Many new, start-up software companies provide a new and innovative organizational culture to the whole team of employees. This low formalization and “flat,” pyramid of management promotes creativity, efficiency and ultimately it is know to increase job satisfaction. Whereas in conventional organizational cultures, many different set of managers exist that are all responsible for the employees below them, in this “flat,” organization design, there are far fewer communication and position levels between management and employees.

Google is a company that utilizes this organizational culture, as well as other quirky employee privileges, such as volleyball courts, restaurants and massage rooms in order to inspire innovation within employees as well as enable an incredible employee satisfaction. But are these methods paying off in terms of profit and employee satisfaction?

Bianca Pinasco argues in her article Best workplace in the world, that indeed, Google’s methods provide a desirable outcome, making the company “one of the most profitable in the world,” but at what costs. Studies show that Google has an unexpectedly low tenure for employees at about 1 year. Being considerable less than many similar organizations, it is evident that Google is not meeting the demands of its particular staff members and as such, the organization must change its internal operations as to further meet the demand of its employees.

While this issue is overshadowed by the enormous profit accumulated by Google, a lack to change culture and promote a higher employee loyalty may lead to the demise of the internet giant in the future.

Article “Why are Google Employees so Disloyal?”

http://www.bloomberg.com/news/2013-07-29/why-are-google-employees-so-disloyal-.html

Bianca Pinasco’s Blog:

https://blogs.ubc.ca/biancapinasco/2013/11/09/the-best-workplace-in-the-world/

Picture can be viewed at:

http://www.bloomberg.com/image/iCGI8fuw9BJw.jpg