Global Communications Solution Paper

Problem Solution: Global Communications

Global Communications has decided to expand globally by offering new services in small business and consumer products. With partnerships with a satellite provider; Global Communications can realize the potential of becoming a global presence. To complete this motive, Global will outsource call centers to India and Ireland. This motion will cut costs by nearly 40%. This project appears to be on course and seems to be a win-win situation for the company and the stakeholders. However; the project is now being challenged by the Union in regard to the new Union Bargaining Agreement. In order for Global Communications to move forward they are going to have to repair their image with the Union, communicate company directive with employees, decide if outsourcing is the right thing to do, and develop their leaders to implement change. Global Communication leaders can develop an educated decision to what path to take. Using the nine-step decision-making model and by benchmarking companies that have traveled similar paths, Global Communication leaders can develop an educated decision to what path to take.

Situation Analysis

Issue and Opportunity Identification

Global Communications is a struggling telecommunications company in need of reform. The advancements in technology have been ignored by Global and have caused the stakeholders to question the company’s direction. Global Communications

Upon wind of this proposal, Union officials have raised concern for the welfare of employees. According to the Union, there has been no previous knowledge of this plan. Union officials are now claiming that Global Communications actions are an un-ethical way of skating around the Union agreement. Global Communications is claiming that this is erroneous and that this is necessary for the company’s long-term growth. The Union and Global Communications are engulfed in a form of dysfunctional conflict. "Some types of concept conflict support the goals of the organization and improve performance; these are functional, constructive forms of conflict. Additionally, there are those types of conflict that hinder organizational performance; those are dysfunctional or destructive forms." (Kinicki & Kreitner, 2003, p. 6)

This comes after successful contract negotiations were reached between the two parties that was a win for Global Communications and a loss for the Union and employees. The Union negotiated to the employees that a cut in their health benefits was necessary for the long-term growth of the company. “A distributive negotiation usually involves a single issue - a ‘fixed-pie’- in which one person gains at the others expense. (Kinicki & Kreitner, 2003, p. 71)

The Senior Leadership Team views the cost-cutting measure as the only measure available for the future of the company. The haste in this decision may have overlooked other possible options. Western decision makers are often in a rush to make quick decisions. They want to outpace competitors to be the first to market or meet their quarterly earnings targets. (Hoch, S. 2001, p. 8-9) In fact, the process has already been accepted by the Board of Directors in a recent meeting with the Katrina Heinz (CEO). Because of their acceptance, Katrina is focused on this organizational change. Egos can cause political battles, turf wars, and pursuit of power, credit, and resources. Egos influence how people treat each other as well as our receptiveness to being influenced by others. (Kinicki & Kreitner, 2004, p. 24)

According to members of the Senior Leadership Team, the morale is beginning to diminish among the employees. Word is out about the possible direction of the organization and it is quickly spreading through the grapevine. The grapevine works through informal social networks, so it is more active where employees have similar backgrounds and are able to communicate easily. (Mcshane, 2005, p. 88)

Stakeholder Perspectives/Ethical Dilemmas

The conflict begins with the perspectives of the stakeholders. The Board of directors, CEO, and Senior Leadership Team are interested in expansion, market share, and organizational costs. They will decide and implement the business decisions. Their goal is to provide a return on investment for all the shareholders. The dilemmas facing this group would be how they have arranged to move forward on the outsourcing project without divulging any information to the Union.

The Union is interested in job security for the employees. They are the bargaining liaison between the employees and Global Communications. Their interests concern the working conditions for Global employees, including benefits and wellbeing. The employees are interested