Recently the telecommunications industry has been a disappointment. Stockholders are in an uproar over plummeting returns on their investments and fear that the trend will not return to normal. There has been a drop in stock prices that top over 50%. The harsh environment has put Global Communications under the microscope to perform economically. The market is saturated with companies domestic and abroad vying for the same business. Cable companies have dealt a devastating blow by bundling services that were once sold separately, such as computer, television, and telephone.
Global Communications has declared that it will be outsourcing technical support jobs to the overseas market. ...view middle of the document...
Corporate leaders rely on metaphors and other ambiguous language to describe ill-defined or complex ideas," (Mcshane & Von Gilnow, 2005, p. 18). The idea to remove the union from the decision making process will come back to haunt Global Communications in the near future.
The union has already initiated talks with the government, exploring the legal options they have available in their case against Global Communications. The next round of negotiations will prove most difficult for Global Communications. Global Communications has to move in a different direction when it comes to talks between them and their union. Global Communications must extend the olive branch to the union by being frank and upfront with all decisions that affect their employees. Global Communications must share their vision of conquering the global market place with its union.
GC will be laying off its domestic employees to prepare for a global launch. The loss of domestic workers will negatively impact company morale. GC has to be aware that bliss and misery are highly contagious. "Emotional contagion is the automatic process of "catching" or sharing another person's emotions by mimicking that person's facial expressions and other nonverbal behavior". (Mcshane & Von Gilnow, 2005, p. 11). Negative employee morale will negatively impact Global Communications' productivity. Massive layoffs make Global Communications an unattractive company to potential employees. The public dispute with the union makes Global Communications look like combatants against the well being of its workers, and that image will turn off prospective employees needed to expand its business into the international market.
Outsourcing will damage the public image of GC. GC has to show how the outsourcing of jobs will allow for competitive prices for the general public. GC must alter public opinion on its plans to relocate jobs to other companies. "Words and gestures carry no inherent meaning, so the sender must ensure the receiver understands these symbols and signs. In reality, lack of mutual understanding is a common reason why messages are distorted." (Mcshane & Von Gilnow, 2005, p. 16). Outsourcing can cause the consumer to boycott a company, because of a distorted sense of patriotism. The rationale is that they will not support a company that takes American jobs overseas. Global Communications is in a position to play to their sense of self preservation by publicizing that the new plan will lower prices and maintain a superior product.
GC stakeholders will perceive the issues with the union as a negative sign of things to come. The loss in market share will only strengthen shareholder doubts. GC has the chance to reveal their plans to take the company to an international level, thus improving the bottom line. "Filtering may involve deleting or delaying negative information or using less harsh words so that events sound more favorable". (Mcshane & Von Gilnow, 2005, p. 16). Global Communications...