Google's Organizational Culture

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European University - MBA

Management Skills – Group A

Case Study 1: “Google”
23 October 2009

Marion Gruber
Reinis Onuzans
Steven Teves
Jessica Wernett

Table of Contents

1 Introduction…………………………………………………….………………………3

2 Google’s future growth……………………………………………………………….4

2.1 Organizational Culture: Facilitating Aspects…………….……………….4 2.2 Organizational Culture: Constraining Aspects……..……………….……6

3 Recommendations……………………………………………………………………8

4 References………………………………………………...…………………………..9

5 Table of Figures…………………………………………….……………….………10

1 Introduction

Reading the case study “Google’s HR Dilemma” by Mridu Verma, we have gained some knowledge about Google’s success story.

Within 11 years the company has grown to a global enterprise employing around 20,000 people. Nowadays Google is not associated just with search service. it is also known for working in advertising, publishing, software and Gmail. Google has bought many companies, the best known is YouTube. In the 11 years time the company is running successfully with growing revenue every year. Nothing seems to stop it, because of their power in the market. Furthermore Google has received many awards in ‘’Best Place to Work’’ and has always been known for satisfied and motivated employees. This is attracting new professionals with a high potential, therefore Google is likely to expand and develop new ideas.

The case study reveals Google’s organizational culture and structure. It is very unusual, however it proves to work. Case study tells how they provide positive work environment, what kind of people are hired and how Google plan their innovations. The main concern is if they can grow and still be successful with present structure in the company. Everything needs to be changed from time to time in order to maintain achievements.

Our report is going to look at how organizational structure will be affected by Google’s presumable growth. We will discuss if any variations should be made, and if the company’s culture will assist or not in its potential growth. Each of us has an opinion whether of not something needs to be changed to improve Google’s future prospects. However all of us believe that some changes should take place. Therefore, we have come up with several suggestions.

2 Google’s future growth

To what extend is their organizational culture going to facilitate/constrain their future growth?

Corporate Culture is defined as „A blend of values, beliefs, taboos, symbols, rituals and myths all companies develop over time”[1].

Google’s organizational culture has gone through a couple of changes. According to an article from “The Economist”, Google has a product development system that was working in an informal way, which was working fine when Google was still in the beginning phase of what it has become today. “But now that it is a giant with 20,000 employees, the firm risks stifling potential money-spinners with a burgeoning bureaucracy”.[2]

So is their way of operating still applicable when the corporation is expanding at this rate? Let us identify the pro’s and cons if Google sticks to its organizational culture as it is.

2.1 Organizational Culture: Facilitating Aspects

The case study has informed us that all engineers are given twenty percent of their time to work on their own ideas. The organizational culture has been working very well over the last years where employees’ morale has been uplifted and gave them flexibility which always resulted positively. We have taken the liberty to compare Google’s current organizational culture with Mr. Abraham Maslow’s principles of human needs, to identify the positive aspects of Google’s work environment as it is.

[pic]

Figure 1: Maslow’s Hierarchy of Needs
Source; http://stanleybronstein.com/blog/maslow.jpg

Basic needs such as the physiological and safety, should be assured in every company to ensure the minimum level of motivation an satisfaction of...
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