Case Study on Google

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Executive Summary
Google offers benefits and perks to its employees, this made the company known as “the best company to work for” for two years running, as named by Fortune Magazine. All these benefits were made by the Google executives so that employees would feel that they are valued, and focus more on their work. However, despite the many benefits, perks and amenities that the company provides, many people are still leaving. An example of this would be Sean Knapp and two of his colleagues, who handle Web Video, that despite being offered a “blank check to stay” at Google, still left to start their own company. This would be no problem if it was an isolated incident but it has become an alarming trend in the company since other talented employees are doing the same. In fact, the many employees who’ve left have formed an informal alumni club of ex-Googlers.

How can Google motivate its employees to consistently perform better and reliably stay longer in the company? Point of View: Google Top Management

• Stock options are given to employees (401k plans, etc) • Google employees
o work in a structured work schedule
o have tasking jobs that require them to perform at their highest level

Key Success Factors
• Front-runner
o Google is one of the most profitable IT companies nowadays o Google has a good reputation to new possible employees • Facilities
o Free basic necessities like food, transportation, etc o Added benefits from facilities that could be used like the gym and the spa • Compensation Schemes

Ishikawa Diagram (Appendix A)
The Ishikawa diagram shows the causes of a certain event. The event in this diagram is the problem of good employees leaving Google to either start their own companies or move into another company. The main causes that could result to this could be grouped into 3 categories namely management of the company, the environment in which the company operates, and the Google employees themselves.

Maslow’s Hierarchy of Needs (Appendix B)
Lower-order needs of employees like physiological needs[1] and safety needs[2] are satisfied when it comes to Google’s employees. This could be seen from its benefits like food, snacks, gym facilities, transportation benefits, etc. and competitive industry salary. Employees’ higher-order needs like social needs[3], esteem needs[4] and self-actualization needs[5] are not yet fully satisfied as may be evidenced by the turnover of employees.

Expectancy theory (Appendix C)
Out of the 3 variables that are concerned with the Expectancy Theory, Google has no problem with effort-performance linkage[6] since most of its employees are hard working. When it comes to the performance-reward linkage[7] and the attractiveness of reward[8] though, Google is facing a problem. Most of its employees are leaving the company since they may deem that the rewards they receive do not match the efforts they exert in the company. Also, the financial perks and monetary benefits are becoming less attractive to the highly talented employee since they might have different end goals for themselves.

• Google should focus on giving its employees more financial benefits and cater on their lower-order needs. o Pros:
▪ These might entice Google employees to stay and not leave the company ▪ There is a possibility that more people are attracted to work for Google o Cons:
o These benefits might affect Google’s financial stability o There is a chance that Google employees are still not enticed and will still leave • Google should focus more on giving its employees more recognition for the work that they have done for the company and concentrate on its employees higher-order needs. o Pros:

▪ These might entice Google employees not to resign...
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