Google’s Control Mechanisms Today, Google is the company that reinvented management methods, the way people work, how to organizations and how to manage people. Control mechanisms are used for many purposes in business management. The control mechanism’s job is to control any process to help directing activities of employees toward the achievement of organizational goals. Google took advantage of old way of control mechanisms, and change it to an efficient way that results increase in productivity, and encourage innovation. Google takes advantage of control mechanisms such bureaucratic control system, approaches bureaucratic control, budgetary control, and finally financial control Four Types of control Mechanisms “Bureaucratic control (or formal) control systems are designed to measure progress toward set performance goals and, if necessary, to apply corrective measures to ensure that performance achieves managers’ objectives” (Bateman & Snell, 2009, p. 658). Every organization has goals from making big profit to good customer service that satisfy customers. Google’s setting performance standard is to hire people that are smart and determined, the company favor ability over experience, this policy helped the company to increase its market capital from $153.4billion as October 2009 to $163 billion November 2010. Feedforward Control is one of the three Approaches to Bureaucratic Control. “Feedforward control takes place before operation control before operations begin and includes policies, procedures, and rules designed to ensure that planned activities are carried out properly” (Bateman & Snell, 2009, p. 657). Google’s policy is to offer a range of perks and benefit to attract and keep employee for a long time. Fundamental Budgetary consideration, “in private industry budgetary control try begins with an estimate sale and expected income” (Bateman & Snell, 2009, p. 600). Google expected to sell 500,000 of the recently announced G1 phones for T-Mobile. Android lunches $500 million for the company in 2008. Finally financial control, “The balance sheet shows the financial picture of a company at a given time. This statement itemizes three elements: (1) assets, (2) liabilities, and (3) stockholders equity” (Bateman & Snell, 2009, P. 560). In 2009 the company’s revenue is $23.651 billion. Compare and Contrast and Determining the Effectiveness of Controls Comparing and contrasting Google’s control mechanisms, the comparison begins with Google’s balance sheet. The balance sheet shows the financial picture of Google at a given time (Bateman & Shell, 2009). Google’s balance sheet consists of the company’s assets, liabilities, and stockholders equity. Comparing the balance sheet to the profit and loss statement, the balance sheet gives a financial look of Google’s assets, where the profit and loss statement shows the itemized financial statement of the income and expenses of Google’s operations. The profit and loss statement is standard for measuring a department’s performance. The two control mechanisms are essential to the overall success of Google. Both Google’s balance sheet and profit and loss statement shows how effective Google’s activities are going as planned or not. To complete the financial control the financial ratio are included. Google’s financial ratio consists of the overall performance of the company measured in ratios. Key ratios are calculated from specific items on the profit and loss statement and the company’s balance sheets. These ratios mainly consist of liquidity ratios, leverage ratios, and profitability ratios. The major contrasts between financial ratios and balance sheets or profit and loss statements are financial ratios are measured monthly, quarterly, or yearly, causing management myopia (Bateman & Shell, 2009). This means managers focus on short-term goals instead of long-term goals resulting in poor performance for the company. Comparing each financial goal, each element is similar when getting the overall snapshot of the company’s performance. The contrast is each component is necessary and one is not more important than the other. Finally, when comparing and contrasting Google’s budgetary control and Bureaucratic control consisting of feedforward control and measuring performance, the comparison is similar to the financial control. The Budgetary control and Bureaucratic control are designed to accomplish the financial goals. With these measurement in place, the effectiveness of each control mechanism allows Google to continual develop successful strategies year after year. Positive and Negative Reactions to Controls What is positive about the use of a balance sheet is the financial picture it shows, including stockholder’s equity, as it relates to Google. This financial control statement is particularly useful to Google because the company takes its responsibility to its stockholders “very seriously” (Google Corporate Information, 2012, Investor Relations). As transparency is vital to maintaining good business relationships with stockholders, Google equips itself with a balance sheet to answer financial inquiries. Google’s managers also benefit because a balance sheet gives them greater insight to the execution and accomplishments of the company as well as where changes may be needed. Financial ratios provide performance standards and indicators of what has occurred but have negative consequences when solely relied on (Bateman & Snell, 2009). Focusing on short-term earnings and profits impairs long-term strategic obligations. Short-term focus also reduces the importance of the processes of some departments that should be considered important and included in calculations. Therefore, this financial control is better suited when used with other methods. Budgetary controls are positive uses because they are not limited to finances and the flow of money in and out of organizations. Departments in which it makes sense to use units versus financial data can benefit, for example, from a production budget. Feedforward controls are of positive use to Google and any business that wants to limit future problems with the use of formal procedures and rules and legal and ethical guidelines. Google (2012) employs a “Code of Conduct” that consists of a preface, seven sections, and multiple points within those sections, and a conclusion. The Code also specifies who must follow the code and who to contact with Code related questions and concerns. There is a “No Retaliation” clause as well. Feedforward controls establish a trustworthiness of companies as they demonstrate how employees are expected to behave responsibly. How these controls affect the four functions of management. Google is one of the most successful businesses to come around in recent years. They have been successful by having a very defined mission and sticking to it. To provide the best user experience possible. Bureaucratic control is using rules, guidelines, and standers to measure each employee’s talents and the company’s growth. Developing these things in place makes it easy for Google to coach and mentor employees and holds everyone accountable to these standards. Google posted 10 things they know to be true on their website. One is the focus on the user, and the rest will follow, meaning Google will put the majority of their focus on the product, which is Google’s web site for users to search the web on ("Ten Things We Know To Be True", 2012.) Number nine states they can be serious without a suit. Google founders believe work should always be a challenge and that challenge should be fun. Google provides a creative and a team atmosphere, recognizing individual accomplishments. Google wants its employees to think outside the box they want innovation to help build the company and the possibility ("Ten Things We Know To Be True 2012.) Number 10 states being good at something should be a starting point on how to get better ("Ten Things We Know To Be True", 2012.) Google is always thinking ahead and how they stay on top of a computer industry that has as much or more competition as any other industry. Google will use feedback control after the project is over to see what changes they need to make. Google was founded on innovation and innovating leaders and will continue. Google represents a company that leads by example; they exemplify what a successful company looks like with innovation that starts at the top and streams down to the empowered employee. To focus on the mission of providing the best user-friendly website; Google can have continued success through effective organization management from operations to decision making. Google will only go as far as the leaders they have in place and judging by the huge success they are having they have the right people in place.

References Bateman, T. S., and, Snell, S. A. (2009). Management: Leading & collaborating in a competitive world (8th ed.). Boston, MA: McGraw-Hill Irwin.
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