HUMAN RESOURCES PRACTICES AT GOOGLE IN TERMS OF …

1 , 20143 arabian journal of Business and Management Review (Nigerian Chapter) Vol. 2, No. 15 HUMAN RESOURCES PRACTICES AT GOOGLE IN TERMS OF SOME MANAGEMENT PERSPECTIVES: EXPLORING THE ENTREPRENEURIAL SPIRIT Stanton Thomas Research Administrator and Research Assistant, Regent Business School, Durban, South Africa Anis Mahomed Karodia Professor, Faculty Member and Senior Researcher, Regent Business School, Durban, South Africa Abstract In an ever changing and robust industry - GOOGLE is an ever expanding leader with a Global Footprint. This paper will critically discuss and unpack the effect of its HUMAN resource PRACTICES , or people PRACTICES as GOOGLE calls it, and the policies that govern these PRACTICES . It is hoped to share some of these insights with HUMAN RESOURCES practitioners and students pursuing management studies, with the idea of invoking critical thought.

2 The paper does not pretend to capture all of the subtle nuances of HUMAN RESOURCES development, but makes a case for the entrepreneurial spirit, for successful management PRACTICES . Introduction The initial step will be to view the extent to which GOOGLE s HUMAN Resource Management PRACTICES support its growth and expansion strategy whilst, still maintaining its market share and being named the best employer year after year. Thereafter, GOOGLE s approach to recruitment and selection, and, how this enhances or impedes its success and how these policies help it leverage itself to attract exceptional employees in different geographical areas will be analyzed and briefly explored. Given GOOGLE s values and culture the paper will attempt to discuss how GOOGLE should go about socializing newly recruited employees into the organization; what is the standard best PRACTICES against GOOGLE s current process.

3 It will then justify whether the benefits at GOOGLE are an unnecessary cost or an effective employee engagement and retention tool and are they getting their return on investment. Lastly the organisational culture and its impact on career management within the organisation will be evaluated. A Critical discussion on the extent to which GOOGLE s HUMAN Resource Management PRACTICES support its growth and expansion strategy Nel, Werner, Poistat Sano, Du Plesis, Ngalo, Van Hoer(2012:220-225) refer to Standard best PRACTICES that ensure that the internal growth strategies are aligned to growth and expansion strategies the internal growth strategy is described as a focus on new products and market development, innovation and joint ventures. This is shown by GOOGLE introducing a new vertical market based structure across Europe.

4 Further, this is undertaken, in order to attract more business advertises to its search engine and to grow revenue from current advertisers. The impact , 20143 arabian journal of Business and Management Review (Nigerian Chapter) Vol. 2, No. 16 on HUMAN RESOURCES (HR) PRACTICES within the standard best PRACTICES mode and framework, indicates that in order for the company s internal growth strategy to be successful, it should contain and incorporate the following: Companies must constantly hire, transfer and promote individuals; Expansion into new markets requires changes in skills or prospective employees; Combination of behavior based and results based appraisals; Compensation structured as an incentive for achieving growth goals; and Training needs on how the company decides to grow internally.

5 GOOGLE is organized around the ability to attract and leverage the talent of exceptional technologists and business people. They have been fortunate to recruit many creative, principled and hard-working stars (Nightingale (2008:1). With GOOGLE s growth into new markets in Europe Jeff Levert was appointed the vertical markets director for Europe, and has since moved to Europe, in order to put into place a vertical management structure similar to the United States (US). The move to the European market is of high importance to GOOGLE as part of its growth strategy. In addition looking for heads of the vertical market departments in all the European territories and, it has already promoted the accounts manager to head retail sales, and has also recruited the former manager to the travel sector.)

6 GOOGLE has already expanded into more than 12 offices across Europe. GOOGLE has also expanded into China on the 2/3/2010 (Wauters: 2010:12). The company is known for its unique culture and HUMAN Resource policies and is acknowledged as an innovator and best employer (Nightingale (2008:1). GOOGLE s people programmes are geared up to the demands, to meet the requirements of the company s rapid expansion throughout the world, Fortune magazine (2013), has named GOOGLE as the best 100 companies to work for. GOOGLE s ability to leverage itself from competitors offers attractive packages, which serves as a pull factor for GOOGLE . Some of its benefits include: flexible working hours, allowing employees to wear casual dress every day, permitting employees to bring their dogs to work every day, on-site physician visits, on site dental care, health benefits, free massage and yoga, employee stock options, free drinks and snacks inside the campus, free meals including breakfast, lunch and dinner.)

7 GOOGLE also provides its employees with three weeks vacation during their first year of employment, free recreation including video gaming, football, volleyball and pool tables, valet parking for its employee s and onsite carwashes. The other attractive programmes that GOOGLE employees benefit from are maternity and parental leave, employee referral bonus programmes, onsite childcare centers, fuel efficiency and onsite dry cleaning. Apart from their innovative benefits, GOOGLE has implemented more activities concerning the employee s health, family and environment which is totally different from other related companies (Nightingale (2008:6).The stock options serve as a tool and driver for attracting top-level employees, this increased retention, recruitment ratios at GOOGLE 1:14 one recruiter for every 14 employees, and this in-turn helps to concentrate on individuals.)

8 GOOGLE s innovative work culture model emphasizes on 20% work employee s are allowed 20% of their work time to think innovatively and, this model excites new employees and existing employees in GOOGLE and serves as an attractive tool to retain employees in the organization. The success of GOOGLE products and services is mainly because of innovation expected from every employee and 20% time given by the company for this purpose. It is obvious that the HUMAN , 20143 arabian journal of Business and Management Review (Nigerian Chapter) Vol. 2, No. 17 RESOURCES activities and policies are actually driving GOOGLE s corporate business success. Because of its unique innovation work culture, in 2010, the employee turnover in GOOGLE was only 5 % (Wauters, 2010:15).

9 Leveraging research on best PRACTICES in employee referrals, GOOGLE has also evolved and introduced an employee referrals bonus programme which favored employees and their referrals. The company encourages the employees to recommend candidates and awards the employee $2000 (R22, 000 plus / minus) bonus if the referral accepts and remains employed for at least 60 days. This encourages and motivates employees and helps expansion. GOOGLE s compensation programme rewards strong performance and its training programmes help overcome weaknesses and underperformance of its employees. GOOGLE also emphasizes employment development through on the job learning and training. Indirect decision making is also evident and considered. This helps creativity, morale and esprit de corps.

10 Sullivan (2007:5) reiterates that this approach helped increase employee productivity and revenue. GOOGLE s HUMAN RESOURCES policies and work culture are unique in the way that staff and managers are allowed to try new approaches and learn from their mistakes. This in itself epitomizes GOOGLE s contemporary approach to HUMAN RESOURCES as opposed to traditional PRACTICES . This also indicates that GOOGLE s strategic role to HUMAN RESOURCES management is where talent management plays a significant role in its success. GOOGLE s worldwide offices ensures a balanced representation of the best talent from diverse backgrounds and, this leads to the creation of better products and services, it also forms the foundation through which GOOGLE serves its diverse customer bases throughout the world.