Gap Analysis: Global Communications

Gap Analysis: Global Communications

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In this analysis I will present the ethical and financial problems Global Communications faced prior to senior staff introducing a two-pronged aggressive approach. I will identify the issues and opportunities faced by Global Communications followed by the stakeholder perspective and end-state vision. A gap analysis is also included for Global Communications explaining where the company is today and where they would like to be.
Situation Analysis
Issue and Opportunity Identification
Global Communications has become aware of some uneasy issues the company will have to face. First an issue Global Communications faces is falling stock prices; stocks have depreciated over 50% and how to deal with that and keep the best interest of the company in mind. Global Communication also faces increased competition from other companies, which places Global Communications in a tough situation now having to compete to survive, which means downsizing or even outsourcing some services, also create new services for Global Communications
Global Communications devised a quick-fix solution, which was designed to try to stay up with the competition with other companies. Senior management devised a plan that would cut costs and attract new services which would result in a substantial savings for Global Communications. The senior leadership team did not communicate the news well to the employees of the impending changes, which included outsourcing the phone center to Ireland and India; this would reduce costs by nearly 40%. Some employees would relocate with the expanding call centers, but their salaries would be cut by 10% due to the cost of living in other countries; other employees would be laid off. Global Communications did not take into consideration alternate measures to keep employees such as splitting positions, which allows employees to retain jobs and reduces costs, nor did Global Communications consult with the union on how the employees would react to the news. Senior staff failed to involve the union when devising the changes that would ultimately affect staff and layoffs.
Senior leadership should have held a meeting with union officials to discuss the potential changes of Global Communications that would directly affect so many employees. Union officials believe it is unethical to give such short notice and unreasonable choices.
Stakeholder Perspectives/Ethical Dilemmas
Global Communications is in a bad situation with trying to compete in the telecommunications world alongside other companies and stocks falling 50% and trying generate revenue all at the same time. Senior staff at Global Communications as well as employees have a vested interested in Global Communications.

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Employees were willing to give up 20% of their health care, and now are being laid off and some transferred to India or Ireland. Technologies Workers Union believes it was unethical for jobs to be outsourced and employees to be given such short notice.
Global Communications management failed to involve Technologies Workers Union in the decision making process which could lead to repercussions such as lawsuits against Global Communications. Employees are now faced with a reduction in salary and morale is down, Global Communication should have come up with another plan that would have been beneficial to both key parties. 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 company's market value increases by over 7 percent when it improves its "communications integrity." (McShane & Glinow, 2005) Senior staff was instructed to come up with a plan to take Global Communication in a different direction, outsourcing was thought to be the best for the company this would resolve some of the financial issues Global Communications has. In doing this major stakeholders will see an increase in profits.
End-State Vision
Global Communications senior staff has realized handling changes Global Communications in the past did not go as planned and have been retrained on how to handle large corporation reorganizations to better handle situations. Several months have past since employees have been laid off and jobs have been outsourced and Global Communications has managed to come back from stocks falling 50% to stocks rising over 40% and revenue is at its all time high. Global Communications had to allow for a few more investors into the company, which helped with the success of Global Communications once again. Global Communications is now able to offer new services, which will generate more revenue.
Employees and stockholders of Global Communications are more confident in the company; even the union has a new found trust in Global Communications. Communication has become very important to senior staff and the union officials, no major decisions are made unless both parties meet and agree. Communication is also a key driver in knowledge management. It brings knowledge into the organization and distributes it to employees who require that information. (McShane & Glinow, 2005)
Global Communications has gained such confidence as a major contender in the telecommunications industry, the company has offered better health care benefits and has halted outsourcing and brought back some employees who were relocated in India and Ireland and were given back the 10% salary they had originally lost when relocated in another country. Some employees received raises based on merit and others are striving to become better employees. Global Communications has been working with the union officials in getting all employees cross-trained in all areas to make Global Communications even stronger.
Gap Analysis
Global Communications’ senior staff must be aware of past practice of management and where Global Communications was in the market with falling stocks. Global Communications must deal with the competition on a daily basis, develop new products, and satisfy employees. Global Communications dealt with falling stocks by outsourcing and cutting back on employees, this was not the answer. Global Communications realized they had to produce new products and services to be successful and globalization was one of the best options. Global Communications must now show consumers and employees Global Communications is a strong company and restore confidence.
Global Communications needs to first assure the company is in good standing and is profitable and stop outsourcing employees to Ireland and India. Once Global Communications is realizing a profit continuously employees who were outsourced to India and Ireland should have the option to relocate back to their jobs and be given back the 10% salary loss incurred when relocated during the reorganization. Global Communications should also introduce other employee packages to encourage employees’ work at Global Communications.

Global Communications success will be dependent on several factors. Global Communications must stay competitive and develop new product ideas that will generate revenue. Global Communications needs to look for other ways to cut costs that stop outsourcing of employees. Senior staff must communicate with union officials, communication is very important.

Bateman, T. S., & Snell, S. (2004). Management: The new competitive landscape. New York: The McGraw-Hill Companies.
Kreitner, R., & Kinicki, A. (2005). Organizational behavior. New York: The McGraw-Hill Companies.
McShane, S. L., & Von Glinow, M. (2005). Organizational behavior: Emerging realities for the workplace. New York: The McGraw-Hill Companies.

Table 1
Issue and Opportunity Identification
Issue Opportunity Reference to Specific Course Concept (Include citation) Concept
Global Communications did not plan out how the course of events would happen especially when meeting with Technologies Workers Union regarding the loss of jobs and outsourcing. The contract between Global Communications and the union was being negotiated and now Global Communications was to lay off employees. Technologies Workers Union can use this opportunity to negotiate with Global Communications to save jobs instead of layoffs in addition to the health care issue. Management is communication. Every managerial function and activity involves some form of direct or indirect communication. Whether planning and organizing or directing and leading, managers find themselves communicating with and through others. Importantly, effective communication is critical for both managerial and organizational success. (Kinicki & Kreitner, 2004, p. 4). Union negations
Global Communications was faced with falling stocks and as a result had to outsource jobs to India and Ireland and lay off employees to cut costs. The issue is senior staff did not properly plan how to deliver the news to employees and union officials. Global Communications senior staff had the opportunity to share information with union officials and chose not to, ultimately landing Global Communications in legal battles with union officials. Effective communication is vital to all organizations because it coordinates employees, fulfills employee needs, supports knowledge management, and improves decision-making. (McShane & Von Glinow, 2005, p. 6). Lack of communication
Defining there is a problem. Sales are down, stocks are down, and competition is high in the telecommunications industry. Global Communications stockholders realized the company would not survive if something was not done and assigned senior staff to devise a measure to fix the problem. Recognizing that a problem exists is only the beginning of this stage. The decision maker also must want to do something about it and must believe that the resources and abilities necessary for solving the problem exist. (Thomas & Snell, 2004, p. 23). Recognize the problem
Outsourcing and relocating of jobs. Will new employees be knowledgeable on what Global Communications does? What will the cultural barriers be on the persons being relocated to Ireland and India? Global Communications did not take into account the cultural barriers but might not have had enough time given the falling of stocks. Management quickly set priorities: make sure people were all right; relocate 9,000 employees; put infrastructure in place; get the firm trading again. (Bateman & Snell, 2004, p. 4). A manager may have to decide whom to lay off, when she doesn’t want to lay off anyone. . (Bateman & Snell, 2004, p. 18). Outsourcing and layoffs/managements only option.
Senior staff did not provide alternate solutions to outsourcing such as split positions to save money or early retirements. Employees were not given the chance to make a decision to stay and split positions; employees were relocated or laid off. If the decision is the wrong one, you may lose money, time, reputation, or other important assets. (Thomas & Snell, 2004, p. 14). Executive decision made in the best interest of Global Communications

Table 2
Stakeholder Perspectives
Stakeholder Perspectives
Stakeholder Groups The Interests, Rights, and Values of Each Group
Technology Workers Union Integrity
Global Communication/Senior Leadership team Unethical
Employees Fairness

Table 3
End State Goals
End-State Goals
Global Communications will communicate with union officials regarding major company changes.
Global Communications will offer a better health care package for employees.
Global Communications will offer pay raises for employees based on merit.
Global Communications will stop the outsourcing of jobs and relocate some employees that were relocated in Ireland and India.
Global Communications will offer cross training for all employees.
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