Abstract
Google was established in 1996 when founders, Sergey Brin and Larry page, started it as a search engine to rank websites. They modified the search engine and later on decided to register the company in 1997 under the domain google.com. The corporation was formed the following year. Over the years, Google has developed into one of the best managed companies not only in the U.S.A but also in the entire world. Recently, the company was ranked as the best managed and one whose employees were the most satisfied. Google’s management has engaged in CSR, sustainable practices, embraced diversity and its strategic decisions are desirable. It has also ensured that its global operations are well coordinated through the efficient leadership style.
Management Analysis- Google
Google is one of the best managed companies in the world today. The company began in 1996 when founders Sergey Brin and Larry page started it as a search engine to rank websites. They modified the search engine and later on decided to register the company in 1997 under the domain google.com. The corporation was formed the following year. In 2000, the company began selling advertisements on its website. In 2001, Google CEO Larry Page stepped down for Eric Schmidt, who was formerly the CEO of Novel. Google launched its email service called Gmail, which currently has millions of users rivalling Hotmail and yahoo mail services. The same year, the company launched Google maps, a creation that is used today by people all over the world. In conjunction with NASA, Google set up development and research centre in 2005. This was followed by the launch of Google on the moon and the planet mars. The company has realized several technological milestones that have seen it rank among the best companies worldwide. The company is also reputable for its sound management practises. This paper seeks to canvass some of those management practises.
Google has been on the fore front in corporate social responsibility. The company has been active in various countries taking part in social responsibilities. Google is committed to philanthropy and to help avert some of the global challenges in the 21st century such as climate change, poverty and education. As from 2007, Google started several social initiatives in countries such as China and other developing nations. The objective of these initiatives is to concentrate the company’s resources towards creating awareness in society and encourage participation in development of activities of social responsibility. Google has an initiative in China named the China Social Innovation Cup. It is a tournament held for college students in the country. It helps empower youths in the Asian country to become responsible and embrace change in society. This will lead to economic, social and political growth. Google also takes part in supporting people affected by natural disasters, specifically earthquakes. The company has over the years taken the initiative to help people affected by earthquakes in different nations. In Sichuan Province, situated in western China, Google has helped various schools to return back to normalcy after there was a massive earthquake in 2008. Google also provides grants to needy nations and societies. This initiative has supported many organizations pursue their causes. The company has also funded many more initiatives in China and other countries as part of its corporate social responsibility.
Google is also one of the best companies in terms of sustainable practices. The company takes part in helping reduce the prices of renewable energy around the world. This is part of their efforts to ensure that the environment is secured and that non-renewable energy sources such as coal are preserved. The company runs a green business endeavour where it has invested over 350 million dollars in generation of renewable energy projects. The company has constructed the Shepherds Flat in Oregon, which is the largest wind firm in the world. Google also owns the Ivanpah Solar Thermal Complex.
Sustainability has been demonstrated in Google’s business operations such as the reduction of energy consumed in its data centres by 50 percent. The cooling system in the Google offices and operation houses is the evaporative cooling system, which is energy conversant to ensure that as little energy is consumed as possible.
Diversity is one of the characteristics of Google. The company has adopted a system whereby it seeks the best talents from all over the world with the objective of finding the appropriate level of diversity. Today, Google’s labour force is very diverse as it has employees from all parts of the world. The company has also embraced diversity in its operations as it seeks to raise revenue through various means. Today, the company runs the Google maps, YouTube, Gmail, advertisements and other services that have been developed to raise revenue. The company is among the most diverse oriented in the world.
Google is a global company. It manages its operations in a unique way. The company has a network of offices around the world. It is through the national headquarters that the company manages its operations in different countries. All regional offices report to the headquarters where the company’s policies and operations are conducted. The company’s centralized system of management is effective because the managers in various countries around the world report to the headquarters and receive orders on what to do from the managers at the headquarters.
Google ensures that there is an entrepreneurial and creative environment within the company through its recruitment policy. The company searches all over the world for the most talented individuals who are innovative and entrepreneurial. These people are nurtured to become the company’s centre of operations. This ensures that the company has a group of employees who formulate and implement various entrepreneurial ideas and use their creativity to ensure that the company achieves its main objectives. Google has so far managed to maintain high levels of creativity and entrepreneurship by finding and holding onto the best talents available. The employees are well remunerated to ensure they do not look elsewhere for better pay.
The planning and decision making at Google is done at the company’s headquarters. The company has a centralized system of management where all the major decisions are made at the top level of the organization. The strategy formulation process is done by the top managers who also plan how the company’s future operations will be done. The decisions are then implemented by the regional and junior managers in the company. The recruitment practices of Google are similar to those of many top companies. The company looks for talented young people with the potential of improving their potential. They recruit these people as soon as they graduate from institutions of higher learning. The company also identifies talented individuals in other companies and approaches them to work for them. This method is successful because the people recruited have a lot of potential to improve the company’s performance.
Google’s leadership style is the centralized system of leadership. The top leaders make the major decisions. The hierarchy order is respected and the major responsibilities are given to top managers and executives. The junior employees simply take orders and implement them as instructed. In order to motivate their employees, Google has one of the best remunerated employees. The working conditions are also very friendly since the facilities available ensure that the employees are satisfied. Best employees are recognized through awards and promotions. These factors keep employees motivated to perform well. The organization also undertakes several measure to ensure that there is proper group and team development. The employees are required to attend seminars and training sessions where they are taught on how to work as groups or teams in harmony. The company prepares for this aspect also by ensuring that the people it hires are team players who are dynamic enough to participate positively in team work. This helps develop a strong team that would lead to prosperity.
Google is a technology company. It embraces the newest technology to improve the services it provides to its clients. This guarantees quality performance. The company uses these technology to monitor its operations in different areas around the world. Through technology, Google has been able to ensure that it implements its CSR initiatives, sustainability and most of its business activities. Google’s organizational culture is unique in that talent and work ethic are given top priority. Organizational performance is given heavy importance hence; employees are expected to use their creative and entrepreneurial skills in order to impact positively on other people and the performance of the company.
Therefore, Google is one of the best companies around the world because of its management system. The system of management is very detailed and focuses on the productivity aspect of the company. The sustainability, CSR and employee satisfaction aspects are also given top priority. However, Google can adopt other ways that would add to its success. The company can further diversify their production capacity to ensure that they harness from various business areas. This would help earn revenue and increase profitability. The company has focused its CSR activities in Asia and specifically Chin. The company should get involved in CSR activities in other countries in order to help people in need in other places too. Lastly, Google should also intensify its sustainability programs in other parts of the world in order to make a bigger impact on climate change and energy conservation. Regardless of these recommendations, Google remains one of the best companies in terms of management. Other organizations should use it as a model organization when formulating their management systems.
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