IntroductionAbout the AuthorDanielle M. Dewey is a Project Manager for an $8.1M US DOL TAACCCT Consortium Grant at the University of Alaska Fairbanks. She graduated Magna Cum Laude with her BBA in Accounting from Savannah State University, an AACSB accredited program at the oldest HBCU in Georgia. She is in her final year of MBA Studies at the University of Alaska Fairbanks School of Management. She is grateful that she has been able to live around the United States with her spouse and son, compliments of the US Army. In her free time she enjoys art and studies medieval history, clothing and textiles. Organizational Theory and Design is a complex subject and a necessity for anyone in the field of business management. Aside from core competencies in all the fields of business management and application, a strong understanding of how and why organizations work is what will set someone apart from the masses as their career progresses. The blogs posted on this site during September and October of 2017 are assignments for MBA Course F617 Organizational Theory for Managers taught by Professor Nicole Cundiff, Ph.D. Throughout the semester students applied learning objectives to an organization. This case study is a culmination of months of focus on Google, and its parent Alphabet Inc. Organizational DescriptionGoogle’s origin story begins at Stanford in 1995. Google founders Larry Page and Sergey Brin met during a campus tour and started working together on a search engine initially called “Backrub”. The project was renamed Google to everyone’s relief; the name change was “a play on the mathematical expression for the number 1 followed by 100 zeros and aptly reflected Larry and Sergey's mission 'to organize the world’s information and make it universally accessible and useful.'"(Google, "How we started and where we are today"). Within a couple years incorporation paperwork was filed and Google Inc became another Dot Com in a Silicon Valley garage. The week before the incorporation occurred another Google history landmark happened, the first Doodle. Google grew and the origins of Google’s mantra “Don’t be evil” go back to the beginning. “By 2000, Google had become the largest search engine in the world, with an index of one billion pages”(Alcacer, J., & Sadun, R., & Hull, O., & Herman, K., 2017). In 2001, Google brought Eric Schmidt on board as CEO and things only grew from there. (Rothaermel, F., & Zahrt, C., and King, D., 2015) “Google outgrew the garage and eventually moved to its current headquarters (a.k.a. 'The Googleplex') in Mountain View, California.“(Google, "How we started and where we are today"). This is where Google operations remain headquartered today. Google made its Initial Public Offering in 2004 on the NASDAQ exchange. “Google stock was initially offered to the public at $85 per share” (Rothaermel, F., & Zahrt, C., and King, D., 2015) and as of the market closing on October 20, 2017 the stock was trading at $988.20. (Yahoo!Finance, 2017). In 2006 the Oxford Dictionary added the word ‘Google’ as a verb (Alcacer, J., & Sadun, R., & Hull, O., & Herman, K., 2017). “In March 2015, Google hired Wall Street banker Ruth Porat to serve as CFO.”(Alcacer, J., & Sadun, R., & Hull, O., & Herman, K., 2017). 2015 would be a landmark year for Google with a huge change occurring later in the year; that fall “Google announced it would restructure and create a new holding company named Alphabet...The Google subsidiary included its Internet-related businesses, such as search, advertising, maps, YouTube, and Android phones. The non-Google subsidiaries included DeepMind, an artificial intelligence company; Nest, a smart home thermostat system; Fiber, an Internet service; Calico, a longevity research lab; X, the moonshot incubator; Sidewalk, an urban technology project; and two investment arms, GV and Google Capital.”(Alcacer, J., & Sadun, R., & Hull, O., & Herman, K., 2017) As previously discussed in the Efficiency and Effectiveness blog entry, Google’s “vision is to remain a place of incredible creativity and innovation that uses ... technical expertise to tackle big problems” (Alphabet Inc., 2017). As mentioned above Google’s mission has always been and remains to be “to organize the world’s information and make it universally accessible and useful”(Alphabet Inc., 2017).
Despite our rapid growth, we still cherish our roots as a startup and wherever possible empower employees to act on great ideas regardless of their role or function within the company. We strive to hire great employees, with backgrounds and perspectives as diverse as those of our global users. We work to provide an environment where these talented people can have fulfilling careers addressing some of the biggest challenges in technology and society.”(Alphabet, 2017) This statement from the most recent Annual Report shows both Google’s organizational structure and organizational culture. Google would classify as an organic design even though their size is immense. “An organic design means that the organization is much looser, free-flowing, and adaptive” (Daft, 2016). The blog Organizational Complexity further discusses structure, "Google's organizational configuration is that of a Matrix. This is when an organization is both functional and divisional. Organizational Theory & Design 12e states that matrix structure 'is a strong form of horizontal linkage. The unique characteristic of the matrix organization is that both product divisions and functional structures (horizontal and vertical) are implemented simultaneously' (Daft, 2016)" (Dewey, 2017). As previously discussed in the blog entry on Environmental Complexity, “Google has 'many competitors in different industries, including general purpose search engines and information services; vertical search engines and e-commerce websites; social networks; other forms of advertising and online advertising platforms and networks; companies that design, manufacture, and market consumer electronic products; providers of enterprise cloud services and digital video services; and digital assistant providers.' (Alphabet, 2017). The other stocks most watched according to Yahoo! Finance in addition to Google’s stock are Apple, Facebook, Amazon, Netflix, and Tesla. (Yahoo!Finance, 2017)”(Dewey, 2017). Google’s primary industry is categorized as the Technology Industry. "On February 1, 2016, Alphabet surpassed Apple to become the most valuable company on the planet" (Simmons, R. & Lobb, A., 2016) Problem StatementGoogle faces identity challenges as a global organization in staying true to its roots following a huge reorganization. How can they continue to grow and dominate and still be Google? How can they maintain their innovative culture and avoid an excess of bureaucracy?
“One engineer who left the company in 2012 said the former 'innovation factory' had become preoccupied with beating rival Facebook in advertising. 'The Google I was passionate about was a technology company that empowered its employees to innovate,' he wrote. 'The Google I left was an advertising company with a single, corporate-mandated focus.' Another cited 'creeping bureaucracy' as the reason she left Google. A third said she wanted to run her own show: 'Google is a great training ground for how to build an amazing culture and an amazing product. But Google is not that good at teaching you how to build a business.' An eight-year Google veteran felt too sheltered from failure at Google. 'Google teaches you so much, but it also buffers and protects you.' Some executives left to start their own firms, many of which Google funded through its venture capital department, Google Ventures (GV). One ex-Googler who went on to start a company commented, 'Google has always wanted to have a major impact on the world. Having us go to other companies is an extension of that.'”(Alcacer, J., & Sadun, R., & Hull, O., & Herman, K., 2017) AnalysisCritical EvaluationLooking at Google critically, growth is both a huge asset and a huge challenge. The major issue facing Google is with the exponential growth from a small search engine in a garage to a global dominating force, how does Google maintain its balance and innovative nature. The first step to solve this problem was taken in 2015 with the announcement of the Alphabet reorganization. Structurally Google is as discussed above structured in an organic matrix. The problem of too much bureaucracy and trying to maintain an innovative spirit is still present despite efforts to the opposite effect. The Alphabet reorganization was a positive move, it decentralized Google’s efforts even further. Alphabet Inc is a global corporation, the biggest international challenges that Google faces are from privacy laws and internet censorship. Net-neutrality is a huge issue for Google. Alphabet is very diverse in its technology efforts, they do a little of everything including some things that most people have not even dreamed up yet, their primary revenue source is advertising. This is discussed further in the SWOT blog. Aside from high employee turnover, all major stakeholders seem to be satisfied with Google. The author is a devout Google advocate and is one of Google’s top stakeholders as discussed above; the author is a Google user. Google has fantastic public relations and is outspoken politically. Google is a socially liberal organization that supports diversity, equality, and freedom of information. This only gains loyalty from their employees and consumer base. The only negative publicity is from socially conservative groups that disagree with those platforms. Google’s market share is outstanding, “In 2015, Google had 64% of the U.S. market share of search; no other competitor had even 20%” (Alcacer, J., & Sadun, R., & Hull, O., & Herman, K., 2017). Recommendations Recommendation one:Perhaps Alphabet Inc should take a page from Zappos CEO Tony Hsieh’s management manual and try bringing some holacracy into Google. Maybe not going fully holacratic, Google culture is Google culture not Zappos culture, but “The Zappos Insights website, clearly states why CEO Tony Hsieh decided to implement Holacracy at Zappos; to prevent creativity and innovation stagnation” (Dewey, 2017). This would certainly help to cut bureaucracy inside Google. GUIDELINES FOR IMPLICATIONS AND MANAGERIAL APPLICATIONThe recommendation to implement some holacracy into Google's organizational structure and environment is applicable to the bureaucracy issues that they are facing. Google is already operating as a decentralized organization and organically. As a theoretical manager of Google, implementing some holacracy would be achievable. It is unlikely that switching to a fully holacratic organization would work with Google's existing strong culture. However, there are enough organic similarities that lessons could be learned. The first thing that managers within Google would have to do to implement this recommendation would be to learn more about holacracy. Some workshops or retreats could prove beneficial. Holacracy.org offers many training seminars worldwide and online that managers could take advantage of. If a global giant like Google wanted to explore holacracy it is highly probably that personalized training sessions could occur at the Googleplex. To reiterate, the recommendation and implementation is not for a complete shift at this time, only to learn more and possibly implement some tools. Google-cracy could very well evolve out of this recommendation. Recommendation Two:Alphabet Inc. should strive to generate revenue through other enterprises besides advertising. Marketing and advertising supports all of Google's other ventures, but it is not very "Googley". It is counterintuitive to state that, as it is the primary revenue source, and a very substantial one. All the things that make Google what it is to the users are all of the amazing innovations that come out of the Googleplex. The Google Home and Nest sector is a good move in this direction. Digital life integration has great potential right now. GUIDELINES FOR IMPLICATIONS AND MANAGERIAL APPLICATIONThe recommendation to focus on revenue diversification is extremely applicable to Google's organization and environment, but it would require a shift. When all the money comes from one stream and it funds all these other cool, fun, things, it can be a challenge to try and make money in other ways, because that first stream flows so well. As a theoretical manager at Google implementation of this recommendation would be a high priority. Alphabet's reorganization began some of this, but the focus and effort is not as strong as it needs to be. As stated above the Google Home and Nest integrations are a good start, but Google needs more. Google has some of the brightest minds in the world on its payroll, Google needs to find the next big thing before it happens and monetarily capitalize on it. This is what research and development is for, but there needs to be a branch focused on the monetary capitalization. As a theoretical manager this would be primary focus. The feasibility of this recommendation is difficult to acertain, as Google does revolutionary, amazing things, but most of them don't earn a profit. That shift would be the most challenging to implement with the history and culture of Google. Recommendation Three:Google needs to reduce the quick employee turnover and encourage longevity. While spending several years at Google then leaving to be an entrepreneur makes sense, the employees that leave in the first three years are the talent that Google needs to retain. Google could implement some sort of longevity bonus program. Although there are not many perks left to offer. Guidelines for Implications and managerial applicationThe recommendation to reduce employee turnover by implementing a longevity bonus program could prove the most difficult as simply working for Google seems to be full of perks on its own. As a theoretical manager of this organization this approach would be feasible as long as the right program was developed. This recommendation poses no issue to the corporate culture. Alphabet Inc. could develop a cross-divisional task force focused on employee retention and use an entrepreneurial think tank model to come up with the best implementation. Once implemented the employee longevity bonus program should reduce the workforce turnover that Google is currently experiencing. ConclusionGoogle is one of the most revolutionary organizations out there. No organization is perfect, and improvements can always be made, however there is little doubt that Google will go down in history for everything that makes Google the global presence that it is. Google is in a time of change right now, and it is learning how to grow and still stay the same. That would be a challenge for any organization. The brilliance that comes out of Google daily is support that the problem of growing bureaucracy will be one that Google will overcome, likely before any of these recommendations could even reach the right audience. There is little doubt that Google is aware of their short falls, the issues they face are acknowledged in their Annual Report and in their actions. There is very likely already a secret task force within the Googleplex dedicated to solving these problems. Google will evolve, Google will persevere Google is the voice of this generation. BibliographyAlcacer, J., & Sadun, R., & Hull, O., & Herman, K. (2017). Alphabet Eyes New Frontiers HBS No. 9-717-418. Boston, MA: Harvard Business School Publishing.
Alphabet Inc. (2017, February 2). Alphabet Inc. 2016 Annual Report Form 10-K. Retrieved September 24, 2017, from https://abc.xyz/investor/pdf/2016_google_annual_report.pdf Daft, R. L. (2016). Organization Theory and Design Twelfth Edition. Boston, MA: Cengage Learning. Deloitte US. (2017, February 28). 2017 Technology Industry Outlook | Deloitte US. Retrieved October 01, 2017, from https://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/technology-industry-outlook.html Dewey, D. M. (2017, October 2). Google: Organizational Complexity. Retrieved October 22, 2017, from http://dmdewey.weebly.com/danielles-organizational-theory-blog/google-organizational-complexity Dewey, D. M. (2017, October 1). Google: Environmental Complexity. Retrieved October 22, 2017, from http://dmdewey.weebly.com/danielles-organizational-theory-blog/google-environmental-complexity Dewey, D. M. (2017, September 24). Google: SWOT. Retrieved October 22, 2017, from http://dmdewey.weebly.com/danielles-organizational-theory-blog/google-swot Dewey, D. M. (2017, September 24). Google: Efficiency and Effectiveness. Retrieved October 22, 2017, from http://dmdewey.weebly.com/danielles-organizational-theory-blog/google-efficiency-and-effectiveness Dewey, D. M. (2017, October 15). Hola-what? A Brief Discussion on Holacracy. Retrieved October 22, 2017, from http://dmdewey.weebly.com/danielles-organizational-theory-blog/hola-what-a-brief-discussion-on-holacracy Doodle4Google. (n.d.). Retrieved October 01, 2017, from https://doodles.google.com/d4g/ Edelman, B., & Eisenmann, T. (2011). Google, Inc. HBS No. 9-910-036. Boston, MA: Harvard Business School Publishing. Fessler, L. (2017, August 21). Google is sharing its management tools with the world. Retrieved September 24, 2017, from https://qz.com/1058563/these-are-googles-tools-for-effective-management/ Referred from HBR article. Forbes. (2017, May). Google on the Forbes World's Most Valuable Brands List. Retrieved October 02, 2017, from https://www.forbes.com/companies/google/ Fortune. (2017). Google. Retrieved September 25, 2017, from http://fortune.com/best-companies/google/ GOOG Profile | Alphabet Inc. Stock. (2017, September 24). Retrieved September 24, 2017, from https://finance.yahoo.com/quote/GOOG/profile?p=GOOG Google. (n.d.). Fields of work. Retrieved October 02, 2017, from https://careers.google.com/fields-of-work/ Google. (n.d.). Ten things we know to be true. Retrieved October 22, 2017, from https://www.google.com/about/philosophy.html Google. (n.d.). How we started and where we are today. Retrieved October 22, 2017, from https://www.google.com/about/our-story/ Google Career Overview. (n.d.). Retrieved September 24, 2017, from https://www.glassdoor.com/Overview/Working-at-Google-EI_IE9079.11,17.htm Google Developers. (2017, June 22). The Story of An Idea - Google I/O 2107. Retrieved October 22, 2017, from https://youtu.be/BEtPCT7ZcE0 Meyer, P. (2017, January 28). Google Stakeholders & Corporate Social Responsibility (CSR). Retrieved October 22, 2017, from http://panmore.com/google-stakeholders-corporate-social-responsibility-csr-analysis Page, L., & Brin, S. (1998, August 30). Burning Man Festival [Google's First Doodle]. Retrieved October 22, 2017, from https://www.google.com/doodles/burning-man-festival Page, L., & Brin, S. (2004). 2004 Founders’ IPO Letter. Retrieved October 22, 2017, from https://abc.xyz/investor/founders-letters/2004/ipo-letter.html#_ga=2.247634624.697514924.1508725376-599733631.1506290396 Page, L., & Pichai, S. (2015). 2015 Founders' Letter. Retrieved October 02, 2017, from https://abc.xyz/investor/founders-letters/2015/ Price, R., & Nudelman, M. (2016, January 12). Google's parent company, Alphabet, explained in one chart. Retrieved October 02, 2017, from http://www.businessinsider.com/chart-of-alphabet-google-parent-company-infographic-x-gv-2016-1 Rothaermel, F., & Zahrt, C., and King, D. (2015). Google, Inc. MH0029 No. 1259420477. Boston, MA: Harvard Business School Publishing. Sadun, R. (2017, August 25). Google's Secret Formula for Management? Doing the Basics Well. Retrieved September 24, 2017, from https://hbr.org/2017/08/googles-secret-formula-for-management-doing-the-basics-well Smithson, N. (2017, January 28). Google's Organizational Structure & Organizational Culture. Retrieved October 22, 2017, from http://panmore.com/google-organizational-structure-organizational-culture Thompson, A. (2017, January 28). Google's SWOT Analysis & Recommendations. Retrieved October 22, 2017, from http://panmore.com/google-swot-analysis-recommendations Simmons, R. & Lobb, A. (2016). Google to Alphabet: Ten Things We Know to Be True HBS No. 9-116-029. Boston, MA: Harvard Business School Publishing.
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“Holacracy is a specific system for running an organization, not a category. Its rules are specified in the Holacracy Constitution. While there may be many progressive companies doing things that are principally aligned with Holacracy, unless you are following the rules and practices as outlined in the constitution, you are not practicing Holacracy. “(Bowers, A. 2014). Holacracy is an unfamiliar subject for many in name although maybe not in concept. The idea of Holacracy gained popular media attention when online shoe retailer Zappos transitioned their organizational structure to one run through Holacracy. As stated in a by Benjamin Wolff, it is similar to a string quartet. (Wolf, 2017) The idea of doing away with titles and having an organization self manage is a fascinating one, and empirically it should work. It seems to be working for Zappos with some adjustment struggle. People don’t like change, maybe every employee should receive a copy of Who Moved My Cheese for Christmas. Actually, can everyone, everywhere get a copy of that from Santa? Living in North Pole, it doesn’t seem such a far fetched request. In the age of innovation it is too easy to get bogged down by bureaucracy and moving to a more flat structure, whether abiding by the Holacratic Constitution or not seems to be a legitimate solution to that problem. The issue is, speaking from personal experience, while some people are good at self management, self motivation, and self governance, not all are. THis is why society has evolved the way it has, some people need direction, some people crave direction. It takes a special kind of person to succeed in that type of environment. The Zappos Insights website, clearly states why CEO Tony Hsieh decided to implement Holacracy at Zappos; to prevent creativity and innovation stagnation. Zappos is consistently ranked as a top company to work for by Forbes six years running (About Zappos Insights). BibliographyAbout Zappos Insights. (n.d.). Retrieved October 15, 2017, from https://www.zapposinsights.com/about
Bowers, A. (2014, January 04). Five Misconceptions About Holacracy® – About Holacracy. Retrieved October 15, 2017, from https://blog.holacracy.org/five-misconceptions-about-holacracy-da84d8ba15e1 Denning, S. (2014, November 22). Making Sense Of Zappos And Holacracy. Retrieved October 15, 2017, from https://www.forbes.com/sites/stevedenning/2014/01/15/making-sense-of-zappos-and-holacracy/#49feab1f3207 Holacracy and Self-Organization. (n.d.). Retrieved October 15, 2017, from https://www.zapposinsights.com/about/holacracy Holacracy Constitution. (n.d.). Retrieved October 15, 2017, from https://www.holacracy.org/constitution HolacracyOne. (n.d.). Retrieved October 15, 2017, from https://app.glassfrog.com/organizations/5 How It Works. (n.d.). Retrieved October 15, 2017, from https://www.holacracy.org/how-it-works/ Wolff, B. (2017, July 13). Three Lessons For Zappos CEO Tony Hsieh From a 250-Year-Old Team. Retrieved October 15, 2017, from https://www.forbes.com/sites/forbesleadershipforum/2017/07/13/three-lessons-for-zappos-ceo-tony-hsieh-from-a-250-year-old-team/#5a8151bb22a8 The Assignment:Refer back to previous posting: DREAM JOB. Previously, an organization was described that would be interesting to work for or develop. The organizational structure was described, with examples. In this next post the organization’s structure will be modified with the following three structural changes:
Modification One: New Product or Service LineViolet Tailyeaour's Reenactment Couture and Duncan's Bling and Things could expand into new product lines to include a haberdashery, cobbler, and potter. These are all necessities that the modern reenactor needs, the lines would smoothly assimilate until Violet Tailyeaour's Reenactment Couture became the go to vendor for any high-end, accurate, custom reenactor needs. Modification Two: Go GlobalGoing global would be a logical expansion for Violet Tailyeaour's Reenactor Couture. Historical reenactors are located all over the world and there is no reason not to service them all. eCommerce has made the transition to a global market much easier than it has been historically. In addition to eCommerce, there are reenactor fairs globally and merchant booths at these events could be profitable. The challenge would be any language barriers encountered, this could necessitate a local translator for each linguistic location. Modification Three: Merger or Acquisition of Non-Like Product After a couple years, and global expansion, Violet Tailyeaour's Reenactment Couture sought to purchase sewing machine sales and service stores around the country and unite them under a single name and entity of Roy and Danielle's Sewing Sales and Repair. While sewing machines can be purchased at big box stores around the country, not all brands are available and those big box stores do not offer repair or maintenance services. Growing a name that can be trusted across the nation for fair and honest sewing machine repairs and sales would be a challenge, but would likely prove more lucrative than Violet Tailyeaour's Reenactment Couture, as while still a smaller market, the general use and repair of sewing machines is much larger than the niche of high-end reenactor wares. New ORganizational StructureStructurally, Violet and Duncan would maintain control as they are the same people as Roy and Danielle, only aliases suited to the reenactor community. The cubes represent sewing machine sales and repair shops around the United States, and on the Reenactment Couture side a Cobbler/Haberdasher/Potter expansion was added, with Duncan continuing as expansional leader and Violet as the CEO/CFO. A linguist was added as additional staff for merchant booths to accommodate international expansion. BibliographyDaft, R. L. (2016). Organization Theory and Design Twelfth Edition. Boston, MA: Cengage Learning
Violet Tailyeaour's Reenactment CoutureViolet Tailyeaour's Reenactment Couture would be an elite fashion and accessory line for today's historical reenactor. This is a niche market, but there is room to enter and as most pieces would be designed on a commissioned basis the barrier to entry would be low. Clothing reenactors can be very exciting and gratifying. The lack of ability in the art of costuming should not be a barrier to looking fabulous, Violet Tailyeaour's Reenactment Couture will fill that gap in skill and appearance. Operating GoalsOverall PerformanceThe overall performance goal of Violet Tailyeaour's Reenactment Couture is to be self-sustaining and profitable. This is an entrepreneurial endeavour so the initial goal will be to turn a profit in the first year, and within the first five years enough to upgrade the current equipment. Currently, the primary sewing machine used is from the mid 1990s and would be suited to retirement. The serger is also over a decade old at a minimum and both were purchased second hand. The embroidery machine is a beginners model, with a small hoop size and only a single needle. The minimum cost to upgrade would be between $5,000-$10,000. Long-term performance goals would be to sustain a growth rate to afford retirement and self sustainment for the proprietor. While the primary focus will be on couture style garments, creating an "off the rack" line would be beneficial for long-term profitability. ResourcesThe resource goals for Violet Tailyeaour's Reenactment Couture would be to have on hand a wide variety of period appropriate fabrics, trims, notions, and threads. The current location in central Alaska creates high-shipping costs, so bulk purchases, taking advantage of promotions would be the wisest choice. Human resource wise, initially a one-person show, expanding additional labor force would be a goal as long as profitability can afford it. In addition to the new equipment goals that are in the overall performance goals, historical textile books and journals, and even primary source textiles would be assets and material goals. Market Currently in the Alaska reenactor market there is little competition locally. There are already some established vendors nationally and internationally. Some provide superior products while others operate substandard and do not assist anyone in looking their best. Some of the greatest competition will come from the international market as frequently can occur in global eCommerce. As market share grows locally, a merchant booth could be set up at opportunities within Alaska, such as the Three Baron's Renaissance Faire in Anchorage. Long-term, there are many merchant opportunities year round all over the United States. Employee DEvelopmentEmployee development goals would be to refine knowledge and skills in the study of historical clothing and textiles. Attention to detail, refined fit, research, and historical accuracy are what will differentiate Violet Tailyeaour's Reenactment Couture from the market competitors. ProductivityProductivity goals will start low, and gradually increase and Violet Tailyeaour's Reenactment Couture's reputation spreads. Initially, One commission a month for the first twelve months. As output grows, additional personnel would be brought on board. Some projects will render no net profit as they will be done for cost to curry favor with larger reenactment groups. This will aid in achieving long term goals which are heavily dependant on reputation. Innovation and ChangeLong term goals for Violet Tailyeaour's Reenactment Couture include expansion in the accessories market to include historical jewelry, to include reproduction glassworks. There could be possibility of an expansion of a sister vendor called Duncan's Bling and Things. This expansion would focus heavily on historical metal constructed accessories and wooden historical furniture. Organizational StructureThe organizational structure will develop and expand as Violet Tailyeaour's Reenactment Couture Grows. Eventually, more staff and talent would be added but with the exception of the long term expansion goal, creative control would stay with Violet, the original proprietor. Duncan would have creative control over Duncan's Bling and Things. Product Examples
BibliographyDaft, R. L. (2016). Organization Theory and Design Twelfth Edition. Boston, MA: Cengage Learning.
Dewey, D. M. (2017) https://www.facebook.com/DMDeweyDecimal, Accessed October 15, 2017. Internally, Google is a very complex organization. After the reorganization in 2015 to Alphabet Inc. information was released regarding the organizational structure at a very high level. There are no publicly available organizational charts beyond this high level. On the Careers website for Google and Alphabet Inc. there are different job categories, and from browsing the job postings it would appear that Google is very decentralized, with each venture having the a wide variety of career fields. The categories and brief descriptor from the Careers website are:
With regards to organizational complexity, Google has both high vertical differentiation and horizontal differentiation; meaning, there is a wide task specialization across the organization and there is inferably a deep hierarchy. There are more than five divisions spread horizontally, and again there is indication of a reporting structure that is greater than five deep. This places Google as a Symmetric organization internally. The sectors are divided into specialties and within those sectors there are theoretically task specialties and likely large chains of reporting. It would be difficult not to have many vertical reporting levels in a multibillion dollar organization such as Google. All subunits can operate simultaneously and work is processed parallely. Each subunit interacts with the marketplace individually with the added bonus of the Google brand behind it.
Google's organizational configuration is that of a Matrix. This is when an organization is both functional and divisional. Organizational Theory & Design 12e states that matrix structure "is a strong form of horizontal linkage. The unique characteristic of the matrix organization is that both product divisions and functional structures (horizontal and vertical) are implemented simultaneously" (Daft, 2016). Google has good fit as Type 4. While there can be some debate as to whether Google's strategy fits with that of an Analyzer or a Prospector, that is discussed in the Environmental Complexity section posted on October 1, 2017. BibliographyAlphabet Inc. (2017, February 2). Alphabet Inc. 2016 Annual Report Form 10-K. Retrieved September 24, 2017, from https://abc.xyz/investor/pdf/2016_google_annual_report.pdf
Daft, R. L. (2016). Organization Theory and Design Twelfth Edition. Boston, MA: Cengage Learning. Deloitte US. (2017, February 28). 2017 Technology Industry Outlook | Deloitte US. Retrieved October 01, 2017, from https://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/technology-industry-outlook.html Doodle4Google. (n.d.). Retrieved October 01, 2017, from https://doodles.google.com/d4g/ Fessler, L. (2017, August 21). Google is sharing its management tools with the world. Retrieved September 24, 2017, from https://qz.com/1058563/these-are-googles-tools-for-effective-management/ Referred from HBR article. Forbes. (2017, May). Google on the Forbes World's Most Valuable Brands List. Retrieved October 02, 2017, from https://www.forbes.com/companies/google/ Fortune. (2017). Google. Retrieved September 25, 2017, from http://fortune.com/best-companies/google/ GOOG Profile | Alphabet Inc. Stock. (2017, September 24). Retrieved September 24, 2017, from https://finance.yahoo.com/quote/GOOG/profile?p=GOOG Google. (n.d.). Fields of work. Retrieved October 02, 2017, from https://careers.google.com/fields-of-work/ Google Career Overview. (n.d.). Retrieved September 24, 2017, from https://www.glassdoor.com/Overview/Working-at-Google-EI_IE9079.11,17.htm Page, L., & Pichai, S. (n.d.). 2015 Founders' Letter. Retrieved October 02, 2017, from https://abc.xyz/investor/founders-letters/2015/ Price, R., & Nudelman, M. (2016, January 12). Google's parent company, Alphabet, explained in one chart. Retrieved October 02, 2017, from http://www.businessinsider.com/chart-of-alphabet-google-parent-company-infographic-x-gv-2016-1 Sadun, R. (2017, August 25). Google's Secret Formula for Management? Doing the Basics Well. Retrieved September 24, 2017, from https://hbr.org/2017/08/googles-secret-formula-for-management-doing-the-basics-well Google’s environment can be very turbulent at times as with most of the technology industry. Google is known for being an adaptive organization and in very adept at adapting to any waves that the environment can create. The Organization's EnvironmentThe elements that affect Google within the different environmental sectors are varied and extensive, yet at the same time less complex for organizations with more tangible product lines. Google is in the technology industry with a global domain. As new markets emerge in developing countries Google’s expends efforts to insert itself into those markets. The Task EnvironmentThe Task Environment is those sectors “that have a direct impact on the organization’s ability to achieve its goals” (Daft, 2016). These sectors are (a) Industry, (b) Raw Materials, (c) Human Resources, (e) Market, and (k) International. (a) Industry (Competitors, industry size, competitiveness, related industries):
The General EnvironmentThe General Environment is those sectors “that might not have a direct impact on the daily operations of a firm but will indirectly influence it” (Daft, 2016). These sectors are (d) Financial Resources, (f) Technology, (g) Economic Conditions, (h) Government, (i) Natural, and (j) Sociocultural. (d) Financial Resources (Stock markets, banks, private investors):
(f) Technology (Techniques of productions, computers, information technology, e-commerce):
(h) Government (City, state, and federal laws, regulations, taxes):
The International EnvironmentGoogle is an internationally diversified organization. Currently Google has holdings in North America, Europe, South America, and Asia. Google’s major competitors as identified in their 2016 Annual Report, broken up by niche are:
The Organization's Environmental Dynamism and ComplexityGoogle’s environment is complex and unpredictable. There are many major competitors and the technology environment is constantly changing as are laws and regulations that must be followed within it. Organizational Alignment
Organizational balance and alignment for Google is both in and out of alignment. Google's organizational goals rank high on both Efficiency and Effectiveness, but higher on Effectiveness. Google's environment is turbulent, as is the nature of the technology industry. Strategy is what could arguably place Google as out of alignment from Type 4. Both Prospector and Analyzer are marked as pertaining to Google. The example for the Miles and Snow typology provided by the course professor lists Google as a Prospector. This is not incorrect, but it is debateable. While Google is constantly prospecting new opportunities for innovation, Google's primary revenue stream is online advertising and the recent re-organization of Alphabet Inc into Google and Other Bets shows Analyzer typology. The current 12th edition of Organizational Theory and Design by Richard L. Daft does not list Google as an example of any of the Miles and Snow typologies. BibliographyAlphabet Inc. (2017, February 2). Alphabet Inc. 2016 Annual Report Form 10-K. Retrieved September 24, 2017, from https://abc.xyz/investor/pdf/2016_google_annual_report.pdf
Daft, R. L. (2016). Organization Theory and Design Twelfth Edition. Boston, MA: Cengage Learning. Deloitte US. (2017, February 28). 2017 Technology Industry Outlook | Deloitte US. Retrieved October 01, 2017, from https://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/technology-industry-outlook.html Fessler, L. (2017, August 21). Google is sharing its management tools with the world. Retrieved September 24, 2017, from https://qz.com/1058563/these-are-googles-tools-for-effective-management/ Referred from HBR article. Forbes. (2017, May). Google on the Forbes World's Most Valuable Brands List. Retrieved October 02, 2017, from https://www.forbes.com/companies/google/ Fortune. (2017). Google. Retrieved September 25, 2017, from http://fortune.com/best-companies/google/ GOOG Profile | Alphabet Inc. Stock. (2017, September 24). Retrieved September 24, 2017, from https://finance.yahoo.com/quote/GOOG/profile?p=GOOG Doodle4Google. (n.d.). Retrieved October 01, 2017, from https://doodles.google.com/d4g/ Google Career Overview. (n.d.). Retrieved September 24, 2017, from https://www.glassdoor.com/Overview/Working-at-Google-EI_IE9079.11,17.htm Sadun, R. (2017, August 25). Google's Secret Formula for Management? Doing the Basics Well. Retrieved September 24, 2017, from https://hbr.org/2017/08/googles-secret-formula-for-management-doing-the-basics-well SWOT is a professional acronym for the idea that every organization has Strengths, Weaknesses, Opportunities, and Threats. Even a successful, global leader in technology like Google is not exempt. Strengths and Weaknesses are generally considered internal, while Opportunities and Threats are generally considered external.
The SWOT shown above is only a brief overview of some of the elements in each quadrant. Below the bulleted items will be expanded upon with support and explanations. StrengthsInnovative Leadership: Google counts some of the most innovative minds in the the technology industry as their own. Co-Founder Larry Page is especially recognized for being a leader in innovation. CEO Sundar Pichai is the highest rated CEO on Glassdoor.com for 2017 (Glassdoor, 2017). Profitable Revenues: Google consistently has stellar profits in the tens of billions, and in the past five years the profitability has only increased. Ceteris paribus, those profits will continue to rise. (Alphabet Inc., 2017) Strong Core Product Offerings: The core product offerings that Google has are top in their class. Search, Android, Maps, Chrome, YouTube, Google Play, and Gmail are the lineup with over a billion monthly users. (Alphabet Inc., 2017). Google Search is the premier search engine on the web, and Google Scholar is making strides in creating easier access to academic sources. The Android OS for smartphones is the only competitor to Apple's ios. Maps is incredibly accessible, and with the acquisition of Waze, Google has made Maps even more accurate. Chrome is a streamlined browser with many useful add-ons available, but without the bloatware that frequently comes with other browsers. YouTube is the source for user created video content on the web, it is being utilized more and more by organizations and for educational purposes. Google play is not only an appstore for the Android mobile platform, but also offers streaming music and video services. E-books and magazine subscriptions are also available. Gmail is one of the top free e-mail providers and is gaining more users everyday, especially with the advent of organizations using them for their professional address purposes. Excellent Employee Culture: Glassdoor.com shows Google as having 4.4 out of 5 stars, this rating is based on 7.5K reviews. Google has received multiple awards for the best company to work for over the years, notably six years in a row as #1 on Fortune Magazine's Listing. (Fortune, 2017) Management Practices: The management practices at Google are so revered that the Harvard Business Review featured a piece last month on the release of those management practices. The takeaway, simple is not obsolete (Sadun, 2017). WeaknessesRed Tape and Bureaucracy: According to the course text, Organization Theory & Design, 12e by Richard L. Daft, Google is in the 4th stage of organization development, the crisis that Google is facing is sited at "Too much red tape" (Daft, 2016). Google is already combating this crisis by bringing back co-founder Larry Page to "cut the bureaucracy and bring back and entrepreneurial spirit" (Daft, 2016). So large, some areas lack focus: Google, and now Alphabet Inc. has so many fingers in so many pies that some product areas lack focus and are not reaching their full potential. The organizational restructuring that is currently ongoing is working to combat this weakness. Hiring process overly complex: There are jokes that float around job hunters comparing interview difficulties to what one would expect to experience at Google, especially when related to problem solving questions that seem to make no sense for the position desired. Glassdoor.com has a rating system for the hiring process for users. Google is rated as above average difficulty but overall positive experience. OpportunitiesExpand Google Docs Office Suite: Google is the go-to for so many of the products under its umbrella, however the Google Docs office suite, while improving constantly still has ample room to improve and expand capabilities. Developing Markets: In today's global economy it is hard to imagine that there are still places that are unreachable by the internet superhighway. As developing countries come online Google has the opportunity to gain a foothold in those markets. In the 2016 Annual Report Google states, "We believe that technology is a democratizing force, empowering people through information. We are helping people get online by tailoring hardware and software experiences that suit the needs of emerging markets, primarily through Android and Chrome. We’re also making sure our core Google products are fast and useful, especially for users in areas where speed and connectivity are central concerns" (Alphabet Inc., 2017). This lends itself to the idea that this is an opportunity that Google is pursuing. Revenue Stream Diversification: There are many areas that are under tapped for revenue streams. The smartphone and tablet market has many offerings but google's releases are few and far between. Expand Entertainment Streaming: Netflix, Amazon Prime, Hulu, and Pandora, are household names in the entertainment streaming market. Google Play is under recognized and underutilized in this market sector. This presents a huge opportunity for Google to strengthen its offerings in this market. Digital Home Integration: Amazon's Alexa and Apple's Siri control the universe; not in reality but there is a future that could be close. The Google Assistant tries, but simply is not there yet. The Google Home sector is working toward this, so again it is an opportunity that Google is moving to capitalize on. Green Technologies: In the 2016 Annual Report, Google indicated that with climate change being a real concern that by 2017 Google would be at 100% renewable energy for its operations. THis was from a goal set in 2012. Further monies are being invested into green technology research and development, often with Google employees being the individuals to beta test and review products (Alphabet Inc., 2017). Everyone is going green, and everyone is looking for green solutions. This is an excellent opportunity for a global organization with a strong entrepreneurial spirit to make a difference. ThreatsThese threats are extrapolated from the 2016 Annual Report. There were others listed, but some can be discussed under a single bullet. Intense Competition: "We face intense competition. If we do not continue to innovate and provide products and services that are useful to users, we may not remain competitive, and our revenues and operating results could be adversely affected." (Alphabet Inc., 2017) Some of the biggest competitors that Google faces are other leaders in the Tech Industry; Apple and Amazon. Apple users are fiercely loyal and often live a life completely dependent on the brand. This means that a huge threat is that if just one user switches to an iPhone or and iPad Google could lose business with the entire family and across multiple product lines. Amazon is a leader for online shopping and quickly becoming one of the best sources for entertainment streaming, both video and audio. Their acquisition of the Audiobook provider Audible was a huge bonus for them. Amazon also offers inexpensive tablets in their Kindle Fire line, however Amazon products are completely non-compatible with Google services, to the point that you cannot actually download the Gmail app on a Kindle Fire. This is another threat to Google's consumer base. Primary Revenue Stream: 88% of Google's revenue came from advertising in 2016 (Alphabet Inc., 2017). That is a lot of eggs in one basket. If that revenue stream were to change, and not for the better Google would be in some serious trouble. If Google's net income was $19.4B in 2016 (Alphabet Inc., 2017), 88% of that would be $17.1B from advertising, leaving only $2.3B from other revenue streams. Risky Investment Practices: Any innovative and entrepreneurial organization is going to have to make risky investments. The higher the risk, the higher possible reward, however that is also true of failure. Huge risks can translate to huge failings. Dependence on Technology Adoption: This was touched upon in the other areas but it is so true. If Google technology is not adopted on a large scale than the products are worthless, regardless on the value of those products. For example, Google Play has a lot to offer but the ability to stream music and TV offerings is hindered by the fact that it is not available through many of the commonly used hardwares such and vehicle systems, smart TVs, and Roku type devices. Government Regulation and Legal Ramifications: The law is a specialty unto itself, but as a global innovator in technology and a large organization with frequent acquisitions laws and regulations can and do pose very real threats. The 2016 Annual Report summarizes in multiple sections the following statements: "We are subject to increasing regulatory scrutiny that may negatively impact our business. Additionally, changes in policies governing a wide range of topics may adversely affect our business...A variety of new and existing laws could subject us to claims or otherwise harm our business...We are regularly subject to claims, suits, government investigations, and other proceedings that may result in adverse outcomes...We may be subject to legal liability associated with providing online services or content...Privacy concerns relating to our technology could damage our reputation and deter current and potential users from using our products and services...If our security measures are breached resulting in the improper use and disclosure of user data, or if our services are subject to attacks that degrade or deny the ability of users to access our products and services, our products and services may be perceived as not being secure, users and customers may curtail or stop using our products and services, and we may incur significant legal and financial exposure...We are, and may in the future be, subject to intellectual property or other claims, which are costly to defend, could result in significant damage awards, and could limit our ability to use certain technologies in the future"(Alphabet Inc., 2017). Erring on the side of caution to accurately report threats that include large amounts of legalese, direct quotations were used. Even though the SWOT shows more threats than opportunities that does not make Google a weak company or investment. There are infinite opportunities available for Google to take advantage of and there is little doubt that Alphabet Inc. and Google will remain at the top for many years to come. BibliographyAlphabet Inc. (2017, February 2). Alphabet Inc. 2016 Annual Report Form 10-K. Retrieved September 24, 2017, from https://abc.xyz/investor/pdf/2016_google_annual_report.pdf
Daft, R. L. (2016). Organization Theory and Design Twelfth Edition. Boston, MA: Cengage Learning. Fessler, L. (2017, August 21). Google is sharing its management tools with the world. Retrieved September 24, 2017, from https://qz.com/1058563/these-are-googles-tools-for-effective-management/ Fortune. (2017). Google. Retrieved September 25, 2017, from http://fortune.com/best-companies/google/ GOOG Profile | Alphabet Inc. Stock. (2017, September 24). Retrieved September 24, 2017, from https://finance.yahoo.com/quote/GOOG/profile?p=GOOG Google Career Overview. (n.d.). Retrieved September 24, 2017, from https://www.glassdoor.com/Overview/Working-at-Google-EI_IE9079.11,17.htm Sadun, R. (2017, August 25). Google's Secret Formula for Management? Doing the Basics Well. Retrieved September 24, 2017, from https://hbr.org/2017/08/googles-secret-formula-for-management-doing-the-basics-well Google, the primary company that operates under the conglomerate of Alphabet Inc is a technology company headquartered in Mountain View, California in the greater San Francisco Bay area (Yahoo!Finance, 2017). The transition to Alphabet Inc in 2015 was one that restructured the organizational design of the company into sectors to maximize the efficiency and effectiveness of the organization overall. Most revenues, 88% in 2016 (Alphabet Inc., 2017), are generated through advertising income, as Google is one of the most iconic search engines in the world. They focus on two different types of advertising, performance and brand. Programmatic advertising is a third sector, though with a smaller focus than the previous two. “Google’s core products such as Search, Android, Maps, Chrome, YouTube, Google Play, and Gmail each have over one billion monthly active users”(Alphabet Inc., 2017). To determine if an organization is efficient or not is to examine those organizational goals that focus on inputs, use of resources, and costs. To score Google on an efficiency scale of 1-5, first examine profitability. While Google and many other tech industry companies have reputations for superfluous spending, that reputation is an industry standard and most of those expenses are credited with increasing efficiency and effectiveness. Google knows that their greatest resource is human capital. The net income, or profit, for Google has risen steadily over the past five years, growing incrementally from $10.B in 2012 to $19.4B in 2016 (Alphabet Inc., 2017). Google is certainly efficient and is a leader in the technology industry and global companies overall. Glassdoor.com rates google at a 4.4, rounding to the nearest whole number, that is a 4.(Glassdoor.com, 2017) Because human capital is one of the most valuable resources that Google possesses, Google also receives a 4 in efficiency. To determine if an organization is effective or not is to examine those organizational goals that focus on outputs, products or services, and revenues. To score Google on an effectiveness scale of 1-5 is both a challenge and not one simultaneously. Empirically, Google scores a 5 without hesitance. Theoretically scoring Google on the effectiveness scale is a greater challenge; not due to a lack of information, but a surplus. The textbook Organization Theory & Design, 12e by Richard L. Daft, lists sixteen indexed locations of the company within that text alone (Daft, 2016). Google is more than a company, it is a culture, and is even used as a verb, demonstrably by the snarky internet site LMGTFY.com, an abbreviation for “Let Me Google That For You”. Here is a great example of its use: http://lmgtfy.com/?iie=1&q=Efficiency+and+Effectiveness. Though isolating relative information on a company that is so integrated into life in the new millenia is a challenge, the scoring remains a 5.
According to Alphabet Inc’s 2016 Annual Report, Google states that “Our vision is to remain a place of incredible creativity and innovation that uses our technical expertise to tackle big problems” (Alphabet Inc., 2017). The 2016 Annual Report further states “Google’s mission to organize the world’s information and make it universally accessible and useful has always been our North Star”(Alphabet Inc., 2017). To operate and stay true to the above vision and mission a company would almost have to be in quadrant “D” out of necessity. According to the course text, Fast Company ranked Google as number 1 on the 50 Most Innovative Companies in 2014 (Daft, 2016). This supports the placement of Google in quadrant “D”. BibliographyAlphabet Inc. (2017, February 2). Alphabet Inc. 2016 Annual Report Form 10-K. Retrieved September 24, 2017, from https://abc.xyz/investor/pdf/2016_google_annual_report.pdf
Daft, R. L. (2016). Organization Theory and Design Twelfth Edition. Boston, MA: Cengage Learning. GOOG Profile | Alphabet Inc. Stock. (2017, September 24). Retrieved September 24, 2017, from https://finance.yahoo.com/quote/GOOG/profile?p=GOOG Google Career Overview. (n.d.). Retrieved September 24, 2017, from https://www.glassdoor.com/Overview/Working-at-Google-EI_IE9079.11,17.htm For My MBA F617 Class Organizational Theory for Managers I had to create an introduction to share with my peers. Video was recommended and it was to include: Name, Year and Major in the Program, Past Work Experiences, Current Work, and Something Unique. Here is my video, enjoy.
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