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Issue and Opportunity Identification
Global Communications’ customers require services that Global currently does not offer. Global has an opportunity to increase their market share, profitability, and increase customer satisfaction by offering new services and partnering with key business partners. Global Communications has an opportunity to grow customer base by aggressively marketing at an international level.
In order to maximize their initiatives Global Communications must cut costs. Global Communications can cut unit costs for handling calls by 40% by outsourcing technical support call centers to India and Ireland. Global failed to involve the union in upper management’s plan to outsource union jobs and although Global has the opportunity to cut costs and fulfill the customer’s need for more technical staff which India and Ireland can offer, the Technology Workers union is threatening legal action against Global Communications if they continue with their plan to outsource union jobs.
Global Communications’ employees heard about company problems and possible layoffs through the grapevine. 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. Global Communications’ customers expect high quality products and services at a low price, but domestic customers also have loyalty to businesses that are loyal to United States employees.
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Senior management has the responsibility to analyze and prioritize the expectations of all stakeholders. Global Communications is struggling to compete in the telecommunications market and needed to make changes. The company’s highest priority is to cut costs and compete on a global scale. Senior management had to make a hard decision to outsource jobs resulting in layoffs. Although they are trying to act in the best interests of all stakeholders by becoming more competitive, they failed to educate the stakeholders the basis of their decisions creating the problems they are now facing with the Technologies Workers Union and the employees who are not a member of the union.
The Technologies Workers Union and the employees who are not a member of the union are understandably more concerned about their individual goals than the goals of Global Communications. The employees are wondering why this is happening to them and are upset at the way Global Communications handled the situation. The union will have the dilemma of negotiating with Global Communications to get the best packages for the employees who will be retained, but will also need to concede that some employees will lose their jobs.
After implementing the restructuring plan of offering new services and outsourcing technical support call centers to India and Ireland, Global Communications will become a major competitor in the telecommunications industry. The company’s stock holders will be regain confidence in the company because Global’s stock will regain its value as the company becomes more global and earns back their share in the market.
As a result of the company’s revitalization and growth in market share, Global will be able to offer better salaries and benefits for its workers. Global Communications will work with the Technologies Workers Union face to face to negotiate fair compensation plans for retained employees and fair severance packages for those employees who will lose their jobs. The company will improve communication throughout the entire organization in attempt to inform employees about company issues before they receive news through the grapevine. Global Communications will promote an atmosphere where employees will coordinate their individual work effort toward a common goal (McShane & Glinow, 2005).
Global Communications must follow through and evaluate their plan to become more international and compete in the telecommunications market. “Decision makers need to establish reasonable goals and benchmarks to make sound judgments about the effectiveness of the decision. It is also important to allow enough time for a decision to take effect” (Gomez-Mejia & Balkin, 2002).
Senior leadership will evaluate changes in the telecommunications industry, and act accordingly involving all stakeholders to continue to thrive in the marketplace.
Global Communications has found itself a victim of modern day progress. The telecommunications industry has changed. The competitors are offering new calling features, cable companies are offering complete solutions, and an increase in competing companies has caused a 50% depreciation of Global Communication’s stock. In order to realize the growth they need to introduce new services, primarily for small business and local consumers, Global Communications needs to take cost effective steps through outsourcing some of their technical cost centers to India and Ireland. Based on the analysis of declining stock prices and increased competition in the telecommunications industry, Global Communications has selected a solution to meet the demands of the company’s stock holders. Global Communications has failed to communicate to all stakeholders the rationale for the choices they have made and started to implement causing unforeseen employee and legal issues. Mcshane and VonGlinow state that “in this era where knowledge is competitive advantage, corporate leaders also need to maintain an open flow of communication up, down, and across the organization” (2004, p.342).
In spite of the scrutiny Global Communications will receive for moving some of its call centers to India and Ireland, senior leadership must steer the company in a direction that will promote long-term growth. Global Communications plans to enter negotiations with the Technologies Workers Union to negotiate a possible solution that will benefit both the union and align with Global Communications plan for economic growth.
Gomez-Mejia, L. R., & Balkin, D. B. (2002). Management. [University of Phoenix Custom Edition e-Text]. New York: Mcgraw-Hill. Retrieved March 30, 2008, from University of Phoenix, rEsource, MBA 500 Web site.
Kreitner, R., & Kinicki, A. (2004). Organizational behavior: Managing Conflict and Negotiation. [University of Phoenix Custom Edition e-Text]. New York: The McGraw-Hill Companies. Retrieved April 12, 2008, from University of Phoenix, rEsource, MBA 500 Web site.
McShane, S. L., & Von Glinow, M. (2004). Organizational behavior: Emerging realities for the workplace. [University of Phoenix Custom Edition e-Text]. New York: The McGraw-Hill Companies. Retrieved April 12, 2008, from University of Phoenix, rEsource, MBA 500 Web site.
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
(Include citation) Concept
Global Communication chose not to communicate with the worker’s union their plan for future success of the company which included outsourcing union jobs to foreign countries. The management has the ethical problem of eliminating jobs and has had caused mistrust of the union toward the company and has made negotiations difficult. The Union now plans to do anything possible to fight Global Communication’s plan. Global Communications can create an atmosphere of open communication throughout the organization to rebuild the trust of the employees and lead to greater job satisfaction and loyalty (Mcshane, 2005, p. 324). “In this era where knowledge is competitive advantage, corporate leaders also need to maintain an open flow of communication up, down, and across the organization.” (Mcshane & Glinow, 2005, p. 342) Conflict Negotiation
Global Communications employees have heard rumors about the company’s financial situation and possible outsourcing causing employee morale, productivity and retention problems. Global Communications has the opportunity to evaluate how employees receive information and try to properly inform employees before the hear rumors from the grapevine. “Grapevine information is sometimes so distorted that it escalates rather than reduces employee anxiety” (Mcshane & Glinow, 2005, p. 356) Communication through grapevine
Global Communications’ employees are wondering why their positions are being outsourced. Morale is low, productivity is low and retaining employees has become a problem. Global Communications has the opportunity to create an open atmosphere with employees to help foster a team mentality. The overall success of the company depends on all employees. “organizations depend on the ability of people to coordinate their individual work effort toward a common goal (McShane & Glinow, 2005) Organizational politics
Global Communications has implemented a plan to meet customers growing needs. They need employee and union support to meet their goals. They also need to evaluate the progress of their current implementation to make sure they meet the needs of the customers and increasing the company’s market share. Global Communications has the opportunity to expand the company to keep up with changing technology and continue growth as technology changes in the future. “Decision makers need to establish reasonable goals and benchmarks to make sound
judgments about the effectiveness of the decision. It is also important to allow enough time
for a decision to take effect”(Gomez-Mejia & Balkin, 2002).
The Interests, Rights, and
Values of Each Group
Customers Customers expect high quality products that meet their changing needs. They also expect more technical, high quality service.
Stockholders Stockholders expect a return on their investment.
Employees The employees want a secure job that pays well, and to work for a company that treats the employees well.
Union The Union is in place to insure fair treatment of the employees.
Senior Management They have the responsibility to look after all stakeholder’s interests in order to create a win-win situation for all parties and keep the company competitive.