Situation Analysis And Problem Statement: Global Communications
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The world of communications within a global environment is pertinent due to the effectiveness of communications and how communication has been compared with corporate operations. In various companies such as Ford Motor Company, morale has become low due to layoffs, poor technology, outsourcing of jobs overseas, including relocated in an entire different state, profitability, reduction of employee benefits and salary cuts (Martin and Davidson, 2006). Global Communications, once a leader in the forefront of communications has adopted an orthodox business agenda in order to remain competive, has managed to emphasize the greatness of communication, especially amongst company stakeholders. Global Communications is now faced with a 50% loss of capital, loss of stock valued now at $11 versus the $28 per share three years ago at trading. Communication compositeness from other companies such as MCI, Sprint, and Time Warner- better known as a cable TV conglomerate has taken control of the communication arena and now has left Global at the back as a top ranking business in communications. Consumers decided to take their services elsewhere, to a newer and more improved communications market, somewhere to receive better products and services. In order to compete with other companies in communication, Global along with its executive staff, has decided to devise a plan and strategically go forth with this new “agenda”. In this new and improved plan, Global has initiated a program that would introduce new services to residential customers as well as business clientele. Global has partnered with a major Satellite provider and the senior executives have identified cost-cutting ideas, along with outsourcing several call centers to Ireland and India.
Describe the Situation
With the move of the domestic call centers overseas, there are plans of downsizing of employees, many who has dedicated years of service to Global Communications, relocation of employees with the possibility of salaries reduced by 10% annually. Education benefits along with health benefits have already been reduced by 20%, which has left a bad taste in some employees mouths. Senior management did not consult with junior executives, Union representatives or employees before making a final decision to outsource jobs overseas or even giving employees an inkling of what some of the possibilities that could occur surrounding the companies decisions. Now morale is low among the employees of Global, trust has disappeared between employees, the union and Global. Talks of employees going on strike, some employees are threatening to sue Global on various issues, and some employees are deciding to quit on their own freewill. Things have become tougher for Global, which is now beginning to become a war zone along with the power struggles internally. Neither Global nor senior executives were prepared for the kayos that are going on with the company. First, senior management must devise a plan to minimize the low morale employees are exhibiting; secondly, the company will be challenged with communication with employees in Ireland and India. It may be difficult for Global Communications, due to the language barriers, ethnic differences (customs of each country) and inter-continental barriers. Thirdly, the union feels that the contract it holds with Global Communications has been breached and the union feels deceived. Non union employees such as junior executives feel them to have been deceived and also feel that they were pawns for Global Communications. With stock depreciating 50% within the last three years, Global executives had to devise a plan that they felt would be quick and effective with the least amount of cost to the company, which they did but without the thought of morale of the employees. The plan that consisted of outsourcing and pay cuts, with an already 20% reduction of employee benefits, mostly due to the lack of profits within the last six months, added fuel to the fire. Global decided first to partner with a major Satellite company-Namrarics based out of Raleigh, North Carolina with hopes to boost sales and increase profits was the first step, first to small businesses than to the residential consumer, and to introduce new call features to consumers such as caller ID Deluxe, like their competitor, Bellsouth, Pacific Bell, and Atlantic Bell (Bell company, 1997) and broadband internet access such as Time Warner/Comcast Cable company (Atlanta, Georgia 1999). With new technology such as new features along with enhanced and improved services, Global has hopes that they will once again be one of the leaders in communication and technology.
Stakeholder Perspectives/Ethical Dilemmas
Global Communications must analyze, evaluate and approach all of the issues head on. Global must take into consideration of the care of employees and any decision will affect the status of employment and or a reduction of employees pay, which will constitute the low morale of employees. Analyzing the issues at hand will be the only way for Global to be certain it has the correct issue to be discussed, especially surrounding the low morale factor. According to cio.com (Rick Chapman, 2006), “lack of communication and bad management or lack of confidence in management are the biggest causes of low morale. It does not matter what the economy is like.” High quality of work and good work ethic provides good customer service as well as loyalty and Global Communications has not been able to keep their employees happy. Global has not given the stakeholders-the employees, their families, the consumers and neighborhood the opportunity to express their opinions and or ideas to make the company more profitable and to keep their jobs from being outsourced. As a result from non communication between stakeholders and Global, employees are now angry and even feel alienated about the situation. Global also failed to listen to the individuals who work the domestic call centers, whose interest is at heart and now at stake with the company. Employees did not get the respect that they