Problem Solution: Global Communications
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Problem Solution: Global Communications
Global Communications is facing difficult times. In the last three years they have seen their stock decline almost 60%. Competition from local and long distance providers and the entrance of cable companies into the communication arena, has contributed to the decline seen at Global Communication. To correct this, the senior leadership team devised a growth strategy to help Global become more competitive and responsive to its customers. However, a new problem was created because of this strategy. The new growth plan caused conflict between the senior leadership team and the Technologies Workers Union.
The senior leadership team saw opportunities to regain market share by forming partnerships, outsourcing labor, and focusing on new markets. They continue to be committed to growing the companys brand internationally. The new partnerships will allow Global to have access to new technologies needed to compete and grow. Outsourcing their technical call center provides an immediate cost savings. Additional benefits to outsourcing include an increase in technical knowledge from support and an international presence in two other countries, India and Ireland. Focusing on new markets can add additional revenue streams for different service offerings and create new up-sell opportunities.
In order to provide a business solution that guides Global Communication, an in-depth analysis is critical. Global Communications internal communication requires examination. Obvious communication issues can be addressed with a thorough understanding of the flow of information. These major changes occurring at Global Communication affect everyone. Employees commitment and emotional intelligence are important to gauge. This will allow Global to be in touch with needs and concerns of employees and address problems. By using a sound problem-solving process, Global Communication can resolve current problems it faces while providing precedence when facing future issues.
Situation Analysis
Issue and Opportunity Identification
The senior leadership team picked consumer customers and small businesses as new targets to provide services as well as ramping up its focus on globalization. Competition from traditional communications companies and the entrance of cable companies into the industry has prodded Global Communication to urgency. This compels senior leadership to compose a business plan to best compete and grow in the industry.
The senior leadership team created conflict within the company because they failed to involve and may have avoided some of the stakeholders. Kreitner and Kinicki (2004) maintain that avoidance can be appropriate for trivial issues because it buys time. Avoidance provides a temporary fix, but sidesteps the underlying problem (p. 500). By avoiding the Technologies Workers Union, the leadership team bypassed a stakeholder that would have slowed down the process for approval of the growth plan.
The plan was presented to the board of directors and accepted. Conflict could no longer be avoided as the Technologies Workers Union became aware of the changes through the grapevine. Although the approval of the growth plan was expedited through avoidance, the implementation may have been hindered by the exclusion of stakeholders. “To ensure that the implementation of the decision goes smoothly, effective managers must consider all stakeholders. Otherwise, stakeholders forced to accept choices they oppose will not be committed to the decision and may even try to undermine it.” (Gomez-Mejia & Balkin, 2002, p. 210)
The senior leadership team moved quickly to meet with the Union liaison to bring everyone up to speed on the approval of the plan. Prior to this meeting, one of the management team members expressed the importance to meet quickly with the Union so they would not hear about the plan through the grapevine. “Grapevine information is sometimes so distorted that it escalates rather than reduces employee anxiety. This is most likely to occur when the original information is transmitted through several people rather than through one or two people.” (McShane & Von Glinow, 2004, p. 345-346).
Previous negotiations have left the Technologies Workers Union with the belief that they have been taken advantage of with the reduction of benefits. The Union felt disrespected and uneasy with how the plans creation and acceptance transpired. Their anxiety was fueled by the manner in which the news of the growth plan/employee reduction was delivered, and the fact they had not been involved with the creation of the plan. To protect its interests, The Union promised to take action through the government and other legal avenues.
The decision by senior leadership to present a one-sided plan to the board without the consultation of the Union created dysfunctional conflict, a detriment to the companys wellbeing (Kinicki & Kreitner, 2004, p. 487). The senior leadership team focused narrowly on the acceptance of the plan by the board and overlooked other elements, such as stakeholders, which are ultimately needed for a successful implementation. After the quick blessing from the board, mismanagement of communication fueled a disagreement that may have been amicably solved. Instead, they created another problem and caused a publicity blunder.
The senior leadership team should have taken a step back and collaboratively worked on a solution with the Union on their current plan. Cooperative conflict should be the approach the senior leadership team employs. This approach allows each side to see the others position and work together to create value for both (Kinicki & Kreitner, 2004, p. 488).
Based on the emerging needs of the consumer customer and small business segment, Global Communication plans to expand its service offerings to meet the needs of these markets. The new service offerings would be obtained through relationships with satellite and wireless providers.
To cut cost and gain competitive technical skills in its call center, the plan called for outsourcing Global Communications call center to India and Ireland. This aggressive move made call handling 40% more cost effective. Though an immediate impact in operating cost will be realized, the reduction in workforce may pose another issue with current employees. Their commitment may be at risk. “Layoff threats are one of the greatest detriments to employee loyalty, even among those whose jobs are not immediately at risk.”(McShane & Von Glinow, 2004, p.128)
Stakeholder Perspectives/Ethical Dilemmas
Five stakeholder groups have an interest in the success of Global Communication. They are