Week 2: What is driving the need for this transformational change? (240-300 words)

Running Head; Transformational Change Management Plan

Transformational Change Management Plan. 3

HRMT440-1402-01

Transformational Change Management Plan

Phase 1 Individual Project

Sean Hall

Colorado Technical University

Dr. C. Mallory

4/14/2014

INTRODUCTION

According to Stiglitz, J. And Charlton, A., (2005), offshoring is the process allocating a firm’s services to a foreign country. It is also defined as the relocation or migration of a firm from mother to another country for operation service such a manufacturing, or other services. In US it has become the option of most companies including the information technology industry leading to lay-offs of long-serving employees. However, this essay discusses offshoring of production operations.

STAKEHOLDERS

Despite the fact that offshoring research has been done from different sources, the decision can have a great impact on how it affects the stakeholder. As stated by Krugman, Paul (2006), both investors and consumers occupy different ethical roles. As such, those roles may affect the ethical evaluation of offshoring. They also have the fear that the security of their information as well as their product quality may lead to immorality influencing the decisions made. This leads to stakeholders taking no more trust on the firm as well as the inability to trust it with their private information.

WHY THE CHANGE

Some of the reasons why a company may wish to offshore its services are that it wants to improve its economic stability, (Krugman, Paul 2006). For instance, reducing labor arbitrage helps in improving the firm’s profitability. Offshoring is as well much important as it helps in increasing employment in the destination country and production of goods as well as provision of services at low labor costs. However, such benefits are deducted in the countries with higher labor costs. Though the change is received differently by different individuals, it is negative that they lose their jobs. However, they have to bear the situation since the benefits outdo the limitations.

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REFERENCES

Stiglitz, J. And Charlton, A., (2005). “Trade can be Good for Development,” Ch. 2 in Fair Trade for All, Oxford University Press, Oxford, NY

Krugman, Paul (2006). "Feeling No Pain." New York Times, March 6, 2006.

Bailey, David and Soyoung Kim (June 26, 2009).GE's Immelt says U.S. economy needs industrial renewal.UK Guardian.. Retrieved on June 28, 2009.