Gap Analysis: Global Communications

Gap Analysis: Global Communications

Global Communications, a telecommunications company, is under economic pressures, and their stock prices are falling. In order for GC to match strength with all the competition, and be able to have a future, they must make changes. Two changes that the Global Communications Senior Leadership Team has decided upon are to create an alliance with a wireless provider and to globalize the company. The GC team faces many issues that they will have to confront in order to make these changes and to make them effective. The issues of globalization, salaries, downsizing, and working with the Union are many issues that will realize many opportunities. In order to take advantage of these possible opportunities, GC has to recognize all groups that have stakes in the company. The stakeholders that have an interest in Global Communications are the senior team along with the board members, the union, and GC’s workers. Each of these groups has rights and concerns where the company is concerned. Every group wants their desires for the company voiced and possibly implemented. GC’s end state goals are to obtain globalization, survive the hard times, and mend all working relations.

Global Communications has been losing money and stock prices are falling. They are looking to the future on an international level in hopes to bring a more competitive company. One issue that they must deal with is the need to compete in local markets and increase their globalization. Small business owners and consumer customers want the ease and access to wireless and satellite services. The GC team believes that outsourcing the call centers to India and Ireland will help with the globalization. The small business centers are looking for technical sophistication, and India and Ireland have it. This is a win-win situation for both Global Communications and the small business owners. This is an integrative negotiation in which a win-win approach gives better results for both parties (Kiniki & Kreitner, 2004, chap. 14). Integrative solutions are generally more gratifying for all involved negotiation, as the true needs and concerns of both sides will be met to some degree. Integrative Negotiation is a collaborative process and therefore, the parties end up helping each other (Spangler, B., 2003).

Another issue that can be seen as integrative, yet also distributive is that salaries will be cut for the remaining workers by 10%, and the layoffs will cause a major morale issue and could impact productivity. GC has created an opportunity for the workers who remain in that they will receive a 15% retention bonus to offset their salaries for the first year or so, and as the business grows, salaries will be increase. The whole scenario is a win for Global Communications, but for the workers who are let go and the workers who stay in an unhappy workplace with a 10% cut in salary, the situation seems to be a loss. In a win-lose situation, known as a distributive negotiation, usually a single issue-a �fixed pie’- is when one gains at the expense of others (Kiniki & Kreitner, 2003, chap. 14). On the other hand, this is a win-win situation because of the workers who do get to keep their jobs, they will receive the bonus and salary increases over the next three years.

GC is maximizing their decisions by downsizing the domestic call centers. This decision will have major implications in that workers will be let go and those who are not will take a 10% salary cut. The Global Communications Senior Leadership Team believes they are maximizing, or making the best possible decision for the company. Bateman and Snell (2004) said this decision realizes the greatest positive consequences and the fewest negative ones. It requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best (chap.3). GC is doing what is best to make the company more competitive and to be here long-term. By outsourcing the call centers they will be reducing unit costs for handling calls at the new centers by 40%. This will be beneficial for the company short and long-term because revenue will not be going to the local call centers, and costs will be reduced by the new centers.

As stated earlier, Global Communications is under major financial pressures, and the Union is trying to help. The Union gave up 20% of their education and health benefits. They were told it was to help the globalization of the company and necessary for the company’s long-term growth. The GC team believes this is an opportunity for the company in that the strategies will benefit the members with higher salaries and more career opportunities. This could be an example of the concept of distributive negotiations, but the Coalition Model