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Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS
Problem Solution: Global Communications
University of Phoenix
Problem Solution: Global Communications
GC has witnessed revenues diminish due to increased competition which has significantly impacted the value of the stock price. The leadership team is reacting to this problem by increasing the size of the company and GC's profit margin while minimizing operating costs which will result with an increased share value. New services through partners will be sought so further cost reductions can be achieved by outsourcing call centers currently hosted in the United States overseas to India and Ireland. What management has failed to do is related to organizational communication. GC has failed to reach out to many of the stakeholders. GC has failed to follow the Perceptual Process Model of Communication (Kreitner & Kinicki, 2004, p. 521). This lack of direct communication has caused the employees to rely on the "grapevine" for information (McShane & Von Glinow, 2004 p. 345). Although this can be beneficial in certain instances, the grapevine has caused employees to become uncertain of their futures because of off shoring rumors. Workers believe that they are now faced with either job losses or a reduction in salary; employee morale is at an all-time low. GC did not follow steps to ensure that the purpose and impacts of international outsourcing were understood. The stakeholders were not effectively involved. The Technology Workers Union was not involved in the decision process and is now threatening to take legal action. Communication has failed to occur at several levels of the organization. GC must act quickly ...