Problem Solution: Global Communications

Problem Solution: Global Communications

Global Communications (GC) strives to be a major competitor within the global telecommunications industry. GC is currently facing several obstacles that stand in the way of this goal and is at an impasse on deciding a productive course of action. Through identifying GC’s issues, opportunities and stakeholder perspectives, a specific problem statement and end-sate vision was determined. After researching and analyzing all possible alternative solutions and their risks, an optimal solution and implementation plan is formulated. Ultimately, this paper identifies a two-pronged optimal solution plan for GC to follow to overcome these obstacles and ensure they won’t face them again.

Situation Analysis

Issue and Opportunity Identification

Global Communications is currently facing several significant issues. These issues, as shown in Table 1, may be turned into valuable opportunities if Global Communications executes the proper course of action.

The use of distributive negotiation by GC’s upper management has caused a current impasse on negotiations with the union. Distributive negotiation, as stated by Kreitner and Kinicki, “…involves a single issue – a “fixed –pie” – in which one person gains at the expense of the other.” (2004, p.503). The opportunity lies in GC using an integrative approach and realizing a win-win situation for both parties. GC also used a dominating approach to the conflict at hand with the union. This approach shows, “high concern for self and low concern for others,” (2004, p. 500). In return, their actions caused resentment and distrust from the union. The use of a compromising approach is a valuable opportunity for GC’s future dealings with the union to create a functional conflict environment.

Prior to the current stalemate, GC had some financial problems which led to cutbacks on 20% of education and health benefits for union workers. GC recently decided to not include the union in the decision process of cost cutting measures that immediately affect union workers. Both of these instances together created an environment of mistrust and hostility. These emotional reactions created a barrier to effective communication (Kreitner & Kinicki, 2004, p.525). By recognizing this barrier and using alternative methods, GC has the opportunity to create a more productive environment for all stakeholders.

Ultimately, the lack of GC’s communication competence has led them to the current stalemate. The union was informed of the new strategy through the grapevine and not directly from management. Due to management’s communication channel being slower than the grapevine, resentment and negative attitudes were formed by the union and its members (McShane & Glinow, 2005, p. 346).

The upper management of GC is facing cognitive dissonance due to their inconsistencies between their philosophy of “Our Edge is People” and their decision to layoff employees and cutback on salaries and benefits. Cognitive dissonance is an emotional intelligence barrier which “creates an uncomfortable tension (dissonance) that we are motivated to reduce by changing one or more of these elements” (McShane & Glinow, 2005, p. 115). GC has the opportunity to change one of these elements to create a more stable and comfortable atmosphere.

“Emotional intelligence is the ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself- and others.”(McShane & Glinow, 2005, p.132) A barrier to reaching emotional intelligence is GC’s inability to fulfill all emotional competencies. The four emotional competencies are relationship management, social awareness, self-management, and self-awareness (2005, p.132). While GC is socially aware and has conducted good relationship management with their stockholders and customers, they are lacking in those two competencies with their employees and the union. GC is not being empathetic towards the employees’ and the union’s situation, thoughts and feelings.

The final issue facing GC is the lack of organizational commitment from the union and the employees. Organizational Commitment is, “the employee’s emotional attachment to, identification with, and involvement in a particular organization.” (McShane & Glinow, 2005, p.126) GC’s upper management did not include the employees and the union on any decisions. With GC’s decision to cutback on salaries, benefits and jobs, the employees and the union are in a difficult position to identify with GC due to their main philosophy being “Our Edge is People”. If GC loses the