Global Communications
Essay by 24 • April 21, 2011 • 2,022 Words (9 Pages) • 1,009 Views
Since the past century, many organizations are facing a phenomenon called globalization. The term globalization refers to the movement of people (labor) and knowledge (technology) across international borders. (International, http://www.imf.org/external/np/exr/ib/2000/041200.htm, p1). Global Communications is in the telecommunications industry, and as any organizations within this industry, it is facing too much competition. To address this issue, Global Communication is planning to introduce new services to its small business and to globalize. This business initiative was created by Global Communications senior leadership team and approved by the board. However, conflict exits between Global Communications and Technologies Workers Union following the release of this strategic plan to outsource part of the domestic call centers to India and Ireland. (University of Phoenix eResource, https://mycampus.phoenix.edu/secure/campus/tampamain/student/homepgage.asp, p1-3). In order to identify the gap analysis of this situation, a good understanding of the situation must be gained through the evaluation of issues, opportunities, stakeholder perspective and ethical dilemmas.
Issues and Opportunities Identification
The main issue that Global Communications faces is the increase competition through expansion of services throughout the telecommunications industry. More players have entered the market with broader services. What once was multiple markets because deregulations, has became a single market with multiple services. While it was almost impossible in the past for long distance carriers to be local distance carriers and vice versa, this is no longer the case in the current market. The same issue has created an enormous opportunity for Global Communications to reach business objectives by expanding into a global market.
Since competitive environments yield for price sensitivity, a decrease in productivity cannot be offset by an increase in price as this will leave the doors open to the competition. This dilemma calls for immediate action in order to remain in business. Outsourcing then becomes a splendid opportunity, but it also represents a great factor as decisions that resulted from trying to remain competitive can directly impact morale within the organization. The opportunity in this case is to meet business objectives while focusing in performance management. Many companies recognize the risks associated with not keeping up with industry changes. Companies can best respond to rapid industry changes by taking advantage of emerging opportunities.
Stakeholder Perspectives/Ethical Dilemmas
Technologies Workers Union seeks to maximize compensation and job stability for its workers by retaining domestic jobs, and Global Communications seeks to maximize shareholders value by outsourcing. This clearly shows how the interests of Technologies Workers Union and Global Communications are in direct conflict with each other. Part of the ethical dilemma is whether or not to outsource (reduced jobs) in the name of profitability, but the biggest ethical dilemma to address is the lack of communication from Global Communications to Technologies Workers Union. This lack of communication could set a negative precedent in the relationship between the company and the union.
Problem Statement
Global Communications will take a leading position within the telecommunications industry by building strong relationships and utilizing creative, innovative and technological advantages.
End-State Vision
In aiming to become a truly global company, Global Communications will need to maximize competitive advantages and develop successful partnerships between shareholders and stakeholders.
Alternative Solutions
Global Communications lacked effective communication with the Technologies Workers Union. Global Communications can build a strong relationship with the Technologies Workers Union through proper communications channels in order to have it complete support. Global Communications will partner with and involved Technologies Workers Union in strategic plans affecting the union workers.
Global Communications wants to globalize and outsource. Global Communications has the opportunity to outsource the domestic call centers to India and Ireland. Global Communications will develop a good outsourcing plan and reduce cost in order to remain competitive.
Technologies Workers Union has limited its function to bargaining negotiation and after the fact involvement. Technologies Workers Union can become more proactive and get involved in strategic decision-making processes with Global Communications. Technologies Workers Union will develop a strategic plan outlining the human capital transition during the outsourcing implementation.
Analysis of Alternative Solutions
In order for Global Communications to be successful in outsourcing domestic call centers to India and Ireland, it must develop a solid partnership with Technologies Workers Union as the transition can fail if the union workers go on straight. By the same token, Technologies Workers Union will need to become more proactive in their involvement with Global Communications, understand the nature of competition and proactively outline a plan on how the human capital can transition during the outsourcing implementation. This action will put them a step ahead of the game and will provide a great opportunity to start negotiation with Global Communications. These two alternative solutions received a 3.67 overall grading because they both go hand and hand and they are directly related to each other. Communication is an important factor in all organizations. Although it will be ideal for Global Communications and Technologies Workers Union to develop a solid relationship, the outsourcing can take place without a solid relationship between Global Communications and Technologies Workers Union. Therefore, the rating was slightly below middle to high in importance.
On the other hand, Global Communications must develop a good outsourcing plan considering the best practices and possible obstacles as the driven force is to reduce cost in order to remain competitive. This is an important factor rating 4.00 and without it successes, there will be no point in the whole outsourcing dilemma.
Risk Assessment and Mitigation Techniques
Global Communications will partner with and involved Technologies Workers Union;
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