Google’s Business Environment and HRM

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Google LLC is an American multinational technology and internet corporation which provides a range of internet-based and technological services and products, including its most well-known business-online search engine, internet advertising, operating systems, cloud computing, artificial intelligence, computer software and hardware and many other internet-related filed, products and services which are mainly direct to individual, business, and professional use.

The company have covered almost the entire global market, its headquarters in the US, provides its products and services in more than fifty countries and regions. Google is one of the world’s technology giants and it is always in the latest stage of technology and innovation. Google has more computing power, data, and talent to pursue artificial intelligence than any other company on earth – and it’s not slowing down. Google is so influential and strong enough that can lead the tide and make a large influence on the megatrend of technology and the whole industry.

For many years, Google has grown beyond online searches and established manifold internet-based consumer services and products, including services designed for office work like Google Doc, Google Slides and Google Sheets, video-sharing platforms like YouTube, cloud storage services via Google Drive, software like Android, Chrome, Gmail, and hardware like Pixel smartphones and Chromebooks.

In addition to Google’s capabilities of technology, efficient and innovative human resources are the root of its success and reputation. Google cares about employees’ well-being and their aspiration, which makes Google different from most other companies. The HR function in Google has focused on aiding the company’s core business by hiring and retaining only the best talents in the world through the recruitment policy, welfare and social security and the incentive system, which is the fundamental reason why Google has always been dynamic and innovative. Google has become a technology industry leader with the help of a motivated and talented workforce that it has managed with great care.

Business Environment

Due to the company’s business strategy of business diversification, google operates in many markets and offers products, services, and more to countries globally. Starting off as a search engine, google then gave birth to its vast range of productivity applications, such as google drive & maps, applications that today have millions of users worldwide. Furthermore, from this google has expanded further branching out into the smartphone market with the Google Pixel 4a phone being its latest offering. Thus, giving google a whole new customer base allowing the company to be more than just a search engine going into the future.

This closed eco-system of products and services google have created is a portion of the reason why Google has been such a profitable and successful company for many years. Using one of the products, for example, one of googles smartphones will lead to you using Gmail for your emails, google chrome for your browser and the possible use of the rest of its wide range of services and products. Google’s main form of income from these services is the advertising revenues it generates. Therefore, the more consumers it can attract to use its services the more profit can then be made.

Another way Google has increased its market scope is through acquisitions of other companies who specialise in things google doesn’t. For example, in 2006 google bought the video-sharing site YouTube a company that specialises in something that google didn’t currently at the time. Due to the adverts placed on YouTube videos, this has been a very profitable move for google. In addition, the emphasis googles places on developing new technologies further helps its market reach. Its research and development into AI technologies led to the development of its version of Siri, google assistant. Leading to a whole new market for the company.

Google’s HRM Strategy

Every year more than 2 million applicants apply to secure a job at Google causing an influx of thousands of applicants responding to every free position annually.

The main focus for HR is to have the right person in the right position. In 2012, the number of new recruits Google hired was more than 8000. Because of this volume the company had to create a detailed set of People analytics, with the intention of operating as an HR management system.

The basic premise of the “people analytics” approach is that accurate people management decisions are the most important and impactful decisions that a firm can make. People costs often make up around 60% of corporate variable costs, so it makes sense to manage such an integral part of financing using analytics. A large part of Google’s success is from the fact that it is the world’s only data-driven HR function. This results in Google producing amazing workforce productivity results that few can match (on average, each employee generates nearly 1 million in revenue and $200,000 in profit each year)
Referred to as “People operations” rather than HR.

People management decisions at Google are guided by the powerful “people analytics team”. The systems Google uses for people analytics are otherwise referred to as “database decision-making”, “algorithm-based decision-making” or “fact or evidence-based decision making”.
These HRM methods employed by google have been successful as seen through the clear success of the company. Various studies show a link between employee perceived HRM that they deem fair and higher efficiency and lower turnover rates. Proved by Google’s own lower than industry average turnover rate. This is thanks to the focus on analytical people management and the understanding that staff shouldn’t be thought of as disposable.

In this sense, the business makes many improvements not seen in other jobs. Google has used the social contract perspective to great effect by having more relaxed and non-formal environments alongside attempting to remain unbiased and supportive of its employees. This is not always the case, however. Recently it was revealed that google attempted to shut down a meeting about unionising which backfired, applying the Streisand effect to accidentally raise interest in the meeting. These anti-unionisation actions happen in many places such as the recently unionised Pittsburgh.

Despite this, we are beginning to see a movement of change within google. Many staff are appreciative of the care the company puts into them and are optimistic that Google can set a good example for progressive worker care to many other businesses. This is something the company is surely aware of due to the nature of the data they handle. In this regard, Google is making good steps while encouraging others. More needs to be done yes, but this is an excellent start.

The overall growth of the business can be attributed to the creation of meaningful work for the employees. Utilising complex data analytics Google is hence able to discover what methods work well for most employees while allowing some wiggle room for flexibility. Once this has been sussed out, they implement forward-thinking HR policies in order to capitalise on the meaningful experience of the staff. This has led to a figure of each staff member generating nearly £1 Million each year in revenue.


To conclude, we have discovered that Google is a universally used search engine, and a modern industrial powerhouse in terms of scale. Google has a presence in almost every country around the world and holds great interest in almost every aspect of modern living, from Google Maps to Google Hotel Finder, they offer services for nearly anything.

Google utilises HRM in an industry-defining manner which seeks low levels of employee stress while at the same time, avoiding causing harm to the bottom line. They place emphasis on data collection and analysis, for example – employee eating habits. In addition to this, Google has a powerful culture within the business and function at a high level of job satisfaction, however, despite this, they struggle with optimal usage of all employees which can lead to job dissatisfaction. This works alongside their colossal revenue streams of Google Docs, Google Maps, Google Translate and so on, to give them an advantage over competitors such as Amazon, Bing, Facebook, and as political leverage.

In the future, the business aspires to focus on diversity within the workplace, a further collection of data for analysis and further recruitment for their continually expanding services.

It is recommended that for Google to protect its place in comparison to competitors, and to further develop its market size, specific actions are taken. For example, Google should take advantage of the huge opportunities present in relation to Android OS: by doing so they can increase prospects of competing with Apple in the future.

The company have competent strengths; however, they need to also address certain weaknesses, such as their lack of physical presence. Although Google has opened physical stores in the UK, they have not continued to do so in other locations. Based on our evaluation of HRM in Google, we believe they can keep up performance and success through addressing the certain limitations and threats acknowledged in this analysis.


Cite this paper

Google’s Business Environment and HRM. (2020, Sep 22). Retrieved from https://samploon.com/googles-business-environment-and-hrm/



Does Google have an HR department?
Yes, Google has a Human Resources department that is responsible for managing employee relations, benefits, and recruiting. The HR department plays a critical role in ensuring that Google attracts and retains top talent.
Does Google use human relations management?
Yes, Google does use human relations management in order to keep track of employee performance and to ensure that their policies are being followed.
How does Google manage their human resources?
Google has been known to be an employee-friendly company, with perks like free food and on-site dry cleaning. They also have been known to invest heavily in employee development and training.
Why is Google's HR so good?
Google is a MNC because it has many subsidiaries and it operates in many countries.
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