Human Resource Managemen Essay Example

Miller(1987) views SHRM as a specific branch of HRM that focuses on creating and sustaining competitive advantage through effective people management at all levels of the business.

The text highlights that successful companies rely not only on technology, patents or strategic positioning but also on effective people management.According to MacMillan (1983), gaining a competitive advantage involves understanding and anticipating barriers, information systems, preemptive capabilities, infrastructure requirements, strategic risks, general management challenges, and influence and counterattack planning. However, only a few companies achieve this advantage and even fewer see human resource management as the most effective tool for maintaining it. To succeed in competition through its workforce, altering perceptions of the workforce and employment relationships is crucial. Human resource management considers the workforce a strategic advantage source.

Following Michael Porter's competitive forces model (Pfeffer 1995) - including new rival entry, threat of substitutes, bargaining power of buyers and suppliers, and competition among existing rivals - an organization can create barriers to entry by hiring and retaining skilled individuals while adhering to Porter's theory.

Google is a renowned internet technology and advertising company known for its highly productive and innovative workforce. With headquarters in Mountain View, California, it primarily operates in the US, UK, and other countries. Employing approximately 20,222 individuals globally Google has gained recognition not just for its technological excellence but also for its unique HR practices and culture.In 2009, the company's HR practices were ranked first on Fortune's '100 Best Companies to Work For' list, and in 2008 they were ranked fourth. This study was conducted by Fortune magazine published by Times Inc., and it involved over 80,000 employees from more than 350 selected companies. These employees

participated in cultural audits that included detailed inquiries about demographics, salary packages, benefits programs, beliefs held within the organization, and communication channels utilized.

Google's HR practice is known as 'People Operation', which focuses on building strong employee relationships. This approach not only motivates employees but also improves their efficiency and productivity. Laszlo Bock is the Vice President of People Operations at Google and he is responsible for overseeing the global function of attracting, developing, and retaining employees (referred to as "Googlers"). Bock has a Master's degree in business from Yale University School of Management and a bachelor's degree in international relations from Pomona College.

Before joining Google, Bock held leadership positions in human resources at General Electric and worked as a management consultant at McKinsey & Company and Hewitt Associates. According to Bock, optimal performance is achieved when individuals work in small teams with minimal management constraints (Peoplemanagement.co.uk).Google maintains a small company atmosphere by encouraging idea-sharing among its large workforce of over 10,000 employees worldwide. This sets Google apart from other organizations and gives it a competitive edge. For instance, all staff members have the opportunity to eat lunch together at the office cafeteria, promoting interaction among colleagues from different teams. Additionally, Googlers can directly ask questions to Larry Page or Sergey Brin, the co-founders and presidents of the company, fostering communication within the organization.

Creating an exceptional workplace environment is not Google's sole focus; they also strive to develop the best search engine. While there is no conclusive evidence linking free lunch and a multicultural campus environment to Google's success and profit according to their Culture Audit, they are currently experiencing significant growth in terms of employee

retention, low turnover rates, and strong revenues. This growth can be attributed to Google's ability to attract highly motivated individuals, resulting in a large number of job applications. The Great Place to Work survey recognized Google as an ideal workplace in 2009.The company, Google, has a casual approach and embraces values such as ethical money-making and professional attire-free work environments (Wikipedia-Google). They have implemented the "Thank God it's Friday" (TGIF) meeting, which was initiated by Larry Page and Sergen Brin. This weekly gathering allows employees to interact and discuss various topics. The purpose of the TGIF meetings is to enhance employee satisfaction through activities like welcoming new staff members, providing updates on company events, conducting Q&A sessions, and celebrating team achievements. These meetings create a friendly environment that encourages questions and discussions at all levels.

Google pays attention to its employees' needs by offering dedicated forums and an email list. These resources provide information about new products, events, and insights into life within the company. Employees regularly share their thoughts, ideas, and suggestions for improvement through Google Ideas.

In addition to TGIF, there is also the Quarterly Kick off Meeting led by the Sales Vice President. This meeting occurs quarterly and discusses team performance as well as product updates. It aims to give employees an understanding of the company's current standing and future goals.

Furthermore, Google hosts the Global Sales and Operations conference known as the Google Quarterly Kick off meeting while embracing its casual approach with values such as ethical money-making]and professional attire-free work environments that are both challenging yet enjoyable(Wikipedia-Google).This three-day workshop features presentations from senior leaders and guest speakers, promoting open discussions and one-on-one Q&A

sessions with top management. Similar to TGIF, it also includes the unique 20% project for Google engineers, allowing them to dedicate a portion of their time to outside projects that benefit the company. Google Inc. prioritizes hiring based on ability rather than experience and values diversity through worldwide offices where employees communicate in different languages. Regardless of location or product/service, Google aims to create a positive environment by recruiting talented individuals committed to search perfection and enjoying their work. Bureaucracy is avoided, innovation is encouraged, and management recognizes the value of every employee's ideas for Google's success. Personalized compensation packages with competitive salaries, bonuses, and equity components are offered along with fostered collaboration within small teams and high-energy environments at Google. Employees are passionate about using technology for positive impact while also valuing a fulfilling personal life alongside work. In 2009, various extracurricular activities such as cross-country cycling, wine tasting (typo?), winging (?), and frisbee were encouraged among Googlers according to multiple sources from the company itself.Larry Page, the co-founder of Google, emphasizes the importance of their staffing strategies as a competitive advantage. The company strives to provide great jobs and great lives for its employees, both on and off the clock. Attracting top talent is a priority for Google because they consider people to be their most valuable asset. Hiring is taken seriously, with decisions being made by consensus. When evaluating potential hires, Google looks for "Googleyness," which refers to their ability to work effectively in small teams within a flat organizational structure and adapt quickly to a fast-paced environment.

Compared to other companies, Google offers early career professionals significant responsibility from the beginning, allowing

them to make meaningful contributions quickly. Alongside a rigorous hiring process, Google strategically uses compensation patterns to gain cost and efficiency advantages when searching for advanced products and services that support their primary business goals. This compensation strategy encourages innovation and high performance while attracting and retaining top talent.

Google follows a pay-for-performance framework that rewards individuals who excel similarly to start-up environments while exposing underperformance to risks.This approach is applicable to all employees, with a larger portion of their compensation being tied to leadership and responsibility as they progress within the company. Employee compensation data reveals that Google's software engineers have a median salary of $81,239, which is $8,000 lower compared to Yahoo's main competitor. However, this changes for senior-level software engineers at Google who have a median salary of $111,996 - approximately $5,000 higher than Yahoo's average salary of $106,728. When considering years of experience, Google employees with less than one year earn an average salary of $73,800. After 20 years or more at the company, Google employees earn an average salary of $122,084 - showing a significant increase over time (PayScale, 2009). Despite being offered a raise in 2006, Google's co-founders and CEO declined and continue to receive an annual salary of $1 (CNNMoney.com, 2006). Many young professionals aspire to work at Google due to its excellent work-life balance, top-class compensation and bonuses; along with the opportunity to work on exciting projects. Maintaining a good work-life balance for employees is prioritized by Google resulting in them spending a considerable amount of time at work. Effective HR management attracts and retains motivated employees leading to increased profitability; low employee turnover; high product quality; lower

production costs; and successful implementation of corporate strategy (Schuler R.S & MacMillan I.C., 2006).Google offers unique and expensive fringe benefits like free food, a fitness center, barber services, car wash facilities, a pool table, a games room, lap pools, volleyball courts, company massages, and $5000 compensation for hybrid cars. These perks contribute to an excellent work environment that promotes increased productivity, employee loyalty, the development of creative products, and sustainable growth with good profitability. Surveys and studies indicate that Google's cost advantage is primarily due to its highly productive, motivated,and innovative workforce. Appendix 1 outlines the top 10 reasons to work at Google which include helping people find information they need for a great life; engaging in meaningful work on impactful products; enjoying a fun and inspiring workspace with on-site healthcare services, massage and yoga options; having opportunities for professional development and access to running trails; collaborating with diverse teams from around the world while also embracing creativity; valuing employees by offering various medical plans, matching 401(K) program participation options stock options as well as maternity and paternity leave.Innovation is deeply ingrained in our company culture. We firmly believe that even the best technology can always be improved upon. As a result, we constantly seek opportunities to create more relevant, useful, and faster products for our users. This assertively positions us as the leader in organizing the world's information.

When you join Google, you will encounter a diverse group of employees with varying backgrounds. From brain surgeons and CEOs to alligator grapplers and Marines – there are interesting combinations abound. Our aim is to connect the world through our products by serving people in every country

and language.

With a global focus on making the world a better place, we embrace new challenges eagerly. Your creative ideas matter at Google; we encourage their exploration here. Not only will you have the opportunity to create innovative products that millions of individuals will find highly valuable, but we also provide a daily free lunch.The lunch we provide is not only nutritious and tasty, but it is also made with love. Some sources that discuss Google and its various aspects include:

- ALLEN, M., AND WRIGHT, P. (2007), "Strategic direction and HR," in L.P. Boxall, I.J. Purcell and P. Wright (explosive detection systems), The Oxford Handbook of Human Resource Management
- BARNEY, J., 1986, 'Organizational culture: Can it be a source of sustained competitive advantage?' Academy of Management Review
- BARNEY, J., 1991, 'Firm resources and sustained competitive advantage,' Journal of Management
- BARNEY, J., 1995, 'Looking inside for competitive advantage,' Academy of Management Executive
- BOXALL, P. and PURCELL, J., 2003 Strategy and Human Resource Management
- CNNMoney (2006), Google leaders stick with $1 wage
- DATAMONITOR (2009), Google Inc.Company Profile
- DESSLER G., 2005 A Framework for Human Resource Management
- Great PLACE TO WORK (2009), Great Place to Work institute best companies list
- MACMILLAN I.C., 1983 Seizing Competitive Initiative
-MILLER P., (1987), "Strategic Industrial Relation and Human Resource Management: Differentiation, Definition and Recognition" -Journal of Management Studies
-PAYSCALE , 2009 , Google : Company Salary Review
-Peoples MANAGEMENT , 2009 , People work best in small teams , Says Google
-PFEFFER J .(1995) Producing sustainable competitive advantage through the effective management of people' PORTER M .(1985) Competitive Advantage PRAHALAD C.K .AND HAMEL G.(1990),'The core competency of the corporation' -Harvard Business Review

-SCHULER RANDALL S.Various sources discuss different aspects of Google. ALLEN, M., AND WRIGHT, P. (2007) explore the strategic direction and HR in their chapter of The Oxford Handbook of Human Resource Management. BARNEY, J.'s articles from 1986, 1991, and 1995 investigate organizational culture as a sustainable competitive advantage, firm resources for sustained competitive advantage, and looking inside for competitive advantage respectively. BOXALL, P. and PURCELL, J.'s Strategy and Human Resource Management (2003) also delve into Google's strategies related to human resource management. CNNMoney (2006) discusses how Google leaders stick with a $1 wage. DATAMONITOR (2009) provides an overview of Google Inc.Company Profile. DESSLER G.'s A Framework for Human Resource Management (2005) offers insights into HR practices at Google. Great PLACE TO WORK (2009) recognizes Google as one of the best companies to work for. MACMILLAN I.C.'s Seizing Competitive Initiative (1983) explores ways to gain a competitive edge like Google does.MILLER P.'s "Strategic Industrial Relation and Human Resource Management: Differentiation, Definition and Recognition" -Journal of Management Studies (1987) investigates the relationship between industrial relations and HR management strategies at organizations such as GoogleIn 2009, PAYSCALE's Company Salary Review evaluated Google's compensation practices. According to an article by Peoples MANAGEMENT in the same year, Google believes that people work best in small squads. PFEFFER J.'s research from 1995 focuses on effective people management techniques, similar to those used by Google, that lead to sustainable competitive advantage. PORTER M.'s book Competitive Advantage from 1985 outlines key factors for success in organizations, like those implemented at Google. The article "The core competency of the corporation" by PRAHALAD C.K. and HAMEL G., published in Harvard Business Review in 1990, explores

how corporations develop and leverage their core competencies for competitive advantage. SCHULER RANDALL S.'s perspective is not mentioned explicitly but can be inferred as being aligned with the above concepts discussed regarding effective people management techniques at Google.The text below presents information from various sources, including Macmillan I.C. (2006), Redman T. (2009), Storey J. (2001), assorted Google sources, and Wikipedia's page on Google accessed on November 28th, 2009:

- Macmillan I.C.(2006), Deriving Competitive Advantage through Human Resource Management Practices , Human Resource Management
- REDMAN T., 2009, Contemporary Human Resource Management: Text and Cases
- STOREY J ., (2001) , Human Resource Management : A Critical Text
- Assorted Google Sources

Here are the provided URLs:
- http://www.google.com/intl/en/jobs/lifeatgoogle/index.html
- http://www.google.com/intl/en/jobs/locations.html
- http://www.google.com/intl/en/jobs/joininggoogle/hiringprocess.html
- http://www.google.com/corporate/execs.html
- http://www.google.com/support/jobs/bin/static.py?page=about.html&about=top10

This information is sourced from Wikipedia - Google, accessed on November 28th, 2009. The source can be found on the World Wide Web at http://en.wikipedia.org/wiki/Google.