Global Communications

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

University of Phoenix

Problem Solution: Global Communications

Global Communications is a telecommunication company that is under a great deal of economic pressure to become a leader of technology in a very fast past and high demanding world. However, in order to do that they must make certain drastic changes that will affect a majority of their technical support personal as well as their company morale and their company image. According to McShane and Von Glinow, a company such as Global Communications can help improve their bottom line "by improving decision making, knowledge management, employee needs and coordination," because "workplace communication has a significant effect on organizational performance" (McShane & Von Glinow, 2005, p.4). However, Global Communications biggest challenge is dealing with the current employees and the undeniable fact that many of them will be losing their jobs.

Global Communications is facing new challenges that involve the management, the stakeholders and the needed expansion of new technologies. Global Communications is in a situation where a new business strategy must be implemented and that business strategy involves creating partnerships with satellite and wireless providers, becoming a global company, changing the company values and outsourcing the technical call centers. Because Global Communications has had recent negotiations with the Technologies Workers Union, the outsourcing of the call centers will prove to be the greatest challenge. In order to be more competitive at the local level, Global Communications must make the necessary changes immediately. This change involves the creation of partnerships with other companies, expansion into new markets and the elimination of many jobs. The important factor in this situation will be how Global Communications communicates with the stakeholders regarding the changes within the company.

Issue and Opportunity Identification

Global Communications is in a situation where stock prices are falling, profit margins need to increase and communication is essential to both its future as well as it present existence. In today's society, the communications market is focusing on new services for small business' and general consumers. In order for Global Communications to be competitive, they must offer video and satellite broadband services as well as wireless internet services with remote access to a main frame computer. "Videoconferencing, also known as teleconferencing uses video and audio links along with computers to enable people in different locations to see, hear and talk with one another." (Kreitner & Kinicki, 2005, p. 32)

This form of communication could also help develop a link with the employees directly and eliminate gossip opportunities by providing accurate and up to date communication forums. "Communication refers to the process by which information is transmitted and understood between two or more people." (McShane & Von Glinow, 2005, p.2) Because Global Communication is well known for treating its employees in a professional manner, it is crucial for the company to communicate to the employees the importance of taking Global Communications to next level but more important, to explain clearly how some of the company changes will be directly effecting the employees.

In order to become a global communication resource, Global Communications must increase their profitability which means moving the technical call centers to India and Ireland in order to reduce the cost of handling these calls by 40%. This move will also provide the consumer with better customer support in regard to the technical support centers. And due to recent cutbacks, the company has already cut the education benefits by nearly 20% therefore, making the move regarding the technical support issues to India and Ireland even more important. "In the world of increasing globalization and cultural diversity, organizations face new opportunities as well as communication challenges." (McShane & Von Glinow, 2005 p. 20)

The technology industries are a rapid changing business with many competitive pressures. Within the last three years, Global Communications has witnessed a 60% decrease in the overall stock value. Due to this decrease, the stockholders are putting pressure on the leaders of Global Communications to become more competitive. Global Communications has created a plan that would allow them to be a leader in the telecommunications industry within three years. To beat the competition, Global Communications must be able to offer more products and better service. This means that Global Communications must become a service provider that does not limit the possibilities of the expansion of cable television, internet, telephone, satellite and wireless communications. By forming partnerships with other cable, satellite and wireless companies, Global Communications will have the necessary advantage as a technological competitor. Global Communications first step is to take care of their current customers by providing both the consumers and the small business with local and long distance services throughout the country. Offering new services to existing customers may boost the trust and loyalty with the current customers that Global Communications has the potential for growth in order to meet their customers needs.

Secondly, Global Communications must move their technical support call centers to offshore companies. This process will mean that all the domestic call centers will be closed or significantly decreased. Although the board of directors is confident in plan to outsource the technical call centers, the union is very upset with the potential loss of job and the recent surrender of employee benefits. Due to the closing of the domestic call centers, many layoffs will occur however, there are options for employees who are willing to take a cut in pay, residentially relocate or professionally relocate.

Global Communications has a good reputation in regard to treating their employees fairly however, the plan for outsourcing the technical call centers goes against the very premise that helped make Global Communications successful thus far. The outsourcing of jobs will decrease the employee morale therefore, making it difficult for Global Communication to keep the employees who may survive the layoffs. Along with the employee retention issue is the damaged relationship between Global Communications and the Technologies