Google's HRM Strategies Presentation-Ambesh Govind,MBA-4B_078

7/28/2019 Google's HRM Strategies Presentation-Ambesh Govind,MBA-4B_078

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Analysis of HRM Strategies

In Google Inc with respect toHorizontal and VerticalIntegration

Our employees, who call themselves Googlers, are everything. We hope to recruit many more

in the future. We will reward and treat them well.Larry Page and Sergey Brin, Founders of Google


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Introduction

Managing human resources effectively has become vital toorganizations within the modern and fastpaced businessenvironment.

Human Resources specialists are more important in business

strategies today for this very change in market dynamics more so in the present economic situation of a global recession anddownturn across industries and sectors.

Arguably, in the last 10 years since the expansion of informationtechnology as a result of the internet; one astounding firm that

has impacted on our lives is Google The Google search engine has become so popular that it is now

listed as a verb in the dictionary (Merriam-Webster 2009).

Is a textbook example of modern employee-centric policiesand benefits.


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Objectives of the Study

To analyze the HRM strategies practiced inGoogle with respect to Googles keybusiness strategy and philosophy.

To analyze the horizontal and verticalintegration ofGoogles HR strategies with itsoverall corporate strategies.

To analyze the gaps in Googles HRMstrategies with respect to future challenges.

To offer recommendations for closing thegaps b/w Googles HR Strategies and overallBusiness Strategies.


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Company Profile

Googles vision is to focus on the userand all else will follow.

Googles mission is to organize theworlds information and make ituniversally accessible and useful.


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Historical Perspective The two founders of Google-Larry Page and Sergey Brin theorized about a better system

that analyzed the relationships between websites. They called this newtechnology PageRank.

Originally nicknamed their new search engine "BackRub", because the system checkedback links to estimate the importance of a site.

Eventually, they changed the name to Google, originating from a misspelling of the word"googol.

The domain name for Google (google.stanford.eduand z.stanford.edu)was registeredon September 15, 1997, and the company was incorporated on September 4, 1998.

Was based in a friend's (Susan Wojcicki) garage in Menlo Park, California. It had lessthan 20 employees and was answering 10,000 search queries.

Made some money by licensing the search service to other sites.

In March 1999, the company moved its offices to Palo Alto, California.

Began selling text-based advertisements associated with search keywords.

Granted a patent describing its PageRank mechanism.

In 2003; the company leased its current office complex from Silicon Graphics at 1600Amphitheatre Parkway in Mountain View, California-now known as Googleplex.

In 2004, Google acquired Keyhole, Inc that developed a product called Earth Viewerrenamed it as Google Earth.

2 years later, Google bought the online video siteYouTube for $1.65 billion


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Historical Perspective On April 13, 2007, Google reached an agreement to acquire Double-click for $3.1 billion.

On August 5, 2009, Google bought out its first public company, purchasing video softwaremaker Technologies for $106.5 million.

Also acquired Aardvark, a social network search engine, for $50 million.

In 2010, Google Energy appeared as its first investment in a renewableenergy project, putting $38.8 million into two wind farms in North Dakota.

On August 15, 2011, Google made its largest-ever acquisition to date when announced

that it would acquire Motorola Mobility for $12.5 billion. This purchase was made in part to help Google gain Motorola's considerable patent

portfolio on mobile phones and wireless technologies to help protect it in its ongoing patentdisputes with other companies, mainly Apple and Microsoft.

On August 13, 2012, Google announced plans to lay off 4000 Motorola Mobilityemployees.

On December 10, 2012, Google sold the manufacturing operations of Motorola Mobilityto Flextronics for $75 Million.

On December 19, 2012, Google sold the Motorola Home business division of MotorolaMobility to Arris Group for $2.35 billion.

On June 5, 2012 Google announced it acquired Quickoffice, a company widely knownfor their mobile productivity suite for both iOS and Android.

On February 6, 2013 Google announced it has acquired Channel Intelligence for $125million.


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Work Culture

A High-energy, fast paced work environment. Casual dress code.

There are workout facilities, a caf, well stocked snack rooms, anda dorm like environment.

20% time program.

On Fortune magazine's list of best companies to work for, Googleranked first in 2007, 2008 and 2012 and fourth in 2009 and2010. Google was also nominated in 2010 to be the worlds mostattractive employer.

Google's corporate philosophy embodies casual principles.

Co-founder Sergey Brin says that the fact that Google is fairlyengineering centric has been misinterpreted.

Google has many international communities- Gayglers(LGBT)Greyglers (Googlers over 40 years old).


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Product Portfolio Advertising:

Google Analytics

Google'sAdWords Google AdSense

Search Engine: indexes billions of web pages, so that users can search for the information theydesire, through the use of keywords and operators.

Productivity Tools: a free webmail service; Google Docs.

Enterprise Products: Google Search Appliance, Mini, Custom Search Business Edition-renamed asGoogle Site Search;

Google Apps-Basic Free Edition

Google Apps for Business, Education and Government.

Geospatial solutions-Google Earth and Google Maps

Security and archival solutions-Postini

Chromebooks:-Personal computing run on browser-centric operating systems.

Other Products:

Google Translate

Google News service

Apache 2.0

G1, the first Android-based phone

Google Chrome

Nexus One

Google Wave Google+


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Business Strategy

Googles Toronto Office reads proud to be geeks.

The employees dont need the next deadline or nextproject proposal to work on creating something, butrather an intrinsic challenge.

Focused on the human capital creation and retention

since becoming operational in September 1998. The Ten Things -The operating guidelines in a very broad

and yet amicable manner.

Aimed at creating innovative and unique solutions which

would uphold the brand equity and reputation. The strategy has been to provide the user a completely

precise and tothepoint customer experience and toaccept short term losses over long term goals.


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SWOT ANALYSIS

SWOT analysis is a management tool thatis used by most corporate organizations in

making decisive strategic decisions thathelps the organization to be stable andsustainable in the long term.


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Strengths

Googles Markets

Key Technologies

Free Software Quality of Personnel.

Capital Base & Revenue Streams


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Weaknesses

Weak Staff Loyalty

Ineffective Staff Recruitment

Security International Reputation

Motorola Acquisition Risk

Mobile Monetization

CPC woes


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Opportunities

Google Plus

Maps

Offers Shopping

News/Finance

Other Services Imobi

Google Books

Google TV


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Threats

Lawsuits

Competition

Economic Downturn Political Risk

Mobile Search

Human Resources

H R M t


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Human Resource Managementin Google

HR practices at Google are named People Operations, which is designed tounderline the fact that it is not a mere administrative function, but ensures to build astrong employee-employer relationship.

The HR team is made up ofgeneral HR business partners, internal consultants,line managers, learning and development, and recruitment teams.

Recruitment and Selection:

Developed a recruiting machine to categorize the jobs for the recruitment process.This contains details of the entire organization, requirements of the organization from the leaders to the entry-level employees. Through its branding, public relations,and recruiting efforts.

Recruiting functions such as employee referrals, college recruitment, extensiverecruiter training etc.

Applicant Tracking System (ATS).

Rigorous selection process-tough interview of nearly four rounds

Use ofmathematical problems while screening candidates.

Finally approved by Page

Evaluates candidates on their Googleyness, ability to work in Google's flatorganizational structure and their knack of working in small teams.

A ratio ofabout 1 recruiter for every 14 employees (1:14)


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Training and Development

Classes on individual and team presentation skills, contentdevelopment, business writing, executive speaking, deliveringfeedback, and management/leadership.

Free foreign language lessons, including French, Spanish, Japanese, and

Mandarin are also sponsored by Google. An Engineering training group, engEDU, provides orientation and training

classes, mentoring, career development, and tutorial services allprograms built by and for engineers.

In a survey, 92% of employees indicated that they are provided T&D tofurther them professionally, and 97% indicate that they are given the

resources and equipment to do their job. It is mandatory for all employees to undergo T&D sessions for a minimum of

120 hours/year, which is about three times the industry average inNorth America of 43 hours/year.


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Leadership Development

Learning and Leadership Development (LLD)team designs and implements innovativelearning programs that support and develop

the company's talent.

Their team is a creative, dynamic andcollaborative group that is responsible for three

integrated components of learning: the learningprograms of Google University, leadershipdevelopment and talent management


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Innovations in Googles

recruiting process

The new innovation in Googles recruiting function is the data-drivenapproach to candidate assessment. The companys newassessment tool relies on an algorithm to identify candidatesaccurately, so as to match or resemble with their existing top

performers. The algorithm evaluates the potential success of the candidates

and this innovative function recognizes and resolves the majordrawbacks in the assessment methodologies that rely on academicgrades,, degrees from top schools, prior industry experience and

subjective interview results. The transition from the common intuition approach to a scientific,

data-based approach


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Compensation Structure

Google stands out as being one of the mostsought after and yet one of the most underpayingemployers in the industry.

Googles compensation program, also called pay-for-performance, focuses on providing reward for

strong performance as well as training forovercoming weaknesses for underperformers.

Google emphasized on employee developmentthrough on-the-job learning, training throughclasses conducted by higher officials, frequentdepartmental meetings and lectures by famous

personnel. While fresh MBAs are offered salaries between

$80,000 and $120,000 per annum, experiencedengineers draw an annual package of $130,000along with 800 options.

software engineers at Google draw an enviable

compensation package as compared to theircounterparts at Microsoft or Yahoo!


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70/20/10Rule And LearningSupport

Employees have to divide their time at work into three parts:

70 percent are to be devoted to search and advertising,

20 percent (1 day of the working week) on a project of theirchoice, and

10 percent to far-out ideas.

In order to create a learning organization, Google put teammember within a few feet of each other. The result being thateveryone shares an office with one or more member of theteam.

And with immediate access to the entire team, Total QualityManagement (Quality and Integrated System) is coordinated withinthe team.


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Innovation

To encourage creativity and interactionamong employees, Googles office is designedso as to provide colors, lighting and shared room.

Also, Googles HR policies and work culture areunique and the managers are allowed to try newapproaches, to make mistakes and learn fromfailure.


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Social Good

Informal corporate motto Dont be Evil, whichreminds its employees that commitment to be ethicalis part and parcel of being a leader at Google.

99% of the employees indicate that, Management ishonest and ethical in its business practices.

Standards of conduct relate to :-

Internal business practices (respecting each other,

protecting confidentiality, protecting Googles assets, etc), External relations with customers and partners, and the

impact on of Google's work on the larger society


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Benefits And Perks

Googles main aim is toachieve several goalssuch as attract the best

knowledge-workers,help the employeeswork long hours byfeeding them gourmetmeals on-site, handling

other time-consumingpersonal chores and toremain as Googlers fora longer period of time.


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Human Resources Technologyand Operations

The Human Resources Technology and Operations team designs,implements and continuously evolves innovative technology tools thatenable all aspects of the HR function.

Used for maintaining accurate data over the course of an employee's

lifecycle, generating useful management information and resolvingend-user issues.

The team is a creative, dynamic and collaborative group that isresponsible for three integrated components of learning:

the learning programs of Google University,

leadership development and

talent management.


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Gaps and Problems in

Googles HumanResources and

Business Strategies


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Gaps in Recruitment andSelection

There are a lot of similar complains about hiring process and it is true thatGoogle hiring process is time-consuming, both for employees and forGoogle.

Google hiring process takes from one to four month and it is inconvenientfor applicants, however it is necessary from business performance view.

All new positions must pass through the respective budget approvals foreach area.

Additionally, recruitment at Google is not the sole responsibility of the HRteam. The need to hire the right people permeates across theorganization, becoming the outlook of every employee, turning Google

into a recruiting machine. Currently Googles head count has more than tripled however

managers need time for approval of each position in order to make theright decision.

So there is a need to understand the issues faced in the recruitment

process and accordingly modify the recruitment strategy.


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Gaps in PerformanceEvaluation and Compensation

Google is lacking in its ability to track the on-the-job performance of new hires.

The number of temporary and contract employees in the recruiting function at Googleis high.

The unwillingness to give permanent jobs immediately to recruiters may reduceGoogles ability to get experienced recruiters.

Googlesemphasis on attracting youngsters might hurt its ability to attract more seniorand experienced personnel. At the same time hiring more no. of contract employeesmakes the evaluation task all the more difficult.

Earlier Google used to give "Founders' Awards" in cash to people who made significantcontributions. The idea was to boost employee motivation, but it backfired becausethose who didn't get them felt overlooked.

Google rarely gives Founders' Awards now, and awards are limited to executives, notall employees. Also, Many knowledge workers feel that they are not being valued as thecompany matures.

Also the provision of stock options under which Google offers employees a percent ofits shares in the market; does not seem to attract many employees.

Most Google employees have base salaries that are significantly lower than the

industry average, even when those base salaries are supplemented by stock options.


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Challenge of growth

Analysts are concerned that as the company grows,it is difficult for it to provide the same financial andother incentives for its employees.

Googles meteoric growth also poses a threat to itsintimate team culture and its ability to handle creativeconflicts among Googlers.

Further, Google struggles to keep its culture away

from the shackles of bureaucracy while being able tostimulate its employees.

Avoiding organizational lethargy from creeping inwhile constantly launching new products is also notan easy feat to accomplish.


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Diversification Gap

In case of diversification, Google had troublein recruiting talented locals in its SouthAsian operations, a board member of Google

said (Business Week, 2005). In particular, it was cited a shortage of web

development skills such as knowledge ofJavaScript and Ajax (Asynchronous

JavaScript and XML), the web designtechnology used in the latest generation ofwebsites like Google Maps and Flickr. Middlemanagers also are in short supply.


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Gap in company nature

The nature of work at Google undergoes constant changes, hence fewemployees are able to achieve the task for what they were initially hired.

It is also opined that this may hinder the performance managementfunction. Because every hire has been extensively screened andGoogle believes, All employees have high potential and if someone fails,Google managers take the attitude that theyre to blame, not the employee.

Googles unconventional work culture has stirred many debates. A 12-hour working day has become a norm at Google, owing to its wide array ofemployee benefits.

Many employees find the work environment far too much fun and

perhaps even an overload of happiness. Most workers are able to find their focus and sanctuary at work, but

for some, a more professional and structured work environment isnecessary.


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Intense Competition andRecession

The competition at Google is highly intense due toeveryone trying to make one innovation or another as the

next in thing.

Google has suffered the impact of recessionary trendsand as a result of the challenging financial times,Google has tried to cut down on some of its benefits tobetter manage costs


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Pertinent Emerging Questions

How do Googles vision, mission and philosophy integrate with itsbusiness and HR strategies?

What are the possible future opportunities and threats for Google?

To what extent has Google achieved strategic fit in terms of horizontal

and vertical integration b/w its HR and Business strategies?

Do Googles benefits and perks attract employees more than the othertraditional companies?

How does the workplace environment benefit or distract theemployees focus on creativity and innovation?

What solutions should the management at Google adopt to addressfuture challenges and reduce the gaps specific to Googles Businessand HR Strategies?


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Recommendations

Misalignment and ineffective implementation of the employee recruitment andselection strategies which seem to have negatively affected the performanceevaluation activities as well of the HR dept thus leading to ineffective horizontalfit among the HR strategies of recruitment, selection and performance evaluation ofthe organization.

Google has to ensure that its employees retain not just because they are given avariety of benefits.

At the same time just providing flexibility to innovate and a vibrant coloredatmosphere wont bring innovation quickly

Also though the unconventional work culture has accelerated the pace of innovation;.There is a risk of the organization losing its dynamism and becoming more

bureaucratic The top management of the company headed by CEO Eric Schmidt needs to be

more proactive in revisiting and modifying their recruitment and retentionstrategies from time to time

Issues of the diversification gap to be addressed by focusing on the largerbusiness implications.


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Conclusion

There is ample evidence to show that Googles business strategy is indeedrealistic, rationale, and viable and not as insane as claimed by Microsoft CEO,Steve Ballmer.

The company has shown that it is capable of dominating all the associatedbusinesses and activities on the internet.

Horizonal integeration is highly overlooked due to loopholes in recruitment,selection, compensation backed by challenges posed by diversification, recessionand certain issues related to the workplace culture.

Google has managed to achieve vertical integration with its business strategiesand its Reward administration by an effective provision of a diverse range of employeebenefits and access to a no. of facilities

Google also has the possibility of achieving a successful strategic vertical fit b/wits organization development related HRM practices and innovation focusedcorporate strategies because of its unconventional culture.

To sum up Microsoft and Yahoo can try everything, but the large majority of peoplearound the world will always "google" things, not "yahoo" or "bing" them as Google hasan upper hand in business.

Google's HRM Strategies Presentation-Ambesh Govind,MBA-4B_078

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