Google's Organizational Culture: A Recipe for Success

The Impact of Organizational Culture on Organizations and Management

Organizational culture has a strong impact on organizations and management, which emerges from its nature and its content. The behavior, actions, and interactions of the members of an organization emerge from the meaning that the reality of that organization has for them. Googleis one of the few companies that successfully combine technological innovation with a strong organizational culture.

Google is one of the best-known and most admired companies around the world, so much so that “googling” is the term many use to refer to searching information on the Web. What started out as a student project by two Stanford University graduateLarry Page and Sergey Brin in 1996, Google became the most frequently used Web search engine on the Internet with over 1 billion searches per day as well as other innovative applications such as Gmail, Google Earth, Google Maps, and Picasa. Google grew from 10 employees working in a garage in Palo Alto to 10,000 employees operating around the world.

Google strives to operate based on solid principles that may be traced back to its founders. In a world crowded with search engines, they were the first company that put users first. Their mission statement summarizes their commitment to end-user needs: “To organize the world’s information and to make it universally accessible and useful.” While other companies were focused on marketing their sites and increasing advertising revenues, Google stripped the search page of all distractions and presented users with a blank page consisting only of a company logo and a search box. Google resisted pop-up advertising, because the company felt that it was annoying to end-users.

Keeping their employees happy is also a value they take to heart. Google created a unique work environment that attracts, motivates, and retains the best players in the field. Google has been  ranked as the number 1 “Best Place to Work For” by Fortune magazine. This is not surprising if one looks closer to how Google treats employees. On their Mountain View, California, campus called the “Googleplex,” employees are treated to free gourmet food options including sushi bars and espresso stations. In fact, many employees complain that once they started working for Google, they tend to gain 10 to 15 pounds! Employees have access to gyms, shower facilities, video games, on-site child care, and doctors. Google provides 4 months of paternal leave with75% of full pay and offers $500 for take-out meals forfamilies with a newborn. These perkscreate a place where employees feel that they are treated well and their needs are taken care of.Moreover, they contribute to the feelingthat they are working at a unique and cool place that is different from everywhere else they may have worked.

Google's Success Story

In addition, Google encourages employee risk taking and innovation. How is this done? When a vice president in charge of the company’s advertising system made a mistake costing the company millions of dollars and apologized for the mistake, she was commended by Larry Page, who congratulated her for making the mistake andnoting that he would rather run a company where they are moving quickly and doing too much, as opposed to being too cautious and doing too little.

Google’s culture is reflected in their decision making as well. Decisions at Google are made inteams. Even the company management is in the hands of a triad: Larry Page and Sergey Brin hired Eric Schmidt to act as the CEO of the company, and they are reportedly leading the company by consensus. In other words, this is not a company where decisions are made by the senior person in charge and then implemented top down. It is common for several small teams to attack each problem and for employees to try to influence each other using rational persuasionand data.

In a company emphasizing hiring the smartest people, it is very likely that they will attract big egos that may be difficult to work with. Google realizes that its strength comes from its “small company” values that emphasize risk taking, agility, and cooperation. Therefore, they take their hiring process very seriously. Hiring is extremely competitive and getting to work at Google is not unlike applying to a college. Candidates may be asked to write essays about how they will perform their future jobs. Organizationally, Google maintains a casual and democratic atmosphere, resulting in its distinction as a “Flat” company. The company does not boast a large middle management, and upper management is so hands on, it’s hard to qualify them in a separate category. Teams aremade up of members with equal authority and a certain level of autonomy is maintained. The Google culture is probably one of the most positive, influential, all-encompassing, productivity-inducing environments the world has ever seen. A statement from Larry Page explains:

"We hire people who are smart and diligent, and we prefer the ability over experience. Although Google employees share the same goals and vision for the company, we accept all people from different backgrounds and with a diversity of languages, reflecting the global users we serve. Outside of work, Google employees perform a variety of hobbies, ranging from cycling to beekeeping, from playing frisbee to dance the foxtrot. We try to maintain an open culture that is often associated with the company longer, which is where everyone is an active contributor and feel comfortable to share ideas and opinions. In our weekly mandatory meetings ("TGIF") not including those via email or in the cafe-Google employees ask questions directly to Larry, Sergey, and other executives about the company's problems, no matter how many. Our offices and cafes are designed to encourage interaction between Google employees in teams as well as to turn conversations about work to play.”

1. Why is culture so important to organizations? Give three specific examples to support your answer from either article.
2. What wisdom can be gained from Vince Lombardi’s “less well-known” quote? Can this be applied to non-sports organizations? Why or why not?
3. Why is trust so important in an organization’s culture? Be specific.
4. Why is engagement so important in an organization’s culture? Be specific.
5. What might be some organizational advantages to having a culture similar to Google’s?List at least three. Be specific.
6. What might be some organizational disadvantages to having a culture similar to Google’s? List at least three. Be specific.