GOOGLE CASE STUDY
Executive Summary
This paper will use the problem-oriented approach in organizational behavior to identify some of the significant problems at Google based on the case study “Google’s Culture is truly unique.” Additionally, the paper will explore the underlying causes of these problems and possible solutions. Finally, it will include recommendations to act as the best solutions to implement.
Introduction
Organizational behavior is a broad interdisciplinary area of Management that borrows heavily from psychology, sociology, management, and organizational theory, statistics `among others. Five milestones measure the success of OB, including; e-business revolution, human relations movement, human and social capital, emerging areas, and quality management.
However, the human relations movement has a progressive move mode of thinking when it comes to human nature. It is this thinking that has led company executives to regard their employees as active social beings of deserving of having better and humane working conditions (Colquitte & Wesson 2017). Google’s significant problems include a bloated workforce, long hours of work, and job satisfaction. Other minor issues include high administrative costs.
Problem Identification and Analysis
Google’s employment roaster is approaching 10, 000. This is a very bloated workforce, which, if not well managed, can lead to redundancy and work duplication(Colquitte & Wesson 2017). However, Google has devised an ingenious way of ensuring there is organizational commitment. This is a compelling emotional attachment that exists among the employees and the organization. The company has invested in keeping the employees satisfied.
In a move aimed at increasing employee motivation, Google has set up café’s where employees get free food. It is the policy of the organization that no employee should stay 150 meters away from a food point. The food, however, is just the appetizer of the many perks that the company has to offer.
The company understands the need for cultivating employee job satisfaction, value attainment, need fulfillment, and equity is some of the things that Google uses to ensure that its bloated employment roaster feels satisfied (Colquitte & Wesson 2017). That is why people who work at Google universally see themselves as the most interesting on the planet. They tend to be happy-go-lucky on the inside.
However, although the company is doing well to make its bloated employee happy, much needs to be done to cut costs, especially on administrative costs. Since they do not leave the office, which will be discussed later is a dangerous practice, the company can cut costs through the adoption of automated processes (Colquitte & Wesson 2017). It would mean that the operating costs would be reduced hence increasing profits even further.
According to McClelland’s Need Theory, there are three individual specific needs, namely; the need for achievement, need for affiliation, and need for power. Since this is an acquired need theory, shaped by one’s life experiences. Google understands the need to give its employees experiences that makes them achieve these needs. The establishment of social places, rewards, compensation, reimbursements, and subsidized plans for employees is a way that Google uses to increase job satisfaction and employee retention.
Another challenge facing the company is employees put in too many hours of work per day. This is typical for most Silicon Valley companies. Engineers are seen at hallways at 3:00 AM discussing and debating future projects. This is necessitated by the company’s need to remain at the top of the game. Additionally, most employees are hard-core geeks who have nowhere else to go. To keep them motivated, with high organizational commitment, dedication to their work, senior job satisfaction levels, Google can ensure that employees’ needs are well taken care of.
However, putting in such long hours at work can be dissatisfying, lead to high levels of demoralization, reduce efficiency, and hence low productivity. There is a need to treat employees as active social beings and accordingly treat them humanely (Colquitte & Wesson 2017). They should be made to understand that they, too, need to take some time off their work. Have some time with their families.
Google should encourage a life-work balance. Even though the employees who put in such high hours are geek, they should be encouraged to have a life outside the confines of the campus. The company should promote a self-monitoring culture; that is, every individual should have the capacity to observe their behavior and adapt to the situation.
Nonetheless, the company scores points since it lets employees devote 20% of their time developing projects that they dream about that will eventually benefit the company. This is in line with Abraham Maslow’s theory of motivation. In theory, human beings have an inherent need for self-actualization (Davidson, Griffin & Griffin 2006). Google does this by allowing employees to work on their dreams hence creating high-level job satisfaction.
Google is seen to have high administrative costs. Although high prices go towards employee welfare, the company needs to think about cost minimization measures. Reducing the workforce could be an excellent place to start; at over 10,000 in the US alone is too big an employee number. Management is tasked with the role of balancing efficiency and effectiveness. Wood et al. (2009). Ability relates to the relationship between inputs and outputs and seeks to minimize resource costs.
Additionally, the organization has high compensation, reimbursement, and subsidies for employees. Reasonable tokens of appreciation that are not too extravagant would do. That would save the company thousands of dollars in compensation rebates.
Brainstorming
Google faces the problem of a bloated workforce due to the large number of employees who pose a possible threat of work duplication in the organization. Frederick Winslow Taylor developed a rational system perspective; that is ideated to maximize employee work output (Davidson, Griffin & Griffin 2006). It can be used effectively by Google to solve the issue of the bloated workforce. It has the following ideologies:
- Division of work between managers and other employees.
- Provision of incentives based on merit.
- Developing employees’ responsibilities based on science.
- Confirming that work is done efficiently on time.
- Training employees scientifically.
According to the scientific management theory postulated by Frederick Winslow, as a manager, you should know precisely what needs to be done and then see to it that it is done efficiently in the cheapest way. Based on the statistics given in the case study, the number of employees is quite high in a small geographic location. This imposes high administrative costs for the company, yet the money could be saved and plowed back into the company (Ellis & Dick 2006). Frederick’s theory is subtle to solve this issue as it will allow automation, which will reduce administrative costs for the company and also improve work efficiency in the organization.
Another problem affecting the company is long working hours by employees. The case study describes them as geeks who have nowhere to go but only saunter the hallways at 3:00 AM discussion projects. With time, they can have low morale as they are used to a never-ending routine, which can lower their productivity. Wood et al. (2019). They also have a higher possibility of getting a burn-out or depression due to overworking. A solution to this problem could be the division of labor. Adam Smith suggested that this movement has the following benefits to an organization:
- Automation within the institution hence saving on production costs.
- The occupational specialization which leads to skills distinction and increased productivity.
The division of labor eventually leads to the standardization of employees. One shortcoming is that employees may become rebellious to such mundane. According to Modernization theorist, Frank Dobbin, “Amid revolutionary progression to efficiency, modern institutions should be openly purposive” (Davidson, Griffin & Griffin 2006). Division of labor will enable the employees to finish work efficiently in time; hence they will have more time to enjoy with their families outside their busy geeky life within the campus.
The division of labor will also increase productivity and efficiency since the employees will do what they are best in, in considerable portions. The company should also encourage the employees to do a daily self-check on the activities they partake. This will enable the employees to take breaks, which are essential for self-rejuvenation and reflection. These moments will also be crucial to link up with friends and families to break the monotony of the busy work schedule (Davidson, Griffin & Griffin 2006). Division o labor incorporates this solution since the work will be finished in time; hence the employees will have more time for socializing outside work.
Google has created a favorable working environment for its employees, such as gyms and exquisite cafes. This creates a unique opportunity for the employees to learn about each other’s culture and also socialize. The employees also have a chance to learn foreign languages such as Spanish and Mandarin. This breaks the monotony of their busy schedule on the campus and creates a unique and excellent opportunity for culture expo (Colquitte & Wesson 2017; Davidson, Griffin & Griffin 2006). This creates an innovative working environment and advances the career of the employees.
Another problem facing Google is high administrative costs based on sustaining employee benefits in the organization. Possibly, the first solution that comes in mind is employee lay-offs. According to the Contingency Theory, it holds, “An institution should minimize the consequences of changing surroundings and internal constraints to maximize the output by employees.” Wood et al. (2019) relate to the present situation whereby laying off the employees would be considered as a go-to solution.
Reducing the number of employees will probably not be a good idea since this will be a loss to many employees who depend on the company as their sole source of income together with their families. Therefore, the company should look for an alternative method rather than altering the internal constraints. Google can offer non-extravagant incentives to employees based on merit. This will motivate the employees to work more efficiently.
Google motivates its employees with ‘Innovation Time off, ‘where they take 20% of their time to pursue personal innovation development not directly related to Google. The freedom of thinking about obligations results in the development of innovative ideas (Davidson, Griffin & Griffin 2006). The viable ideas are approved quite fast hence limiting bureaucracy. This human resource practice has been remarkable as it has improved employee productivity.
Recommendation
Google follows McClelland’s Need Theory, which suggests that “An individual’s life is shaped by their past experiences” (Pareek 2008). They have brought the world of their employees much closer to them through setting up social hangouts, exquisite cafes, pools, compensations, subsidiaries, and even incentives (Pareek 2008). Stacy Sullivan, the Human Resources Director, says that she can’t get enough of the Irish oatmeal and fresh berries at Plymouth Café.
She claims that she dreams of the place sometimes. This clearly shows that the employees are satisfied, and that is why the company can retain employees. Google also adheres to Maslow’s Theory, which depicts that, “Humans have an inherent need for self-actualization” (Pareek 2008). They allow their employees to use 20% of their time to develop their ideas and help them to actualize the viable ones into productive ideas with no bureaucracy.
The solution that is the best fit to solve the issues facing Google is the incorporation of Fredrick Winslow’s rational system and Adam Smith’s approach to the division of labor. Work will be divided accordingly; hence this will solve the problem of long working hours. Incentives and rewards will be awarded based on performance; therefore, this will reduce the high administrative costs (Ellis & Dick 2006). Division of labor will ensure work is done efficiently and on time, thus improving the morale of employees and reducing the chances of duplicating work. This will solve the problem of a bloated workforce.
Implementation
The solution of incorporating Winslow’s perspective and Adam Smith’s will be done by the Board of Directors to figure out the logistics. Then they will re-direct the orders to the managers in various stations. The employees will receive orders from their respective managers and implement them. The whole process may take approximately three weeks as employees get used to the new routine.
The costs involved include teaching the workforce scientifically as this is part of Winslow’s postulates. Savings will cover this from non-changing tasks due to division of labor hence saving the company money (Ellis & Dick 2006). Due to the division of labor, employees will get to exercise the skills they are best in, thus specializing in their occupation.
The managers will divide work evenly among employees, thus reducing the long- working hours and a bloated workforce. The employees will be able to meet their daily goals and accordingly be awarded upon merit. This will, in turn, save the company money as employees strive to reach their goals.
References
Colquitte J, Lepine J & Wesson M 2017, Organisational behavior: improving performance and commitment in the workplace, 5th ed., McGraw-Hill Irwin, New York.
Davidson, P., Griffin, R. W & Griffin, R. W 2006, Management: core concepts and skills, 5th ed., John Wiley & Sons, Milton.
Ellis, S & Dick, P 2006, Introduction to organizational behavior, 4th ed., McGraw-Hill Education, Maidenhead.
Pareek, U 2008, Understanding organizational behavior, 3rd ed., Oxford University Press, New Delhi.
Wood J, Zeffane R, Fromholtz M, Wiesner R, Morrison RR, Factor A & McKeown T 2019, Organisational Behaviour: Core Concepts and applications, 5th ed., John Wiley & Sons, Australia.