Uop Mba 500 Global Communications

Problem Solution: Global Communications

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University of Phoenix

Situation Analysis and Problem Statement: Global Communications

Global Communications (GC), due to intense competition, finds itself with lower revenues and lower profits than expected and as a result with an unacceptable cost basis to work with. This has driven the management group to want to cut costs by outsourcing jobs in the hopes of lowering costs as well as a new Globalization initiative to attempt to increase sales. However, due to a lack of communication amongst all the stakeholders the internal hostilities have boiled over into a Labor union dispute which may include Government involvement. With the impending layoffs morale is a low point and measures need to be taken to not only prevent a mass exodus of employees but to re-energize and reaffirm GC commitment to the employee.

Describe the Situation

Issue and Opportunity Identification

Wall Street has low confidence in the telecommunications industry and GC share price is at a three year low of $11 (from $28). Profits are running low due to increased competition from local telephone companies going national as well as cable companies entering the telecommunication playing field and offering a much wider array of services. This cable company offering in particular is causing a number of GC customers to move away from GC.

The management group created a plan to cut jobs and to outsource the work to India and Ireland without including the Labor Union in any of the process. The Labor Union relationship was already strained due to the Labor Union giving up over 20% of their education and health benefits and the Labor Union President feeling this was already too much to give up. The Labor Union liaison for GC was in disfavor prior to the unveiling of the job cuts and outsourcing. When the Labor Union Board found out the primary Labor Union liaison had no knowledge of the planned layoff and outsourcing the Labor Union Board became even more hostile and hardened in their attitudes.

The CEO did not try to be inclusive of the Labor Union in the process of decision-making for increasing profits and going global. All communications from the CEO to the labor Union were dictatorial in style. The CEO displayed no empathy for the Labor Union and was not open to listening.

The employees that are at GC at the small business call centers will either be terminated or be forced to take a 10% pay cut. Morale is likely to be at an all time low unless serious measures are taken to prevent this from happening.

Stakeholder Perspectives/Ethical Dilemmas

GC's key stakeholders are the labor union, the management, the shareholders, and the customers.

GC has some tough business decisions to make regarding the situation it now finds itself in. The cash crisis related to losing market share from tougher than expected competition and shareholder lack of confidence is forcing GC to cut operating expenses. This is a business requirement not an ethical dilemma.

The primary conflict is between the labor union and the management group. The labor union has an ethical dilemma in acknowledging that the costs of the labor used to produce the revenue at present are too high. On the other hand, the management team has an ethical dilemma to allow the Labor Union to participate in finding solutions to this opportunity and to be informed that something needs to change quickly. By having quarterly meetings to include everyone and by conducting employee training for emotional intelligence and technical call center skills this situation is likely to improve from the dire circumstances GC is now in.

Frame the "Right" Problem

GC can become a global communications leader by increasing job satisfaction, having total employee involvement and penetrating select international markets which will answer the identity crisis it now faces as a result of unexpected strong competition and a lack of cash from decreased revenues and lack of confidence of its shareholders.

Describe the "End-State" Vision

GC will be an extraordinary work environment so that employee engagement is the best in the communication industry. The work environment will be professional but fun. Since there is a correlation between job satisfaction, customer satisfaction and profits (McShane & Von Glinow, 2004) GC will enact several policies and programs to get job satisfaction/employee engagement at an all time high.

MEASUREMENT: Employee engagement surveys measured quarterly.

GC will significantly penetrate selected International markets to increase revenues. The outsourcing the call centers to India and Ireland will help with this effort as finding people who speak the correct market languages will be easier in countries other than the US where more people speak a variety of languages.

MEASUREMENT: Revenue, profit and market share from targeted international markets measured monthly.

GC will lead the communication industry in sales, profit, and profit per employee. The communication systems and employee involvement programs will energize the workforce so that profits will increase. The profit per employee measurement will allow all stakeholders to see the value of each business unit and the choices made in the business unit in relation to benefits, wages, and other costs. In particular, it will allow Management to possibly address the ethical dilemma of wanting to outsource labor without examining other, less invasive alternatives first. The labor Union will understand more of why a decision has to be made and/or what it has to do to keep the jobs here in the US instead of outsourcing. This profit per employee removes both managements' and the Labor Unions ethical dilemma and puts it in unemotional numerical terms.

MEASUREMENT: Sales, profit and profit per employee measured quarterly.

Identify the Alternatives and Benchmarking Validation

GC has a lack of employee engagement which will impede GC's ability to implement the outsourcing of the new call centers and penetrate new markets. Having employees with high-levels of employee engagement and/or job satisfaction is important for GC in order to increase customer satisfaction, productivity, and profits. High employee morale is associated with