Global Communications Problem Solution

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

Problem Solution: Global Communications

In this paper I will be discussing different barriers that Global Communications is facing. Global Communications is seeing a significant decrease in the prices of their stock. Within the past three years it has declined more than 50 percent. With diminishing revenues and profits, Global Communications needs to come up with an aggressive plan of action or they will not be able to withstand the stiff competition of their competitors. Global Communications does not have a strong sense of managing conflict among them. Also, Global Communications, who’s philosophy is that “Our Edge is People”, are not holding to the mission that they have been so widely publicizing. Upper management is not using a proper code of ethics while trying to maintain their business. They are relying on their own judgment for the good of themselves instead of the good of their employees and their company.

Situation Analysis

Issue and Opportunity Identification

Global Communications is in high demand competition with their competitors. They are in need of increasing their market shares. Global Communications plan of action consisted of moving some of their technical call centers to India and Ireland in order to compete globally. Global Communications came up with a proposal to present to the board and showed a reduction in unit costs of up to 40 percent if the board would agree to move the call centers. The board voted and said that they approved Global Communications proposal to go global within the next three years. What Global Communications failed to do was inquiring with the union on their ideas to increase market shares. The union has already given up their educational and health benefits for the company’s long term growth. When the union finally heard about the plans to move call centers and jobs would be cut, wages would decrease and that employees would have the option to relocate, the union was very upset. The union felt that Global Communications went behind their back in order to get what they wanted.

This set up major conflicts between Global Communications and the union. The union even has threatened legal action to resolve the conflicts. When conflict is perceived by one party that its interests are being opposed and negatively affected by another party then this is where major disagreements come to play.” (Kreitner & Kinicki, 2004). Several of upper management does not want this to happen especially since their philosophy is “Our Edge is People”. They felt that this strategy would hurt morale and even possibly hurt their business. It saddened them to see that their job force would be taken away and given to another country. This was definitely not a win-win situation.

Stakeholder Perspectives/Ethical Dilemmas

The main stakeholders were GC executives and the union whom wore in total differences of negotiations. Katrina Heinz, GC, CEO, whom was just recently recruited from a European company, had a main goal of increasing revenue and profits and the only way she could see to do this was by decreasing some of their local call centers. Then relocate their consumer call centers to India and Ireland. Sy Rodriguez, who has been with GC as and Executive VP for more than 20 years, is concerned about all the employees that will be affected by this plan. He is worried about the morale issues that GC will be facing. Nancy Everhardt is new to GC. She is the Executive VP of Small Business and Marketing Sales. She is ecstatic about what is going on an excited about leading the sales representatives at the new call centers. Joel Thompson, Executive VP of Human Resources and Public Relations, he has been with GC for 25 years. He has developed a good rapport with key stakeholders and even the Union. Maria Antez is the VP of the Technologies Workers Union and she thinks the whole plan is just morally unethical. Especially, after they just made a deal with GC to cut out their educational and health benefits to help out the company. She even did this knowing that she was not going to be highly respected by her boss. Lastly, Andrew Mustov, President-Technologies Workers Union, was disgusted with the plan of moving the current call centers to other parts of the world. He was so upset that he has refused to negotiate anything as long as it is pertaining to move the call centers out. He has also informed GC that he would be taking action through both the government and other available