Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications
Karen Smith
University of Phoenix Online
February 21, 2011
Matthew McCallister

The telecommunications industry has experienced economic pressures that has produced diminishing returns for stockholders and decreased value in stock shares the past three years. Global Communications has been no exception. The senior team gained approval from the board to partnership and globalize the corporation to reduce cost and increase profitability.

Although this strategic plan has been approved, resistance from the Technologies Workers Union has set the stage against outsourcing jobs that will cause workers to lose their employment positions. Ethical Dilemmas provide some of the most challenging decisions for a company to address. The response to these dilemmas should only be made after careful group decision-making techniques are in place. In the Global Communications scenario, the company specializes in the telecommunications industry and had to make tough choices on ethical issues and changes within the company.

This scenario provided an example for the class to investigate similar ethical dilemmas within companies in the United States. This research is then used to synthesize the key discoveries and results of comparing and contrasting the practices of each company related to key course concepts. Key course concepts include response to ethical dilemmas, decision-making models, strategies, effective communication techniques, accountability, and generic benchmarking.

Situation Analysis
Issue and Opportunity Identification

The telecommunications industry along with Global Communications, have experienced economic pressures and hardship within the last three years. Stockholders have questioned if Global Communications could rebound and increase their stock value. With competition also becoming a factor, Global communications have restructured and realized growth opportunities through new services and outsourcing to become a global corporation within three years.

Outsourcing is the most recent management tool to emerge in response to demands for more efficient ways to address organizational competitiveness, and is potentially one of the most powerful (Muren, 1997, p. 535). Through outsourcing, Global Communications has the opportunity to form a partnership with a wireless provider and reduce unit cost for handling calls by 40%, thus making them a worldwide leader in the industry.

While outsourcing is certainly motivated by competitive pressures to contain cost, it is perhaps motivated even more by competitive pressures to gain access to the outsourcing supplier’s specialized skills and operating efficiencies to gain continual improvements in quality and productivity (Muren, 1997, p. 535).

Stakeholder Perspectives/Ethical Dilemmas

Many stakeholders have concerning and valued interest in Global Communications. The main parties who have an interest consist of the senior team and employees (union) of Global Communications. Other parties who also have interest are the president and vice president of the Technologies Workers Union, Stockholders, Partnerships (India and Ireland), Local, Long- Distance, and international Markets.

Any group or individual who can affect or is affected by achievement of a corporation’s purpose (Freeman, 1984, p. 564) will have some measure of conflict related to the organizations goals. This conflict has resulted in the senior team gaining permission from the board to exercise the strategic planning of forming a partnership and outsourcing to establish a global corporation within three years.

However, slight tensions among the senior team have caused some disagreement over how lost jobs, restructuring information, and relocation will be implemented. Stockholders are more likely to be pleased with the plan India and Ireland forming an alliance and partnership are looking to participate in the new strategic plan.

Local, Long-Distance, and international markets will see the partnership as a treat to the existence of their organizational goals and livelihood. The Technologies Workers Union has expressed their disappointment toward the outsourcing of jobs, leaving union workers without any means of security for the future.

The union has noted to use any resources available to stop the strategic plan. Those who experience or anticipate experiencing potential benefits or dis-benefits as a result of the organization’s actions (Donaldson and Preston, 1995) will in some shape or form, develop conflict, or similar interest because of implemented strategies and the opportunity to increase stock share, which has declined to more than 50% in the past three years.

Problem Statement

Global Communications will expand and strengthen operations by forming a partnership and alliance with a wireless and satellite provider to allow the introduction of new products and services. Although the realization of new growth has become a possibility, the range of opportunities to accomplish these goals consist of accountability, effective communication, ethics in decision-making, generic benchmarking, and the utilization of the nine-step decision- making model. Our relationship with the union remains strained and uncertain at this point. The importance for better relations will need to be established to change the dynamics communication and trust within the organization.

End-State Vision

Global Communications will be known and recognized as the leader in customer service and technology in telecommunications. Our vision will reflect the need of customer’s values and principles to provide the best products and services for lasting relations dedicated to total satisfaction. In efforts related to employees and union representatives, continuous efforts based on communication, trust, and respect will continue and remain the highest priority to preserve positive relations.

Alternative Solutions

Global Communications and Union representatives can offer alternative solutions to

show “good faith” in the attempt to grow a trustworthy relationship. These alternatives will

consist of performance appraisals and development, third party mediation, and maintaining a

continuous and extensive line of communication. Performance appraisals are divided into five

successful parts of implementation as an incentive to boost employee morale and company

satisfaction.

• Feedback. Performance appraisals provide employees with feedback regarding their

performance, usually at least once a year and often on an interim basis during the year. This

leads to reduced errors and waste, increased productivity, improved quality, and service for

customers as well as enhanced employee motivation, commitment, and a sense of ownership

(Nickels, Spring 2007).

• Goal setting. Performance appraisal sessions provide an opportunity for discussions that

include setting work-related goals and objectives for the individual as well as aligning individual

and organizational goals (Nickels, Spring 2007).

• Career management. Performance appraisal sessions also provide opportunity for

identifying training and development needs and discussing career advancement opportunities

(Nickels, Spring 2007).

. Objective assessment. Performance appraisals are made objective through uniform

processes and criteria. This also results in a fair, valid, and legally defensible basis for rewarding

and recognizing individual performance (Nickels, Spring 2007).

• Legal protection. Performance appraisals afford the corporation legal protection against

employee lawsuits for discrimination and wrongful termination (Nickels, Spring 2007).

Third party mediation could offer Global Communications and union representatives

alternatives by having a neutral representative to hear both sides while offering help to find

solutions to current issues.

Mediation is a form of dispute resolution in which a third party assists the parties trying

to reach an agreement but does not have the authority to impose an agreement on them (Brett,

March, 1991). This can be used in both industrialized and non-industrialized societies to resolve

disputes within and between families, communities, organizations, and nations (Brett, March

1991).

Maintaining an extensive line of open information and communication between labor and

management has become the catalyst for growth and development with Global Communications.

Mutual trust and respect between labor and management are required before most workplace

cooperation programs can be successful (Herrnstadt, 1995). If management is serious about

creating a cooperation program, it must begin by building trust with labor (Herrnstadt, 1995).

The level of trust implemented into a work culture will greatly benefit the efforts that

Global Communications could establish. Management must also prove that it is committed to

creating programs that satisfy everyone by demonstrating restraint to unilateral implementation

programs when impasse has been reached (Herrnstadt, 1995).

Analysis of Alternative Solutions

The relative importance has been assigned by maintaining and creating future jobs as the high priority, followed by becoming an industry leader. Next on the list would be followed by forming a partnership and alliance, to cost cutting measures and finally, aggressive marketing strategies. These goals were assigned in this order based on the vision, standards, and organizational goals set in compliance to the company’s needs.

The best alternative with respect to each goal was the use of extensive open information and communication, which was rated 4.53. This was necessary because organizational success will not survive without the prospect of this factor. The second alternative with respect to each goal was the use of third party mediation, which was rated 3.67. This will hold great importance as it will help opposing sides show “good faith” in negotiations and the willingness to come to a compromise by use of a neutral party.

The third alternative with respect to each goal was the use of a performance appraisal program, which held a rating of 2.87. This will allow many attractive incentives to assist in employee morale, which will ultimately produce high quality and customer service for Global Communications.

Risk Assessment and Mitigation Techniques

The extensive line of open information and communication hold the highest probability of organizational failure because of the risk of vulnerability, miscommunication, and the uncertainty of the potential outcome. The consequence and severity of effective communication can hinder decision-making, produce low morale, and influence negative publicity.

Some mitigation techniques used to combat some of these factors consist of avoidance of communication, reduction of communication and information, and sharing of information. These risk have not closed the opportunity for implementation.

This case is a clear-cut example that more is needed for effective communication than mere channels along which factual information and statements of intention can flow (Pigors, 1953, p. 499). Such "messages" were sent and received, but their manner, tone, and timing betrayed to unfriendly to attitudes and unsound aims on both sides (Pigors, 1953, p. 499).

For this reason, many opportunities for improving cooperation were overlooked, neither working at nor even looked for. When such unilaterally determined aims and uncooperative attitudes establish the context of communication, everyone loses in the end, even while winning short-term aims (Pigors, 1953, p. 499).

Third party mediation holds a great significance when the measurement of risk has been assessed. For mediation to become successful, both sides must show candidness, consideration of points of view, and awareness of differences that can be resolved.

The consequence and severity of this situation can result in no compromise, lack of appreciation, and lack of respect toward relevant and related issues. The possibilities of outcome in third party mediation can result in renegotiation, litigation, and possible arbitration. Mediation will not narrow the possible choices of risk assessment to discard the possibility of a solution. This process will begin

Some of the important conclusions include the following: User satisfaction is high, even for those who fail to reach an agreement; compliance is high, especially if implementation terms are spelled out in the agreement; rates of settlement are high, and agreements tend toward compromise and equal sharing of resources; mediation also speeds settlements, as compared with litigation, and costs are lower (Brett, March 1991, p.137). These are no small accomplishments for a procedure often carried out by relatively inexperienced third parties with limited training, acting under severe time constraints (Brett, March 1991, p. 137).

Mediation does have limits. Court backlogs have not been reduced significantly were mediation is available, most likely because the number of disputes taken to mediation is relatively low (Brett, March 1991, p. 137). Mediation is not an alternative to therapy. It cannot alter dysfunctional patterns of relating in interpersonal relationships, probably because it is too narrowly focused and mediation time is limited (Brett, March 1991, p. 137). Mediation does not empower the disenfranchised. Most mediators view their role as facilitating the resolution of a dispute, not protecting the interests of the disputants. Although mediation settlements may tend toward compromise and sharing of resources, these very settlements preserve the status quo (Brett, March 1991, p. 137).

Performance appraisal programs have been a positive force in organizations adding more incentives to boost morale and increasing quality values in customer service in products. The potential risk associated with performance appraisals consist of management failing to be honest about the performance evaluations, failing to provide a notice of potential performance problems, and making comments unrelated to performance.

The consequences of these actions could cause frustration and conflict between management and union representatives, lack of faith in appraisal systems, and inaccurate reports of performance. The possible outcomes of performance appraisal consist of employee self-evaluations, 360-reviews, and appraisal discussions. The risk associated with this assessment does not change or narrow the choices, as all alternatives must be considered to establish a justifiable solution.

According to Nickels, (Spring 2007, p. 15) the hard costs of performance appraisal systems consist chiefly of the direct and indirect expenses associated with the following activities: • Preparing appraisals. • Setting goals and objectives. • Purchasing performance appraisal software. • Purchasing performance appraisal consulting services. • Conducting interim and annual performance reviews. • Reviewing at higher levels appraisals written at lower levels. • Designing, printing, copying, filing, and distributing appraisal forms. • Designing and communicating the appraisal process. • Training supervisors, managers, and executives in the appraisal process. • Handling post-appraisal appeals, grievances, and lawsuits.

Performance-related discussions between bosses and subordinates do not require a formal, full-blown performance appraisal system. Indeed, it can be argued that the coaching and counseling sessions that shape and improve employee performance occur informally, outside such systems (Nickels, Spring 2007, p. 16).

Optimal Solution

While evaluating Global Communications end-state vision and current situation, it has become vital for changes that will produce challenges to meet the objectives. Establishing an open communication channel with all stakeholders involved that hold a specific or valued relevant interest, along with resolution of conflict with the Technologies Workers Union will start the process of moving forward in the right direction. Communication will not necessarily make certain stakeholders agree or determine what will be in the best interest of the organizations survival and profitability. Careful consideration of mediation and media exposure could tarnish company relations and reputation if a common ground cannot be reached.

Longest Jr. and Rohrer (2005) All communication between agencies and their external stakeholders involves the exchange of information between the agency - or individuals representing the agency or subunits of the agency - and its external stakeholders. Effective communication between agencies and their external stakeholders accomplish what is sometimes called boundary spanning (Longest Jr. and Rohrer, 2005, p. 191).

By successfully spanning the boundaries between itself and its external stakeholders, an agency obtains information from external stakeholders can be useful to the agency on the one hand, or provides information to relevant external stakeholders (Longest Jr. and Rohrer, 2005, p. 191). Gleaning useful information from external stakeholders or providing information to them depends upon effectively communicating with these constituencies (Longest Jr. and Rohrer, 2005, p. 191).
Implementation Plan The determination for the recommended solution heavily relies in the implementation of extensive open information and communication. Although this may be the recommended solution, secondary alternatives have been established as a backup plan to support the vision and goals of Global Communications.

These secondary alternatives consist of third party mediation and the use of performance appraisal programs to assist with the reconstruction and development of the organization. Joel Thompson will be responsible for the implementation of the performance appraisal program. Joel will work closely with union officials and employees to ensure a smooth transition that will be beneficial to all parties involved. This program will run through June first 2004 to December first 2004 for training purposes.

Performance appraisal is one of the key functions of an organization’s human resources department. Organizations use the data collected in performance appraisal systems for several purposes (Wienclaw, 2010, p. 1). Perhaps the best known of these is to establish standards and an evaluation system that can be used to form the basis of judgments regarding to reward employees for good performance or punish them for poor performance (Wienclaw, 2010, p. 1).

Many approaches to designing a rating scale are used in performance appraisal. The simplest of these is the global rating scale in which each employee is given a single score that rates his/her overall performance (Wienclaw, 2010, p. 3).

The secondary alternative of third party mediation will involve Katrina Heinz (CEO), Maria Antez (VP Workers Union), Joel Thompson (VP of HR and PR), and Andre Mustov (president of Workers Union). These group of individuals must work together to compromise for the future and longevity of Global Communications. Should the possibility of an agreement cannot be reached, the interest in a neutral mediator will ensure “good faith” in negotiations. This will begin immediately on April first 2004 to begin the process of establishing a new order of compromise.

Mediators often have informational power. For example, experienced divorce mediators can make suggestions about how other couples have arranged the custody of their children (Brett, March, 1991). Mediators, who are using caucuses, may have confidential information about each side's priorities that allows the mediator to suggest an integrative agreement (Brett, March, 1991).

The preferred solution resides in effective, extensive communication. The parties involved consist of all current participants from the executive team, union officials, employees, and merged partnerships with the wireless and satellite providers. This process will begin immediately on April first 2004 to establish a new communicative culture.

Communication itself is a process. We see this in two ways. First, each episode of a communication is a cycle. This consists of at least three phases: expression, interpretation, and response. Second, in a continuing relationship, successive cycles of communication have a cumulative meaning (Pigors, 1953, p. 499).

This reminds us of another kind of process: every human relation is always in a state of change. This is constantly getting better or worse. Unfortunately, process is not necessarily progress. In fact, a uniform, steady, forward movement toward cooperation is probably impossible in any relationship (Pigors, 1953, p. 499).

In union-management relationships, there are especially powerful forces that tend to put in reverse the process of learning how to get on together. To counteract forces that make for conflict, a powerful effort for cooperation must constantly be exerted (Pigors, 1953, p. 499).

Evaluation of Results

The foreseeable future of Global Communications with the implementation of alternative solutions has been measured and evaluated for meeting organizational goals. Becoming an industry leader will require extensive organizational communication with all levels of management, union officials, and employees.

The communication process will permit the creation of jobs, forming partnerships, aggressive marketing, and introduction to new products and services. Communication has interconnected the variables of Global Communications goals to fit the vision of where the company wants to be within the next three years. The fact of holding three alternative solutions provides flexibility to counter-act current and future challenges that may arise.

The reliability of measurements associated with the key discoveries and possible solutions should provide the opportunity to implement an evaluated process. Global Communications goal of timely implementation of the targeted date will determine the outcome of results related to reorganization.

Conclusion

As seen throughout this paper, companies that differ in their forms of business, still hold some of the key ethical decisions to ponder off the type of products or service they provide. Although we are in business to make a profit for our organization, shareholders, and employees, it is also important to consider consumers and the effect business can place on their lives.

Companies that consider consumers while producing and marketing their product will have less ethical decisions to re-evaluate later. Global Communications proactive use of the nine-step decision-making model will combat issues and address potential concerns before they become hazards to business development.

Global Communications will be able to solve their economic problems by not only establishing a partnership and outsourcing for expertise at a lower cost, but also by practicing effective communication. Fear of an inside competitive advantage should not outweigh the channels of communication, which is vital to maintaining and strengthening close relations, especially for negotiation purposes.

Even though Global Communications maintains that “Our Edge is People,” and a commitment to maintain and create new jobs, the importance of informative communication remains the key to establish the organization into a global icon.
References

Brett, J. M. (1991). Mediation Research: The Process and Effectiveness of Third-Party Intervention. Administrative Science Quarterly, 36(1), 137-139. doi:http://ehis.ebscohost.com

Herrnstadt, O. (1995). Labor-Management Cooperation: is management ready? Labor Law Journal, 46(10), 636. doi:http://ehis.ebscohost.com

Longest JR, B. B., & Rohrer, W. M. (2005). Communication Between Public Health Agencies and Their External Stakeholders. Journal of Health and Human Services Administration, 28(2), 189-217. doi:http://ehis.ebscohost.com

Nickels, f. (Spring 2007). Performance Appraisal. Journal of Quality and Participation, 30(1), 13-16. doi:http://ehis.ebscohost.com

Pigors, P. (1953). Communication in Industry: A Case of Conflict. Industrial and Labor Relations Review, 6(4), 497-509. doi:http://ehis.ebscohost.com

Wienclaw, R. A. (2010). Performance Appraisal. Performance Appraisal-Research Starters Business, (6), 1-6.
Table 1
Issue and Opportunity Identification
|Issue |Opportunity |Reference to Specific |Concept |
| | |Course Concept | |
| | |(Include citation) | |
| Global Communications senior team was given |Global Communications can |“Outsourcing occurs when employer |Outsourcing for |
|the approval by the board to outsource job positions in |reduce unit cost for |A contracts with another employer |competitive edge. |
|an attempt to become a global corporation. The decision |handling calls by 40% and |or employers (Including | |
|was made without proper notification to the union, which |transform into a global |Independent Contractors) to have | |
|did not have the opportunity to express concerns and |corporation within 3 years. |the employee of that (or those) | |
|possibly negotiate an alternative solution. Because of |Thus, having the opportunity|other employer(s) do work formerly| |
|this new strategic plan, the union has committed itself |to create as many jobs as |done by employees of employer (A).| |
|to use all available resources to halt the current plans |possible. |Among the probable sources of such| |
|of Global Communications. | |perceived competitive advantage | |
| | |are: (1) reliability, (2) | |
|The outsourcing of union work and jobs either diffuses or| |quality, and (3) cost (Perry, | |
|diminishes union membership, depending on perspective and| |1997, P. 521). | |
|situation (Perry, 1997, P.533). | | | |

Table 2
Stakeholder Perspectives
|Stakeholder Perspectives |
| | |
|Stakeholder Groups |The Interests, Rights, and |
| |Values of Each Group |
|Stockholders |Positive economic returns on traded stock shares. |
|Local, Long-Distance and International Markets |Competing for the same business as Global Communications. |
|Cable Companies |Providing complete solutions that encompass computers, televisions, and |
| |plain old telephone service. |
|Katrina Heinz |Increasing revenue and profits through aggressive globalization. |
|Sy Rodriguez |Establishing relations with key stakeholders through consumer marketing |
| |and sales. |
|Nancy Everhardt |Creating innovative packages and solutions for small and medium sized |
| |business owners. |
|Joel Thompson |Establishing relations with key stakeholders and the union. |
|Maria Antez |Maintaining relations between Technologies Workers Union and Global |
| |Communications. |
|Employees and the Union |Maintaining job security. |
|India and Ireland |Expertise in the communications industry for almost half the cost (40%). |
|Andre Mustov |Fairness to open negotiations and union employees while ensuring |
| |compliance with agreed contracts between Technologies Workers Union and |
| |Global Communications. |

Table 3

Analysis of Alternative Solutions [pic]

Table 4
Risk Assessment and Mitigation Techniques
|Risk Assessment and Mitigation Techniques |
|Alternative Solution |Risks and Probability |Consequence and Severity |Mitigation Techniques |
|Extensive line of open |Vulnerability |Negative publicity. |Avoidance |
|information and communication.|Miscommunication |Hindered decision making. |Reduction |
| |Uncertainty |Low morale. |Sharing |
|Third party mediation |Showing candidness. |No compromise. |Renegotiate |
| |Awareness of differences. |Lack of appreciation. |litigation |
| |Consideration of points of views. |Lack of respect. |Arbitration |
|Performance appraisal program |Failing to be honest about |Frustration. |Employee self- evaluation. |
| |performance. |Lack of faith in appraisal |360-degree reviews. |
| |Failing to provide notice of |system. |Appraisal discussion. |
| |problems. |Inaccurate report of performance.| |
| |Making comments unrelated to | | |
| |performance. | | |

Table 5
Optimal Solution Implementation Plan
|Deliverable |Timeline |Who is Responsible |
|Performance Appraisal Program | 6/1/04 thru 12/1/04 (For training |Joel Thompson |
| |purposes) | |
|Third Party Mediation |Immediately (4/1/04) |Katrina Heinz, Maria Antez, Joel |
| | |Thompson, Andre Mustov |
|Extensive line of open information and |Immediately (4/1/04) |Global Communications, Technologies |
|communication | |Workers Union, Wireless and Satellite |
| | |Provider |

Table 6
Evaluation of Results
|End-State Goals |Metrics |Target |
|To become an industry leader. |40% to 50% new customer base. |Anticipated growth by 1/05/09. |
|Committed to maintaining and in the future,|Profitable revenue with continuous |Monthly meetings starting 6/1/04. |
|creating as many jobs as possible. |communication with union. | |
|Introduction of new services to its business |Based on merger. |Introduction by 3/1/05. |
|and consumer customers. | | |
|To compete with the local telephone and cable|Marketing new products and services. |Competition beginning 6/1/05. |
|companies. | | |
|Partnership with a wireless provider that |Merger alliance. |Start Merger 1/5/05. |
|will allow small business owners anytime | | |
|access using wireless telephone or PC cards. | | |
|Cost-cutting measures that will improve |Reduce handling calls by 40%. |Reduce U.S workforce by 10/1/04. |
|profitability. | | |
|Market more aggressively on an international |Merger alliance. |By 3/1/05. |
|level. | | |