Analysis of Google Hr Strategy

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Analysis of
Google HR
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“Our employees, who call themselves Googlers, are everything. We hope to recruit many more in the future. W e will reward and treat them well.”
L arry Page and Sergey Brin, Founders of Google

1 . Introduction
M anaging

h uman

r esources


h as

b ecome



organizations w ithin t he m odern and f ast‐ paced b usiness environment ( Caldwell, Chatman, & O'Reilly , 1990 ) .

H uman Resources specialists are

m ore important in business strategies today w here m arket is dynamic and c hangeable .

1 .1.

O bjectives of the study

T o analyze HRM technique and methods
T o analyze how employees help a company in differentiating itself from its c ompetitors
T o analyze how companies attract the best - knowledge workers and retain employees in a competitive environment
T o analyze the innovative HR practices and the 'Best Place to W ork F or' culture at Google
T o analyze the future implications of Google‟s HR practices in the long run


2 .1.

B ackground of the Company

S ource:

G oogle ( illustrations of the company web site presented in Appendix 1 ) is a c ompany that was conce ptualized in a dorm room by two Stanford University c ollege students , 2 4- year - old Larry Page (Larry) and 23 year old Serg e y Brin (Brin) , i n 1996 ( Iyer &Davenport, 2008 ) and has morphed into one of the greatest technological powerhouses in operation today.

I t then diversifies into

e- mail, online mapping, office productivity, social networking, and video sharing s ervices . G oogle was registered in September 1998. It h ad less than 20 employees and was answering 10,000 search queries each day. A year later, t he number increased to 60 million queries a day ( company website) . Till 1999, G oogle had no system for generating s ignificant revenues. The company made s ome money by licensing the search service to other s ites. Under pressure from t he board to get professio nal help, the f ounders recruited Eric Schmidt in early 2 001. Schmidt was surprised to discover that every Friday the founders shared G oogle‟s progress with all the employees and on occasions they included a


d etailed financial review ( Vogelstein & B urke, 20 04 ) . He requested Brin and P age to discontinue the practice but soon realized that the meetings were i ngrained in G oogle's culture and united the staff. In a 10 - person management m eeting to discuss ways to g enerate revenues, Schmidt found that each person h ad a viewpoint backed by plenty of data. Schmidt realized that Google employees loved to talk it out, jettisoning hierarchy, business silos and layers of m anagement for a flatter, „networked‟ structure where the guy with the best data w on ( Ben Elgin, 2005 ).

2 .2.

O rganizational Goal and Vision

G oogle‟s mission statement is “To organize the world” information and make it u niversally accessible and useful” ( The work culture and employee empowerment philosophy at Google was apparent from the day the c ompany w as launched in 1998. The founders, Larry Page and Sergey Brin, wanted to establish Google as a company that was to be seen as a company run by the g eeks (Lashinsky Adam) . The HR Department, in its alignment with the business s trategy of trying to attract the best minds across the globe to work for Google, h as since always aimed to become the strategic partner to the business operations.

2 .3.

C ultural environment

Schein ( 1988) d efines the culture as: “The climate and practices that organizations develop around their handling of people, or to the espoused v alues and credo of an organization”. O rganization culture is a rich description of organizational life ( Barney, 2002 ).

O rganization culture impacts the strategies, motivation...
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