Global Communications. Global Communications (Gc)

In the following paper xxxxx will use the problem solution template and propose a solution to help Global Communications. Global Communications (GC) has experienced a 50% reduction in value and has found it hard to compete in the communication industry. In response to the current business environment Global Communications has placed a new CEO in charge of the organization. Senior management recently proposed a plan to improve the organization's success.

Situation AnalysisIssue and Opportunity IdentificationThe issue that is the root of all subsequent issues is competition. Global Communications (GC) stockholders are grumbling about the poor stock values. In the last three years the stock has seen a 50% reduction in value. There are several markets competing for the same business, which includes cable companies. In response to the market demands Global Communications upper management has proposed a plan to create alliances with other industries to offer a wider array of services to its customers and market internationally. The plan includes out sourcing jobs to foreign companies.

This presents several opportunities for GC such as increased stock value, higher sales, increased revenue, and growth potential, and international expansion. "Generic benchmarking can generate significant payoffs to an organization looking for the solution to a problem."The proposed outsourcing has strained relationship with the Union and the employee friendly relationship with the employees. "Emotions play an important role in workplace behavior." (McShane and Von Glinow, 2004, p. 7) Employees will likely become fearful for their jobs and will experience negative emotions. This will have a toll on employees, motivation, morale, and productivity as a result.

"When performing our jobs or interacting with coworkers, we experience a variety of emotions that shape our longer term feelings toward the company. The more emotions that are positive, the more we form positive attitudes toward the organization and various aspects of it." (McShane and Von Glinow, 2004, p. 10) Global Communications and the Union have the chance to work together to help the company compete and grow which will ultimately benefit the employees. GC has the opportunity to proactively respond to the emotional intelligence of its employees to avoid some of the conflicts among staff and still demonstrate its focus on employees.

The abrupt decision to move operations overseas has not given enough advance consideration of the potential fall out between the employees, the Union, Global Communications, the potential risk in moving so much of its business out of the county, and the cultural issues with moving operations to another country. This offers a significant opportunity of globalization.

The decision to reorganize without involving the Union then lead to the strained union relationship that is a result of poor communication. Ultimately this decision poses ethical, legal, and public relation issues. A breakdown in communication between Global Communications and the Union has resulted in a public dispute between the two. "Effective communication is vital to all organizations because it coordinates employees, fulfills employee needs, supports knowledge management, and improves decision making." (McShane and Von Glinow, 2004, p. 6)GC has an opportunity to provide incentives to its employees to ease the impact on the employees. This also provides an opportunity to show the public and Union that the employees are valued by GC. This could potentially ease the tension between GC and its employees.

Global Communications failure to manage the conflict between the Union and itself stalled negotiations. This resulted in the Union's threats to take legal action against GC. A legal dispute would be financially costly and could deteriorate the public's perception of the employee friendly company. "Conflict among work groups, teams, and departments is a common threat to organizational competitiveness." (McShane and Von Glinow, 2004, p. 34)Global Communications has the opportunity to provide conflict management training to management and staff. This opportunity could reduce conflict and help employees work through his and her frustration. Additionally a proactive approach can show its employees that the organization is concerned with employee confidence.

Stakeholder Perspectives/Ethical DilemmasThe employees' interests are personal as employees rely on GC for income to support his or her families. Feelings of loyalty, cooperation, and respect for GC have diminished. The employees do not want to lose his or her jobs and benefits to a foreign company. The employees have a right to expect honestly and fair treatment from GC and the Union. The employees' interests are moderately reflective of the Union and the shareholders interests. However, the Union and the employees cannot expect the shareholders to support the current business plan and allow the organization to fail.

The Union's interests are financial and ethical. The Union benefits by maintaining a large dues paying employee base to fund the activities of the Union. The Union must show its members that the Union is protecting the best interest of its members. The Union's has a right and ethical responsibility to its members to act in the interest of its members without financial gain.

The shareholder's interests are financial. If the company is profitable the shareholders will see strong financial returns on the investment. The shareholders have a right to push for the business decisions that will yield the highest return on each stockholder's investment. The resources provided by each investor allowed the company, employees, and the Union to proper over the years. The shareholder's values should be honesty and fairness.

There is a direct conflict between the Union, the employees, and the shareholders. The shareholders are focused on the rate of return while the employees are concerned with his or her livelihood. The Union is concerned with the employees' needs and financial support from its members.

Problem StatementGlobal Communications will respond to the stockholders concern over the reduction in share value and stay ahead of competition in the market by evaluating methods for improving profitability and reducing costs.

End-State VisionThere is no option except to outsource operations to foreign markets therefore it is necessary to take a proactive approach to implement measures to reduce the risks. Thinking beyond the crisis and implementing measures to reduce the risk of a negative outcome. To prepare the staff for the changes and negotiate the business changes as amicably as possible there will be a focus on effective communication, conflict management, and successful negotiation. Effective