A STUDY ON ORGANIZATION CHANGE AT GOOGLE

Introduction:

In this report, I have discussed about management of the organization change in a

company. The report gives a clear picture on why the organization needs the change? How does
it work out? What are the Benefits of change? What is resistance to change? How to overcome
the resistance?

Google Inc. recent made a leadership change in China, I have discussed on how the
leadership change brought an organizational development at Google.

Ref: Organizational Change and Development, Book by Gene W. Dalton, Paul R.

Lawrence; Richard D. Irwin, 1970. 393 pgs. at 8:00 am on 19th Dec. 2009

Organization change is a change in organization from its current state to the desired state
for the development of the company, and/or due to other external forces like political,
economical and social.

Chang
e

An organization can make any of the four kind of changes listed below:

• Change in Process

• Change in System

• Change in Structure

• Change in Functionalities

Ref: Bringing Life to Organizational Change, “Journal for Strategic Performance

Measurement”, April/May 1998, by author Margaret J. Wheatley & Myron Kellner-
Rogers - at 8:15 am on 19th Dec. 2009
 Task – 1

Background of Google:

The Google’s domain was setup during the year on Sep 15th 1997. And initially the
server was used by Stanford itself as google.standford.edu. . And on 4th Sep 1998 the company
was incorporated as Google Inc. Patent being a pre-requisite for goggle as other company’s it
was Lawrence who was declared as inventor and the patent was given to Stanford on 4th Sep
2001.

Ref: http://www.rinf.com/news/nov05/googlefacts.html - . at 8:30 am on 19th Dec. 2009

Key ingredient of Google’s Growth:

Google has attained growth in short period for which the loyal users have contributed
more. Loyal people always contribute towards growth of a nation and companies are not
exceptional in these cases. Internet usage was increasing day by day as well as the internet users.
When an individual sits in front of the computer and starts browsing he aims at search and
retrieval of information in a short span of time and that was all goggle doing these loyalty made
goggle to grow in a short Period.

Ref: http://www.google.com/about.html - . at 8:35 am on 19th Dec. 2009

Google Products:

 Chrome

 Desktop

 Earth

 Gmail/Google Notifier

 Pack

 Sketch – up

 Picasa

 G- Talk

 Secure Access

 Photo screen saver

 Pinyin

 Visigami

 Quick Search Box

Ref: http://www.google.com/about.html - . at 8:40 am on 19th Dec. 2009

Strengths and Weaknesses of Google:

Strength

 First and foremost strength is its own brand name.

 It provides useful mobile versions of its applications while helping carriers sell handsets
and bigger data plans.

 Google is famous for its unique amenities and offices. Also it has built a reputation on
innovation and customer service.
  Due to presence of more loyalty customer, it is to be expected to increase new users in
future.

 It is attractive, is easy to use and lends itself to publishing or providing informative to

anyone interested.

 Precious time of the user is saved by watching all criteria at a one picture.

 Google has tight competition with Microsoft, Amazon, Yahoo and other software
companies also. And the close competitor is Microsoft. Thus this competition is one of
the competitive threats for Google.

 As it is challenging Microsoft since from the entrance of Google

The above covers all sorts of means to show Google as “big”

Ref: http://www.thinkingmanagers.com/management/strengths-weaknesses.php . at 8:52

am on 19th Dec. 2009

Weakness

 Some of the users come across that it’s very difficult to find the exact links which used
for and how to assess.

 It makes confuse to the uses by exploring more new links and it end with user’s irritation

 Strategies which used were focused to attraction and not to make user free.

 A poor report has been given in financial services, real-estate and other categories, so
market analysts have given week report.

Google is good in search for ads, but other products have to consider for its success. So
that it can face the competition and meet the customers.

Ref: http://www.samizdat.com/google.html . at 8:45 am on 19th Dec. 2009

http://www.thinkingmanagers.com/management/strengths-weaknesses.php . at 8:52
am on 19th Dec. 2009

Organization Change at Google (Background of Change)

 Every organization is expected to get change over once at least in three years. Similarly
Google China is the World class engineering organization of Google which is working for China
and all the economy. This organization is leaded by Dr. Lee who is President of Google and VP
of Engineering.

On 4th Sep. 2009 in Beijing, announced a change in the leadership status of the company.
Presently the leaders of the company are as follows,

• Dr. Kai Fu Lee – President of Google and VP of Engineering

• Dr. Boon-Lock Yeo - Director of Google Shanghai engineering office

• Dr. John Liu – Head of Google sales team in China

• Dr. Alan Eustace – Senior Vice President

• Dr. Nikesh Arora – President, Global Sales Operations and Business Development

As Kai-Fu decided to leave the company shortly, Google faced a change in Leadership as
follows,

 Dr. Boon-Lock Yeo has taken the responsibilities of engineering of Google in China

 Dr. John Liu has taken the post of Vice President of Sales and Operations, and also he is
responsible for Dr. Lee’s business and operational responsibilities.

Ref: http://news.brisbanetimes.com.au/breaking-news-world/china-must-show-
leadership-on-climate-change-eu-20091130-k0mp.html . 12:05 am on 19th Dec. 2009

Dr. Lee’s period of leadership is appreciated able, because he has made the drastic
change in the advancement of search quality, product offering and business strategies of the
company. He is who launched Google’s China domain product called Google.cn that has got
fame in China and the user base is also increased in two years of period.

Ref: http://www.cn-c114.net/579/a441957.html - . at 11:45 am on 19th Dec. 2009

Lee also helped to launch number of products like Google Maps, Google Mobile search
and Google Translate, etc. and recently he launched Google Music search, which is leading in
Ad-supported music site. Thus for the success of Google Dr. Lee has played a vital role in the
organizational Development, driving the organization to the Growth factor in the economy.

Alan Eustace commented Kai-Fu that being a President he has made enormous
contribution to Google in the past four years of period. They improved the quality and range of
service of Google China. Alan also said it is sad that Lee is leaving the company, at the same
time Boon Lock was playing as a head of Shanghai Office and it is sure that he will do great job
in this endeavor.

Ref: Article: Managing Innovation: Integrating Technological, Market and

Organizational Change, 3rd Edition. (INFORMATION RESOURCES: New Books and
Reports For Leaders of Technological Innovation), Article from: Research-Technology
Management at 12:30 am on 19th Dec. 2009

Nikesh said Google China has seen steady growth in last two year and it is decided to
double the sales force size. It is hopeful that this innovation of product and engineering will
show the improvement in the business of China under John’s leadership.

Through Niche and Cost differentiation strategy Google has expanded the business
model. This is implemented by the leader ship of Dr. Lee. Google has captured 85 % of the
global market which is leading in the software industry apart from the competitor. Android OS
has gained tremendous market share, mobile phone, browsers, entertainment, online
collaborative tools, VOIP and code.

Ref: http://www.cn-c114.net/579/a441957.html - . at 11:45 am on 19th Dec. 2009

Journals of Business Communication, “Advice on Communicating During

Organizational Change”, Laurie K. Lewis, Amy M. Schmisseur, Keri K. Stephens,
Kathleen E. Weir - . at 12:12 am on 19th Dec. 2009

The reason for why the organizations need to change:

There are many causes that make the company to undergo an organization change.
Organization change may be imposed for the development purpose or as per situation criteria.
The reasons are listed below,

• To advance technology

• For the change in strategy

• Due to Government legislation/ initiatives

• To develop the organization values, behaviour and focus

 • To make competitive advantage through business development such as merger
acquisition, etc.

• Challenge posed by change in economy

• Challenge of growth, i.e. to expand the business in global markets

But in this case the change is made due to situation that Lee decided to leave the company.
Lee’s leadership is viewed excellent but it is expected that the change might bring a change in
the organization structure for its growth.

Ref: Organization development; the process of leading organizational change, article on

organization development, available in http://www.encyclopedia.com/doc/1G1-
199023182.html at 1:42 on19th Dec. 2009

Thatchenkery, Tojo. (2004). Paradox and organizational change: The

transformative power of hermeneutic appreciation. Advances in Appreciative
Inquiry. Volume 1, 77-102. at 1:50 on 19th Dec. 2009

Change Process:

This change process involves three concepts namely restricting force, driving force and
movement.

• Driving force: Driving forces are the forces which are favorable to move toward the
organization change.

• Restricting forces: It is the force which hinders from moving to the desired state.

• Movement: Movement is the transfer from one state to the other

Restricting Forces

Driving Forces
Ref: Organizational Change and Development, Book by Gene W. Dalton, Paul
R. Lawrence; Richard D. Irwin, 1970. 393 pgs. at 3:26 pm on 19th Dec. 2009

Organizational Development:
 According to Burke Organizational Development is defined as “Planned process of
change in an organization’s culture through the utilization of behavioral science technologies,
research and theory”.

Organizational Change is a part of organizational development, because in order to make

development. It is one of the approaches used to bring the change the improvement in the
organization effectively.

The system should have two way communications with the employees and stakeholders.
Employees’ involvement with respect to implementation has also to be scrutinized frequently
and they should be encouraged to participate in the program actively and effectively. It suggested
to be practiced to overcome the resistance to change. The company also must follow the steps to
overcome the resistance to change as stated in the task 3. Mainly communication and
involvement of employees arise from the mismatch of the employer and employee opinions and
their level of communication.

Ref: ORGANIZATION DEVELOPMENT, the management of change, Robert H.

Rouda & Mitchell E. Kusy, Jr. at 4:25 pm on on 19th Dec. 2009

Organization Development and Change, Thomas G. Cummings,

Christopher G. Worley at 4:34 pm on on 19th Dec. 2009

The significance of organizational development in academic research libraries, Library

Trends, Summer, 2004 by Karen Holloway at 5:20 pm on 19th Dec. 2009

Task – 2

Various Models of Google:

 Google has come out with many innovative strategies and business models that worked
for its brand. Some of them are listed here for reference.

1) Google page is very simple and clear just with the logo and search box that is easy and
fast to load. This feature makes the user to go for search engine inspite of portals. Google
has made a good perception of how human eye and brain works.

2) Another key feature of Google’s business model is it came with many impressive
channels of great products which I have discussed above- Search engine, Google
chrome, Gmail, etc.

3) Long back Google introduced an innovative business model- Adwords - the pay per
click concept. This innovation worked and they proved their brand. This is one of the
main sources of revenue of Google.

4) Brand building is a business model/ strategy followed by Google which is important for
them than by just earning profit. The strategy is successful that contributed for key asset
in IPO at the NASDAQ.

5) Google innovated all these great products and business models; and delivered for free
million of users all over the world, and specifically Brand building is an outstanding
model that helped Google to reach the peak.

6) Google is very strong in marketing its products through ads it paved way for its fame
of all its products like blogger, You Tube, etc.

7) Google ensures atmost harmony with client and customer – relationship building is one
of the business models which ensure a frequent interaction with the public.

8) Google has a good market in stock exchange. In 2004 it sets the share price as $85, many
analysts felt it is excessive and of unreasonable value. But the shares reached top, by
 2007 the share price raised to $700. In Nov. 2007 its stock market capitalization reached
$230 billion and annual revenue increased to $16 billion and Profit as $4 billion.

Ref: http://itmanagement.earthweb.com/article.php/3801006/Googles-Business-
Model-YOU-Are-the-Product.htm at 8:32 pm on 19th Dec. 2009

http://www.quickonlinetips.com/archives/2009/12/google-model-your-town-
competition/ at 8:45 pm on 19th Dec. 2009

Innovated Model:

Google's goal to make their targeted ads at least as relevant and useful to users as the
search results themselves.

By perfecting the nature of targeted ads, Google not only has created a highly effective
revenue generator and also it produces better experience for the users.

Ref: http://www.google.com/intl/en/sketchup/3dwh/help_model_city.html at 10:52 am on on

20th Dec. 2009

Google and its competition:

Microsoft is well known for Windows and other operating system. One fine day Google
announces new Operating system name Google Chrome. Since the entrance of Google into the
market it is a challenger for Microsoft till date.

Google and Yahoo, both are popular in search engine, but still Google dominates all the
companies including Yahoo. Google's position on the Web is solid. According to the analysis
firm Efficient Frontier, Google held 76 percent of the search engine advertisement market in the
third quarter of 2008. Gmail, Google's Web-based e-mail, grew 43 percent from 2007 to 2008

Google is owned with user interface and database system with URL fetch and mail
service where as yahoo is sharing user interface and not owing any database. Google Gmail they
are popular in browser and email programs where as in Yahoo has many user interfaces like
REST & SOAP API’s and HTTP, BitTorrent.

Microsoft is a tight competitor for Google with regards to Operating System but still
Google is having the competency and it is nearer to meet the height of market with competition
to Microsoft. Windows is the mean for Microsoft to make revenue and though they stranglehold
legendary. But yet Window Vista not proved.
 Ref: http://www.waveprotocol.org/draft-protocol-specs/wave-conversation-model at 11:12 am
on on 20th Dec. 2009

http://www.rinf.com/news/nov05/googlefacts.html at 10:25 am on on 20th Dec. 2009

System to make the stakeholders and others to involve in the change:

To make the employees to employees to involve in the organization change, the company
has to frame the system as follows to make the stakeholders and others to involve in the change.

The system should have two way communications with the employees and stakeholders.
Employees’ involvement with respect to implementation has also to be scrutinized frequently
and they should be encouraged to participate in the program actively and effectively. It suggested
to be practiced to overcome the resistance to change. The company also must follow the steps to
overcome the resistance to change as stated in the task 3. Mainly communication and
involvement of employees arise from the mismatch of the employer and employee opinions and
their level of communication.

Ref: The relational healing dimension of organizational development: Transformative

stories and dialogue in life-cycle transitions, Gurudev S. Khalsa, David S. Steingard at
1:36 pm on 20th Dec 2009.

Market of Google

The concept of market orientation suggested that organizations should focus on the
markets that/which they serve. Google is owing user interface and database system with URL
fetch and mail service where as yahoo is sharing user interface and not owing any database. In
Google Gmail they are popular in browser and email programs where as in Yahoo has many user
interfaces like REST & SOAP API’s and HTTP, BitTorrent.

Google’s employees confirm what Google perks and benefits is reported in the culture
audit, with 95% of the employees who responded to the employee survey part of the best
companies evaluation process saying.

A European study recently determined Google to be the number one most recognized
worldwide brand. Indeed, Google has become a verb ("I can't wait to get home and Google him")
which poses real challenges to a company seeking to protect the strength of its mark.
 Ref: Leadership & Organization Development Journal, ISSN: 0143-7739
Incorporating: Participation and Empowerment: An International Journal – at 1:24 pm
on 20th Dec. 2009

Task – 3

Model of Change:

Kotler have suggested the 8 step model of organization change for any kind of company that
undergoes the change process. They are,

i. Increase Urgency:

When the urgency comes for the company with situation to change the process, structure, job
roles and responsibility, design, business, etc. in such case the organization has to made quick
decision to make the change.

ii. Build Guiding Team:

The next step is to build a guiding team that support the action related to the change
management. The events of change management should be well developed by the organization
without time delay. The events have to be authorised under the responsibility of the guiding
team.

iii. Get vision right:

The company starts up with vision but when the time goes after years the leaders or company
may decide to advance the vision or mission statement that improves the company performance
in such case the organization have to make such changes. So the vision make the company more
focused on the economy of the company.

iv. Communicate to Buy-in:

Kotler says that the fourth step is to communicate to buy-in in the sense; the company and the
team member have to be arranging to facilitate the communication facility inside the
organization that facilitates the buy-in process.

v. Empowerment action:
The team and the members have to work with synergy to bring the action of change to success.
The company must support the entire environment to empower the action of change in all means
and forms.

vi. Create short term wings:

The organization must frame a short term wings of action that drives the entire factor favoring
the change process.

vii. Don’t let up:

The organization must encourage the existing process, ongoing process and the process that is
expected to occur in the future.

viii. Make changes strict:

When the change is let to be flexible than the restricting factor may plays a vital role to hind the
changes to happen so the company must make the change as strict.

Ref: Organizational Change and Development, Book by Gene W. Dalton, Paul

R. Lawrence; Richard D. Irwin, 1970. 393 pgs. – at 2:35pm on 20th Dec. 2009

Making Sense of Organizational Change, Book by Jean Helms Mills; Routledge,

2003. 244 pgs. – at 2:46pm on 20th Dec. 2009

Community Action and Organizational Change Image, Narrative, Identity, by

Brenton D. Faber . – at 2:52pm on 20th Dec. 2009

Resistance to change:

According to Kotler there are ten points of resistance to change that occur in the company
that make a change in the organization. In other words the restricting force that hinders the
changes is as follows:

 No organization can stand still without change at the same time changes are risky enough
than to stand so.

 The staff and other people feel comfortable to communicate with other and to stay
connected with the existing practice and this restricts them to change further.

 The people have no role model for the new activities

 The staffs fear that they lack the competencies to change and adapt with the upcoming
environment.
  The company and staffs may feel that they are over loaded and over whelmed.

 They have a good practice of skepticism and to be sure that the new ideas are sound.

 They fear on changes that it may bring them uncomfortable.

 When the change is made restrict the people are also supposed and forced to change this
brings them notation.

 The people feel the loss of status.

 The people when forced to change this created a bad opinion to get change positively.

Ref: ORGANIZATION DEVELOPMENT, the management of change, Robert H. Rouda &

Mitchell E. Kusy, Jr. . – at 3:12pm on 20th Dec. 2009

A new horizon for organizational change and development scholarship: Connecting planned
and emergent change, Reut Livne-Tarandach, Jean M. Bartunek. – at 3:15pm on 20th Dec.
2009

Types of Resistance:

There are two types of resistance to be considered by the organization:

• Resistance to the content of change and

• Resistance to the process of change

Ref: Research in Organizational Change and Development. – at 4:25pm on 20th Dec.

2009

Overcoming resistance to change:

According to Kotler and Schlesinger, some of the points to overcome the resistance to
change are as follows.

i. Education and Communication:

It is the company’s responsibility to educate the employees to make them know why the
organization is said to get change. This gives them a clear idea and feels better of the change.
The employees will understand that the change is not forced to them and it is of certain to
happen. This makes them to adapt to the change.

ii. Participation and involvement:

 When the employees are made to participate and involve in the organization change
management then obviously they make up the mind that it is of their responsibility.

iii. Facilitation and Support:

The company has to empower the driving force that motivates, facilitates and supports
them to drive towards the change.

iv. Negotiation and agreement:

The company can further make negotiation of pays or agreement on benefits with the
trade union that lets the management to undergo the changes.

v. Manipulation and co-option:

For the organization change must happen certain manipulation has to be made in the
system, policies and procedure that let the management to undergo the changes.

vi. Explicit and implicit coercion:

The change must be strict but the employees must be made to understand the reason to
change that wont force a negative impact on them.

Ref: Foreman, Joel., & Thatchenkery, Tojo. (1996). Filmic representations for
organizational analysis: the characterization of a transplant organization in the
film Rising Sun. Journal of Organizational Change Management, 9, 3, 44-61. . – at
3:25pm on 20th Dec. 2009

Thatchenkery, Tojo. (1992). Organizations as "Texts": Hermeneutics as a model

for understanding organizational change. Research in Organization Development
and Change, 6, 197-233. . – at 3:35pm on 20th Dec. 2009

Two way communication:

The system should have two way communications with the employees and stakeholders.
Employees’ involvement with respect to implementation has also to be scrutinized frequently
and they should be encouraged to participate in the program actively and effectively. It suggested
to be practiced to overcome the resistance to change. Mainly communication and involvement of
employees arise from the mismatch of the employer and employee opinions and their level of
communication.

Ref: Journal of Management Development, ISSN: 0262-1711 at 4:05 pm on 20th Dec

2009
 Journal of Organizational Change Management, ISSN: 0953-4814 at 4:10pm on 20th Dec
2009

Conclusion:

These are about the Google’s change of leadership. From this I would like to conclude
that the organization has attained its success with the help of great leaders of it and with the
variety of products and business units. For further development it is said to have changes as said
in the report. Dr. Lee is a good contributor for the success of Google China and its globalised
market but yet the change of leadership is expected to make the organization to be more focused.

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