Unit 2 Human Resources Department

Google’s Organizational Structure Type and

Characteristics
Google has a cross functional organizational structure. In essence, this
structure is of the matrix type. However, in this specific business case, the
company maintains flatness as a major factor that influences functions
throughout the corporate structure. The following are the main
characteristics of Google’s corporate structure:

1. Function-based definition
2. Product-based definition
3. Flatness

Function-Based Definition. This structural characteristic refers to grouping

of resources and processes based on business function. For example,
Google’s organizational structure involves a group for Global Marketing,
and another group for Finance. An executive heads each of these groups.
This function-based grouping is responsible for organization-wide strategic
decisions and direction. For instance, Google’s operations management
approaches are developed and defined through these function-based
groups at the corporate headquarters. This characteristic of the company’s
corporate structure influences business processes, such as top-down and
bottom-up communications, as well as strategic management to solve
problems encountered at various levels and areas of Google’s organization.

Product-Based Definition. Google’s products are developed through the

support of product-based groups in the company’s corporate structure. This
structural feature addresses the need to develop innovative and competitive
products, such as the ones enumerated in Google’s marketing mix or 4Ps.
For example, the company has a group for Cloud operations, and another
group for Artificial Intelligence operations. An executive heads each of
these groups. Through this characteristic of the organizational structure, the
business satisfies current and future market demand and consumer
preferences regarding information technology and consumer electronics
products, such as Search, mobile apps, and mobile devices. This ability
helps fulfill Google’s corporate vision and mission statements. The
company’s product lines are aimed at enhancing people’s access to
organized information, especially information through the online
environment.
Flatness. This structural characteristic involves the minimization of vertical
hierarchical lines of communication and authority, despite Google’s
function-based groups. For example, through its flatness, the company’s
organizational structure enables employees, teams, and groups to bypass
middle management and communicate directly with upper management.
Also, in this way, Google’s corporate structure facilitates meetings and
sharing of information among employees and teams belonging to different
areas of the organization. This structural feature is a major contributor to
innovation for novel products that help in business diversification, which is
among the business strengths outlined in the SWOT analysis of Google
LLC. This characteristic of the organizational structure supports Google’s
corporate social responsibility strategy and stakeholder management,
especially in terms of increasing employee morale, motivation, and
satisfaction in their work as part of the company’s business and long-term
success.

Google’s Corporate Structure – Recommendation

The flatness of Google’s organizational structure has the advantage of
promoting innovation and creativity, based on the sharing of knowledge
throughout the business organization. In relation, the company’s corporate
structure has the benefit of facilitating innovation specific to product
development. Google’s product based groups are designed for this
purpose. These advantages are in addition to the company’s function-
based groups that ensure coherence throughout the business. In spite of
these advantages, Google’s corporate structure has room for improvement,
especially with regard to flexibility.

A recommendation to improve Google’s corporate structure is to address

possible flexibility issues. The corporation’s current structural characteristics
are effective in supporting flexibility in human resources. For example, the
organizational structure’s flatness optimizes flexibility in how Google’s
employees share knowledge and develop products. However, the business
applies corporate standards that limit overall flexibility in customizing
products to suit customer preferences based on regional and local market
conditions. A way of addressing this strategic issue is to increase the level
of flexibility of product-based groups through policies and adjustments in
the company’s corporate structure. For instance, additional positions within
teams or groups can add to such flexibility. This recommendation is
intended to address concerns regarding how Google’s organizational
structure supports the ability to satisfy various customer preferences and
regional market characteristics.
UNIT-5 HR RECRUITMENT & PRESELECTION PROCESS
Google's HR department is unique and innovative (and claims to re-invent the field of
HR). It is referred to as People Operations (POPS), to distinguish it from administrative
functions. POPS consists of HR professionals, former consultants and analysts. The
department takes a data-driven approach. At Google HR treated more like scientific work
rather than the traditional HR. Everything can be measured. “Data is central to
everything we do — even when we choose a paint color for a conference room wall or
plan a lunch menu. Laszlo Bock, SVP of People Operations, and David Radcliffe, VP of
Real Estate and Workplace Services, explain our data-centric approach to creating work
environments that help Googlers live longer, healthier and more productive lives”
(Google 2014).

POPS focuses on finding the world's most innovative people, creating training
programmes and ensuring that employees are satisfied with their work. Google is very
international and it prides itself on diversity and inclusion. It aspires to be a “workplace
that works for everyone, in every country, and in every culture in which [it]
operates” (Google 2014). The main activities at POPS are divided into three broad areas
which can be summarised in the phrase: Find them, keep them, grow them. “Find them”
deals with recruiting and hiring practices at Google. The main objective is to find people
who have a lifelong dedication to learning, inquisitive minds, are passionate about their
work and are open to evolution and change. “Grow them” deals with training and other
activities, which create and preserve the best in their employees (employees are referred
to as Googlers by the company). Lastly, “keep them” deals with Googlers' commitment,
satisfaction and retention (Albert 2013).

Recruitment and Hiring Process in Google

The recruitment process of Google is the foremost phase in the whole HR procedures. Since
Google is considered as the second home of the technology experts and it is always open for
those who want to work in the company, there are over 1,300 resumes sent to the Google’s
HR department every day. Hiring those applicants who deserve the vacant positions is the
main philosophy of the HR department.

On the other hand, the retention percentage as well as the income data at Google
serves as the proof that the company is successful in attracting, retaining and
motivating even the most complex crop of workers.

Google hosts different outdoor activities throughout a year that shows their combined
outstanding recruitment practices and the company’s awareness about the interior
culture that they would like to maintain. The company is determined to look for the
people who would be successful on their open and collaborative culture.

Training and Improvement Opportunities for Google Employees

Google staffs are offered with several opportunities in which they will learn and
develop their skills. Professional growth opportunities that are typically offered to their
employees involve individual or by group presentation skills classes, executive
speaking, management, business writing, and giving feedback. There are also free
classes for foreign languages such as French, Mandarin Chinese, Japanese and
Spanish.
Google has expanded its worldwide learning and improvement team since last year
and is now making new management development programs in order to develop and
assist the future leaders of the company. Based on a survey, 92% of Google
employees showed that they are given with training and development programs to
become more professional while 97% have said that they have the necessary
resources and tools to fulfill their jobs and responsibilities.

It is a requirement for all staffs and employees of Google to undergo their programs
and opportunities for development for at least 120 hours in every year. It reveals that
the total effort, resources and time invested by Google for its employees is to keep
them professionally and technologically advanced.

The Compensation Structure of Google

Google stands out as the company is included in the list of the most preferred but
one of the most underpaying companies within the industry. On the other hand, the
HR strategy suits perfectly along with the vision and its business model wherein the
employees are enticed not because of the short period financial returns from their
job, but with the support program that can help them in creating anything.

Thus, the work hives in Google come with day care and elder care centers, spa and
salons, car wash with oil check services and many more that all technology-
obsessed nerds will obtain as a benefit package yet the real take-out money
component is unimportant.

The job development and employee dedication adjusted with the technology
solutions instead of the substantial compensation that Google had been the first
organization where the Director’s Board asked for a deduction in their incomes and
compensation since they realize that they are provided with more money compared
to the actual level of their necessities.

All employees of the company agreed on that matter and during the years 2005 and
2006, the workers formally demanded the wage cut. At that time, the turnover
percentage is around 1.43%.

The Bonuses and Benefits for Google Employees

The following are the benefits that all employees of the company will get:

• No limit sick leave

• 27 days paid time-off after a 1 year tenure on the company

• On site health and dental care facilities, oil change, car wash, physical fitness
center, free meals for breakfast, lunch and dinner every day, banking center and
courier service.

• 18 weeks of extra paid time-off for post maternity leaves and new fathers could take
7 weeks off from their jobs

• Annual on site medical fair that offers testing services for free that include eye
examinations and cholesterol check
• Free flu vaccinations
• Fuel-efficiency car incentive program that gives a $5,000 rebate for all employees
who purchased hybrid cars.

Google understands that looking for the best talent is not restricted to age, gender,
nationality or even to individual experience, but stems from diversity and individuals'
abilities. Hence, it is important for Google to support diversity of norms throughout its
offices worldwide and to embrace the local expressions of each location, ensuring there
are differences between offices and employees across countries. For example,
in Google's global headquarters (also known as the Googleplex) in Mountain View, USA,
the company implemented its garage roots into the metal, wood, welding and electronics
workshops. In this location the main focus is on changing the world at Google. In Dublin,
Ireland (the European headquarters), the company included the culture of the city in its
four modern buildings, including music rooms and kitchens which look like a traditional
Irish pub. The walls have pictures of Irish folklore, street art graffiti and panoramic
photos. The complex also has a Father Ted themed cafeteria (Father Ted is a popular
sitcom set in Ireland). Google Ireland employs Googlers from 65 countries. In this
location – which serves customers not only in Ireland but across Europe, the Middle East
and Africa – a special emphasis is put on recruitment and selection of individuals who
speak diverse languages; for example individuals who can speak Swedish, Danish or
Finnish are currently in high demand in the Irish Google office. In Tokyo, Japan, the
interior has traditional Japanese design components. The cafeteria offers local
specialities and tatami-style seating (in order to eat, the Googlers must take off their
shoes) and the subsidiary mainly seeks Googlers with diverse backgrounds. Zurich,
Switzerland, has a different colour theme on every floor and one of the unique features is
the old-style gondola ski lifts, where Googlers can find some privacy. The office is
extremely diverse as it brings together 75 nationalities. One of Google Switzerland's
integration activities, as is typical for Google around the world, is to hold TGIF (Thank
God it's Friday) meetings in a very informal way to discuss all relevant issues with all
employees. In Zurich, each meeting has a theme based on a different European, Middle
Eastern or African country.

Moreover, Google ensures that it is an attractive location to work and that it not only

contributes to philanthropic activities worldwide but in the particular locations where it
operates. For example, in the United States the company highlights the fact that it
participates in beach clean ups and helps out local schools; in Ireland, the company
promotes the Age Engage programme, in which Googlers create digital awareness
among older people; in Poland Googlers donate time to painting schools, planting
community gardens and cleaning neighbourhood playgrounds; in Japan, after the
earthquake of 2011, the company created and implemented Person Finder within two
hours; in China it offered financial support for Sichuan, which suffered an earthquake in
2005; in Switzerland Googlers volunteer to work at pet shelters, etc.

Google looks for its employees not only from outside of the organisation but also from
within. For example, when Google wanted to introduce a new vertical market based
structure in Europe in order to attract more business advertisers, the company internally
promoted Jeff Levick (originating from the American office) from its financial services
group to vertical markets director for Europe. The promotion was tantamount to a
relocation requirement to the United Kingdom, where Levick was responsible for
implementing a vertical management structure similar to the US structure (Econsultancy
2005).