Problem Solution: Global Communications

Problem Solution: Global Communications

This paper review the problems presented at Global Communications and a series of steps that can provide a solution to the issues they face. Having developed a new strategy which focuses on reducing costs through outsourcing and generating additional income by the creation of new services, Global Communications has to overcome objections from the Technologies Workers Union to succeed.

Because the Union was not consulted about the plan, the Union is planning to oppose outsourcing of jobs to Ireland and India. The Union, which recently gave up some benefits to assist Global Communications’ cost cutting efforts, feels that the new strategy is an attack on the new contract and is threatening to fight the outsourcing.

This paper provides a solution that includes renegotiation of the contract, a relaxation of work rules, consolidation of call centers, and transition of personnel to other functions within Global Communications.

Situation Analysis

Issue and Opportunity Identification

The telecommunications industry is undergoing tremendous change and the following factors impact the industry according to Plunkett Research, Telecommunications Industry Trends.

a) Telecommunications firms worldwide suffered some of the heaviest blows in the technology stocks collapse of the early 2000s

b) Merger, consolidation and financial restructuring have completely changed the landscape

c) Globalization is heating up competition

d) Deregulation and privatization will have a continual effect on the telecom sector worldwide and

e) Rapid advances in telecom and wireless technology will continue unabated.

Therefore, the long-term outlook for the future of Global Communications is challenging. The strategy that they developed on the surface seems to be sound, develop new services, reduce costs and establish new partnerships. However, their competitors are basically adopting similar strategies and by partnering with a wireless company, Global Communications is introducing its customers to a competitor.

Global Communications is undergoing tremendous change and stress. “Reorganization, restructuring, and downsizing create environments of fear, worry, and stress, where people feel they need to protect themselves” (Amar, V., & Glaser, J. 2005). Global Communications can develop skills in Emotional Competence Inventory (ECI). ECI provides an assessment and development tool for building Emotional Intelligence, which will assist the Senior Management Team in recognizing and dealing with their feelings and the feelings of others (Watkin, C. 2000). By implementing this tool the organization can begin to evaluate the impact of the ongoing reorganization plan’s impact on Global Communications’ employees.

“Although an organization obviously can’t succeed without high levels of trust between members, most aggressive companies do little actively to build trust” (Sinetar, M. 1988 P.74). Katrina Heinz decided that she needed to keep the new strategic plan a secret. It appears that she may have kept it a secret not only from the Technologies Workers Union, but also from the Senior Leadership Team. Joel Thompson probably would have discussed outsourcing issues with the Union if he knew that it was under consideration. “Secrecy is an ethical issue because any secret creates a potentially ethically sensitive situation with a person who could benefit from the knowledge” (Howard, R. 2001). Global Communications needs to build an environment of trust both within the Senior Management Team and with the Telecommunications Workers Union, so that they can focus their efforts on making Global Communications a successful telecommunications company.

Global Communications is going to have to reopen contract negotiations with the Technologies Workers Union. The concessions that it received from the Union are not sufficient to turn the Company around. It has the opportunity to turn the outsourcing threat in convincing the Union back into negotiations and perhaps assisting in the downsizing activities of the call centers.

Global Communications needs to reduce head count in its support call centers and add 1,000 new people to its sales force. By offering some of the sales positions to the Technologies Workers Union work force that will be downsized, it may be able to accomplish both goals. The existing Union work force wants to see the company succeed because of a strong sense of loyalty to the company and strong organizational commitments. Anyone coming in from outside of Global Communications would not necessarily have the same desire and drive