Google’s Organizational Culture

European University MBA counseling Skills Group A Case reflect 1 Google 23 October 2009 Marion Gruber Reinis Onuzans Steven Teves Jessica Wer scratcht Table of confine 1 Introduction. 3 2 Googles future growth. 4 2. 1 Organizational finis Facilitating Aspects. . 4 2. 2 Organizational husbandry narrowing Aspects.. . 6 3 Recommendations8 4 References .. 9 5 Table of Figures. . 10 1 IntroductionReading the soil study Googles HR quandary by Mridu Verma, we yield gained some companionship about Googles victory story. at heart 11 years the union has expectant to a global enterprise employing nearly 20,000 battalion. Nowadays Google is not associated fitting with look to service. it is also cognise for workings in advertising, publishing, softw atomic number 18 and Gmail. Google has bought many companies, the best known is YouTube. In the 11 years cadence the bon ton is running fortunately with outgrowth revenue every year. Nothing seems to cop it, because of thei r power in the market.Further more Google has authentic many awards in Best roll to Work and has al paths been known for conform to and motivated employees. This is attr acting new professionals with a high school capability, so Google is likely to expand and experience new ideas. The case study reveals Googles organisational finis and social organisation. It is very unusual, notwithstanding it proves to work. Case study tells how they provide imperative work purlieu, what kind of people atomic number 18 hired and how Google plan their innovations. The main pertain is if they can grow and until now be successful with present structure in the play along.Everything needs to be changed from condemnation to sequence in order to maintain achievements. Our tale is going to look at how organisational structure go out be impact by Googles presumable growth. We result discuss if any variations should be made, and if the companys refinement go forth dish out or not in its potential growth. Each of us has an opinion whether of not something needs to be changed to improve Googles future prospects. However all of us believe that some changes should take place. Therefore, we gather in come up with some(prenominal) suggestions. Googles future growth To what extend is their organisational culture going to facilitate/ limit their future growth? Corporate finish is defined as A perish of values, beliefs, taboos, symbols, rituals and myths all companies develop everyplace time1. Googles organizational culture has bygone through with(predicate) a couple of changes. jibe to an article from The Economist, Google has a harvest-festival development system that was working in an informal sort, which was working fine when Google was still in the beginning phase of what it has commence oday. But now that it is a monster with 20,000 employees, the firm risks stifling potential money-spinners with a burgeoning bureaucracy. 2 So is their way of run st ill applicable when the potentiometer is expanding at this rate? Let us localise the pros and cons if Google sticks to its organizational culture as it is. 2. 1 Organizational Culture Facilitating Aspects The case study has informed us that all engineers are given xx percent of their time to work on their own ideas.The organizational culture has been working very hearty everyplace the outlive years where employees morale has been uplifted and gave them flexibleness which always resulted despoticly. We prevail taken the shore leave to compare Googles current organizational culture with Mr. Abraham Maslows principles of human existences needs, to site the positive aspects of Googles work environment as it is. pic Figure 1 Maslows Hierarchy of Needs Source http//stanleybronstein. com/blog/maslow. jpg Basic needs such as the physiological and safety, should be assured in every company to ensure the minimum level of motivation an satisfaction of employees.Nevertheless, Googl es human resource management and organizational culture try to encourage their manpower to achieve the next level of needs. The savor/Belonging needs could be enabled through their activity facilities and generous dining arena so employees from different departments can transmute their ideas and talk about their work or private life. Maslow has identified that the need of self-esteem and confidence are very burning(prenominal) for a psyche after obtaining the maiden three needs of its Hierarchy. One of the elements that builds up esteem is the recruitment process that Google executes. collect to this very unique process which includes several tough step of selection procedures, people who have made it through snarl a self fulfilling emotion of achievement. Finally, and belike one of the most all important(p) steps in the hierarchy is self-actualization. Googles unified culture enables its employees to be creative and independent, therefore allowing more flexibility which increases self-actualization. In short, Google Inc. emphatically meets the standards that Maslow set out for the hierarchy of human needs.The way Googles organizational culture has operated for the last years seemed to have worked just fine, and some susceptibility argue that having the emplacement of a start-up cable within a giant lot could be the reason for all the success. Should the organizational culture aliment its structure and identity as it is? 2. 2 Organizational Culture Constraining Aspects despite the organizational cultures positive aspects, analysts fear that this way of structure get out soon face its limit if Google donjons expanding at this exponential growth rate.From an external channelize of view, Google is kind of following the life calendar method Microsoft has experienced when they were getting bigger and bigger. During the 80s and 90s, Microsoft became dominant in its field of goods and products and were accused by rivals for acting like a monopo ly. No anti-trust bodies are on Googles doorstep besides and surveys have shown that Google has the good go forth for its customers. Nevertheless Greg Sterling, read/write head of a research agency specializing in internet companies claims, Google has an image problem.He states In the industry, around Wall Street and in Silicon Valley, there is a knowledge that Google is the Microsoft of the internet. It has to do with power, of course. In simple terms, Google has accommodate a victim of its own success. 3 Internally, the Google corporation is about to suffer as well. Their blue business style of operating gets in the way when the company is expanding at this growth rate. Because the company has more than 20,000 people now the cleverness in work as well as the innovational product initiation is more difficult to control in this work format.Because of this lack of control, employee dissatisfaction has slowly arisen and is growth throughout the Google industry. Former employe es have verbalise that they feel disposable and easily replaced by their managers. 4 When you change the flexible organizational structure into a more controlled work environment, you index risk employees disagreeing with the sudden change in management style and as a consequence creativity, motivation and morale will decrease. Brockett (2008) quotes that there is no specific natural endowment programme at Google. But they have difficulties in motivating their programmers to take over managing functions.Since they love their job so some(prenominal) they are not very ordain to spent time on managing others. 5 harvesting manager Robert Kniaz stated it has become harder to keep the same level of excitement you had when its you and your friends working late at shadow. Even though they have a aggroup thats developing policies for Google to be run as a corporation instead of a small business, Google fears that these policies might take away the creativity as well as the flexibilit y from the employee. 6 Googles organizational culture has to adapt to the companys growth.Yet, changing a class is difficult and could raise issues. 3 Recommendations The spirit of Googles mission combined with their organizational culture makes expansion rather inevitable. We do not believe Googles successful track record of increasing net earnings each year and the stimulated self-directed employees are just a coincidence. Our opinion and good word is based on our belief that Googles unique integrated culture legislately affects the financial success of the corporation, but as expansion takes over there are necessary changes Google must(prenominal) make to ensure continual success.Our recommendation is as follows Google should introduce a bureaucratic system of dialogue era maintaining their profound values of universalism, stimulation, and self-direction. Prior to 2005, Google had been rightfully criticized for being arrogant and disorganized, but as Google expand it d id become more structured7. During this structural change, Google bear on its small business attitude (small squads, spread communication policy, informal atmosphere, and idea sharing). Now, quartet years later and nearly 15,000 more employees, Google is losing their small business mentality.As the business grows, so do the complexities. Complexities always impart an element of difficulty and involvedness, which makes the need for clear and cut bureaucratic organization and communication system deemed very necessary. Team leaders To keep aggroups working efficiently internally and externally we recommend Google to institute a team leader into each team. This soul is someone who is already part of the team and exhibits superior organizational and management skills. This person will serve as a liaison between the team and the teams project manager.The team leader will ensure short-term goals and deadlines are being met. growth reports Once per week, team members will answer a serial of questions pertaining to the specifics of what they have accomplished in the agone week. This is to ensure there is no lap or communication gap in current projects. The team leader will analyze each document and reasonable elements will then be brought to the tutelage of the project manager. This step is to ensure important but possibility over sight details to not get left out when the project managers have meetings.Progress reports will aid in spying the good idea and catching the ideas to fail before too many resources have been poured into them. Since Google is comprised of so many creative and innovative people, many bureaucratic systems get pushed to the way side because they are seen as inhibitors. A bureaucratic system of communication will increase efficiency with the company while still being able to draw true to it core value system. 4 References emailprotected Term comment Corporate Culture Entrepreneur. com, 2009 emailprotected Creative strain The Economist, September 17, 2009 emailprotected WACHMAN, R. Googles expansion is climax at a scathe its losing its popularity, The perceiver 25th March 2007 emailprotected MONTALBANO, E. , increase var. for Google, Computerworld twentieth October 2008 emailprotected MONTALBANO, E. , Growing hurt for Google, Computerworld 20th October 2008 emailprotected MRIDU, V. , 2006. Googles HR quandary, ICFAI parentage School, Pune, Pg. 5 emailprotected BROCKETT, J. , 2008. Finders keepers, People precaution magazine, published 18 September 2008 5 Table of Figures Figure 1 Maslows Hierarchy of Needs,5 1 Term definition Corporate Culture Entrepreneur. com, 2009 2 Creative Tension The Economist September 17, 2009 3 Wachman, Richard, Googles expansion is coming at a price its losing its popularity, The Observer 25th March 2007 4 Montalbano, Elizabeth, Growing pains for Google, Computerworld 20th October 2008 5 Brockett, J. , 2008. Finders keepers, People Management magazine, published 1 8 Sept. 2008 6 Montalbano, Elizabeth, Growing pains for Google, Computerworld 20th October 2008 7 Mridu Verma Googles HR Dilemma 2006, ICFAI Business School, Pune, Pg. 5