Their plan included outsourcing some of the work overseas which would reduce cost but also cut jobs within the company. The senior leadership team needed the support of the union representative in order to explain to the worker's what the company's plans were and how it would affect them. The union representative was upset she was left out of the communications and had to hear it from her superiors. Global Communications needed the employees to grow and increase profitability; however they could not reach an agreement and Global Communications implemented layoffs. The union is discussing what action they will take to stop the outsourcing plan that will set precedent for the whole industry.
This resulted in upsetting the Union and caused them to reject the globalization goal of the company. The last email from the Unions’ management stated that they were going to seek government recourse and other available resources. (University of Phoenix, 2008, Scenario: Global Communications) The first issue is that by coming up with the globalization strategy without the Union, the board didn’t include the Unions goals in these new plans. The board took a distributive negotiations approach which subsequently created a win-lose situation causing conflict instead of a integrative negotiations approach which would have created a win-win situation. (Kreitner & Kinicki, 2004) This would have been the better choice.
Unfortunately, avoidable mistakes led to the fact that GC struggled in their negotiation with the union to discuss the impact of their decisions. The entire process was based on personal assumptions and imaginations. However, keeping stakeholders in the dark made the situation a mess. Even with incompetent management team like GC, stakeholders’ involvement in the situation would alert any overlooked aspect of potential risk or dilemma. GC even failed to weigh the union as a partner even after the union support to cut some benefits to help the company’s growth.
Typically, relations between companies and unions are adversarial at best. In this case, Global Communications had just asked the union to some accept cut-backs then hung them out to dry by announcing the layoffs and their intent to send jobs overseas. Global Communications must overcome these five issues if they are to remain competitive in the telecommunications industry. Stakeholder Perspectives/Ethical Dilemmas Each stakeholder of this scenario has a unique perspective of this situation. Unfortunately, this presents some challenges in seeking a resolution that is beneficial to all parties.
He has to talk to the sales and manufacturing group as well as the customer to determine the reason for the defective part. The cost of the complaint and the financial impact to the company can have widespread implications. If it is determined that the defective part is the product of missing information and a rush job by the company, the company has to eat the cost and remake the part for the customer. All of the department managers have an opinion on how to handle the complaint, but none of the solutions are constructive. The sales manager wants to blame the customer because he can did not provide the required information in a timely manner.
Abstract Cyber security policies in the private sector have been a challenging issue for major defense contractors, especially after recent attacks. As a result, the U.S. increased its strict enforcement against these companies by justifying its intervention to improve cyber security. The government would like to impose standards for companies who lack the proper protocol. Due to the revised and new procedures, corporations are responding by rejecting any congressional intervention. This has caused major friction in the relationship between the government and industry.
The friction this has caused, along with the impending layoffs, has the Union accusing Global Communications of contract manipulation and threatening possible legal action. Situation Analysis Issue and Opportunity Identification Global Communications has recently negotiated a contract with the Technologies Workers Union that decreased the members' education and benefits by over 20%. The Union representative only agreed with this decrease because she felt that it would allow the company to prepare for some long-term growth, which in turn would benefit the Union and its members. Now Global Communications has failed to include the Union in important communications regarding layoffs and the outsourcing of jobs. Stakeholder Perspectives/Ethical Dilemmas The interests of the stakeholders are similar in that most everyone is interested in the success of the company.
The Union is trying to represent the employees in a seemingly losing situation. The Union has been kept in the dark concerning the decisions of the senior management team. In previous negotiations, they have given up certain benefits to create an atmosphere of give and take. At this point, they feel that they have been taken advantage of by not being included in the current company decisions. End-State Vision Global Communications has become a world leader in the telecommunications industry.
The decision to do this has caused an issue within the organization due to the lack of communications between senior management and key stakeholders (Union/employees) as to where this strategy leads to downsizing and the loss of jobs, loss of benefits, and pay cuts for those who will be relocated. This decision clearly shows that the stakeholders involved have different interests and values than that of senior management's. Because of the differences in point of views within the company, an analysis is needed to form a solution to the problem that Global Communications has in the organization. The problem solution to GC's issues lie in the implementation of effective communication and involving all key stakeholders in the decision making processes that relate to company's wellbeing and changes. GC should use the Nine-Step Problem-Solving model as an aid in resolving their current issues that lie within the organization.
Communication through the grapevine can be distorted and escalate the anxiety of employees (Mcshane & VonGlinow, 2004). The lack of communication between management and employees has left employees insecure about their futures, and has made it hard for the company to retain their employees. Although some employees will lose their jobs, Global has an opportunity to improve communication with employees so they can anticipate future conflicts and take steps to resolve conflicts if they become dysfunctional (Kreitner & Kinicki, 2004). Stakeholder Perspectives/Ethical Dilemmas The most important stakeholder is the customer! The customer gives purpose to the other stakeholders by creating the demand for services.