Alphabet Inc Leadership Model and Organizational Structure

Alphabet Inc Leadership Model and Organizational Structure
Alphabet Inc Leadership Model and Organizational Structure

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Leadership Model and Organizational Structure

Background Information

Organizations today have recognized that their success and competitive nature relies on the need to heavily depend on information technology (IT) in enhancing their management practices. This has resulted in a demand for qualified IT leaders and professionals who have the capacity to increase the performance of an organization; an aspect that confronts the element of boundary spanning that requires the collaborative efforts of different users in ensuring the success of projects.

Alphabet Inc is one of the multinational conglomerates in America that was founded in October 2015. The company is an affiliate of Google among several other entities that bases its portfolio on life sciences, technology, research, and investment capital (Eshaq et.al. 2015).

Alphabet Inc Leadership Model and Organizational Structure

Alphabet Inc has a cross-functional organizational structure that uses the element of function as an approach in grouping its employees. The company has a developed engineering and design team, sales operators, and project management teams.

On the other hand, Alphabet also uses products as a form of grouping its employees and achieves this by grouping its employees in developing Nexus products and devices (Eshaq et.al.2015). Lastly, the employees of the organization are also grouped on the bases of its fiber business, an aspect that depicts the flatness of the company’s structure. This clearly indicates that the employees, groups and teams of this company have the capacity to bypass the management team and directly report to the CEO.

Alphabet’s structure is developed to prosper through its strong leadership systems that give its management independence in conducting the functions of the organization (Vaccaro, et.al.2012). Generally, the company’s model is based on an approach that gives the CIO an opportunity to run the business of the company. The CEO is assisted by manager’s who are tasked with handling the company’s capital allocations. They also ensure that the business functions of the organization are executed.

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Comparison and Contrast of Two Leadership Theories

The transactional leadership approach as employed in Alphabet Inc is a style that primarily maintains a normal flow of functions within an organization. Transactional leaders within this organization keep shifts afloat by incorporating disciplinary powers and incentives in an approach aimed at motivating employees to achieve their goals.

Alternatively, the transformational leadership approach incorporates approaches aimed at crafting strategies directed towards improving the performance and success levels of an organization, an aspect that draws its strength from collaboration, motivation and team-building within employees (Vaccaro, et.al.2012). It is imperative to acknowledge that both the transactional and transformational leadership styles ensure that leaders set their goals and motivational approaches aimed at ensuring subordinates achieve their goals while ensuring that opportunities are available in advancing their personal growth.

On the other hand, transactional leaders are not driven towards guiding an organization to a market position of leadership since the leaders are primarily focused on ensuring an organization flows in a smooth way daily (Zhiqiang Liu, et.al.2012). However, transformational leaders apply the element of charisma as an approach of inspiring their subordinates to achieve goals. This aspect is inspired by the inclusion of ideals, values, and morals in the process.

Table 1: Transaction and transformational leadership styles

 Transformational LeadershipTransactional Leadership
1Encourages change and thinking outside the boxWorks to maintain things the same, tends to avoid change
2Private and public acknowledgment of accomplishments – higher-level needsPunishments and rewards – low-level needs
3Concerned with ideas over processesConcerned with processes over ideas
4Delegates tasks for members to act in small groupings or independentlyMicro-manages teams to make sure that the set standards are attained
5Inspires followersDoes not inspire followers. Improves productivity

It is essential to establish that these two leadership theories are applicable to IT management leadership since transactional leaders have the capacity to address small operational details efficiently. In this case, it is essential to ascertain that transactional leaders build strong reputations within a marketplace through their efforts of ensuring the employees are productive (Zhiqiang Liu, et.al.2012).

However, a transformational leadership approach remains effective in IT management since it aids an organization to achieve its goals through a well-developed strategy that incorporates the element of team-building within the functions of an organization.

Leadership Theory Used In Alphabet Inc

Alphabet Inc believes in the transactional leadership model, an aspect that results in its leaders basing their style on transactions with their subjects. In this case, the leaders of this organization view their human relations as transactions, and thus rewards, reciprocates, and punishes their subjects as a basis of this approach (Norshima&Vimala, 2015). This approach gives the leaders of this organization an opportunity to emphasize on the importance of meeting their short-term goals. The employees are consequently required to adhere to the procedures and standards that are set by the organization.

In addition to this, the leaders of Alphabet invest in efforts aimed at enhancing the employee’s creativity, an aspect that has enabled the organization to improve its productivity and cut its costs. This leadership model is evident in the company’s functions since it makes its followers empowered, satisfied, and self-motivated in achieving their goals more than what is contained in their job descriptions (Norshima&Vimala, 2015).

Comparison and Contrast of Two Organizational Structure Models

The organizational structure of Alphabet Inc influences the manner in which the company conducts its functions. In accordance to how the company is organized, the organization incorporates the functional and product structure in order to meet its goals. In this case, it is essential to establish that an organization that is developed around a functional structure delivers its tasks based on the aligned skills and training of team’s and employee’s (Clegg, Kornberger, Pitsis, 2011).  This structure remains simple to explain to employees, customers, and suppliers while incorporating effective approaches of communication and problem solving since knowledge is identified and shared.

Figure 2: Functional Organizational Structure

In comparison to the product structure model, companies are attracted by responsive changes that occur as a result of the new trends in technology. This aspect enables such organizations to group employees and groups on the basis of skills and expertise, and is additionally supported by infrastructures within a unit.

On the other hand, the functional structure helps in the development of leaders and functional leaders, superiors, and peers that can be accessed within the functions of an organization (Clegg, et.al.2011). In contrast to this, the product structure ensures that the aspect of skill expansion and diversification can be incorporated within an organization. However, this model has the capacity to initiate unnecessary competitions internally between particular product groups and business units, an aspect that may be detrimental to the functions of an organization, and an aspect that may inhibit a negative implication in the IT industry.

Figure 3: Product Organizational Structure

Alphabets organizational structure allows the interaction between employees and their leaders, an aspect that makes them feel free to share their opinions and ideas. Innovation remains the centre piece of Alphabet Inc, thus requiring every employee to contribute innovative ideologies towards the development of the company (Clegg, et.al.2011).  In this case, the company is structured in a manner that supports the element of excellence and innovation through an approach that enables the employees to share their capabilities and ideas within the organization.

Organizational Structure Model used in Alphabet Inc.

Alphabet Inc is developed on the foundations of a simple organizational structure that is comprised of hierarchical functions consisting of executive leaders who have the capacity to delegate authority and responsibilities down to the leaders within the organization (Strese, et.al. 2016). This approach is effectively implemented in the company and allows the founders of the organization (Google) to direct its operations to the leadership of the organization in regulating the manner in which the organization operates.

This approach ensures the initiation of tight compliance approaches that requires the leaders within the organization to adhere to procedures and policies. The structure remains effective in Alphabet since it coordinates activities through its line of authority and slowly reacts of external factors since information travels up the chain of command in the organization and instructions are expected to travel back down (Strese, et.al.2016). This critically impacts the manner in which decisions are processes and the application of an efficient leadership style that matches the structure of the company.

The Relationship between Leadership Style and Organizational Structure

Alphabet Inc builds its competitive advantage is critically seen in its approach to enhance and enlarge its functions through the company’s organizational structure.  In this case, it is important to note that Alphabets IT governance changes require that the company makes its decisions to organize its processes and efficiently define its organizational culture (Strese, et.al.2016).

The leadership style of Alphabet Inc influences the culture of the organization as detailed in its vision. On the other hand, the leadership element shapes the manner in which values and morals are instilled within the organization that defines the manner in which employees conduct themselves.Decisions within the company are made by the leaders who make consultations from teams, an aspect that is evident in the top down system in which decisions are made by the senior management and the implemented down (Strese, et.al.2016).

For instance, when the company undergoes some management problems, the leaders within the organization conduit a solution to such a problem and additionally acts as adapters to these factors. Once the decisions are arrived at, the company dispenses the solution to the bottom leaders who are expected to implement these solutions within the organization.

References

Clegg, S., Kornberger, M., Pitsis, T. (2011).Managing & Organizations: An Introduction to the Theory & Practice, 3rd Edition, London: Sage Publications Ltd Cunliffe. Retrived From: http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=3985839&site=ehost-live

Eshaq M. Al Shaar, Shadi Ahmed Khattab, RaedNaserAlkaied, &Abdelkareem Q. Manna (2015). The Effect of Top Management Support on Innovation: the Mediating Role of Synergy between Organizational Structure and Information Technology. Leadership Quarterly.Retrived From:www.irmbrjournal.com

NorshimaHumaidi&VimalaBalakrishnan (2015): Leadership Styles and Information Security Compliance Behavior: The Mediator Effect of Information Security Awareness. International Journal of Information and Education Technology, Vol. 5, No. 4, April 2015

Strese, S., Meuer, M. W., Flatten, T. C., &Brettel, M. (2016). Organizational antecedents of cross-functional coopetition: The impact of leadership and organizational structure on cross-functional coopetition. Industrial Marketing Management, 5342-55. doi:10.1016/j.indmarman.2015.11.006. Retrived From: http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=112743859&site=ehost-live

Vaccaro, I.G., Jansen, J.P., Van Den Bosch, F.A. J., and Volberda, H.W.(2012). Management innovationand leadership: the moderating role of organizational size. Journal of Management Studies, 49(1), 28-67

Zhiqiang Liu, ZhenyaoCai, Ji Li, Shengping Shi &Yongqing Fang (2012): Leadership style and employee turnover intentions: a social identity perspective. Retrived From: www.emeraldinsight.com/1362-0436.htm

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