Comparison of Google and Apple Corporate Cultures
Term Paper in Partial Fulfillment for
RES- 510, Research and Statistics
By
Most Nargis Fatema
IGlobal University
Taught by
Dr. Edward Stoker.
July 29, 2014
Contents
Abstract
This paper defines the concept of ‘cultures’ of organization and compare the cultures between two renown Organization, analyzes it with various tools like services, employment, stocks, and environ mental issues and studies some of its economic consequences. In turn, culture is defined as the stock of knowledge shared by the members of the organization. The acquisition of this knowledge is an investment. The paper is divided into four sections. First, it studies
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Reasons ranged from shareholder pressure for employee benefit reductions to the fact that many company executives would become instant paper millionaires. As a reply to this concern, co-founders Sergey Brin and Larry Page promised in a report to potential investors that the IPO would not change the company 's culture. In 2005, articles in The New York Times and other sources began suggesting that Google had lost its anti-corporate, no evil philosophy. In an effort to maintain the company 's unique culture, Google designated a Chief Culture Officer, who also serves as the Director of Human Resources. The purpose of the Chief Culture Officer is to develop and maintain the culture and work on ways to keep true to the core values that the company was founded on: a flat organization with a collaborative environment. Google has also faced allegations of sexism and ageism from former employees.
The stock performed well after the IPO, with shares hitting $700 for the first time on October 31, 2007, primarily because of strong sales and earnings in the online advertising market. The surge in stock price was fueled mainly by individual investors, as opposed to large institutional investors and mutual funds. The company is listed on the NASDAQ stock exchange under the ticker symbol GOOG and on the Frankfurt Stock Exchange under the ticker symbol GGQ1.
Google’s Employees
As of 2013, Google had 47,756 employees (in the fourth
“Culture consists of the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon. It includes the shared meanings associated with the symbols, rituals, and language. Culture combines the philosophy of the firm with beliefs, expectations, and values shared by members. It contains the stories and myths about the company's founder and its current leading figures. Organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish the organization from other organizations. An organization's culture determines how it perceives and reacts to the larger environment (Becker, 1982; Schein, 1996). Culture determines the nature
In this essay about managing culture in the post-bureaucratic era, I am going to argue how the practices of managing culture have changed in this era and how they differentiate oneself from the bureaucratic era. Furthermore I describe the cultural influences especially in organizations and how the importance of those influences changed over the time. In the first section I am going to explain the content of managing organization culture to get a first insight in the topic and to express the knowledge about the influences of the culture in an organization. In the next chapter I separate between two perspectives of the cultural organizations and explain which of the both are relevant for the assignment question. The next step of my
This is an analysis of the culture at IBM and the impact that it has had on their success. Corporate culture is significant in that it “influences the behavior of everyone within an organization and, if carefully crafted, can have a significant positive effect on organizational success” (Certo and Certo, 2006, p. 423). Louis Gerstner proved this at IBM during his tenure from 1993 to 2002 when he revived IBM by refocusing on their culture.
In the 1980’s business experts began to realize the root to organizational success or failure is through its culture. The culture of an organization is the belief that guides each employee in knowing what to do and what not to do and it also affect the public perception of the organization’s brand. Therefore culture is the shared social knowledge within an organization regarding the rules, norms and values (Colquitt, Lepine, & Wesson, 2012). Although, no two cultures are alike, there are components and characteristics that help business experts to define an organization’s culture.
From its start-up until the present, Apple’s corporate structure hasn’t changed a lot. Before his death, Steve Jobs was the one to make the calls regarding all the decisions; everything had to be passed through him. The company’s decision making processes were and still are centralized, in which the CEO makes all the decisions but it is incorporating more of a collaborative approach. The company is doing so by encouraging its hardware and software teams to collaborate. This approach however, never existed when Jobs was the CEO. Apple is considered a centralized company because it makes high capital investments that encourage centralization. It is highly competitive, offers high technology products, has a homogeneous product line, low product diversification, and has a lot of experience doing international business. Furthermore, it is organized on different basis; functional, divisional and geographical. Its functional structure is that the innovations and visions essentially come from top management and flow down the organization. Top management includes the board of directors in which they oversee and ensure that shareholders’ interests are being served for a long-term. Also, its functional structure is departmentalized and includes marketing, engineering, manufacturing, financing, IT, research and development. Its divisional functions include the products the company is offering, the market it is operating in and geographical areas. Apple has four product categories; the
Organisations with strong cultures are often more effective because they are coherent, well-coordinated and integrated. Employee’s behaviour is based on values that have been well structured and clearly defined with the managers being able to have the skills to implement them. Culture also tends to bring out healthy competition within a workplace. An example of this would be Google (Google, 2014) who ‘strive to maintain the open culture often associated with start-up companies, in which everyone is a hands-on contributor and feels comfortable sharing ideas and opinions’. Their offices and work areas are designed to encourage interactions between the employees within and across teams, leading to open communication. They actively encourage direct communication with upper management and the CEO’s,
In the year 1976, it was a dream for most people to buy a computer for their homes. Back then the computer community added up to a few brainy hobbyists. So when Steve Wozniak and Steve Jobs sold a van and two programmable calculators for thirteen hundred dollars and started Apple Computers, Inc., in Jobs garage, the reach for success seemed far. But these two young business men, Wozniak 26 years old and Jobs 21 years old, had a vision. Computers aren't for nerds anymore, they announced. Computers are going to be the bicycle of the mind. Low cost computers for everyone. From the first day on the founders of Apple kept their vision intact and they spoke it at every turn. They only hired people into the
The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,
Reading the case study “Google’s HR Dilemma” by Mridu Verma, we have gained some knowledge about Google’s success story.
Apple’s organizational culture brings challenges because of the emphasis on secrecy and the moderate degree of combativeness. An atmosphere of secrecy limits rapport among workers. Also, the moderate combativeness that still exists in the firm today has the disadvantage of limiting the morale of some employees. These issues indicate that Apple’s organizational culture has room for major improvements to strengthen the firm’s human resource capabilities.
Google is a publically owned company and the shares of Class A common stock are listed on the Nasdaq Stock Market LLC under the symbol GOOG (Yahoo Inc., 2012). Google’s Class B common stock is not publicly traded. Google’s initial public offering was on August 18, 2004 at a price of $85 per share. As of March 15, 2012, Google shares are
The main focus of this paper is to analyze the organizational culture of this company, by doing so, I will point out the different features, the rules and norms, beliefs and philosophies and the systems implemented by the management team through the processes of communication among employees, stockholders, providers, costumers, etc. and other processes like production and commercialization that are essential to produce the best products at a low cost, put them in the best market and obtain the best results for the company.
What the structure of apple company is customized management institution,the ice of bureaucratic hurdles was broken by this creative simplifies structure. It is the creative culture that Apple Company has launched the new technology new products come out every year.
As years pass by and generation after generation of Americans age, each generation can look back to their time in this world and identify examples of true greatness, greatness that has left an indelible mark on their memory of days past. Whether that mark is made by a person, like Thomas Edison, an event like the Cuban Missile Crisis, or a moment in time like the celebration of a millennia’s end as another begins, each mark becomes an icon representing that generation’s impact on the world at large. In rare instances, however, will a generation look back on their time and identify a company as not just an iconic example of corporate success, but an example of a company that exemplifies that greatness of a generation. Although history has yet to be written, Google has ushered in a new way life for its employees, a new standard for corporate culture, and an organizational design that eliminates the term, “work” from its lexicon as it stands ready to become an icon for this generation (Airey, 2013).
The fifth session underpinned the key factors of culture and strategy. It discussed problematic elements of strategic drifts, cultural and historical influences and the cultural web. The session covered the importance of data for companies, path dependency and lock-in as well its impact and the concept of logical instrumentalism which is a technique that is used to avoid strategic drift. Organizational field and organizational culture was also observed through identifying granted-taken assumptions and cultural web. Session six analyzed organizational