Global Communications Problem Solution

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

Diane K. Parsons

University of Phoenix

Problem Solution: Global Communications

Global Communications (GC) is a telecommunications company that is in the midst of upheaval. Faced with a diminishing market because cable companies are entering the telecommunications markets by offering services that include video, internet and voice, Global Communications has had to make some difficult decisions in the past that have resulted in an eventuality that Global did not anticipate and therefore, was unable to plan for. The employees’ union has decided to take action against Global Communications, citing contract manipulation and an inability to come to an amicable conclusion.

On the face of the situation Global has decided that the problem too much competition. However, upon careful analysis, the main problem is not competition but instead the way in which Global Communication went about finding a solution to the problem that existed. The purpose of this paper is to discuss the problem at Global Communications, determine suitable alternatives that will meet the needs of all concerned stakeholders and finally implementation of those alternatives in a manner that will derive the best results possible and that will ensure that Global Communications will not end up in the same situation.

Situation Analysis

Issue and Opportunity Identification

Global Communications once played a major role in the communications market where its stock was valued at $28 per share. However, because of increased competition the market has taken a turn for the worse where shares, after a three year period, are valued at only $11. Global Communications’ leadership team has found themselves in the midst of a crisis. They found that they were losing market which resulted in devaluation of the company’s stock. In an effort to mitigate those loses, the team made some hasty decisions. While those decisions were aimed at improving the outlook for Global Communications they lacked several important factors which play a part in effective decision making.

First, GC did not follow the steps necessary for proper decision making. According to DeJanasz, Dowd and Schneider “problem solving is a cyclical process composed of four steps: Plan, Do, Check, Act (PDCA).” However, GC did not follow this model instead they skipped two of the most important steps; they did and acted and never considered planning and checking. GC can take this opportunity to take a fresh look at how they solve problems and the resulting decisions. Instead of deciding on a plan and acting on it, they need to follow all the steps involved to ensure a successful outcome once the plans are enacted.

Second because of the rapid rate that the stock value was falling GC’s leadership team believed that they did not have time to discuss their decisions with employees and quickly made the decisions they felt would be best. In an effort to cut costs GC decided to move its calling centers to India and Ireland where labor costs are much cheaper. In effect, without much consideration the leadership team drastically cut its US labor force leaving many of its faithful employees jobless. These actions left employees feeling isolated as GC did not consider the impact that this decision would have on the employees. However, GC has the opportunity to turn the reaction of the employees around through relationship management which “refers to managing other people’s emotions…[it] includes inspiring others, influencing people’s beliefs and feelings, developing others’ capabilities, managing change, resolving conflict, cultivating relationships, and supporting team work and collaboration.” (McShane & Von Glinow, 2005)

Third, GCs CEO did not reason with emotion or understand the consequences of her actions with the decision to layoff so many employees. She was therefore, unable to regulate the emotions of the employees. In the future GC has the opportunity to make decisions taking into consideration the impact on its employees using emotional intelligence. “Emotional intelligence is the ability to perceive and express emotion, assimilate emotion in thought, understand and reason, with emotion, and regulate emotion in oneself and others.” (McShane & Von Glinow, 2005) GC also did not take into account the fact that employees believed they had a psychological contract with them. The employees believed GC was obligated to inform them of major decisions that were being made about their future employment before the decisions were made. They believed that they should be involved in the decision making contract. “Psychological contract refers to the individual’s beliefs about the terms and conditions of a reciprocal exchange between that person and another party.” (McShane & Von Glinow, 2005)

Finally Global Communications chose to email its leadership team and the union executive with regard to major decisions that were being made regarding the future of the company. GC failed to communicate effectively to its stakeholders. They did not take into account the crisis that this situation would create once the union became aware of what was happening to its employees. The communication reached the union via the grapevine. “The grapevine is an unstructured and informal network founded on social relationships, rather than organization charts or job descriptions.” (McShane and Von Glinow, 2005) This in itself was a breakdown in effective communication. They also communicated vital information regarding the decisions they had made to major stakeholders using the incorrect form of communication. They used emails to discuss important information instead of using face to face meetings which are media rich. “Media richness refers to the medium’s data-carrying capacity- the volume and variety of information that can be transmitted.” (McShane & Von Glinow, 2005) In order to turn things around for the company GC’s leadership team needs to take this opportunity to implement the proper communication mediums to help them to communicate better with their employees because “effective communication is vital to all organizations because it coordinates employees,