Google uses a cross-functional organizational structure combined with a unique philosophy.

Organizations are changing, but are organizations changing their traditional structures?  By and large, the answer is yes, traditional organizational structures are still evident today. However, some organizations, to appeal to potential employees, are changing the  traditional organizational structure. One such company is Google. According to Fortune magazine (http://money.cnn.com/magazines/fortune/bestcompanies/2011/index.html), Google ranks in the top five best places to work and has ranked so for five consecutive years. What makes this organization so different from others? Why
are employees flocking to organizations such as Google?


The traditional organizational pyramid has operative employees at the bottom of the triangle, supervisors above them, middle managers above supervisors, and top management above all. This structure is a vertical approach to mangement where the decision making is done at the top and orders are sent down to the operational employees at the bottom of the organizational hierarchy. Operative employees do not have much say in the organization’s operations.

Google uses a cross-functional organizational structure combined with a unique philosophy. Their cross-functional organizational structure is more of a team approach to management and is structured horizontally. According to Google.com (http://www.google.com/intl/en/corporate/), they purposively maintain a small-company feel, believing every employee is a hands-on contributor and everyone is an equally important part  of Google’s success. Google’s benefits package also plays a major part in attracting employees. Google states that, from employee retirement funds to their free lunch and dinner program, they strive to offer customizable programs that suit the needs of each of their employees. What more could an employee want?

Which organizational structure do you think works best and why? Do you think the vertical structure works better in some cases whereas the horizontal structure works better in others? Would you prefer a more relaxed working environment or do you prefer something more structured?

SOURCE: Supervision Today! (7th Edition)

Comments

  1. Here are some organizational chart examples , for creating your own org chart templates. There are 1000s of templates and examples to be used freely.

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  2. Each functional area brings to the team their own ideas, perspectives and ways of doing things. Thanks for this informative post!!
    Human Resource Consultant in Hosur

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