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A company's organizational culture acts as a vigorous role in its achievement. A company's culture shows its charm by having the best staff in the industry. The same is the case with the organizational culture at Google. Google is one of the scarce companies that fruitfully merged technological invention with durable organizational culture.
How the company is leading through its culture? How the culture can attract the best talents in the industry? How organizational culture is behind all the success pillars.
This offers intuition into the work environment, and recruitment process at Google. The case also offers intuition into how Google nurtured revolution amongst staffs. It ends with a critical analysis of Google.
Table of Contents
How organizational culture leads to employee satisfaction.
Importance of employee satisfaction in the success of a company.
Is organizational culture a reason behind competitive benefit?
Can a good organization culture attract the best talent in the industry?
Whenever it comes for searching something on the internet the first name which strikes our mind is "GOOGLE". Anywhere any place any information you can get from Google, you lost somewhere type the place's name and the way is there or just click on Google earth.
It is the best not only in terms of search but also its work culture and employee satisfaction.
Google was originated by Larry Page and Sergey Brin when they were studying at Stanford University. The name Google was derived from the mathematical term googol which is used for 1 followed by 100 zeros. Its name itself reflects the immense knowledge inside it. It is a profitable and public company concentrated on search services, Google operates web sites at many international spheres, with the most operated being www.google.com. Google is broadly recognized as the "world's best search engine" because it is fast, precise and easy to use.
Google works on the mission of organizing the world's knowledge and making it universally acceptable and accessible. (Christensen, 2010)
Some achievements of google are:
Most chosen search engine
Selected as the best place to work by MBA students
2007 & 2008
No 1 employer by fortune magazine
EmployeeÂ satisfactionÂ is a measurement of how satisfied employees are with their working environment and facilities provided to them. It is all about keeping the morale high among workers result into tremendous benefit to any company, as happy workers are more likely to work with higher energy and efficiency, take fewer days off, and stay loyal to the company. There are many ways of improving or maintaining highÂ employee satisfaction, which intelligent employers should follow in order to make the employees perform well.
In order to maintain the satisfaction, the satisfaction level is a must to be known by the employers and in order to measure the level of employee satisfaction companies can go for:-
Face to face interactions with the employees to gain information
Both of these methods haveÂ pros and cons, and should be chosen with proper care so that proper results can be achieved.
Surveys are often undisclosed, allowing workers more freedom to be honest without fear of consequence whereas Interviews with management can feel threatening, but if done correctly can produce fruitful results as the workers will know that their voice has been heard and their anxieties talked by those in control and they are also an equal and important part to the organization. (heathfield, 2000)
Organizational culture is the personality of a company in terms of its values, norms, and culture; it can be stated as the identity of the company in terms of what it is following from the last decades for creating a good work culture.
It can be stated as the way of interacting within the organization as well as out of the organization whether it is the interaction between the employees, customers, stakeholders or management.
Organizational culture is also known as corporate culture and it also reflects the beliefs and ideas of what the goal should be. Organization culture is a really important matter of concern for an organization as an unhealthy organization can lead towards unsatisfied employees with low morale and no confidence which in turn will affect the production and efficiency if the organization. (Ashraf, 2010)
Ten parameters of a healthy corporate culture:
Employees defend the company against a critique which states unjustified reason for the same and answers back that we are the part of our organization.
Each and every employee should work for the benefit of the company at their best and make the company to achieve its target and stays at top.
Managers are humble and friendly towards the employees as always ready for whenever in need.
Expenditures and costs are evaluated in terms of its effectiveness and all the members are aware of the fact.
All the employees should be given an equal and fair opportunity to express their ideas and rest of the employees along with the management should respect their ideas.
Employees should not try to take the advantage of the other one's mistake and proof themselves to be superior.
A company should be devoted towards providing a better service to the customer.
Employees should follow the rules strictly taking the company's property as their own
Education and training programs should be strongly supported by the company and the employees as well in order to keep the employees up to date of the new technology.
New ideas should be given a proper space to come out in order to promote innovation and better technology. (Hann, 2005)
These are the parameters through which a company's organizational culture should be measured and Google is the company which scores 10/10 in this it satisfies all the parameters giving way to such a healthy culture where employees not only want to work but work for lifelong it is the dream of all creative people.
Herzberg's motivation-hygiene theory:
Acc to Herzberg the satisfaction and dissatisfaction of employees depends upon two factors:
Herzberg simply said that in order to motivate the employees you need to take care of all hygiene factors first and by that you ensure them with safe work environment and enable them to start dreaming. Once that is done start working on the motivation factors
Acc to the theory; people are influenced by two factors:
Satisfaction: which is the result of the motivation factors; these factors help increase satisfaction but have a little effect on dissatisfaction.
Dissatisfaction: is the result of hygiene factors. These factors if absent or inadequate, cause dissatisfaction but their presence has little effect on long term satisfaction. (Herzberg, 1959) (ABE,UK, 2010)
PAY AND BENEFITS
COMPANY POLICY AND ADMINISTRATION
RELATIONSHIP WITH CO-WORKERS
These are the factors responsible for the satisfaction and dissatisfaction the employees.
Related case study:
A lot of case studies have been done before on this topic of organizational culture on its different aspects as my focus is on the leading towards success through the employee satisfaction, one of them is described below:
Employee as brands:
This case is written primarily to raise an interesting argument over a simple, yet, thought-provoking concept - how can human resources be leveraged as a source of competitive advantage? Illustrated through the example of Google, this case raises many intriguing issues. In a span of a decade, Google has emerged as a technological powerhouse with two extraordinary innovations, 'search' and 'ad words', to its credit. The company attributes this enviable rise to glory to its most valued assets - the Google employees. Since its inception, the company has constantly hired only the best talent in the industry, preferring creativity to work experience. Striving to attract and retain bright and inspiring employees, Google focused on motivating its employees by creating a challenging yet fun-filled work environment coupled with a wide array of perks ranging from free food and a gym to employee stock options. Additionally to foster innovativeness, Google has adopted the '70/20/10' model, to encourage Googlers to spend 20% of their work time on a project of their choice. These efforts paid off and Google emerged as the most sought after place to work for two consecutive years (2007 and 2008). However, can a company that has focused on small teams and individual interaction with all employees cope up with the same when its meteoric climb to success has captured the interest of many competitors? The appreciation of Google's achievements has been accompanied by increasing apprehensions about the long-term sustainability of Google's informal and fun-filled culture. Whether Google's success is a result of its much hyped work culture or vice versa, continues to be an unresolved enigma. (Deepti Srikanth, 2009)
WORK CULTURE AT GOOGLE:
We try to provide an environment where people are going to be happy. I think that's a much better use of money than, say, hundred-Million dollar marketing campaigns or outrageously inflated salaries."
(Sergey Brin, Google co-founder, in March 2003)
Google has a relaxed work culture at Googleplex (its headquarters). Together Larry and Sergey tried to put their ideas into reality by making the work culture at Google fun by creating such an environment inside the office decorating it with different colours, designs and Google logo
Googlers are permitted to get their pet animals in the office and snacks and food all provided to them free of cost arranged by the chef Charlie Ayers. Googleplex has staff canteens providing them with varieties of snacks and eatables
Google's mission announcement states that a person can:
"Make money without doing evil" and that "work should be challenging and the challenge should be fun".
These values rules at Google and the company policy states:
"Organize the world's information and make it universally accessible and useful" (Strickland, 2006)
Innovations at Google:
Google management focuses on motivating invention and creativity at the workplace. It comprehended that for a company to grow, ideas and creativity is a must and at Google they give their best to achieve it although they have faced a lot of difficulties doing it.
We are never sort of ideas but we lack the way of expressing
To solve this Google created an internal web page in order to track ideas. (Schneider et al., 2003)
Sergey and Larry also concentrated on recruiting people with the right edge of brain. They were themselves involved in the whole procedure; in order to charm the best of the staff they posted ten reasons for working with them on its website.
Google employed people with different skills and qualities while employing, Google involved maximum importance to academic performance as exposed in grade scores in their exams. To get into Google, you have to belong from the best schools or universities. (Charlton, 2006)
Implementation of Herzberg's theory:
As can be seen above Google in order to satisfy their employees follows the theory as:
It firsts satisfy the hygiene factors of the employees like work environment, food, relaxed culture, pay, job security etc. in order to make them more comfortable while working.
Googlers are allowed to bring their pets during work,
Staff canteens are provided with variety of snacks,
The office of Google is decorated with colours, designs and Google logo.
After satisfying the hygiene factor it comes for the motivation factors:
As can be seen above in the case that:
Google is highly focused on the creativity of people and it wants its employees to be more and more creative in order to do that it keeps on encouraging the employees to work more and more spending time on creating something new
The best example of it is Google gives recognition to its employees in terms of their work it gives them proper space to come up with ideas and respect the idea as well which makes the employee feel a part of the organization.
Organizational culture leads to employee satisfaction
As can be seen from above:
Like this Google has created a perfect environment for the employees to work and due to this the employees more attached to the organization.
Through the above analysis it is clear that organizational culture leads to employee satisfaction as can be seen in the case above Google has created such a culture and work environment that its employees are satisfied and happy working there.
Attracting the best talent in the industry:
And this environment also helps Google to retain the best of the talent of the industry as Google being the dream of any individual seeking job and a proper place to work and show their creativity as it can be seen from the above study that Google hires people with brain and suitable to work in there and since now it is proved that it has the best talents of the industry which ends up with the conclusion that employee n satisfaction is also an important factor in attracting the best talents in the industry.
â€¢ It has established a brand name for itself and is considered to be the number one search engine on the web.
â€¢ The speed and simplicity of its search engine is quite reliable and user friendly.
â€¢ It has a 'market cap' of $185.61 billion according to 'Yahoo Finance', Dec 5, 2009.
â€¢ It has a 'war chest' of $22 billion according to Adam Ostrow, Oct 15, 2009.
â€¢ It is considered to be among the top 10 brands in the U.S.
â€¢ It gets reputation by its popularity which proceeds by its word of mouth publicity, so it doesn't need to put much effort inÂ marketingÂ its search engine.
â€¢ It offers many products and services i-e; Desktop products, Mobile products, Web products, Hardware products.
â€¢ It has a low operation cost regarding its products and services.
â€¢ It has hired PhDs specially to work for enhancing the search engine algorithms which will render the search faster, relevant and more efficient.
â€¢ It provides its search engine interface to 88 languages which is quite helpful for the locals of the countries.
â€¢ It uses state-of-the-art technology to catalog the pages to give the most updated outcomes to its users
â€¢ It ranks the webpages with its Page-Rank technology that gives the users access to the important pages first.
â€¢ It specializes in marking the results in differential scale i-e it separates the sponsored links from the regular links that are provided.
â€¢ The search engine also provides localized searching where the users get results according to their regions.
â€¢ It provides services such as Groups, Email, News, Directory etc.
â€¢ It has come-up with ideas regarding solutions to wireless hand-held devices, personalized toolbars, and indexes.
â€¢ It directly routes its users to the webpage without lingering on another site for ad revenue.
â€¢ It has also acquired YouTube which provides video services to users across the web, and which is regarded to be the number-one online video portal users.
â€¢ It has Ad Words and AdSense programs working as the main mechanism.
â€¢ It has a strong professional networking space present.
â€¢ It is dependent mostly on its search based advertising.
â€¢ There is the risk of facing dead ends for the users, who find the citation but not the whole text.
â€¢ It has lack of focus regarding the service of search engine.
â€¢ Spammers usually take advantage of Google's ranking technology by creating sites that contain a lot of links by which they end up getting higher ranks.
â€¢ Its link-based ranking tech. mostly didn't work on actual traffic analysis.
â€¢ Its cost-per-click advertising charge & ranking policy makes it difficult for the clients to predict the positioning of their ads and their costing as per se.
â€¢ Its contextual advertising is considered less effective regarding sales generation, and the algorithms behind the search are erroneous.
â€¢ Its localized search also results in errors at times.
â€¢ It is the top player regarding the search engines yet it answers search queries with 50 to 60% accuracy.
â€¢ Its inability regarding YouTube to be monetized.
â€¢ It has weak presence regarding the social-networking space.
â€¢ The products and services integration is quite heterogeneous.
â€¢ It does not hold any strategy for contraction.
â€¢ The cost for the data-centre getting higher and higher.
â€¢ It has vast opportunities for reaching new groups/segments and reaching for new contents.
â€¢ Easy expert search, which can be integrated using open-url.
â€¢ Using higher value content on the web.
â€¢ It can relive the trend like Yahoo! and MSN and become a mass market portal for users that will increase switching costs for its potential users.
â€¢ It can add localized vendors paid advertisements on the localized search.
â€¢ It can merge with an already existing mass market portal to cover more ground regarding its users.
â€¢ It can provide more services to the hand-held devices to capture more market that goes past the conventional internet.
â€¢ It can increase its overall ad spending online.
â€¢ Its can enhance by having new acquisitions.
â€¢ It can increase the internet usage which will render the usage of google.com to be increased as well.
â€¢ It can lose control over the indexing policy.
â€¢ The censorship will be imposed which will render many services to be less effective.
â€¢ Library services becoming less visible.
â€¢ Users ending up not getting to the institutional subscription.
â€¢ The disappearance of informational skills.
â€¢ Competition from firms like Yahoo, MSN.
â€¢ Legal trials.
â€¢ Federal lawsuit regarding the collection of search habits of the consumers, which erodes public perception.
â€¢ It will lose a considerable amount of revenue if its contacts with portals like AOL.
â€¢ There is no time constraint regarding the business, competitors can emerge with better interface and new ideas regarding the search mechanism that will make Google lose its market share.
â€¢ Its confusing cost-per-click policy can disappoint the clients and the firm may start losing them.
â€¢ It can lose its simple and user-friendly interface if it decides to become a portal, for which it is favourite among its users.
â€¢ It can get stuck in issues if it decides to acquire information regarding its users' personal information.
â€¢ Merging with another already establish mass market portal will be a good step, but Google will start losing its well-earned brand-name.
â€¢ Its service relies highly on its network members.
â€¢ Privacy issues regarding the content ownership. (Adam, 2009)
Organizational culture behind the success of a company:
From the above swot analysis it can be seen that google is a great success and the best in its field which a combined effect of all the factors:
As its organizational culture leads it to high employee satisfaction which in return leading to high morale motivates the employee to work with all their effort and efforts, Google having the best of talents who work with their maximum possible efforts constantly creating new ideas and innovations is leading the company towards success.
At the same time it can also be seen from the above study that Google stands far above its competitors and is leading as the no 1 search engine leaving all its competitors behind and the reason behind it being its innovative ideas and different work culture, having the best work culture Google attracts the best talents which helps it to weigh more in terms of competition as retaining the best talent is a very big achievement in itself and Google have this from the beginning
A Critique of Google's Culture:
Many analysts believe that the zero turnover rates during the dot com boom were evidence to its healthy organizational culture. But a lot of people were not satisfied with it as they believe that Google was not made for the management of growth.
The recruitment process at Google is also not perfect as it focuses completely on the academic records of a person and not on the intelligence level
For ex: you not eligible to apply for Google if you have a 20 year experience working in cisco if u doesn't have excellent academics
But the Googlers defend themselves by saying that they value intellect and understanding more than experience
Organizational culture is important not only to create a good work environment but at the same time it leads a company towards endless success and more happy employees which in turn result into constant growth, profit and higher market share.
As can be seen in the above study of Google who is leading as the best search engine through its marvellous work culture giving its employees all the needed space to grow and work as a part of the organization which in turn is taking the company ahead of its competitors and more profit.
In spite of having the best of organizational culture Google should work more on its recruitment system.
The company should be flexible in terms of its policies of selecting a person. for work as it should not completely focus on its academic background but also on experience and knowledge.
The company should work on providing space to the social networking.
It should work on its cost being too high which creates difficulty for the clients.
It should focus more on its accuracy as in spite of being the no 1 search engine it has an accuracy of 50-60%
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