Google´s future growth|
A case study about Google and its organizational culture and growth| |
Introduction to question 22
Body and findings3
Definition of organizational culture3
Types of organizational culture4
Organizational culture and change5
Organizational culture at Google6
Recommendations and opinions7
Introduction to question 2
Google has become a revolutionizing company with incredible growth in the last thirteen years. Founded in 1998 Google is now known as the “World’s Best Search Engine”, and is considered both the fastest growing and the most innovative Internet Company worldwide. From 1998 to 2004 revenues had doubled and in 2005 revenues were worth $ 6 billion dollars. Google started with 20 employees and 10,000 search queries per day, but already one year later they dealt with 60 million queries per day while by 2005 and with 50,000 employees Google entered the list of “Most Powerful Brands” on 38th position. Very soon after its inception, the two founders Larry Page and Sergy Brin, hired Eric Schmidt as professional help in terms of generating revenue. Google had and has a very special recruitment system. An employee has to go through a very tough hiring process which will at times take up to numerous months. Page and Brin are very picky about their future employees, but nevertheless they believed in top people with experience as well as in University graduates. In 2005 Google received an average 1,500 resumes per day and hired 25 people a week. People ‘wanted’ to work there. With Google’s success also came a very large wealth for not only the owners, but also for the staff that has invested in the stock options and worked for the company on a regular basis. Now, when the organization has grown very big and plans on continue to grow at the same rate as before they face some though challenges, mainly how to maintain their innovative and entrepreneurial atmosphere. In our report we will analyze Google’s organizational culture and its effect on Google’s future growth. We will also present important strategic issues the company is facing, as well as recommendations to resolve those issues.
Body and findings
In this section of the report, we will go through the theory which we feel is important to answer the questions of the case. This theory will then be the basis for our recommendations and opinions later in the report. Organizational culture
To be able to answer the question of how Google’s organizational culture is going to facilitate or constrain their future growth, we need to first establish what organizational culture is. Below, we will equalize corporate culture and organizational culture since the organizations we are talking about are companies. Definition of organizational culture
As we will see below, it is not easy to define what organizational culture is, it is something that is very subjective and debatable. By looking at a few different sources we will try to determine what organizational culture is. Organizational culture is something within the organization that consists of both top-down and bottom-up information within the firm. It is about the interaction between different elements and individuals of an organization and the information which this interaction generates. According to another article, organizational culture is values and beliefs that are shared between the members of an organization. It is something that influences the member’s behavior in different ways depending on the values and beliefs that are thriving within the organization. Edgar H. Schein argues that not all organizations have a specific culture, while others have a very strong one. If a company has high employee turnover rates, in some cases they won’t have been able to form a certain culture due to the lack of stability and common history. On the other hand, if members of a company have worked together for a...