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Google's Organizational Structure

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According to Fortune and All Business magazines, Google is the fourth-most admired company in the United States. Google was also listed as the top company to work for in both 2007 and 2008. The main reason for this employee admiration is Google’s cross-functional organizational structure, which the company maintains though stellar leadership and innovative management techniques.

1. History o Founded in 1998 by Larry Page and Sergey Brin, Google has always operated on the motto, “Don’t be evil.” This moral code helps to guide employees because Google only holds them accountable to management to a degree. To keep the spirit of innovation the company was founded on, Google employees are mostly accountable to themselves. They have the freedom to spend 70 percent of their time on current assignments, 20 percent on related projects of their choosing, and 10 percent on new projects in any area they desire.
Features
o The “70-20-10 rule” represents a managerial guideline, but it also authorizes the employees to take risks. Google executives encourage employees and managers to work directly with each other, instead of through more formal channels. The executives work closely with employees and other departments in a form of cross-functional management. Google’s open communication contributes to the organizational structure and their idea policy is one of the most substantial managerial features. It gives the staff a sense that they contribute to the company’s business objectives.

Function
• Instead of setting goals for them, Google’s management helps their employees meet the objectives that the employees set for themselves. The company sees its managers as leaders who facilitate inspiration and empower employees. Google’s management function controls employee responsibility in similar way to the United States government, through a series of checks and balances.

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