Human Resource in the Media: Google Inc - Case Study Example

Human Resource in the Media Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission HUMAN RESOURCE IN THE MEDIA Abstract Human resource management has evolved to become a major of maintaining a competitive advantage in the highly competitive and dynamic market. The concept of HRM has a long history substituting other management traditions like Industrial Relations (IR) and Personnel Management (PM) (Sisson, 1993). The major propeller of this discipline has been the profound efforts to explore and analyze a combination of the best practices that can be put into utility in a firm aimed at enhancing both the performance of the firm and the competitiveness in the market (Purcell, 1999). The practice of ideal HRM has several factors that influence its eventual outcome in the fulfillment of the reasons that instigated its establishment in the first place. Some of these prerequisites include but not limited to rewards and recognition, employee development andperformance management. All these tenets require a strategic approach which will play an integral role in not only enhancing the employees’ relationship but also elevating the overall performance of the firm. An in-depth synergy between all levels of organizational management is fundamental if at all HRM practices are to generate positive outcomes. Most of these practices have been put into extensive utility in Google Inc. which has resulted in not only elevated performance and growth but also being favorably positioned to get ant retain the best human capital in the market. This paper will analyze some of these factors and how they have played a paramount role in ensuring the advanced competitiveness of Google Inc. in the extremely competitive market. Keywords: Human Resource Management (HRM), Performance, Competitive advantage Google Inc.; strategic human resource management practices As previously mentioned, the launching of Google Inc. in 2008 has seen the corporation rise to become one of the most powerful firms in the planet. According to Kuntze and Matulich (2011), Google Inc. is proud to have offices in 14 states and in 36 countries worldwide, which includes but not limited to United Arab Emirates, Australia, China, India, Denmark, Finland, Turkey, Israel and Mexico. The corporation has been ranked by Millward Brown Optimer’s Brandz in the 100 most powerful brands in the world whereby the firm has been in the top ten slots since 2006 and has scooped the niche of the most valuable and powerful brand in the years 2007, 2008 and 2009. Traditionally established as a mere search website, Google Inc. has evolved to incorporate other products and services which include web search, online translation, document sharing, image search and product searches such as blogs and it still remains in a favorable niche in terms of information technology and services (Kuntze & Matulich, 2011). One cannot ignore the fundamental role the Human Resource Management (HRM) tenet has played in the accomplishment of the above monumental accomplishments. It is imperative to contextualize the concept of HRM before embarking on the analysis of the HRM practices that have helped Google Inc. in attaining sustainable competitive advantage in the market. Concept and Context of Human Resource Management The concept of HRM can basically be defined as a strategic approach to managing the relations in employment which emphasizes that leveraging people’s capabilities is vital in the efforts to achieve competitive advantage (Bratton & Gold, 2003). Diverse researches which have been conducted in different organizations have for long supported the fact that human resource practices have a great effect on the outcomes of the organization based on the fact that they are vital in determining and shaping the attitude and behaviors of the employees. This fact is supported by Ostroff and Bowen (2000) who determined that human resource practices are crucial in shaping the attitude of the workforce through molding the perceptions of the employees about the nature of the organization, what it is like and also informing their expectations of the magnitude and depth of their future relationship with the organization. In addition, there is usually a generic presumption that there is often an interaction between the human resource practices with perceptions of institutional support to impact on the commitment of the employee. At Google Inc., some of the best HRM practices exist which have for long been attributed to the overall success of the firm, barely 15 years since its establishment and high rate of leverage of their most competent employees. According to Work Institute, Inc. (2007), the employees in Google Inc. who refer to themselves as Googlers are everything to the company. Against this background, the rudimentary organization of Google is around the capacity and potential to attract and leverage the talent of technologists who are exceptional and also people who engage in business. In this sense, Google has been lucky in hiring and recruiting many of the well-known creative, determined and visionary stars and hopes to continue with this culture in the future by rewarding and treating them exceptionally well as it has always done in the past. This reveals a great tenet of HRM practices at Goggle which not only help in influencing the attitude and commitment of the employees but also creating an exemplary working conditions, conducive for innovations, interaction and exchange of ideas. The subsequent analysis focuses on three major human resource practices which have enabled Goggle Inc. to not only gain the top position as the best firm to work in America, but also gain the much essential competitive advantage in an industry characterized by extensive competition and dynamics instigated by globalization among other factors. Employee development Employee development can be perceived as the overall efforts to improve the skills and knowledge of the employees through initiating certain programs which help the employees heighten their competence in and out of the work place. This is not only integral in the future career growth of the employees but also results in heighted short and long-term performance at the organizational level in terms of increased profit margins, continued expansion, elevated output among other performance indicators. According to a survey on employee development by Esen and Collison (2005), the HR professionals cited some of the top employee development methods but basically, all these methods are founded on some sought of training, for instance, cross-functional training, leadership training, developmental programs and other forms of training programs apart from leadership training. However, there are other methods which are utilized in employee development but they were rated to be least used according to the aforementioned survey. These include job rotation, formal career mentoring programs and job sharing. Nonetheless, this does not imply that they are unnecessary at the employees’ development efforts at the organizational level. Google Inc. has portrayed exemplary skills in employee development which has had direct effects in elevating its performance, increased competence among the employees and heightened commitment. According to Work Institute, Inc. (2007), Google Inc. uses massive amount of funds in the employees development efforts aimed at promoting professional advancement and growth most notably through an education reimbursement plan. This is whereby the employees in the corporation (commonly referred as ‘Googlers’) have the probability of being reimbursed up to $8000 per annum on work-relevant and pre-approved courses which are offered through academic institutions and other external training providers. This is best epitomized whereby the engineers can register for an MS at Stanford program which is a one year program at Stanford University structures to elevate the skills and knowledge of the engineers through a master’s program in diverse technical realms. In these instances, the costs that are incurred by the employees during this program are comprehensively covered by Google. In addition, Google Inc. provides its employees with a Global Education Leave Program. This program targets the ‘Googlers’ who aspire to take a leave of absence and engage in full time pursue for further education. This education leave has a maximum period of 5 years and the reimbursement towards the same rise to a maximum of $150,000. This pilot program was initially announced in 2006 and a substantial number of employees are utilizing it up to date (Work Institute, Inc., 2007). On the other hand, the corporation also has its internal training programs which are geared towards acquainting the employees with the recent developments in the technology world which plays an integral role in prompting the innovation attitude and vigor among the employees. This has been key in developing the skills and knowledge of the personnel in the institution. In addition, this has ensured the Google Inc. develop a competent human resource team which perfectly meets the four criteria of resource based view which are value, rarity, inimitability and non-substitutability resulting in sustained competitive advantage. Rewards and recognition It is undoubted that comprehensive rewards and recognition of the employees in a corporation is a chief tenet in the ideal HR practices. It is worth noting that this tenet can apply to both individual and collective levels whereby either an individual or a group of employees can attain recognition and subsequent reward for their efforts in a certain endeavor. Majority of the companies has become cognizant of the necessity of rewarding and recognizing their employees which has seen them initiate prudent formal and informal reward programs whose uses are gaining more prominence and increasing in prevalence among different companies. The Corporate Leadership Board (2006) identified some of the key objectives and outcomes of the reward and recognition programs in companies. Figure 1.0: Key goals of reward and recognition programs Source: Corporate Leadership Board, 2006, Creating an Effective Reward and Recognition Program, Corporate Leadership Council, Arlington. Reward and recognition programs can thus be perceived as a valuable and cost-effective tool aimed at elevating the morale of the employees, the productivity of the firm, revenue and profits as well as curtailing lower turnover, stress and absenteeism among the employees (The Corporate Leadership Board, 2006). Google Inc. is endowed with an extensive reward and recognition program which achieves or the above goals and objectives analyzed in figure 1.0. Work Institute, Inc. (2007) determined that the Founder’s Award is the most meaningful and high profile recognition program whose main intent is to offer exceptional rewards for remarkable team achievements. Despite the fact that there is no viable measurement for accomplishments, the rudimentary fact is that the team that is in receipt of the reward and recognition has engaged in tireless efforts which have culminated in the generation of a product that has created massive value to Google. In this regard, the members of a team receive the award based on the magnitude of their contribution and involvement in the project and the award to an individual member can reach a high of a few million dollars. The effectiveness reward and recognition program at Goggle is epitomized whereby in 2005, there was an awarding of approximately $45 million in restricted stock to Googlers engaged in 11 different projects. This is instrumental in cultivating the attitude of innovation in the firm which is founded on the tendency to reward collective and individual projects (Work Institute, Inc., 2007). Consequently, majority of the most novel innovations at Google have been outcomes of such products which have had significant impacts in expanding the portfolio of the corporation. Kuntze and Matulich (2011) also noted the significance of elevated motivation towards collective efforts to enhance innovation in the firm. This is best exemplified by the 20% Creative Time Program whereby Google inspires all of its engineers to devote 20% of their work time in projects that interest them. This program is not only instrumental in challenging the employees and making enjoy doing what they do best but has also been pivotal in providing some of the best business opportunities for the corporation. In actual sense, Google News, Gmail, AdSense and Orkut are just some of the Google services that emanated from extensive individual projects which were highly recognized and rewarded. It is thus apparent that the practice of reward and recognition is a crucial tenet in the practice of HRM in the sense that it does not only motivate the employees and elevating their morale in work but also culminates in heightened levels of innovation in a firm resulting in expanded products and services range. This has been vital in ensuring that Google maintain favorable competitive advantage amid intensified competition in the market as well as improved financial growth. Performance management Performance management can be perceived as a process of designing a work environment in which the personnel are empowered to perform at the optimum of their respective capacity and abilities. It is thus an overall work system that is instigated when a task is effectively defined as required and culminates when the employee exits from the institution. This term has been used by diverse scholars and consultants as a replacement for the traditional appraisal system. According to Martinez (2000), performance management is a strategy which relates to every activity of an institution which is structured in the context of its human resource policies, communication mechanisms, style and culture. The nature of this strategy is influenced by the organizational context and variance from one organization to the other is manifest. The task of performance management in HRM is directly related to the reward and recognition and employees development tenets previously explored. It entails certain constituents and actions like provision of effective training, orientation and education, providing on-going coaching and feedback, negotiation of requisites and accomplishment-based performance standards, measures and outcomes among others. Google Inc. utilizes diverse performance management strategy aimed at appraising the performance of the Googlers while at the same time an interactive session between the employees and the management echelon is conducted aimed at assessing the performance of both levels in the organization. Moreover, ideal interventions that can boost the performance of singular departments and the entire organization are deliberated upon which is instrumental in the creation of a common sense of purpose in the corporation. Perhaps the best example of performance management in Google is the TGIF which is a weekly, get-together of the entire company which was initiated by the co-founders Larry Page and Sergey Brin. This session is used as a platform for welcoming new employees in the firm as well the senior managers presenting news about the company and the Google-related events that have occurred in the past week. This interactive session encompasses reports on the performance of various departments as well as recognizing group and individual efforts (Work Institute, Inc., 2007). Performance management is also confined at the departmental level where employees in different departments convene with their departmental heads and deliberate on the performance of the intra-department groups against the quarterly objectives and proclaimed stretch goals for the department in the upcoming quarter. All the member in the department are welcomed to attend these sessions as well as other personnel who are directly involved in the operations of that department. These sessions entail presentations from senior members of the respective departments as well as training workshops (Work Institute, Inc., 2007). All the above are some of the HRM practices that have propelled Google Inc. into being the best firm to work in in the US. However, the HRM practices in the corporation are not limited to the three analyzed tenets in the above sections but also entail other inputs. Some of these fundamentals are summarized in the subsequent conceptual framework. Figure 1.1: Conceptual framework detailing the human resource practices in a firm. Source: Ivo, AM, 2006. Interplay between all the above practices culminates in enhanced strategic integration, communication, functional flexibility, high commitment, adaptable organizational structure and capacity to manage innovations. Despite the above merits associated with HRM practices at Google Inc., several shortcomings in its practice mar the credibility of the practice. Some of these impediments are analyzed in in the subsequent section. Recommendations Poor management: Despite the corporation being credited for exemplary working environment, there are instances when the management echelon does not portray the ideal management practices. This is epitomized by managers who tend to bring their managerial structures and working styles into the system thus promoting rigidity. As a result, this development comes as a massive disappointment to employees who come into the institution expecting a more flexible model of management. In addition, Kuntze and Matulich (2011) cited that the hiring process in Google Inc. has become a major distress to many people. This is founded on the fact that prospective employees are subjected to a hiring process which is extremely strenuous through many interviews.As a result, the hiring process can go up to a period of nine months. In this regard, Google Inc. ought to find an ideal mechanism to fine-tune its hiring process. This can be done through the setting a maximum time for the procedures which will provide enough time before the notification of candidates about their success or failure in the hiring process. This can be integral in not only reducing the screening and waiting period but also increasing the satisfaction of the prospective employees and the general public in the hiring process. Long working hours: Employees at Google In. are subjected to working for long hours which can pose significant impact on their output and the general performance of the corporation. Kuntze and Matulich (2011) revealed that it is not uncommon to find an engineer in the hallways at 3 a.m. deliberating on a project with fellow colleagues. This has long been perceived as a justification by the corporation for the massive expenses on rewards and benefits to the employees. The impacts of this practice in HRM can pose detrimental impacts on not only the performance of the corporation but also its credibility in the corporate realms. Google ought to revise its working hours timetable in order to ensure that maximum hours of working in a specified timeframe per worker are clearly defined and adhered. This will be imperative in cultivating the improved performance of the Googlers. In addition, the corporation ought to invest more on hiring part-time work force as well as accepting more interns who can have a great impact in reducing the work burden for the regular employees in the corporation. The reward system in Google has also come under massive criticism with some people and groups alluding of unfairness in the reward and recognition framework. Due to the intensified competition for these rewards, some of the employees who engage in genuine efforts but fail to get them often feel overlooked and discriminated against. There have also been allegations of favoritism in the allocation of these rewards which end up being scooped by the executive and not by the general employees (Kuntze & Matulich, 2011). Against this background, Google needs to revise the reward and recognition program so that it can be inclusive to all the employees as opposed to being reserved for only a certain class of personnel in the corporation. This will enhance its credibility among the employees who won’t feel demotivated and left out. In addition, Google often accused of having an unstructured working environment whereby the ‘too much fun’ in the company is bound to drift the alertness of the employees towards the larger organizational vision and mission. This is based on the background that the employees in the corporation are exposed to massive parties and outings which are justified under performance celebration and team building. As a result, the focus of most employees is more drawn towards these functions as opposed to the attainment of the different goals and objectives in the firm. In this regard, the corporation is under an obligation to strike a balance between these functions and the work structure of the employees. Moreover, employees who prefer a more structured and professional working environment and as a result of this massive ‘fun overload’, they tend to feel disoriented and loosing focus. This can also be rectified through cultivating a harmonized balance between the work in the firm and the ‘out of job’ functions. This will ensure that despite these functions being there, the inherent needs of both groups of the employees are best catered for which will enhance an ideal working environment. Lastly, despite the extensive rewards, recognition and other benefits entitled to the employees in this corporation, most of the employees in Google usually have base salaries which are considerably lower than the entire industry average even when these base salaries are complemented by stock options (Kuntze & Matulich, 2011). As a result, the corporation is faced an urgent necessity to review the remuneration program in the firm so as to ensure a rough balance in payments between the executives and the general employees. Conclusion Google Inc. has been cited in diverse media companies as being the best company to work in by any employee in the US. This can be attributed to its steady and calculated HRM practices which have gone a long way in improving both the short and long-term performance of the company. Some of the tenets that have been instrumental in these efforts include but not limited to employees’ development, performance management and reward and recognition among others. Nonetheless, despite this accredited achievements in HRM practices, some gaps still exist which lead to employees’ dissatisfaction and the overall unpleasant picture of the company’s operations. Some of these gaps are evidenced by low pay to some employees, unstructured work environment, unfair reward and recognition program, long working hours among other inherent factors. This calls for immediate address to these gaps in order to boost both the performance of the corporation and its credibility in the corporate world. References Bratton, J., and Gold, J., 2003, Human Resource Management: Theory and Practice, 3rd edn, Palgrave Macmillan, Hampshire. 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Sisson, K., 1993,‘In search of HRM’ British Journal of Industrial Relations, Vol. 31, No.2, pp. 201-210. Work Institute, Inc., 2007, Why is Google so great?, Great Place to Work Institute, New York. Read More