Situation Analysis
Issue and Opportunity Identification
Global Communication stock value has decreased of over 50% in the last 3 years. Consumer speculation over the Communication Industry’s ability to recover from such a decrease has forced the industry to become creative in order to survive. The greatest contributing factor to this decrease is competition. Not only are communication companies’ competing locally, nationally, but globally, for customer business; the Cable Industry has entered the market offering complete solutions.

Stakeholder Perspectives/Ethical Dilemmas
Within Global Communications there are multiple conflicts present. Beginning with the Shareholders who have a vested interest in seeing Global Communication profitable and regain lost market share have created conflicts with the employees and the Union. The Shareholders have a right to do whatever they choose (agree to outsource) but cannot violate the rights of the employees in the process. The Shareholders agreed to outsource the technical call centers to Ireland and India which impacts the employees’ job security. Organizational commitment is in jeopardy with this move because “layoff threats are one of the greatest blows to employee loyalty, even among those whose jobs are not immediately at risk.” (McShane, S. L. (2005). Organizational behavior (3rd ed.). New York: McGraw-Hill. p128) Share holders then approved the immediate hiring of 1,000 highly qualified sales personnel, which not only confirms the unwritten suspicion among the employees that layoffs are looming but this gets the Unions attention. After taking a 20% decrease in Educational and Health Benefits, the Union feels Global Communication is manipulating the contract. This is further confirmed with the Call Center move as employees abroad will not be Union members. Furthermore the Union was not consulted on these decisions to facilitate a win-win opportunity. As mentioned in Kinicki & Kreitner. (2003). Organizational behavior (6th ed.). New York: McGraw-Hill. p 487, “win-win beats win-lose in both conflict management and negotiation.”
The employees have a desire to maintain their employment and be treated fairly. The actions of Global Communications has caused strife to both points as well as compromised the fidelity of the employer/employee relationship. The Employee’s personal moral integrity will dictate the customer’s loyalty. Granted there is some degree of functional conflict occurring within the walls of Global Communication as the company would like to improve performance and enhance what they can offer the consumer. The handling of this is quite dysfunctional.
Protecting the employees is the primary function for the Union. This group would also like to see the employees be treated fairly and be given opportunities to advance with Global Communications. “Negotiation is a give-and-take decision-making process involving interdependent parties with different preferences.” (Kinicki & Kreitner. (2003). Organizational behavior (6th ed.). New York: McGraw-Hill. p 503.) Global Communications’ failure to disclose their plan to regain market-share let to a lack of negotiation on what role the Union would have in this strategy. This action has also resulted in the Union to consideration of legal action based on the lack of full disclosure.
Finally there are the Customers who want quality service from a company they can trust. In Global Communications desire to expand what they can bring to market, they failed to consider the impact these changes would have on their clients. The looming lay-offs will customers to have new representatives who don’t know the customer’s needs. Lay-offs also impact the US economy and will in some way impact the consumer which paints Global Communications in a negative light. As a consumer watching Global Communications form the new partnerships with Satellite and wireless providers, as well as the legal action taken by the union, the question becomes is this the communications provider I want to align my business with?

End-State Vision
Global Communications is committed to seeking growth in the global marketplace by meeting the needs and expectations of our customers with continuous improvements in our product/service offerings and customer satisfaction. We plan to develop quality relationships with the Union, our employees and partners to set new standards of excellence.