Gap Analysis: Global Communications

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Recently the telecommunications industry has been a disappointment. Stockholders are in an uproar over plummeting returns on their investments and fear that the trend will not return to normal. There has been a drop in stock prices that top over 50%. The harsh environment has put Global Communications under the microscope to perform economically. The market is saturated with companies domestic and abroad vying for the same business. Cable companies have dealt a devastating blow by bundling services that were once sold separately, such as computer, television, and telephone.

Global Communications has declared that it will be outsourcing technical support jobs to the overseas market. Outsourcing jobs is a clear sign that layoffs are soon to follow. The union is displeased with news of upcoming layoffs, and has vowed to use whatever means necessary to combat the decision. The union feels as that the relationship with Global Communications has become adversarial in nature, due to the company's failure to forge a partnership between the two. The union states that Global Communication did not exhaust all its options to keep union jobs at home. The union has stated that the move toward outsourcing is a manipulation of its contract with Global Communications and is seeking a legal remedy to its problems. This paper will look at Global Communications' stockholder's point of view, current conditions, the opportunities and issues facing the company and alternative solutions.

Situation Analysis

Issue and Opportunity Identification

Global Communications has alienated their union by not communicating their plans for the future until the last minute. GC never let on that they were considering cost cutting measures to improve profitability. Cutting costs means cutting jobs and benefits. This ambiguity caused a complete breakdown of trust between the GC and the union. "Although a communication barrier, ambiguity is sometimes used deliberately in work settings. Corporate leaders rely on metaphors and other ambiguous language to describe ill-defined or complex ideas," (Mcshane & Von Gilnow, 2005, p. 18). The idea to remove the union from the decision making process will come back to haunt Global Communications in the near future.

The union has already initiated talks with the government, exploring the legal options they have available in their case against Global Communications. The next round of negotiations will prove most difficult for Global Communications. Global Communications has to move in a different direction when it comes to talks between them and their union. Global Communications must extend the olive branch to the union by being frank and upfront with all decisions that affect their employees.

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