Case Study: Google

It's no surprise that Google has topped the list of Fortune 100's "Best Companies to Work for" yet again this year for a grand total of four times.

Their jaw-dropping company campus Googleplex is enough to make any professional drool for an opportunity to work for the world's largest search engine.Subsidized massages, afternoon volleyball breaks, bowling alleys and basketball courts and free chef-prepared food, are some of the perks employees enjoy.

But as much as Google's headquarters brim with on-site benefits, the true formula behind their success lies in the intangible: an organizational culture that is the paragon for every company across all industries. It is one of the key factors that make it all the more impressive for a company of this magnitude (more than 40,000 employees!) to become a pioneer for corporate culture and stay true to its founding philosophy.

So, what's their secret?

1. Thorough hiring process for the brightest and the best

Google receives over 1 million resumes each year, with less than 0.5% of all applicants actually being hired. The surprising thing is how meticulous they are with one as the other, assessing not only a candidate's technical skills and intellect, but also creative thought processes and quick-thinking abilities. Their hiring process allows Google to filter the flood of applications for extraordinary people who will best contribute to their innovative office vibe.

2. Making HR into a science

Using numbers to maximize the potential of their employees is one of the things that Google does best. The People Operations Department (fancy way of saying Human Resources) strictly uses data and analytics to make the most accurate people management decisions that they could make. From retention algorithms that predict which employees are most likely to leave the company, to studies revealing the optimal size and shape of cafeteria tables, Google knows how to gauge its personnel's efficiency with hard, grounded numbers. While companies like Google are innately data-oriented, the fact that they focus so much energy on identifying even the slightest nuances attests to their mission to instill the best corporate culture they can.

3. Casual, democratic atmosphere

Google is what one would call a "flat" company, with smaller number of middle managers and an upper management that is too hands-on to be categorized as separate, authority figures. This lack of top-down hierarchy cultivates a more open atmosphere for employees to voice their opinions and new ideas in various ways like employee engagement surveys.In essence, they know how to avoid the "monkey effect", providing opportunities for thoughtful discussions of decisions made about the company.

4. Clear Mission and values: why you do what you do

At the company's infancy, Google's founders wrote "ten things we know to be true" that would serve as the grounding values for their future. The list includes basic tenets like "It's best do one thing really, really well" and "Fast is better than slow" that have all shaped the core of its company culture, providing principles that Googlers can rally around as a compass for day to day behavior. It is pretty much in Google's DNA to experiment: innovation is in their blood. That hunger for innovation is what provides purpose in the office, aligning every employee's decisions with a simple, collective vision. Having a clearly articulated mission that is prominently communicated to all employees cultivates an intentional culture - an environment where people know why they do what they do, and love their work all the more for it.

5. Practicing transparency and open-door environment

Laszlo Bock, the Senior Vice President of People Operations, uses the phrase "Default to open" to describe one of the components that constitute Google's great office culture. Sharing information through weekly meeting called TGIF establishes transparency in the office, creating an environment where everything is up for debate. Founders Larry and Sergey host the event, where employees from around the world are encouraged to ask, then vote online on questions they most want answered. Companies that value collaboration and encourage transparency will develop a positive atmosphere in the office that can only make its people more productive.

6. Employee Recognition for small and big contributions

Google recognizes that appreciation is the best way to reward employees for their contributions. Recognition like The Founders' Award provides incentives for employees to do the best work they can do, the rewards from which, paid in the form of Google Stock Units that vest over time, are pretty enticing. But as much as Google likes to seize opportunities to acknowledge strong performances, the company is equally willing to celebrate failure as well. Employee appreciation leads to afearless office culture, where people are more willing to take risks. More risk, while daunting, means more fresh ideas that may be what a company needs rise to the next level.

7. Organizational Culture Boosted by Community Engagement Outside of Work

Commitment to community is one of the leading indicators of a great corporate culture. Google has contributed $1.2 billion to the Berkeley County data center facility as a long-term investment, along with close to $1 million for charitable causes in South Carolina. Events like Googlefest provide opportunities for employees to become involved in community building and training. Participation in such events adds another social dimension for the employees, strengthening relationships and paving way for a more enjoyable work environment.

You may be thinking that Google naturally has the luxury to practice these secrets due to their high business margins and seemingly endless resources. But the fact of the matter is that passion does not stem from profit or perks. It is their philosophy of providing meaning to their people's work that brings out the best in the employees, and by focusing on setting up a corporate paradigm that capitalizes on such a mindset, Google has and will continue to find success as one of the best employers across all industries.

Questions

1. Based on the culture at Google, which of the Universal Values of Schwartz would be important in the organization? Motivate why they will be important. (20)
2. Which work related attitudes would be important to Google and why? (20)
3. Use Schein's Model of organizational culture to discuss the three levels of Google's culture. Use practical examples from the case study for each level. (20)
4. Compare Leadership and Management and argue why Google has Leaders rather than Managers. (20)
5. Evaluate how the four functions of communication in an organization, manifests itself in Google. (20)