Analysis of Google HR strategy
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“Our employees, who call themselves Googlers, are everything. We hope to recruit many more in the future. We will reward and treat them well.” Larry Page and Sergey Brin, Founders of Google
1. Introduction Managing human resources effectively has become vital to
organizations within the modern and fast‐paced business environment (Caldwell, Chatman, & O'Reilly,1990). Human Resources specialists are
more important in business strategies today where market is dynamic and changeable.
Objectives of the study
To analyze HRM technique and methods To analyze how employees help a company in differentiating itself from its competitors To analyze how companies attract the best -knowledge workers and retain employees in a competitive environment To analyze the innovative HR practices and the 'Best Place to W ork For' culture at Google To analyze the future implications of Google‟s HR practices in the long run
Google.com Background of the Company
Google (illustrations of the company web site presented in Appendix 1 ) is a company that was conceptualized in a dorm room by two Stanford University college students, 24-year-old Larry Page (Larry) and 23 year old Serg ey Brin (Brin), in 1996 (Iyer &Davenport, 2008) and has morphed into one of the greatest technological powerhouses in operation today. It then diversifies into
e-mail, online mapping, office productivity, social networking, and video sharing services. Google was registered in September 1998. It had less than 20 employees and was answering 10,000 search queries each day. A year later, the number increased to 60 million queries a day (company website). Till 1999, Google had no system for generating significant revenues. The company made some money by licensing the search service to other sites. Under pressure from the board to get professional help, the founders recruited Eric Schmidt in early 2001. Schmidt was surprised to discover that every Friday the founders shared Google‟s progress with all the employees and on occasions they included a
detailed financial review (Vogelstein & Burke, 2004). He requested Brin and Page to discontinue the practice but soon realized that the meetings were ingrained in Google's culture and united the staff. In a 10 -person management meeting to discuss ways to generate revenues, Schmidt found that each person had a viewpoint backed by plenty of data. Schmidt realized that Google employees loved to talk it out, jettisoning hierarchy, business silos and layers of management for a flatter, „networked‟ structure where the guy with the best data won (Ben Elgin, 2005).
Organizational Goal and Vision
Google‟s mission statement is “To organize the world” information and make it universally accessible and useful” (Google.com). The work culture and employee empowerment philosophy at Google was apparent from the day the company was launched in 1998. The founders, Larry Page and Sergey Brin, wanted to establish Google as a company that was to be seen as a company run by the geeks (Lashinsky Adam). The HR Department, in its alignment with the business strategy of trying to attract the best minds across the globe to work for Google, has since always aimed to become the strategic partner to the business operations.
Schein (1988) defines the culture as: “The climate and practices that organizations develop around their handling of people, or to the espoused values and credo of an organization”. Organization culture is a rich description of organizational life (Barney, 2002). Organization culture impacts the strategies, motivation levels and the structure of an organization. Schein (1996) describes it as the most powerful and stable force in organizations. Google‟s...
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