Human Resources, Netflix, Working Conditions, Job Content, Work Motivation.1. INTRODUCTIONNetflix is a media company for movie lovers.Netflix has successfully transformed into one of theVideo on Demand (VoD) providers with the mostoperational areas worldwide. They made asignificant transformation to get the best team intheir organization. There is no hesitation. Thecompany will only hire players (grade) "A" to get thebest practices. Regardless of how much an employeecontributed to the prior organization, the employerwill discharge them if their abilities are no longerrequired. Letting go of people whose talents are nolonger necessary for the firm's evolution (as Netflix'stechnology advancements demonstrate) is a win-winsituation for both the company and the employees.In addition to companies experiencing losses.It is not just the company that suffers, andemployees will also experience a phase of frustrationwhen forced to try to achieve performance beyondtheir reach. For example, companies face challengestransitioning from DVD delivery content viacyberspace to VoD. Companies need to find peoplewho are very experienced with cloud services thatwill enable them to operate on a massive scale.Netflix's best practice is to strive to put together agreat team of employees dedicated to the company'sbenefit.Netflix enables customers to watch theirfavorite episodes from virtually any location, at anytime, and on practically any device (smartphones,smart TVs, tablets, PCs, and laptops). One ofNetflix's added values is that it is content free ofadvertisements, so viewers do not have to wait fortelevision series broadcasting schedules and candecide for themselves the content they want to enjoy.Along with improving the user experience, Netflixcontinuously attempts to strengthen its reputation asa quality corporation wanted by individuals,particularly those in their twenties and thirties. As aresult, they are now well known for their culture.2. LITERATURE REVIEW2.1. Human Resource ManagementThe value of human resources in a company isincreasingly recognized, to the point that individualsare viewed as the organization's most vital resource.[1]. Humans are the foundation for an organizationbecause that makes the organization moredeveloped. Human resource management includesthe management of workforce, personnel,employees, employees, or members so that it canmore easily identify the source from which theperson was obtained, determine or calculate howmany employees are needed, plan and analyze thefulfillment of needs to evaluate the work results [2].Copyright 2022 The Authors. Published by Atlantis Press International B.V.This is an open access article distributed under the CC BY-NC 4.0 license 1
Advances in Economics, Business and Management Research, volume 207Human resource management (HRM)implements procurement, training, and developmentactivities and compensation and other humanresources (HR)-related operations to developproductive individuals [3]. Human resourcemanagement encompasses all management choicesand activities that directly impact human capital.HRM is required to maximize the effectiveness of anorganization's human resources. The objective is toestablish a functional work unit inside the company[4].Human resource management is a processrelated to implementing management functionsranging from planning, organizing, directing tosupervising, which plays a vital role effectively andefficiently in supporting the achievement ofindividual and organizational goals. For anorganization, human resource management concernsthe overall human affairs in the organization to takean active role in achieving the goals that have beenset. Therefore, if the human resources in theorganization are managed and utilized correctly, theorganization will be able to run its businessoptimally.2.2. Netflix CompanyNetflix, according to Nugroho, is asubscription-based movie streaming service thatoffers the newest films and television episodesdaily. Netflix is a service based in the United States,namely in California. It began as a DVD rental storebefore expanding into the internet market. Netflixhas just recently been available to internet users invarious Asian nations. Indonesia is no different.Netflix arrived and officially launched its service inIndonesia on Friday, February 5, 2016. Netflixsubscriptions start at Rp. 109,000 for the basicpackage and go up to Rp. 169,000 for the premiumplan [5].In 1999, Netflix started its business activities byproviding DVD rental services. Unlike the DVDrental business, Netflix does not have a physicalstore. DVD orders are made via email, followed bysending physical DVDs to customers. By paying apredetermined subscription fee every month,customers are given the freedom to rent any numberof movie titles. In 2007, Netflix began providing astreaming service to reduce the cost of shippingDVDs. It started with 2,000 titles which then showeda good response from customers so that it roserapidly to reach 20,000 titles within three years. Thetrend of the "home entertainment" market continuesto be in demand, so that Netflix is starting to becomethe leading choice for digital entertainmentconnoisseurs.In the current digital era, Internet users inIndonesia use it more to watch movies/videos, andone of the companies that provides video streamingservices is Netflix [6]. Netflix is one of the mostpopular video-on-demand subscription services,with over 151 million paid customers in over 190countries and a diverse selection of television shows,documentaries, and feature films in various genresand languages [7]. Since first entering Indonesia in2016, Netflix has attracted a lot of media attentionbecause of the blocking from the Telkom Group,which incidentally is the largest telecommunicationsand network service provider in Indonesia [8].Netflix itself is a form of a business entitylocated and proliferating abroad, expanding itsservices in every country, including Indonesia.Throughout 2019, the number of Netflix usersincreased to 8.8 million. Which previouslynumbered 7.6 million subscribers. Meanwhile, thenumber of paid users of the Netflix applicationworldwide is 167 million. The total number is 100million, not from the United States. Revenue fromNetflix alone in 2019 reached 5.47 billion USdollars, and EPS was only estimated at 1.30 USdollars. From this achievement, we can see thesoaring revenue from Netflix itself, which evenexceeded previous expectations where the analysispredicts that Netflix's revenue will reach US 5.45billion [9].2.3. HR Management at Netflix2.3.1. Talent Management Strategy: NoCompromiseMost organizations sometimes overlook talentmanagement as a strategic endeavor. This issue isparticularly prevalent in media firms, an industrywith a low rate of new hires. Netflix is different fromother companies, and they are emphatically againstthe idea. In 2001 they laid off a third of thecompany's employees. When a company is on theverge of bankruptcy, all the remaining employeescome together to build the awareness that thoseremaining are high-performing employees. It tells usthat the best thing we can do for the business isrecruiting just the finest performers. Please takeadvantage of the complex economic environment totheir advantage.Thus, what makes workers exceptional? Themajority of firms are unaware that exceptionalworkers are subjective. Its regular recruitingprocedure evaluates a candidate's qualities onlybased on their CV and educational credentials and, ifrelevant, recommendations. Few employers activelystrive to match employees' talents (which are notnecessarily represented in academic credentials)392
Advances in Economics, Business and Management Research, volume 207with job requirements. The descriptions are writteninformation outlining duties and responsibilities,working conditions, job relationships, and jobaspects in a particular position in the organization[10]. A terrific employee who advances to the levelof player A in one firm is likely to advance to thelevel of player B in another, and vice versa. Theeffect of hiring the right talent is multiplicative. Ifthe team is filled with the right people and is keptmotivated about developing their talents andchallenges, everyone will be great at facing toughchallenges. Thus, once you have identified the mostincredible talent, you must empower them to addressthe organization's challenges.2.3.2. Forming High PerformanceAt Netflix, a great workplace is not defined asa workplace with great benefits, a beautiful office, ora delicious cafeteria. However, the great workplaceat Netflix is what if every employee could efficientlyattract and retain amazing coworkers. There is aphrase that is always emphasized by the CEO thatthe Netflix leader must be able to achieve, maintainor 'reduce' intelligently so that Netflix will have astar employee in every position. The test given bythe leaders/managers at Netflix was: "Which of myemployees, if they were going to leave this companyfor a similar type of job at another company, wouldI keep them at Netflix?"2.3.3. Giving freedom and responsibility(Freedom & Responsibility)If the company gets bigger, then the complexitytends to increase. Netflix initially provided an annualleave/off/vacation policy for employees. However,this policy was later abolished. Why? Becauseemployees at Netflix used to work online everynight, sometimes on holidays, serving email,occasionally taking breaks. So, Netflix does nottrack the number of hours its employees work butgives employees the freedom to take their number ofdays off. For example, employees can take anextended vacation and return to work with freshideas or inspiration for the company. The bottom lineis that Netflix does not have a dress code foremployees to wear, but that does not mean you canbe naked in the office.So, what are the rules for official travel,relationships with vendors/suppliers, or others thatthe company generally gives strict rules/standards?This is the exciting part Netflix's general regulationson spending, entertainment, gifts, and travel areavailable here. When employees travel on business,they must feel like spending their own money. Theexpenses incurred are required and essential for thebusiness's operations. For instance, if you are at apremium restaurant, it is reasonable for the salesmarketing staff to interact with customers. However,it is inappropriate for Netflix workers to interactalone or with colleagues. Act in the Best Interest ofNetflix –Apply in the best interest of Netflix.Working conditions influence work motivationwith a positive regression direction. This can beinterpreted if working conditions are getting better,then work motivation will increase. This findingsupports the opinion of [11], [12], [13], [14] statesthat an essential factor that drives work motivationis working conditions. If the working conditionsprovided are good enough, it will influence workmotivation.2.3.4. Compensation philosophy on TopMarketAt Netflix, there are no performance bonusesor annual bonuses. They believe that it is notnecessary if you hire the right employees. Thephilosophy at Netflix is, if you hire employees whoare mature and put the company's interests first, thenan annual bonus will not make the employee workharder or be more intelligent. At Netflix, they letemployees take interviews with competing andsimilar companies to determine the market pay forthe job. Even Netflix's HR department asked them toshare what competitors are offering because that is avaluable source of information. HR practitioners ofother companies usually avoid this, but on Netflix, itis allowed. At Netflix, they trust the wage marketmore.3. RESEARCH METHODSThe following section details the methods usedto ensure that this study is conducted systematically,directed, and transparently. The following diagramdepicts the course of this study:1) Search for news articles and journal articles.Journal searches were conducted using avariety of sources. The following keywordswere used to locate relevant journals: profiles,human resource management at Netflix andother firms, and related publications.2) Selecting articles. Following that, relevantnews items and journals are picked from theresults of the search phase.3) Conduct a review of the selected article. Thearticles that were discovered and selected arethen analyzed to create a corporate profile andhighlight the human resource managementpractices employed since the industry began.4) Gaps analysis. The next step is to analyze thereview results to search for gaps to expandNetflix's business.393
Advances in Economics, Business and Management Research, volume 2075) Improvements. The final stage is to makerecommendations based on gaps at HRM inNetflix to achieve its business goals anddirection in its business processes.4. RESULTS AND DISCUSSION4.1. Exciting things in HR ManagementNetflixNetflix has good management because it canpenetrate almost all mass media, especially insubscription tv and video streaming. The number ofconsumers who subscribe to Netflix streamingaccess in Indonesia, Netflix content that has a highrating, Netflix has the availability of qualifiedtechnology so that it can penetrate almost all massmedia, especially in visual form, can reduceunemployment in Indonesia due to the expansioncarried out by Netflix [5]. Netflix has veryinteresting profiled, my list, and continue featuresthat can make it easier for users to set customizedprofiles such as profiles for children and adults andmanage a list of movies or movies series they wantto watch. Netflix's ideas and efforts have elevated thecompany to the top spot in the Indonesian SVOD(Subscription video-on-demand) industry. This isdue to Netflix's hegemony, particularly originalprogramming. By refining its strategy, Netflix maycontinue to internationalize its product and serviceofferings in Indonesia [15].Netflix's strength lies in its original contentcontinuously produced and has good quality. Netflixis a diverse application because it presents a rangefrom the West and films from Asia (includingIndonesia) [9].According to merdeka.com's Netflix page,Netflix was founded on April 14, 1998, with 30personnel. At the time, around 925 films wereavailable for internet rental at the cost ofapproximately Rp. 40,000 per rental andapproximately Rp. 20,000 for delivery. In September1999, the notion of a monthly subscription wasestablished. Netflix then sold 5.5 million shares in itsinitial public offering (IPO) on May 29, 2002. Thegeneral public has embraced Netflix. This is seen bythe cumulative [16].4.2. Netflix subscribers recorded in 2005,reaching 4.2 million.Since 2008, Netflix has also partnered withelectronics manufacturers to provide its users withstreaming programs. Netflix collaborates with theXbox 360, Blu-ray disc players, set-top boxes fortelevisions, and the Apple Macintosh computer. Ayear later, the PS3 and various additional internetconnections were added. It does not end there.Netflix became accessible on the Apple iPad,iPhone, and iPod Touch, as well as the NintendoWii, in 2010. Netflix has opened offices in Canada,Latin America and the Caribbean, the UnitedKingdom, and Ireland since the same year.Additionally, there is the Nintendo Wii. Netflix hasopened offices in Canada, Latin America and theCaribbean, the United Kingdom, and Ireland sincethe same year. Netflix had topped 30 million usersglobally in 2012 [16].4.3. Similarities and Differences with OtherFilm IndustriesNetflix and Viu are the most popular paidvideo-on-demand service platforms, with iFlix,Google Play Movies & TV, iTunes, Viki, Tribe, andCatchplay following behind [17]. There are severaldifferences between Catchplay and other similarfeatures in IndiHome, such as Iflix and Netflix.However, the critical difference is in the service.Iflix and Netflix are more focused on TV series,while Catchplay focuses on streaming Blockbustermovies [18]. It can be seen in this study that Videoon Demand both broadcasts tv series in priority. Thedifference with Catchplay is that it focuses more onstreaming Blockbuster movies. According toKhafid, the similarities with other film industries arestreaming services and similar things, namely a).Subtitles in English and the language of each countryof service. b). Ad-free. c). I can watch offline. d).Can use 4K resolution (there is an extra charge forNetflix). e). Child mode (to control the child towatch according to his age). The styles are the samein terms of the type and amount of content, exceptthat Netflix has 47 thousand series and four thousandfilms, and Disney has 7,500 serial episodes and 500movies. Netflix is available in several countries andterritories, totaling 190. Netflix is unavailable inonly four countries: China, North Korea, Crimea,and Syria. The United States, Canada, theNetherlands, Australia, New Zealand, the UnitedKingdom, Ireland, Germany, Italy, Spain, Austria,Switzerland, India, France, Japan, Belgium,Portugal, Luxembourg, and the Nordic nations areamong the countries that may access Disney [19].4.4. Similarities and Differences with OtherIndustriesNetflix and Digital TV have something incommon. Namely, both services are in the form ofshows to be watched. According to [20], Streamingservices require internet access so that they requireinternet data to enter the network, and in subscribing,they have a predetermined bill while TV broadcasts.This digital is free of charge and does not require394
Advances in Economics, Business and Management Research, volume 207Internet access or requires a smart TV with aninternet connection and using satellite or satellitedishes. According to CNN Indonesia (2021), DigitalTV and Video Streaming Both use the latesttechnology. Many people find it difficult todistinguish between digital TV and video streamingservices. Some even consider the two the same. Oneof the differences between digital TV and videostreaming services lies in the subscription system.Streaming services generally charge a fee tosubscribe, but not with digital TV [21].The second difference lies in the use of theinternet needed to access streaming services. DigitalTV does not require internet access or must use anintelligent television connected to the internet.Digital TV broadcasts are terrestrial broadcastscommonly seen every day using digital frequencies.Older model televisions can still be used to capturedigital TV broadcasts if they are connected to a settop box. The set-top package combines the televisionset with the UHF antenna. The set-top box ischanging the transmission from analog to digitalbroadcasts. Digital TV does not require internetaccess or must use an intelligent televisionconnected to the internet. Digital TV broadcasts areterrestrial broadcasts commonly seen every dayusing digital frequencies. If linked to a set-top box,older model televisions can still be used to recorddigital television broadcasts. The set-top box is thecomponent that links the television set to the UHFantenna. The set-top box is changing thetransmission from analog to digital broadcasts.Digital TV does not require internet access or mustuse an intelligent television connected to theinternet. Digital TV broadcasts are terrestrialbroadcasts commonly seen every day using digitalfrequencies. Older model televisions can still beused to capture digital TV broadcasts if they areconnected to a set-top box. The set-top packagecombines the television set with the UHF antenna.The set-top box is changing the transmission fromanalog to digital broadcasts.4.5. Improvements for NetflixPrevious research has several suggestionsregarding Netflix services, including 1). Seeing themany competitors who offer similar services, such asNetflix, Netflix should improve prices to providemore competitive prices than its competitors. 2).Regarding the offline mode feature that was justlaunched in December 2016, it would be better if thisfeature was improved in extending video storagetime and not limiting content that can be watchedoffline so that Netflix users will be more flexible inaccessing downloaded content. 3). It is advisable toexpand in Netflix subscription registration so thatregistration is not done using only a credit card [22].Netflix has offered several packages whereusers can choose according to their purchasingpower so that, in terms of Perceived Price, thecompany can make improvements in terms of priceso that the price offered is more affordable than itscompetitors because many competitors have similarservices to Netflix, for example, the company canoffer family packages. The package can be accessedby several users at once so that the subscription pricepaid by each customer becomes cheaper. Netflix cancarry out promotional activities in advertisements inseveral media such as newspapers, magazines, andbillboards to make Netflix better known by theIndonesian people [23].Netflix must comply with the laws andregulations owned by the Indonesian government toexpand into the Indonesian market. There need to beclear regulations between Netflix and the Indonesiangovernment and private parties to avoid disputes inits implementation. Netflix itself must sort outcontent and shows that will be marketed to Indonesiato have no complaints about its performance.Establish cooperation with companies and relatedparties in Indonesia, helping to develop the economyin Indonesia [5].4.6. What to learn from Netflix for OtherIndustriesNetflix is a streaming service that offers Netflixoriginal films and shows, material produced byNetflix, and collaborations with worldwidefilmmakers (Global Film Maker) to differentiateitself from other streaming services. Netflix'soriginal films introduce audiences to a worldwideculture. In Indonesia, Netflix premiered a Netflixoriginal film named "The Night Comes for Us" forthe first time [24]. Other studies concur: Netflix'sedge over other streaming services is that it producesNetflix original films and series and partners withworldwide producers. Netflix's original filmsintroduce audiences to a worldwide culture. Netflixofficially and for the first time in Indonesia launcheda Netflix original film titled "The Night Comes forUs" [25]. One strategy to increase value andcompetitive advantage is to apply brand equity [26].Nathaniel's research said respondents agree that afterseeing Netflix ads on Youtube Ads, respondents payattention to the business of marketers, theadvantages of the services offered by Netflix, thecharacteristics of the Netflix service, and havestarted to pay attention to the price of the service[27].395
Advances in Economics, Business and Management Research, volume 207[8]Nugroho YM, Jumhur HM. (2017). Analysisof the Eligibility of Opening Netflix Access inIndonesia Viewed from TelecommunicationRegulations. eProceedings of management.Vol 4, No 3[9]Putri Nuriska, F., & Azizah, N. (2021).Analysis of Continuance Intention to UseVideo on Demand Service with Theory ofPlanned Behavior Approach (Case Study onNetflix Application Users in Surabaya City).Journal of Syntax Admiration, 2(2), n.com/index.php/jurnal/article/view/180[10]Prabowo R. (2019) Analysis of the loyalty ofthe Netflix subscription video-on-demandservice users using the extended UnifiedTheory of Acceptance And Use OfTechnology 2 (UTAUT2). Essay. Faculty ofScience and Technology Syarif 9/47931[11]Prasetyo FMR., Trianasari N. (2021) analysisof the influence of the involvement of brandequity dimensions on brand equity on videoon demand Netflix in Indonesia. eProceedingsof management. Vol.8, No.4[12]Hasan, V. (2017). Analysis of FactorsAffecting Willingness to Subscribe: A Studyon Netflix's Video on Demand Service.Ultima Management: Journal of //doi.org/10.31937/manajemen.v9i1.595.Purnomo. 2018. Analysis of the QualityThroughput of Catchplay Useetv ServicesUsing Optical Fiber in the Purwokerto Area.PROCEDURENationalSeminaronSustainable Development of Rural Resourcesand Local Wisdom VIII. Vol 8, No 1[13]Ramadhan, MR, & Kristian S, DO (2020).Analysis of Netflix Taxation in Indonesia.National Symposium on State Finance, eu.go.id/snkn/article/view/522Utami DB. (2019). Getting to KnowIndonesia Through Netflix Original Movies.Journal of Communication ISSN 2085-1979,EISSN 2528 2727 Vol. 11, No. Sudarsono BG. (2021). Netflix Data MiningData Analysis Using Rapid MinerApplication. JBASE - Journal of Business andAudit Information Systems, Vol 4, No 5]Suryani NK. (2019). Human ResourceManagement, Applicative Practical Review.Nilacakra Publishing house. Badung.[16]SUSAN, E. (2019). Human ResourceManagement. Adaara: Journal of IslamicEducation Management, 9(2), 95. CONCLUSIONThe management system offered by Netflixmay be a bit contrary to the standards that HRpractitioners usually set. This is where the differenceis. Being in a competitive climate and technologicaldevelopment, the previous practices that might havebeen effective now look outdated and not applicablein the current and future business environment. So,the role of HR in the future seems no longer as aBusiness Partner. It should become an 'EnablingBusiness. Netflix has proven that HR can be anenabling business.REFERENCES[1]Azalia DW. (2020). Analysis of FactorsAffecting Purchase Decisions on Video onDemand Services (Study on Netflix Users).Diponegoro Journal of Management. Volume9, Number 2[2]Dessyana E. (2020). Word of Mouth'sRelationship to Interest in Buying NetflixSubscriptions.Essay.CommunicationStudies Program, Faculty of Social andPolitical Sciences, Sriwijaya University[3][4][5]Fawzia U. (2020). The Identification Of "TheArt of War" Military Strategy on Netflix'sBusiness Strategy. Strategic Global. Vol 14,No1. ]Michael T. (2017). Human ResourcesManagement (Revised Edition). CV. RA De.Rozarie. Surabaya[7]Nathaniel E, Kusuma S. (2020) The Influenceof Mobile Advertising on Interest in BuyingNetflix Services During the Covid-19Pandemic. Communication Perspective:Journal of Political Communication andBusiness Communication, Vol 4 No 2396
Advances in Economics, Business and Management Research, volume 207[17]Silaen R. (2021) Human ResourceManagement. Widina Bhakti Persada.Bandung.[18]Syamsurizal. (2016). The Role of HumanResource Management in Organizations.Journal of Warta Dharmawangsa No. ajid, NA, Clear, ZA, Azman, N., andRahman, S. (2010), "Communication Skillsand Work Motivation Amongst ExpertTeachers, Procedia Social and BehavioralSciences, Vol. 7, pp. 565–567[19]Yusuf NA., Indrawati. (2019) Analysis of theFactors Influencing the Formation ofSubscription Interest in the Video-OnDemand Industry in Indonesia. Almana:Journal of Management and Business, Vol. 3No. 1[25]Djumadi (2006), Effect of WorkingConditions and Job Satisfaction on EmployeePerformance of Non-formal EducationInstitutions in East Java, Journal ofManagement Applications, Vol. 4, No. 3, pp.441 – 420.[20]www.glassdoor.com[26][21]J Hasibuan, SP Malay. 2005. HumanResource Management. Jakarta: PT. EarthLiterature.[22]Reed Hastings, Erin Meyer. 2020. No RulesNetflix Rules and the Culture of Reinvention.New York: Penguin Press.Khan, Nadeem Shiraz (2011), The Impact ofWork Content, Working Conditions, CareerGrowthonEmployeeMotivation,Interdisciplinary Journal Of ContemporaryResearch In Business, July, vol. 3, No. 3. PP.1428 – 1434.[27]Ratnasari A, Satvikarani, Sanjaya RB.(2020). Upaya pemungutan pajak terhadapNetflix yang masih belum berbadan usahatetap. DIVERSI: Jurnal Hukum. Volume 6Nomor 2.[23]Gobel, Hussein. (2006), Effect ofCompensation Factors, Working Conditions,Employee Development and Rewards onHotel Employee Motivation in Biak City,Papua, Journal of Management Applications,Vol. 3, No. 3, pp. 228 – 234.397
Netflix arrived and officially launched its service in Indonesia on Friday, February 5, 2016. Netflix subscriptions start at Rp. 109,000 for the basic package and go up to Rp. 169,000 for the premium plan [5]. In 1999, Netflix started its business activities by providing DVD rental services. Unlike the DVD
