Professional Documents
Culture Documents
and an upper management taking charge and being the authority figures.
This structure allows employees; teams or groups can bypass middle management and report
directly to CEO Larry Page. Employees can also meet and share information across teams.
In 1998. The founders emphasized that their initial public offering (IPO) would not change
their culture and they would not introduce more rules or change the way things are done in
Google to please Wall Street.
Google has a cross-functional organizational structure, which is technically a matrix
organizational structure with a considerable degree of flatness. The companys organizational
structure has three main characteristics:
Function-based definition
Product-based definition
Flatness
Google uses function as basis for grouping employees. - the company has a Sales Operations
team, an Engineering & Design Team, and a Product Management Team, among others.
The firm also uses products as basis for grouping employees- the company groups employees
for developing Nexus devices, employees for its Fiber business.
The lack of top-down hierarchy cultivates a more open atmosphere for employees to voice
their opinions and new ideas in various ways like employee engagement surveys and
Google's upward feedback survey
The Companys Hierarchy
Googles Culture is that anybody can make their case if they have "compelling logic and rich
supporting data," and rarely "do employees accept top-down directives without question."
In 2002 they wiped away their management layer in an attempt at becoming a totally flat
organization. The idea was to strip away barriers to idea development and allow for a more
grad-school type collegiality. But the experiment soon ended as employees started coming to
Larry Page with questions about expense reports and interpersonal conflicts.
The problem with Google's flat structure is that it makes it hard for teams to get promoted. So
Google focuses on providing career development beyond promotions. Google encourages all
engineers to spend 20% of their time working on their own ideas.
They consider HR as science and using employee algorithms they analyses why things
happen. For example, they solved the retention problem with female employees.
When they found that women were leaving the company at twice the rate, their HR
department identified the main issue to be the maternity leave plan for new mothers.
When they changed the plan so new mothers could get 5 months paid time off instead of 12
weeks, Googles attrition rate for women dropped by 50%!
Googles Chief culture officer Stacy Savides Sullivan characterize the culture as one that is
team-oriented, very collaborative and encouraging people to think non-traditionally, different
from where they ever worked beforeworking with integrity and for the good of the company
and for the good of the world, which is tied to our overall mission of making information
accessible to the world