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ASSIGNMENT SPECIFICATION
Programme:
BABS
Module Level (3,4,5 or 6):
5
Module:
Human Resource Management
Module code:
SBLC5000
Module Assessment (%):
Assignment
1
– 50%
Assignment 2- 50%
Assignment No(s):
Assignment 1: Case study analysis
Assignment 2: Individual Report
Assignment Title(s):
Netscape’s Work Culture
Lecturer:
Apsara Hewage
Internal Verifier:
Anand Walser
Hand Out Date:
04/12/
20
17
Submission deadline:
Feedback deadline:
19/02/2018
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Referencing: |
In the main body of your submission you must give credit to authors on whose research your work is based. Append to your submission a reference list that indicates the books, articles, etc. that you have read or quoted in order to complete this assignment (e.g. for books: surname of author and initials, year of publication, title of book, edition, publisher: place of publication). |
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Disclosure: |
Please include the following statement on the title page of the submitted assignment, followed by your name: I declare that this assignment is all my own work and that I have acknowledged all materials used from the published or unpublished works of other people. All references have been duly cited. |
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Turnitin: All assignments must be submitted to Turnitin unless otherwise instructed by the Lecturer. Note: the Turnitin version is the primary submission and acts as a receipt for the student. Late submission of the electronic version of the assignment will result in a late penalty mark. Penalties for late submission: Up to one week late, maximum mark of 50%. Over one week late , Refer. Only the UWTSD Extenuating Circumstances Panel may grant an extension. |
YES |
X |
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NO |
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Learning Outcomes tested (from module syllabus) |
Assessment Criteria to achieve each outcome a student must demonstrate the ability to: |
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1. Appreciate the distinction between Human Resource Management and Personnel Management by analysing personnel and HRM models. |
· An individual piece of coursework which will test the student’s ability to distinguish Personnel Management and Human Resource Management practices. |
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2. Understand the impact of personnel, structural and cultural strategies on organisational performance.
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· Case will test the ability of the student in evaluating the impacts of the corporate culture, HRM practices and HR issues on organisational performance. |
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3. Draw on knowledge from cognate modules to develop understanding of the practical aspects of human resources issues confronting managers. |
· Case which will test the student in the knowledge of concepts relating to the impacts of a merger with another company to the work culture and challenges to the employees and the management. |
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4. Explore the relationship between corporate strategy and human resource strategies |
· An individual piece of coursework which will test the student in the knowledge of concepts relating to corporate strategic decisions such as a merger and human resource strategies. |
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TASK DESCRIPTION – ASSIGNMENT 1 – (50% Individual Case Study)- 2, 500 words |
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BACKGROUND / INTRODUCTION |
Appendix 1 contains a Case Study of the company NETSCAPE. Analyse this case study and identify the Human resource Management problems faced by Netscape after its merger with AOL
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TASKS& GUIDELINES |
Based on the given case study you need to carry out the following tasks:
1) How would you describe Netscape’s Work Culture prior to the merger with AOL and how did it change?
2) After merging with AOL, what specific challenges and problems impacted upon Netscape’s employees and managers?
3) What solutions would you recommend to resolve these issues?
Guidelines:
In the given Case study analysis:
· Relate the theories to a practical situation; for example, apply the ideas and knowledge discussed in the coursework to the practical situation at hand in the case study.
· Identify the problems and select the major problems in the case
· Recommend the best solutions to these major problems
· Detail how this solution should be implemented
· Assignment should be presented in the form of a report and not an essay.
· Assignments will be graded on the basis of:
i. Research done
ii. Analysis of the facts collated
iii. Position taken and
iv. The justification of the position
· All research must be referenced. A Reference List and a Bibliography MUST be attached. Harvard system of referencing MUST be followed.
Please see marking criteria given in page number8.
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LENGTH REQUIRED |
25
00 words +/- 10%. Any deviation from this will be penalised.
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TASKS |
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A short summary of the case study scenario |
200 words |
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Explain the Case study background, the statement of the problem, research questions and aims and objectives. |
300 words |
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Description of the situation (Case Brief) |
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Analysis of the case (should be backed by theoretical perspectives seen from the module) |
500 words | |||
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Findings from the analysis (should be backed by theoretical perspectives seen from the module) |
600 words |
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Solutions to the problem and issues. Recommendations (should be backed by theoretical perspectives seen from the module) |
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TOTAL |
2500 words |
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FORMATTING AND LAYOUT |
Please note the following when completing your written assignment:
1. Writing: Written in English in an appropriate business/academic style
1. Focus: Focus only on the tasks set in the assignment.
1. Length: 2500 words +/- 10%. Any deviation from this will be penalised.
1. Formatting: Typed on A4 paper in Times New Roman or Arial font 12 with at least 2.5 centimetre space at each edge, double spaced and pages numbered.
1. Document format: Report
1. Ensure a clear title, course, and name or ID number is on a cover sheet and a references list and bibliography using Harvard referencing throughout is also provided.
1. Research: Research should use reliable and relevant sources of information e.g. academic books and journals that have been peer reviewed. The research should be extensive.
The use of a range of information sources is expected – academic books, peer reviewed journal articles, professional articles, press releases and newspaper articles, reliable statistics, company annual reports and other company information. All referencing should be in Harvard style.
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TASK DESCRIPTION – ASSIGNMENT 2–(50% Individual Report)- 2,500 words |
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TASK |
You are required to produce a report, stating the Human Resource Management strategies that can be undertaken to resolve the issues which you identified in the Assignment 1.In particular, you should consider and evaluate:
· employee recruitment and retention,
· training and development,
· changing work practices and conditions,
· benefits and rewards.
LENGTH REQUIRED
2500 words +/- 10%. Any deviation from this will be penalised.
Your report should typically include:
TASKS
Executive Summary
200 words
Introduction: Background, scope and the purpose of the report.
600 words
Analysis:
Identify and analyse different types of human resource strategies which are ideal to these scenario under discussion. You must also critically evaluate possible solutions to solve the identified problems. (should be backed by theoretical perspectives seen from the module)
1400 words
Conclusion: the main conclusions/recommendations, drawn from the analysis provided.
300 words
References: Listing of all sources according to the Harvard standard.
TOTAL
2500 words
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GUIDELINES |
1. Assignment two should be presented in the form of a report, NOT an essay.
2. Assignments will be graded on the basis of:
I. Research done
II. Analysis of the facts collated
III. Position taken and
IV. The justification of the position
3. All research must be referenced. A Reference List and a Bibliography MUST be attached. Harvard system of referencing MUST be followed.
Please see marking criteria given in page number9.
FORMATTING AND LAYOUT
Please note the following when completing your written assignment:
1. Writing: Written in English in an appropriate business/academic style
2. Focus: Focus only on the tasks set in the assignment
3. Length: 2500 words +/- 10%. Any deviation from this will be penalised.
4. Formatting: Typed on A4 paper in Times New Roman or Arial font 12 with at least 2.5 centimetre space at each edge, double spaced and pages numbered.
5. Document format: Report
6. Ensure a clear title, course, and name or ID number is on a cover sheet and a bibliography using Harvard referencing throughout is also provided.
7. Research: Research should use reliable and relevant sources of information e.g. academic books and journals that have been peer reviewed. The research should be extensive.
The use of a range of information sources is expected – academic books, peer reviewed journal articles, professional articles, press releases and newspaper articles, reliable statistics, company annual reports and other company information. All referencing should be in Harvard style.
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marking criteria and Student FEEDBACK – Individual Case Study 50% |
This section details the assessment criteria. The extent to which these are demonstrated by you determines your mark. The marks available for each criterion are shown. Lecturers use a similar format to comment on the achievement of the task(s), including those areas in which you have performed well and areas that would benefit from development/improvement.
Common Assessment Criteria Applied
Marks available
Marks
Awarded
1. Research-informed Literature
Extent of research and/or own reading, selection of credible sources, application of appropriate referencing conventions.
Use of relevant and credible sources of evidence and literature.
2. Knowledge and Understanding of Subject
Extent of knowledge and understanding of concepts and underlying principles associated with the discipline.
Ability to demonstrate the knowledge and understanding of concepts and underlying principles associated with the subject area.
20
3. Analysis
Analysis, evaluation and synthesis; logic, argument and judgement; analytical reflection; organisation of ideas and evidence
Breadth and depth of critical analysis of the scenario, issues and impacts.
20
4. Practical Application and Deployment
Deployment of methods, materials, tools and techniques; application of concepts; formulation of innovative and creative solutions to solve problems.
Ability to apply relevant theories, models and concepts to the scenario under discussion.
20
5. Skills for Professional Practice
Attributes in professional practice: individual and collaborative working; deployment of appropriate media; presentation and organisation.
Appropriate use relevant methodologies and high level of professionalism showcased throughout the coursework.
100
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Assignment Mark (Assessment marks are subject to ratification at the Exam Board. These comments and marks are to give feedback on module work and are for guidance only until they are confirmed. ) |
Late Submission Penalties (tick if appropriate) |
% |
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marking criteria and Student FEEDBACK – Individual Report 50% |
This section details the assessment criteria. The extent to which these are demonstrated by you determines your mark. The marks available for each criterion are shown. Lecturers will use the space provided to comment on the achievement of the task(s), including those areas in which you have performed well and areas that would benefit from development/improvement.
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Marks
awarded |
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2. Knowledge and Understanding of Subject |
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3. Analysis Analysis, evaluation and synthesis; logic, argument and judgement; analytical reflection; organisation of ideas and evidence |
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| Breadth and depth of critical analysis of the scenario, issues and impacts. |
25 |
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4. Practical Application and Deployment Deployment of methods, materials, tools and techniques; application of concepts; formulation of innovative and creative solutions to solve problems. |
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| Ability to apply relevant theories, models and concepts to the scenario under discussion. | |||
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15 |
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Up to one-week late |
| Over one week late |
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GUIDANCE FOR Students IN THE COMPLETION OF TASKS |
NOTE: The guidance offered below is linked to the five common assessment criteria above.
1. Research-informed Literature
Your work must be informed and supported by scholarly material that is relevant to and focused on the task(s) set. You should provide evidence that you have accessed a wide range of sources, which may be academic, governmental and industrial; these sources may include academic journal articles, textbooks, current news articles, organisational documents, and websites. You should consider the credibility of your sources; academic journals are normally highly credible sources while websites require careful consideration/selection and should be used sparingly. Any sources you use should be current and up-to-date, mostly published within the last five years or so, though seminal/important works in the field may be older. You must provide evidence of your research/own reading throughout your work, using in-text citations in the main body of your work and a reference list that is alphabetical at the end of your work. Please use the Harvard referencing system.
2. Knowledge and Understanding of Subject
Your work must demonstrate the growing extent of your knowledge and understanding of concepts and underlying principles associated with the subject area. Knowledge relates to the facts, information and skills you have acquired through your learning. You demonstrate your understanding by interpreting the meaning of the facts and information (knowledge). This means that you need to select and include in your work the concepts, techniques, models, theories, etc. appropriate to the task(s) set. You should be able to explain the theories, concepts, etc. meaningfully to show your understanding. Your mark/grade will also depend upon the extent to which you demonstrate your knowledge and understanding; ideally each should be complete and detailed, with comprehensive coverage.
3. Analysis
Your work must contain evidence of logical, analytical thinking, evaluation and synthesis. For example, to examine and break information down into parts, make inferences, compile, compare and contrast information. This means not just describing whatbut also justifying: Why? How? When? Who? Where? At all times, you must provide justification for your arguments and judgements. Evidence that you have reflected upon the ideas of others within the subject area is crucial to you providing a reasoned and informed debate within your work. Furthermore, you should provide evidence that you are able to make sound judgements and convincing arguments using data and concepts. Sound, valid conclusions are necessary and must be derived from the content of your work. There should be no new information presented within your conclusion. Where relevant alternative solutions and recommendations may be proposed.
4. Practical Application and Deployment
You should be able to demonstrate how the subject-related concepts and ideas relate to real world situations or a particular context. How do they work in practice? You will deploy models, methods, techniques, and/or theories, in that context, to assess current situations, perhaps to formulate plans or solutions to solve problems, some of which may be innovative and creative. This is likely to involve, for instance, the use of real world examples and cases, the application of a model within an organisation and/or benchmarking one organisation against others based on stated criteria. You should show awareness of the limitations of concepts and theories when applied in particular contexts.
5. Skills for Professional Practice
Your work must provide evidence of the attributes expected in professional practice. This includes demonstrating your individual initiative and/or collaborative working. You must communicate effectively in a suitable format, which may be written and/or oral, for example, essay, management report, presentation. Work should be coherent and well-structured in presentation and organisation.
| UNDERGRADUATE – COMMON ASSESSMENT AND MARKING CRITERIA | |||||||||||||||||||||||||||||||||||||
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OUTRIGHT FAIL |
UNSATISFACTORY |
SATISFACTORY |
GOOD |
VERY GOOD |
EXCELLENT |
EXCEPTIONAL |
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Assessment Criteria |
0-29% |
30-39% * |
40-49% |
50-59% |
60-69% |
70-79% |
80-100% |
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1. Research-informed Literature Extent of research and/or own reading, selection of credible sources, application of appropriate referencing conventions |
Little or no evidence of reading. Views and findings unsupported and non-authoritative. Referencing conventions largely ignored. |
Poor evidence of reading and/or of reliance on inappropriate sources, and/or indiscriminate use of sources. Referencing conventions used inconsistently. |
References to a limited range of mostly relevant sources. Some omissions and minor errors. Referencing conventions evident though not always applied consistently. |
Inclusion of a range of research-informed literature, including sources retrieved independently. Referencing conventions mostly consistently applied. |
Inclusion of a wide range of research-informed literature, including sources retrieved independently. Selection of relevant and credible sources. Very good use of referencing conventions, consistently applied. |
A comprehensive range of research informed literature embedded in the work. Excellent selection of relevant and credible sources. High-level referencing skills, consistently applied. |
Outstanding knowledge of research-informed literature embedded in the work. Outstanding selection of relevant and credible sources. High-level referencing skills consistently and professionally applied. |
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Major gaps in knowledge and understanding of material at this level. Substantial inaccuracies. |
Gaps in knowledge, with only superficial understanding. Some significant inaccuracies. |
Evidence of basic knowledge and understanding of the relevant concepts and underlying principles. |
Knowledge is accurate with a good understanding of the field of study. |
Knowledge is extensive. Exhibits understanding of the breadth and depth of established views. |
Excellent knowledge and understanding of the main concepts and key theories. Clear awareness of challenges to established views and the limitations of the knowledge base. |
Highly detailed knowledge and understanding of the main theories/concepts, and a critical awareness of the ambiguities and limitations of knowledge. |
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3. Analysis Analysis, evaluation and synthesis; logic, argument and judgement; analytical reflection; organisation of ideas and evidence |
Unsubstantiated generalisations, made without use of any credible evidence. Lack of logic, leading to unsupportable/ missing conclusions. Lack of any attempt to analyse, synthesise or evaluate. |
Some evidence of analytical intellectual skills, but for the most part descriptive. Ideas/findings sometimes illogical and contradictory. Generalised statements made with scant evidence. Conclusions lack relevance. |
Evidence of some logical, analytical thinking and some attempts to synthesise, albeit with some weaknesses. Some evidence to support findings/ views, but evidence not consistently interpreted. Some relevant conclusions and recommendations, where relevant |
Evidence of some logical, analytical thinking and synthesis. Can analyse new and/or abstract data and situations without guidance. An emerging awareness of different stances and ability to use evidence to support the argument. Valid conclusions and recommendations, where relevant |
Sound, logical, analytical thinking; synthesis and evaluation. Ability to devise and sustain persuasive arguments, and to review the reliability, validity & significance of evidence. Ability to communicate ideas and evidence accurately and convincingly. Sound, convincing conclusions / recommendations. |
Thoroughly logical work, supported by evaluated evidence. High quality analysis, developed independently or through effective collaboration. Ability to investigate contradictory information and identify reasons for contradictions. Strong, persuasive, conclusions, justifiable recommendations. |
Exceptional work; judiciously selected and evaluated evidence. Very high quality analysis, developed independently or through effective collaboration. Ability to investigate contradictory information and identify reasons for contradictions. Highly persuasive conclusions |
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4. Practical Application and Deployment
Effective deployment of appropriate methods, materials, tools and techniques; extent of skill demonstrated in the application of concepts to a variety of processes and/or contexts; formulation of innovative and creative solutions to solve problems. |
Limited or no use of methods, materials, tools and/or techniques. Little or no appreciation of the context of the application. |
Rudimentary application of methods, materials, tools and/or techniques but without consideration and competence. Flawed appreciation of the context of the application. |
An adequate awareness and mostly appropriate application of well established methods, materials, tools and/or techniques. Basic appreciation of the context of the application. |
A good and appropriate application of standard methods, materials, tools and/or techniques. Good appreciation of the context of the application, with some use of examples, where relevant. |
A very good application of a range of methods, materials, tools and/or techniques. Very good consideration of the context of the application, with perceptive use of examples, where relevant. Evidence of some innovation and creativity. |
An advanced application of a range of methods, materials, tools and/or techniques. The context of the application is well considered, with extensive use of relevant examples. Application and deployment extend beyond established conventions. Innovation and creativity evident throughout. |
Outstanding levels of application and deployment skills. Assimilation and development of cutting edge processes and techniques. |
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5. Skills for Professional Practice Demonstrates attributes expected in professional practice including: individual initiative and collaborative working; deployment of appropriate media to communicate (including written and oral); clarity and effectiveness in presentation and organisation. |
Communication media is inappropriate or misapplied. Little or no evidence of autonomy in the completion of tasks. Work is poorly structured and/or largely incoherent. |
Media is poorly designed and/or not suitable for the audience. Poor independent or collaborative initiative. Work lacks structure, organisation, and/or coherence |
Can communicate in a suitable format but with some room for improvement. Can work as part of a team, but with limited involvement in group activities. Work lacks coherence in places and could be better structured. |
Can communicate effectively in a suitable format, but may have minor errors. Can work effectively as part of a team, with clear contribution to group activities. Mostly coherent work and is in a suitable structure. |
Can communicate well, confidently and consistently in a suitable format. Can work very well as part of a team, with very good contribution to group activities. Work is coherent and fluent and is well structured and organised. |
Can communicate professionally and, confidently in a suitable format. Can work professionally within a team, showing leadership skills as appropriate, managing conflict and meeting obligations. Work is coherent, very fluent and is presented professionally. |
Can communicate with an exceptionally high level of professionalism. Can work exceptionally well and professionally within a team, showing advanced leadership skills. Work is exceptionally coherent, very fluent and is presented professionally. |
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Student Self Evaluation Form |
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Student name: |
Student number: |
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Year of programme |
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Assignment Title: |
This section repeats in brief the common assessment criteria detailed on previous pages. The extent to which these are demonstrated by you determines your mark. Using these criteria, tick the box that best indicates the level of achievement you feel you have achieved with regard to each of them. Please note that this self-assessment is used as a developmental tool only and has no impact on the way in which your work will be marked.
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Level of Achievement |
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REFER |
3rd |
2:2 |
2:1 |
1st |
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| 1. Research-informed Literature | 30-39% | ||||
| 3. Analysis | |||||
| 4. Practical Application and Deployment | |||||
| 5. Skills for Professional Practice |
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PLEASE COMMENT ON AREAS IN WHICH YOU FEEL THAT YOU HAVE PERFORMED WELL |
PLEASE COMMENT ON AREAS you feel that you need TO DEVELOP |
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Student’s Name |
Date |
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Student’s Signature |
Appendix 1
Case Study : Netscape’s Work Culture
“It took Microsoft and Oracle 11 years to reach the size Netscape reached in 3 years, both in terms of revenues and the number of employees. Which is just cosmically fast growth.”
– Marc Andreessen, Co-founder, Netscape.
“Netscape’s relaxed work environment drives up productivity and creativity. Because there aren’t layers of management and policies to work through, Netscape can turn out products in a month.”
– Patrick O’Hare, Manager (Internal Human Resources Web Site), Netscape.
Introduction
On November 24, 1998, America Online1 (AOL) announced the acquisition of Netscape Communications (Netscape), a leading Internet browser company, for $10 billion in an all-stock transaction. With this acquisition, AOL got control over Netscape’s three different businesses – Netcenter portal, Netscape browser software and a B2B e-commerce software development division.
According to the terms of the deal, Netscape’s shareholders received a 0.45 share of AOL’s common stock for each share they owned. The stock markets reacted positively and AOL’s sharevalue rose by 5% just after the announcement. Once shareholders and regulatory authorities approved the deal, Netscape’s CEO James Barksdale (Barksdale)2 was supposed to join AOL’s board. Many analysts felt that this acquisition would help AOL get an edge over Microsoft, the software market leader, in the Web browser market. Steve Case, (Case) Chairman and CEO of AOL, remarked, “By acquiring Netscape, we will be able to both broaden and deepen our relationships with business partners who need additional level of infrastructure support, and provide more value and convenience for the Internet consumers.”
However, a certain section of analysts doubted whether AOL’s management would accept Netscape’s casual and independent culture. Moreover, they were worried that this deal may lead to a reduction in Netscape’s workforce, the key strength of the company.
Background Note
s:
1] Based in Dulles, Va., USA, AOL is the world’s largest online services provider and a leader in interactive services, Web brands, Internet technologies, and e-commerce services.
2] James Barksdale had worked with FedEx as the COO and AT&T Wireless Services as the CEO.
A former Netscape employee commented, “People at Netscape were nervous about the implications of AOL buying us.” Allaying these fears, in an address to Netscape employees, Case said, “Maybe you joined the company because it was a cool company. We are not changing any of that. We want to run this as an independent culture.”
In spite of assurances by AOL CEO, it was reported that people at Netscape were asked to change the way they worked. In July 1999, Netscape employees were asked to leave if they did not like the new management.
By late 1999, most of the key employees, who had been associated with Netscape for many years, had left. Barksdale left to set up his own venture capital firm, taking along with him former CFO Peter Currie.
Marc Andreessen (Andreessen) stayed with AOL as Chief Technology Officer till September 1999, when he left to start his own company, Loud cloud. Mike Homer, who ran the Netcenter portal, left the company while he was on a sabbatical.
Background Note
Netscape was co-founded by Jim Clark (Clark) and Andreessen. Clark was a Stanford University professor turned entrepreneur.
3
]Andreessen was an undergraduate from the University of Illinois, working with the National Center for Supercomputing Applications.
4
]In 1993, with a fellow student, Andreessen developed the code for a graphical Web browser and named it Mosaic. In April 1994, Clark and Andreessen founded a company, which was named as Electric Media. The name was changed to Mosaic Communications in May 1994. In November 1994, Mosaic Communications was renamed Netscape Communications. In December 1994, Netscape introduced Navigator, its first commercial version of its browser
5].
By March 1995, six million copies of Navigator were in use around the world. This was without any advertising, and with no sales through retail outlets.
Netscape allowed users to download the software from the Internet. By mid 1995, Navigator accounted for more than 75% of the browser market while Mosaic share was reduced to just 5%.
In the same month, Netscape launched Navigator 1.0. During February-March 1995, Netscape launched Navigator 1.1.
This new version could be run on Windows NT
[
6]and Macintosh Power PC.[7]Within three months, the beta version[8]of Navigator 1.2 for Windows 95 was launched.
At the same time, Netscape announced its plans to launch the commercial version of Navigator 1.2 in the next August 1995. By launching new versions of browsers quickly, Netscape set new productivity standards in the web browser market.
Numerous Netscape servers were also launched within a short period of time. Netscape Communications Server, News Server, and Commerce Server were launched within a year. In total, within the first 15 months of its inception, Netscape rolled out 11 new products. Within a year of its inception, Netscape made an Initial Public Offering (IPO), which was well received by the investing public.
In 1997, Netscape broadened its product portfolio by developing Internet content services. In June 1997, Netscape launched its Communicator[
9]
and in August rolled out Netcaster.[
10]
In August 1997, Netscape also announced its plans to strengthen its presence in the browser market by forming 100 industry partnerships.
In September 1997, Netscape transformed its corporate website into Net center website – a site featuring news and chat group services.
During 1998, Netscape faced increasing competition from Microsoft in the browser market. Netscape therefore entered new businesses like enterprise and e-commerce software development.
By the fourth quarter of 1998, the enterprise and e-commerce software business accounted for 75% of Netscape’s earnings.
In November 1998, Netscape was acquired by AOL, the world’s largest online services provider.
Analysts remarked that Netscape’s ability to respond quickly to market requirements was one of the main reasons for its success. The ability to introduce new versions of products in a very short span of time had made the company stand apart from thousands of start-up dotcom companies that were set up during that period. Analysts said that Netscape’s culture, which promoted innovation and experimentation, enabled it to adapt quickly to changing market conditions. They also said that the company’s enduring principle ‘Netscape Time’ had enabled it to make so many product innovations very quickly.
Background Note
[9] The Communicator was a complete set of tools for browsing dynamic web content and powerful e-mail.
[10] Netscape Netcaster dynamically delivers intranet and Internet information to user desktops. Netcaster allows Netscape Communicator users to subscribe to a content ‘channel’ – a content source much like a broadcast TV or radio channel – and receive content that they can view offline. Netcaster also enabled users to receive constant information updates in the background while they were working on other tasks.
Netscape’s Culture
Netscape promoted a casual, flexible and independent culture. Employees were not bound by rigid schedules and policies and were free to come and go as they pleased. They were even allowed to work from home. The company promoted an environment of equality – everyone was encouraged to contribute his opinions. This was also evident in the company’s cubicle policy. Everyone including CEO Barksdale, worked in a cubicle. Independence and hands-off management[11] were important aspects of Netscape’s culture. There was no dress code at Netscape, so employees, were free to wear whatever they wanted.
Barksdale laid down only one condition, “You must come to work dressed.” The company promoted experimentation and did not require employees to seek anyone’s approval for trying out new ideas.
For example, Patrick O’Hare,[12] who managed Netscape’s internal human resources website, was allowed to make changes to any page on the site, without anyone’s approval.
Netscape’s management reposed a high degree of trust in its employees, which translated into empowerment and lack of bureaucracy. Beal,[13]a senior employee said, “Most organizations lose employees because they don’t give them enough opportunities to try new things, take risks and make mistakes.
People stay here because they have space to operate.” Realizing that some experiments do fail, Netscape did not punish employees for ideas that did not work out. However, to maintain discipline at work, employees were made accountable for their decisions. They were also expected to give sound justifications for their actions.
Background Note
11] Hands-off management refers to the delegation of time-consuming duties by senior management to employees, and also allowing them to make some major decisions.
12] Patrick O’Hare joined Netscape in June 1997 to manage the internal human resources website. He developed the site from scratch in just two months. The site was Netscape’s biggest internal site with more than 20,000 user sessions a month, offering full-fledged benefits including education and career management.
13] An IT veteran who had worked for several high-tech companies like Apple Computer and NEC Corp.
Netscape’s Culture Contd..
Job rotation was another important feature of Netscape’s culture. By doing so, the company helped its employees learn about new roles and new projects in the company. For example, Tim Kaiser, a software engineer, worked on four different projects in his first year of employment. The company believed in letting its staff take up new jobs – whether it was a new project in the same department or a new project in another department. Moreover, related experience was not a requirement for job rotation. Netscape played a proactive role in identifying new positions for its employees inside the company. Employees were offered a wide range of training options and an annual tuition reimbursement of US $6,000.
This opportunity to expand their skills on the job was valued by all employees. The company also helped employees learn about the functioning of other departments.
There were quarterly ‘all-hands’ meetings in which senior managers of different departments gave presentations on their strategies. These efforts created a sense of community among employees. An employee remarked, “They really try to keep us informed so we feel like we are involved with the whole company.”
Netscape offered a wide range of on-campus services to its employees. Apart from the standard package of health and vision benefits, Netscape also offered a ‘Total Health and Productivity’ plan.
The on-campus services program was introduced through an agreement with a San Francisco based service provider, LesConcierges.[14] Under the program, employees were able to get some of their routine work done like dry cleaning, paying bills, getting the oil changed in their automobiles, etc. They could also consult a dentist or even have a massage. The program also helped employees to plan for holidays as well as order gifts. Sick children of employees were also looked after at a child-care facility near the campus for US $10 a day.
Background Note
14] Les Concierges, founded in 1987, offered a comprehensive range of business and personal services to corporations as a work/life benefit for employees.
Netscape’s Culture Contd..
Since employees worked for long hours, Netscape gave them paid vacations. Employees were given a six week paid sabbatical[15] after the completion of four years of full-time employment. Incentives were given to employees at all levels, not just senior employees. Employees earned bonuses on the basis of individual or group performance. Senior executives were entitled to bonuses in the range of 1-30% of their annual salaries.
There was also an annual company-wide bonus plan based on revenues per employee and customer satisfaction figures. Employees also qualified for bonuses based on their manager’s discretion, for specific projects/assignments. Netscape developed innovative methods of reducing employee stress and preventing them from shifting to rival companies.
The company was one of the pioneers in introducing the ‘canines-in-the-cubicle’ policy, which allowed employees to bring their dogs to work. The company believed that this policy increased productivity by reducing stress.
The company also felt that pets were good icebreakers for shy workers, and that they forced employees to take breaks from their work. Another element of Netscape’s success was its quick recruitment process.
The company’s employees strength had increased from 2 to 330 in just 15 months between April 1994 and July 1995. The company attracted promising student’s fresh out of college by offering them a lot of incentives including beach parties, free clothes, signing-on bonuses and free computers.
Once they joined, to keep up morale, employees were offered stock options, which translated into huge profits when the company performed well. Netscape launched an aggressive recruitment campaign: it went to some of the most popular campuses like UC Berkley, MIT, Stanford, Cornell, Michigan, and Carnegie Mellon in the US. Netscape’s efforts to build a flexible and supportive culture seemed to have motivated employees and made them highly productive.
Background Note
15] A leave sanctioned for advanced study and research.
Netscape’s Culture Contd..
According to an analyst,[16] employee retention is the key to success in the IT industry. Compared to the industry attrition rate of 30%, Netscape’s attrition rate was 20%. Netscape’s management believed that more than the pay check, employees were interested in meaningful work, independence, flexibility, and a desire to learn on the job. Tim Garmager, principal of the Human Resources Strategies Group at Deloitte &Touche LLP in Chicago, confirmed this belief: “There is less emphasis on pay today than ever. In today’s job market, employers need to look closely not only at the benefits they offer but at the culture they engender.”
The Setback
After the acquisition, AOL planned to integrate Netscape’s web-browser products and Netcenter portal site with its Interactive Services Group.[17] The company created a Netscape Enterprise Group in alliance with Sun Microsystems[18] to develop software products ranging from basic web servers and messaging products to e-commerce applications.
However, overlapping technologies and organizational red tape slowed down the process of integration. Within a year of the acquisition, Netscape browser’s marketshare fell from 73% to 36%. Andreessen, who had joined AOL as chief technology officer, resigned only after six months on the job.
His departure triggered a mass exodus of software engineering talent from Netscape. Soon after, engineers from Netscape joined Silicon Valley start-ups like Accept.com, Tellme Networks, Apogee Venture Group and ITIXS.
Background Note
16] Jeffrey Pfeffer, a professor of organizational behavior at Stanford University’s graduate school of business in Palo Alto, California, and author of The Human Equation: Building Profits by Putting People First (Harvard Business School Press, 1998).
17] A provider of online Internet portal services and developer of Internet browser software.
18] Sun Microsystems, Inc. is a leading provider of industrial-strength hardware, software, and services that power the Internet.
The Setback Contd..
Former Netscape vice president of technology Mike McCue and product manager Angus Davis founded Tellme Networks. They brought with them John Giannandrea. As chief technologist and principal engineer of the browser group, John Giannandrea was involved with every Navigator release from the first beta of 1.0 in 1994 to the launch of 4.5 version in Oct.
1998. Ramanathan Guha, one of Netscape’s most senior engineers, left a $4 million salary at AOL to join Epinions.com. He was soon joined by Lou Montulli and Aleksander Totic, two of Netscape’s six founding engineers. Other Netscape employees helped start Responsys.
Some employees joined Accept.com and others AuctionWatch. Spark PR was staffed almost entirely by former Netscape PR employees. Market watchers were surprised and worried about this exodus of Netscape employees. Some of them felt that the mass exodus might have been caused by monetary considerations.
Most of the employees at Netscape had stock options. Once the acquisition was announced, the value of those options rose significantly. David Yoffie, a Harvard Business School professor said, “When AOL’s stock went up, the stock of most of the creative people was worth a … fortune.”
Most of them encashed their options and left the company. But some analysts believed that there were other serious reasons for the exodus. Netscape employees always perceived themselves as an aggressive team of revolutionaries who could change the world.
Before resigning from AOL, Jamie Zawinski, the 20th person hired at Netscape, said, “When we started this company, we were out to change the world.
We were the ones who actually did it. When you see URLs on grocery bags, on billboards, on the sides of trucks, at the end of movie credits just after the studio logos – that was us, we did that. We put the Internet in the hands of normal people. We kick-started a new communications medium. We changed the world.” Another ex-employee said, “We really believed in the vision and had a great feeling about our company.”
But the merger with AOL reduced them to a small part of a big company, with slow-moving culture. Some employees felt that AOL was more interested in the Netscape’s brand name. An ex-Netscape executive said, “AOL always turned its nose up at technology – what Netscape was trying to do. The opportunity AOL had was to make Netscape the technology arm of AOL.
As rich of a resource as Netscape was for technology, equally notable is at AOL the lack of that resource. AOL had a hard time understanding how to best tap into it.” They felt that AOL had just paid lip service to Netscape’s technology by naming Andreessen its Chief Technology Officer. According to Rob Enderle, vice president of Giga Information,[19] “All Andreessen got was a corner. All they wanted was Web presence… They got the [Netscape] name, they just had to figure out how to get rid of the people.”
AOL’s corporate philosophy was also completely different from Netscape philosophy. Yoffie explained, “…The heart and soul of the Netscape engineers’ culture was to try to change the world through technology, not to change the world through media.” That difference made many employees feel that they were working in the wrong place. So most of the engineers left and Netscape was transformed from a technology to a media company. Zawinski said, “AOL is about centralization and control of content. Everything that is good about the Internet, everything that differentiates it from television, is about empowerment of the individual. I don’t want to be a part of an effort that could result in the elimination of all that.” Would Netscape have survived on its own had AOL not bought it in 1998, when the company was reeling under huge losses?
The ex-employees of Netscape did not care to answer that question. They only knew that their old company and its culture had gone forever. An analyst remarked[20], “Unfortunately, AOL is a good technology company that doesn’t know what to do with good technology. It’s sad what they did to Netscape.”
Background Note
19] Giga Information is a provider of information, analysis and advice for developments and trends in computing and telecommunications.
20] David Cassel, Editor, AOL watch, an online newsletter
Source: cmrindia. 2010. Netscape’s Work Culture. [ONLINE] Available at:
http://www.icmrindia.org/free%20resources/casestudies/Netscape%20Work%20Culture1.htm
. [Accessed 15 October 2017].
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