Situation Analysis and Problem Statement: Global Communications
A well established body of evidence now shows that the confidence in the telecommunication industry is waning. Stockholders are bemoaning diminishing returns and doubting the ability of the telecommunication industry to grow again. The economic pressure working against them was very noticeable in Global communications stocks, traded three tears ago at $28 per share; today, the stock is valued at $11, more than 50% depreciation. Stakeholders are looking for ways to turn the company around which can range from expanding the business from local to international, outsourcing jobs from expensive labor areas to dirt cheap labor areas in an effort to maximize profit at the expense of the new technology that will be added to the their line of business. Employees development was an issue to be addressed in relation to the union in which they belong . The organizational behavior concepts influencing outsourcing, union management in relation to management practices must be carefully evaluated to avert losing its' valuable employees. The stakeholders must considers issues like: the new attitude of those employees losing their jobs to other parts, emotions that come along with those getting a reduction in pay, recent cut back in the benefits of the employees in an attempt to save the company by the union members. The stakeholders are looking for ways to maximize profit and at the same time claim global dominance in the telecommunication market. The union was heading the same direction based on their recent cut back in benefits. From this, it is evident that common grounds can be reached in relation to maximizing profits without little or no job loss. Outsourcing could be
considered an aggressive approach that ...