The successful informal system of google company in driving performance essay

There is evidence that a ‘ healthy’ informal system within an organization is important for creative and innovative output. The current paper is devoted to describing how an informal system within organizations impact creativity and innovation; basic ingredients for creative management and marketing. As well, the paper describes how the informal organization drives performance results. When conducting this research, definitions to creativity and innovation, learned theories and concepts related to creative management and marketing are employed. From the onset, informal systems help drive innovation, accelerate restructuring, and improve customer service.

Based on studies in various international locations, a healthy informal system within an organization is important for creative and innovative output. Healthy informal system of an organization is simply characterized by behaviors, patterns and interactions that are more personal as opposed to official relationships. An informal organization is that which lay a lot of emphasis on its people and their relationships. Therefore, leverage is informal power that is basically attached to a definite individual.

This topic is of value since it has impacted greatly to Google Company output in the recent years. Google Company has constantly used a healthy informal system. This has enabled it stay on the cutting edge of technological advancement. The cutting edge of Google’s technological advancement stems from its informally charged innovative spirit and collaborative energy.
Google Company has architected its work spaces simply to facilitate the surge of creativity. This is promoted by putting in place free flow of ideas and an open environment; basically resulting from an informal system. Google complex is simply a form of campus that allows employees at various levels to intermingle resulting in a healthy relationship. Nevertheless, Google not only cultivates its informal system through the physical environment, it as well has informal “ grouplets”. The “ grouplets” are entirely informal, i. e. minimal budgets, have no structure as well as the absence of authority that makes decision. Eventually, this leads to a development of a high end inventiveness culture within the company.

Google has constantly undertaken creative management. The company’s management style is characterized by a continuous radical change, objective intuition and knowledge, experimentation and predictability, independent organization and networks, rapid technological, market and product change, company and product development, knowledge and capital driven development, embrace multiple and single solutions, determinacy and contingency, and reducibility and holism. All these are however carried out in an informal system.

Appropriate theories

The following three theories from the module are appropriate for the successful informal system of Google Company in driving performance. Accordingly, Google undertakes creative management. Creative management is the study and practice of management, drawing on the theories of creative processes and their application at individual, group, organizational and cultural levels. The organizational chart is shown in figure 1.

i. Intra-organizational and inter-organizational network (Industry networking)

Informal systems in organizations foster relationships that enhance individual productivity. A network is a flexible, fluid and dense pattern of working relationships (NystroÈm 1998). It cuts a variety of intra- and inter- Google’s boundaries.
Google Company has continued to use an electronic network that enables it to connect its employees with one another as well as with the company’s strategic partners and vendors. This is shown in figure 3. For efficient network operation, the company has put in place informal corporate structures that basically stem from multiple relationships, strategic alliances and partnerships. For Google, network is simply configuration of ties that among its actors in an informal social system. Core actors are individuals, industries as well as organizations.
Google has continuously made use of the intra-organizational and inter-organizational networking. This has since enhanced its output. To effectively develop the intra-organizational and inter-organizational network, Google has employed use of teams. Teams make coordination easy. Google has organized its teams such that members of a given team fall within few distances to one another (McIntyre 2012). This comparatively makes coordination of creative projects easy. Besides, Google has effectively used intra-organizational and inter-organizational networking by encouraging every Googler to emails his/her work group every week. The email to the work group explains to the group members what has been done the previous week. Consequently, a network is developed where tracking what every vendor or relationship partner is up to. This generally makes the monitoring of the progress easier. It has also helped the company synchronize its work flow (McIntyre 2012).

Intra-organizational and inter-organizational network leads to a competitive environment that continuously requires continuous innovation which is constantly being demonstrated by the company. Intra-organizational and inter-organizational network has resulted in cooperative relations between company actors (NystroÈm 1998). Consequently, Google’s networking has proved more innovative as well as builds up of direct and indirect relationships essential for creativity and innovation.

ii. Relationship marketing

Google’s informal system has made its workers use its tools intensively. The Web is the most obvious one, with an internal web page for the company’s project as well as for every task. This leads to build up of both direct and indirect relationships (Troper 2011). The company extensively uses as well other information management tools like Gmail and Google+ to foster continuous radical change, objective intuition and knowledge, experimentation and predictability, independent organization and networks, rapid technological advancement, and market and product change (Troper 2011)

The engineers of Google are able to spend one fifth of their time on their own projects, i. e. their projects of choice. This allows its creative people to be creative. In essence, the informal relationships built as a result of intra-organizational and inter-organizational network via its Web encourages creativity. For instance, the company uses ideas mailing list which encourages relationships that provide an atmosphere for continuous radical change. Its mailing list for instance allows everybody to provide ideas that are translated to killer applications.
Relationship marketing has enabled Google to hold onto its existing customers while at the same time gaining new ones. With a learning relationship, Google instills proper collaboration between partners. This has made the company have a better competitive edge when compared to other search engines. To effectively maintain relationship marketing, Google has undertaken the following.
It has created new values for its customers and has constantly shared the value with the customers. This is signified by the creation of Google+ to Google Apps users, as well as to the organizations, that has added value to the customers and even to the schools and businesses. The customers are in a position of creating their own corner on Google+ with the Google+ Pages (McIntyre 2012). This boosts relationship and hence creativity. In effect, this development simply shows Google as a company that recognizes the value of its customers as it recognizes the need for lifetime value to its customers. Also, through its Web, the company has built a chain of relationships within the company for creation of value. It also has well defined relationships with its major stakeholders, including their product suppliers and intermediaries.

iii. Value based marketing

Google Company has continued to sell right product to its customers. Google constantly looks for away to create new value for its customers. For instance, the creation of Google+ to Google Apps users, as well as to the organizations, has added value to the customers as even the schools, businesses are in a position of creating their own corner on Google+ with the Google+ Pages (Troper 2011). The organizations have been able to post news and updates as well as sending customized messages to definite people, engage in conversation with followers and customers. By understanding the customers’ needs, Google has created these services (Troper 2011). The creation of Google+ Badge for example has helped Google customers understand their clients well as the service enables customers to create their own websites. This has made Google understand its customers’ needs and satisfy them better than the competitors like Yahoo and Bing.

On operating systems, Google has undertaken value based marketing. It offers android to its customers. This has enabled the needs for tablet computer and Smartphone users fully satisfied. Besides, the company has added Google Chrome OS which is exclusively used by Linux-based operating system for web applications. Lastly, the company has also enhanced its value based marketing by creating and innovating Google TV that integrates Android Google Chrome. In effect, this has led to the creation of interactive television (McIntyre 2012).
In conclusion, it is evident that the healthy informal system of Google Company has significantly improved its performance. By continuously applying concepts such as relationship marketing, value based marketing and industry networks; the company has emerged as the best search engine operators. The company has been instantly upgrading its search experience and this is only applicable due to its healthy informal system.

References

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