Google is well known for its cross-functional or team-based organizational structure.

The cross-functional organizational structure used by Google is more of a team approach to

management. By allowing all employees to be a part of decision-making, Google maintains a small-
company feel and promotes the notion that all employees play an equally important part in Google’s
success. This type of structure places more importance on intelligence and ideas than on titles.

The cross-functional organizational structure is technically a matrix corporate structure with a

considerable degree of flatness. This flatness is a defining structural feature that supports the
company’s growth and competitiveness. The main characteristics of Google’s corporate structure
are as follows:

Function-based definition

This structural characteristic refers to grouping of resources and processes based on

business function. his function-based grouping is responsible for organization-wide strategic
decisions and direction. This characteristic of the company’s corporate structure influences
business processes, such as top-down and bottom-up communications, as well as strategic
management to solve problems encountered at various levels and areas of Google’s
organization.

Product-based definition

This structural feature addresses the need to develop innovative and competitive products, such as
the ones enumerated in Google’s marketing mix or 4Ps. Through this characteristic of the
organizational structure, the business satisfies current and future market demand and consumer
preferences regarding information technology and consumer electronics products, such as Search,
mobile apps, and mobile devices. This ability helps fulfill Google’s corporate vision and mission
statements. The company’s product lines are aimed at enhancing people’s access to organized
information, especially information through the online environment.

Flatness

This structural characteristic involves the minimization of vertical hierarchical lines of

communication and authority, despite Google’s function-based groups. , Google’s corporate
structure facilitates meetings and sharing of information among employees and teams
belonging to different areas of the organization. This structural feature is a major contributor
to innovation for novel products that help in business diversification.This characteristic of the
organizational structure supports Google’s corporate social responsibility strategy and
stakeholder management, especially in terms of increasing employee morale, motivation,
and satisfaction in their work as part of the company’s business and long-term success.
REC

The flatness of Google’s organizational structure has the advantage of promoting

innovation and creativity, based on the sharing of knowledge throughout the
business organization. The company’s corporate structure has the benefit of
facilitating innovation specific to product development. These advantages are in
addition to the company’s function-based groups that ensure coherence throughout
the business. In spite of these advantages, Google’s corporate structure has room
for improvement, especially with regard to flexibility.

The corporation’s current structural characteristics are effective in supporting

flexibility in human resources. However, the business applies corporate standards
that limit overall flexibility in customizing products to suit customer preferences
based on regional and local market conditions. A way to solve this strategic issue is
to increase the level of flexibility of product-based groups through policies and
adjustments in the company’s corporate structure.

Google’s Organizational Culture Type and Its Characteristics

Google has an organizational culture for innovation. The company also emphasizes the importance
of openness among employees, as a way of promoting an innovative mindset. The resulting
innovation applies to Google’s approaches in competing in various industries. For instance, the
company innovates its technological assets and services provided to customers in the online
advertising industry. The following characteristics define Google’s corporate culture:

Openness

Innovation

Excellence that comes with smartness

Hands-on approach

Small-company-family rapport

Openness. This cultural characteristic refers to the sharing of information among Google’s
employees. The company’s objective in promoting openness is to encourage the dissemination of
valuable knowledge that can support further innovation. For example, the corporate culture
motivates individual employees to interact with each other at various times of their typical workday,
as a way of improving the knowledge they use in their jobs. In relation, Google’s operations
management strategy supports this cultural trait through appropriate workplace layouts that
facilitate such interaction. Also, the design of Google’s organizational structure enhances the
organizational culture by encouraging workers to communicate and share their ideas.
Innovation. Innovation is a critical success factor in Google’s business. The company’s organizational
culture motivates employees to contribute to the overall innovation of the business and its products.
For example, this cultural characteristic promotes employees’ out-of-the-box thinking to discover or
invent new solutions to current and emerging needs in the multinational market. Innovation
contributes to business effectiveness in addressing the trends enumerated in the PESTEL/PESTLE
analysis of Google LLC. This condition also means that the company’s types and level of innovation
changes according to the relevant needs identified in the information technology and services
market.

Excellence. This cultural characteristic focuses on achieving excellent results from all areas of
Google’s business. This characteristic of the organizational culture is integrated in human resource
development programs to inculcate an appreciation for excellence among employees. For example,
training programs are designed to motivate workers to continually improve their output, and to not
settle for mediocre results. In this regard, Google’s corporate culture promotes smartness in the
workforce, and pushes employees to strive for excellent work.

Hands-on Approach. Through its corporate culture, Google applies a hands-on approach to human
resource development. This cultural characteristic focuses on using experiential learning as an
effective way of improving employees’ knowledge, skills, and abilities. Theoretical knowledge is not
enough at Google LLC. Workers are expected to learn as they continue in their journey as part of the
company’s organization. In practice, this feature of the organizational culture is implemented
through policies that support employees’ involvement in projects and experiments. Such
experiments test new ideas in support of innovation in product development that affect Google’s
marketing mix or 4P. In this way, the company’s corporate culture enhances employees’ experience,
including on-the-job learning and training that contribute to human resource competencies.

Small-Company-Family Rapport. Google LLC is known for its support for small-company-family
rapport in its workspaces. This cultural characteristic focuses on the social interactions among
workers. For example, Google maintains a warm work environment where employees can easily talk
and share ideas with each other. The objective in this case is to use the corporate culture as a way of
optimizing internal communications and idea generation. This characteristic of the organizational
culture also helps Google in optimizing employee morale. In theory, warm social relations in the
workplace contribute to employee satisfaction in their jobs.

Google’s Corporate Culture – Recommendations

Google’s organizational culture is specific to addressing the needs of the information technology and
online services business. For example, through the cultural trait of innovation, the company ensures
that its products satisfy industry standards and are at the leading edge of technological
development. These factors contribute to the strengths enumerated in the SWOT analysis of Google
LLC. As one of the biggest technology businesses in the global market, the company is an example of
effective organizational design and human resource development manifested in the corporate
culture.

A possible improvement to Google’s organizational culture is the further intensification of

information sharing. Currently, even though the company’s cultural characteristics support
communications and information sharing, such sharing occurs in a controlled manner. Google can
increase employees’ degree of freedom in this regard, to maximize the speed and efficiency of
knowledge transfer. This recommendation aims to increase the rate of innovation in the company’s
product development processes. In addition, Google can improve its corporate culture through
additional innovative programs that are designed to support specialized functions among individual
employees. This recommendation aims to increase employees’ knowledge, skills, and abilities to
innovate.

http://panmore.com/google-organizational-structure-organizational-culture

http://panmore.com/google-organizational-structure-characteristics-analysis

http://panmore.com/google-organizational-culture-characteristics-analysis

http://panmore.com/google-10-decisions-areas-operations-management-productivity

http://panmore.com/google-swot-analysis-recommendations

http://panmore.com/google-stakeholders-corporate-social-responsibility-csr-analysis

http://panmore.com/google-vision-statement-mission-statement