Problem Solution: Global Communications
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Global Communications faces the problem of increased competition in the communications industry. Along with this is their stock prices have fallen drastically over the last three years and investors are loosing their confidence in the communications industry as a whole. Global Communications has decided to layoff employees and outsource its call centers overseas. They are also facing a possible lawsuit by the labor union for making this decision without involving them. In the following paper the issues and ethical dilemmas of the stakeholders will be discussed. A look at the end state goals for Global Communications, the problems they face to achieve these goals, and alternative solutions to those problems. The solutions have been benchmarked against other companies with similar circumstances with the goal of finding the best practices for Global Communications to learn from. Following that, the alternative solutions will be analyzed for the risks they have, their severity and consequences, and the possible mitigation of those risks. After finding the solution that best meets the needs of the end state goals with the least amount of risk and effort to mitigate those risks, Global Communications will implement that solution. A plan will be discussed with a time line to implement each step in the plan. Finally a evaluation of how the solution will be measured with metrics against each end state goal.
Situation Analysis
Issue and Opportunity Identification
Global Communications is in the telecommunications industry, and stockholder confidence is diminishing. Its stock value has dropped more than 50 % in the last three years. This has been due to increased competition. The industry has been infiltrated by cable companies. The cable companies can provide television, high speed internet connections, and telephone services in one package. Global communications wants to join forces with a satellite provider to offer video services and broadband services. They also plan to implement cost-cutting program that will improve profitability and create the opportunity to become competitive in the global market. The will include relocating employees to Ireland and India, with the relocated employees taking a 10% reduction in pay. Global Communications made these plans without the knowledge of the labor union. The labor union discovered the plan after the plans were accepted by the Board of Directors through a third party. Recently the Union and Global Communications had agreed to a reduction of worker benefits, and the Union Representative believes that this is a poor precedent for the communications industry. The union is going to try to fight this plan through Government and all other available channels. Global Communications did not plan for this action. Throughout this Global Communications has been holding meetings with top management to create a plan to tell the employees of this decision. They are concerned that employees will find out through the grapevine (Batemen & Snell, 2004 p. 67). They are also looking into ways to change its philosophy of, “Our Edge Is People,” to something that will better fit with their new direction. This plan of action will be a defining moment for Global Communications (Badaracco, 1998 p. 123). This is detailed in table 1.
Table 1
Issue and Opportunity
Issue
Opportunity
Reference to Specific
Course Concept
(Include citation)
Concept
Global Communications did not include union representatives in the decision making process. Global Communications goal was to reduce costs and engage in a world wide market place through outsourcing jobs to foreign countries. The Union though, is interested in preserving main land jobs and has, in the recent past accepted a 20% reduction in education and health benefits. They feel as though they have been deceived by management because they found out about the information from a third party.
By improving decision making, knowledge management, employee needs, and coordination, workplace communication has a significant effect on organizational performance. One recent report estimated that a companys market value increases by over 7 percent when it improves its “communications integrity.” Another analysis identifies the leaders communication skills as an important influence on company performance. Communication is also a key ingredient in employee satisfaction and loyalty(McShane & Von Gilnow, 2005, p. 324)
Global Communications can increase the returns stockholders demand, and develop into a true global company.
“Grapevine information is sometimes so distorted that it escalates rather than reduces employee anxiety. This is