Global Communications

Problem Solution: Global Communications

Global Communications, a telecommunication company, is experiencing economic problems with its stocks and industry competitors. In an effort to sort out these issues and increase profits, the leadership team would like to outsource its call centers to India. However, this move might not be the best alternative in increasing profits. Instead, creating a motivational workforce through a variety of communication with the company employees will increase productivity which intern increase profits.

Situation Analysis

Issue and Opportunity Identification

Global Communication, a telecommunications company on Wall Street, is suffering as a result of the plethora of competitors in the business. Currently, the stock has depreciated more than 50 percent and the leadership team needs to increase profits. Katrina Heinz, Global Communication Chief Executive Officer, submitted a proposal to the Technologies Workers Union Board that would improve revenues and profits based on global expansion. Unfortunately, Ms. Heinz failed to inform the board that this expansion and profit increase meant terminating local employees and outsourcing its' call centers to another country. The board approved the proposal unknowingly.

The employees of Global Communications were unaware the major global expansion would eliminate a number of jobs in the United States. Furthermore, in an effort to inform the public and its employees, Ms. Heinz instructed Mr. Sy Rodriguez, Executive Vice President of Consumer Marketing and Sales, to draft a press release that would emphasize domestic employee opportunities in relocating to other positions. She also instructed him to incorporate the motto, "Our Edge Is People." The loyal employees of the company were informed through the press release of the upcoming strategic company changes and not by management.

Technologies Workers Union, union representatives for Global Communications employees, signed the agreement with Global Communication in support of expanding its' operation for profitability purposes. However, the union signed the contract under false pretenses Ð'- not knowing that the agreement would eliminate jobs for who they represent. In fact, during the last ratification, the union expressed its' interest in gaining more memberships. The union heard about the termination of the employees and the call centers relocation to India and Ireland through third party communication - the grapevine. Therefore, Ms. Maria Antez, Vice president in the Technologies Workers Union, was summons to meet with Global Communications leadership team to further discuss the global expansion strategy that had been approved. As a result of Ms. Antez instrumental benefits negotiations during the last bargaining, the union assumed she was aware of the plans to terminate local employees and outsource the call centers. Unfortunately, like the employees and the union, Maria was unaware of the move also. In as much, Ms. Antez attempted to readdress the union's concerns of maintaining local jobs while increasing union memberships. Yet, the Global Communication leadership team was more interested in effectively communicating their strategy in the media to address both the employees and union's concerns in a positive manner rather than sparing jobs.

To combat the negative feedback from both the union and its members, employees of Global Communication leadership team have several opportunities in addressing these issues at hand, (1) to open the lines of communication with the union and employees, (2) ensure that communication is clear and concise from management to employees and the union (Slentz, p. 4) and (3) research companies that have set benchmarks for outsourcing departments to increase revenues (Bateman & Snell, 2004, p.10).

Stakeholder Perspectives/Ethical Dilemmas

The stakeholders are the stockholders, Global Communication leadership team and the Technologies Workers Union who represent the employees of Global Communications. Although each stakeholder represents opposing sides, both have a pivotal vested interest concerning the growth of the company.

The stockholders of Global Communication have invested monies hoping to make a return on the profits. Unfortunately, Global Communications stock has decreased due to the increased competition, the overhead cost of employment, and the demand for alternative services from customers. The stockholders would like to experience a return on their investments before the stock plummets.

The leadership team of Global Communication would like to see the profits and revenues increase even at the cost of loosing many loyal employees. Moving call centers to India and Ireland would be fruitful in terms of the labor cost. In addition, the company's stock has decreased and the image of the company is diminishing. Therefore, the leadership team created and began implementing a plan to increase profits. This plan had been approved by the board but it had not been researched nor organized logistically. Furthermore, Global Communications leadership team failed to inform the union and its employees of the massive layoffs. Instead, the leadership team decided to draft a press release informing the public and employees.

The Technologies Workers Union, represent and negotiate on behalf of the employees of Global Telecommunication. Recent bargaining was not favorable for the union and its employees. In fact, the union arbitrated to lower major benefits based on Global Communications proposal to increase profits by competing in local markets not by moving call centers to India and Ireland. The union thought that lowering major benefits by 20 percent would help the leadership team resolve the issue of cutting expenses. Technologies Workers Union was unaware that the employee layoffs were encompassed in the strategic globalization plan. The union also believed they had a right to be informed of this major decision since they represent the employees of Global Communication (Slentz, p. 4).

Problem Statement

Global Communications will enhance the company's market value by developing the tools needed to effectively communicate plans and to successfully increase profits and revenues. The stock is suffering and the competition has increased. The leadership must implement a plan that will increase profits as well as settle the disputes between union and the company. The company is having difficulty in communication the ideas and plans for the strategic global expansion. The ambiguity in their communication has created a great disdain for the company. The