Netflix and Viacom CBS: Comparative Analysis Term Paper

Introduction

Organizational culture and structure are integral because they affect performance. They are also strategic tools that can be used to differentiate between organizations (Özşahin & Yürür, 2018). When compared, Netflix and Viacom CBS’ culture and structure have similarities and differences (Kretschmer & Khashabi, 2020; Daidj, 2016). The first similarities in the products they provide to their clients globally. The two firms provide entertainment artifacts such as TV shows, movies, documentaries and many more. The ethical elements in the two cultures are the aspect of honesty, empathy, and inclusion. However, the difference comes in the values of the firms and the type of organizational structure used. Netflix uses a unitary or functional organizational structure, while Viacom CBS uses a vertical structure.

Similarities and Differences of Netflix and Viacom CBS

Netflix and Viacom CBS are some of the leading streaming service providers with a large customer base across the globe. The two organizations have similarities and differences in their organizational culture. For instance, they offer the same artifact to their customers across the globe (Netflix, 2021; Viacom CBS 2021). The firms provide a wide variety of TV shows, movies, documentaries, and other entertainment services. Apart from the artifacts, the two firms share values such as innovation, integrity, and inclusivity. However, Netflix has other values such as judgment, passion, selflessness, impact, and communication, while additional values for Viacom CBS include determination, collaboration, agility, and adaptability.

Although the two firms have different organizational structures, some elements are similar. Netflix has adopted a unitary organizational structure, while Viacom CBS uses a vertical structure (Kretschmer & Khashabi, 2020; Daidj, 2016). This difference is due to a need to achieve organizational objectives, desire for effective change management, and efficiency. In these structures, the organization shares some similarities, especially in the top leadership and the existence of functional groups. The top-most leader is a chief executive officer (CEO) in both organizational structures. Therefore, there are similarities and differences in the organizational culture and structure of Netflix and Viacom CBS.

Organizational culture

Artifacts

Organizational culture and structure are important because they influence performance. They are also strategic tools that play an integral role when comparing organizations. Netflix and Viacom CBS are companies that majors in delivering content to audiences across platforms globally. They provide streaming services to their customers in the market. Netflix’s prominent artifacts are TV shows, movies, anime, documentaries, and other internet-connected devices (Netflix, 2021). In addition, the company provides a platform for a variety of TV shows across the globe. Similarly, Viacom CBS is one of the most important and extensive television and film archives in the entertainment industry. Viacom CBS provides clients on five continents with comprehensive production, distribution, and advertising solutions, as well as innovative streaming technology and online video services (Viacom CBS, 2021). The two companies are known for providing streaming services to clients across the globe.

Values

Values are important aspects of organizational culture because it provides a guiding architecture that guides performance and behavior. They act as the guiding principles for employees to perform their operations effectively. For example, Netflix’s key values include decision-making, communication, curiosity, courage, desire, selflessness, innovation, inclusivity, honesty, and impact (Netflix, 2021). On the other hand, the core values of Viacom CBS are optimism and determination, inclusivity and collaboration, and agility and adaptability. In addition, Viacom CBS is committed to cultivating a culture of optimism, bravery, honesty, and empathy (Viacom CBS, 2021). These principles are critical to the effective operation of the two organizations because they ensure that all stakeholders stay focused on the firm’s main goals.

Netflix and Viacom CBS share values such as courage and inclusion. The companies want their employees to speak without any fear. Even though it makes others uncomfortable, people are encouraged to speak their mind when it is in the firm’s best interests. Make difficult decisions without lingering over them, and take calculated chances even when there is a chance of failure. In addition, the two companies have worked hard to create an inclusive culture that encourages cooperation and inclusion. They employ people from various backgrounds and cultures; thus, it is critical to interact with people from different origins and cultures. The two companies are working towards fostering an inclusive workplace.

Core assumptions

Core assumptions are the values that employees in an organization take for granted to the point where they become assumptions. Netflix does not have core assumptions because the employee highly respects organizational values (Netflix, 2021). The employees at this organization understand and practice all the values set by the organization. However, things are different at ViacomCBS because there are some basic assumptions. For example, the employees do not respect the value of innovation even though it is listed as one of the values. This explains why ViacomCBS moved to increase innovation in 2018 (Viacom CBS, 2021). Thus, although Netflix has no core assumptions, ViacomCBS has core assumptions like innovation.

Ethical and Positive Elements

Netflix

The first ethical element in Netflix’s culture is the value of honesty. Netflix believes dishonesty and politics hurt performance and productivity (Netflix, 2021). Instead of being political, they claim that one ought to be recognized for transparency, condor, and authenticity. They are supposed to refrain from saying anything behind other people’s backs. It is not impolite to freely and honestly admit faults. In addition, the organization focuses on creating an environment where everyone is respected regardless of their social standing or personal differences.

The second ethical element in Netflix’s culture is the value of selflessness. This value is characterized as caring more about other people’s needs and desires than one’s own. Self-centeredness is not tolerated at Netflix, and people should not focus solely on personal accomplishments because it goes against the Netflix spirit (Netflix, 2021). People should prioritize what is great for Netflix over their interest. Keep an open mind and look for fresh ideas. Aside from that, set aside some time to assist people in the community. It is also critical for Netflix employees to openly and proactively exchange knowledge. Therefore, selflessness is an important ethical aspect that organizations should embrace.

The third ethical aspect is the value of judgment, which is important during decision-making. Netflix’s corporate culture places a high emphasis on how decisions are made within the company (Netflix, 2021). Even in the face of uncertainty, people are urged to make sound decisions. Rather than treating the symptoms of a problem, the emphasis should be on determining the root cause. Employees are encouraged to think strategically and state clearly what they intend to do and what they do not intend to do (Netflix, 2021). They should not base their conclusions solely on feeling rather than fact. Therefore, they should make long-term decisions rather than short-term ones.

The other important element is a culture of inclusivity, which involves embracing people from various backgrounds. Netflix has worked hard to create an inclusive culture that encourages cooperation and inclusion (Netflix, 2021). The company employs people from various backgrounds and cultures; thus, interacting with people from different origins and cultures is critical. When individuals consider a variety of viewpoints, they can make better selections. The employees at this organization are encouraged to overcome preconceptions rather than be kept captive. Also, at Netflix, marginalizing people is not an option, and everyone should ensure that no one around them is marginalized.

Viacom CBS

The first ethical value presented in the organization’s culture is honesty. Viacom CBS encourages a culture of openness because they symbolize an individual’s desire to express themselves, even if it is difficult or unpopular (Viacom CBS, 2021). Honesty is described as a willingness to listen and address issues before all evidence has been completely analyzed. It could also be understood as keeping their word, honoring promises, and delivering on time. The company is motivating its employees to behave with integrity at all times. The employees are expected to make honest decisions in and outside the workplace.

The second ethical aspect is inclusion, which involves embracing people from different cultures. Employees and their work at Viacom CBS are drawn together and driven ahead by a shared set of principles. These principles coexist alongside the greatest business activities and are influenced by the enthusiasm, innovation, and integrity that people around the world bring to work daily (Viacom CBS, 2021). In addition, the organization believes that diversity help in improving productivity and performance. As a result, everyone at Viacom CBS is encouraged to create a conducive environment for diversity. Therefore, inclusion is an important ethical concept that all organizations across the globe should embrace.

The Organizational Structure of Netflix and Viacom CBS

There are some similarities in the organizational structure of Netflix and Viacom CBS. Firstly, there is a hierarchy in their structure in both organizations, representing authority. The chief executive officer (CEO) of the company is at the top of the hierarchy. The organizations have a coordinated chain of command as a result of successful interaction with numerous stakeholders and staff members, as well as the use of technology in various business activities (Kretschmer & Khashabi, 2020; Daidj, 2016). Second, people in the two organizations are classified according to their services. The two firms’ three basic divisions are functional, regional, and marketing teams. CEO, content, communication, talent, finance, legal, and other departments are all part of the functional area.

Despite the similarities, there are some differences in the organizational structure of Netflix and ViacomCBS. Netflix Inc. has a unified organizational structure that includes a level for executive leadership and overall direction (Kretschmer & Khashabi, 2020). However, in comparison to many firms with divisional organizational structures, such as ViacomCBS, this company’s design is relatively flat. ViacomCBS has a vertical structure, where people are grouped based on the services they provide (Daidj, 2016). The company has divisions, each with its accountants, marketers, and other roles. The divisions in this company are based on various geographical areas.

The organizational structures of the two companies have different levels of decisions of decision-making. Top executives at Netflix’s corporate headquarters make key decisions for the entire firm’s streaming operations (Kretschmer & Khashabi, 2020). For example, the CEO of Netflix is responsible for making decisions for all operations. On the other hand, at ViacomCBS, a top executive at the corporate headquarters does not make all the decisions (Daidj, 2016). In this organization, some of the decisions are made at the divisional level to improve efficiency. For instance, the CEO of each division is responsible for the effective management of operations with the division. Decision-making is an important process in an organization and should be considered when selecting organizational structure.

The organizational structure of Netflix is relatively flat, while that of Viacom CBS is vertical. A flat organizational structure indicates that the organization has few levels of management (Kretschmer & Khashabi, 2020). Due to the absence of intermediate management, more authority, such as decision-making functions, is transferred to employees. Viacom CBS, on the other hand, has a vertical organization, a top-down management style that resembles a pyramid (Daidj, 2016). The organization has established a hierarchy, with the greatest level of authority at the apex, trailed by management positions and regular employees. For Viacom CBS, its vertical structure is based on geographical divisions with its management.

The Reasons for The Similarities and Differences in The Culture and Structure

The difference in organizational structure is the need to achieve corporate goals. Netflix adopted a unitary organizational structure to ensure its objectives are met. Organizational structures enable the company and its management to fulfill or achieve its goals (San Cristóbal et al., 2018). An organization’s aims are in line with its overall strategy. Cost reduction, imitations, and innovation are the three primary components of an organizational strategy. The organization wanted to ensure that there was one center of command. Viacom CBS adopted a vertical structure to promote innovation within the division. The company wanted to ensure that divisional leaders could make their own decisions to foster creativity.

The other factor for the variation is to achieve the intended efficiency of operations. Organizational structure can influence operations within an organization (San Cristóbal et al., 2018). Netflix believed that having a flat or unitary organizational structure would enable function effectively. For example, the structure would enable them to make faster decisions linked with the efficiency of operations. However, Viacom CBS believed that having a vertical structure would help them achieve efficiency. Vertically structured businesses have clear power structures, allowing for rapid decisions and better work assignments (San Cristóbal et al., 2018). Employees in a vertical organization have clearly outlined tasks and responsibilities, which reduces uncertainty and promotes a high level of productivity.

The pace of change also led to the difference in the organizational structure at Netflix and Viacom CBS. The structure of an organization impacts the speed of implementing a change (San Cristóbal et al., 2018). Netflix chooses a flat structure to promote fast decision-making, which is integral during change management. With few channels of communication, the organization can effectively reach its stakeholders and implement a change. However, a vertical structure used by Viacom CBS is likely to reduce the pace of change management. It takes time for a change to be affected because all the divisional leaders are engaged.

The other factor for the similarity in the two organizational structures is to promote specialization. Organizations adopts specialization to increase performance, due to the fact that it enables employees to focus on their skills and experience. The structures have a functional group based on the type of services offered by the organization (San Cristóbal et al., 2018). A functional organization’s most evident advantage is that it ensures a consistent degree of departmental proficiency by grouping workers by skill. This is particularly true in large corporations when departments have many functional levels. For instance, a financial group is meant to handle the organization’s financial issues, and a human source group manages employees. A flat and vertical organizational structure enables the group to focus on their area of specialization.

The Fit Between Structure and Culture in Each of the Two Companies

Netflix Corporation

Netflix’s organizational structure fits its culture because they all enhance communication. One of the most important values of Netflix is communication. Netflix’s culture encourages communication since effective communication leads to order to maximize efficiency (Netflix, 2021). Employees should be fluent in both writing and speaking. People should listen to those on the team and know what they are saying before reacting. Similarly, Netflix’s organizational structure promotes open communication between staff members. Since communication is top-down, employees are expected to listen attentively to the direction offered and respond effectively when needed. Therefore, the culture and structure of Netflix have a positive relationship because it promotes effective communication.

The structure and culture of Netflix majors on making an impact in the industry. The employees at Netflix are required to be ready to have an impact. It is critical to keep a high level of performance to earn the respect of Netflix colleagues (Netflix, 2021). As a result, employees are expected to go above and beyond conventional standards in terms of performance. Their focus should be on the outcome rather than the process. In the same manner, the organizational structure requires employees to impact their divisions. They are expected to work effectively in their functional groups and achieve the set goals. Thus, the structure and culture are designed to impact an organization.

Both the structure and culture are focused on promoting inclusivity in Netflix. Inclusivity is an important aspect of contemporary organizations because it is related to productivity. Netflix has worked hard to create an inclusive culture that promotes inclusion and collaboration (Netflix, 2021). People from many origins and cultures work at Netflix; thus, interacting with people from different backgrounds or cultures is critical. When several points of view are considered, better decisions can be made. The organizational structure of Netflix supports this because it creates a platform that supports inclusion. For instance, geographical divisions enable the organization to hire people from different regions and cultures.

Viacom CBS

There is a fit between Viacom CBS’ organizational structure and culture. They support the creation of inclusivity in the organization. Viacom CBS is committed to making its workplace diverse through its corporate social responsibility (Viacom CBS, 2021). However, to create such an environment, there is a need for a supportive organizational structure. The vertical organizational structure used in the organization supports inclusivity due to the freedom of divisional leaders to make effective decisions. This helps cut through the middle management positions, eliminating bureaucratic layers. In addition, with this structure, regional leaders can decide to hire locals to perform operations, thereby promoting inclusivity.

Moreover, the structure and culture of Viacom CBS fit because they all promote innovation and creativity. As a tech-based company, innovation is integral for its success in the industry (Viacom CBS, 2021). This explains why the organization’s culture is geared towards increasing the capability to innovate. To achieve this, a vertical organizational structure was adopted by the organization. One of the attributes of this structure is the existence of formal control within the divisions. This type of control increases innovative performance by coordinating different functional units. Therefore, the integration of organizational structure and culture is effective in promoting innovation.

Conclusion

The similarities between Netflix and Viacom CBS are more than the differences. The two organizations operate in the media industry and provide almost similar products to their clients across the globe. They both provide streaming services and digital video content. In addition, the two firms share important values like honesty, inclusion, collaboration, and many more. On the other hand, Netflix tends to focus more on innovation than Viacom CBS. The employees of Netflix have been made to understand the role of innovation in the effective performance of the organization. The high level of disruption in the media industry due to technological changes is the driving force for creating an innovative culture. Furthermore, a culture of inclusion in an organization is aimed at increasing performance. The desire to remain relevant and perform effectively is the reason for the existence of the culture in the two organizations. Thus, the two organizations are more similar in their operations than they are different.

Despite the fact that the two companies have very distinct organizational structures, there are some similarities. Viacom CBS has a vertical organizational structure, whereas Netflix has a unitary structure. The elements that contribute to this gap are the need to fulfill corporate objectives, the desire for effective change management, and the desire for efficiency. Corporate objectives of an organization define the type of organizational structured adopted. For example, the unitary structure supports a rapid change management process at Netflix. The organization bears several similarities in these structures, particularly in terms of top leadership and functional groupings. The highest-ranking official in both structures is a chief executive officer (CEO). One of the factors for these similarities is the need to increase productivity through effective control and decision-making. Therefore, the two organizations should focus on making sure that their employees understand the culture to achieve the intended objectives.

References

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San Cristóbal, J. R., Fernández, V., & Diaz, E. (2018). An analysis of the main project organizational structures: Advantages, disadvantages, and factors affecting their selection.Procedia computer science, 138, 791-798. Web.

Viacom CBS. (2021). ViacomCBS Underscores the Power of Partnership, Content and Capabilities During Virtual Upfront Presentation. ViacomCBS Inc. Web.