Problem Solutions: Global Communications

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

Problem Solution: Global Communications

Global Communications is under tremendous pressure to keep up with its competitors in the telecommunications industry, and its falling stock prices reflect this problem. The company is under a lot of pressure from stockholders to rectify this problem. The bottom line is that Global Communications must rise to the occasion and put themselves in a more strategic position by offering its customers better, more attractive services than those of its competitors. The following pages will review the situation, clearly state the problem, lay out the end-state vision, propose and analyze alternative solutions, identify and examine potential risks, present the optimal solution, illustrate the implementation plan, and definitively evaluate the results.

Situation Analysis

Issue and Opportunity Identification

There are several issues facing Global Communications (GC) in this scenario. The first issue is Global Communications’ plummeting stock price. Generally when this happens, stockholders and members of the Board of Directors will demand that immediate, corrective actions be taken. The second issue faced by Global Communications is increased competition. This is a difficult issue to resolve and is also a main reason why GC's stock has been slumping. A third issue that Global Communications faces is the fallout from the layoffs that it has planned.

Global Communications plans to cut costs and become more competitive by moving some of its call centers to India and Ireland. This move may save the company money, but what will be the resulting cost in human capital? Internal communications within the company is a fourth issue. Global Communications as an organization should consider all possible motives to resolve issues and make the best decisions. By improving decision making, knowledge management, employee needs and coordination; the company can progress and retain its name in the communications industry. Workplace communication has a significant effect on organizational performance (McShane & Glinow, 2005). Global Communications is faced with economic issues, and are attempting to restructure the company. Through the plans they are trying to implement, Global Communications is having difficulty communicating the information to its employees. Global Communications is known for treating its employees well, so it does not want to ruin that reputation because its employees are a vital part of the company. Local, long-distance and international markets are all competing for the same business but the industry suffered a huge blow at the hands of the cable companies. Global Communications has to take steps to improve on its technology as well as outsource its existing technical call centers to India and Ireland for effective cost cutting.

Stakeholder Perspectives/Ethical Dilemmas

Global Communications finds itself at a crossroads and must act quickly to solve the current dilemma. GC has seen its revenues dip, and due to intense competition in the industry the stock price has dipped from a high of $28 three years ago to its current price of $11 a share. The management group has decided that it must act now to increase revenue by introducing new services through partners and reduce costs by outsourcing call centers currently hosted in the United States overseas to India and Ireland. But management did not involve one of its key stakeholders, the Technology Workers Union, in the decision process, and that group is now threatening to take legal action. With many workers faced with either job loss or a reduction in salary, employee morale is at an all-time low. Here in this situation management should start using integrative negotiation with the union and come to some conclusive decision which will be beneficial to both parties. “In most conflicts, more than one issue is at stake and each party values the issues differently. The outcomes available are no longer a fixed-pie divided among all parties. An agreement can be found that is better for both parties than what they would have reached through distributive negotiation. This is an integrative negotiation” (Bazerman and Neale, p. 27). Additionally, there is an understood obligation on the part of the union to the employees. They must protect the employee rights, benefits and ensure that they remain employed. It is important that union be informed every step of the way with what is going on with the company and what is expected of the employees