Global Communication

PROBLEM SOLUTION: Global Communications

Problem Solution: Global Communications

Carol Kochlin

University of Phoenix

MBA 500

Bernadette Tjarks, PhD

October 2, 2006

Problem Solution: Global Communications

Communication miscues on the part of Global Communications has created an environment of suspicion, mistrust, damaged credibility and declining stakeholder commitment.

Employee job satisfaction and customer loyalty have all plummeted since the announcement of outsourcing and layoffs. While Global Communications has acknowledged its miscues, leaders did not fully evaluate the impact of these decisions on the workplace culture. The attitudes and beliefs of the stakeholders will have a profound impact as Global Communications seeks to increase its presence in the telecommunications industry.

Describe the Situation

Issue and Opportunity Identification

Global Communications leaders have an opportunity to establish its place in the telecommunications industry but to get there will require the alignment of its stakeholders. The task at hand is to build organizational commitment through employee involvement, job security and increasing employee trust of management, and while focusing on the satisfaction on shareholders Union representatives and Board members. Add to this the impact of leaders own ethical dilemmas and one will understand the challenges that lay ahead for Global Communications.

Issue Identification

As a result of increased competition by cable and telephone companies, Global Communications was forced to develop a plan of action to increase stock values and stockholder confidence. To do this, Global Communications developed a two pronged approach which included creating alliances with a satellite provider to enhance their presence in the local markets and impose cost-cutting measures to launch efforts towards globalization.

Through this process, Global Communications intended to outsource much of its workforce, impose layoffs and failed to communicate their intentions to the Union, who previously agreed to a 20% reduction in benefits to enhance the opportunity for Global Communications long-term growth.

Opportunity Statement

Table 1 describes the opportunities available to Global Communications that will increase its market share and repair its relationships with employees and the Union. The ability to compete in the global marketplace will increase profits and stabilize the future financial viability of Global Communications. Global Communications can demonstrate commitment to its employees and Union representatives by fostering an atmosphere of trust and loyalty through the development of focus groups. These focus groups will be instrumental in the development of clearly defined values set which will aid in aligning all stakeholders, therefore; increasing Global Communications visibility in the telecommunications industry.

Stakeholder Perspectives/Ethical Dilemmas

Table 2 demonstrates the ethical dilemmas that surfaced with the stakeholders of Global Communications. The Union suspects Global Communications knowingly withheld information critical to negotiations. The Union feels betrayed and as a result a wall of mistrust has developed. Engaging the Union in the process of decision-making, values development and Global Communications agreement to reduce the benefits cuts to 10% instead of 20% will begin to foster an environment of trust and collaboration.

The outsourcing of employees and subsequent lay-offs has also created a culture of mistrust, suspicion, and loss of commitment from the employees. Global Communications can mitigate this by open communication from its senior staff and a demonstrated commitment to fair and ethical contract negotiations.

Global Communications has a responsibility to its shareholders and other stakeholders. Through the implementation of new services, cost-cutting measures were determined. Outsourcing of employees was the best way to increase global presence and reduce costs. The layoffs and outsourcing will still occur, however; Global Communications has an opportunity to re-define its values and commitment to all stakeholders by involving them in every aspect of the transformation.

Frame the "Right" Problem

Global Communications will establish itself as a leader in