The ultimate measurement on the effectiveness of a company organization structure is definitely how consistent it can grow over the long run. Google from it initial pubic offering price of $85 back in August 19, 2004 to $570 today; it arguable that they have a very effective organization structure. In order to promote innovation and commitment to cost containment; Google invested lot of money to build a highly transparent organization. Having a highly transparent organization, they have make it easy for engineers to share ideas, poll peers, and makes it’s nature to change for the future. As an organization Google use a flat, transparent, non-hierarchical structure. With their two co-founder Larry Page, President of Products and Sergey Brin, President of Technology, CEO Eric Schmidt who was brought in to provide adult supervision making the final decision on production and direction of the company and every single employee out to create the “perfect search engine”. Brin, 32, born into a Jewish family in the Russia, fled to the U.S. in the late 1970s with his parent. Page, 33, grew up obsessed with inventing things; son to parent whose both teaches computer science for a living. Eric, 51, recruited from Novell where he worked as chairman and CEO.
b. Communication Plan.
Google spiritual cultures are plainly stated as “Don’t be evil”. It’s hard to say exactly what is meant by the article by TIME “In Search of the Real Google” written by Adi Ignatius. The author cited a incident with a proposal that went up to the top three, Brin, Page and Eric that might help to explain “Don’t be evil”. The proposal was to add a small sponsored links to image-search results to generate more income. In response, Page asks “We’re not making enough money already?” than every in the room laugh with the proposal turn down. Google focus on improving the customer experience not profit. With it anti-marketing believe, it’s the only $100 billion company that doesn’t run TV commercial. Every Friday, Google hold an all-hands meeting in which they make announcements, introduction, and have question and answer session. These all-hand assemblies help Google communicate effectively within the organization. Google also have “gatekeepers” who manage all the engineers and their ideas. With gatekeepers working as editor, designer, coder and friend to the employee; communications are not an issue at Google. This takes us to Google resource development.
c. Resource Development
Google put it engineers as it soul in the organization. With free food, laundry, gym and an in-house doctor office; Google employee are encourage to feel at home while in the office. Google also came up with a formula for it employee to follow to ensure creativity. Employees have to divide their time at work into three parts: 70 percent are to be devoted to search and advertising, 20 percent on things related to the 70 percent, and 10 percent to far-out ideas. As a result employee has come up with application such as GoogleTalk, Gmail, and also their San Francisco WI-fi initiative giving all San Franciscan free Internet). Now with Google Earth, Gmail, GoogleTalk, Google checkout and many more other product they offer Google are leading the way for all organization. Google competitive advantage is of course it employee and mainly it Search Engine, which was, create by Brin and Page.
d. Core Competency.
Brin and Page came up with their now famous PigeonRank technology, which is the heart of Google’s search engine back in their college years. PageRank “relies uniquely democratic nature of the web by using its vast link structure as an indicator of an individual page's value” is according to Wikipedia. Google rank the relarent of a Page base on the amount of hyperlink or vote the Page get. A page that’s linked to by many pages with a high rank get a high rank it self and a web page with no links would therefor get a low Rank. The weight given to each page are based...
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