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Issue and Opportunity Identification
At Global Communications (GC), the senior management was ineffective in their responsibility to communicate with key stakeholders within the organization before major decisions were made in trying to set company goals. The goals GC envisioned were to increase growth and profits so the company would still exist and survive in the industry. GC wants to outsource and set up new call centers rather than use the current employees. With the plan, the strategy would encompass a major downsizing and many employees would be let go. In addition to the many let go, those remaining would be relocated and expected to take a 10% pay cut.
The opportunities for GC lie from this current situation and experience; skills can be developed by management to better handle communication, the planning of unexpected events, also the management of risk and conflict within the organization.
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Stakeholder Perspectives/Ethical Dilemmas
There are two main stakeholders that play major roles in this scenario. They are the Union (employees) and senior management. The underlying issues began with the differences in both parties' interests. The Union, which is an organization of the employees, has a different interest and value that do not coincide with management's vision. Although they are for company growth in the long term, their interests lie in their continuous benefits provided by the company for their livelihoods and their value of being treated with fairness and respect. They feel being involved in company decisions is their right to be heard and they should be given the opportunity to have a voice in the decision of the company's future, especially if their job stability depends on it. If they are looked at as a partner, then their voices should have been heard at a time like this.
Senior management, although they feel like their edge is their people, are concerned with the company's growth and improvement of profitability in order to survive the current industry. Their value in this situation is the company's accountability and integrity. Senior management has the right to decide what will be best for the company's future, regardless of the current barriers caused between them and the Union. The communication strategies between them and the union can be handled later, but the current issue needs focus. Their main concern is getting the company to a place of stability within the growing industry and if not, Global Communications will no longer exist. The conflict lies here is the Union being displeased with the company's latest negotiations which resulted in benefit reductions in both health and education. The ethical dilemma lies in the fact that although GC states that they value their employees, but the latest decisions made seem as though the union and employees are looked at as no more than commodities and not as valued assets or partners when the fact lies that with the plans for outsourcing will result in both jobs and benefits being taken away.
Global Communications will involve all major stakeholders in the future decision making processes while it transforms into a global corporation. Global Communications will transform into a global corporation enabling the company to increase in profits and growth in order to remain in existence in this fast moving telecommunications industry.
Global Communications (GC) is a company that is in a highly competitive marketplace; therefore, there is a need for constant exploration in new ways to add value to the company at lower costs in order to keep up with the fast growing telecommunications industry. There lies an obvious gap within the organization communications between the stakeholders, management and Union. GC's belief is that their edge is their employees and that the competitive advantage comes from them. This does not seem to be the case with the current strategy laid out. GC has expressed that it plans to outsource and form new call centers in order to grow the company and improve profits. This decision will result in the downsizing of employees and cuts in pay and benefits for those employees who will be relocated. This strategy seems more so like and ethical dilemma. In the scenario, Maria's comments clearly stated; "You never gave me a heads-up on this strategy, Joel", (Maria 2004) which was an indication that the organization had a lack of effective communication amongst key stakeholders.
"Effective communications is vital to all organizations because it coordinates employees, fulfills employee needs, supports knowledge management, and improves decision making." (McShane and Gilow 2005). Maria's statement proves there is a need for change in the relationship between management and the union. This change will lead to effective organizational communication and form a partnership between the parties. This lack of communication, if not effectively resolved in agreement, can lead to an even greater gap. GC which is a company that values accountability and integrity face the risks of losing employee support which could impact morale across the company and affect the social status of the company if negative reactions are displayed by media.
Adhering to the necessary changes can be a challenge but are far from impossible. Senior management should involve the stakeholders in the decision making process in the future and see them more as a partner rather than a commodity. Management is communication. Important effective communication is critical for both managerial and organizational success. (Kreitner&Kinicki 2004) Before making final deals in negotiations, all GC's strategic plans should be broken down with all avenues referenced. Meetings should address the matters at hand for preventative actions such as the management of risks. The meetings should include representatives from all possible affected arenas whether the affects are positive or negative so that the team has one common goal and the interest do not cause conflict. If implemented correctly by the organization as a whole with all parties involved in the process, GC will have effective results using the Nine-Step Problem Solving model. These nine steps include; describing the situation, framing the right problem, describing end-state goals, identifying alternatives, evaluating alternatives, identifying and assessing risks, making the decision, developing and implementing the solution, and evaluating the results. (University of Phoenix) By using this model, GC will be able to reveal the issues caused from the decisions that led to the problem and opportunities may be presented. This process can also provide preventive measures when ethical dilemmas are identified. In using this process with key stakeholders involved in the process, an effective form of communication is present which can improve the organization.
In conclusion, there is a realization that Global Communications lacks effective communication amongst various key members of the organization. GC's senior management needs to implement the Nine-Step Problem-Solving model involving key representatives of the entire company. Once the steps in this model have been implemented, effective communication is present, providing the company with opportunities for improvement.
Kreitner, R.,& Kinicki, A. (2004). Organizational Behavior. New York: The McGraw-Hill Companies.
McShane, S.L., & Von Glinow, M. (2005). Organizational Behavior: Emerging Realities for the Workplace Revolution. New York: The McGraw-Hill Companies.
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
(Include citation) Concept
Global Communications' senior management was ineffective in their responsibility to communicate with key stakeholders within the organization before major decisions were made in trying to set company goals. The goals GC envisioned were to increase growth and profits so there company would still exist in the future. GC wants to outsource and set up new call centers rather than use the current employees.
The opportunities for GC lie from this current situation and experience; skills can be developed by management to better handle communication, the planning of unexpected events, and also the management of risk and conflict within the organization. With the current plans to outsource, GC will increase technical sophistication and reduce unit cost for handling calls nearly 40%.
Employee involvement is an important component of the decision making process. To make the best decision we need to involve people who have the most valuable information and who will increase commitment to implement the decision. (McShane&Glinow 2005) Employee Involvement
The Interests, Rights, and
Values of Each Group
Union/employees Interests: Benefits and job stability
Rights: Organizational involvement
Values: Fairness, Respect, and Honesty
Senior Management Interest: Company Growth, Profit, and Longevity
Rights: Final say so in the best interest of the company
Values: Accountability and Integrity
End State Goals
1. Improve organizational decision making and avoid conflict of interest.
2. Increase technical sophistication, growth, and improve profits.
3. Maintain interpersonal communication within the organization in order for the organization to benefit.