Reference #88: How Netflix Reinvented HR

Industrial firms thrive on reducing variation. Less variation means fewer manufacturing errors and more efficient processes. Creative firms, by contrast, thrive on increasing variation. More variation leads to innovation.

Society has many more years of experience in managing industrial firms, hence many HR policies are created for that paradigm.

Managing a creative firm is quite different; it requires new HR practices.

McCord. How Netflix Reinvented HR, 2014. Reprinted in Reinventing HR, 2019. (25)

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