Impact of Working Environment in Office Spaces - Case Study Example

Impact of Working Environment in Office Spaces on the Motivation Leading to Job Satisfaction and Creativity: The Case Study of Google Inc. Submitted By: Submitted To: Course Number: Date of Submission: Index Index 2 Abstract 3 Introduction 4 Research Objectives 4 Literature Review 5 Theoretical Framework 7 Gifford’s Workplace Environmental Psychology 8 Results and Discussion 9 Google’s Profile 9 Google’s Culture 10 Characteristics of Employees at Google 10 Google’s Physical Work Environment 11 Work Policies in the Company 11 Creative Psychological Processes 12 Outcomes 13 Managerial Implications 14 References 16 Abstract Job satisfaction is a difficult concept to measure as it depends on the cognitive perceptions of the employees. However it is fast becoming an important aspect for management at companies that seek to be competitive in the market with a creative and talented workforce. In order to retain their best employees companies are significantly investing in determining what motivates employees and provides them with job satisfaction. In this regard the case of Google Inc. is employed and studied using Gifford’s model of workplace environmental psychology. The environmental motivators are identified and their impact on the employees is depicted with the outcome of job satisfaction and creativity. The implications for management at Google Incorporated are provided specifically for the management of employee satisfaction levels and their retention rate. Introduction With increasing competition in the global environment companies are focusing on smart business solutions and adopting smart business practices to attain competitive advantage in the markets. Companies in this regard seek to employ and retain the best talent in their businesses. While the availability of labor in the market is sufficient, when it comes to managing recruitment for experienced employees that provide positive productivity and idea generation in the organization, businesses seek to look for trained managers to fit the roles. In such a scenario the management of employee satisfaction becomes significantly important for businesses that have a good employee base employed at their operations. The paper conducts a case study review of Google Incorporated in terms of how its working environment impacts the job satisfaction and motivation for employees in the company Research Objectives The aim of the research is to identify how the job satisfaction of employees and managers is effected by the working environment at Google Incorporated and what motivational factors come into play in their cognitive determination of job satisfaction. The specific research objectives are listed below as: 1. Identify how the working environment effects the job satisfaction of the employees at Google Inc. 2. Determine the elements of the working environment that significantly contribute towards job satisfaction at the company 3. How creative solutions can positively influence the perception of managers, and their job satisfaction levels at Google Inc. Literature Review Managing motivation and job satisfaction is becoming significantly important for businesses. This is specially true after the events of the last ten years when economic as well as financial recessions in 2001 and 2007 have been faced resulting in high level of job cuts and influenced job dissatisfaction. The increased competition in the market requires businesses to create an environment which harbors and creates a competitive work force that can provide a comparative advantage for the business (Culpepper and Finegold, 1999). In this regard businesses seek to identify factors that influence the job satisfaction and motivation for their employees in order to retain a competitive workforce which acts as an asset for the business. Martin Wolf through his research (1970) depicted that job motivation is formed as a result of the perception that employees have specific to what they want form the job and what the job is providing to them. The discrepancy between these or their fulfillment depicts the job satisfaction for the employees using support from hierarchy of needs theory. The study conducted by Pritchard and Karasick (1973) pertaining to job satisfaction assessed in relation to the working environment at the organization highlighted that there exists a significantly strong relationship between the working conditions and the job satisfaction of employees. Alternative environments for work are a new concept that have been developed by the dot com businesses particularly those that deal with technology and the development of software (Meel and Vos, 2001). The exhaustive and dry nature of work prompted business to boost their employee motivation in order to fuel creativity and job satisfaction in the workplace. For this purpose alternative working environments have been introduced by which recreational activities and environment are provided to the employees at the workplace. Increasing number of businesses in the United States over the years have incorporated elements of this approach in their working environments as well. A research conducted by Meyer (1999) provides that business have sought this approach in order to increase creativity, morale and job satisfaction amongst their employees, while seeking to increase their retention rates. This depicts that the physical environment at the workplace can strongly effect the employee in terms of their motivation and job satisfaction. A study conducted by Laabs (2000) highlighted that amongst the Fortune 1000 businesses, a majority of the managers provided that their workplaces reduce their productivity or restrict it. They also depicted the desire to reduce their compensations in favor of better working environments (Laab, 2000) which foster creativity and productivity depicting their job satisfaction level as well as their motivators. One of the companies that have effectively managed its working environment for its employees in order to retain talent while deriving competitive advantage from managing position job satisfaction is Google Inc (Bowers, 2012). The company is a unique establishment which seeks to highlight creativity in its workforce while focusing on innovation. The company has managed this through the provision of an incomparable working environment for its employees making it one of the top most companies sought by employees as their choice of workplace ranking at number one (‘Fortune’s 100 Best Companies to Work For’, 2012). Conclusively it can be iterated that there exist many factors that influence job satisfaction and motivation for employees, however working environment plays a significant role in influencing satisfaction levels for employees. Motivational surveys over the period of time (Wiley, 1997) have indicated that monetary compensation is the most basic cause of job satisfaction with other factors taking the form of working conditions, physical environment, company culture and working facilities significantly contribute towards the satisfaction levels as well Theoretical Framework As depicted from the literature review, the job satisfaction of employees is difficult to manage as they are affected by peer relationships, work processes, compensation and benefits, rewards and recognition, company culture and strategy, company’s HR policies as well as the working environment of the organization for its employees. The theoretical framework that surrounds the impact of working environment on the job satisfaction of the employees is based on multiple theories of motivation. For the purpose of the case analysis of Google a theory that takes into context interactions between the employees and working environment providing job satisfaction as a deductive item was required. In this regard Gifford’s Model of workplace environmental psychology proved to be useful. Gifford’s Workplace Environmental Psychology Gifford (2002) through his work presented a model that can be employed to study how the workplace affects the psychology of the employees. His model depicts that there are six major elements that compose the model and these take the form of physical environment, the attributes of the employees, the business culture and policies, the psychological processes involved as well as the interactions existing between the worker and the office environment. For the purpose of this research, elements of the model will be employed to study effect of the office environment on the motivation and job satisfaction of employees for Google as outcomes derived from it. Gifford’s Workplace Environmental Psychology Model (2002, p339) Results and Discussion Google’s Profile Google is a technology and application based service providing firm that has been operational since 1998. The company was originally founded by Larry Page and Sergey Brin as a small scale establishment which has grown significantly to become a worldwide player in the market. The company is an American establishment that works across the globe with its operations in multiple markets. The head quarters for the business is at Mountain View, United States which is better known to the employees of Google as the ‘Googleplex’. The company still manages to keep a small scale orientation despite its large size. The main approach taken to business by the company is that of employee centralism. Google’s Culture Google has a unique culture in its organization with a fast paced environment that runs on the passion and determination of its employees. Google strives to work hard while enjoying and having fun as well. The company has taken the relaxed orientation to heart and has significantly invested in the servicescape as well as the climate at the workplace in its offices to provide a free and creative environment for its employees which is informal. The company sees this as a value addition and seeks to enforce creativity in its employees while making way for the diversity and individuality of its people by celebrating their differences. Teamwork and creative involvement at all levels is fostered in the employees through its unique organizational culture Characteristics of Employees at Google Employees at Google are people that come from all walks of like, with different backgrounds. However together at Google they form formidable teams that work towards innovative idea generation through truly out of the box thinking and uniquely creative thinking processes. Google selects its employees through an algorithm which is based on the personality and the behavioral characteristics of its prospective employees. The specific traits that are help by employees at Google include leadership capabilities, innovative ideas, and creativity in the thinking process. Most of the company’s employees however are young managers and young adults who have recently graduated from college. While more experienced employees are present in the company, the majority pertain to young professionals. Google’s Physical Work Environment The most significantly different thing about the company pertains to the office or physical work environment that Google provides to its employees. The company has built state of the art office complexes in its locations of operation which are completely informal built in such a way to incorporate socializing and recreation in the working environment. The company provides a fun environment for its employees where they can play and work as they choose. Through the working space the company provides its customers with more than 10 gourmet cafeteria, lounges for the employees, massage services, free services pertaining to laundry and dry cleaning, oil changing service for transportation vehicles, personal concierge, TGIF parties on every Friday of the week along with visits to the employees fro different industry leaders and experts in the field. Recreational facilities like meditation rooms, gyms, as well as state of the art gaming tools are provided to the employees as investment into their creativity Work Policies in the Company The work policy at Google is to have fun, and work as they believe doing both here the company invests in its employees with it policies aimed at benefiting the employees to increase their productivity while fostering creativity. The company observed the notion that appreciation is the best form of motivation that it can provide to its employees. The communication in the company is completely open giving a new definition to the open door policy. The company provides its employees with working solution through which they can work as and when they please with open work timing. Similarly the employees are also provided with commuting solutions and options of working from home where possible. The salary package is not very competitive but significant benefits in terms of maternity leave, free medical for the employees as well as bonuses on work done meeting targets are provided generously. The company also has the policy of 20% where the employees can choose 20% of the creative work that they do by selecting only those works and projects that they are passionate about and interested in working on. Creative Psychological Processes The extensive investment is made by the company in its employees, solely to drive productivity while also increasing the innovation across the company through creative idea generation. The no holds barred casual environment supported by fringe benefits and recreational activities are provided by the company so that the employees ego in the process of being creative and focusing on how work can be done in new innovative manner. The company requires its employees to think outside the box with the normal restrictions of cognitive thinking eliminated through the environment created in the workplace. The employees of the organization as a result despite being different in terms of their profiles are smart individuals who employ various unexplored, innovated and new perspectives to solving their business problems. Outcomes The outcomes of the interactions between the employees and the working environment in Google Incorporated can be divided into three main categories. Firstly the work environment makes way for a fun climate and environment in the organization fostered through recreational and casual attitude. Secondly creativity is promoted through this work environment as it prompt the employee to think in out of the box. Therefore the work environment contributes by enhancing creativity and innovation in the company through cognitive development. The most significant result however is the job satisfaction that it provides to its employees. All aspects of issues, problems and provisions are taken care of by the company for its employees to ensure that they are free and able to give their best to the work. In terms of motivational theory the basic needs of the employees pertaining to security, food, shelter and socializing needs are all taken care of by the company so that the employees are motivated to perform their best. As a result employees also devote significant amount of their time to the work by living in the workplaces and working long hours to provide concise solutions with devoted productivity to the company. Google builds a personal strong relationship with its employees by giving them the best tat there is, and for this the company seeks the best results for the business issues and problems that are prevalent in the business environment. Gifford’s Workplace Environmental Psychology Model Applied to Google Case Managerial Implications Through the research it has been identified that Google has sought to create a unique and diverse work environment in order to foster innovation, creativity and growth in the organization. In this regard unexpected yet minutely details policies have been undertaken to ensure the job satisfaction of the employees. The job satisfaction is sought by the company to retain its talents and skilled workforce and in this regard the company spends considerable funds. The managerial implications that have been identifies here pertain to the high costs of operations and the high costs of operating in such a different work environment. These costs have to be accounted for and managed by the organization. The case analysis has revealed that Google has designed its working environments keeping these factors in mind in order to create an environment that fosters job satisfaction in the employees. Moreover research also indicates that employees are motivated most by comfort, while seeking to be creative in the competitive environments. This is provided by Google to its employees in return of high productivity and innovation in idea and their generation. 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