System in Google
Google is one of the most successful companies, which has
achieved a tremendous success within a short period of time.
In fact, the company had benefited from the dot boom which
was the characteristic of the late 1990s and in a short period
of time the market value of the company had multiplied consistently.
Today, the market value of Google exceeds the market of value
of such leading American companies as General Motors, for
instance. In such a way, Google, which was oriented on the
market of IT and innovations, reached unparalleled market
results overtaking large multinational corporations. However,
the innovative nature of the business of Google was not the
only factor that determined a commercial success of the company.
In this respect, the management system of the company plays
a very important role and, to a significant extent, defines
the development of the company. Moreover, the effective human
resource management is the basis of the effective market performance
of Google since in the knowledge-based industry human resources
are crucial for the commercial success of any company.
On analyzing the current position of Google in the market,
it is necessary to underline the fact that the company is
worth $23 billion (Stort and Helft, 43) and is one of the
largest companies of the US. Today, the company employs over
19 thousand employees and, according to the Fortune Magazine,
the company is one of the best places to work. In fact, such
a progress is really impressing, taking into consideration
the fact that the company was founded in 1998 and within less
than a decade became one of the leading companies of the US.
Google takes in active part in various projects and closely
cooperates with the government, while its brand is recognizable
worldwide. Such a popularity of the company makes Google one
of the most desirable places to work.
However, it is worth mentioning the fact that from the financial
point of view the work in Google may be not as attractive
as the work in competitive companies. For instance, a system
administrator working in Google can earn no more than $35,000
that is apparently lower compared to the average level of
earning of system administrators in the industry. Nevertheless,
the relatively low salary does not prevent system administrators
as well as other specialists get employed in the company.
In stark contrast, they are willing to work within the company.
In this respect, it should be said that the financial position
of Google’s employee is not as bad as one may think
on analyzing the level of earnings in the company. Along with
the salary, it is necessary to take into consideration the
possibility for many early employees of the company to be
competitively compensated by participation in the company’s
remarkable equity growth (Carr, 123). In such a way, the general
revenue of employees of Google is comparable to that of the
major competitors of the company and is close to the average
in the industry.
At the same time, one of the major factors, which stimulate
and motivate employees to work in Google, is the unique organizational
culture and atmosphere which dominates within the organization.
In general, the human resource management of the company is
mainly oriented on the implementation of democratic principles
and it is possible to define the management style of the company
as liberal since Google is not focused on some strict rules
and regulations and its organizational structure is not rigid
as the structure of many other companies, especially large
one, operating in the US. To put it more precisely, since
the foundation of the company, Google was interested in the
employment of well-qualified and very prospective employees.
What is meant here is the fact that the company, which had
started to operate in the knowledge-based, high tech industry,
needed employees which could introduce and develop some innovative
ideas and effectively within the company.
To increase the effectiveness of work of employees and improve
the performance of the entire organization, Google attempted
to create the most comfortable conditions for its employees
in order to stimulate employees’ creativity and productive
work. As a result, the company introduced some principles
which became fundamental for its management style. For instance,
one of the major principles of the company in relation to
employees is the idea that “you can be serious without
a suit” (Vise and Malseed, 112). In fact, this slogan
perfectly illustrates the democratic nature of the company’s
management style and its attitude to employees. Google does
not actually impose strict demands concerning employees’
appearance or model of behavior.
What is really important for the company is the work itself.
Employees working within Google should feel free to express
their ideas and implement them in practice as long as they
can be effectively implemented and bring considerable profits
to the company and its employees. To achieve good results,
employees do not need to follow a strict dress code or some
rigid rules which regulated their behavior. The company stands
on the ground that such restrictions are artificial and, what
is more important, they create unnecessary barriers employees
are often forced to overcome or accept in other organizations.
Naturally, such restrictions and regulations deteriorate the
performance of employees because they feel bound while working
in such organizations. In contrast, Google stimulates the
creative work of its employees and allow any style of work
which is convenient for employees and which can bring positive
results for the entire company.
However, this management style does not mean that Google does
not care about the effectiveness of work of its employees
or about results of the work. Obviously, employees can work
as they like but they should provide the company with positive
results of their work. The positive result of the work is
impossible if employees do not progress. This means that the
company is interested in the permanent improvement of professional
skills and abilities of its employees. No wonder, one of its
major slogans is “work should be challenging and the
challenge should be fun” (Vise and Malseed, 134). This
principle is also very important because, on the one hand,
it does stimulate the professional growth of employees, while,
on the other hand, it encourages them to enjoy their work.
The latter is particularly important because the effectiveness
and productivity of work increase substantially when employees
are satisfied with their performance. This satisfaction can
be achieved when employees accomplish some challengeable task,
which they probably have never thought to accomplish. In such
a way, employees are not only satisfied with their work but
they are also encouraged and motivated to work on and cope
with new challenges. Moreover, they can feel their professional
growth and progress as they cope with new challenges in their
work. At this point, it is important that employees could
have an opportunity, as they do in Google, to define their
own challenges and objectives. As a result, their work becomes
more personal since they work on a project which is important
not only for the company, but it is also important for employees
themselves because it is their personal challenge they need
to cope with.
Finally, it should be said that Google attempts to create
a positive image of the company. In this respect, it is important
to underline the fact that the formation of the positive image
is oriented not only on customers but also on employees. For
instance, another milestone slogan of the company is “you
can make money without doing evil” (Smith, 91). In practice,
this means that Google lays emphasis on the fact that the
work employees do is useful and even necessary not only for
them, in person, or the company, but for other people as well.
Employees of Google are conscious of the fact that they work
in the high tech industry and their inventions and their regular
work contribute to the progress of the entire mankind.
Thus, taking into account all above mentioned, it is possible
to conclude that the current leadership of Google in its industry
and its tremendous success are, to a significant extent, determined
by the effective management style of the company, which is
oriented on the formation of a positive organizational culture,
democratic, liberal and positive interpersonal relations and
the formation of a positive image of the company among employees
Battelle, John. The Search: How Google and Its Rivals Rewrote
the Rules of Business and Transformed Our Culture. New York:
Allyson and Beacon, 2005.
Carr, David F. "How Google Works." Baseline Magazine.
July 6, 2006.
Smith, David. "The future for Orange could soon be Google
in your pocket." The Guardian. December 17, 2006.
Stort, Louise and Miguel Helft. "Google Buys DoubleClick
for $3.1 Billion." The New York Times. April 13, 2007.
Vise, David and Mark Malseed. The Google Story. Chicago: Delacorte