Problem Solution: Global Communications

PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

Milena Thompson

University of Phoenix

Situation Analysis and Problem Statement: Global Communications

Global Communications’ senior management has developed a new strategic plan to help the company realize growth, increase profitability and become a global source in a very competitive market. The plan has been met with some controversy from key company stakeholders. The following analysis uses the 9-step problem-based learning model to formulate the “right problem” and identify alternative solutions for Global Communications. The alternatives are evaluated using weighted criteria and the solution which best meets the end-state goals is selected. Finally, an implementation plan is recommended for the company and the results are evaluated using metrics and target indicators.

Describe the Situation

Issue and Opportunity Identification

Global Communications is a telecommunications company competing with an increasing number of local and long-distance service providers. To combat the loss in market share and increase profitability, Global Communications is planning to implement a growth plan by cutting costs and introducing new features for its business and consumer customers. Management believes that moving some of Global Communications call centers to Ireland and India will reduce unit costs by 40% and will provide an international exposure for the company. This strategy will cause the layoff of a number of domestic workers, while others will need to relocate and take a 10% pay cut. Global Communications goal is to improve profitability and become a global telecommunications resource.

Global Communications is planning changes to its business structure and operations that would affect current employees and other key stakeholders such as the union which protects employees’ interests. Employees can influence organizational effectiveness by their commitment and loyalty. Organizational effectiveness is defined as “how effective an organization is in achieving the outcomes the organization intends to produce (Wikipedia).” Change can disrupt employee commitment and affect job performance. There are several ways to build organizational commitment and loyalty to ensure future success: “(1) justice and support, (2) job security, (3) organizational comprehension, (4) employee involvement, and (5) trusting employees (McShane & Von Glinow, 2004).” This is an opportunity for Global Communications to create better communication channels to reach employees and other stakeholders, increase employee involvement in the process, thus, increasing organizational comprehension, transparency to management actions, and trust. Working together with key stakeholders, the company can find creative solutions to problems and identify a “win-win” situation that can benefit all.

Organizational change can also affect job satisfaction. Job satisfaction is defined as “a person's evaluation of his or her job and work context (McShane & Von Glinow, 2004).” Job satisfaction in turn affects customer satisfaction. The "employee-customer-profit chain" model states that “increasing employee satisfaction and loyalty results in higher customer perceptions of value, which improves the company's profitability (McShane & Von Glinow, 2004).” As Global Communications’ main goal is to increase profitability and growth, the company needs to evaluate the effect the planned changes will have on employee job satisfaction and ultimately customer satisfaction and overall profitability.

Stakeholder Perspectives/Ethical Dilemmas

Global Communications’ key stakeholders include: the shareholders of the company, the senior management, the non-managerial employees, the union, the customers, the community, and others. Stakeholders of a corporation are defined as "the individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and that are therefore its potential beneficiaries and/or risk bearers (Wikipedia)." The main interests of the shareholders and the senior management are profitability, performance and growth of the company. The union and the non-managerial staff, on the other hand, are interested in maintaining jobs, job security, wages and benefits. The customers are interested in receiving quality services and value for their money. The company’s outsourcing strategy is causing some