Reward and Motivation within Google - Essay Example

? Report on "Reward and Motivation within Google” By: Tina Schou Elizaveta Mokienko NesilErciyas DimitriGlavatsky Table of Contents Contents Page # Introduction 3 Maslow’s Hierarchy of Needs 4 Herzberg’s Two Factor Theory of Motivation 5 Limitations of Herzberg’s Theory of Motivation 7 Critical Analysis 8 Recommendations 9 Conclusion 9 Reference 11 Appendices 12 Introduction Google Company was first founded September 4, 1998. Since then, it has quickly grown into one of the world’s biggest search-engine companies. Google’s missions “is to organize the world’s information and make it universally accessible and useful” (About Google, n.d.). Today, Google consist of several different parts such as Google Chrome, Google Maps and the Google search engine. In January 2012, Google was named the best place to work in the U.S, by Fortune’s list of the 100 best companies to work for. The reason Fortune picked Google is that “employees rave about their mission, the culture, and the famous perks of the Plex: bocce courts, a bowling alley, eye brow shaping in the New York office. Then there’s food: some 25 cafes companywide, all free.” All of these factors that Fortune mentioned are a part of Google’s plan to motivate their employees to be more creative, work better as a team, come up with new business ideas and for the employees to generally have a better experience at their workplace. To look at how Google do this, we can link their methods to different models for motivation such as Abraham Maslow’s Hierarchy of Needs and Herzberg’s Two Factor Theory of Motivation. Google has a pleasant work environment for its employees and is using various others non-financial methods of motivation. Its practice of offering non-monetary incentives by giving employees such rewards (e.g. greater autonomy, nicer work environment, sense that the organisation is doing good, etc.) will motivate employees unlike financial rewards which are soon forgotten. Surely, most of employees want to have their own space and are ready to work for it. The search giant is famous for its laundry list of perks including free food at any of its cafeterias, a climbing wall, and, well, free laundry. It also provides its workers a place where they can relax or meditate in their free time. In Google’s offices meeting rooms are filled with beanbags rather than hard office chairs, table-tennis tables and PlayStations which may seem trivial at first, but they have become a strong non-monetary motivational incentive. Having unique consumer perks and exceptional leisure areas, it increased innovation through creating a relaxed atmosphere at work that in turn creates very high job loyalty. This distinctive approach makes it more flexible to cope with changes in the ever changing labour market. By using non – financial motivation Google separates itself from other companies in the industry. They are making their workplace and work environment attractive to potential new employees, since they are not only offering high salaries, but also a comfortable and different place to work at. These non – financial motivational factors make employees feel like they are not only a part of the company, but also a part of a big creative project. “Motivation is the degree to which an individual wants and chooses to engage in certain specified behaviour” (Mullins, 2009:471). Abraham Maslow categorized human needs into 5 levels (Lindh et al., 2010). The basic idea is that as one level of need is satisfied, the need to satisfy the level above becomes important. These are 5 levels: physiological needs (food, water, sleep, salary), safety and security (stability, protection), love and belonging (affection, need for engagement and sharing), self – esteem (self-respect, prestige, status), self – actualization (growth, advancement, creativity). Google Company is famous for their work environment. So, what so special in Google and can we say that Google covers all 5 stages in Maslow’s Hierarchy? Maslow’s Hierarchy of Needs “It’s really the people that make Google the kind of company it is”, as said on their website. Undoubtedly, Google Company covers the lowest level in Maslow’s Hierarchy – the physiological needs. Google’s benefits are part of who they are, and they’re designed to take care of employees’ health, weather physically, emotionally, financially and socially. Their health insurance, retirement benefits, on – site physicians and nurses, convenient medical services and comprehensive health care coverage, time off and some extra spending money for new parents, number of benefit programs and onsite amenities to support employees and their families, give the employees the sense of security and safety, which are completely covered the Maslow’s 2 level. Google Company maintains the open culture, in which everyone feels comfortable to sharing ideas and opinions. They also have weekly all-hands (“TGIF”) meetings, where employees ask questions directly to execs. The offices and cafes are designed to encourage interactions between all employees within and across teams. All these show that the third level is also covered by the fact, that people feel the sense of connection with others. Google Company is able to reimburse the employees for classes or degree programs, built the idea that “work should be challenging and the challenge should be fun”. There is an emphasis on team achievement and pride in individual accomplishment that contribute to overall success. Company sets goals they know they can’t reach yet, because by stretching to meet them they can get further then it was expected. As we can see self – esteem and self – actualization is one of the main priorities in Google Company. Herzberg Two Factor Theory of Motivation Fredrick Herzberg performed the Two Factor Theory of motivation to understand workers’ feelings and motivations. His research showed that some of the employees are pleased and some of them are displeased about their job. There is a similarity and connection between Maslow and Herzberg Theories. Herzberg found that the factors are causing work satisfaction were different from those factors causing dissatisfaction, according to him the opposite of satisfaction is dissatisfaction. Herzberg showed that to motivate an employee business needs to create good conditions to make their employees for positive satisfaction in the workplace. He developed a theory to explain these factors. Herzberg categorized these job factors in to two categories; Satisfiers (Motivators) and Hygiene Factors. Hygiene factors are essential for a company to escape unpleasantness at work. Google Inc. offers a range of benefits essential to maintain a hygiene environment at workplace. For instance, “ it’s all about removing barriers so Googlers can focus on the things they love, both inside and outside of work” (Google, n.d.). Additionally, the workplace culture and the environment are the key ingredients of hygiene life. A closer analysis indicates that Google management has provided a congenial workplace environment and culture in which employees have been encouraged to consider as a part of the Google. On-site physicians and nurses providing free of charge medical care to the Google employees is another important factor motivating employees to enhance their work performance while staying emotionally, socially, financial and physically healthy. Additionally, different work-related programs, seminars and other social gatherings strengthen workplace environment and closer understanding between and among senior, middle and operating level employees. These factors considerably motivate the employees to put their best efforts and meet the expectations of the senior management. Google Inc. is a very exclusive organisation they don’t create a boring workplace they want something different then their competitors, and that is why they found “ Googol plex” where strange and different ideas that will change or influence all the world. The Google company believes that in order to get the most brilliant workers, they had to offer an environment and workplace where employees would come to work have fun, enjoy, think big and get rewarded. Google Inc.’s goal of providing benefits and rewards is to” strip away everything that gets in our employees way” Google Inc. offers a beautiful dining facilities, space and massage rooms, dry cleaning, haircuts and children care areas for employees .By looking at how company efforts to encourage their workers, one can see that this is absolutely one of the companies in the world that has taken this to the next level. The Google has been presented “best company to work at” several times, and for many reasons. One can’t say that this is the amazing workplace for everybody, because all workers and industries are different than the others. But Google has found a way to motivate their employees that works excellent for them. Limitations of Herzberg’s theory of Motivation There are some limitations of Herzberg’s theory. First, one of the limitations of Herzberg’s theory is the inability to measure the relationship between work performance and job attitudes (Herzberg et al., 1959). Similarly, despite providing numerous intrinsic and extrinsic rewards to its employees, Google management has not been able to understand the relationship between job attitudes and work performance when applying the Herzberg’s theory. As this limitation is inbuilt to the theory, it would be difficult to assess work performance and job attitudes by employing this theory. Second, this theory fails to establish a clear and discrete relationship between actual organizational performance and employee morale (Herzberg, 1966). In today’s dynamic environment, organizations prefer to measure the current level of employee morale as it has a direct attachment with their work performance. In the absence of establishing a clear relationship between employee morale and actual organizational performance, it would be very difficult to devise an effective strategy to maintain a standard level of employee morale. Critical Analysis Snatching the rivals’ employees Snatching the rivals’ key employees is not a new practice in the corporate world. Groupon files lawsuits against its former employees who leave for competitors such as Google Inc. (Pletz, 2011). Pletz (2011) points out that Groupon has formally decided to file a lawsuit against such former employees who left the company and joined Google Inc. This situation indicates that Google Inc. may have attempted to offer highest perks and benefits in order to snatch key employees from Groupon. Such practices of poaching are not new in the corporate world and many organizations prefer to work at the cost of competitors. Keeping low employee compensation Despite offering so many benefits and perks, some research indicates that even Google Inc. is not immune from committing un-just corporate practices. For instance, in May 2011, a former Licasfilm software engineer filed a civil class action lawsuit against Google Inc., and other companies for allegedly conspiring to keep employee compensation artificially lower by entering into “No Solicitation” agreements (Joseph Saveri Law Firm, 2012). This highlights that everything that is happening inside Google Inc. is not positive and is not in the favour of the employees but the Google management is attempting to save its business cost at the cost of employee benefits. Such attempts clearly expose the true face of Google Inc. when it comes to offer rewards and perks to its employees. Allegation of corporate mal-practices Mal-practices are being conducted by Google Inc. against the rivals. The Federal Trade Commission is considering to file a lawsuit against Google Inc. for allegedly misusing patent protections in order to block rival’s smart phones (San Francisco Business Times, 2012). Such practices put negative effect on the employee morality and their commitment towards organizations. Ethically, the Google Inc. employees would not be able to face the pressure of society, family and friends. They would not be able to answer the wrongdoings committed by the senior management of Google Inc. Consequently, the reward and motivation policy would be less effective in bringing the desired outcomes. Recommendations Google Inc. should not involve in developing any lower and hidden employee compensation. As Joseph Saveri Law Firm (2012) has clearly maintained that the Google management has been involved in maintaining low employee compensation plans and practices, Google Inc. should not be a part of such practices. By avoiding such practices, the Google employees would not be demoralized or face any unclear and uncertain situation as far as employee compensation policy is concerned. Additionally, with a clear but standard based employee compensation policy, Google Inc. would observe that the employees are performing as they are expected to. Snatching the rivals’ employees and corporate mal-practices should also be avoided. Although offering a higher salary and other benefits to the rivals’ employee may not be termed as illegitimate, however it must not be seen by the outsiders that the senior management of Google Inc. is attempting to snatch the key employees of the rivals. In such circumstances, Google management should ensure transparency in such activities as it would dispel any doubts raised by the rivals and simultaneously it would increase the confidence of employees and the customers and business partners of the company. Conclusion Google Inc. is one of the leading search engine companies in the virtual world. It offers a range of services such as Google Chrome, Google Maps and Google Search Engine. Both theories (Maslow’s Hierarchy of Needs and Herzberg’s Two Factor Theory of Motivation) highlight that Google Inc. offers a pleasant workplace environment to its employees along with non-monetary incentives building motivation of the employees. Greater autonomy, decent work environment, friendly workplace culture and facilities such as play stations, table-tennis tables and sound health insurance policies, retirement benefits, on-site medical services and nurses are some of the main factors that motivate employees to put their best efforts in their respective employment roles. However, certain factors such as snatching the rivals’ employee, low employee compensation and corporate mal-practices are some the dark aspects of the company. The Google should ensure that it provides standardized employee compensation plans, ensure transparency when hiring individuals from the rival organizations. References About Google, (n.d.), Google, Available: http://www.google.com.pk/about/ viewed: 15 November, 2012. Google (n.d.), Benefits, Available: http://www.google.com.pk/about/jobs/lifeatgoogle/benefits/ viewed: 15 November, 2012 Herzberg, F (1966), The Work and The Nature of Man, The World Publishing Company, Ohio. Herzberg, F, Maunser, B and Snyderman, B (1959), The Motivation to Work, John Wiley and Sons Inc, New York Lindh, WQ, Pooler, MS, Tamparo, CD, Dahl, BM (2010), Delmar’s Comprehensive Medical Assisting: Administrative and Clinical Competencies, 4th edn, Delmar Cengage Learning, New York Mullins, LJ (2009), Management and Organizational Behaviour, 7th edn, Pearson, New Delhi Joseph Saveri Law Frim, (2012), High-Tech Employee Anti-Poaching and No Cold Calling, Available: http://saverilawfirm.com/our-cases/high-tech-employee-anti-poaching-no-cold-calling/ Accessed: 15 November, 2012 Pletz, J (2011), Groupon files lawsuits against some former employees who leave for competitors. Crain’s Chicago Business. Available: http://www.chicagobusiness.com/article/20111126/ISSUE01/311269974/groupon-files-lawsuits-against-some-former-employees-who-leave-for-competitors Accessed: 15 November, 2012. San Francisco Business Times, (2012), FTC staff said to be urging suit against Google Inc. San Francisco business Times, Available at: http://www.bizjournals.com/sanfrancisco/morning_call/2012/10/ftc-staff-said-urging-google-lawsuit.html Viewed on: 15 November, 2012. Appendices Abraham Maslow’s Hierarchy of Needs Source: (Lindh et al., 2010:64) Reflective Statement This assignment has considerably increased my level of understanding about Google Inc., Abraham Maslow’ Hierarch of Needs and Herzberg’s Two Factor Theory of Motivation. While reading and writing the different motivational factors provided by Google Inc. to its employees, it was felt that organizations need to maintain a range of motivators both intrinsic and extrinsic as well. The presence of such motivating factors provides a congenial workplace environment essential for employees to maintain their productive capabilities. Additionally, it was also learned that employees do not get satisfied only with attractive salaries and perks but they also require non-monetary factors fundamental to maintain the required level of motivation. However, there are certain factors that must be avoide and these factors include corporate mal-practices done by organizations and attempts reducing the employee compensation. Read More