Global Communications Problem Solution
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Problem Solution: Global Communications
Global Communications is going through difficult times due to low confidence in telecommunication industry, diminishing returns to stockholders and increased competition from other players. To solve the problems, senior leadership has taken new initiatives which will increase business and customers locally. As part of cost cutting measures, some of call center operations will be outsourced to India and Ireland where resources with higher technical sophistication can be found at lower cost. They had good strategy to solve the problems but they failed to properly manage communications between stakeholders. They did not introduce any development programs to help employees take up new carrier opportunities. Global Communications was not very well prepared to handle “Workplace Emotions and Attitudes” (McShane & Glinow, 2004). They did not plan to handle the resistance of employees and the union towards outsourcing jobs overseas.
Global Communications should have done more thorough planning to implement the new strategies by taking all the stakeholders into confidence. The company should have taken measures to build up employee morale and commitment.
Describe the Situation
Issue and Opportunity Identification
Global Communications is in a difficult situation due to lost confidence in telecommunication industry, reduced return to shareholders, increased competition and lower profit margins. All these events caused Global to develop a two pronged strategy to solve the problems. This involved outsourcing some of the call center operations. This caused conflict with Technology Workers Union and employees.
The most important events which led me to identify issues and opportunities in Table 1 are:
•
Global Communications has started to lose market share to the competition
•
Increased competition by cable companies
•
Resistance to outsourcing by the union and employees
•
All stakeholders were not involved in decision-making process and not consulted on the decision or informed what was happening.
Table 1
Issues and Opportunities Identification
Issues
Opportunities
Reference to Specific
Course Concept
Profit is decreasing and employees are not involved in management decisions.
This is an opportunity to improve two way hierarchical communications between managers and employees.
Hierarchical Communication:
“For example, a study of 24 branches of a large East Coast bank revealed that those with a two-way pattern of communication between managers and employees were 70% more profitable than branches with a one-way communication pattern. Managers are encouraged to foster two-way communication among all employees, particularly when faced with tough times.”
(Kinicki & Kreitner, 2004)
Global communication’s outsourcing plan may impact morale and commitment of its employees. This will reduce productivity.
This is an opportunity to build Organizational commitment of the employees by providing support to those who will be laid off. Job security and better carrier options to those who remain. Increasing communication with employees and involving them in decision- making. Demonstrating higher trust towards employees.
Building Organizational Commitment: “Five most prominent ways to build organization loyalty are: (1) Justice and support, (2) Job security, (3) Organizational comprehension, (4) Employee involvement, and (5) Trusting employees.”
(McShane & Glinow, 2004)
Resistance by Technology Workers Union and employees against outsourcing.
Global communications can use the power of resistance to build support for the change.
The “Power of Resistance”:
“Rather than treating resistance to change as something that must be overcome, Maurer argues for an approach that uses the power of resistance to build support for change.”
(Palmer, Dunford & Akin, 2005)
Global Communications is losing market share due to increased competition and out of date technical abilities of its current employees.
Opportunity to train employees to compete in the global market and changing scenario.
Global communication can grow the business and improve customer service by providing employees with the knowledge and skills they need to be successful.
“Competitiveness refers to a company’s ability to maintain and gain market share in an industry.”
(Noe, 2002)
Cable companies are offering full line of services and telecommunication industry by itself doesn’t have promising future
This is an opportunity to do benchmarking and identify what can be done better or differently and also to find out why competitors are succeeding.
“Benchmarking helps identifying potential solutions and best practices of those who have faced and solved a similar problem.”
(Generic Benchmarking, 2006)
Stakeholder Perspectives/Ethical Dilemmas
One of the prime reasons for ethical dilemmas between different stakeholders is lack of communication between them. Many times they have to depend on grapevine communication, which develops negative emotions and attitude. Employees were not involved in decision-making and they felt that they have not been treated fairly. This is demoralizing to employees and reduces trust. All these factors are contributing to the resistance against the new changes. This in turn is putting Global Communications in a difficult situation.
Table 2
Stakeholder Perspectives and Ethical Dilemmas
Stakeholder Perspectives and Ethical Dilemmas
Stakeholder Groups with Competing Values
List: Group X
versus Group Y
The Interests, Rights, and
Values