Introduction
Google is one of the most prestigious organizations in the world, and it is the dream of many people to work there at one point of their life. Without dispute, Google has invented the way the world is accessing data (Jang, 2017, p.12). The company has a wide range of applications and tools that help customers use daily, from its Google drive and Google Search Engine to carry out various operations. Google became Subsidiary when it named itself Alphabet in 2015 to improve on various aspects. By becoming Alphabet, Google to expanded its domains which is made of internet search and advertisement to become a giant technological conglomerate firm. Additionally, Google is able to run with lesser risks of antitrust violations and it is easier to be able to account for the total income stream from different domains and subsidiaries.
Problem Statement
Operating Google systems and platforms require proper care and measures to be put in place. Using a subsidiary will optimise all the operations of the company and increase the overall efficiency. Many companies fail to succeed when they are overwhelmed by minor operations. Minor activities which contribute to the overall success of the company are overlooked in turn resulting to great failure. This research will assess the impact of Google to allocate its activities to Alphabet as its subsidiary company. Additionally, this research will relate various management theories which include: Corporate Cultures theory by Elliott Jaques, Force-field theory by Kurt Lewin, three-stage change process theory by Kurt Lewin, Eight-stage Change Process Theory by John Kotter:, Elisabeth KĂźbler-Rossâs Change Curve Theory, John Kotter, and Rosabeth Moss Kanteâs theory on to the Success of any company.
Google Organization Change
Change is a significant aspect of any growing company, and it is through this process excellent results will be met. On Aug, 10 2015, CEO Larry Page made an announcement of the new corporate plan that separated all the core businesses from the more experimental ones which include; venture capital and health care project. Splitting the company to the subsidiary will allow Google to focus while pursuing its ambitions on other greater innovations and stable projects (Jang, 2017, P. 4).
Restructuring was meant to help the company reduce the overall risk, while at the same time maximising output from the minor projects. Consequently, Google recorded a noticeable financial win, as stock prices had risen by nearly 85 %. These side businesses become gangbusters, with great revenue that is more than $ 13 billion annually (Zenger, 2016, para. 4). The minor projects get the much needed attention that make important aspects of the company prosper. Google has benefited in many aspects through this involvement, as more investors are adopting these minor projects that could lack meaning.
The Major Changes
Google and Alphabet operate independently financially, with independent management and operations. Both have their own CEOs who have independent business goals and manage the budget allocation. With this strategy, each company can work on its own without the interference of the other. The executive team at Alphabet can make its own decisions without consulting Google. Decision making is an important aspect of any business as it will determine the fate of company.
Currently, Bet has the greatest potential compared to Waymo that is the companyâs driving force. Stanley Morgan is estimated to be worth $175 billion, in the next decades, it will be increase its base. Google hardware division got a boost when Alphabet spun into the smart-home sector (“Why Google Became Alphabet“, 2021, para. 5). Under this division, Alphabet has managed to make computers, phones and family speakers. Consequently, this innovation has improved the overall production of hardware that has a huge market worldwide. Telecommunication Companies growth relies on innovation, with alphabet, Google is able to venture into vast products that would are regarded as high risk.
Google introduced some products were not making sense, but with Alphabet more focus has been put there. Devising and managing risk has helped Google in to solve the incubator Jigsaw regarding internal geopolitical challenge with DeepMind and Tech that caused confusion in the Googleâs Cloud business (“Modify the organizational structure – Google Workspace Admin Help”, 2021, para. 6).
Google was able to streamline its operation to fit this vital requirement. According to Hatch, all employees have to participate in a company’s organization change training to successfully integrate Google into Alphabetâs organizational structure. Therefore, Alphabet has a model that encourages all employees to be participants and not observers. The staff feel contented with the existing working environment, which in turn promotes better promote productivity. In a good company environment, all the stall should develop care for each other, to promote team work. The employees should be given a proper platform to maximize their productivity.
Theories and Concepts to Organizational Structure
The success of a company relies heavily on the strategies that have been put in place to drive its goals. With various management theories, appropriate concepts that surround management that may include tools like guidelines and frameworks that can be implemented in companies like Google (Deline, 2016, p. 30). Generally, professionalism do not normally rely on the management theory alone, but will introduce various concepts from different theories that use the company structure and workforce.
The financial reports that are made through this method of ratio analysis show the sum of some key relationships which are used to increase the financial performances. This process has helped the analysts working in Alphabet to derive the judgements that are quantitative about the performances based on finance. Amazon has always used the comparison of their past ratios and the probable future ratios to understand their strengths and areas where they need to focus. The following are some of the theories that can be applied in this situation:
Corporate Cultures
Under this theory, behaviors and beliefs determine how the organizationâs management employeeâs handle and interact outside the business interaction. It normally implies that the norm is implied, developed and not expressly defined from the peopleâs cumulative traits (Innes, 2016, p. 16). Google has its own way of operation that is regarded as efficient and this must be transferred to Alphabet. Alphabet has a good staff management approach, but some employees did not fully understand the company vision, as some of them were moving with the flow without caring on vision and services to humanity meant. The company also was focused on bettering its profit levels; this was their major concern as they wanted to go back to the well-known company it was before. Therefore, it is hard to offer services and also work on improving Alphabet financial status.
Force-Field Theory by Kurt Lewin
This theory is used to distinguish factors in the organization that drive a person away or towards the desired state and those that oppose the driving force. Alphabet has its own ways of operations, and it relies heavily on these strategies put in place to better its position in the market (“Lewinâs Force-Field Theory of Change – Research Methodology”, 2018, para. 9). Innovation and improvement are a driving force for Alphabet that has helped the company to develop new products that drive the company to great. The management evaluated their strategies through trial and error, that is, by implementing them and gauging the results; for instance, the emphasis on hardware production made Alphabet increase their profit.
Three-Stage Change Process by Kurt Lewin
Lewin created a change model that involves three steps; changing, freezing, and unfreezing (Burnes & Bargal, 2017). The change process entails creation of the perception that the change is required, required behaviors, teamsâ norms and the driving force for the organization. Under this approach, merging Alphabet and Google has improved the productivity of the whole organization. With its own leadership, Alphabet is able to establish the right approaches that are pushing for the growth of the company, and the overall goal of Google.
Eight-Stage Change Process by John Kotter
This theory creates a sense of urgency, recruiting of powerful leaders, building the right vision and effective communication, removal of obstacles, creation of fast wins and building the companyâs momentum. Working with a mega company like Google has a lot of demands, and a subsidiary must increase its operations to meet the demands of the company. After this merging, Alphabet had to adjust its operation and culture to make all its operations a success. They also assessed the number of new customers coming to get services in their company; this helped them gauge their position in the market (Kotter & von Ameln, 2019, p. 20). The indicators they measured were revenue growth; an increase in revenue showed that the company was doing its best, aiming to make additional profits.
Change Curve by Elisabeth KĂźbler-Ross
The term Change curve is derived from Kubler-rose that derives the internal emotion of the individuals when dealing with transitions and changes. Alphabet has its own ways of operation, by merging with Google it has to change some of its culture and values. The employees at this organization had to adjust their way of operation to fit in the demands of the newly merged company (Malone, 2018, p. 50). With this union, many can find it difficult to find the new ways, as the culture might contradict with the existing one.
Why Change Fails? by John Kotter
Kotter suggested eight errors that might happen during the transition journey. There is a lot that must change to help the operations of the company a success. Without the right strategy, many companies fail to live up to the expectations due to poor decision making. By Google becoming Alphabet, operations of Alphabet which is much smaller than Google could be affected. Therefore, without the right approach many strategies will fail to meet the expectation.
Change Culture by Rosabeth Moss Kanter
According to this theory, all employees have different behaviors that are based on the structures support the system put in place. The power is derived from the informal and formal sources. The staff need to access the needed resources to meet the companyâs goals according to Rosabeth Kanter. Without the right resource, these changes cannot take place. Google is big company, with its input, the development of the company relies on these approaches (Malone, 2018, p. 40). The company encouraged its employees to promote quality care than their love for money; hence their decisions were based on fellow humans, not the need to be a profitable company.
Concepts of Change Management and the Role of Management
Every good business is supported by a strong financial management system. Alphabet has not been an exception. They have worked on strategizing the financial management system which makes sure that all the stakeholders of Alphabet understand how good the organization has planned and has been using the financial resources that they have (Pedrosa et al., 2021, p. 90). There are some techniques that are involved while planning the management involving finance. Alphabet has got some strategies that work well for them while they are planning the financial management.
Concepts of Change Management
There are various techniques and methods for management, evaluation and changes in the organization that took place. With an elaborate and diverse options for guiding and understanding the culture of the organization. Alphabet bases on decision repertories due to its complexity. An appropriate structural framework like the scenarios tends to lead to bad decisions and decisions. There was complete redesigning of the leadership style and the changes to be implemented (Hansen & Clausen, 2017, p. 12). Basing on Alphabet, as Google had to change its organization structure to become Alphabet, there were many adaptations to fit in the investorsâ demands and the new market set up. This is case of Google becoming a paradigm of how big companies adapt its organization procedures, chars and goals to the changing environment.
Management change is termed as process, art skill and purpose of improve the organizational performance. The management running Alphabet has taken up a complete management structure that allows them to carry out its operations with efficiency. The success of implementing their dependence on the theoretical body that includes Lewinâs change theory, the process based changes, staff management and organizational development. Alphabet remained independent but it is kept some aspects of its operations.
Therefore, with the new organization and decentralization of power, those in charge could be in touch with clinicians and help achieve their goals through the providence of quality care. The company also wanted to make enough profits to broaden its services in the area; therefore, with financial and profit managers’ introduction, this goal would be easily achieved. Consequently, happy employees are more productive since they were happy with the new structure; they would work hard and help people more as this was Nova Care’s objective.
The Role of Management
Every company has a leader running every operation of the company, the decisions, and strategies. The founder plays a crucial role in dictating the operations and activities of the company. Any firm’s success relies heavily on the level of leadership and management in place, especially reading the decisions and strategies used. Leadership is critical in setting the right measures to allow the company to attain its short term and long-term goals. It is also essential to manage all the processes well to help the company keep in track with all its objectives and targets (Nkor, 2020, p. 123). It is the managerâs responsibility to determine which approach is right and decide to expand or reduce the company’s functions. An open-minded CEO will allow the other staff member to establish and make choices for the company. However, they need skilled managers who will set up the right strategies for their companies.
However, the CEO of Alphabet needs to make the final decision to make sure the options made are within the company’s long term goal. There is need to make such decisions fast to make the company’s activities efficient. Not every CEO is a manager, hence they need help from a specialist (Nkor, 2020, p. 123). Every company needs a top manager who will determine which goods or products best suit the company’s growth. They have the required knowledge to establish an ideal price of good after a thorough assessment of the market. Therefore, Alphabet must recruit a skilled manager to achieve this goal. The decisions they make might be the reason the company fails or succeed in its operations.
International Management from a Cultural Perspective
It is always a dream of any company to get international, and through this, they will be able to get more clients. Various services like global trade, technology, tourism, cultural diversity, and international governance services are fundamental to its development. These services are needed internationally by various parties to help them get more clients. It is always challenging to break into the international market as the company will receive a lot of competition and incur many costs to make it happen. Google is already an international company, and joining Alphabet will help it diversify its operations. They allow international clients to get the products of their clients through marketing.
Adaption to International Environment
A company’s structure is influenced by strategy, the environment, or what the company deals with and its experiences; these factors help a company develop an organizational structure favorable to it for success and financial gain. Also, he talks about the most successful organizational structures, for instance, the divisional (diversified) organization used by Alphabet Company. Googleâs teaching is that when organizations split duties, including leadership positions, their work becomes more efficient as people are conversant with the hierarchy and are aware of their responsibilities. Therefore, Alphabet advocates for decentralization of power in an organization to ensure employees’ inclusivity and better performance. According to Weber, when employees become more involved, they love their jobs and are more hardworking and dedicated to enhanced results.
Alphabet management evaluated their strategies through trial and error, that is, by implementing them and gauging the after results; for instance, the emphasis on speech therapy made them increase their profit hence ensuring they had qualified therapists and equipment for the job. They also assessed the number of new customers coming to get services in their company; this helped them tell whether they were doing the right thing. The indicators they measured were revenue growth; an increase in revenue showed that the company was doing its best, aiming to make additional profits. Also, the increase of qualified clinicians interested in working in the company helped them realize that the strategies they had implemented were bearing fruits.
Impact of the Strategic Approach to HR
It is important to handle all the company’s concerns with efficiency to bring job satisfaction in the workplace. HR Planning, Staff Recruitment, and Managing Performance are critical for every human resource department’s success. Every employee loves to work in a place the management appreciates them. HR office should offer proper planning to establish a proper strategy for the company, especially in handling various issues. Google strives to employ high-quality staff to their teams and monitor their performance. The efficiency of the HR department plays a very role in improving the wellbeing of all staff (Cole, 2017, p. 123). This company’s success relies heavily on the effort the Human resource team is putting into making every staff member efficient.
HR Planning, Recruiting and Managing
These three aspects, HR planning, staff recruitment, and managing performance for Google, will be discussed. Failure to handle these challenges will negatively impact the company’s overall growth, and it is important to solve them fast. HR department at Alphabet must have an intradepartmental plan that will start the alignment of functions within the company. However, regardless of the project, the HR must manage the organizational large scale operations (Cole, 2017, p. 10). The HR professionals should align the service concerning every aspect of the plan, irrespective of whether the program doesnât explicitly address the human resource issues. Every stakeholder must play its role in ensuring the overall objective of the company is attained at all time.
According to a recent SHRM research, the HR managers foresee the important challenge workplace like the retirement of a large number of staff members, mothers on long term maternity leaves, a rise in the cost of the health cost and increased demand of the life/ work balance (“SHRM – The Voice of All Things Work“, 2021,para. 6). It is easier for an organization to meet its objectives with talented employees who can grow and have a vision aligned with the organization’s goals (Werner, Anderson and Nimon, 2019). The purpose of talent management within Alphabet organization is to create a work-place culture that is motivated and will remain within the organization for a long time.
According to a student research, there is a need for a talented workforce to meet clients’ demand to serve their patron. Therefore, talent managers need to locate talent, interview and hire to place the internal and external applicants in those roles. With the desire to be successful in a competitive environment, businesses need to have a workforce that can execute the human capital strategy (Arifin, 2017, p.10).This can be achieved by investing in employees’ development and enrolling top talents within a career field, rewarding, and having a performance management task to continue being productive. For instance, if an executive seeks to produce next-generation smartphones, the recruiter will require top minds and top recruitment taskforce to provide top-line applicants with technology passion in the smartphone and interest that can edge over the competitor.
The management of talent is not an easy task because many organizations are trying to recruit the best talents, promote their best individuals to be part of their team, and revolutionize the industry. Therefore, they can be promoted, rather than only getting them in the house and hoping that they can sit on the bench and wait for their name to be called, they should take advantage of the benefits and possible incentives (Arifin, 2017, p. 12). If talented managers and high-quality experts are not challenged and given opportunities to develop with their current employer, their shell life is short. Google has manage to establish a proper recruitment plan to make the company successful. With the current international market, it is much easier to get diverse talent. Employing staff with diverse views and background has helped them to promote diversity in their work station. Employees embrace diversity, as they work with people from different backgrounds and beliefs.
Conclusion
The move for Google to become Alphabet has helped its boost its revenue generation on many ways. Intentional companies need the right strategies to attain the required goals and for the plan to be effective. The companyâs resources are strategically arranged in the global supply chain so as to ensure efficient production of high-quality products, vibrant marketing activities and top notch customer service practices. HR Planning, Staff Recruitment, and Managing Performance are critical for every human resource department’s success. Every employee loves to work in a place the management appreciates them.
All these activities ensure that Google maintains its high reputation as an industry leader in this sector. Google has reduced the risk associated with investing in high risk projects that are key for the success of the company. By becoming Alphabet, it has generated more venue from different products like clouding and hardware that are termed as high risk. By applying the management theories, Alphabet has managed to exploit successful strategies against its competitors. Googleâs decision to become Alphabet will have long term and short term success. Alphabet is making great strides in the telecommunication sector with the right strategies in place.
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