Google has been one of the most well known search engines in the world for many years now. The organization is well known for getting people the information that they need when they want it. This type of a company will encounter issues that a normal business wouldn’t however. The organizational structure is very different because they are made up of many shareholders that have a say in what the company does and turns into. In this paper many questions will be addressed and answered about how Google’s organization works and what could improve it.
Insights on Organizational Design
Google has a very different organizational structure than most companies have to deal with. It is made up of many different share holders and this makes it hard to keep the organization in the levels of the company. Sergey Brin and Larry Page are the actual owners of Google and in order to keep that standing they have had to structure things very differently. They set up a dual-class voting structure for public ownership of the company. This will ultimately give Brin and Page the power over all of the other stockholders and they will be able to stay in control of the company in the future no matter how many people invest in its stock. Brin and Page will get ten votes after the IPO versus everyone else only getting one. This will keep them in control and will eliminate the potential that someday the stockholders could take over the company and they would be kicked out of the picture.
Google’s culture is informal, equal, involvement, and empowerment and it has an aversion to bureaucracy. They feel that if they operate with very little bureaucracy it will encourage their engineers to develop good ideas at a faster pace. There are ten principles that Google relies on:
-“Focus on the user and all else will follow”
-“It’s best to do one thing really, really well.”
-“Fast is better than slow.”
-“Democracy on the Web works.”
-“You don’t need to be at your desk to need an answer.” -“You can make money without doing evil.”
- “There’s always more information out there.”
-“The need for information crosses all borders.”
-“You can be serious without a suit.”
-“Great just isn’t good enough.”
These ten principles seem like a very laid back approach to the structure of a company, but that seems to be how Brin and Page want it to be. This is a very democratic and simple way to design a company and if it works for them then why change it?
The way that Google has structured itself and divided up the stock has put Brin and Page in a position to which they will be able to retain most of the power of the company aside from the stockholders. The questions that the other stockholders have about the way that the company is structured will not have a very large affect on the overall future of it. They will have very little say in the decisions of how to run the company.
With Google’s success also came a very large wealth for not only the owners, but the staff who has invested in the stock options and work for the company on a regular basis. This could present challenges within the company because they have to continue to keep their workers happy in order to retain them. There are some contractors that may not have made as much money as others, but Google needs to also find a way to keep them motivated to continue coming up with good and innovative ideas.
Google has faced a lot of competition already in the beginning stages of the product, but there are many more that a wait. They have already fought through challenges set in by very large companies like Amazon, AOL, and eBay. These companies have more of a solid customer base than Google does, but that doesn’t appeal to Google because their goal is to keep customers coming back voluntarily versus having to lock them in. Currently Microsoft is in the process of creating a new search engine that will be unique to its product. This could be the...