Amit Kumar Shaw

Harshita M V
Hemlata Choudhary Organizational Behaviour - 3
Patil Shradha Kailas
Samrat Datta
Soumya Sengupta
Tannavi Singh

Google
 Organisation Structure of Google

Mission:
• To organize world's information and make it universally accessible and
useful

Vision
• to provide access to the world’s information in one click.

Corporate Culture of Google:

Google uses the function-based definition and product

based definition for grouping people.

However, the flat structure helps employees to bypass

Google follows a cross-functional structure which is middle-management and report directly to CEO, Larry
Page, when required.
technically a matrix organisation structure with a Small-
Company
considerable degree of flatness. Open Open work
Work Work ambience
culture culture Smart
with
Main Characteristics emphasis
Hands-on
on
excellence work exp.
Innovative
Work
Function-based definition Product-based definition Flatness emphasis
 Stakeholders of Google

Users:
• Individuals or organization that use google products who may not necessarily pay the company
• They define the company’s popularity which corresponds to the firm’s business value

Employees:
• Addresses the employees as major stakeholders through competitive compensation and fun workplace design
• Compensation strategy include high salaries and various incentives and benefits, such as free meals and flexible workflows

Advertisers and other customers

• Main source of the company’s revenues and directly determine Google’s financial performance
• Plays a crucial part in making the company popular thereby increasing its market reach and effectiveness

Investors
• They are important as stakeholders because they ensure the availability of capital that Google requires for its business
• They keep a track of the usefulness of the products which Google is making, thus ensuring its relevance in the industry
• They are major influencers of the company’s CSR activities , and prioritise research and development strategies to be the company’s holistic approach
towards its CSR activities.

Governments
• Google operates across countries and hence have to deal with several governments and correspondingly their governance principle
• Google’s holistic CSR activities ensures that it follows or complies with the regulatory requirements of all the countries that it operates in

Communities
• Communities are stakeholders who are interested in the direct or indirect benefits that it gets from Google’s CSR activities such as its charity programs, philanthropy
and related activities
 Strategy Direction and Organization design
External Environment
• IOT & m/c learning emphasis
• AI & Cloud Computing
• Blockchain development and its
mixed reviews from users
CEO, Top
Management team
Internal Situation
• Superior infrastructure- Most
powerful search engine,
extensive portfolio of products
and patented technology
• Popularity and trust among
users and investors
• Big players like IBM have
already made decent progress
on AI front
• Leadership has switched to
Sundar Pichai who is renowned
across the industry for his
vision and strong interpersonal
skills
Strategic Intent
Mission: To organize world's
information and make it
universally accessible and
useful
Effectiveness
Outcomes
• Regarded as the leader in
Organization Design the industry that it operates
• Cross functional org. str. in
With equal and high • Google has ended its 2018’s
emphasis on learning and Q3 quarter with $27.77
efficiency billion revenue
• Its Information and Control • It has been the most
Operational goals systems are regarded as preferred choice for
• Take leverage from its benchmarks across industry advertisers - $24.1 billion
•
relevant database collected Again, its HR policies are revenue from advertising
regarded as benchmarks • Ranked as the 5th most
on its superior Infrastructure
across industry – is preferred workspace to
Competitive Strategy
• Focus on Differentiation (+ regarded as one of the most work in by CNBC.com
preferred org. to work
Cost Leadership) strategy
among the people in
general
• An open work culture that
emphasizes on innovative
thinking
• Partnered with giants like
Tesla, Facebook, IBM and
Amazon
 Dynamic
Capabilities
• The management has frequently
demonstrated what the next
important area for Google will be.
• The management decision to
assign several hundred engineers
to develop Google+.
• through the constant expectation
of external change present in the
minds of management and other
employees.
These principles, together with Google’s practical applications of them could potentially be used as a platform for a totally new management concept- not a Lean
concept this time, but a concept for Management for continuous innovation in a rapidly changing world.
People Centric
Approach
Google
An ambidextrous organization
• The culture emphasizes transparency
and openness, and therefore also trust
in employees
• In its recruitment process, Google 70–20–10 percent rule
emphasis on hiring the right people 70% of employee’s time should be spent on core business,
who can manage in an env of rapid 20% on projects related to core and
change and where there is a high level 10%on projects on projects not related to core business
of empowerment. to realize their ideas or the ideas of others
• Voluntary education
• Each year, Google removes
unnecessary bureaucratic features in
order to give each employee more
freedom and to facilitate At Google, each employee’s performance is valued according to both
communication and collaboration the aspects of production and innovation.
between colleagues.
Successfully driving Innovation

In addition, the firm’s
organizational structure has
considerable flatness.
A flat organizational structure
means that Google’s employees,
teams or groups can bypass
middle management and report
directly to
CEO Larry Page. Employees can
also meet and share information
across teams.
For example, the company groups
employees for developing Nexus
devices.
The firm also groups employees for
its Fiber business.
Contingency Framework For Environmental
Uncertainty and Organisational Response
From, a “worker perspective” these type of
“flat environments” require individuals to be
deeply motivated towards changing, failing,
revising and being highly self-disciplined.
These are NOT 9-to-5 by the clock type
environments, nor is decision making clearly
defined. In these types of environments
there can be significant levels of high levels
of dissatisfaction due to a “seemingly endless
of incompleteness”.
For example, the company has a
Sales Operations team,
an Engineering & Design Team, and a
Product Management Team, among
others. The firm also uses products
as basis
for grouping employees
 Generic Strategy based on Porter’s
COMPETITIVE ADVANTAGES CORE COMPETENCIES Model
Google’s primary strategy is differentiation which
involves developing certain unique capabilities
Superior which give the company a competitive advantage
infrastructure Google Search

Miles and Snow’s Strategy Typology

Economies of
scale
Analyzer – Maintaining0existing products and
services and at the same time innovating
Patents and IPs Advertising constantly and growing wherever possible

Innovative Edge Glocalization

Resource Based
View

Competitive Applications
edge through and Software
M&A
 Organisational Conflict and Politics

Categories of conflict resolution strategies Sources of Conflict and Rational and Political Models

Power and Political Tactics

 Organizational Decision
Making
 The best way to arrive at the beating heart of great management is to have less of it. This is the Google way, and it works.
 Focus on sharing leadership, clearing roadblocks and inspiring teams

Contingency Framework for Using

Choice Processes in the Carnegie Model
decision Models
Mission

Core
Values
Snippet from Google Code of Ethics Element for Successful Change Ambidextrous Approach

Google Innovations Corporate Entrepreneurship Culture matters the most

Information Technology Evolution Balanced Score card
Financial

What is the strategy for

growth, profitability and
risk
Key Objectives: Increased
net revenue and profit

Internal Business
Customer
Processes

How do our
customers perceive
us Overall At what processes we
Key Objectives:
Increase in
Mission must excel
Key Objectives:
customer base and Strategy Search , mobile search ,
social networking,
retention of
customers
Goals

How do we sustain our

ability to be innovative
and to change?
Key Objective:
Response time, database
enhancement

Learning and Growth

 Organizational Life Cycle

COLLECTIVE
An initial public offering (IPO) took place on August
19, 2004, and Google moved to its headquarters in
Mountain View, California, nicknamed the Googleplex.
ELABORATION
2001–2007: from a simple web search to Universal Search
Since 2008: Ever-improving processing of information
Google has developed into an incredibly complex, universal search engine.
In August 2015, Google announced plans to reorganize its various interests as a
conglomerate called Alphabet Inc.

02 04

01
ENTREPRENEURIAL
Google was founded in 1998 by Larry Page and Sergey Brin
while they were Ph.D. students at Stanford University in
California. Together they own about 14 percent of its shares
and control 56 percent of the stockholder voting power
through super voting stock. They incorporated Google as a
privately held company on September 4, 1998
03
FORMALIZATION
2000: Invention of Google AdWords
The competition had already begun to
integrate banner display advertisements into
their search engine results. But it wasn’t until
midway through this year that they launched
the now world famous Google AdWords.
 Departmental Technology
Implications

To facilitate ease of
technology sharing

To encourage
technological
innovations
ANALYZABILITY

Frequent technical
workshops &
resource
database(Codelabs)

To encourage idea
sharing and
innovation (g2g
network)
VARIETY Source: Understanding the Theory & Design of Organizations