Thursday, July 25, 2013

Business should hire employees for life. Agree or disagree?


Business should hire employees for life. Agree or disagree?
             
             Companies environment are changing very quickly these days.  Those changes are a result of how fast economy is changing. Today companies have to deal with new models of business, introducing changes in products and operations to maintain or improve companies’ financial results.  It will become difficult to maintain employees for life if companies have to change the ways they approach business changes during short or long periods of time. For Example, Motorola, a big American company based on telecommunication technology, is now owned by Google, who has a completely different model of how to approach telecommunication technology business. As a consequence of the new business model imposed by Google, four thousand Motorola’s employees around the world were fired.


            Google’s model of business is based in Android Operating System and it is oriented to compete with Apple´s Iphone and other Android based smart phones in the market now. On the contrary of Motorola, Google is pointing out to produce a very few models of phones and tablets. This approach of business is different from what Motorola use to have as business model: To have several models of phones and tablets using several Operating Systems. In this case, a giant company like Google engaged in appropriates another corporation in financial trouble (Motorola) to take advantage of patents, because they were behind schedule in the android for mobiles and tablets market. This Google strategy shows a way of developing a product using a fast track behavior. Google also bought Motorola image as a worldwide leader in mobiles devices in order to use the Motorola trademark and prestige as the perfect complement to Google innovative approach.
       
            This example shows how business models are constantly changing, and how the old style of having employees for life contradicts modern business strategies. It also states how new tendencies in the market (smart phones fever) impact directly product development timelines and how products should be ready in order to catch the market at the right time.
            Moreover, it is a fact that today technology changes so fast, that old employees will not have the skills to deal with new facets of new business tendencies unless companies spend money keeping employees updated with the new age of technology.  This approach should be evaluated against budget impact and the approach of contracting new employees already trained to improve financial feasibility of new product projects and the effectiveness of results.
            In conclusion, we can say that keeping employees for life in a company has turned to be a less desirable policy for large corporations in modern business managing. The Google case, clearly states how corporations generate changes in business approaches and product developing strategies in order to maintain market competition and how such changes impact employees careers.

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