ORGANIZATIONAL CULTURE IN GOOGLE INC.

INTRODUCTION

Organizational culture has a strong impact on organization and management, which emerges

from its nature and its content. Organizational culture is defined as a system of assumptions,

values, norms, and attitudes, manifested through symbols which the members of an

organization have developed and adopted through mutual experience and which help them

determine the meaning of the world around them and how to behave in it. Assumptions,

values, norms, and attitudes that the members of an organization share significantly shape

their interpretative schemes. Through interpretative schemes the members of an organization

assign meanings to occurrences within and outside the organization and understand the reality
that surrounds them (Fiske, 1991).

The behaviour, actions, and interactions of the members of an organization emerge from the

meaning that the reality of that organization has for them. Organizational culture is a form of

collective interpretative scheme shared by the members of an organization, due to which they

assign meanings to occurrences, people, and events within and outside of the organization in

a similar way and treat them similarly (Schein, 2004). Google is one of the few companies
that successfully combine technological innovation with a strong organizational culture.

CASE STUDY

Google (NASDAQ: GOOG) is one of the best-known and most admired companies around

the world, so much so that “googling” is the term many use to refer to searching information

on the Web. What started out as a student project by two Stanford University graduates—

Larry Page and Sergey Brin—in 1996, Google became the most frequently used Web search

engine on the Internet with 1 billion searches per day in 2009, as well as other innovative

applications such as Gmail, Google Earth, Google Maps, and Picasa. Google grew from 10

employees working in a garage in Palo Alto to 10,000 employees operating around the world
by 2009. What is the formula behind this success?
Google strives to operate based on solid principles that may be traced back to its founders. In

a world crowded with search engines, they were probably the first company that put users

first. Their mission statement summarizes their commitment to end-user needs: “To organize

the world’s information and to make it universally accessible and useful.” While other

companies were focused on marketing their sites and increasing advertising revenues, Google

stripped the search page of all distractions and presented users with a blank page consisting

only of a company logo and a search box. Google resisted pop-up advertising, because the

company felt that it was annoying to end-users. They insisted that all their advertisements

would be clearly marked as “sponsored links.” This emphasis on improving user experience

and always putting it before making more money in the short term seems to have been critical
to their success.

Keeping their employees happy is also a value they take to heart. Google created a unique

work environment that attracts, motivates, and retains the best players in the field. Google

was ranked as the number 1 “Best Place to Work For” by Fortunemagazine in 2007 and

number 4 in 2010. This is not surprising if one looks closer to how Google treats employees.

On their Mountain View, California, campus called the “Googleplex,” employees are treated

to free gourmet food options including sushi bars and espresso stations. In fact, many

employees complain that once they started working for Google, they tend to gain 10 to 15

pounds! Employees have access to gyms, shower facilities, video games, on-site child care,

and doctors. Google provides 4 months of paternal leave with 75% of full pay and offers

$500 for take-out meals for families with a newborn. These perks create a place where

employees feel that they are treated well and their needs are taken care of. Moreover, they

contribute to the feeling that they are working at a unique and cool place that is different from
everywhere else they may have worked.

In addition, Google encourages employee risk taking and innovation. How is this done?

When a vice president in charge of the company’s advertising system made a mistake costing
the company millions of dollars and apologized for the mistake, she was commended by
Larry Page, who congratulated her for making the mistake and noting that he would rather

run a company where they are moving quickly and doing too much, as opposed to being too

cautious and doing too little. This attitude toward acting fast and accepting the cost of

resulting mistakes as a natural consequence of working on the cutting edge may explain why

the company is performing much ahead of competitors such as Microsoft and Yahoo! One of

the current challenges for Google is to expand to new fields outside of their Web search

engine business. To promote new ideas, Google encourages all engineers to spend 20% of
their time working on their own ideas.

Google’s culture is reflected in their decision making as well. Decisions at Google are made

in teams. Even the company management is in the hands of a triad: Larry Page and Sergey

Brin hired Eric Schmidt to act as the CEO of the company, and they are reportedly leading

the company by consensus. In other words, this is not a company where decisions are made

by the senior person in charge and then implemented top down. It is common for several

small teams to attack each problem and for employees to try to influence each other using
rational persuasion and data.

Gut feeling has little impact on how decisions are made. In some meetings, people reportedly

are not allowed to say “I think…” but instead must say “the data suggest….” To facilitate

teamwork, employees work in open office environments where private offices are assigned

only to a select few. Even Kai-Fu Lee, the famous employee whose defection from Microsoft

was the target of a lawsuit, did not get his own office and shared a cubicle with two other
employees.

How do they maintain these unique values? In a company emphasizing hiring the smartest

people, it is very likely that they will attract big egos that may be difficult to work with.

Google realizes that its strength comes from its “small company” values that emphasize risk

taking, agility, and cooperation. Therefore, they take their hiring process very seriously.
Hiring is extremely competitive and getting to work at Google is not unlike applying to a
college. Candidates may be asked to write essays about how they will perform their future
jobs.

Recently, they targeted potential new employees using billboards featuring brain teasers

directing potential candidates to a Web site where they were subjected to more brain teasers.

Each candidate may be interviewed by as many as eight people on several occasions.

Through this scrutiny, they are trying to select “Googley” employees who will share the

company’s values, perform at high levels, and be liked by others within the company. Will

this culture survive in the long run? It may be too early to tell, given that the company was
only founded

in 1998. The founders emphasized that their initial public offering (IPO) would not change

their culture and they would not introduce more rules or change the way things are done in
Google to please Wall Street.

ANALYSIS

A number of researchers have conducted a review of the concept of organizational culture.

Walter R. Freytag define the culture of the organization as:

“ ... a distint and shared set of conscious and unconscious assumptions and values

that binds organizational members together and prescribes appropriate patters of

behavior.”[1]

Freytag focuses on the assumptions and values that are consciously or unconsciously

cohesion that binds an organization. Assumptions and values that determine the behavior
patterns of members in the organization.

Other researchers such as Larissa A. Grunig, et al, define organizational culture as

“ ... the sum total of shared values, symbols, meaning, beliefs, assumption, and
expectations that organize and integrate a group of people who work together.”[2]
Definition Grunig et.al. This is similar to the one previously submitted Freytag, namely that

organizational culture is the totality of values, symbols, meanings, assumptions, and

expectations are able to organize a group of people working together.

Another definition, and this is the definition of a pioneering theory of organizational culture,

proposed by the Edgar H. Schein. Schein states as organizational culture as focuses on the

assumptions and values that are consciously or unconsciously cohesion that binds an

organization. Assumptions and values that determine the behavior patterns of members in the
organization.

Other researchers such as Larissa A. Grunig, et al, define organizational culture as

“.... a pattern of shared basic assumption that was learned by a group as it solved

its problems of external adaptation and internal integration, that has worked well

enough to be considered valid and, therefore, to be taught to new member as the

correct way to perceive, think, and feel in relation to those problem.”[3]

Schein states that organizational culture is a pattern of basic assumptions that are valid and

work within the organization. A series of basic assumptions can be studied by the members of

the organization. Organizational culture can act as a conduit of a solution to the problem of

organization, acts as an adapter to factors outside the organization that developed, as well as
in conducting internal integration of its members.

A more detailed definition of the organizational culture given by Matt Alvesson, that when
talking about the culture of the organization, then

“ ... seems to mean talking about the importance for people of symbolism – of

rituals, myths, stories and legends – and about the interpretation of events, ideas,

and experiences tha are influenced and shaped by the groups within they live. I will

also, however, take organizational culture to include values and assumptions about
social reality ...”[4]
Synthesis of this understanding is the organizational culture is the totality of values, symbols,

meanings, assumptions, and expectations that can provide solutions for factors outside the
organization that developed and able to be the glue for its members.

Google also maintains its organizational culture on the simple terms of futuristic and selfless

thought which is to be shared and followed, as rightly put across by one of its founders

Sergey Brin say that he actually don’t think keeping the culture is a goal. I think improving

the culture is. Furthermore, as described by Google’s Chief culture officer Stacy Savides

Sullivan that he would characterize the culture as one that is team-oriented, very collaborative

and encouraging people to think non-traditionally, different from where they ever worked

before–working with integrity and for the good of the company and for the good of the world,

which is tied to our overall mission of making information accessible to the world”

(Following the strategies of the global market Google understands that the organizational

culture should be modified with accordance to the national culture making it one among the

best in the industry. Which increasing globalization, performance and values of the

employees aligned with the company’s strategy and manipulate culture to achieve the
organizational objective according to (Ogbonna and Harris, 2002).

Organizationally, Google maintains a casual and democratic atmosphere, resulting in its

distinction as a “Flat” company. The company does not boast a large middle management,

and upper management is so hands on, it’s hard to qualify them in a separate category. Teams
are made up of members with equal authority and a certain level of autonomy is maintained.

This techno-democracy takes a good deal of effort to maintain. In order to secure it, a sort of
bread and circuses environment is created. Google boasts some unique cultural aspects:

 Local touches like ski gondolas in Zurich, expressing each office's

unique location and personality.
 Dogs, lava lamps, and massage chairs.
 Double rooms (few single offices!) with three or four team members.
  Foozball, darts, assorted video games, pianos, ping pong tables, lap
pools, gyms that include yoga and dance classes.
 Social groups of all kinds, such as meditation classes, film clubs, wine
tasting groups, and salsa dance clubs.
 Health food at a wide variety of cafés, and outdoor seating for
sunshine brainstorming.
 Snacks and drinks to keep Googlers going throughout the day.

The Google culture is probably one of the most positive, influential, all-encompassing,

productivity-inducing environments the world has ever seen. This sort high praise is typical

from industry experts, and there is no shortage of emulation recommendation in industry

magazines.

Etzioni typology of organization are filed: (1) Coercive Organizations; (2) Utilitarian

Organizations; and (3) Normative Organization. Coercive organization is an organization

whose members are trapped in physical and economic reasons that have to abide by any

regulations imposed by the authorities. Utilitiarian organization is an organization in which

the members may be possible to work for a just and fair result is also a tendency to adhere to

some rules are essential in addition to the workers preparing the norms and rules that protect

themselves. Normative Organization is an organization in which the individual contributed to

the commitment because it considers the organization is the same as the goals themselves.

Based on the typology proposed by Etizoni organization, then Google including normative

organization because all members of the organization have the same vision with Google,

which is trying to promote innovation and passion to advance the organization become a

leader in the world of dot-com. While the type of corporate culture by Cameron and Quinn,
Handy such as:
 1. Cultural Power (Power Culture). A source of strength that highlight
core control. there are few rules or procedures and competitive
atmosphere, oriented on the power, and politically.
2. Cultural Role (Role Culture). Work is controlled by the procedures
and regulations. Role or job description is more important than the
people who fill these positions.
3. Cultural Support (Support Culture). The goal is to bring together the
right people and let them do the job. Its influence is based more on
the strength of the expert rather than personal strength or position.
4. Cultural People (People Culture). The individual is the main point, the
company is only there to serve individuals in the company.

Based on these types, then the prevailing corporate culture at Google is People Culture. This
is stated in the statement of Larry Page as CEO of Google, which recognizes that:

"The people behind the scene which makes Google the company it is today. We hire

people who are smart and diligent, and we prefer the ability over experience.

Although Google employees share the same goals and vision for the company, we

accept all people from different backgrounds and with a diversity of languages,

reflecting the global users we serve. Outside of work, Google employees perform a

variety of hobbies, ranging from cycling to beekeeping, from playing frisbee to

dance the foxtrot. We try to maintain an open culture that is often associated with

the company longer, which is where everyone is an active contributor and feel

comfortable to share ideas and opinions. In our weekly mandatory meetings

("TGIF")-not including those via email or in the cafe-Google employees to ask

questions directly to Larry, Sergey, and other executives about the company's

problems, no matter how many. Our offices and cafes is designed to encourage

interaction between Google employee in the team and other intergroup, as well as
to turn the conversation about work and play.
Google's culture is very informal. Googlers working in groups in a very dense, with three or

four staff to share space with couches and dogs. Corporate virtually invisible hierarchy and
employees who do not wear uniforms.

CONCLUSION

Google created a unique work environment that attracts, motivates, and retains the best

players in the field. Google encourages employee risk taking and innovation. Google’s

culture is reflected in their decision making as well. Decisions at Google are made in teams.

Even the company management is in the hands of a triad: Larry Page and Sergey Brin hired

Eric Schmidt to act as the CEO of the company, and they are reportedly leading the company
by consensus.

Synthesis of understanding organizational culture is the totality of values, symbols, meanings,

assumptions, and expectations that can provide solutions to the growing factors outside the

organization and able to be the glue for its members. Based on the typology proposed by

Etizoni organization, then Google including normative organization because all members of

the organization have the same vision with Google, which is trying to promote innovation

and passion to advance the organization become a leader in the world of dot-com. While the

type of corporate culture by Cameron and Quinn, Handy the prevailing corporate culture at
Google is People Culture.