Source https://hbr.org/2014/01/how-netflix-reinvented-hr/ar/1:
"Hire, Reward, and Tolerate Only Fully Formed Adults
Over the years we learned that if we asked people to rely on logic and common sense instead of on formal policies, most of the time we would get better results, and at lower cost. 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. Most companies spend endless time and money writing and enforcing HR policies to deal with problems the other 3% might cause. Instead, we tried really hard to not hire those people, and we let them go if it turned out we’d made a hiring mistake."
I trust myself, and everyone on my team to act in Netflix's best interest. Throughout my career, I've worked with many professional engineers who could have been trusted to work in the company's best interest. But there have been many times when we've been prevented to do so, due to process. So I've been fascinated at how Netflix is operating, and it's been great working here.
It's important to know that a key role of management is to provide context to employees: what problems exist, what challenges we are facing, what opportunities might exist, what's important to Netflix right now. So that we know what to do, and how to exercise judgement.
I've written about working at Netflix earlier this year on my blog (someone else posted a link).