Google's Organizational Structure and Culture: An Analysis

This essay analyzes Google's organizational structure and culture, including its cross-functional structure, person-centered culture, and distributed leadership management style. It also discusses the importance of employee training and development in Google.

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Human Resource Management
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Table of Contents
Abstract............................................................................................................................................3
Introduction......................................................................................................................................4
Google’s organization structure.......................................................................................................4
Google’s organizational culture.......................................................................................................5
How the management style in Google influences employee motivation........................................6
Employee training and development in Google..............................................................................6
Conclusion and Recommendation...................................................................................................7
References........................................................................................................................................8

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Abstract.
Organization structure and culture is crucial in both small and large businesses since it
provides guidance and clarity on managing human resource issues. Besides, the type of
organization structure adopted by an organization can either promote inefficiency or efficiency.
In this essay, focus will be on Google’s organizational structure and different aspects of
Google’s organization structure will be addressed. To begin with, we have the current
organizational structure adopted by Google as well as changes made on the structure before.
Secondly, we have an evaluation of the culture that fits Google by the use of Charles Handy
model of organizational culture and how this affects recruitment. Thirdly, we have an evaluation
of how the management style in Google affects employee motivation. Lastly, we have a
discussion on the importance of training and development as a primary Human Resource
function in Google.

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Introduction.
Google’s success is linked majorly on the effectiveness of its organizational culture and
structure primarily in supporting excellence in innovation (Smithson, 2018). Besides, Google has
a dominant position in the technological space majorly due to its organizational structure and
culture. Google has a strong synergy between corporate culture and structure and this has led to
its high chances of success in its internet service business, management of its resources and
information technology. In addition, Google is considered as the best place to work by many
people particularly due to its organization culture.
Google’s organization structure.
Google embraces a cross functional organizational structure which is basically a matrix
organization structure with some degree of flatness. This structure is more of a team approach
since employees are allowed to be part of decision making (Skyler, and Seidel, 2018). This
structure places more significance on ideas and intelligence rather titles. Google’s organizational
structure includes three main characteristics. They include; product-based definition, function-
based definition, and flatness. The three main characteristics act as a basis for grouping
employees so that effectiveness can be maintained (Smithson, 2018). In 2015, Google
reorganized its organizational structure by introducing Alphabet Inc. Alphabet was to act as a
holding company by having independent units. The revised structure allows Google to focus on
new projects and ideas without devaluating the other company functions.

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Figure 1.1 Google’s reorganized organization structure Source:
https://www.fastcompany.com/40462340/alphabet-google-xxvi-holdings-restructuring-
reorganization-transparency
The cross-functional organizational structure gives voice to the employees since they are
treated as a crucial resource in the organization (Luenendonk, 2014). This motivates them to
work smartly and effectively. For example, the company hosts employee forums where
employees can voice out their concerns on how they are managed or how major problems can be
solved. Besides, the current structure promotes transparency hence portraying how the company
trusts its employees with confidentiality (Luenendonk, 2014).
Google’s organizational culture
Charles handy’s model of organizational culture incorporates culture in four distinct
kinds. They include; power culture, task culture, role culture and person culture. However, in
Google, the persons culture best explains Google’s culture as well as its characteristics. Person
culture model is a person-centered culture which is mainly concerned with looking after the
needs of the individuals in an organization (Noviantoro, 2014). People are the backbone of
Google. According to Larry Page, the CEO of Google, Google maintains an open culture that
allows everyone in the company to be an active contributor of opinions and ideas (Noviantoro,
2014). Besides, the company accepts people from different backgrounds as a reflection of the
global users the company serves. In meetings, Google employees have the freedom to ask
company executives including Larry or Sergey, founders of Google, direct questions hence
encouraging more interaction.
The person culture model influences new recruits in the Google in a positive way. To
begin with, employees are inspired to work since the company allows employees to choose
projects of their own interest hence being able to deliver excellently (Luenendonk,
2014). Secondly, since new employees can select project they are interested to work on, the
employees have plenty of flexibility. New recruits therefore may feel motivated to work since
the environment created psychologically benefits the employees in Google.

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How the management style in Google influences employee motivation.
Googles employs a distributed form of leadership management style which influences
motivation among employees in different ways. This means that employees are the center of the
company’s concern. To begin with, Google’s amazing perks and benefits motivate the employees
to be consistently happy and productive (Luenendonk, 2014). For example, Google reimburses
its employees up to a sum of five thousand dollars for legal expenses. Two, the company
provides maternity benefits with a hundred percent pay. Three, the company offers extrinsic
benefits such as dental benefits, flex spending accounts and no-cost health. Secondly, Google
gives freedom to its employees on how to get work done. This means there is a small degree to
which employees are supervised or controlled. This allows the employees to be more creative
and innovative.
Besides, the company allows the employees discretion on the hours of work. therefore,
employees can dedicate 20% of their time to do what they like (Luenendonk, 2014). In the 20%
employee free time, employees have been able to come up with revolutionary products such as
Gmail and Google Suggest. Lastly, since the management style gives considerable value to
employees, the employees have been able to communicate their ideas and thoughts effectively.
Fixing of problems has become much easier and efficient.
Employee training and development in Google.
In Google, employee training and development is essential since the company
understands people are the most crucial factor in its success. It is important that training and
development be treated as a primary Human Resource function in Google due to different
reasons. To begin with, we have improved employee performance. With adequate training
employees are able to produce excellent results due to their great understanding of their
responsibilities and roles (2020 Project Management, 2018). Besides, the confidence that comes
with understanding responsibilities enhances employee overall performance hence benefitting
the company. Secondly, we have consistency. A robust training allows employees to gain a
consistency background knowledge that increases efficiency (2020 Project Management, 2018).
In addition, the employees are able to increase their productiveness hence ensuring the financial
gain of the company. Thirdly, we have increased innovation. Since Google is dependent on

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innovation, conducting a robust training and development on its employees ensures creativity
and new ideas.
In conducting training, Google employs different human resource practices to ensure
effectiveness. To begin with, the company uses needs analysis to develop training programs
suited in supporting innovation in the workforce (Lombardo, 2017). Secondly, Google
incorporates finely tuned performance management practices so as to address human resource
needs effectively. Lastly, Google promotes teamwork so that the best people can teach the
others.
Conclusion and Recommendation.
Google’s organization culture and structure has portrayed significant success but other
companies such as Facebook, Samsung, Apple, and Microsoft are bringing new cultures that
bring about a competitive advantage. Google should reinvent its organizational structure and
culture after specific periods of time due to the changing market and economic conditions. This
will ensure Google is among the best companies to work for as well as a continually innovative
company. Besides, Google should continually promote employee participation and engagement
so as to ensure more innovation and creativity in the workplace. Employees will also be
motivated to be more productive in the workplace hence ensuring Google remains a competitive
company.

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References
2020 Project Management. (2018). The Importance of Training and Development in the
Workplace. [online] Available at: http://2020projectmanagement.com/resources/project-
management-training-and-qualifications/the-importance-of-training-and-development-in-the-
workplace [Accessed 11 Dec. 2018].
Lombardo, J. (2017). Google’s HRM: Training, Performance Management - Panmore Institute.
[online] Panmore Institute. Available at: http://panmore.com/google-hrm-training-performance-
management [Accessed 11 Dec. 2018].
Luenendonk, M. (2014). The Google Way of Motivating Employees. [online] Cleverism.
Available at: https://www.cleverism.com/google-way-motivating-employees/ [Accessed 11 Dec.
2018].
Noviantoro, T. (2014). ORGANIZATIONAL CULTURE IN GOOGLE INC.. [online] LinkedIn.
Available at: https://www.linkedin.com/pulse/20140904061228-154884582-organizational-
culture-in-google-inc/ [Accessed 11 Dec. 2018].
Skyler, H. and Seidel, M. (2018). Google's Organizational Structure. [online] Bizfluent.com.
Available at: https://bizfluent.com/about-6692920-google-s-organizational-structure.html
[Accessed 11 Dec. 2018].
Smithson, N. (2018). Google’s Organizational Structure & Organizational Culture (An
Analysis) - Panmore Institute. [online] Panmore Institute. Available at:
http://panmore.com/google-organizational-structure-organizational-culture [Accessed 11 Dec.
2018].