Situation Analysis And Problem Statement: Global Communications

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Situation Analysis and Problem Statement: Global Communications Communication and information are essential to innovation, moral, and change. Global Communications lack of understanding of worker sentiment and a failure to communicate corporate concerns led to inefficiencies in the management process. Describe the Situation Issue and Opportunity Identification As global market pressures increase due to increased competitor competition, telecommunication markets vying for the same business, and new technology, labor costs has become an important concern in organizations and Global Communications (GC) is no exception. As part of efforts to enhance product market competitiveness, GC has taken steps to control compensation costs. In as much, the stock market has been closely scrutinized as market price per share depreciated more than 50 percent over a three year period. As a result of cost control efforts that will improve profitability, the company plans to cut overhead costs by downsizing their workforce and market itself more aggressively internationally by outsourcing work to India and Ireland with the goal of becoming a global resource within three years. The psychological contract and continuance commitment are key concepts to understand the issues and opportunities facing Global Communications (GC). The psychological contract addresses the attitude that employees have about their relationship with their employer. This involves trust, commitment, and respect that's developed over time and layoffs can create intense feelings in employees who believe that they have been wronged. These emotions may be demonstrated through angry outbursts, withdrawal, and lack of motivation to work. GC will have major implications to downsizing the call centers giving them a unique challenge with dealing with an employee's resentment over an unwritten physiological contract rule that was breached. The front-line manager can help employees cope with the stress associated with layoffs by opening the lines of communication, reporting accurate information, and being sensitive to the issues being discussed. Continuance commitment represents those employees who have strong emotional attachments to an organization because the costs of staying outweigh the costs of leaving. In this case, GC plans to relocate some employees to the consumer call centers with a 10% reduction in pay.

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