Gap Analysis: Global Communications

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

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Gap Analysis: Global Communications

Global Communications soon came to the realization if business and profits do not increase; they are facing going out of business completely. Over a three year period with the decline in profits of more than 50% the ability for the company to rebound is being questioned. Global Communications has to take action by improving technology and expanding globally. This will result in outsourcing thousands of jobs overseas and a layoff is expected. Alluding to contractual manipulation and unethical business practices the Union has elected to pursue legal action.

Situation Analysis

Issue and Opportunity Identification

Technology has moved forward at an incredible rate. This has allowed many different players to compete within the telecommunications industry. The cable companies have entered the telecommunications market to provide complete solutions encompassing computers, televisions and telephone services. The company soon recognized through their decline in profit some “discrepancy between current state (the way things are) and a desired state (the way things ought to be).” (Bateman and Snell, 2004, p. 10). The opportunity arises to expand globally and grow through introduction of new services for small businesses, align with satellite providers as well as partner with wireless providers.

In order to compete in local markets and step up globally Global Communications decided to move some of the call centers to India and Ireland. Through outsourcing employees there is an opportunity to reduce unit costs for handling calls by nearly 40%. Global Communications will offer the employees a 15% retention bonus to make up for the 10% reduction in pay if they kept their jobs and stay with the company, counseling for employees who do not retain their positions will be also be available. Global Communications has a history of treating their employees well. Executive vice president of Consumer Marketing and Sales is concerned that if Global Communications does not communicate soon to the employees they will hear of the layoffs through the grapevine.

Failure to communicate with the Union leads to a non-collaborative result. “People who have different stakes and perspectives in a decision related to the expenditure of scarce resources should have a voice in the decision process. In most cases, involving them in the process and working through the differences makes it more likely that they will be committed to the decision outcome, even if it is not the one they favor.” (Gomez-Mejia and Balkin, 2002, p. 6-7). In this case Global Communication did not involve the Union in the decision process prior to going public, this resulted in a lose-win situation verses a collaborative win-win outcome if there had been clear communication.

Stakeholder Perspectives/Ethical Dilemmas

Global Communications is at the point where if business and profits do not increase they could go out of business. The senior leadership team has developed a two-pronged aggressive approach. First, they plan to introduce new services primarily to small business and consumer customers, and second they plan to implement cost-cutting measures by outsourcing employment to Ireland and India. This holds an ethical dilemma in that they have to layoff employees and send union jobs overseas. Global Communications values leadership by striving to be the leaders in the telecommunications market. The employees’ interests are to maintain their employment; Global Communications is offering the employees the right to receive counseling due to this layoff. If they maintain their position they will receive a retention bonus to make up for the cut in wages. However, the employees value fairness and respect and would prefer to keep their positions over outsourcing for cheaper services after they have been so loyal. The Unions interest is to look out for the best interests of the employees; their right was to be informed of the layoffs prior to going public. The Union values honesty and communication. Global Communications clearly