Global Communication

Global Communication Benchmarking

Introduction

The following analysis is to try and explore how the selected companies followed the Problem based learning model. Evaluate if the decision making process was used in mapping up their strategies. Assess the similarities and differences in the problems of these companies. We will review if Global Communication has similar problems or not with the researched companies and compare how they handled their problems. The companies that we will be looking at are; Ericsson-telecommunications equipment manufacturer, Delta airlines, Tata Steel Manufacturing company, Philips Energy, International Business Machines (IBM) and General Motors (GM).

Key Course Concepts identified:

Communication

“Effective communication is vital to all organizations because it coordinates employees, fulfills

employees’ needs, supports knowledge management, and improves decision making.”

(McShane & Von Glinow, 2005). In every organization, many different methods of communications are employed in order to function as an effective unit. In this analysis a few methods were identified as the key concepts in organizational communication and the dimensions of communication.

“The choice of a communication medium is assumed to be rational; users match the characteristics of a particular medium to a specific task or communication objective.” (Carlson and Zmud 1999; Lee 1994; Te’eni 2001). Global Communication has chosen the public media to announce the company’s decision in the form of public news prior to making the announcement within the company to make the employees aware of the situation. Media usage in decision making is influenced by the characteristics of the decision being made (e.g., importance and urgency), and the user’s decision making role.” (Jones, Saunders, and McLeod, 1989).

Hierarchical communication is defined as “those exchanges of information and influence between organizational members, at least one of whom has formal (as defined by official organizational sources) authority to direct and evaluate the activities of other employee”

This communication pattern involves information exchanged downward from manager to employee and upward from employee to manager.” (Kreitner & Kinicki, 2004). Ericsson has chosen to employ this method to announce the company decision to the employees and union and also receive feedback from employees and union regarding the decision. The company also actively listened to employees’ concerns and provided feedback to employees.

“There are two main types of channels of communication: verbal and nonverbal.” (McShane & Von Glinow, 2005). Delta Airlines has used both channels of communication to relay the message of company’s decision to all levels of stakeholders. A letter from president was sent to employees as a form of non- verbal communication. The company has also made the verbal announcement to the employees before the news were released to public.

“The grapevine is an unstructured and informal network founded on social relationships rather than organizational charts or job descriptions” (McShane & Von Glinow, 2005). Philips’s employees’ union found out about company decision of layoffs from a grapevine originated overseas. Philips later made a public announcement confirming the news the union received from the grapevine without consulting with the union first.

Tata and GM have both chosen a similar communication channels вЂ" they both enlisted 3rd party companies to handle the communication issues. Tata has used a consulting company to convey all relevant information to all parties involved, while GM has enlisted a company for long term communication plan. The company executives as well as employees also used blogging as their means of communication.

IBM has chosen a company intranet to reach all employees, which was revealed by the employees as the most trusted source of information.

Decision making

Decision making is a process that needs to be followed clearly to avoid any pitfalls. Global Communications when faced with competition, management had to decide on what to do, how to do it and when.

General Motors faced with a problem of shrinking North American market due to competition from the Asian auto makers had to make a decision on how to survive by going globally. Delta Airlines when faced with increasing costs made a decision to contract out non core business. Tata steel needed to penetrate the global market made a decision to acquire Corus steel of Netherlands. International business machines (IBM) was facing stiff competition and it decided to move its operations to Bangalore and India where skilled labour was affordable. When Philips was faced by an unprecedented competition it decided to reorganize itself into three strategic business units managed by deferent executives. Ericsson, the Swedish provider of telecommunication equipment facing high costs and competition decided to outsource some of its services.

Decision making evolves through stages, the first stage is accepting the existence a problem and the need to solve it When GM executives acknowledged that there was a problem decided it must be solved for it to survive. This is a similar case with the companies like Philips, Delta Airlines.

The second stage in decision making is �generating alternative solutions.’ Tata generated two alternatives, one was to construct a new manufacturing plant in Europe and the second one was to do an acquisition or merger. The airline industry after September 11, 2001 had problems of decrease customer numbers. One of the alternatives was to reduce air fares or offer innovative packages to attract customers.

The third stage in decision making is �Evaluating the alternatives’. Tata found out that constructing a new steel manufacturing plant from the ground was going to take