Beruflich Dokumente
Kultur Dokumente
Strategies Of Google
Submitted To:
Silpy Gupta
Faculty Of HRM
IBS Mumbai
Prepared By:
Yashal Shah
Vidyalakshmi Sharma
Vishal Jamnani
Sakshi Messey
1 Karia
Dhaval
TABLE OF CONTENTS
Sr
No
1
2
3
4
5
Topics
Page
No.
Introduction to HR .
4
1.1
Objectives of the Study .
4
Google.com ..
5
2.1
Background of the company 5
2.2
Goals and Vision ..... 5
2.3
Organization Culture 6
2.4
Organizational Structure
8
2.5
HR as a Strategic Partner of Business........ 9
2.6
Recruitment & Selection
10
2.6.1
How They Decide?............................................................................... 13
2.6.2
Internships
13
2.7
Performance Appraisal
13
2.7.1
Performance Management 14
2.8
Training and Development.
15
2.9
Compensation Structure 16
2.9.1
Perks
& 18
Benefits
2.10
70/20/10 Rule
2.11
Human Resource Planning..
2.12
Best People Practice
2.13
Corporat Social Responsibility..
2.14
Googles Performance via Staff Performance...
2.15
Critics on Hiring Process
2.16
Challenge of Growth
2.17
Gap in Company Nature
Recoomendations and Conclusion.........................................................................................
References...............................................................................................................................
Appendixes...........................................................................................................................
A
Environmentsl atmosphere in Google.
B
Organization Structure..................
C
Organic Culture
D
Standard Recruiting Tools at Google .
E
Reasons to work at Google
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19
19
20
22
23
23
24
25
26
28
28
29
30
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1. INTRODUCTION TO HR:
Managing human resources effectively has become vital to organizations within the modern
and fast-paced business environment, more so as the economy the world over converge into
a synapse of globally connected and independent sectors aimed at preserving and creating
knowledge rather than products and service alone.
HR development acts as the mentor to its employees guiding, training and educating them
in the way of the industry and the organization. Well trained and competent employees,
who are not able to showcase themselves and their organization to the customers in a more
3
effective manner, help in increasing customer satisfaction and overall clientele, by adding
credibility and reputation to the business, Effective HR planning and development bring
quality and loyal workers who are committed and passionate about the success of their
organization.
competitors.
To analyze how the company attract and retain employees in a competitive
environment.
To analyze the innovative HR practices and the Best Place to Work For culture at
Google.
To understand the Training & Development department at Google.
To get a clear picture of Compensation Management and other perks and benefits
2. GOOGLE.COM
2.1. BACKGROUND OF THE COMPANY:
Industry: Media
US Employees
Training
Voluntary Turnover
Job Applicants
Headquarters
CEO
Founded
Ticker Symbol
Website
Source: http://www.google.com/
Founders Larry Page and Sergey Brin met at Stanford University in 1995. By 1996, they
had built a search engine (initially called BackRub) that used links to determine the
importance of individual webpages.
Larry and Sergey named the search engine they built Google, a play on the word
googol, the mathematical term for a 1 followed by 100 zeros. Google Inc. was born in
1998, when Sun co-founder Andy Bechtolsheim wrote a check for $100,000 to that entity
which until then didnt exist.
Google Inc., the 12 year old technology service provider based in Mountain View,
California, was voted the number one Best Company to Work for in America for the second
year in a row by its employees. It is the biggest brand name in the world today a brand,
which is built upon a culture that is high on trust, low on politics, great at sharing resources
and wealth, and full of meaning and significance.
2.2. GOALS & VISION:
Googles mission statement is To organize the world information and make it universally
accessible and useful. The work culture and employee empowerement 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 geeks. The HR Department, in its alignment with the
business strategy of trying to attract the best minds across the globe to work for Google.
2.3. ORGANIZATIONAL CULTURE:
Schein 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.
Schein describes culture as the most powerful and stable force in organizations. Googles
organizational culture can be analyzed thought Ouchis framework. Ouchi studied three
different companys culture and saw that the differences between those explained a part of
the companys success. Depending on his theory it seems that Google Inc. is the type Z US
firm.
Fig 1 Ouchis Framework
Cultural
Characteristics
Commitment
Type
(Japanese Type
model)
to Life contract
(typical Type
(credited
American model)
Short term contract
American model)
Long term contract
employees
Evaluation
Careers
Control
on specialty
specialty based
Implicit and informal Explicit and formal
specialty
Implicit and formal
Decision Making
Grouped
Grouped
Responsibility
consensual
Collective
Global (individual at
family)
work)
and Individual
Individual
(individual tasks)
and
consensual
Individual
Ouchi argues that the culture of the Type Z firms help those to outperform typical American
firms. The main reason it that firms like Google systematically invests in their people and
operations over the long run and so obtain steady and significant improvements in the longterm performance.
Fortune describes Google as the best company in the world to work for. Fortune dint find it
difficult to rate their efficiency or effectiveness. Google does more business than their
competitors and at a lower cost.
Google tries to maintain open culture, in which everyone is a contributor and feels
comfortable in sharing ideas and opinions. For example, employees can have free snacks or
bring their pet at the office or go to the gym and spa salon (environmental atmosphere
illustrated in Appendix A). Employees can benefit from flexible working hours and have
some time for their self-directed projects, which shows the importance of the creativity and
innovation from each and in every department. Moreover control is done through informal
and implicit mechanism. There arent any managerial hierarchies or management structure,
which gives the employees complete freedom.
In their weekly meetings, the Googlers are given the freedom to ask questions directly to
Larry, Sergey and any other executives about any issues in the company. Their offices and
cafes are designed to increase interaction between Googlers within and across teams.
Google boasts some unique cultural aspects:
Local touches like ski gondolas in Zurich, expressing each offices unique location
and personality.
Dogs, lava lamps and massage chairs.
Double rooms with three or four team members. There are few single rooms.
Football, darts, assorted video games, pianos, ping-pong tables, lap pools, gyms that
brainstorming.
Snacks and drinks to keep Googlers going throughout the day.
They build such loyalty from their employees that many of the employees see each other
and the Google management as their family.
Googles organizational culture is very strong. Google hires people that embody their
companys values and feel the same intense desire for unlimited amount of information.
This desire allows the employees to work towards the same goal.
Googles culture is combination of things. It is ethical, customer-responsive, and spiritual.
Google encourages the employees to be creative in problem solving. These employees are
given freedom in their jobs and which they never misuse it. Employees are rewarded for
their individual as well as team accomplishments.
It is this sort of culture that creates individuals that have the desire and the motivation to
stay with a company.
Reinforcing its emphasis on building a healthy work culture, Google hired Stacy Savides
Sullivan as the Chief Culture Office in 2000. Google has managed to present the
combination of a financially successful company offering a highly sought after work
environment. It lays importance on offering a work-life balance by promoting the culture of
flexi-timings for Googlers, breaking the norm of fixed mandatory working hours. Googlers
enjoy the flexibility of working from home while also choosing a convenient time to come
to work.
2.4. ORGANIZATIONAL STRUCTURE:
Organizationally, Google maintains a casual and democratic atmosphere, resulting in its
distinction as a Flat Company (See Appendix B). The company does not boast a large
middle management, and upper management is so hands on, its hard to qualify them in
separate category. Teams are made up of members with equal authority and a certain level
of autonomy is maintained. They are highly collaborative culture. There is no top-down
hierarchy.
Googles culture can be also analyzed and defined as an organic structure (See Appendix
C). This type of structure is characterized by flexibility, empowerment and teamwork. This
structure defines well Googles organization as it is non-hierarchical and cross-functional:
there arent any barriers between the different departments.
Executives encourage
employees and managers to work directly with each other, instead of through more formal
channels. Googles open communication contributes to the organizational structure and
their idea policy is one of the most substantial managerial features. Also the top
management leaves their office door open in order for workers to feel free to come and talk
directly. It gives the staff a sense that they contribute to the companys business objectives.
The structure promotes corporate transparency because employees are able to witness and
contribute to the leadership function. As a result, almost every employee has access to
almost any managerial meeting. Googles management realizes that every employee has a
stake in the company and employees in turn feel a responsibility for the outcome of the
companys projects.
Googles methods attract top talent because their management focuses on controlling
through shared vision. Where many companies have bureaucratic and linear controls,
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Google allows employees to set and maintain their own standards. These open policies
translate into a distinctive corporate structure that inspires good nature and guidance.
Employees love to work at Google, but not just because of perks such as flexible work time
and bonuses, they also love the work that comes from the cross-functional leadership
structure.
2.5. HR AS A STRATEGIC PARTNER OF BUSINESS:
HR department at any organization has a unique challenge it has to ensure that the
employees are motivated and committed to the organization with complete integrity and
honesty. However, at the same time, the HR department has to ensure that the market
dynamics are not adversely affected by the sheer volumes of investment involved in the
process.
HR practices at Google are named People Operations, which is designed to underline the
fact that it is not a mere administrative function, but ensures to build a strong employeeemployer relationship. Googles HR practices clearly reveal the impressive results of the
companys approach, hich help in increasing employee productivity. The HR team is made
up of general HR business partners, internal consultant, line managers, learning and
development, and recruitment teams. They are also specialists in compensation and
benefits, but most of the team members work as general HR business partners and internal
consultants.
The business model strategy of not merely trying, but actually delivering the best solution
has been a benchmark of the work culture at Google. The workplaces and office locations
all over the world are built over sprawling spaces which provide the employees not only
with every possible space for creativity and innovation, but also ensures that the
employees ideas are duly and uncompomisingly studied, worked on, and acknowledged.
2.6. RECRUITMENT & SELECTION AT GOOGLE:
Google gets more than 2 million applications a year. Applicants passing initial screening by
recruiters will be asked to do a phone interview first then round of about five meet-andgreets with mangers and other team members.
Googles spokesman Jordan Newman said, Candidates can wear jeans to interviews. We
want people to feel comfortable because this is really a fun place to be.
Recruitment at Google is the first and foremost step in the overall HR processes. Hiring the
right people is a key HR philosophy at Google the median age of employment at Google
is 27 years, making it the youngest workforce across the industry.
As Google has a monopoly in web based search engine they follow a rigorous and quality
assured process for its internal vacancies. Unlike other IT companies, Google tries to fulfill
its requirements by developing skills in the existing employees. As soon as there is any
vacancy, the HR department tries to find out the suitable existing employees who can be
replaced in the vacant position. If any further knowledge or training is required Google
ensures that the resources undergo proper training and development program before joining
that position.
If HR department fails to identify such skills and talents from the existing employees then
they go for talent acquisition from the market. Before conducting the recruitment and
selection process the management ensures whether the documents describing the roles and
responsibilities are proper or not. For this the HR managers conduct several meetings with
the Head engineers to know the technical requirement, which is expected from the
candidates. The reports cover different aspects like reports to, tenure, compensation
package, scope of responsibilities, and duties, authority, budget, staff team, location,
conditions,
knowledge,
skills,
experience
values,
performance
standards,
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recruiting. It has developed a recruiting machine to categorize the jobs for the
recruitment process. This contains details of the entire organization, requirements of
the organization from the leaders to the entry-level employees. Through its branding,
public relations, and recruiting efforts, Google has attracted many professionals from
every industry and university. Google takes measures to change the way the employees
work so as to attract and retain the best employees. It has successfully implemented the
standard best practice tools for recruiting functions (See Appendix D). Known as
People Operations, the HR team at Google employs an Applicant Tracking System,
that enables the recruiter to keep an account of the number of resumes posted on
Googles website, screen them and shortlist candidates for the recruitment process.
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The students will be selected on the basis of the interviews. Google take care of the
learning as well as their stay. They provide accommodation facilities and a competitive
stipend. Because they want the experience to be pleasant.
2.7. PERFORMANCE APPRAISAL:
Google schedules their performance reviews twice a year major one at the end of the year
and a smaller one mid year. The techniques used for Performance Appraisal are as
follows:
3600 Performance: At Google review consists of a self-assessment, a set of peer
reviews, subordinate reviews as well as supervisors.
In the self-assessment, the employees need to summarize their major
accomplishment and their accomplishment since the last review. The SWOT
analysis also needs to be done with respect to the job expectations.
For peer reviews, employees need to choose 3-8 peers and they will review the
employee. Sometimes managers offer peers to write the reviews. The peer review
3 purposes:
teamwork, etc. and if the peer is not comfortable in sharing the information directly
with the employee they can give feedback to the managers.
They feed into them managers decision regarding their performance rating.
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The class has three steps: attention training, self-knowledge and self-mastery, and the
creation of useful mental habits. More than 1,000 Google employees have taken the class,
and theres a waiting list of 30 when its offered, four times a year. The class accepts 60
people and runs seven weeks.
It is mandatory for all employees to undergo T&D sessions for a minimum of 120
hours/year, which is about three times the industry average in North America of 43
hours/year. This shows the amount of effort, time and money that Google invests in its
employees to keep them abreast of the professional and technological advancements.
At Google headquarters, employees are offered hundreds of free classes. But one of the
most popular is called S.I.Y or Search Inside Yourself, taught by engineer and Google
employees.
Google offers a special class for new managers and executives where they are taught how
to exert influence in more subtle ways. Even before the formation of GoogleEDU in 2010,
Google would assign promising young product managers career and management coaches
who would teach them how to negotiate better salaries, improve their presentation skills, or
talk through the reasons why someone should or shouldn't leave to found a start-up,
remembers one former employee who left the company in 2007. These programs
engendered a lot of loyalty.
2.9. COMPENSATION STRUCTURE:
Google stands out as being one of the most sought after and yet one of the most
underplaying employers in the industry. Employees are attracted not to the short-term
monetary return from work, but rather to support system that could help them to create
anything. The innovative Stock Option system at Google ensures that all employees get
compensated competitively.
Googles compensation program, also called pay-for-performance, focuses on providing
reward for strong performance as well as training for overcoming weaknesses for
underperformers. This philosophy of Google was applied to all Google employees, and
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there was an increase in the portion of compensation in accordance with the levels of
leadership and responsibility.
Google typically pays its employees 12% above market. There is an assumption that many
of the employees that work at Google are top performers, this increase wasnt about
performance but more about their commitment to be the very best in terms of
compensation. They wanted to do that across the board not just for certain individuals. In
Googles case it was in addition to their merit process. It was about raising all of their
salaries to levels that exceed at the competition.
Googlers also fetch good salaries. While fresh MBAs are offered salaries between $80,000
and $120,000 per annum, experienced engineers draw an annual package of $130,000 along
with 800 options. According to a research conducted by Glassdoor in 2008, software
engineers at Google draw an enviable compensation package as compared to their
counterparts at Microsoft or Yahoo! (Figure 1)
Fig 2 Salary comparison of Googles Software engineers with competitors (in$)
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So strong is the work culture and employee committed bent upon technology solutions
rather than tangible compensation. Google became the first company where the Board of
Directors requested for a reduction in salaries and compensation because they felt they
were getting more paid than they needed. All the employees greed, and in 2008-09, the
employees formally demanded a wage cut. During the same period, the turnover was
1.43%.
When low performers are put on performance improvement plans about 25 percent of the
time they improve their performance, 50 percent of the time they move to a different role
within the company that may suit them better and 25 percent of the time they leave.
2.9.1. PERKS & BENEFITS:
restaurants.
Unlimited sick leaves
27 days of paid time off after one year of employment.
Global Education Leave Program enables employees to take a leave of absence to
headquarter offices.
Classes on a variety of subjects from estate planning and home purchasing to
foreign language lessons in French, Spanish, Japanese and Mandarin.
In order to create a learning organization, Google put team member within a few feet of
each other. The result being that everyone shares an office with one or more member of the
team. With every team member being knowledgeable sitting next to each other, knowledge
sharing is a part of life everyday at Google. And with immediate access to the entire team,
Total Quality Management is coordinated within the team.
2.11. HUMAN RESOURCE PLANNING:
Google hiring process takes from one to four months and it is inconvenient for applicants,
however it is necessary from business performance view. In order to hire new employee
management should approve head count; also staff can only be hired into approved
positions. All new positions must pass through the respective budget approvals for each
area. Additionally, recruitment at Google is not the sole responsibility of the HR team. The
need to hire the right people across the organization becomes the outlook of every
employee, turning Goggle into a recruiting machine. Currently Googles head count has
more than tripled, however managers need time for approval of each position in order to
make the right decision.
2.12. BEST PEOPLE PRACTICE:
Creating a great workplace requires more than a specific set of programs and practices there is no set of required benefits, resources or perks that works for all. Best Companies
develop their own unique cultures in which employees are able to say "I trust the people I
work for, have pride in what I do, and enjoy the people I work with."
There are certain dimensions of how it plays out in the workplace. They are as follows:
Best Practices that Build Credibility:
o Communications are open and acceptable.
o Competence in coordinating human and material resources.
o Integrity in carrying out vision with consistency.
Best Practices that Show Respect:
o Supporting professional development and showing appreciation.
o Collaboration with employees on relevant decisions.
o Caring for employees as individuals with personal lives.
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On a scale of 1 to 100, top-ranked Google scored 80.84. With the exception of Berkshire
Hathaway, consumer-oriented companies made up the majority of the top 20 CSRI
performers
The big picture:
They have worked hard to minimize the environment impact of services. Google uses
less energy than it takes to do a single load of laundry. According to an independent
study, Google uses very little of the world's electricity (less than 0.01%)
Google is first major internet service company to gain external certification of high
environmental standards throughout US data centers.
Efficiency:
Google data centers uses 50% less energy than any other typical data center
Renewable energy:
Google have committed over $1 billion to renewable energy projects
Product:
A business using Gmail decreases its environmental impact by up to 98%. In fact,
small businesses with less than 50 people can save up to 172.8 kWh of energy and
101.6 kg of carbon per user per year by using Gmail instead of locally hosted email.
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Google Apps has enabled the company to reduce operating costs by approximately
$350,000..." thus the people using Gmail decrease its environmental impact by up to
98%.
2.14. GOOGLES PERFORMANCE VIA STAFF PERFORMANCE:
The success of Googles products and services is mainly because of innovation expected by
the company from every employee and 20% time given by the company for the purpose. It
is obvious that the HR activities and policies are actually driving Googles corporate
business success. To encourage creativity and interaction among employees, Googles
office is designed so as to provide colors, lighting and shared room. Googles HR practices
reveal that the companys approach helped in increasing employee productivity. The
average Google employee generated more than $1 million in revenue each year. This helps
Google leverage its workforce productivity, which in turn enhances employee morale.
Googles HR policies and work culture are unique and the managers are allowed to try new
approaches, to make mistakes and learn from failure. The organizations recruiting function
is different from traditional methodology. The companys focus is on reducing recruiting
cost and increasing the success of the organization by hiring good performers who have the
capability to become top performers. Google acknowledges that talent management plays a
significant role in its success. Google is considered by many personnel as the best place to
work mainly because of its fun at work and various notable reasons (See Appendix E).
According to management experts from Wharton University, All the perks provided by
Google mean business. Peter Cappelli, Management Professor and Director of the Center
for HR at Wharton said, These benefits help companies recruit people who are willing to
spend almost all of their time at work. Googles main aim is to achieve several goals such
as attract the best knowledge-workers, help the employees work long hours by feeding
them gourmet meals on-site, handling other time-consuming personal chores and to remain
as Googlers for longer period of time.
2.15. CRITICS ON HIRING PROCESS:
Googles recruiting function is innovative, there is no formal, well communicated
recruitment strategy. Although, nearly every candidate at Google commented on its slow
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screening, recruiting, and interview process. Several posts on Why Google Employees
Quit suggest that hiring process in Google is very long, time-consuming and annoying.
Logan, former employee of Google posted I experiences the same painful hiring process
all of you did. The reputation of Google is why I worked there for three and a half year. I
took pride in where I worked and the work I was doing. I knew I could get paid more
elsewhere but the caliber of people to my left and right was amazing. I learned a lot and
have benefited from the time I spent at Google.
There are lots of similar complains about hiring process and it is true that Googles hiring
process is time-consuming, both for employees and for Google.
2.16. CHALLENGE OF GROWTH:
As Google continues to grow bigger, it faces the continual challenge of being able to handle
successfully its open and fun-filled work culture. Kevin Werbach, assistant professor of
Legal Studies and Business Ethics at Wharton University said, Google has done a
remarkable job in growing from a small, private company to a 15,000 person organization
in just a few years, without killing its startup-like innovation culture. But, analysts are
concerned that as the company grows, it is difficult for it to provide the same financial and
other incentives for its employees. Googles meteoric growth also poses a threat to its
intimate team culture and its ability to handle creative conflicts among Googlers. Further
Google struggles to keep its culture away from the shackles of bureaucracy while being
able to stimulate its employees. Avoiding organizational lethargy from creeping in while
constantly launching new products is also not an easy feat to accomplish. Hornsey believes
that overcoming its growing pains is the biggest challenge faced by HR at Google
(Business Week, 2005). She added, so many companies have started off very innovative,
creative and vibrant, but have then failed and become bureaucratic. Its always a danger
when you grow.
performance management function. Because every hire has been extensively screened and
Google believes, All employees have high potential and if someone fails, Google
managers take the attitude that theyre to blame, not the employee.
Googles unconventional work culture has stirred many debates. A 12-hour working day
has become a norm at Google, owing to its wide array of employee benefits.
Further, its recruitment approach, where candidates grades are preferred over prior work
experience has also emerged as a matter of concern. Gross asserts, Some people would
argue that working at Google is more exciting, but Google employees are working
incredible hours.
growth with the collegiate atmosphere of the company is essential to sustain its success in
the future. Google has built a culture where a well chosen elite accommodates flexibility,
shifting roles and above all else, urgency. As Google grows in size and strength, it is a
challenge to maintain the pace of innovation and convey a sense of empowerment to
Googles engineers and product managers. There is a risk of the organization losing its
dynamism and becoming more bureaucratic.
Employees should be encouraged to start independent initiatives and they should have the
time and resources to pursue new ideas. Google should be careful in balancing business and
pleasure activities. Although providing freedom to engineers might attract talent and
encourage innovation, but the company should not deviate from its core business strategy
which directly affects the revenue.
4. REFERENCES:
A Look Inside the Google Talent Machine [online] Available at
http://humanresourcesmagazine.com.au/articles/B1/0C0429B1.asp?Type=60&category=1223
24
Baker Loren, Google Receives 1,000,000 Job Applications a Year [online] Available at
http://www.searchenginejournal.com/google-receives-1000000-job-applications-a-year/4308/
Barney J.B. (2002), Gaining And Sustaining Competitive Advantage, Prentice Hall, 2nd Edition.
Benefits, Google Inc [online] Available at
http://www.google.com/support/jobs/bin/static.py?page=benefits.html
http://www.rer.net/articles/db/95872408130C40EC8AD8B3FF0975D145.asp
Tom Burns and G.M. Stalker (1961) Organic Systems [online] Available at
http://valuebasedmanagement.net/methods_burns_mechanistic_organic_systems.html
Top 10 Reasons to Work at Google [online]
http://www.google.com/support/jobs/bin/static.py?page=about.html&about=top10
5. APPENDIX
Appendix A Environmental atmosphere in Google
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Source: http://www.impactlab.net/2009/03/01/working-for-google-has-its-advantages/
Source:http://www.impactlab.net/2009/03/01/working-for-google-has-its-advantages/
Appendix B Organizational Structure
27
Source: http://www.theofficialboard.com/org-chart/google
Changing
Distribution of tasks
Task scope
and methods
How is task conformance
The spread of commitment to the concern beyond any technical
ensured
Structure
of
definition
control,
Network, Presumed Community of Interest
authority
and
communication
Locating of knowledge
Communication
members of concern
Governance for operations
Information and advice rather than instructions and decisions
and working behavior
Values
Prestige
obedience
Importance and prestige attach to affiliations and expertise valid in the
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the program.
Google hires a large no. of PHDs on the premise that enjoy
exploring areas that no one else has explored. To accomplish
this, they have developed a network of direct relationships
with over 350 professors at major schools. It also has an
Professional networking
Recruiter training
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