Google the HR and Market Environment

Document Type:Report

Subject Area:Human Resource Management

Document 1

The company’s human resource management utilizes carefully selected strategies in recruitment, orientation, training, and retention of employees. The recruitment and selection process is particularly designed to ensure that the workforce is adequate at all times and propels the organization toward its goals. Retention programs are also shaped to attract and retain high quality workers who add value to the organization. In general, Google’s Human Resources department is responsive to the internal and external environmental conditions and this has resulted in unsurpassed success. This paper analyzes how internal and external environments influence the company’s HR strategy as well as how it responds to specific changes in the environment. PESTLE Analysis Although Google’s primary product is its popular search engine (Shiv, 2017), the company has grown over the years to extend its brand to other emerging areas of technology like maps, smartphones, cloud services, and laptops. The company also runs an ad business that empowers other firms to promote their services in the internet environment and enables publishers to earn income from selling ad space on their online publications. While Google continues to expand into varied subindustries, it will face various pressures in the external environment, ranging from economic, political, technological, environmental, legal, and social factors. The following PESTEL analysis highlights these factors. Political Factors As an internet-based company, Google is not immune to political influences. Political forces can directly or indirectly affect the manner in which the company runs its operations. A case in point is EU’s regulation against American technological multinationals.

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In the recent years, the EU has targeted Google with anti-trust laws that have led to the company facing huge fines of up to 3 billion euros (Boffey, 2017). This shows that the political environment is quite distinctive and may not be as friendly as the business environment. In regions where governments are increasingly exhibiting anti-US sentiments, Google is bound to face challenges as far as the political environment is concerned. Economic Factors Economic factors are also significant when it comes to Google’s success. During the recession for example, the percentage of people willing to spend their money on products and services dwindled greatly because of the hard economic conditions. Consequently, the whole economy shrunk as a result and negatively affected the profitability of large companies such as Google. Since Google has expanded its operations to many niches in the technology industry, the company’s success relies on the state of economic scenario.

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The more the consumers are willing to consume, the more likely it is for Google to record high profits. The company is modelled around innovation and as such has invested a significant amount of its resources in research to stay ahead of its competitors. Nevertheless, the competitors are equally relentless, with the likes of Microsoft and Amazon capitalizing on new technologies as well. This has intensified competition to a considerable degree. Indeed, Apple is attempting to invent new products and services to fully cater for the needs of its customers and discourage the use of services from third parties such as Google. A good example is the incorporation of Artificial Intelligence in Apple devices. The following SWOT analysis gives an account of each. Strengths Google has four major strengths. First, it is a leader in the world of internet searches.

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The company holds a domineering share of all internet searches worldwide, with the precise market share being 65% of all searches. Indeed, Google does not face any threatening competition in this field. Since 2013, the company has recorded dropping revenues from its ads business, which has negatively affected its profitability. This trend is partly attributed to the slowing state of the world economy and partly because of stiffening competition. Moreover, Google relies heavily on advertising and 90% percent of its revenues emerge from its advertising business alone (Rosenberg, 2017). This implies that the potential decline of ad rates may impact the business destructively. Otherwise, the company will be compelled to create a more robust business model that embraces e-commerce along with the current ad business. Notably, the advent of social media has threatened Google’s dominance in the advertising industry (Rosenberg, 2017).

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Similarly, the growth of mobile computing means that other companies are establishing their presence in the technology industry. Google HR Strategies Google has modelled its HR function according to the conditions of its internal and external environment. The company’s recruitment practices involve a mixture of sources and methods that harmonize well with the needs of the organization. With regard to the sources, Google relies on a mixture of internal and external recruitment sources to constantly fulfill the needs of its human resources. With regard to retention programs, Google’s compensation packages are a major tool for the company. The firm’s compensation scheme is above the average used in big corporations with high salaries and wages being the major enticers. Additionally, employees enjoy a range of other benefits and incentives among which are free meals and a typical workplace design that encourages fun and creativity.

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The HR department also employs coaching and mentoring as strategies of retaining and developing employees who have a leadership potential. Conclusion One major secret to the success of Google as a technology company is its innovative work culture. All training programs are monitored to ensure their alignment my with the organization’s human resource needs. Similarly, performance management practices are fine tuned to directly address HR objectives. References Boffey, D.  Google appeals against EU's €2. bn fine over search engine results. Available at: https://www. thecasecentre. org/educators/products/view?id=81201 [Accessed 24 Dec. Molla, R.  Google and Facebook are driving nearly all growth in the global ad market. asp [Accessed 24 Dec. Shiv Mehta, C.  How Google's Search Engine Makes Money. online] Investopedia. Available at: https://www.

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