In depth research was done to determine how Global could achieve their end-state vision, by exploring the issues and opportunities, the risks assessment, the implementing of effective solutions, and the experience of strategic alliance. It also demonstrates how successful managers must function in a competitive world.
The writer hopes that the views discussed will be helpful to individuals and companies who are faced with similar situations.
Issue and Opportunity Identification
The effects of economic pressures have played a critical role in the instability of Global Communications, which put the company in a position to find strategies to provide growth in order to increase profitability. Global could not predict any fall outs or setbacks that faced the company. Lack of communication and layoffs in Global was unforeseen as the company should have proper communication channels and forums in place to disseminate information on a critical issue as layoffs, which can create upheavals in the organization. With the high level of competition in the industry, Global Communications was not prepared and did not have any alternative solutions to deal with the various issues/problems on hand.
Global Communication should consider resolving all issues and making the best decisions. “By improving decision making, knowledge management, employee needs and coordination; company can progress and retain the name in the communication industry. Workplace communication has a significant effect on organizational performance (Mcshane & Glinow, 2005). “First organizations depend on the ability of people to coordinate their individual work effort toward a common goal.” (Mcshane & Glinow, 2005).
Stakeholder Perspectives/Ethical Dilemmas
The fact that Global has the right to cut costs and to expand operations in order to stay viable, it brings to the table a conflict towards the welfare of the employees. The situation is clear that Global does not take the welfare of their employees as priority as they are planning to lay-off staff, and for those who will be relocated, their salary will be cut and is not willing to retain their valued employees. Global is interested in saving their company’s name from a negative public image and the employees who are building the company are paid minimal attention.
The right of the union to negotiate effectively to establish a win-win situation is being compromised by Global disregarding prior decisions made by the union to give up benefits in order to assist Global to achieve its long-term growth. However, Global will be cutting jobs and to outsource to Ireland and India, which is clearly an unethical move and as a result there will be no trust in the company, and the integrity of the company will be lost to the employees, as there exist no display of fairness in their plan. “Business ethics has to do with the authenticity and integrity of the enterprise. To be ethical is to follow the business as well as the cultural goals of the corporation, its owners, its employees, and its customers.” The challenge of management is to be cognizant to the individual needs, to shape them and to focus and direct them so that they can be beneficial to the group as a whole.
In addition, the conflicting values of Global and the union with regard to the integrity and fairness of both stakeholders is a critical point whereby, Global wants to uphold their integrity, but their lack of communication with the union, and employees, their integrity is difficult to maintain. A lack of communication can take a well laid out plan and totally eliminate its purpose. “As Bob Walder said, “Communication is not important, it is critical,” and as such can make or break a company. Where too little or too much communication takes place, the potential for conflicts increase. In addition, too much or too little information can lay the foundation for conflict. With Global, the communication process has broken down and information is leaked through the grapevine, which is not a good sign and this can eventually create other complications in future negotiations with the company.
Communication has significant effect on organizational performance- Recent report estimated that a company’s market share value decrease by over 7%, when it improves its communications integrity.
Global communication seeks to attain its goal to increase the company’s market share by implementing various strategies in order to alleviate critical issues affecting the company and the stakeholders.
Global Communications aims to be the Communications Company of choice, working successfully in partnership with its stakeholders, to provide a comprehensive range of products and services at a competitive rate, in an efficient environment, to increase productivity to be the number one Global Corporation.
Global Communication needs to keep as much of the jobs in the company as possible and minimize the number that the company outsource to India and Ireland while using better communication skills.
Alternative # 1. Communication and Development of Employees
The importance of communication and development is critical in an organization. Global
should establish a line of open communication in the organization and with the union. With this implementation, internal issues could be resolved and organizational commitment would be sustained. “When employees feel that their psychological contract has been breached, especially involving pay, communication and development, a lower-level of job satisfaction and organizational commitment has been indicated.” (Pate, 2000)
Alternative #2. Trust of Employee and Employer
The decision to reduce cost by downsizing call centers, layoffs, outsourcing and pay cuts was poorly communicated by Global, and this has caused the employees not to trust the company. “Management needs to enhance the integrity and competence in trust level with employees and all stakeholders.” Studies have indicated that even though employees understand that managers believe that their relationship with them are positive, managers hardly understand that employees feel negative about their relationship with managers (Kim, 2003).
Alternative #3 Security and Satisfaction of Employee
“Employees should be able to trust their employers to protect their rights and needs.” (Boeree 2006). Employees need to be ensured of the security of their job and are entitled to benefits and salaries.
Alternative # 4 Employees with high performance
In order to ensure that employees perform at high standard, the organization should create an environment of flexibility, adaptability and involvement of employees, where individuals make their contribution. A positive work environment is critical, in keeping high performance employees. The organization culture and high pay with benefits attract and keep high performance employees. Global needs to implement programs to assist employees in becoming successful, and they will feel more committed to the company.
Analysis of Alternative Solutions
The rate of five (high) was used to rate goal 1(realize a profit margin of 30% within the next 18 months), as in order for Global to meet any of the other goals it needs to start making a profit to stay a viable company. The rate of four was used to rate goal 2 (maintaining valuable employees to improve productivity) which is critical for the growth of the organization. The creation on new products is essential, since the competition is high and without achieving this there can be no increase to the share price within the next fiscal year.
The best alternative (communication and development of employees) was rated five (high) in relation to the goal in having a strategic plan to retain valuable employees as Global would not be able to satisfy the organizational goals unless there exists committed employees to perform the tasks. The alternative was rated four in relation to creating new features, products and services as the introduction of new products would give Global the competitive edge. The best alternative was rated three in relation to increasing productivity due mainly to the fact that, if employees are committed productivity will definitely increase. A rate of two was given to the solution in relation to the rise in profit margin, is critical to the viability of the company. A rate of one in relation to increase share price would mean that more individuals would want to buy into the company, which would make shareholders happy.
Risk Assessment and Mitigation Techniques
In creating a positive work environment, any risk is hardly involved. However, to have a positive work environment is not an easy task and could create conflict and valuable staff leaving the company to take better offer and to work in a more stable environment. Losing valuable employees to competitors, is one critical risk that a company would not want, as employees would have known the job, the culture and norms of the organization, and these employees would leave with important information that can be shared with competitors, which can create upheavals in the industry.
With regard to forming a strategic alliance, the risk is medium to low, but companies in the industry who are facing financial crisis, normally look at this option especially if the companies do not have the resources. Firms that have chosen this route, gain benefits from alliance which includes:
1. Sharing of risks
2. Sharing of knowledge and expertise
3. Competitive advantage and synergy
4. Ease of market entry.
Companies entering new markets may find obstacles and the firm will achieve the benefits of rapid entry while costs are kept at a minimal.
In narrowing the list of alternatives, Global Communications best solution to consider is merge with an existing local cable company, as this move would enable them to retain their current customers and at the same time getting additional customers from the competing company which will lead to the acquiring of an expanding customer base. In achieving this goal, Global would increase competitiveness and this would increase profit and market share.
Global Communication could consider retraining majority of the employees instead of outsourcing, since these employees would have knowledge of the company, which is an asset and would alleviate cutting of staff as hiring new employees would be costly to train them.
Global Communication could apply various solutions to remedy the issues that plagued the company, however, the optimal solution for Global would be to establish an alliance/joint venture with a local cable company operator and this will help Global to retain their employees and existing customers as well as increase their profit and market share, which will eventually increase Global’s competitiveness.
A successful partnership with a cable company would be an important move by Global, as cable operators are establishing “themselves as legitimate competitors for local customers, as they roll out voice services over their network.” The existence of major players involved in the cable-based phone services and companies are making use of these opportunities to enrich their organization and ensuring that the company is on edge with the latest forms of technology.
“This type of service cross-over is making the major telecommunications carriers and the cable companies as the top players in the market. Global would benefit extensively as cable operators and local service providers would be regional providers, and the extent of competition would not be great as among businesses in the same category. Companies in this industry are marketing various services including long and local distance calling, broadband internet access, television services and wireless services to make it a one stop provider for all communication services. “Comcast, Time Warner and other cable companies now have a partnership with Sprint-Nextel by which they can resell co-branded wireless services.”
Global communication would be viable as “cable has become an accepted means of TV delivery, and the costs are rising due to lack of competition in the cable market.” Therefore, Global could see a little less competition considering that competition in the industry was one of the main factors affecting its viability. “Cable companies are aggressively marketing themselves into the voice services and signing up wireless and voice over IP customers, as new technology emerges.” With this activity it can be expected that leaders in the industry will buy out smaller organizations to enhance the services that already exists and to add new products and services to maintain their customers and improve their revenue.
Global Communications should try to keep as much of their valuable employees in the system, after the joint venture as this will assist in alleviating the costs to train new employees. Global could consider implementing the “idea system” that Toyota used to get feedback from their staff. where employees would give ideas which could contribute to the growth of the organization. The input of employees is critical in any organization as there would be better job performance and satisfaction, which will boost efficiency and productivity. This strategy enriches organizational commitment, which is critical to the organization as it “improves customer satisfaction because long-tenure employees have better knowledge of work practices, and clients like to do business with the same employees.” Employees could be asked to complete an opinion survey to assist in the understanding of employee feeling and opinion in certain critical areas as it relates to teamwork, job security, benefits, environmental performance, communication, development and fair treatment.
With the advance in technology, and the need to keep valuable employees in order to have lower labor costs, telecommuting programs could be implemented to allow sales staff, field agents, service representatives or any other position to work from home. Telecommuting will benefit the employer as a potential cost saving strategy, also overhead expenses and recruitment costs. Skills retention, flexible staffing, increased productivity would also be beneficial to the employer.
The employee would benefit as it will reduce travel cost and time, flexible working hours and work opportunities. Employees would have the option of obtaining other jobs that are miles away and they do not have to travel to work, and the opportunity to spend time with their families.
The solution to assist Global from their dilemma is to pursue marketing alliance whereby Global would be able to share marketing services and expertise. Global could introduce the products and services into the market where the local cable operator (or whichever is more established) assist with the promotion of new products and services, advertising and distribution. A comprehensive alliance could be established where both firms agree to perform multiple tasks to ensure that the goods and services are properly designed, marketed, researched and distributed. The companies must establish procedures for merging such functions as finance and marketing so that the alliance can succeed. By integrating efforts “participating firms in a comprehensive alliance are able to achieve greater synergy through sheer size and total resources.”
Global will definitely have to establish an open communication process when dealing with their partner as this is critical. A lack of communication can take a well laid out plan and totally eliminate its purpose. “As Bob Walder said, “Communication is not important, it is critical,” and as such can make or break a company. When too little or too much communication takes place, the potential for conflicts increase. In addition, too much or too little information can lay the foundation for conflict. One of the risks is to keep information from the other party and this could be costly. Concealing information can be considered unethical as many important decisions that could be made for the improvement of the companies can be diminished. Building of trust is critical as alliance in ensuring that whatever process is taking place it can be shown that it would be a positive contribution to the benefit of the organization.
Global Communications will create and update their company policies to reflect ethics and commitment to their valuable employees and dedicated customers and to an extent their stakeholders. Global will implement training programs for their employees, in which the team will create a time limit fort the training, and the type of training the employees would need. Global will create a team to research the industry and the cable companies to see which is more compatible and approachable with the merge. This team will gather all the information that is necessary for a successful merger so that the process can begin at the earliest possible time. This team will also meet on a weekly basis with top management to give progress reports. Global will implement an effective medium of communication, with the proper chain of command. Global will implement a satisfactory reward system to compensate employees who show excellence in carrying out their tasks.
Evaluation of Results
In dealing with the Research aspect of the business, costs will be directly involved, especially with the training of employees at the work shops. Global should offer some moral obligations to help the workers are laid off in obtaining jobs, with the merging of the company. If the implementation is successful, there would be an increase in profit, and bonus can paid out.
Global Communication should look deeply at its code of ethics, and to take seriously into consideration the welfare of its employees.
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