The importance of being

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Agenda

Introduction

1. Appraise Google’s architecture. How well suited is it to the company’s present competitive situation?

2. In which sector of the Goffee-Jones matrix would you place Google? How appropriate is that culture for the challenges confronting the company?

3. Analyse Google’s belief system. Are any parts of its paradigm outdated?

Conclusion

Reference

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Introduction

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More about Google...

Incorporated in 1998 by two computer PhD students from Stanford University, Sergei Brin and Lawrence Page.Organize the worlds information and make it universally accessible and usefulAn aid to the user not an distraction. (gaining perfect position in search engine).

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1. Appraise Google’s architecture. How well suited is it to the company’s present competitive situation?

Structuralhierarchy

Controlsystems

Values &belief systems

Contracts & Relationships(internal & external)

Informationinfrastructure

Architecture •Flat hierarchy (light employees supervising)•Autonomy (Working in informal way, clusters of 3-4)•Devolution (participative decision making)•Economic incentives (sharing risks and rewards ex: preference of structural chaos)

•“We love our employees, and we want them to know it”• Google minded• enjoyable working atmosphere• Trust

• “wild fun”•Light supervision

• Google provide high quality of employment package• Unique working environment (gym, massage room and etc.)

Easy monitoring and managing employees

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Main competitors: Yahoo.com, facebook.com, Microsoft and other

Competitive advantages :

• High speed of making decision and Outstanding teamwork • Employees have right degree of independence (The “70-20-10 rule”)• Easy transfer of information and knowledge • Unique environment condition in an organization which provide high level

of motivation and long term interest of employees • Hiring process (solve puzzle)

Conclusion : Unusual Google inc architecture helps company to compete in changing environment

1. Appraise Google’s architecture. How well suited is it to the company’s present competitive situation?

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2.a. In which sector of the Goffee-Jones matrix would you place Google?

Theory:

Two types of social relations Sociability and Solidarity.

Sociability: measure of emotional non-instrumental relations where individual regard one another as friends.

Solidarity: is the degree to which people think together in the same ways, sharing tasks and mutual interests.

Goffee R and at. all., (1999)

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• high level of trust• high levels of empathy• open door policy predominates• more loyalty to social group rather than organization • productivity can be low

• social ties are weak• communications are focused on business matters• encouraged competition between employees• high performance • employees stay as long as their personal are met

• strong team working• sharing the firm’s mission and value, risks and rewards• strong friendship relations • possibility of poor performance • difficult to sustain

•Low consciousness of organizational membership•People work with shut door• employee rarely agree with organization objectives

2.a. In which sector of the Goffee-Jones matrix would you place Google?

Low

HighLow

High

Soci

abili

ty

Solidarity

Networked Communal

Fragmented Mercenary

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2.a. In which sector of the Goffee-Jones matrix would you place Google?

Networked Communal

Fragmented Mercenary

Low HighLow

High

Soci

abili

ty

Solidarity

Based on the dimensions of Sociability and Solidarity, culture at any organization can be divided into four types:

Level of Sociability is high:

Friendly working environment with small supervision.

Employees working in small clusters.

Google Wi-Fi to keep employees connected 24/7.

TGIF-meeting to celebrate team accomplishments.

Level of Solidarity is high:

Equitable sharing of risks.

‘Boldly go where no one has gone before.’ (Leeds to enthusiasm).

‘Innovation is our Bloodline.’ (Employees are clear about the competition).

Corporate Identity ( Nooglers & Xooglers)

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2.b. How appropriate is that culture for the challenges confronting the company?

• Changing environmentLow flexibility of organisation culture because of strong culture (strong

reliance on founders values)Strong culture keeps high loyalty to organization

• CompetitionLow control: Stimulate the creation and sharing of new Googlye ideasLow control: Light supervision may lead to companies unsustainability in

competitive environment (facebook, youtube)

Saporito, 2011

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2.b. How appropriate is that culture for the challenges confronting the company?

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3.a. Analyse Google’s belief system.

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3.a. Analyse Google’s belief system.

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3.b. Are any parts of its paradigm out-dated?

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3.b. Are any parts of its paradigm out-dated?

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Conclusion

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Reference

• Haberberg A and Rieple A.,(2008), Strategic Management, Oxford university Press NY

• Goffee R and at. all., (1999), Harvard business review on managing people, Harvard Business Press USA

• Google Buzz: Killed (2010-2011) International Business Times, Fri, 14 Oct 2011, Regional Business News, International Business Times, Fri, 14 Oct 2011 (http://web.ebscohost.com/ehost/detail?sid=fac1adb4-e4bd-4e60-bfb1-8f6b18236b07%40sessionmgr11&vid=2&hid=19&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bwh&AN=231614%2F20111014)

• www.google.com

• Saporito, Bill (2011), Refreshing Google, Time177 (5), p48-49

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ANY QUESTIONS

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THANK YOU