Gap Analysis: Global Communications
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Gap Analysis: Global Communications
This paper will identify the gap analysis between Global Communications senior management team and its union stakeholders and employees. Global Communications senior leadership failed to effectively communicate and consider all stakeholders values until their plans to introduce new services and reduce costs by outsourcing jobs to Ireland and India had been approved by the board of directors (McShane & Von Glinow, 2004, p. 354). Their actions had a significant impact on organization behavior and organizational commitment due to job security fears (McShane & Von Glinow, 2004, p. 127-128). The union lost trust and perceived management as trying to manipulate around current contract conditions and set industry precedence (Kreitner & Kinicki, 2003, pp 521-525).
Situation Analysis
Issue and Opportunity Identification
Management failed to communicate effectively with the union and employees about its plan to market and transform Global Communications (GC) into a global corporation. Management did not fully consider the ramifications to the union and GC employees when they planed to downsize domestic call centers and outsource to consumer call center overseas. Managements failure to solicit or consider other options more inline with the companys motto “our competitive edge comes from our loyal employees” will likely result in reduced employee organizational commitment (McShane & Von Glinow, 2004, p.126). The new CEO, Katrina Heinzs, comments to union VP, Maria Antez, “Its a nice reality check to get away from the 40th floor” and “we needed to keep the strategy private until we could sell it to the board” were clear examples of the personal and physical barriers to effective communication concepts (Kreitner & Kinicki, 2003, pp. 525-526) and . The comments where indicative of a management team that was not in touch with its employees and their needs.
Management now has the opportunity to salvage this situation, but must cultivate their emotional intelligence to meet employee and union needs in order to keep their best people from “jumping ship” during these turbulent times (McShane & Von Glinow, 2004, pp. 119-121). They must also regain the trust of the union who perceive this as an attempt to manipulate around current contract conditions and set a precedent for the whole industry. To be successful, all parties must practice and apply the concept of active listening in order to understand each others needs and (Kreitner & Kinicki, 2003, pp. 532-534). Managements lack of communication skills with union, and apparent lack of consideration for its employees who recently gave up over 20% of their education and health benefits has harnessed an unintentional atmosphere of distrust. By understanding and applying the basic dimensions of the communications process, and organizational communication they may be able to reduce communication barriers (McShane & Von Glinow, 2004, pp. 334-337), avoid regain trust, and solidify the partnership between management, union, employees needed to satisfy the stockholders and succeed in their desire make Global Communications into a global corporation.
Stakeholder Perspectives/Ethical Dilemmas
There are four main stakeholders in this scenario. They are the shareholders, senior management team, the union, and the employees. Shareholders are entitled to a return on their investment and company assets. They have stake in seeing the company grow and become more profitable. They expect the board of directors and senior management to focus on increasing earnings, market shares and returns on investment. Their values are driven by the success of their investment dollars. Shareholder values can compete with union and employee interests. Senior management team is responsible and accountable to the stockholders, board of directors, and the employees. They have great autonomy and flexibility to make decisions that affect the direction of the company. Their pay and compensation is usually tied to the success and growth of the company. Managements values their individual and team success, and can be in competition with the union, employees, and even the board of directors. The Union has the right to negotiate pay and benefit contracts on behave its members. It expects fair and equal treatment of its members, and good faith negotiation concerning pay and benefits for its members by the company. It desires success of the company in order to attract more members, gain stronger bargaining positions, and provide more job security and prosperity for its members. The unions values are sometimes in direct conflict between those of the company and its member employees. Employees, employees have a vested interest in the success of the company that provides them with pay, benefits, and security. They have the right to be treated fairly and equitably, and to receive promotions and pay for their labor. Their values can sometimes conflict with senior management and even the union.
End-State Vision
Global Communications will transform into a global corporation by introducing new products and services, creating strategic alliances and introducing cost-cutting measures to increase profitability. It will achieve these goals by applying key concepts of organizational communications to obtain high levels of organizational commitment from employees and the union.
Gap Analysis
Global Communications is currently under heavy pressure from stockholders who continue to see diminishing returns and falling stock prices, from the Technologies Workers Union (Union) for what they perceive is contract manipulation, and attempt to set an industry outsourcing precedence, and from employees because GCs intended outsourcing could result in significant layoffs, contrary to Globals stated philosophy “Our people are our edge”. Unless Global can apply organizational communication principles to overcome their difference, Global Communications will not achieve its vision to transform into a global corporation.
In order to achieve the desired end-state, management needs to develop a win-win strategy, mend fences with the union and employees that feel betrayed, and improve its communication skills. To achieve this, Globals management team must use the concepts of organization communication. It must use the proper communications channels, listen actively, and reduce barriers to effective communication. If applied correctly, Global