Gap Analysis: Global Communications

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

University of Phoenix

Gap Analysis: Global Communications

Global Communications is having a hard time achieving its goal for globalization. During the formation of this goal they developed a two pronged strategy to implement it. First they want to outsource the technical call centers to India and Ireland and restructure the Global Communication workforce. Both of these actions will result in employee layoffs and has upset the Union. After talking to the Union, the board failed to get the Unions’ endorsement of the plan and caused them to seek action from the government and other available resources. (University of Phoenix, 2008, Scenario: Global Communications) This situation gives Global Communications many challenges and opportunities to change and improve as it moves towards its goal of globalization.

Situation Analysis

Issue and Opportunity Identification

Global Communications now has many issues and opportunities as it attempts to implement its new strategy in order to accomplish its goal of globalization. What it wants to do is outsource the technical call centers to India and Ireland. This should improve its technical capabilities and customer service with a reduction in cost of approximately 40%. In order to do this a large scale restructuring of Global Communications workforce is necessary. There will need to be a great number of layoffs and salary cuts up to 10% for others.

Global Communications had developed this strategy behind closed doors with no input from either the Union or its employees. This resulted in upsetting the Union and caused them to reject the globalization goal of the company. The last email from the Unions’ management stated that they were going to seek government recourse and other available resources. (University of Phoenix, 2008, Scenario: Global Communications)

The first issue is that by coming up with the globalization strategy without the Union, the board didn’t include the Unions goals in these new plans. The board took a distributive negotiations approach which subsequently created a win-lose situation causing conflict instead of a integrative negotiations approach which would have created a win-win situation. (Kreitner & Kinicki, 2004) This would have been the better choice.

Second, employees were not included in the process where the company chose this new direction. Due to the huge impact on them from the layoffs and salary cuts, the employee acceptance of the strategy is low. “The aspect of decision making that is based on people’s feelings; decision acceptance happens when people who are affected by a decision like it.” (Gomez, Mejia, & Balkan, 2002). Global Communications has a philosophy of “Our Edge Is People”. (University of Phoenix, 2008, Scenario: Global Communications) By working with the employees the company has maintained loyalty and can do it again with a high level of acceptance to this new strategy. Global Communications is on the verge of becoming a truly global company.

The next issue is to improve workplace communications which will in turn reduce uncertainty by the employees and increase decision making quality. McShane and Von Glinow (2005) pointed out, “a company’s market value increases…when it improves its вЂ?communications integrity.вЂ™Ð²Ð‚Ñœ They also commented “workplace communication has a significant effect on organizational performance.” (McShane & Von Glinow, 2005).

Lastly, Global Communications and the Union are experiencing coalition model decision making. This is over its people as a resource and how to use them. This situation offers the opportunity for both sides to come together and come up with common goals and make the process collaborative. When they work together both the Union and Global Communications can create a joint globalization strategy that fulfills both their needs. (Bateman & Snell, 2004)

Stakeholder Perspectives/Ethical Dilemmas

Global Communications is having a hard time juggling the interest, rights and values of its major stakeholders: the company, the shareholders, the customers, the employees and the unions during the execution of its globalization plan. The differing goals and rights of these stakeholders would make for certain conflict. Kreitner and Kinicki, (2004) said conflict is where “one party perceives its interest are being opposed by or set back by another party.” The largest conflict is with the Union.

Global Communications wants to make itself a truly global company through its globalization strategy. This strategy relies on outsourcing personnel and pay cuts. These objectives are in direct conflict with the Unions objectives of preserving membership and protecting members’ benefits. This is the largest conflict that Global Communications faces in the immediate future.

The secondary conflict is with stockholders and employees. Stockholders have the right to a fair return on their investment. This is why they buy stock and invest in the company. Employees have the right to a fair wage for their job and performance of that job. The problem is that stocks have fallen the last 3 years more than 50%. (University of Phoenix, 2008, Scenario: Global Communications) Employees, who are part of the Union, have given up some benefits in an attempt to compensate but the company continues to lose money in its current state. Profits are low and costs are rising making it impossible for both shareholder and employee to have their goals met. The globalization strategy makes the company face the ethical dilemma of upholding their philosophy of “Our Edge Is People” or restructuring to go global.

End-State Vision

Global Communications will become a global business leader in the communications industry through its globalization strategy. It is a well thought out plan and just needs to be refined to include the input of all the stakeholders involved. They will need to work with the Union closest of all to achieve this goal as it is the Union