Professional Documents
Culture Documents
Our employees, who call themselves Googlers, are everything. We hope to recruit many more in the future. We will reward and treat them well. Larry Page and Sergey Brin, Founders of Google
Introduction
Managing human resources effectively has become vital to organizations within the modern and fastpaced business environment. Human Resources specialists are more important in business strategies today for this very change in market dynamics more so in the present economic situation of a global recession and downturn across industries and sectors. Arguably, in the last 10 years since the expansion of information technology as a result of the internet; one astounding firm that has impacted on our lives is Google The Google search engine has become so popular that it is now listed as a verb in the dictionary (Merriam-Webster 2009). Is a textbook example of modern employee-centric policies and benefits.
Company Profile
Googles vision is to focus on the user and all else will follow. Googles mission is to organize the worlds information and make it universally accessible and useful.
Historical Perspective
The two founders of Google-Larry Page and Sergey Brin theorized about a better system that analyzed the relationships between websites. They called this new technology PageRank. Originally nicknamed their new search engine "BackRub", because the system checked back links to estimate the importance of a site. Eventually, they changed the name to Google, originating from a misspelling of the word "googol. The domain name for Google (google.stanford.edu and z.stanford.edu) was registered on September 15, 1997, and the company was incorporated on September 4, 1998. Was based in a friend's (Susan Wojcicki) garage in Menlo Park, California. It had less than 20 employees and was answering 10,000 search queries. Made some money by licensing the search service to other sites. In March 1999, the company moved its offices to Palo Alto, California. Began selling text-based advertisements associated with search keywords. Granted a patent describing its PageRank mechanism. In 2003; the company leased its current office complex from Silicon Graphics at 1600 Amphitheatre Parkway in Mountain View, California-now known as Googleplex. In 2004, Google acquired Keyhole, Inc that developed a product called Earth Viewer renamed it as Google Earth. 2 years later, Google bought the online video site YouTube for $1.65 billion
Historical Perspective
On April 13, 2007, Google reached an agreement to acquire Double-click for $3.1 billion. On August 5, 2009, Google bought out its first public company, purchasing video software maker Technologies for $106.5 million. Also acquired Aardvark, a social network search engine, for $50 million. In 2010, Google Energy appeared as its first investment in a renewable energy project, putting $38.8 million into two wind farms in North Dakota. On August 15, 2011, Google made its largest-ever acquisition to date when announced that it would acquire Motorola Mobility for $12.5 billion. This purchase was made in part to help Google gain Motorola's considerable patent portfolio on mobile phones and wireless technologies to help protect it in its ongoing patent disputes with other companies, mainly Apple and Microsoft. On August 13, 2012, Google announced plans to lay off 4000 Motorola Mobility employees. On December 10, 2012, Google sold the manufacturing operations of Motorola Mobility to Flextronics for $75 Million. On December 19, 2012, Google sold the Motorola Home business division of Motorola Mobility to Arris Group for $2.35 billion. On June 5, 2012 Google announced it acquired Quickoffice, a company widely known for their mobile productivity suite for both iOS and Android. On February 6, 2013 Google announced it has acquired Channel Intelligence for $125 million.
Work Culture
A High-energy, fast paced work environment. Casual dress code. There are workout facilities, a caf, well stocked snack rooms, and a dorm like environment. 20% time program. On Fortune magazine's list of best companies to work for, Google ranked first in 2007, 2008 and 2012 and fourth in 2009 and 2010. Google was also nominated in 2010 to be the worlds most attractive employer. Google's corporate philosophy embodies casual principles. Co-founder Sergey Brin says that the fact that Google is fairly engineering centric has been misinterpreted. Google has many international communities- Gayglers(LGBT) Greyglers (Googlers over 40 years old).
Product Portfolio
Advertising: Google Analytics Google'sAdWords Google AdSense Search Engine: indexes billions of web pages, so that users can search for the information they desire, through the use of keywords and operators. Productivity Tools: a free webmail service; Google Docs. Enterprise Products: Google Search Appliance, Mini, Custom Search Business Edition-renamed as Google Site Search; Google Apps-Basic Free Edition Google Apps for Business, Education and Government. Geospatial solutions-Google Earth and Google Maps Security and archival solutions-Postini Chromebooks:-Personal computing run on browser-centric operating systems. Other Products: Google Translate Google News service Apache 2.0 G1, the first Android-based phone Google Chrome Nexus One Google Wave Google+
Business Strategy
Googles Toronto Office reads proud to be geeks. The employees dont need the next deadline or next project proposal to work on creating something, but rather an intrinsic challenge. Focused on the human capital creation and retention since becoming operational in September 1998. The Ten Things -The operating guidelines in a very broad and yet amicable manner. Aimed at creating innovative and unique solutions which would uphold the brand equity and reputation. The strategy has been to provide the user a completely precise and tothepoint customer experience and to accept short term losses over long term goals.
SWOT ANALYSIS
SWOT analysis is a management tool that is used by most corporate organizations in making decisive strategic decisions that helps the organization to be stable and sustainable in the long term.
Strengths
Googles Markets Key Technologies Free Software Quality of Personnel. Capital Base & Revenue Streams
Weaknesses
Weak Staff Loyalty Ineffective Staff Recruitment Security International Reputation Motorola Acquisition Risk Mobile Monetization CPC woes
Opportunities
Google Plus Maps Offers Shopping News/Finance Other Services Imobi Google Books Google TV
Threats
Lawsuits Competition Economic Downturn Political Risk Mobile Search Human Resources
HR practices at Google are named People Operations, which is designed to underline the fact that it is not a mere administrative function, but ensures to build a strong employee-employer relationship. The HR team is made up of general HR business partners, internal consultants, line managers, learning and development, and recruitment teams. Recruitment and Selection: Developed a recruiting machine to categorize the jobs for the recruitment process. This contains details of the entire organization, requirements of the organization from the leaders to the entry-level employees. Through its branding, public relations, and recruiting efforts. Recruiting functions such as employee referrals, college recruitment, extensive recruiter training etc. Applicant Tracking System (ATS). Rigorous selection process-tough interview of nearly four rounds Use of mathematical problems while screening candidates. Finally approved by Page Evaluates candidates on their Googleyness, ability to work in Google's flat organizational structure and their knack of working in small teams. A ratio of about 1 recruiter for every 14 employees (1:14)
Leadership Development
Learning and Leadership Development (LLD) team designs and implements innovative learning programs that support and develop the company's talent. Their team is a creative, dynamic and collaborative group that is responsible for three integrated components of learning: the learning programs of Google University, leadership development and talent management
Compensation Structure
Google stands out as being one of the most sought after and yet one of the most underpaying employers in the industry. Googles compensation program, also called payfor-performance, focuses on providing reward for strong performance as well as training for overcoming weaknesses for underperformers. Google emphasized on employee development through on-the-job learning, training through classes conducted by higher officials, frequent departmental meetings and lectures by famous personnel. While fresh MBAs are offered salaries between $80,000 and $120,000 per annum, experienced engineers draw an annual package of $130,000 along with 800 options. software engineers at Google draw an enviable compensation package as compared to their counterparts at Microsoft or Yahoo!
Innovation
To encourage creativity and interaction among employees, Googles office is designed
so as to provide colors, lighting and shared room. Also, Googles HR policies and work culture are unique and the managers are allowed to try new approaches, to make mistakes and learn from failure.
Social Good
Informal corporate motto Dont be Evil, which reminds its employees that commitment to be ethical is part and parcel of being a leader at Google. 99% of the employees indicate that, Management is honest and ethical in its business practices. Standards of conduct relate to : Internal business practices (respecting each other, protecting confidentiality, protecting Googles assets, etc), External relations with customers and partners, and the impact on of Google's work on the larger society
Challenge of growth
Analysts are concerned that as the company grows, it is difficult for it to provide the same financial and other incentives for its employees. Googles meteoric growth also poses a threat to its intimate team culture and its ability to handle creative conflicts among Googlers. Further, Google struggles to keep its culture away from the shackles of bureaucracy while being able to stimulate its employees. Avoiding organizational lethargy from creeping in while constantly launching new products is also not an easy feat to accomplish.
Diversification Gap
In case of diversification, Google had trouble in recruiting talented locals in its South Asian operations, a board member of Google said (Business Week, 2005). In particular, it was cited a shortage of web development skills such as knowledge of JavaScript and Ajax (Asynchronous JavaScript and XML), the web design technology used in the latest generation of websites like Google Maps and Flickr. Middle managers also are in short supply.
Recommendations
Misalignment and ineffective implementation of the employee recruitment and selection strategies which seem to have negatively affected the performance evaluation activities as well of the HR dept thus leading to ineffective horizontal fit among the HR strategies of recruitment, selection and performance evaluation of the organization. Google has to ensure that its employees retain not just because they are given a variety of benefits. At the same time just providing flexibility to innovate and a vibrant colored atmosphere wont bring innovation quickly Also though the unconventional work culture has accelerated the pace of innovation;. There is a risk of the organization losing its dynamism and becoming more bureaucratic The top management of the company headed by CEO Eric Schmidt needs to be more proactive in revisiting and modifying their recruitment and retention strategies from time to time Issues of the diversification gap to be addressed by focusing on the larger business implications.
Conclusion
There is ample evidence to show that Googles business strategy is indeed realistic, rationale, and viable and not as insane as claimed by Microsoft CEO, Steve Ballmer. The company has shown that it is capable of dominating all the associated businesses and activities on the internet. Horizonal integeration is highly overlooked due to loopholes in recruitment, selection, compensation backed by challenges posed by diversification, recession and certain issues related to the workplace culture. Google has managed to achieve vertical integration with its business strategies and its Reward administration by an effective provision of a diverse range of employee benefits and access to a no. of facilities Google also has the possibility of achieving a successful strategic vertical fit b/w its organization development related HRM practices and innovation focused corporate strategies because of its unconventional culture. To sum up Microsoft and Yahoo can try everything, but the large majority of people around the world will always "google" things, not "yahoo" or "bing" them as Google has an upper hand in business.