Google: Organizational Factors And Management Practices

Social Dynamics of Organisations

Group Project Report

The Culture of Innovation in Google

Group Member

Chan Chi Chung 150068642

Chan Yau Shing 150008878

Chan Wai Hung 150509661

Content

Introduction

The topic of this report is

“Select an organisation that has a longstanding record of innovation. Assess what organisational factors and management practices are facilitative to its innovation process. Use examples to support your analysis.”

We decided Google is the organisation that we will focus on. It is believed that Google is the one of the best organisation of innovation in the world. The products of Google are affecting the world. It definitely has the reputation of longstanding record of innovation. To analysize the culture of

It maintain the spirit of innovation over the time. The culture of innovation in Google is the key that make it success. It is not only about the organisational structure, but also the understanding of innovation. It allows people with different academy background to work together for innovation.

Organisational Factors

Matrix Organization Structure is applied in Google. Matrix Organization has the adventages of both functional and project organzation. Basically, Google is grouping employee in terms of function. However, considering the projcet development, the employees will be grouped as on group focused on the product. For example, in the Nexus device development team, the group members consist the Engineering team and Product Design Team. It is beneficial for the projcet because it allow people in different aspects to share the ideas.

Moreover, the flatness of the structure is one of the elements in the company. Flatness structure means that the employees are able to bypass the middle management. The employees are not necessary to obey the authority in Google. It can create a rapid communication inside the company. The boundary of the group will not limit the oppotunity for the employees to share informaion and

70/20/10

70/20/10 is the percentage of the resources distribution in Google. There is 70 % for core business; 20 % for emerging products that had early success; 10 % for new things with high risk of failure.

70/20/10 is important role in innovation, it is because the 10 % resources distribution is appropriate for new things inventing. 10% is not much resources, but it also not little rescourse. There are two main advantages from 10% resources distribution.

Firstly, it is helpful in cost management. If Google invest too much resources in new product, it will difficult to suspend the product which is failed. it can ensure that not too much resourse will not put into the fail product. Another advantage is exciting the employee potential. The limited resources can excite the employee to invent the successful product by using the less resources. The innovation in limited condition become the culture in Google.

b. 20%