Google is obsessed with data. Did you know that Google tested out new shades of blue for advertisement links? They experimented using real clicks by users, and Google learned that the purple-blue links were more enticing than green-blue links. They apply evidence-based management (EBM) principles to guide decisions about their product. But does Google apply such experimentation with the people who work for the company (referred to as “Googlers”)? Google is on the cutting edge of people analytics, and it is essential for their ability to attract and retain the best talent in the high-tech sector. People analytics is a data-driven approach that informs decisions about OB that result in policies and initiatives. For example, when Google is faced with a challenging problem such as the loss of top-performing employees, they want to know why. Instead of having managers discuss their opinions, Google uses an analytical approach based upon data gathering and statistics that results in better solutions. One of the most famous people analytics projects at Google is Project Oxygen. Google’s challenge was that their highly trained and self-motivated engineers questioned whether they needed managers. Googlers believed that managers did more harm than good. Google launched Project Oxygen to prove that managers don’t make a difference (this was their hypothesis). To accomplish the goal, they hired several PhD researchers who conducted surveys and interviews with employees about their managers. The team discovered that there was less turnover on teams with the best managers. The team also documented a statistical relationship between high-scoring managers’ behaviors and employee satisfaction. So, they concluded that managers did matter and then conducted another study to learn what Google’s best managers did...............

Discussion Questions

1. How does Google use EBM? Describe the type(s) of evidence Google used in their research for Project Oxygen.

2. Develop a plan for a people analytics approach to addressing the problem of how to improve the coaching behavior of managers. Be sure to describe the type of data you would collect, note how you would analyze it, and how you would tell the story.

3. Recently, Google has encountered issues with employees not trusting the transparency of upper management, and many Googlers have left (https://www.cnbc.com/2019/12/31/ google-veterans-the-company-has-becomeunrecognizable.html). Explain how the people analytics team might address this issue.