BUS 6110 Module 2 Assignment- Applying Organizational Design to a Case
Ebelechukwu Chika Nwinyi
Master of Business Administration, Nexford University
BUS6110: Organizational Strategy
Dr. Michael Simms
November 2023.
Introduction.
A company's structure, responsibilities, procedures, and technology can all be created or
changed through organizational design to better align with its long-term goals and objectives.
Improving productivity and adjusting to shifting conditions in the business require analyzing
the current organizational structure, spotting problems or inefficiencies, and implementing
changes (Dhar et al, 2005). Company development is to provide an operational structure that
supports the organization's mission and enables it to achieve its objectives. An organization's
leadership culture, employment practices, industry it operates in, and size all have an impact
on its structure.
Google
Google LLC, a division of Alphabet Inc., offers online search and advertising services.
Search, platforms and operating systems, enterprise and hardware solutions, and advertising
are among the company's business segments. Included in its list of offerings are Google
Search, Google Chrome, Google Documents, Google Calendar, Google Photos, Google Meet,
Google Drive, Google Finance, Google Play Books, Google News, Google Earth, Google Ad
Manager, Google Play, AdMob, Google Maps, AdSense, Gmail, Google Groups, and
YouTube. Americas, Europe, Asia-Pacific, Africa, and the Middle East are among the
regions in which the company operates commercially. In Mountain View, California, the US,
is Google's headquarters (Global Data, 2023).
Google’s Organizational Structure
The success of Alphabet's Google demonstrates how well its organizational structure and
culture foster excellence in innovation. The organizational structure of Google is set up to
support innovation to the fullest. (Smithson, 2023). Google is organized as a cross-functional
matrix which views flatness as a key component influencing how various corporate structure
functions (Smithson 2023).
Below is a pictorial description of Google’s Organizational Structure (Cuofano, 2021).
Listed below are the main characteristics that describes Google's structure:
1. Product-Based Definition: Organized into discrete divisions or groups that
concentrate on product areas. The goal of this system is to encourage competition and
creativity in the creation of a wide range of goods. An executive oversees each
section, including artificial intelligence and cloud operations. With the help of this
organizational feature, Google (Alphabet) can respond to consumer preferences and
market demands in fields such as information technology and consumer electronics.
With an emphasis on improving people's access to organized information, particularly
in the internet world, the structure complements the company's goal and vision.
Platforms and Ecosystems, Devices and Services, Advertising and Commerce,
Search, News, and Assistant, Cloud, Artificial Intelligence, and YouTube are
important product-based categories. This calculated strategy puts Google in a position
to satisfy present and future market demands while adhering to its mission and vision.
2. Function-Based Definition: Google's organizational structure is defined by
functions, which classify processes and resources based on business functions. This
includes divisions headed by executives, such as Global Marketing and Finance. At
Alphabet's corporate headquarters, these functional groups play a critical role in
making organizational-wide strategic choices. They impact business processes, such
as communication channels and strategic management to solve issues at various
organizational levels, and they have an impact on Google's (Alphabet) operations
management methodologies. Within Google's organizational structure, prominent
groupings based on functions include Global Affairs, Marketing, Business, Corporate
Development, and the Office of the CEO. The company's various business units may
effectively coordinate and make decisions thanks to this organizational feature.
(Smithson, 2023).
3. Flatness: The flattened hierarchy of Google's organizational structure minimizes
vertical lines of authority and communication. Because of its flatness, middle
management is obviated for non-essential communication between staff members,
teams, and groups and higher management. This function encourages productive
meetings and information exchange amongst various departments inside the company.
(Smithson, 2023). The creation of innovative products for business diversification is
made possible by Google's flat organizational structure, plays a major role in the
company's innovation. This flatness can also be defined as a team-based management
style in which staff members actively participate in decision-making because they feel
that their opinions have a direct impact on the company's success. The organization
prioritizes intellect over seniority, allowing staff members and higher management to
communicate openly. This strategy promotes creative information sharing among
employees (Cuofano, 2021).
Recommendations for Organizational redesign using the Star Model
The Star Model consists of five areas that need to be linked and coordinated to effectively
affect the actions and behaviors of the organization with respect to an organizational redesign
due to a new technology advancement. The business model is positioned at the Centre of the
star to serve as the "Centre of gravity" that unites the five sectors (Janse, 2019).
These five segments consist of. Strategy, Structure, Process, Rewards and People.
1. Strategy
Current Situation: Platforms, Devices, Ads, Search, Cloud, Artificial Intelligence, and
YouTube are just a few of the items that Google strategically focuses on (Cuofano,
2021).
Recommendation: Establish a specialized task force tasked with investigating and
integrating the new technology throughout pertinent product lines to harmonize the
organizational plan with the new technology.
2. Structure
Current Situation: Google prioritizes innovation and competitiveness through a
product-based organizational structure (Smithson, 2023).
Recommendation: with Google already practicing a cross-functional structure where
teams work together on the integration of the new technology. These teams should
consist of personnel from various product areas. This guarantees knowledge sharing
and a comprehensive approach.
3. Processes
Current Situation: Although Google is renowned for its agile procedures (Smithson,
2023), incorporating the new technology would require specific frameworks.
Recommendation: Apply agile approaches, such as Scrum or Kanban, that are
customized to the needs of the new technology. Encourage a culture of quick
iterations and ongoing improvement.
4. Rewards
Current Situation: Although Google has an existing rewards Programme, it must be
adjusted to ensure that new technology is successfully integrated.
Recommendation Implement performance indicators linked to the new technology's
efficient application. Acknowledge and thank the teams that make a major contribution to
its effective execution.
5. People
Current Situation: Google promotes direct communication with high management and
appreciates intelligence.
Recommendation: Give training programs top priority in order to improve staff members'
proficiency with the newest technologies. Establish channels of direct connection with
staff members at all levels to get their perspectives.
Summarily, Google needs to organize a thorough training Programme that highlights the
significance of the new technology and how it fits with Google's strategic objectives for
staff members in all product groups. This is to guarantee a cooperative and integrated
approach to integrating the new technology into Google different product lines, while also
forming a specialized task force with personnel from diverse product groups.
References
Cuofano, G. (2021, March 29). Google Organizational Structure In A Nutshell. FourWeekMBA.
https://fourweekmba.com/google-organizational-structure/
GlobalData. (2023). Google LLC Company Profile - Google LLC Overview. Www.linkedin.com.
https://www.globaldata.com/company-profile/google-llc/
Janse, B. (2019, September 2). Jay Galbraith’s Star Model, a powerful strategy tool | toolshero.
Toolshero. https://www.toolshero.com/management/jay-galbraiths-star-model/
Smithson, N. (2022, July 7). Google’s Organizational Structure & Organizational Culture (An
Analysis). Panmore Institute. https://panmore.com/google-organizational-structure-
organizational-culture
Smithson, N. (2023, October 6). Google’s Organizational Structure & Its Characteristics (An
Analysis). Panmore Institute. https://panmore.com/google-organizational-structure-
characteristics-analysis