The Google Way to Do Business
Rafael Appe Pinto
Embry Riddle Aeronautical University
Business over the years had changed dramatically. With the advance of technology and the way we share information, there was a need for a change on most business structures. The old style pyramid, where there is an absolute boss and it breaks down into a chain of command through the different levels of an organization, have been proven outdated on today’s business world. Although this old method is still very relevant on an assembly line type of business, many companies had to change their management style in order to adapt to their product or service. As our society become more and more diverse, companies feel a need to update their strategies not only to satisfy the different types of costumers, but also to better manage their own employees, or associates in today’s terms, and get the best performance out of each one of them. Many companies realize the importance of those changes, and they have been looking in different ways to improve the effectiveness of their team.
Google is roughly a young company but its brand has been incorporated in our lives in such a way that many other companies in the sector had either struggled or failed to accomplish. The simple idea of organizing the information from the internet transformed Google into a multibillion dollar company that is known all over the world. One might think that to reach such accomplishment in a small period of time, a company must have a very complex management system, but Google has proven totally the opposite, and it has been really successful about it. Origin of Google
Google was founded in the mid 90’s by Sergey Brin and Larry Paige in, two grad students at Stanford University. The idea came from a research project at the University and the issue that at the time, internet search engines were not effective. The companies were more concerned about selling advertisement than organizing information. Based on that, Sergey and Larry decided to download all the content from the Web and organize it. They designed software that would track, download, and store the pages on a server computer. During that time, they decided to use their research for their Phd. Stanford university does not claim ownership of researches done by their students, so it stimulates the students to use their creativity at their full potential. That idea was carried by Sergey and Larry when they founded Google and it was a base for the company’s management style. They tried to license the software different times but were unsuccessful. Companies at the time thought search engines were not profitable and were just an added option for their websites, so they were not interested in doing business or trying to improve that particular area since the majority of their revenue was due to advertisement. It was not only until 1998 that Sergey and Larry got a break from a venture capitalist and was able to finally get the business going. With a $100,000 check with no contracts or strings attached they were able to leave Stanford and dedicate themselves full time with the company. Reducing the barriers of management
In an organization like Google, the decision making of a task is not concentrated in the hands of just one person, or a manager. Rather, all the process of decision making and completion of a task are shared among all the workers. Every opinion is considered and decision is reached through a consensus among peers. This way, it involves all workers and productivity, in theory, is increased because workers will fill more as part of the team and get more motivated to produced, as opposed to what happens on a hierarchical company, where sometimes, employees do not have any saying on the process. Another, characteristic of a flat organization, is that information flows better. Since there is not an upper management to be controlling the work, comments and...
Please join StudyMode to read the full document