The Impact of Corporate Culture on the Growth and Profitability of IT Companies: The Case of Google

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The Impact of Corporate Culture on the Growth and Profitability of IT Companies: The Case of Google| 7

Abstract

In today’s global economy, companies from different industries are trying to create a unique competitive advantage to stay in business and maximize their shareholders’ equity. In doing so, companies should analyze their largest expenses and try to minimize these costs while utilizing their resources in order to make the most from these expenditures. The largest operating expense in U.S.

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companies is salary. To maximize this expenditure, businesses should devise ways in which to motivate their employees to be more productive. Controlling employees to come to work is easy, but how can companies motivate their employees to work to their full capacity? One way in which this can be accomplished is by creating a suitable, attractive, and tension-free working environment for employees. In doing so, companies can create a strong corporate culture which could offer a competitive advantage. As an example, Google has become one of the largest IT companies in the world in fewer than two decades from its establishment. Not only has Google grown to be one of the largest IT company in the world, it has also developed unique and innovative products, a high job growth, and a secure position as one of the top five companies for which to work. Google has managed to achieve this not only by developing appropriate business strategy, but also creating a strong corporate culture that concentrates mainly on employees and customers. In this research, I will try to analyze Google’s achievements. I will conduct a small survey to examine the adaptability of Google’s flexible corporate culture in IT companies located in Utah.

Introduction Statement of the Problem

The old saying, “You can lead a horse to water, but you can’t make him drink” may hold true for employees as well; you can make employees come to work, but it is not easy to make them work to their full capacity. Companies may use different methods to control their employees to make them work to their fullest working capacity, but this does not always succeed. To understand employees’ work satisfaction and engagement in their work, it is useful to analyze a survey conducted by the Gallup Management Journal (GMJ) (Houser, 2009). The GMJ surveyed U.S. employees to understand how engaged they are in their work and their attitudes toward their managers. According to the study, there are three types of employees: 1. Engaged employees: Those who work with passion, motivation, and have deep feelings toward their company. These people are the ones who move the organization. 2. Not-engaged employees: Those who are physically present in the company but mentally absent.

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