IBM AND GOOGLE 4
Thecosts incurred in the production of goods and services have a bearingon the profitability of a company. This is especially with regard tothe salaries and remuneration offered to employees. It is, therefore,understandable that IBM would target these in its efforts to cut itscosts. However, I do not agree with the strategy that IBM used, whereit re-classified thousands of its technical employees from non-exemptto exempt status so as to eliminate the requirement that they receivepayment for overtime. Exempt employees are usually required todedicate the time required to complete their tasks irrespective ofthe hours needed. This was, therefore, unfair as employees shouldhave a say on any change in their status (Nikolai,2013).On the same note, it is always imperative that organizations involvetheir employees in making decisions that have a direct effect onthem. In the case of IBM, the company went against its valuestatement that outlines its dedication to “trustand personal responsibility in all relationships”.This was the same case in its pension dispute where two individualswho got into the company at the same time and worked in the samelevel for the same number of years would have different pensionpayments, with the younger one getting a bigger share than the olderone (Nikolai,2013).This 1999 pension policy seemed to be discriminatory to the olderemployees. Of particular note is the fact that the policy was to bebased on age rather than any merit.
Google’sactions in wearing down the competition seemed to contradict itsmotto “Don’t be evil”. The search engine reduced the rankingsof its competitor, KindleStart to zero as the later, which was asearch engine and directory for information pertaining to childrenseemed to compete with Google in some aspects. I do not support theactions of Google against KindleStart. Rather than come up with suchunfair tactics, the company should have devised ways of coming upwith competitive products that are innovative enough to outwitKindleStart’s prospects (Nikolai,2013).It goes without saying that Google’s tactics had a bearing on itsreputation as they created the impression that the company is farfrom ethical. Of particular note is the fact that its actions mayhave reduced KindleStart’s advertising business by about 70%.
Nikolai,B.J (2013). ACPIAC CS EBK FOR Undergraduate Accounting Capstone 1 YEAR,11th ed. New York: Cengage