Mba/500/Gap Analysis: Global Communications

Gap Analysis: Global Communications

The Global Communications scenario outlines a communications company in financial trouble. It has lost market share and half of its stock value in the last three years. The company must make severe cost-cutting adjustments to survive. Its employees are represented by the Technologies Workers Union. The company is bound by the clauses in the contract with the Union. Recently, company management decided to outsource the employee jobs at its small business call centers to India and Ireland. They did this without consulting the Union, as was required to do beforehand pursuant to the contract. The Union, as well as the employees, feels like the company is not acting in good faith and may be using this action as a ploy to circumnavigate around the controlling clauses of the contract. These facts set the stage then for the following analysis.

Situation Analysis

Issue and Opportunity Identification

The most pressing issue is senior managements' failure to treat the Union as a partner in any major decision that will have a large impact on employees. Management has failed to recognize and respect the Union as a business partner. There is an opportunity presented for the company management to turn this status around by following the 10-step plan outlined in the subsequent section. It is imperative for the company to win the Union and employee's agreement to the cost-cutting plan in order for it to proceed quickly, as time is of the essence in this situation.

The second pressing issue is how to introduce new services to the companies' customer base to win back customers. The company's leadership has devised a two-pronged aggressive approach as the solution for this problem (Company Overview, 2004).

They propose to introduce new services via a satellite provider to offer video services; and in partnership with a wireless company, to provide small business owners anytime access to the Internet via PC cards or wireless phone. Following that, they plan to engage cost-cutting programs designed to increase the profit line (Company overview, 2004).

Stakeholder Perspectives/Ethical Dilemmas

The company management and the Board of Directors want what is best for the company, as well as for themselves as well. The growth of the company, job longevity, their benefits and salaries, and making their company more profitable are foremost in their minds. The shareholders have similar concerns. According to the scenario, Global staff presents that they may have engaged in unfair labor practices by failing to abide by section (d) ". . .of the mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment . . .or any question arising thereunder . . ."; and failed to give the sixty day written notice to the Union of its intended outsourcing change, as mandated by section (d)(1) of the National Labor Relations Act (NLRA). In addition, section (d)(3) states "notifies the Federal Mediation and Conciliation Service of a dispute in the works", as also required by the NLRA, all of which Global Communications appears to be in violation of. Wherefore, the facts support the assumption that the Union is about to file a complaint with the NLRA which has some legal authority to prevent Global from instituting the outsourcing change for many months, while the issue is being mediated. This could stop Global's Ð''turn around plan' in its tracks, which is a major ethical and factual dilemma for all stakeholders and shareholders of the company. The facts look to be in the Union's favor. Even if the Union loses at the NLRA, they can still take the issue to federal court and it can be tied up for half a year or longer. It clearly would be a large benefit to Global to sit down and negotiate an equitable solution for all parties involved to avoid that loss of time for the Ð''turn around plan' to be working.

End-State Vision

To Remain Dedicated To Providing [Inventing] The Best Products And Services Worldwide That Deliver Extraordinary Customer Experience.

Gap Analysis

The current status of Global Communications reveals that it is in dire straits. Cable companies have stolen customers by offering more bundled service options for a lower price, and competition from within it's own industry has taken some of its market share (Company Overview, 2004). Recently, the company's Board of Directors approved a major move to outsource it's small business call centers to India and Ireland, as a cost-cutting move. They did this without consulting with the employee's Union. Clauses in the Union contract stipulate advance notice (60 days) of any "modifications" to employment conditions, as well as another clause mandating that the parties to the contract meet and confer on major issues (NLRA Act, 1935, sec. (d)(1)(2)(3)(4)). The Union is Ð''up in arms' about this potential loss of jobs for its members, the apparent bad faith of the company to not include the Union into its deliberations, the failure of timely communication with the Union, and the Ð''precedent effect' it may show to the rest of the communications industry across the nation. The Union President, Andre Mustov, has served notice on the company that he intends to take action and seek relief from all available sources (Company Overview, 2004). The stage is set for a protracted legal battle between the two parties, which could prevent the initiation of the moving of the call centers for six months to a year. Additionally, the company will now be forced to divert valuable staff time and thousands of dollars for legal battles to deal with this issue for months, perhaps a year. Further, the morale of company staff may erode over time as well from the constant bickering of the parties.

The challenge presented is substantial. The primary question is: How can Global management convince the Union that outsourcing the call center functions is undeniably necessary for the survival of the company? A secondary question is, what argument can the company use to convince the Union to acquiesce in this major change that will layoff Union members and affect the overall morale of the group as well as the morale of some company staff?