(Tiểu luận) mid term reportcase paetec

Paetec has four terminal values: ● A caring culture, ● Open communication ● Unmatched service ● Personalized solutions These values serve as a guide to managers and employees and are con

NATIONAL ECONOMIC UNIVERSITY

ADVANCED EDUCATIONAL PROGRAM

MID-TERM REPORT

CASE: PAETEC

Ngo Thi Ngoc Anh - 11210459 Nguyen Vu Bao Ngan - 11214225 Cao Diep My - 11214020 Nguyen Duy Tung - 11216124 Nguyen Hoang Minh - 11213863

HA NOI, 11/2022

TABLE OF CONTENTS

1 INTRODUCTION 3

2 PAETEC PORTFOLIO 3

2.1 General information 3

2.2 Headquarters and Area served 3

2.3 Mission Statement 3

2.4 Core values 4

2.5 Products and services 4

2.6 Ranking and achievements 4

3 THEORIES APPLY IN PAETEC’S CASE STUDY 4

3.1 Core value (chua xong) 4

3.2 Job satisfaction 5

3.3 Motivation 5

3.4 Organizational Commitment 5

3.5 Moods and Emotions 6

4 ANSWERING QUESTIONS 7

Question 1 What values does Chesonis emphasize at PAETEC? 7

Question 2 What factors likely contribute to employee job satisfaction at Paetec? 8

Question 3 What type of organizational commitment do you think might be prevalent among PAETEC employees and why? 10

Question 4 What kinds of work moods and emotions do you think employees experience at PAETEC and why? 11

5 CONCLUSION AND LESSON TO LEARN 13

6 REFERENCES 14

PAETEC Communication is well-known as a broadband telecommunication company that provides excellent services, which are produced by teams of well-being and happy employees Paetec, with its core values, is such a successful and worth learning model of applying personalized solutions to create unmatched services

Therefore, to learn from its success, in this report our group will analyze the case study of Paetec To begin with, we will introduce some significant information about this company After that, through theories of Organizational behavior about Core Value, Job satisfaction, Motivation, Organizational Commitment and Mood and Emotion, we will answer 4 questions below to come up with the key element of PAETEC’s Success Through deep diving into the case study, useful lessons will be absorbed then considered to apply in reality

2 PAETEC PORTFOLIO

2.1 General information

● PAETEC Communications is a broadband telecommunications firm providing local and long distance voice, data, and Internet services to business customers in over 80 markets in the United States

● Founded in 1998

● Number of employees: 4639 (2010)

● Subsidiaries: 47 total (2010)

2.2 Headquarters and Area served

● Headquartered in Perinton, New York, United States

● Area served: California, Delaware, Florida, Iowa, Michigan, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Virginia

2.3 Mission Statement

“To be the most customer and employee-oriented business in any market it

serves.”

“A caring culture, open communication, unmatched service and personalized

solution.”

2.5 Products and services

PAETEC has 6 major services:

● Voice services

● Data services

● Software solutions

● Customer premises equipment leasing

● Managed services

2.6 Ranking and achievements

● Received ISO 9002 Certified

● Received Stevie Award for being the Telecommunications Sales Organization of the Year

● 86 of top 100 Metro Regions

3 THEORIES APPLY IN PAETEC’S CASE STUDY

3.1 Core value

Core values are guiding principles that form a solid foundation of what organizations are, what they believe, and what they want to be going forward In the other word, core values are considered as the organizational pillars There are two types of values:

terminal values (desirable end state of existence) and instrumental values

( preferred modes of behavior or means of achieving terminal values)

Paetec has four terminal values:

● A caring culture,

● Open communication

● Unmatched service

● Personalized solutions

These values serve as a guide to managers and employees and are considered as the result of excellent services for customers

Paetec has weathered the downturn of the industry they work in and therefore has grown and prospered The reason for that success is the personalized solution to motivate employees By emphasizing “people” and building solid core values closely linked with the orientation of maximizing individual happiness through 4 factors:

● Awards and encouragements

● Open communication and cooperation

● Work-life balance Basis

● Equality

Paetec has created an environment where their employees can experience and develop themselves to the fullest extent thereby increasing job satisfaction, which contributes to excellent service for customers

3.3 Motivation

Due to Maslow’s Hierarchy of Needs, human beings have five universal needs they seek to satisfy: physiological needs, safety needs, belongingness needs, esteem needs, and self actualization needs By satisfying these needs from low to high, the organization can motivate their employees and therefore achieve its goals and a competitive advantage

With the theory, Paetec has satisfied the Belonging and love needs of their employees through Open communication and Cooperation and a Work-life balance Basis plan This basement creates bonds between the organization and its people, employees have chances to share, learn, experience, and help along with benefits that are provided for their families As a result, Paetec employees work with high motivation because of the fulfillment of their needs After fostering staff’s Belonging and love needs, Self-esteem needs, the higher level of needs has been satisfied by applying the Awards and Encouragements Plan, giving employees the feeling of accomplishment and therefore promoting them to fully explore their potential to achieve higher career goals

3.4 Organizational Commitment

The term "organizational commitment" refers to an employee's psychological attachment to the company they work for Organizational commitment is critical in

and work diligently to achieve the organization's set goals.

A prominent theory in organizational commitment is the 3-component model (or TCM) The model argues that organizational commitment has three distinctive components

Affective commitment is your emotional attachment to an organization A high

level of affective commitment indicates that you enjoy your relationships with the company and are more inclined to stay around You continue to stay because you want to

Continuance commitment is the degree to which you believe that leaving the

organization would be costly If your level of continuance commitment is high, you'll stick with a company because you feel obligated to For instance, you might believe that leaving your job will result in an unacceptably long period of unemployment On the other hand, you might fear that leaving a reputable company, such as a premier law firm or research agency, will cause you to lose some of your prestige

Normative commitment is the degree you feel compelled to remain with the

company or think that staying is the moral thing to do You feel like you should stay here

3.5 Moods and Emotions

According to Organizational Behavior by Stephen P Robins, our team follows and applies the definition of emotions and moods to analyze the experience of PAETEC’s employees when they are at the PAETEC workplace As mentioned in Chapter 6 - Emotions and Moods - Emotions are intense, discrete and short-lived feeling experiences that are often caused by a particular event Meanwhile, moods are longer-lived and less intense feelings than emotions and often arise without an exact event acting as a stimulus The basic moods that we can easily identify in this case study are Positive (high/low) and Negative (high/low) Positive emotions express a favorable evaluation or feeling while Negative emotions express the opposite Based on these theories above, PAETEC realized that the methods to manage employees are able to influence their emotions and moods Thus, PAETEC decided to provide a balanced work mood and always maintain a healthy and positive work environment

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4 ANSWERING QUESTIONS

Question 1 What values does Chesonis emphasize at PAETEC?

Arunas Chesonis, one of the founders and its current CEO, ensures that

PAETEC’s values are upheld by using them to guide the way he manages on a

day-to-day basis The four core values of PAETEC are “a caring culture, open

communication, unmatched service and personalized solutions.” The ways in which

these values are enacted on a daily basis result in a satisfied, motivated, and loyal

workforce whose members have developed a unique and distinct approach to the way

they perform their jobs As a result, the company has flourished during what Chesonis

refers to as the nuclear winter of telecommunications The worst downturn in the

history of the industry which has left thousands of telecommunications workers out of

work Through it all, PAETEC has kept growing The notion of these may not be

entirely new, but in such times, it's not exactly intuitive, either PAETEC is becoming

a model for how to succeed by doing it

A caring culture: An overarching principle at PAETEC is “Employees come

first.” This does not mean that PAETEC doesn’t care about customers; nothing could

be further from the truth Chesonis believes that when a company takes good care of

its employees, they will take good care of their customers For Chesonis, putting

employees first means helping them attain a well-balanced and prosperous work and

family life, providing them with deserved recognition and admiration, and fostering

open communication and helping behavior Chesonis also believes that all employees

should be treated with respect and as equals Managers at PAETEC do not receive

special perks, and pay differentials between managers and nonmanagers are

deliberately kept relatively low

Open communication: Chesonis is known for taking daily walks around

PAETEC’s headquarters in Fairport, New York, talking with employees, answering

questions, and recognizing accomplishments There is almost no limit to how much

departments and people are expected to communicate at PAETEC Chesonis wants

every department to share knowledge with each other Moreover, Chesonis conducts a

companywide conference to share information about the company with employees and

responds to their questions and concerns As a result, open communication and

cooperation are highly valued at PAETEC and employees are expected to voluntarily

help each other out and helping behaviors and organizational citizenship behaviors are

encouraged at PAETEC Boundaries between units and departments are minimized so

that employees will share their expertise and knowledge with each other Employees

are expected to provide excellent service to their customers and are empowered to

come up with new ideas to better serve customers needs

Expectancy theory Organizational Behavior 100% (3)

1

employees can provide outstanding services for the customers In this company, the workers become the first concern By helping them achieve a successful work-life balance, showing the respect and admiration they deserve, encouraging honest dialogue, and boosting open communication, Chesonis expects that employees can come up with incredible ideas that exceed customers’ expectations and help PAETEC prosper and grow

Personalize solution: PAETEC solves their employees’ matters in the most

suitable way according to the needs of individuals By closely caring employees, PAETEC finds out their workers’ concerns as effectively as possible and uses their own methods like Awards and encouragements, Open communication and cooperation, Work-life balance Basis and Equality to satisfy them About awards and encouragement, employees always receive bonuses based on their own accomplishments and company performance PAETEC also has two main awards to recognize the efforts of each employee: Maestro Awards (for employees with significant accomplishment) and John Budney Award (for exceptional employee performance over time) Hence, the hard-working employees will be appreciated for being dedicated and have more enthusiasm in their work Open communication solutions help the employees associated with other employees Thus they can share knowledge with others and receive the answer of their questions that help them solve the problems Finally, through work-life basis, Chesonis recognizes that employees’ families and their lives outside of the workplace are essential to them Therefore,they can receive paid time off work to look after their family emergencies and illness or have fun together through some Company’s planned parties and special outings at various times during the year

Question 2 What factors likely contribute to employee job satisfaction at Paetec?

According to the Organizational Behavior workbook definition - job satisfaction is a positive feeling about a job resulting from an evaluation of its characteristics, that leads to job performance, OCB, customer satisfaction, and life satisfaction Absorb the theory and then apply it to Paetec's case study, with exceptional achievements and prosperous growth while the industry lost thousands of jobs, those outcomes make the company a model worth learning about building and enhancing job satisfaction of the workforce Deep dive into the case, 4 factors are

determined that contribute to job satisfaction at Paetec are Awards and encouragements, Open communication and cooperation, Work-life balance Basis, and Equality - factors that follow cohesively with Paetec's core values At Paetec, the

word “people first” is emphasized and tied with their values, based on that basis the 4

therefore, creating excellent service for customers

The first factor to discuss is Awards and encouragement Applying the Using reward to Motivate employees section of Motivation theory, Paetec is very generous

in recognizing the achievements and efforts of its employees with multiple ways of

rewarding such as an employee recognition program, merit-based pay plan, an annual award, etc The recognition is not only with in-kind values, Paetec's

management team always recognizes and supports employees to develop their achievements by commending or even answering employees' questions promptly and

comfortably Through reward plans, employees are in an environment where all their efforts are recognized along with support so that they always have space to develop their achievements This is what makes Paetec's staff work with passion and loyalty to

create more and better services

According to Functions of Communication: “Communication is a fundamental mechanism by which the members show satisfaction and frustration.” by enhancing

communication within the workplace, emotional sharing, persuasion, and information exchange will be easier than ever Looking back into the case study, it is

clear that Paetec is using Open communication and cooperation to promote their employees to create better outcomes By minimizing the distance between departments, building an open culture, and maximizing sharing and helping, Paetec has created opportunities to help, learn, experience, and maximize development The

"openness" is not only enhanced between employees and employees, but also between employees and managers Inquiries will be answered by companywide conference and

response, the clarity of information between levels makes employees work without suspicion. It is cohesion and transparency that will limit job dissatisfaction and help employees to engage and maximize their potential.

Due to a study that has been mentioned in Employee's definition of well-being

at the workplace in the workbook, 56% of men and women reported that Work-life balance was their definition of career success Paetec CEO, Chesonis, clearly understands that without a strong family foundation, employees will be demotivated

to create outstanding achievements Well aware that Paetec creates a sustainable

environment for employees and their families with benefits, compensation, and events for their employees' families to ensure the company staff’s well-being.

Therefore, Paetec can build a cohesive community between the company, employees,

and their loved ones that can affect and promote their staff to work with high commitment to the company

Last but not least is Equality, even though this is not analyzed clearly and

concentratedly in the case study, but mentioned as an aspect of the workplace’s