Google is one of the most successful companies, which has achieved a tremendous success within a short period of time. In fact, the company had benefited from the dot boom which was the characteristic of the late 1990s and in a short period of time the market value of the company had multiplied consistently. Today, the market value of Google exceeds the market of value of such leading American companies as General Motors, for instance. In such a way, Google, which was oriented on the market of IT and innovations, reached unparalleled market results overtaking large multinational corporations. However, the innovative nature of the business of Google was not the only factor that determined a commercial success of the company. In this respect, the management system of the company plays a very important role and, to a significant extent, defines the development of the company. Moreover, the effective human resource management is the basis of the effective market performance of Google since in the knowledge-based industry human resources are crucial for the commercial success of any company.
On analyzing the current position of Google in the market, it is necessary to underline the fact that the company is worth $23 billion (Stort and Helft, 43) and is one of the largest companies of the US. Today, the company employs over 19 thousand employees and, according to the Fortune Magazine, the company is one of the best places to work. In fact, such a progress is really impressing, taking into consideration the fact that the company was founded in 1998 and within less than a decade became one of the leading companies of the US. Google takes in active part in various projects and closely cooperates with the government, while its brand is recognizable worldwide. Such a popularity of the company makes Google one of the most desirable places to work.
However, it is worth mentioning the fact that from the financial point of view the work in Google may be not as attractive as the work in competitive companies. For instance, a system administrator working in Google can earn no more than $35,000 that is apparently lower compared to the average level of earning of system administrators in the industry. Nevertheless, the relatively low salary does not prevent system administrators as well as other specialists get employed in the company. In stark contrast, they are willing to work within the company. In this respect, it should be said that the financial position of Google’s employee is not as bad as one may think on analyzing the level of earnings in the company. Along with the salary, it is necessary to take into consideration the possibility for many early employees of the company to be competitively compensated by participation in the company’s remarkable equity growth (Carr, 123). In such a way, the general revenue of employees of Google is comparable to that of the major competitors of the company and is close to the average in the industry.
At the same time, one of the major factors, which stimulate and motivate employees to work in Google, is the unique organizational culture and atmosphere which dominates within the organization. In general, the human resource management of the company is mainly oriented on the implementation of democratic principles and it is possible to define the management style of the company as liberal since Google is not focused on some strict rules and regulations and its organizational structure is not rigid as the structure of many other companies, especially large one, operating in the US. To put it more precisely, since the foundation of the company, Google was interested in the employment of well-qualified and very prospective employees. What is meant here is the fact that the company, which had started to operate in the knowledge-based, high tech industry, needed employees which could introduce and develop some innovative ideas and effectively within the company.
To increase the effectiveness of work of employees and improve the performance of the entire organization, Google attempted to create the most comfortable conditions for its employees in order to stimulate employees’ creativity and productive work. As a result, the company introduced some principles which became fundamental for its management style. For instance, one of the major principles of the company in relation to employees is the idea that “you can be serious without a suit” (Vise and Malseed, 112). In fact, this slogan perfectly illustrates the democratic nature of the company’s management style and its attitude to employees. Google does not actually impose strict demands concerning employees’ appearance or model of behavior.
What is really important for the company is the work itself. Employees working within Google should feel free to express their ideas and implement them in practice as long as they can be effectively implemented and bring considerable profits to the company and its employees. To achieve good results, employees do not need to follow a strict dress code or some rigid rules which regulated their behavior. The company stands on the ground that such restrictions are artificial and, what is more important, they create unnecessary barriers employees are often forced to overcome or accept in other organizations. Naturally, such restrictions and regulations deteriorate the performance of employees because they feel bound while working in such organizations. In contrast, Google stimulates the creative work of its employees and allow any style of work which is convenient for employees and which can bring positive results for the entire company.
However, this management style does not mean that Google does not care about the effectiveness of work of its employees or about results of the work. Obviously, employees can work as they like but they should provide the company with positive results of their work. The positive result of the work is impossible if employees do not progress. This means that the company is interested in the permanent improvement of professional skills and abilities of its employees. No wonder, one of its major slogans is “work should be challenging and the challenge should be fun” (Vise and Malseed, 134). This principle is also very important because, on the one hand, it does stimulate the professional growth of employees, while, on the other hand, it encourages them to enjoy their work. The latter is particularly important because the effectiveness and productivity of work increase substantially when employees are satisfied with their performance. This satisfaction can be achieved when employees accomplish some challengeable task, which they probably have never thought to accomplish. In such a way, employees are not only satisfied with their work but they are also encouraged and motivated to work on and cope with new challenges. Moreover, they can feel their professional growth and progress as they cope with new challenges in their work. At this point, it is important that employees could have an opportunity, as they do in Google, to define their own challenges and objectives. As a result, their work becomes more personal since they work on a project which is important not only for the company, but it is also important for employees themselves because it is their personal challenge they need to cope with.
Finally, it should be said that Google attempts to create a positive image of the company. In this respect, it is important to underline the fact that the formation of the positive image is oriented not only on customers but also on employees. For instance, another milestone slogan of the company is “you can make money without doing evil” (Smith, 91). In practice, this means that Google lays emphasis on the fact that the work employees do is useful and even necessary not only for them, in person, or the company, but for other people as well. Employees of Google are conscious of the fact that they work in the high tech industry and their inventions and their regular work contribute to the progress of the entire mankind.
Thus, taking into account all above mentioned, it is possible to conclude that the current leadership of Google in its industry and its tremendous success are, to a significant extent, determined by the effective management style of the company, which is oriented on the formation of a positive organizational culture, democratic, liberal and positive interpersonal relations and the formation of a positive image of the company among employees of Google.
Battelle, John. The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture. New York: Allyson and Beacon, 2005.
Carr, David F. “How Google Works.” Baseline Magazine. July 6, 2006.
Smith, David. “The future for Orange could soon be Google in your pocket.” The Guardian. December 17, 2006.
Stort, Louise and Miguel Helft. “Google Buys DoubleClick for $3.1 Billion.” The New York Times. April 13, 2007.
Vise, David and Mark Malseed. The Google Story. Chicago: Delacorte Press, 2005.
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