Yandex is a Russia based company that started operations in 1990 by Arkady Volozh and Ilya Segalovich. It is the second largest web portal in the world that is non English. Since inception, the company has always focused on innovation and product development. Today, the company has 7 million frequent visitors, and the number is expected to grow in the future. By 2009, the company expanded into other geographical regions such as Moscow, St. Petersburg, Kiev and others and employs 1600 employees.
The major activity of Russia is to provide Russian speakers with the answers to all their questions. It is the leading search engine across Russia (Iivari 2002, p. 9). Other than that, Yandex's main focus is on innovation. It launches creative services for its customers now and then. Yandex is not involved in content production. It just creates technology that helps in the most reliable search of information. The major revenue generation activity for Yandex is its text based advertising. Yandex is based on the philosophies that the potential for monetization of any service is secondary to the importance of focusing on the customers' needs, it believes in creating partnerships. Yandex strives to gain customer lifetime value by providing them superior service.
Analysis
Organizational Development
Donald R. Brown gave a five stage process of organizational development. The first stage starts with anticipating a need for change. For Yandex, there was a need to move from a formalized system of work to an informal setting where each employee is at comfort and can give the best of his abilities to the organization. A programmer's work is an art, so they need a work environment which is relaxing yet very competitive. In the second stage, when bringing about a change in the organization, there is a need to communicate the idea. It is because of this reason that the new culture at Yandex requires that every single employee should involve as many people in his project as possible. The third stage of organizational development involves the diagnostic process. Here, you identify key problem areas (Erez 2004, p. 584). The problem with the organizational culture at Yandex is that, on one hand, it is a much formalized company and on the other hand, the decision making is very informal where all employees are involved and are free to criticize. Hence, researcher D. hock proposed a leadership strategy for Yandex marked by chaotic order, whereby everything works on a self regulating mechanism.
In the fourth stage, you develop action plans. For this reason, Yandex made several changes in its human resource policy. It revised its recruitment policy to include only people who will stay with the organization. For instance, the turnover in the sales division was very high, so Yandex ensures that they hire the pool of candidates who wish to stay with the ...