Case study of Google, Assignments of Human Resource Management

Download Case study of Google and more Assignments Human Resource Management in PDF only on Docsity! 1 NOT A HAPPY ACCIDENT: HOW GOOGLE DELIBERATELY DESIGNS WORKPLACE SATISFACTION WHILE MUCH HAS BEEN SAID ABOUT GOOGLE'S ENVIABLE EMPLOYEE PERKS, THOSE JUST SCRATCH THE SURFACE OF HOW IT TOTALLY RE-ENGINEERED TRADITIONAL HR TO ENSURE A HAPPY AND PROFITABLE WORKPLACE. BY: MARK C. CROWLEY “Imagine a world where most organizations were the best place to work. Imagine what we could be getting done on the planet if it were true.”--Karen May, VP of people development, Google Few businesses in the world’s history have had as profound an impact on human life in such a short period of time as Google. Pause to consider that just 15 years ago, Google’s search engine, now used globally over 100 billion times a month, didn’t exist. Products most of us take for granted, including Google Maps, Gmail, Translator, Google Earth, and Android all were created since 1998 when Larry Page and Sergey Brin cofounded the firm with the soaring ambition of making the world’s information available to everyone. To punctuate the obvious, Google’s inventive achievements in a mere decade and a half are simply stunning. But in Google’s short lifespan, it has also grown from a two-man startup to an organization with nearly 37,000 employees in 40 different countries. This notable and relentless workforce expansion begs the very important question: How have they successfully managed and integrated all these new people while concurrently motivating them to be consistently loyal, ambitious, innovative, and productive? Over the past few years, the media’s coverage of Google has given considerable focus to the incomparable--and seemingly over-the-top--perks the company bestows on its workers. We’ve all seen photos of the bowling alleys, billiard tables, and people getting free haircuts during work hours. We know everyone gets free food, gym memberships, and even Wi-Fi-outfitted shuttle rides to work. Perhaps because so few of us can relate to an organization with this much generosity, we’ve instinctively judged them as an outlier. When we hear about Lego rooms and pets being allowed at work, we draw the conclusion that Google’s phenomenal success, not to mention its top ranking on Fortune's “Best Places To Work” list for the past two years, is entirely a result of these seemingly extravagant benefits. But this simply isn’t the case. 1 2 What few in business know is that Google has devoted the same level of intellectual firepower it used to create self-driving cars to discovering, refining, and implementing leadership practices that optimize human performance in the workplace. Upending traditional leadership theory, which directs organizations to squeeze as much out of people while paying them as little as possible, Google holds an authentic reverence for its employees and seeks to not just appeal to their uber-developed minds in motivating performance, but also to their very human hearts. I’ve just returned from a visit to Google’s global headquarters and from spending time with some of the people guiding the company's groundbreaking model of leadership--one that has helped its stock appreciate by over 650% since the firm’s IPO seven and a half years ago. (The Dow Jones average is up by just 44% in the same timeframe). Here are highlights of what I learned. 1.Being a great place to work is in Google’s DNA. In the company’s early days, long before it had thousands of workers, Larry Page and Sergey Brin set their sights on making Google a truly great place to work. Determined to attract and retain great talent, they went in search of organizations that had proven histories of caring for people, driving extraordinary innovation, and building truly remarkable brands. Ultimately, they identified the SAS Institute (currently ranked as the best multinational company to work for by the Great Place to Work Institute) as being one company worth emulating. "NO ONE HAS EVER ASKED US WHY WE SHOULD INVEST IN OUR PEOPLE. OUR LEADERS JUST ASSUME IT’S THE RIGHT THING TO DO."The Google founders met personally with SAS executives and sent a team of people to its headquarters in Cary, North Carolina. Collectively, they validated their understanding that people truly thrive in their jobs-- and remain loyal to them--when they feel fully supported and authentically valued. This led to the launch of plentiful perks and a culture intentionally anchored by trust, transparency, and inclusion. Few, if any, businesses ever have been built with employee happiness as its cornerstone. But in setting its sights on making employees contented, Google wasn’t seeking a competitive advantage as much as it was trying to ensure its own sustainable success. According to Karen May, VP of people development, “it’s less about the aspiration to be number one in the world, and more that we want our employees and future employees to love it here, because that’s what’s going to make us successful.” In a striking irony considering the analytics the firm uses to make most of its business decisions, Google takes it on face value that employee satisfaction is a profound driver of performance. Prasad Setty, VP of people analytics and compensation, told me: “No one has ever asked us why we should invest in our people. Our leaders just assume it’s the right thing to do.” 2 5 Regardless of which way you’re currently leaning, I’ll leave you to ponder the words of Google CEO Larry Page: “Almost everyone who has had an idea that’s somewhat revolutionary or wildly successful was first told they were insane.” Here’s a short list of the perks Google employees get when they sign on at the Googleplex:  If an employee's bangs are getting in the way during a furious coding session, he or she can schedule an on-site haircut free of charge.  To work off all those calories, employees can head over to a gym filled with equipment. For the aquatically-inclined, Google also provides swim-in-place swimming pools. These pools are narrow and not very long. Electric water pumps provide a strong current that flows in one direction. Employees swim against the current, staying in place within these small pools. Lifeguards are on duty to keep employees safe.  Employees can play against each other in a quick game of ping pong, billiards or foosball -- you can find game tables in several of the buildings on campus. There are also video games for employees who prefer to let their thumbs do all the work. Google employees can take a break and play a quick game of pool or foosball. Justin Sullivan/Getty Images  If an employee spills some of that fancy juice on his or her clothes, all is not lost. Google has laundry facilities available to employees on site. The company even offers dry cleaning services. It's not unusual for Google employees to bring clothes in over the weekend to do laundry at the Googleplex.  Google's healthcare plan includes on-site medical staff. If an employee suffers an injury or feels ill while at work, he or she can make an appointment with a doctor at the Googleplex.  Even with all the benefits and perks at the Googleplex, work can become stressful. Fortunately for Google employees, they can take advantage of a subsidized massage program. For a small fee, the employee can receive a massage from a licensed therapist in a private room. In fact, Google's massage rooms and bathrooms are some of the only areas in the Googleplex that have opaque walls. 5 6  Another famous benefit of working at Google is the 20 percent time program. Google allows its employees to use up to 20 percent of their work week at Google to pursue special projects. That means for every standard work week, employees can take a full day to work on a project unrelated to their normal workload. Google claims that many of their products in Google Labs started out as pet projects in the 20 percent time program. Many of Google's perks appeal to young people fresh out of college. The Googleplex provides a gentle transition from the academic world into the corporate environment. But what about employees who have moved beyond the campus lifestyle? Not all of their benefits have fared as well. 6