Netflix is a company who has found success in a very competitive and changing market. Many attribute their success to the quality products and services; however the mechanistic management style has been a key player. The company implemented a highly complex structure, with a clear division of labor, hierarchical structure, and member task specialization. Netflix’s formalization established organizational activities, and decision making is governed by a system of organizational rules and procedures. And lastly, the company’s centralization established their form of a hierarchy of authority and a tight chain of command. The leadership practices of Reed Hastings has created an environment of high performance, unique organizational culture, and an effective labor-management relation.

Max Weber’s view of the bureaucracy of Classic management describes the practices that Netflix management has chosen to implement. “Weber believed that an organization based on rational authority would be more efficient and adaptable to change because continuity is related to formal structure and positions rather than to a particular person, who may leave or die” (Daft, 2011). According to Weber’s position, rationality within an organization means that employee advancement and selection is dependent more on the technical qualifications and less on who you know. And such qualifications can be obtained through proper training and experience. Organizations turn to written rules and records based on procedures and rules that are impersonal and given to all employees uniformly. The organization depends on a hierarchy where each position is under the authority of a higher one. The success of the manager is not a popularity contest, but more so dependent upon the power invested in their position.

The mechanistic management style of Reed Hastings has directly aided in the unique organization culture, and ultimately the high performance of the company. The expectation of the management and CEO of Netflix expect employees to operate with an adult-like attitude. “If you’re careful to hire people who will put the company’s interests first, who understand and support the desire for a high-performance workplace, 97% of your employees will do the right thing” (McCord, 2014). Also, adult-like attitude means the individuals address issues with their manager, peers, and subordinates.

Hastings passes his vision onto his management staff and allows them the freedom to implement it in the way they feel best. “Donald Rumsfeld, the former defense secretary, once famously said, “You go to war with the army you have, not the army you might want or wish to have at a later time.” When I talk to managers about creating great teams, I tell them to approach the process in exactly the opposite way” (McCord, 2014). In a fast changing environment, if a member doesn’t fit in their existing position, managers needs to find a better fit for them. The company allows the employee an opportunity to thrive, and if a position is not correct, it is important to find one where they can excel.

The CEO Reed Hastings unique management style shows that he is a leader who hires the best then moves aside. Netflix established a laid-back culture that allows employees to make their decisions, however, encourages smart ones. The unique perks provide an unlimited number of vacation days; employees can structure their compensation packages and no clothing policies. The management’s decision is to create an ideal workspace that promotes excellence in quality, and a highly productive environment. “In the case that employees do not live up to this high standard, Netflix provides large severance packages for quick termination” (Kaltschnee, 2007). They give the opportunity to talented employees, and when they fail to live up to the expectation, Netflix has to find new talent who can add to the culture.

The management practices also place significant value on stunning colleagues and how important they are to the company. “Great workplace is not daycare, espresso, health benefits, sushi lunches, nice offices, or big compensation, and [they] only do those that are efficient at attracting stunning colleagues” (Siegler, 2009). Netflix’s main priority is to accumulate a phenomenal work group. Hastings also looks for nine values with every member they add to their fast growing team. “These traits are judgment, impact, curiosity, innovation, courage, passion, honesty, and selflessness” (Siegler, 2009). Netflix culture allows they value values, and this is the core of their management’s priority. The core values of the company are known by all employees, and noncompliance is not an option. The basic values the management tries to build upon it workplace efficiency, an emphasis on large salaries over bonuses, retention practices, and best management practices. Netflix has taken all of these attributes to build a sustainable work atmosphere.

The leadership practices of Reed Hastings has created an environment of high performance, unique organizational culture, and an effective labor-management relation. Reed Hastings has made management decisions that have maximized the productivity and overall success of the company. The priority for the company was to give the employees the freedom to grow and thrive. They have benefited substantially from their mechanistic management style. Netflix believes that adults should be able to act and perform in an adult manner and that the employees of all levels should have the freedom to individuality. Mandating the company’s visions and values, allows employees to contribute on a much higher level than if they were micromanaged. The success of Netflix is directly a result of the mechanistic management style and creation of a highly effective and complex structure.