ORGANIZATIONAL STRUCTURE 7
GoogleCorporation Organizational Structure
Organizationsexist to accomplish particular objectives in their line ofoperations. Many organizations have vast activities, tasks, resourcesand operations that need to be coordinated, directed and managedtowards achieving organization goals. Different organizations requiredifferent organizational structures depending on their objectives,branch networks, departments, workgroups and mode of operations toachieve desired results. Organizational structure is the foundationthrough which operational procedures are executed routines anddecisions frameworks. Depending on these variants, organizations canadopt a functional, bureaucratic, pre-bureaucratic, postbureaucratic, divisional or matrix organizational structure. However,regardless of organization scope, organizational functions andorganizational designs have great impact in shaping organizationalstructure.
OrganizationalStructure of Google
Dynamicsin technology and economics factors have instigated Organizations tochange their organizational structures from traditional mode ofoperations to advanced organizational structures in order to chip inemployees and clients appeals as well as adapt to market dynamics.Google has changed its organizational structure from traditional modeto a modern cross functional structure. Traditional organizationalstructure had pyramid like organizational form where employees wereat the bottom of the triangle followed by supervisors, middlemanagers and then the top management at the top. In this form oforganizational structure, a vertical decision making approach isadopted where the lower cadre employees do not have any stake indecision making (Ming-Hone,Yu-De, & Yea-Huey, 2011).
RecentlyGoogle adopted a cross functional organizational structure that hasunique philosophy. This form of organizational structure embraces ateam work approach in its management operations and has beenstructured horizontally. As such the mode of organization structurehelps the Corporation maintain a small company feel where employeesare purposive contributor and all individuals are equally importantparts of realizing the organizations objectives (Ming-Hone,Yu-De, & Yea-Huey, 2011).
Theorganizational structure of Google differs from that of AmazonCorporation. While Google boast of a cross functional organizationalstructure with a horizontal aspect, Amazon has a hierarchicalmultidivisional structure. Amazon has different multiple divisionswith a bureaucratic head who, in turn, reports to overall managingCEO. In these divisions within Amazon, there is an officer in chargeof each department such as business development and Amazon webservices who, in turn, reports to the CEO. Amazon organization hasmany different products unlike Google, and, therefore, its divisionalstructure suits its operations. Divisional heads are able to focus ontheir resources, monitor resources and organization performance. Thisstructure best suits Amazon because it is flexible.
SearsHoldings Corporation has a matrix like organizational structure builton business units’ organization. These business units focus onparticular core categories, capabilities and have supporting unitsthat provides administrative and operational functions suchmarketing, store strategy, customer and finance strategies. InitiallySears had bureaucratic organizational structure but was changed forlack of viability in relation to organizations products and clientsbase.
WhileGoogle is innovative and uses technology, Amazon and Sears do not.Google organization structure is well formed to embraceinnovativeness in its operations especially using internet inconducting its business and recruiting staffs in whichever part ofthe world they want. Amazon has too embraced internet technology inselling their products in many parts of the world. While Google andAmazon has made great ventures through technology in theirorganizational structures and marketing operations, Sears on theother hand has had a hard time developing an organizational structurethat is effective in competitively marketing its products throughthe internet technology. Comparatively Google and Amazonorganizational structure are virtual in nature, while Sears HoldingCorporation has adopted a matrix like organization structure.Amazon’s network like structure has greatly enhanced its marketingstrategy but it’s far incomparable to Google Corporation marketshare (Ming-Hone,Yu-De, & Yea-Huey, 2011).
GoogleCorporation organizational functions influence on Organizationalstructure
GoogleCorporation, as a search engine that serves billions of peopleworldwide, has the best marketing capacity incomparable to any otherorganization. As a result of many potential clients who have accessto internet and Google search engine, the corporation has an alreadyestablished market for its products. This means that other Googleproducts and services can easily be marketed to this potential group.Consequently the corporation is able to cut on its fiscal budget aspertaining to marketing. Moreover, Google Corporation uses virtualstructure that embraces recruitment of individuals all over theworld. The management operations are almost virtue in naturetechnology has made the world smaller and management directives areshared through internet. By using virtual structure, the organizationis able to cut on its operational and administrative costs as mostoperations are online.
Asa corporation with a competitive edge, Google collects and analysesqualitative market information systematically to evaluate currenttrends and thereby capitalize on such information for expanding itsoperations. Google uses social networking as a tool to determine theset goals. The corporation established Google Ads and AdSence whichworked well in enhancing empowerment of online publishers to displayvariety of Ads online as well as earning revenue. As such, Google hasenhanced effective cost marketing of its services and those of otherclients. Data mined from vast data base of the search engine usersand customers has enabled the corporation become dominant in theindustry.
Inbroader sense embracing a virtue nature operational activities suchas management, human resources, marketing and supervision are few andhence finances needed are less. Therefore, Google is able to adapt ahorizontal cross functional organizational structure where allindividuals and organizational functions have a direct contributionto the organization through technology(Ming-Hone, Yu-De, & Yea-Huey, 2011).
Googleorganizational design influence on Organizational structure
GoogleCorporation has embraced an organizational structure design thatenhances employees’ to process, analyze and distribute informationquickly. This has been achieved through integrating differentfunctional departments and decentralizing decision making. This leadsto greater creativity and problem solving. Geographic location is nota problem to Google Corporation which has embraced technology in itsoperations especially through internet. This has made it costconvenient to do business all over the world.
Googlehas being able to establish functional design using its brand namewith its range of products. These products and services Googlesearch, Google map, Google sky and Google Ads, have enabled thecorporation attract millions of clients world wide. In turn, thecorporation has adopted an organizational structure that iscompatible to their focus which is the clients’ base. As a resultGoogle Corporation has established a departmentalization process thattakes up certain functions and directs them to functional departmentswith specialists. As diversification of products range widens,customer base increases, Google Corporation needs to embrace thematrix organizational structure where specialist employees would begrouped in functional departments for particular products. This wouldensure that operations and administrative functions remain wellcoordinated as well as ensuring that Google services remaincompetitive globally. A matrix organizational structure blended withvirtue aspect could effectively ensure that Google Corporationremains the best managed organization in the world.
Ming-Hone,T., Yu-De, L., & Yea-Huey, S. (2011). A Grounded Theory Study OnThe Business Model Structure Of Google. InternationalJournal of Electronic Business Management, Vol. 9, No. 3, pp.231-242, Retrievedon, March 14, 2014. Fromhttp://ijebm.ie.nthu.edu.tw/IJEBM_Web/IJEBM_static/Paper-V9_N3/A06.pdf