Gap Analysis Global Communications

Gap Analysis: Global Communications

Global Communications is a company that prides itself on being a people friendly company. Recent developments in the telecommunications industry have caused stock prices to plummet more than 50% over the past three years. To rebound, Global Communications has quickly put into place a strategy that involves jumping into the global market and outsourcing jobs to help reduce costs. The main problem with this aggressive approach is the lack of communication between the Global Communications Senior Leadership Team and the Technologies Workers Union. The friction this has caused, along with the impending layoffs, has the Union accusing Global Communications of contract manipulation and threatening possible legal action.

Situation Analysis

Issue and Opportunity Identification

Global Communications has recently negotiated a contract with the Technologies Workers Union that decreased the members' education and benefits by over 20%. The Union representative only agreed with this decrease because she felt that it would allow the company to prepare for some long-term growth, which in turn would benefit the Union and its members. Now Global Communications has failed to include the Union in important communications regarding layoffs and the outsourcing of jobs.

Stakeholder Perspectives/Ethical Dilemmas

The interests of the stakeholders are similar in that most everyone is interested in the success of the company. The consumers are the only ones who do not have a direct stake in the company's success, or failure. As the company grows, shareholders see bigger returns on their investments, employees see larger salaries and more opportunities, and the Union recruits more members as the company expands its' workforce. If, however, to be successful, the company outsources jobs, then the company no longer has the employees', and Union's, interests in mind. As jobs move to India and Ireland, employees lose their jobs, and the Union loses credibility with its' members. Consumers are also affected by this type of move as they are now required to interact with representatives from other countries, which may not be the best of experiences in some cases.

The company has the right to move jobs where ever they choose to ensure that they are providing consumers with the best products and services at the most competitive prices and be profitable at the same time. In this process, they are infringing upon the rights of the employees, Union, and, ironically, the consumers. Employees have the right to the pay and benefits set forth in their Union contract. When jobs are outsourced, the Union loses its' right to provide the business with skilled laborers and the right to provide skilled laborers with jobs. The consumers have the right to do business with whom ever they choose and when companies outsource jobs, consumers begin to exercise that right, assuming, of course, that competitors are available in their market.

When it comes down to the values of the stakeholders, this is where the ethical dilemmas surface. The company, Union, and employees all have a social responsibility; the difference is in who that social responsibility is to. The company has a responsibility to its' employees to pay them the wages they deserve for the work they perform. They are responsible to their consumers to provide them with the quality products and services they have committed to at affordable prices. There is a responsibility to the Union, and employees, to follow the contract. Finally, the company has a social responsibility to the shareholders to do everything in their power to increase revenue and decrease expenses. At the same time, the company is expected to be honest and show some integrity. When the company says they will do something, it is expected that they will and if for some reason they do not, consumers lose faith and begin to mistrust the company.

Another value that is shared by the company, Union, and employees is accountability. The company is accountable to their shareholders, the Board, and to consumers. The Union is accountable to its' members, and the members/employees are accountable to the company and the Union. Unfortunately, ethics do not always play a role when it comes to the financial dealings of a company. Shareholders expect a company to perform at a certain level and they do not always care how the company reaches that level. The most ethical route to take may be to keep jobs in the United States, which would make the Union and employees happy, but the best situation from a financial aspect is to move the jobs to another country where wages are lower. It also becomes difficult when jobs need to be moved to allow consumers access to a higher level of technological information. The company is walking an ethical line when it negotiates a contract that takes away from the educational opportunities for employees, and then moves jobs to another country using the excuse that they have the advanced knowledge needed to complete the new job functions.

End-State Vision

Global Communications will successfully enter the global market and compete on that level with the support of the Technologies Workers Union. Communication between the two entities will be a strong factor in their success.

Gap Analysis

Global Communications needs to spend time rebuilding their relationship with the Technologies Workers Union. The contract negotiation left the Union feeling as if they were the only party giving up anything to help the Company achieve their long-term goals.