Answer – 1: Analysis of Hastings’s leadership style in context with Big Five Model for personality leadership:
Leadership and Strategy are the important determinants for the success of the business. Both are correlated with each other. One can define business as series of action to be taken to achieve the desired business goal. The business goal is the future desired position as highlighted by the vision statement. Management forms various strategies to achieve the visionary goal. The strategy is the roadmap which takes the business organisation ahead towards the visionary goal. Here it should be noted that well drafted strategy may fail if the same is not implemented in proper way. Hence management needs to implement the strategy in more proper and effective manner. Here the role of leader comes in picture. The leader is the person who leads the organisation ahead by taking all stakeholders together. This is a very crucial task. It requires the ability to take work done from the other. According to management theory, the leader must have conscientiousness, agreeableness, extraversion, openness and neuroticism. As the leadership is personal quality, the above elements helps the leader to take the management ahead. In context with the Netflix, Hastings’s leadership quality and his ability to forecast are the key determinant of organisation’s success. Hastings’s participate style of leadership has contributed more in development of company. While managing pure software company, Hastings used to employ autocratic style of leadership in which he exercise authority over employee to get the work done. Being leader one need to take work done from other in a manner that person from work is to be taken must enjoy the work. This will create positive environment in the organisation. However the way in which Hastings used to take work done in his previous organisation i.e pure software company, is de-motivating in nature. He used to scold employee if the idea suggested by employee found not workable. (SARAH E. STRANG, 2004)
While employing the business strategy in Netflix, Hastings has changed the style of leadership from autocratic to participative. His leadership style evidences extraversion, where he used to take part in the business planning actively with full of energy and enthusiasm. He seems more talkative with his human assets i.e his workforce. Moreover with the implementation of participative style of leadership, he has started listing to suggestion and innovative idea of his employee. Instead of scolding employee for his non workable plan, he used to appreciate his participation and ask the employee to research more to make it workable. This has motivated workers towards their work. This evidences the agreeableness quality of the leader. Moreover he has tried to manage the organization in more efficient, planed and organized manner. He has ability to forecast the upcoming changes and in this line, he used to make necessary changes in his business model. His ability of forecasting and thinking beyond the solder of competitors, results into planned development of Netflix. This evidences conscientiousness quality of successful leader. Moreover he used to make more innovative product that suits the need to future generation. In this context he used to motivate his employee for research and development. With the help of research and development, the company has successfully offered live streaming instrument to its customer. His ability to forecast, curiousness, and imagination indicates the openness quality of successful leader. (Paul T. Bartone, 2009)
Hence to conclude we can say that, the change in leadership style from autocratic to participative along with adoption of conscientiousness, agreeableness, extraversion, openness and neuroticism where he led the organisation taking all stakeholders ahead is the major reason for success of Netflix.
Answer -2: Analysis of Style of Leadership used at Pure Software Company and at Netflix:
The success of the business depend management’s ability to manage the business operation. The business operation is aggregation of various functions to be performed with the help of human forces and technology. Hence the management must have ability to manage the both the resources namely human resources and technology. However the management of human resources is more crucial task compare to management of technological resources. This is because the human beings are social animal and their ability to work is influenced by various social, economical and cultural aspect of environment. Hence the management needs to develop the ability to take work done from employees in effective and efficient manner. The ability to take the work done from other in planned manner is termed as quality of leadership. According to management theory, there are two popular style of leadership namely autocratic and participative. There is no rule in the management which provides the guidelines for application of a particular theory at particular situation. Rather, the successful leader is one who takes the business ahead with the appropriate use of both the technique. This is because management many times required to use command over employee in order to get the work on time and in predefined manner. At the same time active participation of employee needs to be employed in order to motivate them and to provide good work culture. A good leader always takes the work in manner that motivates the worker and provides highly satisfaction to both project management and employee. At a time considering the requirement, project leader will use the authority or polite social relation to get the work done from employee. On analysis of case, we come to know that Hastings has employed different style of leadership for his both business operation. (Paul T. Bartone, 2009)
While managing the business of pure software company, he used to employee autocratic style of leadership. Under the autocratic style of leadership, the management will exercise authority to get the work done. Under this style of leadership the participation of employee in the development of organisation is negligible. The organisation treats his employee as medium of achieving the goal. This will ultimately discourage the employee. The same can be seen in the leadership style of Hastings. In his pure software company he used to criticize employee for non workable business idea, he tries to embarrass employee with his nonverbal eyes. This type of behavior from the leader de-motivates the employee for the working which directly influences their effectiveness of working. This will affect the growth of organisation. When he sold the pure software company, Hastings realizes his mistake in managing the organisation. (Nadeem Bhatti , 2012)
On the other hand while managing the business of Netflix, he has used participative style of leadership. In the participative style of leadership, the leader will encourage the active participation of employee in the development of organisation. This can be seen in the working style of Hastings. He used to encourage the employee for new business ideas, he listen each and every idea actively. He appreciates the efforts even if the idea found practically not workable. This will ultimately motivates employee towards work and enhance their efficiency. The efficient workforce and quality of leadership can be considered as key success of Netflix. (Celement Bell, 2013)
Answer -3: Analysis of various elements like quality of leadership, delegation of power, effectiveness of business network, ability of management to negotiate and organizational internal politics:
The business is process of managing the series of action performed by technology and human force. This business process is influenced by various elements namely quality of leadership, delegation of power, effectiveness of business network, ability of management to negotiate and organizational internal politics. The above element affects the business growth either positively or negatively. While examining the case of Netflix, it seems clear that the quality of leadership, the innovation and ability to forecast are one of the major reasons for success of business. The data given is the case evidences the use of proper managerial power by the management team. Hastings, as effective leader, has exercised required extent of power to manage the business operation. However compare to his previous organisation i.e pure software company, his use of power seems less in his present organisation. He used to appreciate participation of employee in the business decision, this evidences that he has made proper distribution of power and responsibility. However the data of the case will not allow us to examine the level of internal organisation politics. According to well accepted management theory, the distribution of power and responsibility results into more organizational politics. This, sometime, becomes harmful for the growth of organisation. Due to development of organizational internal politics, employee used to consider their personal benefits and ego more compare to overall growth of organisation. But, as said above, the data provided in the case are insufficient to examine the extent of internal politics. Under the visionary leadership of Hastings, the Netflix has made drastic expansion of its market. This evidences the ability of management to have proper networking and effective negotiation. The management has successfully negotiated with Epix. Moreover the negotiation with various television channels also seems successful. This has helped the organisation to expand its domestic market share and to secure its strong footprint in various other countries. The management has even successfully recognized the feedback. In the event of negative feedback from the customer, the management has made proper division of organisation in order to avoid more loss. Hence management has successfully responded the feedback. Considering the data, the Hastings must try to continue his style of leadership along with new innovation and research. This will help him to gain more influences as leader. (Nadeem Bhatti , 2012)
Answer – 4: Analysis of communication, feedback, coaching style from pure software to Netflix:
From the analysis of this case, it seems clear that Hastings has changed drastically his style of communicating, giving feedback, and leadership style. In his pure software company he used to criticize employee for non workable business idea, he tries to embarrass employee with his nonverbal eyes. He used to criticize employee at the time of communicating with them. Moreover he used to scold and pass critical comments while giving feedback to employee for their non workable idea. This has lead towards creation to de-motivated work environment. There is no development of thoughts and innovation on the part of employee. The lack of research and innovation becomes the hurdle in the growth of business.
At the same type, while managing Netflix, he used to encourage the employee for new business ideas, he listen each and every idea actively. He appreciates the efforts even if the idea found practically not workable. This will ultimately motivates employee towards work and enhance their efficiency. His way of communication and appreciated feedback has created positive work environment in the organisation. This has given scope for development of more creative and innovative idea. (Celement Bell, 2013)
From the analysis of the data we can conclude that lack of innovation, motivating factor and improper leadership style was major reason for limited development of pure software company at the same time continued research, encouraged participation of workforce and effective leadership are the key reason for dynamic growth of Netflix.
Answer -5: Recommendations for emerging leaders:
In order to manage the business in successful and effective manner, we would like to make following valuable recommendation for emerging leaders:
- A good leader always takes the work in manner that motivates the worker and provides highly satisfaction to both project management and employee. At a time considering the requirement, project leader will use the authority or polite social relation to get the work done from employee. Hence the leader should use both participative and autocratic style of leadership considering the circumstances. This is because adoption of only one may cause negative effective for the organisation. Use of participative style of leadership many times create friendlier environment in which the worker may enjoy more freedom. The lack of fear for work may cause unnecessary delay. Hence there must be implementation of both style of leadership at appropriate level. (Larry C. Spears, 2010)
- The leader must encourage the active participation of employee, for those decisions which affects the working of employee directly. For example, the decision for implementation of change in working style requires more active participation of employee. However in every business decision active participation is not suitable. For example in case key managerial decision, where the elements like confidentiality, time and effectiveness are required, the implementation of participative decision concept is not suitable. Hence considering the natures of decision activate participation policy will be implemented.
- Moreover, as leader one should always encourage and appreciate the employee for his innovative idea even if they seems not workable. Leader must avoid critical comments and energy nature while listing the business idea. (Paul T. Bartone, 2009)
- As leader one need to adopt polite, humble, friendly behavior while taking work done from other.
Celement Bell, 2013, ‘The effects of participative leadership on organizational commitment’, African Journal of Business Management, Vol. 8, pp. 451-459, viewed on 8th January, 2016,
Larry C. Spears, 2010, ‘Character and Servant Leadership: Ten Characteristics of Effective, Caring Leaders’, The Journal of Virtues & Leadership, Vol. 1. Pp. 25-30, viewed on 8th January, 2016,
Nadeem Bhatti , 2012, ‘The Impact of Autocratic and Democratic Leadership Style on Job Satisfaction’, International Business Research, Vol. 5, viewed on 8th January, 2016,
Paul T. Bartone, 2009, “Big five personality factors, hardiness, and social judgment as predictors of leader performance” viewed on 8th January, 2016, http://www.defence.gov.au/ADC/Docs/CDLE/CDLE_120329_Bartoneetal2000BigFivePersonalityandLeadership.pdf
Robert R. McCrae, n.d., “An Introduction to the Five-Factor Model and Its Applications”, viewed on 8th January, 2016,
SARAH E. STRANG, 2004, “Big Five Personality and Leadership Developmental Levels as Predictors of Leader Performance”, viewed on 8th January, 2016, available at https://getd.libs.uga.edu/pdfs/strang_sarah_e_200608_ms.pdf
| January 16, 2019