Situation Analysis and Problem Statement: Global Communications Communication and information are essential for innovation, morale and change. Global Communications' lack of understanding of worker sentiment and failure to communicate company concerns led to inefficiencies in the management process. Describe the Situation Problem and Opportunity Identification As global market pressures increase due to increased competition from competitors, telecommunications markets competing for the same business, and new technologies, labor costs have become a major concern in organizations and Global Communications (GC) is no exception. As part of efforts to improve product competitiveness in the marketplace, GC has taken measures to control compensation costs. In this sense, the stock market has come under scrutiny as the market price per share has depreciated by more than 50% over a three-year period. As a result of cost control efforts that will improve profitability, the company plans to reduce overhead costs by downsizing its workforce and market itself more aggressively internationally by outsourcing work to India and Ireland with the goal of becoming a global resource within three years. contract and continuity commitment are key concepts for understanding the problems and opportunities facing Global Communications (GC). The psychological contract addresses the attitude that employees have regarding their relationship with their employer. This involves trust, commitment and respect that develops over time, and layoffs can create intense feelings in employees who believe they have been wronged. These emotions can manifest themselves through outbursts of anger, withdrawal, and lack of motivation at work. GC will have major implications in scaling call centers, offering them a unique challenge in managing an employee's resentment over an unwritten physiological contractual rule that has been violated. The front-line manager can help employees cope with the stress associated with layoffs by opening lines of communication, reporting accurate information, and being sensitive to the issues discussed. Continuity commitment represents those employees who have strong emotional ties to an organization because the costs of staying exceed the costs of leaving. In this case, GC plans to relocate some employees to consumer call centers at a pay reduction of 10%..