Global Communications Solution

Problem Solution: Global Communications

Global Communications has been presented in a class scenario as a company in the transition of restructuring their business. (Global Communications Scenario, 2008) This paper will analyze the situation and present the issues and opportunities that have been observed. The stakeholders will be identified and the primary opportunity will be stated in terms of the suggested end-state goals of the company. Alternative solutions will be proposed and analyzed in light of key class concepts and potential risks. Finally an optimal solution and an implementation plan will be proposed. This will be supported with scholarly citations of relevant references from online research and real life experiences.

Situation Analysis

Issue and Opportunity Identification

Global Communications has hired two new executives. Katrina Heinz is the Chief Executive Officer who has been given primary goals focused on revenue, profits, and globalization. Nancy Everhardt is the Executive Vice President of Small Business and Marketing Sales with the goals of driving creative new products and their growth in her sector. Under the direction of the new CEO the executive management team developed a narrowly focused implementation plan to accomplish the mission assigned by the board of directors without input from and cooperation with the union. Since the union was not involved in the plan, Global Communications failed to provide to the union and workforce a controlled communication of the company’s needs. The executive management team failed to work with the union to develop additional possible options that might more effectively meet the needs of both the workforce and the shareholders. They therefore, lost the initial opportunity to select the communications medium and to structure carefully the meaning of the information presented to the employees, and likewise received no feedback from the workforce. These are key communications concepts as presented in the class material. (Kreitner & Kinicki, 2004, pp. 521 - 524) Because of this failure the grapevine means of communication may quickly establish an unofficial and uncontrolled means of moving the information that could be subject to negative outcomes like inaccuracies or an organization mole who might use the knowledge to further his or her own interests. (Kreitner & Kinicki, 2004, p. 542)

Global Communications now has an opportunity to develop a communications plan that would involve the union. Although the executive management team is standing hard on their outsourcing and layoff plan, if they involve the union in honest partnership at this point they may still have a chance to develop a better total solution that could help foster an environment of trust and openness. This may help to reduce conflict and enhance teamwork. (Kreitner & Kinicki, 2004, p. 542)

The supercilious attitude of the CEO toward this solution was evident in the flip remark made by Katrina (The CEO) when commenting to Maria (The union VP) about getting away from the 40th floor. This condescending attitude as well as the inflexibility displayed triggered negative emotions in Maria as she described her embarrassment with the union over the situation. Members of the management team also displayed a heightened level of emotion during their staff meeting. Unless they are managed, these types of emotional episodes will affect the feelings, attitudes and the resulting behaviors of the workforce that Global Communications must count on to be successful in any business strategy. (McShane & Von Glinow, 2005, p. 113, Exhibit 4.2)

The union Vice President, Maria Antez, had recently demonstrated organizational commitment in her negotiating a 20% benefits cut for the workforce with the understanding that it was necessary to benefit the long-term growth of Global Communications while unaware of the outsourcing and layoff plans being made by the executive management team. This was based on previous employee involvement and trust that had been built by establishing good relationships in the past with Sy Rodriguez and Joel Thompson. The hard stance now by the management team on the outsourcing and layoff plan has threatened the “identification with, and involvement in” the success of the Global Communications plan in cooperation with the union. (McShane & Von Glinow, 2005, p. 126)

If the management team can recognize and change their attitudes about the company plan they can take advantage of new ideas from the union and may be able to develop a better solution. At the very least involving the union in the planning will gain a measure of ownership and buy in from the workforce and may support feelings of organizational commitment by the employees.

Stakeholder Perspectives/Ethical Dilemmas

Five individual stakeholders are described in the Global Communications scenario.

1) The Stockholders

2) The Board of Directors (The Board)

3) The Executive Management Team (EMT)

4) The Union

5) The Workforce

Key conflicts are occurring between the parties. The stockholders want the greatest financial gain with the least cost and the Board has directed the executive management team to achieve it. The workforce represented by the union wants stable employment with fair wages and benefits and an opportunity to grow.

The Board has directed the executive staff to focus on the end goals of reducing cost while growing the business. The management team has developed a narrow plan without the input and ideas of the workforce that could have helped to establish a fair plan for achievement of the goals while better meeting the needs of the employees.

This has caused an ethical dilemma in that the company had formerly espoused and highly popularized a philosophy proclaiming that a key advantage of Global Communications was its people. Formulating a major company initiative without perceived careful consideration for the “people” was a violation of that principal, which proclaimed the importance of the workforce to the company.

Another ethical dilemma is the contrast between the recent good faith of the union and the workforce in giving up 20% of their benefits in order to support the long-term health of the company, while at the same time the management team was formulating a plan to outsource technical jobs to foreign countries. The possibility of a legal dilemma associated with potential violation of the intent of the union contract also exists.

Finally