(Tiểu luận) mid term reportcase paetec

NATIONAL ECONOMIC UNIVERSITY ADVANCED EDUCATIONAL PROGRAM MID-TERM REPORT CASE: PAETEC SUBJECT : Organizational Behavior CLASS : Marketing Management 63E SUPERVISOR : Assoc Prof, Dr Pham Thi Bich Ngoc GROUP MEMBERS : Chu Thuy Binh - 11210949 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 1|Page TABLE OF CONTENTS INTRODUCTION PAETEC PORTFOLIO .3 2.1 General information .3 2.2 Headquarters and Area served 2.3 Mission Statement 2.4 Core values 2.5 Products and services .4 2.6 Ranking and achievements .4 THEORIES APPLY IN PAETEC’S CASE STUDY 3.1 Core value (chua xong) 3.2 Job satisfaction 3.3 Motivation .5 3.4 Organizational Commitment 3.5 Moods and Emotions ANSWERING QUESTIONS .7 Question What values does Chesonis emphasize at PAETEC? Question What factors likely contribute to employee job satisfaction at Paetec? Question What type of organizational commitment you think might be prevalent among PAETEC employees and why? 10 Question What kinds of work moods and emotions you think employees experience at PAETEC and why? .11 CONCLUSION AND LESSON TO LEARN 13 REFERENCES 14 2|Page INTRODUCTION 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 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 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.” 3|Page 2.4 Core values “A caring culture, open communication, unmatched service and personalized solution.” 2.5 Products and services PAETEC has 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 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 4|Page 3.2 Job satisfaction 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 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 5|Page determining if an employee will stay with the business for an extended amount of time 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 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 - 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 6|Page Document continues below Discover more from: Organizational Behavior Đại học Kinh tế Quốc… 301 documents Go to course Final exam of Organizational Behavior Organizational Behavior 100% (10) VĂN HÓA Vingroup Organizational Behavior 100% (6) 102003 44 OB A1 - OB 22 14 17 Assignment Organizational Behavior 100% (5) Organization Behavior Netflix Case Organizational Behavior 100% (4) Organisation Behaviour A1 Organizational Behavior 100% (3) Expectancy theory ANSWERING QUESTIONS Organizational Behavior Question 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-today 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 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 7|Page 100% (3) Unmatched services: PAETEC believes that satisfied and committed 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 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, 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 8|Page factors are developed concentratedly towards supporting employees’ well-being, 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 9|Page culture at Paetec Reducing discrimination, and enhancing respect are how Paetec creates equality in the workplace The examples mentioned in the article are the equal and respectful treatment of both employees and managers, along with the minimum of special perks and pay differences between managers and rank-and-file employees Question What type of organizational commitment you think might be prevalent among PAETEC employees and why? Definition Organizational commitment is defined as a view of an organization’s member’s psychology towards one’s attachment to the organization that one is working for There are three distinct components of organizational commitment: Affective commitment, Continuance Commitment, and Normative Commitment Answer The affective commitment and normative commitment might be prevalent among PAETEC employees because: People are the priority at PAETEC In addition to being taken good care of, the employees are treated with respect and all individuals are treated as equals When employees know that an organization has high morals, they stay associated with the organization Good work ethics assures any employee that they have an equal playing field in the organization to perform and advance their careers Communication between managers and employees has always been maintained Effective communication from the company leadership can lead to engagement and satisfaction among employees By being accessible to employees and recognizing their accomplishments, managers may help their subordinates feel involved in the company’s overall goals, resulting in the desire to stay with the company for a more extended period of time and work passionately towards achieving the organization’s goal A strong teamwork culture is highly valued at PAETEC There will be differences in the way people who come from different backgrounds see and perceive things and the same holds true when people work in a team Nevertheless, employees will be encouraged to collaborate and accomplish more if an organization fosters a culture of team building This will help to increase their commitment and foster longterm work culture harmony Open communication is encouraged in the workplace Employees are more likely to feel appreciated and have a stronger sense of belonging when a company is 10 | P a g e open and honest with them about its finances and statistics Hence, enhancing employee performance through transparency Employees’ families and their lives outside of the workplace are taken quite seriously Family-friendly workplace practices boost employee engagement via benefits that promote work-life balance and flexibility so that parents and carers can reconcile between work and their private life more easily; leading to increased productivity, improved loyalty and commitment Question What kinds of work moods and emotions you think employees experience at PAETEC and why? Overall, through the obvious success of PAETEC, we can conclude that they have built up a creative and balanced workplace for all employees Therefore, the work moods of PAETEC’ employees are positive and the emotions that they have experienced are happy, excited, respectful and satisfied 11 | P a g e First, by applying a caring culture, PAETEC brings to employees various kinds of work moods and emotions In fact, employees feel happy when they are commended on their achievements They also feel secure when chatting with their boss and clearing up any matters that make them confused In addition, Maestro Awards, John Budney Award as well as any other rewarding forms bring employees happiness, pride when they are praised after their constant effort for a long time The value of these rewards such as dinner for two, stock options, a luxury vacation or even a Rolex watch not only bring employees surprise, but also lead to employees’ enthusiasm in their scope of work in order to deserve more recognition Moreover, the way managers and employees are treated as equals and all employees are treated with respect will bring workers satisfaction and pleasantness After all, these positive emotions that occur for a long time will come into being mood, especially high positive effects The work moods here can be excited, elated and happy due to the fact that employees have motivation to build up revenue and profit to PAETEC and they are also praised for everything they devote for PAETEC Second, due to the fact that open communication is highly valued at PAETEC, the company prides itself on providing motivating factors to create a positive work environment The way PAETEC encourages helping behaviors and organizational citizenship behaviors make the employees enjoy the work, they will feel joy and pleasant when they are voluntary Otherwise, in order to maintain a healthy workplace, PAETEC allows employees to share their expertise and knowledge In this activity, employees will be motivated, they will be so admiring the superior and will also become more vibrant to reach higher achievement as their superior Similarly, when Chesonis shares information about the company and responds to employees' questions and concerns, the employees’ emotions will be excited and satisfied After all, it is clear that all of these activities lead to high positive moods, which are excited, elated, happy, content 12 | P a g e Third, with the unmatched service of PAETEC compared to other companies, they believe that they can provide incredible services for customers through supporting the needs and the well-being of employees Employees when they perform well, they can be commended by special awards or annual bonuses that they’re unexpected PAETEC has two types of awards: Maestro Award and John Budney Award Maestro Awards are given to employees with significant accomplishments and can vary from dinner for two to stock options Exceptional employee performance overtime is recognized with the John Budney Awards, with $5,000 including a luxury vacation or Rolex watch Employees might feel amazed when they can be given that reward From that point, PAETEC indirectly boosts employees’ motivation and makes them feel appreciated and surprised by all the rewards and accomplishments when they have a high performance This could result in superior service and performance for customers The work mood here can be high positive effect as a mood dimension consisting of positive emotions such as excited, happy Last but not least, personalized solutions help PAETEC to solve their employees’ matters in the most suitable way according to the needs of individuals By closely caring employees, PAETEC finds out and clarifies their workers’ concerns as effectively as possible The way they discover how to solve problems that are suitable for different people in their company make everyone feel secure and have the ability to work single-mindedly at work PAETEC personalized solutions by specially clarifying individual’s needs and using their own methods to satisfy them, for example, Awards and encouragements, Open communication and cooperation, Worklife balance Basis and Equality About awards and encouragement, PAETEC always commend their workers on their achievements and recognize their contribution Employees will be appreciated for being dedicated Open communication solutions help the employees associated with other employees thus can make them feel respected Through work-life basis, Chesonis recognizes that employee’ families and their lives outside of the workplace are essential to them Therefore, employees can receive paid time off work to take care of family emergencies and illness When the work-life basis is balanced, employees tend to feel cherished and enthusiastic to perform PAETEC always treats employees as equals as managers and all employees are treated with respect These evidences all lead to the fact that at PAETEC employees experience positive moods, which are happy, elated, content, relaxed and calm 13 | P a g e In conclusion, as mentioned before, PAETEC successfully created a positive, balanced and equal workplace for their employees Due to the fact that PAETEC always tries to satisfy the needs of employees, it will ultimately translate into superior service and performance for their customers Otherwise, we obviously realize that the emotions and work moods of PAETEC’s employees are in high positive affect such as happiness, elation, excitement, and appreciation CONCLUSION AND LESSON TO LEARN In conclusion, the response for the success of PAETEC company is that they always maintain four core values that are obviously a guide for managers and employees to help them ensure their satisfaction and committed employees provide excellent service to customers PAETEC always takes good care of its employees in multiple ways such as accomplishments, recognizing their contributions, encouraging open communication, special awards, annual bonus, According to these remuneration policies, PAETEC believes that well-being employees will create excellent and unmatched services Through the success of PAETEC, lessons to note down are: ● Building a strong foundation of core values and rigorously developing plans based on those values will help the organization deliver the most complete messages to employees thereby increasing understanding in the workplace company's internal environment ● “People first” lesson - focus on people, both employees and customer, provide rooms and opportunities for employees to develop and achieve their fully wellbeing is key that leads to excellent customer experience ● Sharing and caring workplace’s environment will enhance and tie connections between co-workers and therefore create a cohesive community, the foundation that helps the organization and their employees survive through the industry depression 14 | P a g e REFERENCES Channel (2006, December 5) PAETEC Wins Stevie Award From Channel Futures: https://www.channelfutures.com/industry-honors/paetec-wins-stevie-award Allison, J 2021 Organizational Commitment: Definition, Theory & Types, xem 20.11.2022< https://study.com/academy/lesson/organizational-commitment-definitiontheory-types.html.> M.George, J., & R.Jones, G (2012) Understanding and Managing Organizational Behavior (6th ed.) Prentice Hall P.Robins, S., & A.Judge, T (2022) Organizational Behavior (Global 18th ed.) Pearson PAETEC Awarded Federal Government GSA Local Services Acquisition Contract ( 2011 , July 26) From businesswire: https://www.businesswire.com/news/home/20110726006109/en/PAETEC-AwardedFederal-Government-GSA-Local-Services-Acquisition-Contract Organizational Commitment: Definition, benefits, and How to Improve It 2022 xem 20.11.2022, < https://www.questionpro.com/blog/organizational-commitment/> Wikipedia (2022, September 26 ) PAETEC Holding Corp From Wikipedia: https://en.wikipedia.org/wiki/PAETEC_Holding_Corp 15 | P a g e 16 | P a g e