Problem Solution Global Communication

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

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University of Phoenix

Problem Solution: Global Communications

The Global Communications (GC) faced with tough competition and losing market share, depreciated stock value to 50%. To increase profitability, the board has approved outsourcing some of the technical call centers to India and Ireland and layoff current call center employees.

This paper will identify issues and opportunities, stakeholders’ perspectives, analyze alternative solutions, assess risks and mitigation techniques, implementation plan, and evaluate results to recommend the best solution.

Situation Analysis

Issue and Opportunity Identification

Competition has been taking over the telecommunications market and the stock price dropped from $28 per share to $11 in last three years. The cable company’s affordable solution of linking computers, televisions and telephone services together were causing GC to lower prices to stay competitive. To combat the competitors, GC made decision to outsource the technical call centers to India and Ireland thereby lay off most of US based call center employees. GC expects union outrage because of the exclusion in the decision making process and layoff union members to be replaced by foreign workers. GC management should have come forwarded to union representatives on market competitiveness and seek solution together who would have to cooperate. Letting go of large number of employees who have been loyal to GC for many years will decrease morale because GC made decision without support from the union and employees.

According to the textbook (McShane & Glinow, 2005, p. 22), “increasing employee satisfaction and loyalty results in higher customer perceptions of value, which improves the company’s profitability.” Management needs to address the issues to all employees on the changed vision and goals to share the same sense of understanding. GC must survive in order to exist and employees will understand when the management addresses truth and changes in competitiveness of the market.

Management neglected the union by not including them in the decision making process. In the event that the union calls for strike, GC will lose productivity, good public image, and lose customer loyalty as well.

Stakeholder Perspectives/Ethical Dilemmas

The shareholders not receiving the expected rate of return on their investment are disappointed because profit sharing is the most important for the shareholders. However, the board of directors should balance between realizing profit and return to society in order to be socially responsible. In recent years, many large companies become socially responsible to increase credibility and to maintain good reputation with consumers. Ford researches focus heavily on building environmentally friendly hybrid cars to be socially responsible while undergoing tremendous cost cutting supply chain management to stay competitive (Stundza, 2006). Nike focuses regaining its reputation by inviting students to monitor many of its partner factories and allowing them to publish findings on website (Bandtad, team paper).

Having a job is the most important for employee perspective and contributes to the success of an organization. Employees are the basis of the success of an organization with each interaction with customer to meet their needs in a daily routine business. A study shows (Shockly, 2002), satisfied employees are more productive.

Even though the grapevine communication channel is a effective informal network of information flow that employees feel comfortable using it, the successful leaders need to communicate effectively the goals, vision, intent, issues, and challenges to all members of the organization using different methods and channels. In the challenging times such as an organization about to downsize or outsourcing, the management needs to address to all employees the issues, challenges, and goals (Shockley-Zalabak, 2002).

When all stakeholders share the same goal or vision, they can unite to achieve the goal and the management is the glue that holds them all in place. Through the emotional intelligence relationship, management needs to focus on building teamwork, collaboration, bonding, conflict management and be an inspirational management (McShane & Glinow, 2005, p. 16). The management should not prolong informing the employees on upcoming downsizing and outsourcing before rumor distorts the facts and builds negative effect (McShane & Glinow, 2005, p. 345-346). Therefore, the management needs to balance the benefits between the shareholders and employees and make a win-win situation for all

Union protects its members’ benefits according to the contract from their employer. The larger the union, the more powerful it becomes because union members may organize a strike against a company and disrupts production. On the other hand union needs to keep good working relationship with the management because union itself cannot exist without the company, thus, it needs to find the workable solution when negotiating with the company.

Problem Statement

GC will enhance the company’s market share by providing the best value service to customers worldwide through building strong team of one.

End-State Vision

GC strives to be the leader in the communications industry by providing the best communication value to worldwide customers through professional relationship.

Alternative Solutions

The alternative solutions at GC are to move the call centers to India and Ireland to reduce costs, stay as is and not outsource, and to move a small portion of the call centers to test the market to reduce risks of not meeting the customer satisfaction.

AT&T (Bandtad, team assignment), had similar situation as GC that outsourced the technical cell centers in India to reduce cost by cutting 5,000 jobs. Just as GC did, AT&T management made the decision without involving employees in the process. However, Bandtad’s article states that AT&T, 3 years later, due to customer demand, repatriated 2,000 jobs back to US to provide quality customer service and eliminated foreign call centers. GC must consider thoroughly the risks and mitigation