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Issue and Opportunity Identification
Global Communications now has many issues and opportunities as it attempts to implement its new strategy in order to accomplish its goal of globalization. What it wants to do is outsource the technical call centers to India and Ireland. This should improve its technical capabilities and customer service with a reduction in cost of approximately 40%. In order to do this a large scale restructuring of Global Communications workforce is necessary. There will need to be a great number of layoffs and salary cuts up to 10% for others.
Global Communications had developed this strategy behind closed doors with no input from either the Union or its employees. 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.
Second, employees were not included in the process where the company chose this new direction. Due to the huge impact on them from the layoffs and salary cuts, the employee acceptance of the strategy is low. “The aspect of decision making that is based on people’s feelings; decision acceptance happens when people who are affected by a decision like it.” (Gomez, Mejia, & Balkan, 2002).
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The next issue is to improve workplace communications which will in turn reduce uncertainty by the employees and increase decision making quality. McShane and Von Glinow (2005) pointed out, “a company’s market value increases…when it improves its ‘communications integrity.’” They also commented “workplace communication has a significant effect on organizational performance.” (McShane & Von Glinow, 2005).
Lastly, Global Communications and the Union are experiencing coalition model decision making. This is over its people as a resource and how to use them. This situation offers the opportunity for both sides to come together and come up with common goals and make the process collaborative. When they work together both the Union and Global Communications can create a joint globalization strategy that fulfills both their needs. (Bateman & Snell, 2004)
Stakeholder Perspectives/Ethical Dilemmas
Global Communications is having a hard time juggling the interest, rights and values of its major stakeholders: the company, the shareholders, the customers, the employees and the unions during the execution of its globalization plan. The differing goals and rights of these stakeholders would make for certain conflict. Kreitner and Kinicki, (2004) said conflict is where “one party perceives its interest are being opposed by or set back by another party.” The largest conflict is with the Union.
Global Communications wants to make itself a truly global company through its globalization strategy. This strategy relies on outsourcing personnel and pay cuts. These objectives are in direct conflict with the Unions objectives of preserving membership and protecting members’ benefits. This is the largest conflict that Global Communications faces in the immediate future.
The secondary conflict is with stockholders and employees. Stockholders have the right to a fair return on their investment. This is why they buy stock and invest in the company. Employees have the right to a fair wage for their job and performance of that job. The problem is that stocks have fallen the last 3 years more than 50%. (University of Phoenix, 2008, Scenario: Global Communications) Employees, who are part of the Union, have given up some benefits in an attempt to compensate but the company continues to lose money in its current state. Profits are low and costs are rising making it impossible for both shareholder and employee to have their goals met. The globalization strategy makes the company face the ethical dilemma of upholding their philosophy of “Our Edge Is People” or restructuring to go global.
Global Communications will become a global business leader in the communications industry through its globalization strategy. It is a well thought out plan and just needs to be refined to include the input of all the stakeholders involved. They will need to work with the Union closest of all to achieve this goal as it is the Union who will generate the most conflict if they perceive their goals are not being met. Lastly they will need to bolster employee moral along with loyalty during this transitional phase.
Global Communications wants to turn itself into a communications industry business leader on a global scale. It faces many challenges as it attempts to change to become this. The biggest change is to partner with the Union. The biggest challenge is to work together to implement the outsourcing and workforce restructuring process. It is critical to get the Union to back this strategy so that it will go as smoothly as possible. A subsequent challenge is to work with the Union to eventually create a win-win scenario. That way, instead of the give and take distributive approach they can use an integrative approach which will incorporate the goals of both sides to make a long term win-win situation. (Kreitner & Kinicki, 2004)
Yet another challenge is bolster employee moral and loyalty during the restructuring process. The layoffs and pay cuts will have a serious negative effect on these to facets which will in turn effect production. Global Communications has the challenge of selling the globalization strategy to the employees to gain decision acceptance. (Gomez, Mejia, and Balkin, 2002) This is a critical step to meet future challenges of employee retention and meet growth goals.
The final change that Global Communications needs to make is to improve its workplace communications. They have a globalization plan but need to effectively communicate this to the employees and shareholders. They also need to listen and receive feed back from both of them. Ultimately, Global Communications needs to improve ‘communication integrity’ so that information flows within the organization and knowledge management is more effective (McShane & Von Glinow, 2005)
So that Global Communications can transform into the global communication industry business leader that it wishes to become they must change and meet the challenges. They face an immediate problem with the Union at an important time of transformation. The company must partner with the Union and work together on the win-win scenario for the restructuring process while Global Communications truly goes global. (Kreitner & Kinicki, 2004) The company faces the daunting task of letting many valuable and loyal employees go along with the moral loss this will create in order to meet its business needs. The company needs to communicate with all the employees and come up with a high decision acceptance for the globalization strategy and keep its philosophy of “Our Edge is People” together. (Gomez, Mejia, and Balkin, 2002) Lastly, the company needs to improve its ‘communications integrity’ so information and knowledge is managed better along with quality decision making. (McShane & Von Glinow, 2004)
Bateman, T.S., & Snell, S. (2004). Management: The new competitive landscape. (6th ed.) [University of Phoenix Custom Edition e-text]. New York, NY: McGraw-Hill. Retrieved February 17, 2008, from University of Phoenix, rEsource, MBA/500 – Foundations of Problem-Based Learning Course Web site.
Gomez, Mejia, & Balkin. (2002). Management: Decision making. [University of Phoenix Custom Edition e-text]. New York, NY: McGraw-Hill. Retrieved February 17, 2008, from University of Phoenix, rEsource, MBA/500 – Foundations of Problem-Based Learning Course Web site.
Kreitner, R., & Kinicki, A. (2004). Organizational Behavior: Managing conflict and negotiation. (6th ed.) [University of Phoenix Custom Edition e-text]. New York, NY: McGraw-Hill. Retrieved February 17, 2008, from University of Phoenix, rEsource, MBA/500 – Foundations of Problem-Based Learning Course Web site.
McShane, S.L., & Von Glinow, M. (2005). Organizational Behavior: Communicating in teams and organizations. (3rd ed.) [University of Phoenix Custom Edition e-text]. New York, NY: McGraw-Hill. Retrieved February 17, 2008, from University of Phoenix, rEsource, MBA/500 – Foundations of Problem-Based Learning Course Web site.
University of Phoenix. (2008). Scenario: Global Communications. Retrieved February 17, 2008, from University of Phoenix, rEsource, Simulation MBA/500 – Foundations of Problem-Based Learning Course Web site.
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
(Include citation) Concept
By developing the globalization strategy privately, Global did not incorporate the Unions goals. Try to create a mutual business plan that benefits both parties.
“A distributive negotiation usually involves a single issue—a ‘fixed-pie’—in which one person gains at the expense of the other. For example, haggling over the price of a rug in a bazaar is a distributive negotiation,” (Kinicki & Kreitner, 2004).
Global Communications and the Union are experiencing coalition model decision making over people as a resource and how to use them. Global Communications and the Union should develop common goals and strategy that benefits both. Development of globalizations strategies.
(Bateman & Snell, 2004). Globalization.
Employees not informed and improve decision making ability by improving communication. Partner with employees to develop acceptance. Decision making acceptance.
(Gomez, Mejia & Balkin, 2002). Decision making.
Reduce uncertainty and improve decision making ability by improving communication. Increase value of company by increasing communication. Effective communication within teams and organizations.
(McShane & Von Glinow, 2005). Communication.
The Interests, Rights, and
Values of Each Group
Company Increase sales and grow the business.
Customers Provide a service to the customers.
Union Protect the jobs of current members and increase membership.
Employees Keep jobs, stay informed about companies direction.
End State Goals
Become a global business leader in the communication industry through global strategies.
Work with the Union to achieve this goal throughout the process.
Keep employee moral and loyalty up during the transition.