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Global Communications is a company that provides customers with local and long distance telecommunication services. They have been faced with the reality that competition has grown significantly. Besides, the local and long distance competitive companies, the cable companies have now become a large part of their issues. Global Communications has several stakeholders who are faced with making decisions that are in the best interest of the company and that are ethical decisions. Global Communications has determined that they have to seize the issues and turn them into opportunities for the company.
Issue and Opportunity Identification
Over the past three years stock with Global Communications, GC has dropped more than 50 percent per share. Stockholders are not confident that with such a dramatic decrease in stock that GC will be able to rebound. Global Communications is a company that provides customers with local and long distance telecommunication services. They have been faced with the reality that competition has grown significantly. Besides, the local and long distance competitive companies, the cable companies have now become a large part of their issues. In addition, the lack of communication between management and the employees has caused the employees to question GC's loyalty. This has caused the company to risk losing the morale of their employees and has made these issues obvious to everyone, including the stockholders. Global Communications has determined that they have to seize the issues and turn them into an opportunity for the company. (Scenario Two: Global Communications)
The company has recently decided to expand its services by offering their product to small businesses and consumer customers or those who will use Global Communications for themselves and not for resale. The first plan includes combining with satellite providers to offer video services and satellite broadband. In addition, Global has expanded its services to include wireless providers that will give small businesses the ability to use internet access through their wireless telephone or PC cards. The second plan of action is to become a more global resource by marketing more internationally. This includes outsourcing the technical calls to India and Ireland there by reducing unit costs for handling calls by nearly 40%.
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Stakeholder Perspectives/Ethical Dilemmas
The opportunities for Global Communications have been set, but there are some who feel that things will not go over well with the current employees. Katrina Heinz, the CEO of Global Communications, is confident that the company will benefit greatly by marketing more locally and by becoming a more global provider. Katrina's perspective as a stakeholder is that outsourcing their technical calls to Ireland and India will give GC "the opportunity to reduce unit costs for handling calls by nearly 40%." This means that they will have to downsize the call centers and let some employees go. Katrina, as the CEO, is faced with the ethical dilemma of how to implement the outsourcing plan while being fair to the current call center representatives. It is through the other key stakeholders that she will find a solution.
Sy Rodriquez, the Executive Vice President of Consumer Marketing and Sales, is another one of those key stakeholders. Sy, who agrees with the idea of outsourcing, is concerned that the announcement of the layoffs will not be taken lightly and Global Communication will risk their reputation of being a company that treats its employees well. This is mainly the cause of his ethical dilemma. Nancy Everhardt, the Executive Vice President of Small Business and Marketing Sales, is also happy with the decision to outsource. How will they inform the employees of the layoffs without lowering morale and productivity? The others realize that this will not be a simple task, but feel that implementing the idea to employees of possibly working overseas may be appealing to them. According to Nancy, it is best to inform the employees of what is about to happen. She realizes that this will require the assistance of the union.
Maria Antez, Vice -President of Technologies Workers Union is concerned with the globalization and outsourcing. From her perspective, in the first place, she was left out an important part of the decision making process. It is because of this fact; she appears to not be a reliable source to the members of the union. She is now also concerned with her credibility with the union. The issue for her is how she will convince them that she is a part of the decisions and a voice for them.
Joel Thompson, Executive Vice President of Human Resources and Public Relations, feels that through Maria the employees will see the benefit of this move. Maria disagrees and feels that the Union will not support this decision because it is unethical. He wants to communicate the new strategy and address the concerns of the employees. However, he is more concerned with how the reaction of the employees will affect the outcome of the new plans presented by Global Communications.
Global Communications will implement their new strategy by being more open through communications with their employees. Employees will be informed on the first Monday of every month of the progress and status of the upcoming transfer to the European countries and of the status of the current layoffs. Global Communications will continue to evaluate productivity and revenue for any changes that may increase due to the economy or the sale to the consumers. By monitoring the shares of the company GC will be able to determine the progress that is being made.
In order to expand the communication between Global Communications and the employees, the plan will consist of reestablishing a rapport with the employees. The communication will be through verbal communications with preparation for any barriers that may occur. After evaluating past communications between management and the employees the stakeholders have decided to create ways to eliminate any personal barriers and by filtering any sensitive information related to the finance. (Kreitner, R., Kinicki, A. (2004)) Management has decided that by keeping them informed, they allow the employees to be empowered by the knowledge of what is going to take place. The biggest challenge is going to be convincing them that the increase in communication is not to "cover up" anything, but to show them that management is continuing to look for ways to keep them employed with GC.
Global Communications has decided that due to the decrease in revenue and the increase in competition in the local and long distance companies that they will begin to outsource their technical call center to India and Ireland. The lack of initial communication between them and their employees, both in upper management and lower level representatives has caused the Union and the employees to doubt that Global Communications has their best interest in the forefront. It is now the goal of GC to show that they are working to outsource and become globalize while not jeopardizing the reputation that they have established with the employees.
The management is confident that the outcome of this plan will be in the best interest of all that are involved. Global Communications will obtain the goals set and provide for their employees the security they need to continue on with Global Communications.
Scenario Two: Global Communications
Kreitner, R. & Kinicki, A. (2004). Organizational Behavior, (6th edition). New York: McGraw-Hill Companies.
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
(Include citation) Concept
Global Communications, GC is a company that provides customers with local and long distance telecommunication services. They have been faced with the reality that competition has grown significantly. Besides, the local and long distance competitive companies, the cable companies have now become a large part of their issues. Global Communications has determined that they have to seize the issues and turn them into an opportunity for the company.
The company has recently decided to expand its services by offering their product to small businesses and consumer customers or those who will use Global Communications for themselves and not for resale and by outsourcing to India and Ireland.
"The board has approved our plan! I just spoke with the President, who said the Board completely agrees that we need to enter and compete in local markets AND step up our globalization. They loved the idea of moving some of our technical call centers to India and Ireland (remember, our costs for handling calls by nearly 40%) and thought it clearly supported our strategy to transform into a global corporation within three years." (Scenario Two: Global Communications)
The Interests, Rights, and
Values of Each Group
Katrina Heinz She is confident that the company will benefit greatly by marketing more locally and by becoming a more global provider and is faced with the ethical dilemma of how to implement the outsourcing plan while being fair to the current call center representatives.
Sy Rodriguez He agrees with the idea of outsourcing, is concerned that the announcement of the layoffs will not be taken lightly and Global Communication will risk their reputation of being a company that treats its employees well.
Nancy Everhardt She believes in telling the truth and explaining the strategy.
Joel Thompson He wants to communicate the new strategy and address the concerns of the employees. He is more concerned with how the reaction of the employees will affect the outcome of the new plans presented by Global Communications.
Maria Antez From her perspective, in the first place, she was left out an important part of the decision making process. She is now also concerned with her credibility with the union.
End State Goals
To increase communication between the employees and management.
To continue with the strategic plan established.