Leadership and Management Style at Google - Research Paper Example

Leadership and Management Style at Google Introduction Leadership/ management style is a key determinant of organizational effectiveness, alongside other factors such as a company’s motivational tools and strategies, organizational culture, team and employee empowerment, diversity initiatives, organizational adaptability and response to changeHistorically, Google is one of the companies that has consistently outperformed the larger market and are acknowledged as the employers of choice, according to 2012 Fortune’s 100 Best Companies to Work for (Great Place to Work, 2012). The high rate of success achieved by Google and its number one ranking among companies that are the best places to work in America, is related extensively to its strong leadership and management. This is reiterated by Duin and Baer (2010, p.35), who state that Google’s “increasing prominence is a direct result of shared leadership”, which is shared opportunity with millions of users who click through to access the company’s latest applications and resources. According to Daft and Lane (2008, p.17), leadership develops “a compelling vision for the future and creates far-sighted strategies for producing the changes” required to achieve that vision. Thus, while leadership requires an eye on the long-term future, management calls for a focus on the bottom line and short-term results. Thesis Statement: The purpose of this paper is to investigate leadership and management style at Google Company, in order to determine what makes this company unique and one of the best places to work in America. Shared Leadership at Google “Google’s goal is to organize the world’s information” (Duin & Baer, 2010, p.35). The company is ahead of schedule to meet its high target. The previous Chief Executive Officer at Google, Eric Schmidt has been replaced by Larry Page. In 2001 the Board of Directors of the company had brought in Schmidt to supervise the then 27-year-old founders Larry Page and Sergey Brin. For one decade, Google’s management structure was described as a three-ring circus with the co-founders Page and Brin running the business behind the scenes, while Schmidt formed the public face. Currently, the three managers who were equally involved in making decisions, mutually agreed on Page taking the stage. Eric Schmidt stated that the earlier “triumvirate approach had real benefits in terms of shared wisdom” (Schermerhorn, Osborn, Uhlbien & Hunt, 2011, p.299), and that they would continue to discuss the big decisions among the three of them. At the same time, they decided to clarify their individual roles to ensure clear responsibility and accountability among the management and leadership of the company. The main aim is to simplify the leadership structure and speed up decision making. Thus, Larry Page leads product development and technology strategy, his greatest strengths; and as Google’s Chief Executive Officer is also in charge of the company’s day-to-day operations. Sergey Brin as co-founder focuses on strategic projects and new products, while the previous CEO Schmidt “serves as executive chairman working externally on deals, partnerships, customers, and government outreach” (Schermerhorn et al, 2011, p.299). The company’s leadership is confident that this focused approach would serve Google and its users well in the future. It is acknowledged that Page’s taking over the company’s management is at an ideal time. Google’s business is doing well, with the revenues of $29.3 billion showing an increase of 24% from the previous year, and profits rising high. However, the concern is for the future rather than for the present. There is a sense that Google’s best days may be over, with the company facing tough competition from Facebook and Microsoft, and losing top talent to younger tech shops. As the new CEO, Page’s job as a brilliant entrepreneur is to “shake things up and knock loose some ideas” (Schermerhorn et al, 2011, p.299). The new leadership structure is expected to work beneficially, because it appears that Google has matched its leader capabilities with the company’s needs. Further, the leadership increasingly promotes collaboration among employees; and greater communication forms the new organizing principle for the workplace. Two essential traits common to the 100 best companies to work for, topped by Google, are a powerful, visionary leader, and a sense of purpose beyond incresing the company’s shareholder value. At Google, people feel energized by the intellectually stimulating work environment, and challenging technical problems, as well as the potentially global benefits of their work. The company’s leaders emphasize on a vision of “unifying data and information around the world, one day totally obliterating language barriers via the Internet” (Daft & Lane, 2008, p.17). Google’s Management Style: Perks in the Best Company to Work for Google’s management assert that providing their employees with conveniences is beneficial in securing employee satisfaction and retainment. An environment of freedom in dress code aligns with Google’s appealing, free-wheeling, and creativity-inspiring culture. Hence, imposing Formal Fridays or Google going corporate by mandating standard business attire would culminate its appealing work environment. Google is similar to other Intellectual Property Offices (IPOs) in running the risk of brain drain, with newly rich vested employees starting their own ventures after voluntarily retiring from the company. However, this trend is welcomed for world improvement, because the new companies promote ecologically sustainable and humane causes (Basch, 2005). Now that Google no longer has pre-IPO shares to employ as an incentive, according to the NY Times (June 06, 2004), it uses meals catered by celebrity chefs, doctor visits at company offices, on-site massages, gym, and other well-publicized perks of Google, to retain the best employees or to attract new talent. A leadership strategy at Google is attracting bright people and keeping them happy. The company is to start a Google university for promising undergraduates to pursue advanced degrees while working (Basch 2005). One of the organization’s major strengths in recruiting is its “willingness to organize the entire company around the insight that top talent likes to work with other top talent, tackling interesting problems of their own choice” (NY Times, June 06, 2004). At Google, the hiring process is gruelling, and nonconformity is valued as much as genius, states Hamel (2006). After hiring ambitious, A-level brainiacs, to retain them Google rewards high performance teams with an annual multi-million dollar Founder’s Award. Managers and leaders at Google encourage innovation in the work place, and making mistakes as part of learning experiences is promoted. “Too much structure and control is considered death to the company” (Daft & Lane, 2008, p.133). The company has created a transparent, organization facilitating equality and the sharing of ideas. Conclusion This paper has highlighted the leadership and management style at Google offices. It is evident that the company encourages innovation, advocates shared leadership, promotes contribution of ideas from all employees, and welcomes transparency through participation in decision making processes. The management style is free-wheeling, and while recruiting only the best, most unique brains, believes in providing employees with comforts and conveniences as additional perquisites. Thus, the leadership’s focus is on creating a happy work place to ensure employee satisfaction and retention. Google motivates its employees towards optimizing their performance by giving an annual multi-million dollar award to the team that achieves the greatest benefits for the company. Further, the working environment is stimulating and challenging, where competition with the best in the field provides the incentive to raise one’s performance level. The organizational culture of flexibility, freedom, provision of facilities and employee welfare, helps greatly in making the members feel valued; and consequently they feel compelled to work at their highest level. The work teams at Google have only a few members each, who coordinate and work together closely. They are empowered to function autonomously, and to learn from mistakes. At the same time, communication, interaction, helping each other and the sharing of ideas is encouraged for the company’s overall advantage, as well as for the employees’ career development. Diversity initiatives include non-discrimination, the promotion of team work, and the provision of rewards based on merit and innovation. With a high level of adaptability, Google’s addresses organizational change by facilitating smooth transitions. References Basch, R. (2005). ‘Doing good and doing well: The saga as Google goes public. Searcher, 13(1): 18-38. Daft, R.L. & Lane, P.G. (2008). The leadership experience. Edition 4. The United States of America: Cengage Learning. Duin, A.H. & Baer, L.L. (2010). ‘Shared leadership for a Green, Global and Google World. Planning for Higher Education, 39(1): 30-40. Great Place to Work. (2012). 2012 Fortune’s 100 best companies to work for. Retrieved from http://www.greatplacetowork.com/best-companies/100-best-companies-to-work-for Hamel, G. (April 26, 2006). ‘Management a la Google’. Wall Street Journal. Retrieved from http://www.brandsphere.com/commentary/uploaded_documents/WSJ%20Googlearticle.pdf NY Times (New York Times). (June 06, 2004). NEWS AND ANALYSIS: DIGITAL DOMAIN; What is Google’s secret weapon? An army of Ph.Ds. Technology. Retrieved from http://www.nytimes.com/2004/06/06/business/news-and-analysis-digital-domain-what-is-google-s-secret-weapon-an-army-of-phd-s.html?pagewanted=all&src=pm Schermerhorn, J.R., Osborn, R.N., Uhlbien, M. & Hunt, J.G. (2011). Organizational behaviour. Edition 12. New York: John Wiley and Sons. Read More