What Makes Google a Great Company to Work For - Essay Example

?Google and its HR practices After the recruitment and the apportionment of the employees is carried out, it is duty of the organizations particularly its top management as well as its Human Resources Department (HRD) to actualize an optimal working environment through optimum Human Resource (HR) policies. In that working environment only, a common and feasible organizational culture can be created, which will effectively motivate the employees and will enable the employees to establish a psychological contract. Thus, all these organizational behavior issues are interrelated, and so if a common and effective organizational culture is implemented and works out well, the other two concepts will also work out effectively. To make the ‘different’ employees coordinate and cooperate, a common and effective organizational culture has to be actualized by the organization in line with effective HR policies. When such a culture is implemented, the employees’ mind will become more focused on the targets and tasks, and their motivational levels will get elevated. With highly motivated mind, the employees could contribute maximally to organization’s functioning, resulting in success. When success is achieved, the employees will be aptly rewarded, and these rewards and the success, will make the employees build a psychological contract with their employers. So, this paper will discuss how Google with its effective HR policies is able to positively impact its organizational culture, leading to better motivation and psychological contract, thereby making Google a great company to work for. Background In today’s internet savvy world, Google has become one of the best known brands, making its ‘presence’ or virtual presence in maximal parts of the world. Established by Larry Paige and Sergey Brin in 1998, Google, apart from having physical infrastructures of over one million servers, also has offices world over employing around 25,000 employees. The way, Google provides an optimal working environment for these employees or Googlers (as the Google employees call themselves) only makes them a dream company to work for. Google tops the list of various yearly surveys conducted by prestigious agencies to find the companies that are great places to work for employees. Right from the early days, its founders Larry and Sergey were clear cut that the working environment that will be visible in Google will not be the conventional one. This can be clearly seen in the way, they advertise to prospective employees, “Google is not a conventional company, and we don’t intend to become one. True, we share attributes with the world’s most successful organizations – a focus on innovation and smart business practices comes to mind – but even as we continue to grow, we’re committed to retaining a small-company feel.” (google.com). This wish to maintain a non-conventional and small company feel has made Google to implement an organizational culture and its related HR practices, which not only motivates the current employees, but also evokes the interest of maximum number of prospective employees. “Google is attractive to prospective workers. Worldwide, 760,000 individuals applied for just 3,000 positions in 2006. The firm receives approximately 1,300 resumes per day.” (Griffin and Moorhead 2009, p.218). As mentioned above, Google tops the list of various surveys for the best employers including Fortune magazine's list of great companies to work for, having ranked in the top five for the past four years. Importantly, revenue wise, Google has been showing tremendous growth garnering revenues close to 30 billion dollars, with profits itself is in the range of 8 billion. (U.S. Securities and Exchange Commission 2010). Its’ share price has always been on the upswing. All this financial growth has been achieved within 12 years of its inception, with employees being one of the main beneficiaries in the form of sizable financial rewards and other incentives. This raises the question, whether Google is a great place to work in because of its financial growth, or whether Google has achieved this growth because it is a great place to work in. “Is Google a great place to work because its stock is so high, or is its stock so high because it's a great place to work?” (Hellriegel and Slocum 2009, p.125). Taking the later stance, this part of the paper will show how Google has become a great place to work, thereby positively impacting its financial growth, mainly due to its effective organizational culture, and the resultant high motivation and stronger psychological contract. Organizational Culture According to Edgar Schein (2004, p.17), organizational culture is “…pattern of shared basic assumptions 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, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems”. This model of organizational culture will be applicable in any organization, which has successfully implemented an optimal organizational culture, and Google is one of them. In the simplest term, organizational culture can also be defined as a set of organizational practices or HR practices, which is deep rooted and omnipresent and is ‘religiously’ followed by the employees. In the case of Google, this organizational culture or practices have a unique and optimal feel and look, and that only makes it a great place to work for. This perspective of organizational culture is in line with Robbins (2005) model of organizational culture. “Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations. This system of shared meaning is, on closer examination, a set of key characteristics that the organization values.” (Robbins 2005, p.485). Google by implementing various employee centric measures has created an organizational culture of its own. Without sounding cliched, Google created an organizational culture, which facilitates having maximum fun, even while doing the allocated work, so there is apt balance between fun and work element. There is a view that working environment in Google particularly at its headquarters in Mountain View in California resembles mainly a college campus. “It feels like the brainiest university imaginable - one in which every kid can afford a sports car” (Lashinsky 2010). This is because with HR’s facilitation Googlers can play a wide range of games starting from the usual ones like Table Tennis, Pool, Foosball, etc., to unique ones like beach volleyball, rock climbing, lap pools, etc., on its campus. Actually, certain key HR practices carried out as part of Google’s organizational culture can be visible, even before the Googlers enter their offices. Although, many companies provide transportation options for its employees to reach their offices, what makes Google stand apart is the incorporation of certain aspects. With Silicon Valley being considered a traffic nightmare, every day Google ferries around 1,200 employees to and fro using specially equipped shuttle buses run with bio-diesel. These buses are equipped with wireless internet, exterior racks for bicycles, and also spaces for dogs. With internet access, the employees can check their work mails before hand and can plan out their work during their journey itself, with a fresh and motivated mindset. “…you hop on a Google-chartered bus fueled by biodiesel and equipped with wireless access to the Internet. You get a jump on your work day by checking your e-mail on the way to the Googleplex in Mountain View, California.” (Scott 2008, p.49). As this bus journeys saves the employees from work affecting traffic snarls (Google studies the traffic patterns and operate their buses accordingly) and allows them to plan their work schedule, it gives them a good head start. The key part of common organizational culture is actualizing a physical work environment accordingly. That is, only if the physical work spaces are designed and arranged in a specific optimal way, common organizational culture can be implemented in a more effective manner. This was validated by Ashkanasy, Wilderom and Peterson (2010, p.368) who stated that the design of the work environment and physical artifacts are so tied up with the organizational culture, that having the right physical environment is critical. This is clearly visible inside Google’s offices because it has flexible, modern, playful office design, such as oversize balls in place of office chairs, making work more fun and at the same time motivating. (Griffin and Moorhead 2009). The other practice, which is carried out as part of organizational culture is the option to avail free food. Google with its cafeterias inside its work campus provide gourmet food for breakfast, lunch as well as dinner. This idea to offer free food is Sergey’s and he came up with that idea during Google’s first year of functioning. Leaders will always play a key part in common organizational culture formation by ‘imposing’ or implementing their assumptions and ideas as part of work practices. Leaders will have strong assumptions about the nature of the world, how human relationships will function in an organisational set up, etc, (Schein 2004). On the same lines, Sergey implemented this idea, as he thought that having food in work campus can power optimum thinking and even team work. “Providing free food on site cut down time away from the building getting food. And employees could share ideas and build a sense of community while happily eating healthy gourmet meals.” (Scott 2008, p.50). These practices of offering free and good food have become so popular and enticing that Google has posted their sample menus on its job recruiting Webpages. “The free lunch was listed as one of the "Top 10 Reasons to Work at Google" that is also posted on the Web site.” (Scott 2008, p. 50). Google and HRD also offer other employee centric services as part of the organizational culture, which further motivate them. Health wise, Google has a team of onsite doctors, who can be approached for minor health ailments as well as for regular testing, including eye exams and cholesterol testing. In addition, there is a the maternity leave policy, which gives new mothers additional 6 weeks of paid leave to take care of their newborns. New fathers are also given around 7 weeks of paid leave anytime during the first year of birth. In addition, Googlers can have their clothes dry cleaned, car washed with needed oil changes, hair cut, also can work out in the gym, get a massage, study Mandarin, Japanese, Spanish, and French (Hellriegel and Slocum 2009). All these employees-centric HR practices implemented as part of organizational culture has been successfully going on, making the employees stay at the Google’s offices an exciting and at the same encouraging experience. With these practices motivating the employees and making them productive, they have become integral part of Google’s organizational culture, making the employees continually work for Google and making it the great place to work in. Motivation All the above discussed HR practices as part of organizational culture are key motivating factors for the Googlers. As mentioned earlier, if an organizational culture works out well, motivation and psychological contract will automatically actualize, and same is the case with Google. These HR practices positively impacts the mind as well as the functioning of the employees in various ways, leading to heightened motivation. There is no question that the level of services and perks, Google provides to its employees creates increased employee motivation. (Stabile 2008). In addition, Google further motivates it employees through another set of HR practices. According to Herzberg's two-factor theory good salary and other financial rewards is a good motivational factor. If the organization pays employees lesser wages than the industry standards, then it will lead to de-motivation. The other key factor is, salary and importantly the rewards should be given in an unbiased manner, only based on the employees’ performance, their contribution to the organizational goals and processes, and not based on extraneous reasons. Equity Theory of motivation also toes this line, as the employees will decide in fairness by comparisons with others in similar situations. Only, if they decide that the rewards are fair they will be motivated to put their best efforts into various tasks (Beardwell and Claydon 2007). On the same lines, Google pays salaries well above the industry standards and also offers other financial incentives like stock options, thus making Google the great place to work. Googlers receive excellent pay of up to $95,000 annually for starting undergraduates and $130,000 for Master's degree holders. (Griffin and Moorhead 2009, p.218). In addition, the experienced employees also get about 1200 shares of stock options (with each option valued around $500), while the new recruits get smaller option grants, according to their qualification and performance. All these financial related HR practices, which are implemented after carrying out apt appraisal process, elevates the motivation levels of the employees, leading to better productivity. The other key motivational HR practice is giving the employees something called, “Innovation Time Off,” for a full day every week, when the Google employees are encouraged to work on their own project ideas, using the resources inside Google. This practice, apart from promoting innovation, will allow the employees to set aside their routine works and instead focus on their personal technological and business ideas. When a Googler does this, his/her mind could feel refreshed, and they can go back to the normal work schedule with a motivated mind. As Genentech CEO and Google board member Art Levinson says, "What draws people to both companies is the environment, one where they have an ability to pursue things largely on their own terms." (Scott 2008, p.43). This practice is a key motivational tool because employees will work with a motivated mindset in organizations, which encourages them to provide their inputs. Different ideas and views from various employees will be normally given importance in decentralized setups and in line with the postmodern theory. Different views from high number of employees will give rise to varied ideas, among which the best one can be picked up, incorporated as part of organizational strategies and can be implemented. (Dallas, 2002). Psychological Contract Organizations are physical structures, where ‘collage’ of employees from different backgrounds could work. However, all them will coordinate and work under the supervision of leaders, accomplishing the allocated tasks, for the benefit of the organization as well as them. Thus, a kind of psychological contract will exist between the employer and the employee consisting of beliefs, informal obligations, etc. Psychological contract theory has increasingly been used as a framework for understanding relationships between the employers and employees, and importantly focuses on employees' perceptions of what they owe to their employers and what their employers owe to them (Chaudhry, Wayne and Schalk 2009; Robinson 1996). Employee perceptions of what the employers owe them includes optimal employee centric HR practices and services, motivational programs and job satisfaction. If employers actualize these aspects, the employees for their part will continually stay in the organization, providing more productivity leading to a stronger psychological contract. Google, for its part, has offered all the above discussed optimal services, amenities, rewards, etc., making the employees want to continually work for the organization. “Google has easily attracted and retained excellent employees by offering an appealing psychological contract.” (Griffin and Moorhead 2009, p.219). The employees as part of their end of the psychological contract stick to Google. This result in consistency and continuation in various organizational processes as the same set employees will work on the same project for a sizable period. Thus, there is no productivity loss and also Google does not need to input maximum finances as part of training costs. “Google is proud of the fact that only 4% of its workforce leaves each year—less than other tech companies in the Silicon Valley. Losing and replacing employees is expensive and it slows production” (Scott 2008, p.61). As a further extension of their psychological contract, employees work really hard, even working through the nights to complete their tasks. Googlers are super hardworking and it may not be unusual for the engineers to be in the hallways of Google’s headquarters at 3 A.M. discussing about some new mathematical solutions to a Google search problem. (Dessler and Varkkey 2009). The other reason, why Google is able to have a lower attrition rate and longer psychological contract is because; it spends a lot of time and resources, when recruiting its employees. Without using the normal HR practices like resume analysis, psychometric tests, etc, Google adopts a different path. After conducting online tests to judge the candidates' technical skills and even their attitude, they will be put through a series of interviews, passing which only, they will be recruited. The most original part of recruitment at Google is the multiple, lengthy interviews-as many as eight interviews per potential hire. (Girard 2009, p.59). Thus, by recruiting the employees through such a strong process, Google wants to bring in employees who exhibit strong skills and at the same understanding and attachment to the Google’s organizational culture, which in turn will lead to psychological contract. “When the right people are brought onboard – with the skills, interest and fit with Google’s culture – fewer of them leave.” (Great Place to Work Institute 2008). Conclusion From the above analysis, it is clear that Google has achieved the tag of being one of the greatest places to work because of its actualization of an optimal organizational culture and related HR practices, which maximally motivates the employees and make them establish a stronger psychological contract. The services and the amenities available to the Googlers are one of the best in the world, and those HR based practices creates an optimal and motivating work environment for them, allowing them to exhibit their creativity as well as productivity. The employees even while relaxing and refreshing through these services, plan their work schedule, and also come up with great ideas and strategies. Thus, Google has actualized an exciting and at the same time motivating work environment or organizational culture, leading them to provide heightened productivity and a long term psychological contract, thus making Google the greatest place to work in. References Ashkanasy, NN., Wilderom, CPM and Peterson, MF 2010, The Handbook of Organizational Culture and Climate, SAGE, London. Beardwell, J and Claydon, T 2007, Human Resource Management: a contemporary approach, Prentice Hall, Harlow. Dallas, J 2002, “The new managerialism and diversity on corporate boards of directors”, Tulane Law Review, vol.76, pp. 1363-1391. Dessler, G and Varkkey, B 2009, Human Resource Management, 11/e, Pearson Education India, New Delhi Chaudhry, A., Wayne, SJ and Schalk, R 2009, “A Sensemaking Model of Employee Evaluation of Psychological Contract”, The Journal of Applied Behavioral Science, vol. 45, no. 4, pp.498-520 Great Place to Work Institute 2008, Google: Take Two, viewed on April 27, 2011 http://resources.greatplacetowork.com/article/pdf/100-best-2008-google.pdf. Girard, B 2009, The Google way: how one company is revolutionizing management as we know it, No Starch Press, London. Google.com, Life at Google Headquarters, viewed on April 27, 2011 http://www.google.com/events/treasurehunt2008/mountainview.html Griffin, RW and Moorhead, G 2009, Organizational Behavior: Managing People and Organizations, Cengage Learning, London. Hellriegel, D and Slocum, JW 2009, Organizational Behavior, Cengage Learning, London. Lashinsky, A 2010, Life inside Google, viewed on April 27, 2011 http://money.cnn.com/galleries/2007/fortune/0701/gallery.Google_life/index.html Robbins, SP 2005, Organizational Behavior, Prentice Hall, New York. Robinson, SL 1996, “Trust and Breach of the Psychological Contract”, Administrative Science Quarterly, vol. 41 Schein, EH 2004, Organizational Culture and Leadership, 3rd. ed. Jossey-Bass, San Francisco. Scott, VA 2008, Google: The Wonderful World of Work and Play at Google, Greenwood Publishing Group, London. Stabile, SJ 2008, “Google Benefits or Google's Benefit?” Journal of Business and Technlology Law, vol. 3, no. 1, pp.97-107 U.S. Securities and Exchange Commission 2010, Form 10-K, Washington, D.C.: United States of America. Part II, Item 6, viewed on April 27, 2011 http://www.sec.gov/Archives/edgar/data/1288776/000119312511032930/d10k.htm. Read More