CHAPTER IV
RESEARCH METHODOLOGY
4.1 SOURCE OF DATA:
There are two sources from which data can be taken.
1. Primary data:
No Primary data has been taken for this report.
2. Secondary data:
The data for the report is secondary in nature.
4.2 RESEARCH DESIGN:
It is s descriptive research.
CHAPTER V
Google and its methods of employee Compensation and Reward
4.1 Compensation Structure
One of the most sought after and yet one of the most underpaying employers in the industry is Google. However, the HR strategy fits perfectly with the business model and vision at Google – where employees are attracted not to the short term monetary returns from work, but rather to the support system that could help them create anything (Josey, 2005).
Google felt strongly that they were a competitive payer in the market. They said they used survey data at the 75th percentile to extrapolate the 90th percentile for most positions. They also said they have a collection of market data that they have amassed from employees hired into their organization based on their previous salary at other top technology companies. But, the organization decided that it was no longer enough to be competitive, they wanted to have the highest salaries in the market, and that is when they decided to do the 10 percent across the board increase.
While we assume that many of the employees that work at Google are top performers, this increase wasn’t about performance but more about their commitment to be the very best in terms of compensation. They wanted to do that across the board – not just for certain individuals. So, while I’m not a fan of across the board increase as a substitute for smarter compensa...
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... due to which research could not be done properly.
5.3 SUGGESTIONS
1. Company should try to know what are the needs and desires of the employees and accordingly compensate and reward them. This will motivate the employees more and will be more effective in retaining the employees.
2. Company should try to overcome all its weakness due to which the employees are leaving the company. For e.g. Google should make sure that all d employees whether temporary or permanent should be treated equally or should have the same status in the company.
3. Google being an innovative driven company, it can open a new wing for employees who wants to go solo i.e. has entrepreneurship desires with good start up ideas. The company can be at advantageous situation by acting as angel investor and help employees nurture their ideas.
Google is a well-known free net-search service that millions of people use around the world every day. Every time we don’t know the answer to something right away we take out our smart phones from our pockets and google it. The possibility to be able to google in a search engine is all to co-founders Larry Page and Sergey Brin. Google was created in September 1998. The website can be used in 120 different language and more. It has 97% revenue in advertisement, making almost all of its profit on advertisement. Google is valued at USD $100 billion, first company to be known to be valued at this amount. The company was started up from a garage in Menlo Park, California.
As a result, Google does need to increase its Capex to account for the growth of two of
, in which they “[expected] that advertising funded research engines will be inherently biased towards the advertisers and away from the needs of the consumers” (Brin and Page). This completely contradicts Google’s first and second principles, “do what’s best for the user” and “provide the most relevant answers as quickly as possible”. The truth is, Google makes most of their income on adverstising and has acquired many companies in order to become a titan in that industry, and with Google’s unignorable control in the search market, it is to no surprise that the company has used its influence to be more biased towards things that would increase its wealth. Brin and Page are not the only ones with this mindset; it turns out that VP Marissa Mayer, former executive and key spokesperson for Google, has confessed during a Seattle Conference on Scalability that “...
...d to projects unrelated to the core business. Googlers are given 10% of their work time to devote to projects that interest them ensuring high motivation based on the fact the staff get paid to work on pet projects. Flexible work time, bonuses, and free lunches are not the only reasons people love to work at Google in addition to the perks, they are constantly challenged to reach new impossible goals and to have fun doing it.
One of the Google`s strategies is the motivation of employees based on benefits and facilities; it is possible to see cases when people prefer to work at Google instead other companies where the salary is higher. However, by analyzing the case it is possible to find not only positives, but also negatives points in the company`s environment that may affect the employees` motivation.
...as not only been reliable when it arises to offering a product of the highest and excellence, nonetheless is also continually developing, adjusting, but more meaningfully revolutionizing the industry. Also, what creates Google’s invention so matchless in assessment to its challengers is the attention that it offers to consumer requirements in order to offer a consistent and difficultly substituted the product rather than concentrating on exploiting its profit with each given chance which may cooperation the quality of its search consequence its product. Having examined the company’s internal and external environment it is obvious that Google earnings care and attentions even to the smallest detail to guarantee that it will be the leading company between many other online search engines and has been able to create loyal customers that are continually growing.
Introduction of a gig economy means an organisation must prepare for certain structural changes. These are mainly present in the company’s HR culture. Organisations must be able to solve issues such as:
It is important for manager to understand that what motivates the individuals. There are different kinds of motivation theories which reveal that individuals are motivated by different factors. For example there is extrinsic motivation and intrinsic motivation (Amabile, 1993). Extrinsic motivation refers to the motivation that one has for the extrinsic rewards such as pay, status, power, etc. Then there are intrinsic motivating factors such as the chance to exercise one’s skills, the opportunity to learn and personal development. Research suggests that various factors motivate employees in a different degree depending on their nature. It would therefore be important for the manager to understand that what are the motivating factors for individual employees and then provide them incentives accordingly so that they can work in a more productive fashion. Once the individuals work with greater excitement and vigour it would automatically lead to better performance.
Google Inc. is a company that started in 2002 and has gradually grown to become an international technology company. Google’s business is mainly focused around vital areas, like advertising, search, operating systems and platforms, hardware products and enterprise. The company produces its revenue mainly by distributing online advertising. Google also produces revenue from Motorola through selling products. The company offers its services and products in over 100 languages and in over 50 regions, territories and countries.
As any other company that managed to rise to fame, it was successful due to an exceptional organizational belief and value, Google company is no exception. Google Inc. practices a routine type of working condition for the scalability and its storage solution, managing the large scale application, as well as making a new platform. It is well known that a routine work is more stressful than any other work.
Google’s Stock Price was around $ 110, but it is now traded at around $500. What made this big difference? In order to understand why google’s stock price increased to reach this level we have to understand what makes it special from the way they treat their employees.
2009 was a negative period for the United States economy. A big recession hit the country, and the founders of Google were trying to make a plan in order to make to limit the damage caused by an economic decline. Brin and Page the two creators of the giant Google were shocked form the situation that was occurring. Their company was feeling the effect of the economic downturn. Google’s stock price dropped 51 percent. The two entrepreneurs were trying to figure out a way to keep the company from drowning. Google main problem was how to maintain the culture that made the company successful in the previous two years. Some consequences that the company had to face was eliminating products that
4) We can increase retaining talent for longer period by giving more flexibility to them and by sharing profits with them. They should be paid for achievements. Even we can design internal Facebook so employees can organize themselves around their area of interest.
Employee focus (Google has a unique culture and policies to promote innovation. The company strives to employ the most qualified applicants and reward the greatest contributors, in order to promote good performance and facilitate hiring and retention)
...s in the corporate world by setting new standards to promote and better satisfy their employees. We chose four leading companies in four different industries. The above analysis definitely reveals that perhaps one of the reasons why these companies are the leaders in their industry is because they are well aware of the importance of the work force. They mention in their mission statements as well that yes in deed customers are important but in order to make the customer happy they first need to motivate and satisfy the employee as well. According to Citibank, the general belief is that a happy worker is a motivated and loyal one. So keeping employees' spirits high is a sure-fire way of maintaining a productive workforce. A productive work force would ultimately lead to a healthy organization which would not only promote the society its working for but also itself.