HRM at Google.pdf

[BBMM302 - HUMAN RESOURCE MANAGEMENT] GROUP REPORT

HRM PRACTICES AT -

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EXECUTIVE SUMMARY Google is one of the top technological and innovative companies in the world and they have done this though the successful implementation of its business and corporate strategies and delivering outstanding results for shareholders and other stakeholders in the organisation. It has been voted as Fortune Magazines, 'Best company to work for' and is committed to be so every year. This report aims to identify the purpose of three primary HRM activities namely, Recruitment, Selection and Retention, Training and Development and Reward Management. Then we identify the best practices of these HRM functions at Google and finally analyse the practices and determine whether they are being fulfilled in a right and legal manner. It is important for organisations to ensure its HRM and HRD activities align with it organisations vision, mission and strategy and every once in a while organisations need to assess whether the right path is being followed. Google has done everything and more for its organisation and its most valuable asset, its" people" in terms of the best practices of HRM in the work place. The have addressed the social as well as the psychological aspects of an employees organisational needs and at the same time addressed their personal needs as well. An analysis into the report will set a clear picture on how Google fulfils its strategic and HRM purposes.


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CONTENTS

EXECUTIVE SUMMARY

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GOOGLE - Company Background

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GOOGLE - Vision, Mission and Business Strategy

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IDENTIFICATION OF VARIOUS HR FUNCTIONS/ACTIVITIES

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ANALYSIS OF VARIOUS HR FUNCTIONS/ACTIVITIES

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CONCLUSIONS

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RECOMMENDATIONS

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REFERENCES

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GOOGLE -Company Background Google is a multinational technological company based in the United States that specialises in various internet based services such as search engine, online advertising, software and cloud computing, navigation, email, productivity platforms, photo and video organising etc. (Google.com, 2017). The company was founded in mid 1990s by its co founders Larry Page and Sergey Brin. As of 2016 Google had 69,900 employees working for it. As a part of the company's new strategy it had formed a new parent company Alphabet Inc. to make the core business more cleaner and accountable (Google.com, 2017). The company has over 70 office in 50 countries. GOOGLE - Vision, Mission and Business Strategy Vision Google's vision statement is to "provide access to the world's information in one click." (Google.com, 2017). Mission Google's mission statement is "to organise the world's information and make it universally accessible and useful." (Google.com, 2017). Strategy The primary business strategy of Google is to deliver analytical insights that are used by leaders to innovate. This includes identifying acquisitions, investments, strategy for product monetisation and finally developing business partners in countries like Africa and India which are major emerging markets in today's world economy. Google's strategy is designed to anticipate and successfully execute any programs which are essential for Google's short and long term growth. (Careers.google.com, 2017) PURPOSE OF VARIOUS HR FUNCTIONS/ACTIVITIES "HRM can be simply defined as the convergence of three factors – human beings, resources and management – where human beings have the actual and potential resources (knowledge, skills and capabilities) that can be harnessed through effective management techniques to achieve short- and long-term organisational goals as well as personal needs." (Nankervis, 2017) Strategic HRM on the other hand can be defined as "the pattern of planned human resource deployments and activities intended to enable an organisation to achieve its goals" (Wright and McMahan, 1992). It is essential to establish that the HRM activities and the organisational goals are aligned.

• Recruitment, Selection and Retention of Employees. Recruitment is one of the fundamentals of HR Processes. The primary purpose of recruitment is to find the maximum number of applicants which are deemed eligible and provide the opportunity to the best applicants that are suitable for fulfilling that particular organisational role. (AHRI, 2017). It is essential for an organisation to have an effective recruitment strategy in place so that the most qualified people are hired to achieve organisational goals and increase organisational effectiveness. (AHRI, 2017). Whereas, the primary purpose of selection is to ensure that only the best people are hired for the role using the right process, i.e fair and equitable selection activities.(AHRI, 2017). For this reason the organisation should have all the necessary skills, knowledge and other resources at their disposal to meet the strategic needs of the organisation. Google understands the need to hire people with different perspectives in the workplace and most importantly provide all kinds of personal and professional experience from their lives. They

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understand the importance of team work and are committed to hiring contentious people as a result (google.com.au, 2017). Google is to hiring only the most passionate and curious individuals which have an unmatched desire to learn. They want people who are ready to take on fresh challenges head on and value the team work they put in alongside other members of the workplace. The process involved in the recruitment and selection of the candidates at Google is as follows • First the recruiter screens the application to make sure that all the technical and experiential requirements are met by the applicant. The resumes are kept on file in case you do not get selected now and a future opening comes up. • Then a phone screen interview takes place and that takes care of the necessary housekeeping. The main aim of this is to access your technical abilities and your level of motivation. • This is followed by an on-site interview with about 3-5 people. This comprises of face-to-face sessions with the manager, fellow colleagues etc, to gain a deeper understanding of your skills, abilities and knowledge. These last for approximately 35-45 minutes with each person and is one of the most important links in the recruitment chain. • Next the feedback is provided by the person interviewing the candidate as per the standard format and a numerical rating is assigned to each candidate. These scores are processed by the recruiter, taking into consideration the scores of other candidates fit for the role. Feedback is also collected with current and former colleagues to determine whether the candidate is a fit for the role. • The potential candidates for the part are then reviewed by the hiring committee which comprises of senior managers, directors who assess the potential of the candidate based on experience and reviews feedback from face-to-face interviews and does thorough resume checks. Once an agreement is formed on the candidate, he is sent for the executive review. • Hiring the right candidate is very important for Google. At the executive review, the impact of the hiring is considered on the firms future and it is passed on to the compensation committee, once considered favourable. • The compensation committee determines what would be an appropriate remuneration for the vacant job position. This is calculated by keeping in mind the salaries being offered by various other firms for similar positions. • Next one of the higher executive reviews the employment offer and decides on whether to proceed or not. • Once the top executive of the firm reviews the candidate, an offer is extended to the applicant. Such a comprehensive recruitment program suggests that Google is very serious about who they employ and consider the people working for them as their biggest asset.

• Training and Developing Employees. Training can be defined as "Training endeavours to impart knowledge, skills and attitudes necessary to perform job-related tasks. It aims to improve job performance in a direct way." (Truelove, 1992) HR Managers utilise various effective methods for training and development through programs such as OTJ Training, Workshops, coaching and mentoring, short courses and also compliance training. (AHRI, 2017). This particular branch is handled by HRD professionals in the workplace and the primary purpose of such activities is to ensure that employers are committed and dedicated to learning and development and that its employees are possessed with the necessary skills and knowledge needed to achieve their job and organisational goals in this competitive and continuously changing external environment. Development on the other hand is "a long-term process designed to enhance potential and effectiveness. It is also defined as the growth or realisation of a person’s ability, through learning, often from planned study and experience." (Gansberghe, 2003)

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It is essential for organisations to align it T&D needs with its organisational goals and objectives. This involves appropriate needs analysis from the ground up. The organisation should link its T&D activities to its business objectives, vision, mission and most importantly its culture. (AHRI, 2017) Some of the benefits of T&D are

- Improvement in business performance. - Increase in employee motivation through career and knowledge development. - Succession planning and talent management. The most important thing for an organisation to do when designing any T&D activities is to first determine what the "purpose" of that activity is and how does it help the organisational goals and objectives. Google has a technique of individual-organisation matching (Panmore.com, 2017). They match the need of the organisation by filling vacancies on a combination of employee performance appraisals and interviews. This benefits the HR performance at all the various levels of the organisation including job, team and organisational level. Google also identifies and provides career opportunities through the process of job analysis and coaching. Through job analysis, they come up with a whole variety of career options for individuals. Through the process of one-on-one coaching, the coaches can identify what career paths the employee can have with the organisation. Appraisals done by the HR department at Google are an indication of the employees potential and are a clear indication of the performance of employees and indicate any interest the employees may have in future job positions. Career development is a major thing at Google. The basis of career development programs are the company's annual appraisals. These appraisals are a way for the HR department to discuss future development opportunities for the employee. One of the most transforming programs is the "Search Inside Yourself" program. It is a meditation program that helps people relate with themselves and helps the organisational culture as well, particularly in the engineering culture.

• Reward Management Reward management is the process by which organisations design a strategy and policy which aims to reward its people in a fair and equitable manner which is directly related to how valuable they are to the organisation. Proper reward management strategies are essential to support the organisations strategic goals as these help with the motivation and retention of employees, provide valuable equity to the organisation and most importantly strengthen the employer-employee psychological contract. (Hrwale.com, 2017). These are the primary purposes of a proper reward management system. There are several types of rewards with the basic types being - extrinsic and intrinsic. Extrinsic rewards are usually the basic needs such as pay, safety, proper working conditions, fair treatment. On the other hand intrinsic rewards fulfil the higher needs of the employees such as 


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self-esteem, personal development and respect. Google has become highly competitive with its rewards and compensation programs over the years. Apart from the perks offered by the management such as unlimited gourmet food and snacks at no cost, free massages, getting your laundry done when you are at work, an experience like no other when you work with the best minds of the business, bringing your pets to work, exceptional parental leave for when you have your first new born, industry best death benefits, free fitness and gym class and the opportunity to keep learning (Careers.google.com, 2017). Trust me, this is just the tip of the iceberg. Whether you are a Googler or an Ex-Googler you always have support of your alumni. They also provide the opportunity to pursue your passions in your work time. Google also provides its executives with regular profit sharing and stock ownership programs to motivate them to work hard help in increasing the value of the stock. Holiday offers are given to employees along with regular salary increases. Google also provides legal benefits for its employees. ANALYSIS OF VARIOUS HR FUNCTIONS/ACTIVITIES

• Recruitment, Selection and Retention of Employees. Analysing Google's hiring process, it can be said that Google is doing everything it can to find and select the right people for the job. Google's HR boss, Lazio Bock believes that the best way to hire the best employees are by setting up an uncompromisable high standard for recruitment by finding the right candidates. It then puts checks in place to assess the candidates on an objective basis for selection and finally gives its employees a reason to join the company (Feloni, 2017). The reason why this is successful is that there is a right communication from the very beginning of the recruitment process followed by no compromises of any sort and agreement along the entire recruitment chain. This way the candidate feels valued, there are tests for high standards and a comprehensive chain ensures that nothing is overlooked. Almost every employee is involved in recruiting and selection and this is a part of their job description. Employees are also given remuneration in the form of bonuses if their referral gets hired successfully. To some extent it can also be said that even though Google does everything right in terms of the recruitment and selection of employees, a few years back it was believed that google did not do enough to retain its employees after a certain period of time (Arrington, 2009). According to some ex employees, the main reasons that Google employees leave is low pay relative to other rival firms, and also the high level of bureaucracy, poor mentoring and a very lengthy hiring process. Another concern was that employees were not allowed to own any of their developments made during their time at Google and that Google had the ownership of the intellectual rights for any technology or service developed during their employment. Another way to look at this may be that once psychological and the safety and security needs of the employees are met, they want to fulfil their self-esteem and self-actualisation needs. Even though the criticisms are right to some extent, it can be said that Google is going everything it can to make sure that their people, the backbone of the organisation are recruited and selected and retained. This is what has made them one of the most loved companies year over year (Fortune, 2011).


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• Training and Developing Employees. As far as training and development of its employees is considered, Google is doing everything to train and develop its employees in a manner that suits the organisational goals and needs. Though a thorough needs analysis, Google's HR department identifies any gaps in the current and future needs and designs programs accordingly. There is a combination of relational and results-oriented model approach for the trading programs designed. This is applicable to the many training programs offered by Google as mentioned above. By the implementation of a training program, Google triggers the employees learning mechanisms and the results oriented model ensures that the program is successful. As is with any successful training and development program, Google has the proper algorithms and processes in place to evaluate its training program. This is done through the learning outcomes of the trainees, and their KSA's in their new roles. Employee surveys have indicated that the trading programs are successful and also the primary purpose that Google does these programs is to retain its talented employees. Programs such as 'EngEDU' and 'GoogleEDU' (Google.com, 2017), are aimed to do that and it is the process through which learning is formalised for managers and top executives. Now that Google has established itself in every part of the world, it also provides free language classes in case it employees want to relocate to a different country. Personality development opportunities are infinite and so are the coaching and mentorship opportunities (Walker, 2012).

• Reward Management Google is doing everything it can to help fulfil its employees psychological, safety and security needs. Through programs such as Peer Bonus, where a fellow Googler nominates another peer for a bonus. These are instant bonuses that help the employee feel he is valued amongst his peers and recognised for it. The senior management also provides Spot Bonuses and these are aimed to go "above and beyond" the daily routines of the employees. These are a recognition for an employees affective commitment to the organisation (Google.com, 2017) Holiday gifts, promotions, and annual bonuses are among other things that are important part of the Google's commitment to fulfil its employees needs and in turn accomplish its organisational goals along with the perks specified above.

CONCLUSION You can clearly see that Google's recruitment, selection and retention is clearly in line with their organisational goals. The fact that Google hires only 0.2-0.4% of the million applications it receives each year indicates how serious they are about recruiting and retaking the best talent. Over the years they have improved the recruiting process through feedback and this has proven successful for them. Google's organisational culture has played a strong part in aligning its goals with its training and development activities. There is no communication gap in between the junior employees and top management executives. The friendly and casual atmosphere is encouraged along with a desire to learn, and Google is doing this successfully.


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Over the years they have improved their training and development activities and have made their work a better place for current and future employees. Google has been increasing the fusion of innovation and human resources to achieve its organisational goals. It's flat and decentralised organisational structure ensure a more comfortable training and development environment. The fact that they have a 80/20 rule where an employee needs to take 20% of his time away from the organisations work and use it to pursue his passions. Google is successfully fulfilling the psychological contract by providing its employees whatever they need to improve organisation performance and make sure that the the workplace is valued and enjoyed by the employees. RECOMMENDATIONS Over the years, Google has changed the way it manages its HRM practices and this has proved beneficial for the company. Year over year its HRM purposes have been fulfilled in terms of its organisation wide practice of there functions. Though one thing that needs to be addressed here is that Google has had a lot of negative publicity around 5-6 years ago when it had key employees leaving the organisation and join rivals. Though the reasons for this may have varied at the time, now it is vey clear that employees need recognition. Nothing motivates the human soul more than employee recognition and this is one area that Google can improve on so that it does not lose any of it valuable and precious assets, its "people" to its competitors.

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