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Restrictive covenants

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Table of Contents

Introduction. 3

Restrictive covenants. 3

Access and use of technology. 4

Use of confidential information. 4

Transfer of intellectual property work product 5

Performance evaluation. 5

Discrimination. 6

Health and safety standards. 6

Conclusion. 7

References. 8

 

 

 

 

 

 

 

 

 

 

 

Introduction

Every company has specific policies that control the overall performance of the employees, and these policies help determine the success of a company. Among the rules may include the signing of the restrictive agreements between the employer and the employees, right of employees to access private information and technology, health and safety methods, how the company will be evaluating the performance of the employees, and so on. Amazon, which is an online retail shop that deals with various products like electronics, clothes, home care products, and so forth, will be my case study.

Restrictive covenants

The Amazon Company has a non-compete contract whereby, when the workers sign it, they pledge not to support the manufacture, sale, or marketing of any services or products that compete with Amazon, either in the present or in the future. This policy is applicable in the next eighteen months after the employee has left the company. This policy is instituted by Amazon to protect its position as the leading online store. However, this policy can demotivate the employees where they feel that their chances of future employment have been limited and their desire for job ownership and skills development has been dimmed (Omir and Lobel, 2014) which might later lead to a downfall of the company. As seen in the state of Washington, a worker protection initiative was launched where the attorney general prosecuted to do away non-compete contracts in a Seattle-area coffee chain that limited employees from working at any competitive coffee shop in the northern part of Washington (Martinez, Lee, Donahue, Rigney and Smith, 2020). I would, therefore, suggest that this policy be reviewed. Workers to be given the freedom to work where they please after they leave the company.

Access and use of technology

Amazon is an online store that requires it to use the highest mode of technology. The company has modified the working environment for the workers where it has enabled them to access the technology. Technology assists in processes like packaging and algorithms whereby the workers are assured of accurate deliveries. Amazon has had innovations in technology like Amazon Robotics that has led to the invention in logistics on behalf of the customers and the employees. The evolution in technology has enabled Amazon to reach widely and satisfy its customer’s needs. From my point of view, for all the employees to be conversant with the current technology, the company should invest in training them and guiding them on how to use the technology. By so doing, there will be a vast improvement in all the departments in the company. This will also lead to more sales and profits (Tabrizi, Lam, Girard, and Irvin, 2019).

Use of confidential information

Confidential information in Amazon Company is meant not to be exposed, neither by the employees nor third parties. The information provided to the employees remains secret, which is also indicated in the contract. Violation of the rule might lead to harsh measures or even termination of the contract. This might as well damage the image of the one violating the rules making it difficult for them to secure future jobs. The company has also enabled access to software and information technologies to the employees. To help improve, or rather, protect this information from landing on the wrong ears, the company should incorporate digital rights management that will enable them to inhibit the loss of confidential information in cases of digital attacks and violations by workers. It should also appoint a few trustees that will be entrusted with the data.

Transfer of intellectual property work product

The creation of intellectual product rights includes developing trademarks, obtaining patents, and understanding copyright. The Amazon Company has implemented new systems that will protect its sellers from dealing with counterfeits. For example, the company has launched a Project Zero program that will enable dealers to eliminate infringing listings directly. It has indicated in their policy that no online sellers should use their images or cut and paste the text on their listing (Karich, 2019). Though incorporating these policies in the company is a brilliant idea, I would also encourage it to publicize these policies to provide knowledge to their customers as it is to the sellers of their original products and avoid counterfeits. For instance, in the case of Helsinn Healthcare S.A. v. Teva Pharmaceuticals USA Inc., the Supreme Court’s ruling was inventors should proceed to observe caution when carrying out transactions that involved their patented inventions before filing the patent applications for the specific designs (Loh, 2019).

Performance evaluation

Every organization uses a different process to evaluate the employee’s performance. Amazon has developed a mechanism, white paper for performance evaluation of its employees. This mechanism entails a worker coming up with an idea and writing it down on a white paper; after that, team members will sit and discuss the white paper. This process has made Amazon develop an incredible track record of successfully launching new products. The mechanism is also a core part of the Amazon promotion process and a pay rise. As opposed to other companies where employees are promoted based on their success and accomplishments, employees in Amazon are evaluated based on their growth in the company. To add to this, I would also ask the company to boost the everyday performance of its employees. Engaging the workers in open-ended questions will give a green light on which areas individuals need improvement, which will also lead to effective performance.

Discrimination

Discrimination in workplaces has been experienced based on race, gender, or religion. In Amazon, bias has been evident when the Muslim employees are given minimal or no time for prayer. Workers are offered a twenty minutes break for prayer with compensation, and no payment may they exceed the time limit. This has demotivated the Muslim workers and at some point, led to them protesting. The majority of the women in the company claim their religious rights were violated, and the white employees were prioritized for promotions while the other workers protested (Blumberg, 2019). To curb the situation and exercise equality to all workers, I would suggest that Amazon develop a policy whereby all the employees will have equal treatment and evaluation in the promotion process despite their race, religion, or gender. This will create a unified working environment that will motivate the workers resulting in the success of the company.

Health and safety standards

According to the multi-billion dollar e-commerce giant, the employees in Amazon receive ergonomic assessments, attend safety schools, and every facility in the company consists of a “robust safety program”.

Despite these measures, Amazon has experienced various cases of injuries from its workers, either as a result of loose protection measures, poorly fitted equipment, or even longer working hours that leads to fatigue and eventually poor performance. Several fatal cases have been reported due to unsafe working conditions (Valentic, 2018). To avoid such cases, I would suggest that Amazon invest in safety measures and create a friendly working environment and favourable working hours for the workers. This will not only benefit the employees but also increase productivity, thus large profits.

Conclusion

As many companies are striving for success, they should consider several critical factors like restrictive covenants, use of technology, performance evaluation, avoiding discrimination, and assuring good health and safety standards towards their employees to run successfully. These factors determine the productivity of a company as they are the key motivators for the workers. Working to improve in every sector will highly increase profits.

 

References

Amir O. and Lobel O., (2014). ‘How Noncompetes Stifle Performance’, Harvard Business Review (Jan 2014), https://hbr.org/2014/01/how-noncompetes-stifle-performance

 

Karich E., (2019). Understanding the I.P. Policy Changes Coming to Amazon Sellers. Retrieved from https://www.ecommercetimes.com/story/86146.html

 

Blumberg A., (2019). Amazon Faces Another Claim it Discriminated Against Workers. Retrieved from https://www.huffpost.com/entry/amazon-muslim-workers-discrimination-complaint_n_5cd35615e4b09f321bdb6836.

 

Valentic S., (2018). Does Amazon Care About Workers Safety? Retrieved from https://www.ehstoday.com/safety/article/21919916/does-amazon-care-about-worker-safety

 

Tabrizi Ed B., Girard L., and Irvin V., (2019). ‘Digital Transformation Is Not About Technology’, Harvard Business Review, https://hbr.org/2019/03/digital-transformation-is-not-about-technology

Loh, C. (2019). The Most Important U.S. Patent Cases of 2019 Thus Far. Retrieved from https://www.venable.com/insights/publications/2019/08/the-most-important-us-patent-cases-of-2019-thus

Martinez M., Lee S., Donahue L., Rigney E., and Smith B. (2020). Competition in U.S. Labour Markets: Non-Compete Clauses Increasingly Under Fire. Retrieved from https://www.natlawreview.com/article/competition-us-labor-markets-non-compete-clauses-increasingly-under-fire

 

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