Factors Affecting an Organization
BUSI 2023 – Business Law
Strategic planning is the best tool to manage an organization. Strategic planning cannot be effective if some factors which directly or indirectly affect an organization are not addressed. These factors include determining what should be changed, and how the change might affect the entire organization (Robbins, et al., 2014). The effectiveness of any organization will depend on, technology, structure and the people. Under the kind of change that an organization should make include change people, structure and technology. In that regard, for an organization to maximize its effectiveness, the suitable people must be given the technology needed and the structure that is most appropriate to them so that they can execute their mandate effectively (Tafoya, 2017). The above strategy is the major determinant of the effectiveness of an organization. Organizations do not suffer from the same challenges, but some challenges are evident in some organizations and not others; some of these challenges include, restrictive covenants which include non-competition, non- solicitation provision, access and the use of the technology resources available, access and use of the confidential and proprietary information, the transfer of the intellectual property work product, evaluation of performance, discrimination and health and safety standards. All the factors mentioned above will be discussed in this case study and to what extent they affect an organization.
A non-compete covenant also referred to as an agreement is a written legal contract between an employee and their employers. Organizations and employees enter into a non-compete agreement when an organization or company considers certain information or technology to be valuable and integral to their success. This agreement demands that an employee shall never share the information or technology of his company during their work, after retirement, or get employed by their competitors. The employee is even prohibited from opening or aiding other individuals in opening organizations or companies that might use the technology. For employees of an organization with the knowledge of their technology, customers, and strategic information are an attractive asset to other competing organizations. To protect this valuable information the organization opts to get into a restrictive covenant with its stuff. This has been the case with Samsung Company, which is a leading smartphone developer in the globe, to ensure that their technology is not lost on their competitors; as a result those employees who agreed to get into a restrictive covenant with the company ended up receiving some commission in respect to their restrictive agreement with Samsung Company.
Access and use of technology resources
Samsung is the most dedicated digital technology company in making a better world for all its customers through access to their advanced technology, constant innovation, and competitive products. They have been in this field for not less than seventy years; as a result, they have studied the market better than any other company and knows what needs to be done for them to be the boss in this highly competitive business. They have developed proper channels to connect and communicate with their customers on a personal level. Mathew Moller, Samsung’s Director of Digital Engagement, had the intention of developing Samsung’s connection with partners and customers who owned their products, as well as nurture their relationship by providing their engaging experience in the company’s website. His idea was adopted by the management team of the company, and an account was created for their customers and partners to gain access to their technology resources; as a result, many customers were attracted to the transparency that the company had created raising their perception and reputation. After Samsung evaluated their vendor solutions, they decided to launch the Janrain Management Platform with the aim of building relations, increasing the customer participation in the site and improving the creation process of the account.
Access use of confidential and proprietary information
Samsung has always been confronted with a series of a litany of challenges. It has been challenging for Samsung to know where exactly to begin in prioritizing their challenges. Some of these challenges are as a result of their confidential and proprietary information getting to their competitors. In 2012, Samsung was sued by Apple for infringing into their technology when they developed their tablets and smartphones, as a result, came up with counter cases that it was indeed Apple Company who had used their technology without their consent. The case was ruled in favor of Apple and Samsung had to pay $ 1 billion to cater for the damages that Apple occurred during that period (Tafoya, 2017).
Transfer of intellectual property work product
Samsung has a reputation for hiring and investing in employees who have the intelligence of developing new products, develop new markets, create new technology, and improve processes in the company. With such an investment, it should not be a surprise to realize that the company has all the rights to claim any intellectual property that has been created by its employees in the course of their work (Tafoya, 2017). Samsung has achieved this by making their employees sign a restrictive contract with them, and in return, their remunerations are made more attractive compared to that of other employees. However, if an employee comes up with an intellectual property and it was not in the course of their employment then it will belong to the employee, but they can still sell their patent rights to the company if they wish to do so. These principles have always been a challenge to the employers and employees as one party tries to manipulate the other.
Samsung has developed the philosophy of “People First” this is about both the customers and the employees. Samsung has been active in sourcing for great minds across the globe to work for them. As a result, they have a pool of knowledgeable people working for them. This has enabled to improve the performance of its employees, and it is the reason that they are second to no other company. They have incentives to motivate their employees such as; events and employee communication, training and development programs and benefits and compensations.
Like earlier stated, Samsung looks for professional works from all corners of the earth. This has greatly helped in bringing people together from different places and share ideas which will make them come up with products that will suit everyone regardless of where they come from. Due to this, the company has been able to curb discrimination by making all the employees feel valued and respect like any other (Tafoya, 2017). Unfortunately their Galaxy Note 7 smartphone landed them in trouble. The CCTV, China's state broadcaster termed the behavior of Samsung towards their consumers in China as discriminative. Samsung issued a video apology to their consumers in the US, but for China, they only issued a brief statement saying that their phones did not need to be replaced and they could manage with the problem which angered many of their consumers in China (Song & Ki, 2014).
Health and safety standards
Samsung provides their employees with the necessary tools and gears to do their job effectively ensuring that they are not subjected to any harm or risk. This is in accordance with the laws enacted in various countries to safeguard workers in their workplaces (Robbins, et al., 2014). Their consumers are also advised on how to use their gadgets best to prevent any potential harm or risk to their devices or them. In that regard, the company has ensured that both the consumer and their employees are safe and are not prone to any potential risk.
Running an organization or a company has never been an easy task. Both internal and external factors play a major role in the success of a company. The managing team of any company or organization should ensure there is harmony between the employees and the company as well as between the company and their customers.
Robbins, S., Bergman, R., Stagg, I., & Coulter, M. (2014). Management VS. Sydney: Pearson Education Australia.
Song, C., & Yi, K. (2014). The Samsung way: Transformational management strategies from the world leader in innovation and design.
Tafoya, D. W. (2017). Managing organizational crisis and brand trauma.
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