Global Communications

Problem Solution: Global Communications

Kathy E. Wagner

University of Phoenix

Problem Solution: Global Communications

Well-known on Wall Street, Global Communications is a confident telecommunication corporation with obligations to its employees and stockholders to remain a competitive market leader in the communications industry and increase profits. To meet the obligations of their employees and stockholders, Global Communications negotiated a strategic plan to reduce costs and increase profits and growth. The initial negotiation was successful; however, the Senior Leadership Team failed to include the Union in the negotiation process. As an example of failure in negotiations, Global Communications' goal was to create a plan with the Union to reduce costs using the Union labor force. Failing to recognize the Union's interests, Global Communications negotiating team reluctantly created a win-lose situation which lead to conflict To move forward, Global Communications can exceed its obligations to their employees and stockholders by developing a co-management plan, skills and culture that will be necessary for successful management, communications and negotiations.

Situation Analysis

Issue and Opportunity Identification

Global Communications has been experiencing more competition for the past three years. In addition, the company has experienced steadily decrease in profits and growth. The combination of these factors led to significant declines in the stock's value, and stockholders are not thrilled with the outcome. In reverse these trends, Global Communications' senior leadership team has decided to pursue a strategic plan that can simultaneously reduce costs while increase profitability and growth. Seeing themselves as a market leader, Global Communications proceeded with the negotiation process. However, the Union was unaware of any negotiations regarding the strategic plan. Though they offer good products and services, Global Communications lacked the same excellence in management, communication and negotiations, as illustrated clearly in the issues identified in Table 1.

Stakeholder Perspectives/Ethical Dilemmas

Among the stakeholders identified in Table 2, the potential conflict between stockholders and employees will have the most significant affect on Global Communications. Global Communications management's goal is to reduce labor costs; however, the This goals fits well with the stockholders of Global Communications who desire the increase value of stock. Simultaneously, however, employees of Global Communications are facing the possibility of lost employment. One of the dilemmas facing Global Communications is the concurrent need to increase growth-profits-reduce costs- and hence increasing the stock's value for its stockholders- while maintaining commitments to its Board of Directors and employees. The ethical question facing Global Communications management deciding which group they respect and value the most. In deciding to pursue further negotiations with Union, management signaled to employees that their most important allegiance is their stockholders. This serves as an example of Global Communications' aggressive approach to negotiations, and illustrates and win-lose mindset. The main ethical dilemma is the Union. In past negotiations, the Union had to cut education and health benefits by 20%. Now the Union has to make more cuts when management withheld information about up-coming changes within the company. The community is another ethical dilemma. The community will lose call centers and jobs which will affect the community's economy; but the unemployment rate.

Problem Statement

After evaluating the opportunities uncovered by the negotiations with the Union, it is important for Global Communications management to apply lessons learned. Operating in an increasingly global market, having the opportunity to implement a Union (labor)-management alliance is critical to the long-term success of any organization. Global Communications will enhance the company's market value by developing tools needed for success in management, communication and negotiations.

End-State Vision

The vision of Global Communication's management is to create an organizational culture of win-win pervades business decision-making. In creating this culture, Union (labor) - management alliance will become central and help provide rational negotiations and decision-making. This new collaborative culture will embrace negative conflict as a positive force and developing organizational governance. Moving beyond the boundaries of a single entity, Global Communications will form communication networks that enhance efficiency and effectiveness in attaining organizational goals.

Alternative Solutions

In an article in the Industrial and Labor Relations Review (2000), researchers analyzed the General Motors-United Auto Workers partnership at Saturn found several answers to the question why the automaker formed the Union (labor)-management alliance to compete. The study included data used from surveys, interviews, direct observation and records of quality performance. The study was a long-term project with the Saturn Corporation and UAW Local Union 1853 from February 1992 through February 1998. The key objective identified was the partnership was envisioned as a form of organizational governance to allow management and the union to jointly run the business. Each department is managed by union and non-union represented advisors. Three dimensions were analyzed: communication and coordination behavior; balance between production management and people management and alignment between stakeholders. Under this partnership, the union was credited for building a dense communication network throughout Saturn's management system. Union advisors compared to non-union advisors showed greater levels of lateral communication and coordination which has a significant positive impact on quality performance. The joint design created the opportunity for the Union as a full partner in product, service and management decisions. The management-union leadership established a co-management system whereby bargaining unit members filled operations management positions.

In a comprehensive review of empirical evidence on workplace innovation, Ichniowski, Kochan, Levine, Olson & Strauss (1996) concluded systematic transformations of work