Gap Analysis: Global Communications

Since the past century, many organizations are facing a phenomenon called globalization. The term globalization refers to the movement of people (labor) and knowledge (technology) across international borders. (International, http://www.imf.org/external/np/exr/ib/2000/041200.htm, p1). Global Communications is in the telecommunications industry, and as any organizations within this industry, it is facing too much competition. To address this issue, Global Communication is planning to introduce new services to its small business and to globalize. This business initiative was created by Global Communications senior leadership team and approved by the board. However, conflict exits between Global Communications and Technologies Workers Union following the release of this strategic plan to outsource part of the domestic call centers to India and Ireland. (University of Phoenix eResource, https://mycampus.phoenix.edu/secure/campus/tampamain/student/homepgage.asp, p1-3). In order to identify the gap analysis of this situation, a good understanding of the situation must be gained through the evaluation of issues, opportunities, stakeholder perspective and ethical dilemmas.

Issues and Opportunities Identification

The main issue that Global Communications faces is the increase competition through expansion of services throughout the telecommunications industry. More players have entered the market with broader services. What once was multiple markets because deregulations, has became a single market with multiple services. While it was almost impossible in the past for long distance carriers to be local distance carriers and vice versa, this is no longer the case in the current market. The same issue has created an enormous opportunity for Global Communications to reach business objectives by expanding into a global market.

Since competitive environments yield for price sensitivity, a decrease in productivity cannot be offset by an increase in price as this will leave the doors open to the competition. This dilemma calls for immediate action in order to remain in business. Outsourcing then becomes a splendid opportunity, but it also represents a great factor as decisions that resulted from trying to remain competitive can directly impact morale within the organization. The opportunity in this case is to meet business objectives while focusing in performance management. Many companies recognize the risks associated with not keeping up with industry changes. Companies can best respond to rapid industry changes by taking advantage of emerging opportunities.

Stakeholder Perspectives/Ethical Dilemmas

Technologies Workers Union seeks to maximize compensation and job stability for its workers by retaining domestic jobs, and Global Communications seeks to maximize shareholders value by outsourcing. This clearly shows how the interests of Technologies Workers Union and Global Communications are in direct conflict with each other. The ethical dilemma is whether or not to outsource (reduced jobs) in the name of profitability. The risk factor to consider is that although this business practice has been adopted by many organizations, it is a fairly new business practice in the telecommunications industry and could set a negative precedent in the relationship between employers and unions.

End-State Vision

Global Communications aims to become a truly global company by maximizing both shareholders and stakeholders value simultaneously.

Gap Analysis

It is obvious that a gap in communication exits between Global Communications and Technologies Workers Union at the leadership level. To understand this gap, let us first review the basics of communication. Communication refers to the process by which information is transmitted and understood between two or more people. Effective communication is vital to all organizations. (McShane, 2004, p1-5). Secondly, let us understand the business objectives of Global Communications. Global Communications wants to become a globalize organization and outsource to India and Ireland. This will position Global Communications parallel to leaders in the industry and will provide long-term incentives.

In the corporate world, there is rare representation of workers interests in strategic decision-making processes. Union leaders have a secondhand involvement in strategic decision-making within an organization limiting the union presentation to traditional collective bargaining. (Appelbaum, 2003, http://www.gurn.info/topic/corpgov/kdhunt03.pdf). Technologies Workers Union does not understand the tactical decision of how outsourcing jobs fits within the overall vision to globalize and increase shareholders and stakeholders value. In order to a win-win situation, Global Communications needs to be able to sell to Technologies Workers Union how outsourcing now will provide long-term benefits to the union while Technologies Workers Union needs to have an open-mind, get more involved in the decision-making process, and create a new precedent by realizing that their position relative to new business practices will need to change in order to stay in business from the union perspective.

Conclusion

There was no joint participation in the decision-making process. Both, Global Communications and Technologies Workers Union, should have combined their efforts to maximize the interests of both parties with the realization that changes are imperative. Success in the business environment requires building strong adaptability to the realities of globalization. Unions should seek a partnership relationship with companies to proactively enhance workers development opportunities in order to become more marketable. This will allow workers to adapt quickly to change and harness it to meet business objectives. The communication gag that exists today could has been avoidable had Global Communications seek the involvement of Technologies Workers Union leaders in the strategic decision-making process.