ContentsContents

• Introduction to GoogleIntroduction to Google• How has Google treated the Googlers How has Google treated the Googlers

well?well?

• Layoffs in 2009Layoffs in 2009• ““Brain Drain”Brain Drain”• Google ended censorship of China siteGoogle ended censorship of China site

• ConclusionConclusion• Q&AQ&A

3

IntroductionIntroduction

• Founders Founders Larry Page, Sergey BrinLarry Page, Sergey Brin• Founded Founded 19981998• CEO CEO Eric Schmidt Eric Schmidt • Industry Industry Media and Internet ServicesMedia and Internet Services• HeadquartersHeadquarters Mountain View, California

• OrganizationalOrganizational MissionMission

Organize the world's information and make Organize the world's information and make it universally accessible and usefulit universally accessible and useful

• OrganizationalOrganizational Google’s CultureGoogle’s Culture

Innovation and CreativityInnovation and Creativity

Organization structureOrganization structureBoard of DirectorsBoard of Directors

• Eric Schmidt, Google Inc., Google Inc.• Sergey Brin, Google Inc., Google Inc.• Larry Page, Google Inc., Google Inc.• John Doerr, Kleiner Perkins Caufiel, Kleiner Perkins Caufiel

d & Byersd & Byers• Ram Shriram, Sherpalo, Sherpalo• John Hennessy, Stanford Universit, Stanford Universit

yy• Paul Otellini, Intel, Intel• Shirley M. Tilghman, Princeton Univ, Princeton Univ

ersityersity• Ann Mather

Operating CommitteeOperating Committee

• Eric Schmidt, Chairman of the Board and Chief , Chairman of the Board and Chief Executive OfficerExecutive Officer

• Larry Page, Co-Founder & President, Products, Co-Founder & President, Products• Sergey Brin, Co-Founder & President, Technol, Co-Founder & President, Technol

ogyogy

• Nikesh Arora, President, Global Sales Operation, President, Global Sales Operations and Business Developments and Business Development

• Laszlo Bock, Vice President, People Operations, Vice President, People Operations• Shona L. Brown, Senior Vice President, Business , Senior Vice President, Business

Operations, Google Inc.Operations, Google Inc.• W. M. Coughran, Jr., Senior Vice President, Engin, Senior Vice President, Engin

eeringeering• David C. Drummond, Senior Vice President, Cor, Senior Vice President, Cor

porate Development and Chief Legal Officerporate Development and Chief Legal Officer• Alan Eustace, Senior Vice President, Engineering , Senior Vice President, Engineering

& Research& Research• Urs Hölzle, Senior Vice President, Operations & , Senior Vice President, Operations &

Google FellowGoogle Fellow• Jeff Huber, Senior Vice President, Engineering, Senior Vice President, Engineering• Omid Kordestani, Senior Advisor, Office of the C, Senior Advisor, Office of the C

EO and FoundersEO and Founders• Patrick Pichette, Senior Vice President & Chief Fi, Senior Vice President & Chief Fi

nancial Officernancial Officer• Jonathan Rosenberg, Senior Vice President, Pro, Senior Vice President, Pro

duct Managementduct Management• Rachel Whetstone, Vice President, Public Policy , Vice President, Public Policy

and Communicationsand Communications• Susan Wojcicki, Vice President, Product Manage, Vice President, Product Manage

mentment

Laszlo Bock VP, People OperationsLaszlo Bock VP, People Operations

David C. Drummond Senior VP, Corporate Development and Chief Legal OfficerDavid C. Drummond Senior VP, Corporate Development and Chief Legal Officer

Key executives by functionKey executives by functionEngineering Engineering

• Vinton G. Cerf, Vice President & Chief Internet Evangelist, Vice President & Chief Internet Evangelist• Stuart Feldman, Vice President, Engineering, Vice President, Engineering• Ben Fried, Chief Information Officer, Chief Information Officer• Vic Gundotra, Vice President, Engineering, Vice President, Engineering• Udi Manber, Vice President, Engineering, Vice President, Engineering• Nelson Mattos, Vice President, Engineering, EMEA, Vice President, Engineering, EMEA• Brian McClendon, Vice President, Engineering, Vice President, Engineering• Cosmos Nicolaou, Vice President, Engineering, Vice President, Engineering• Sridhar Ramaswamy, Vice President, Engineering, Vice President, Engineering• Andy Rubin, Vice President, Engineering, Vice President, Engineering• Shiva Shivakumar, Vice President and Distinguished Entrepreneur, Vice President and Distinguished Entrepreneur• Alfred Spector, VP of Research and Special Initiatives, VP of Research and Special Initiatives• Benjamin Sloss Treynor, Vice President, Engineering, Vice President, Engineering• Linus Upson, Vice President, Engineering, Vice President, Engineering• Jeff Dean, Google Fellow, Google Fellow• Sanjay Ghemawat, Google Fellow, Google Fellow• Amit Singhal, Google Fellow, Google Fellow

ProductsProducts

• John Hanke, Vice President, Product Management, Vice President, Product Management• Bradley Horowitz, Vice President, Product Management, Vice President, Product Management• Salar Kamangar, Vice President, Product Management, Vice President, Product Management• Marissa Mayer, Vice President, Search Products & User Experience, Vice President, Search Products & User Experience• Neal Mohan, Vice President, Product Management, Vice President, Product Management• Sundar Pichai, Vice President, Product Management, Vice President, Product Management• Mario Queiroz, Vice President, Product Management, Vice President, Product Management• Lorraine Twohill, Vice President, Global Marketing, Vice President, Global Marketing

Google.orgGoogle.org

• Megan Smith, Vice President, New Business Development, and GenMegan Smith, Vice President, New Business Development, and General Manager, Google.orgeral Manager, Google.org

Sales Sales

• Daniel Alegre, Vice President, Asia Pacific Sales & Operations, Vice President, Asia Pacific Sales & Operations• Carlo d'Asaro Biondo, Vice President, Southern & Eastern Europe, Mid, Vice President, Southern & Eastern Europe, Mid

dle East & Africa (SEEMEA)dle East & Africa (SEEMEA)• Francoise Brougher, Vice President, Online Sales and User Operation, Vice President, Online Sales and User Operation

ss• Henrique de Castro, Vice President, Global Media & Platforms, Vice President, Global Media & Platforms• David Fischer, Vice President, Global Online Sales & Operations, Vice President, Global Online Sales & Operations• Dave Girouard, President, Enterprise, President, Enterprise• John Herlihy, Vice President, Global Ad Operations, Vice President, Global Ad Operations• Claire Hughes Johnson, Vice President, Global Online Sales, Vice President, Global Online Sales• Sanjay Kapoor, Vice President, Search Partnerships, Vice President, Search Partnerships• Dr. John Liu, Vice President, Sales, Greater China, Vice President, Sales, Greater China• Michael Lock, Vice President, Enterprise Sales, Vice President, Enterprise Sales• Norio Murakami, Chairman, Google Japan, Chairman, Google Japan• Penry Price, Vice President, Global Agency and Industry Development, Vice President, Global Agency and Industry Development• Philipp Schindler, Vice President, Northern and Central Europe, Vice President, Northern and Central Europe• Koichiro Tsujino, President & General Manager, Google Japan, President & General Manager, Google Japan• Dennis Woodside, Vice President, Americas Operations, Vice President, Americas OperationsLegal Legal

• David Lawee, Vice President, Corporate Developme, Vice President, Corporate Developmentnt

• Megan Smith, Vice President, New Business Develop, Vice President, New Business Development, and General Manager, Google.orgment, and General Manager, Google.org

• Matt Sucherman, Vice President and Deputy General Matt Sucherman, Vice President and Deputy General CounselCounsel

• Kent Walker, Vice President & General CounselKent Walker, Vice President & General Counsel• Nicole Wong, Vice President and Deputy General CoNicole Wong, Vice President and Deputy General Co

unselunselFinance Finance

• Brent Callinicos, Vice President & TreasurerBrent Callinicos, Vice President & Treasurer• Mark Fuchs, Vice President of Finance and Chief AccMark Fuchs, Vice President of Finance and Chief Acc

ountantountant• David Radcliffe, Vice President, Real Estate and WorDavid Radcliffe, Vice President, Real Estate and Wor

kplace Serviceskplace Services• Jason Wheeler, Vice President, FinanceJason Wheeler, Vice President, Finance

Leadership style of Google Leadership style of Google triumviratetriumvirate

Eric SchmidtEric Schmidt• Get to know your followersGet to know your followers• Create new ways to promote your followersCreate new ways to promote your followers• Let your followers own the problems you want them to solveLet your followers own the problems you want them to solve• Allow people to function outside the company hierarchyAllow people to function outside the company hierarchy• Review your team's results by someone they respectReview your team's results by someone they respect

Larry Page and Sergey Brin Larry Page and Sergey Brin • Democratic decision-making stylesDemocratic decision-making styles

So, What have the Google

Triumvirate provided for Googlers?

Benefits of working at GoogleBenefits of working at Google

“The goal is to strip away everything that gets in our The goal is to strip away everything that gets in our

employees’ way. employees’ way.

• We provide a We provide a standard package of fringe benefitsstandard package of fringe benefits, but , but on top of that are first-class dining facilities, gyms, laundry on top of that are first-class dining facilities, gyms, laundry rooms, massage rooms, haircuts, carwashes, dry cleaning, rooms, massage rooms, haircuts, carwashes, dry cleaning, commuting buses commuting buses

– – just about anything a hardworking employee might just about anything a hardworking employee might want.”want.”

Eric Schmidt, CEO GoogleEric Schmidt, CEO Google

So, What does it exactly

Look like @ Workplace?

At the workplaceAt the workplace

Healthy work-life Healthy work-life balancebalance

• Flexible work hours, part time

• work options, and telecommuting if the specific job allows

• Workout room with weights • Locker rooms • Washers and dryers • Massage room • Assorted video games • Foosball • Baby grand piano • Pool table • Roller hockey twice a week in

the company parking lot • Snack Rooms with free snacks

foods, fruit, and beverages • Free breakfast, lunch, dinner

at the employee cafe

Also, Perks and BenefitsAlso, Perks and Benefits

MonetaryMonetary

• 27 days of paid time off after one year of employment27 days of paid time off after one year of employment• 18 weeks of additional paid time off post maternity leave; new 18 weeks of additional paid time off post maternity leave; new

fathers can take 7 weeks offfathers can take 7 weeks off• Fuel Efficiency Vehicle Incentive Program provides a $5,000 rebate Fuel Efficiency Vehicle Incentive Program provides a $5,000 rebate

to employees purchasing hybrid carsto employees purchasing hybrid cars

Non-MonetaryNon-Monetary

• Unlimited Sick LeaveUnlimited Sick Leave• On‐site Medical and dental facilities, oil change and car wash, On‐site Medical and dental facilities, oil change and car wash,

courier, fitness center, banking center, free breakfast, lunch and courier, fitness center, banking center, free breakfast, lunch and dinner on a daily basisdinner on a daily basis

• Annual on‐site Health Fair offering free testing services, including Annual on‐site Health Fair offering free testing services, including eye exams and cholesterol testingeye exams and cholesterol testing

• Free flu shotsFree flu shots

ETC…ETC…

, in short, in short

• HR functions and policies align with business model and vision makes Google the most exciting young technology company to work for

• Healthy work-life balance is motivating people

• "I trust the people I work for, have pride in what I do, and enjoy the people I work with”

• Trust is “written” on the psychological contract

• Good employment relations, employee relations• High Employee involvement• More likely engage in discretionary behavior• Positive Organizational citizenship behavior

• High job satisfaction and commitment, even self-motivated

When Making the most of People in times of recession

…However

26 November

26 November 20082008• Google Layoffs: 10000 contrac

Google Layoffs: 10000 contrac

tual part time

tual part time Jobs Being Cut,

Jobs Being Cut,

Report Claims

Report Claims

4 January 2009

4 January 2009

•Google to lay off 100 recruiters, close engineering offices

Google to lay off 100 recruiters, close engineering offices

26 March 2009

26 March 2009

• Google cuts 'just under' 200 positions

Google cuts 'just under' 200 positions

1 April1 April 20082008

• Google to lay off around

Google to lay off around

25% of Double Click

25% of Double Click

employeesemployees

Close to the Credit Close to the Credit Crunch…Crunch…

? ?

Why? Assumptions…Why? Assumptions…

• Economic crisis poses the unique challenge to the HR departmenEconomic crisis poses the unique challenge to the HR department.t.

• Save costsSave costs• Business effectiveness and efficiencyBusiness effectiveness and efficiency

• Corporate/Business strategy change – functional (HRM) strategy Corporate/Business strategy change – functional (HRM) strategy changechange

• Internal supply>demand – Redundancy – LayoffInternal supply>demand – Redundancy – Layoff

Impacts on The Google

rs?

An analysis from Google Official Blog…

4 January 2009, 100 Layoffs4 January 2009, 100 Layoffs ““Given the state of the economy, we recognized that we needed feGiven the state of the economy, we recognized that we needed fe

wer people focused on hiring... wer people focused on hiring...

we need to go further and reduce the overall size of our recruiting orwe need to go further and reduce the overall size of our recruiting organization by approximately 100 positions.ganization by approximately 100 positions.

We know this change will be very difficultWe know this change will be very difficult for the people concerned, a for the people concerned, and we hope that many of them will be able to nd we hope that many of them will be able to find new rolesfind new roles at Google. at Google. They helped build this company, They helped build this company, new hire by new hirenew hire by new hire, and , and we are enowe are enormously gratefulrmously grateful for everything they have done.” for everything they have done.”

• Laszlo Bock, Vice President, People Operations (2009)Laszlo Bock, Vice President, People Operations (2009)

26 March 2009, 200 Layoffs 26 March 2009, 200 Layoffs

““So today we have informed Googlers that we plan to reduce the numbeSo today we have informed Googlers that we plan to reduce the number of roles within our sales and marketing organizations by just under 200 r of roles within our sales and marketing organizations by just under 200 globally. globally.

The recessionThe recession makes the timing even more difficult for the Googlers conc makes the timing even more difficult for the Googlers concerned. erned.

We had toWe had to restructure restructure our organizations in order to our organizations in order to improve our effectivimprove our effectiveness and efficiency as a businesseness and efficiency as a business..

We will We will give each person time to try and find another positiongive each person time to try and find another position at Googl at Google, as well as e, as well as outplacement supportoutplacement support, and provide , and provide severance packagesseverance packages fo for those who leave the company. r those who leave the company.

Finally, I would like to take this opportunity to thank everyone affected for Finally, I would like to take this opportunity to thank everyone affected for all they have contributed to Google.all they have contributed to Google.””

• Omid Kordestani, Senior VP, Global Sales and Business Development (2009)

So, What can we learn from that?

In shortIn short

• No company is obligated to publicly address a round of layoffs or praise their axed employees or express sympathy for the resulting change or provide a high-level explanation for the layoffs

• Go a long way toward honoring cut employees and improving the morale of those that remain

• Leadership style: Humanistic, Theory Y leadership• Motivation: Employee involvement• How the psychological contract work in reality

SuggestionsSuggestions

• Deal with redundancy and dismissal Deal with redundancy and dismissal • Compensation to retrenched employees Compensation to retrenched employees

• Job reapplyJob reapply

• Strengthen management, career designing and planning Strengthen management, career designing and planning

• AAbility and Skills: Training, development and learningbility and Skills: Training, development and learning• MMotivation: Morale and Productivity otivation: Morale and Productivity • OOpportunity to participate pportunity to participate

• Attitude and feelings of job satisfaction and commitmentAttitude and feelings of job satisfaction and commitment

• Line managersLine managers

End...?

““Brain drain” at GoogleBrain drain” at Google

SpotlightSpotlight

• The departure of Google’s communication boss—Elliot Schrage to Facebook The departure of Google’s communication boss—Elliot Schrage to Facebook on May 2009on May 2009

Why? Why?

• The changing enterprising spirit The changing enterprising spirit • Limited senior positions Limited senior positions • Numerous companies provide Google’s knowledge workers with large salary Numerous companies provide Google’s knowledge workers with large salary

and attractive terms and conditionsand attractive terms and conditions

Assumptions…Assumptions…

• Work life balance?Work life balance?• Irregular career planningIrregular career planning• Impersonal company’s HR policiesImpersonal company’s HR policies

Point of views from the GooglersPoint of views from the Googlers

Link to people performance management model (AMO)Link to people performance management model (AMO)

• Those knowledge workers with Those knowledge workers with ability and skills ability and skills feel that feel that they they can’t be recognized and valued as the company maturescan’t be recognized and valued as the company matures

• Google’s continuous hiring new knowledge workers make current Google’s continuous hiring new knowledge workers make current knowledge workers feel knowledge workers feel less motivationless motivation and “bigger stage” to and “bigger stage” to perform wellperform well

• Those ambitious talents think that Google can’t delivery job Those ambitious talents think that Google can’t delivery job satisfaction and give enough satisfaction and give enough opportunitiesopportunities

• Stock option packageStock option package

Implications for Google and HRMImplications for Google and HRM

Assumptions…Assumptions…

• Business efficiency and productivity: AMO didn’t fully happenBusiness efficiency and productivity: AMO didn’t fully happen• Affect organizational citizenship behaviorAffect organizational citizenship behavior• Morale of effective teamMorale of effective team

• Potential human capital advantage lossesPotential human capital advantage losses• Affect competitive advantage: Long-term ability to competeAffect competitive advantage: Long-term ability to compete

• Necessary training or recruitmentNecessary training or recruitment

An analysis from the News…

“Elliot was a valued member of the Google team we wish him welElliot was a valued member of the Google team we wish him well.l. ""

“ We have a deep management pool at Google." We have a deep management pool at Google."

Google spokesman Matt Furman (2008)

• ““Google has denied the a brain drain of talent followinGoogle has denied the a brain drain of talent following the departure of its communications boss Elliot went g the departure of its communications boss Elliot went to Facebook” (BBC News, 2008).to Facebook” (BBC News, 2008).

““Brain Drain” in the newsBrain Drain” in the news

So, Why…?

SuggestionsSuggestions

• Increase job satisfaction and commitment Increase job satisfaction and commitment • Lower LTRLower LTR

• AAbility: make best use of talents’ skills or abilitiesbility: make best use of talents’ skills or abilities• MMotivation: pay and rewards, welfare, terms and conditionsotivation: pay and rewards, welfare, terms and conditions• OOpportunities : Career development, challenging enough jobspportunities : Career development, challenging enough jobs

• Communication for employment relationsCommunication for employment relations• Training new knowledge workersTraining new knowledge workers• Improve work-life balanceImprove work-life balance• Show respect Show respect

• Function of line managersFunction of line managers

Human resource retention

Gain sustainable competitive advantage as a new media company

Spotlight In

2010…

A new approach to ChinaA new approach to China

““These These attacksattacks and the and the surveillancesurveillance they have uncovered — they have uncovered —

combined with the attempts over the past year to further combined with the attempts over the past year to further limit limit free speechfree speech on the web — have led us to conclude that on the web — have led us to conclude that

We should We should review the feasibilityreview the feasibility of our of our business business operationsoperations in China, and in China, and potentially our officespotentially our offices in China.” in China.”

12 January 2010David Drummond, Chief legal officer

Why Why ??

Don’t be evil…

“Since services and information are our most successful exports, if regulations in China effectively prevent us from being competitive, then they are a trade barrier"

Co-Founder Sergey Brin 24 March 2010

Why Why ??

• Corporate/Business strategyCorporate/Business strategy

Adapted from: WSJ Research. Analysis International (Data) Adapted from: WSJ Research. Analysis International (Data) (2010)(2010)

Implications for Google and HRMImplications for Google and HRM

“ “The decision to review our business operations in China has been The decision to review our business operations in China has been

incredibly hard, and we know that it will have potentially far-reaching coincredibly hard, and we know that it will have potentially far-reaching consequences. nsequences.

We want to make clear that this move was driven by our executives in the We want to make clear that this move was driven by our executives in the

United States, United States, without the knowledge or involvement of our employewithout the knowledge or involvement of our employees in Chinaes in China who have worked incredibly hard to make Google.cn the suc who have worked incredibly hard to make Google.cn the success it is today. cess it is today.

We are committed to working responsibly to resolve the very difficult issues We are committed to working responsibly to resolve the very difficult issues raisedraised.”.”

12 January 201012 January 2010David Drummond, Chief legal officerDavid Drummond, Chief legal officer

Google in the NewsGoogle in the NewsGoogle China Employees in

Limbo 13/1/2010, WSJ

Google China Employees Given Holiday

Leave, Networks Being Scrutinized

14/1/2010 BBC China

600 employees in Google China may lose their jobs, some

have been transferred to Hong Kong15/1/2010, Sina

Google China Is Hiring as Withdrawal Concerns Ease23/2/2010, Business Week

Google starts hiring again in China2/3/2010, Business Insider

Implications for employees Implications for employees ChinaChina

Uncertainty and difficulties

Changes in

• Psychological contract in reality• Job security• Employee Involvement• Psychological will • Discretionary behavior

Discretionary behaviors of those employees in times Discretionary behaviors of those employees in times of limbo? of limbo?

From google.cn to google.com.hkFrom google.cn to google.com.hk

““In terms of Google's wider business operations, we intend to In terms of Google's wider business operations, we intend to continue continue R&DR&D work in China and also to work in China and also to maintain a sales presencemaintain a sales presence there, though there, though the size of the sales team will obviously be partially dependent on the athe size of the sales team will obviously be partially dependent on the ability of mainland Chinese users to access Google.com.hk. bility of mainland Chinese users to access Google.com.hk.

Finally, we would like to make clear that all these decisions have been driFinally, we would like to make clear that all these decisions have been driven and implemented by our executives in the United States, and that ven and implemented by our executives in the United States, and that nnone of our employees in China can, or should, be held responsible foone of our employees in China can, or should, be held responsible for them.r them.

Despite all the Despite all the uncertaintyuncertainty and and difficulties difficulties they have faced since we ma they have faced since we made our announcement in January, they have de our announcement in January, they have continued to focus on sercontinued to focus on servingving our Chinese users and customers our Chinese users and customers. . We are immensely proud of tWe are immensely proud of themhem.”.”

22 March 2010David Drummond, Chief legal officer

However, in the mean time…However, in the mean time…

• Stay and serve the users• Transferred to the office in Hong Kong• Transferred to the office in HQ (Assumption)

• Go to other Internet or media companies in China

2008~2009, Layoffs

Job losses in Google China

But Wait…

What about the Union?

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