Gap Analysis: Global Communications
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Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS
Gap Analysis: Global Communications
University of Phoenix
Gap Analysis: Global Communications
Global Communications is facing many problems. Due to high competition in the telecommunications sector, Global Communications stock prices have fallen drastically. Many of its competitors, mainly the cable companies, are offering complete solution packages. Global Communications decided to create a strategic plan to cut costs by outsourcing. This strategic plan has caused issues between Global Communications and the Technologies Workers Union. The main issues are the lack of communication and the distributive negotiations method.
Situation Analysis
Issue and Opportunity Identification
An unpleasant relationship currently exists between Global Communications and Technologies Workers (Union) because of the last negotiations between the two parties. The result of the last negotiation was that the Union gave up over 20% of their education and health benefits due to Global Communications financial problems. Global Communications created a strategic plan to outsource and downsize its technical call centers. However, Global Communications did not communicate this plan to the Union. As a result of this plan, some employees will be relocated to expanding call centers and will be expected to take, on average, a 10% pay cut while many others will lose their jobs. Global Communications failure to communicate to the Union that this plan was necessary in order for the business to become profitable and competitive, led to further destruction of the already fragile relationship. “Effective communication is vital to all organizations because it coordinates employees, fulfills employee needs, supports knowledge management, and improves decision making” (McShane & Von Glinow, 2005, 324). Because the decision has already been made to outsource, Global Communications can take this opportunity to begin working on a plan with the Union that will create and keep as many jobs while reducing costs and maintaining profitability once the company has become competitive and profitable again.
Global Communications is facing increasing competition from local, long-distance, and international markets. The majority of the competition comes from cable companies, who provide complete solution suites including computer, television and telephone services. This caused Global Communications to create a strategic plan to outsource its technical call center to India and Ireland. Outsourcing will provide an opportunity for Global Communications to reduce costs and improve profitability. Outsourcing to other countries, even though it improves a companys profitability, also creates unemployment at the home country (De Kluyer & Pearce, 2006, 32). This plan also creates an opportunity for Global Communications to become a global resource. With the reduction of cost, Global Communications can introduce new services to their consumers so that they can become competitive again. However, these actions created a Win-Lose conflict between company, the union, and employees and possibly future conflicts will arise over the same issues (Schermerhorn, Hunt, & Osborn, 2005, 347).
Stakeholder Perspectives/Ethical Dilemmas
Contrary to popular belief, employees are the most important stakeholders in any business. The employees are depending on Global Communications for job security, benefits, competitive pay and good working conditions. Global Communications is depending on the employees to be productive and understanding in the need for the company to become profitable. While the employees main focus is job security, Global Communications main focus is ultimately its profitability. However, without the employees, Global Communications cannot be successful. This conflict can lead the employees to believe that they are not an important asset to the company. Consumers are also important stakeholders for this company. The consumers are depending on Global Communications to provide most importantly a variety of services at a reasonable price. The stockholders are also a stakeholder. They are depending on Global Communications to have high profits and a good image so that they can benefit from the dividends. Like the stockholders, Global Communications is concerned about the profitability; therefore, there is no conflict between the company and the stockholders.
End-State Vision
Global Communications will improve its communication skills within the organization and with the Technology Workers Union. Global communications, through outsourcing, will improve profits and increase, growth which will allow them to create jobs locally for employees.
Gap Analysis
In order to achieve the desired end-state vision, Global Communications must first learn to communicate with all parties involved in the situation at hand. Communication is the key component in employee satisfaction and loyalty (McShane & Von Glinow, 2005, 324). Global Communications and the Union must be committed to adhering to all negotiated terms of any contract. Both parties will have to set aside their differences and work toward a common goal.
Conclusion
Global Communications is facing many issues, mainly decreased profitability. Global Communications has a gap between where they are and where they want to be. If Global Communications can implement some crucial changes, such as better communication and integrative negotiation, they may stand a chance at becoming a leader in the telecommunications sector and close the gap.
References
De Kluyer, C. A., & Pearce, J. A. (2006). Strategy: A view from the Top (An Executive Perspective) (2nd ed.). : Prentice Hall.
Kinicki, A., & Kreitner, R. (2004). Organizational behavior: