Business organizations are those legal entities that engage themselves in the production of a good or service with the intention of selling it for a profit and are much more focused on the long run survival in achieving organizational goals such as profitability, shareholder satisfaction, market share and share price growth, corporate governance, sustainability, market leadership and so on. Google is an internet search engine is focused on serving customers worldwide by managing its organizational functions in the light of its strategically advantageous position over the years by the understanding of the main components of competitive advantage and how to sustain it and analysis of the behavioral challenges faced by the company in the modern business environment.
Google indeed adopted some far-reaching management practices to achieve organizational goals. The most powerful motivator of the workforce was the requirement to become a shareholder of the company in addition to being an employee. Google’s employees served as equity holders with employee ownership. Next, the company encouraged teamwork in which 3 to 4 employees were teamed together so that time waste in coordinating work effort could be reduced and employees would be motivated by team spirit. In addition to these employee-friendly work practices and motivators, a number of others were also adopted. In fact, at Google, work teams tended to be smugly satisfied with their own performance in the absence of standards of reference. Performance of work teams has to be measured against relative performances of others and this requires common standards to be set up on a priority basis.
Broader level of employee participation, minimal hierarchy, in-house expertise and problem solving and job rotation practices were good measures but they were not backed by a system of performance-based metrics. However, with the ever-increasing threat of competition in the market, management practices at Google were oriented towards creating a pleasant work environment with a set of well defined corporate goals. Despite Google’s growth, its management is constantly considering and encouraging employee interaction and exchanging ideas among all level of employees and across the departments.
However effective management practices must be aligned with organizational outcomes such as internal value chain enhancement, productivity and motivation parameters. Google is practicing this kind of alignment in its strategy and policy by focusing on the rewarding system for individuals and teams. HRM is a functional strategy that needs a freer organizational environment to develop into a code-based framework or model of convergence. Google’s management practices were inherently flawed though it made some convincing efforts to identify workplace discontent issues and their implications for organizational outcomes. .