Case Analysis of Paetec CommunicationsEssay Preview: Case Analysis of Paetec CommunicationsReport this essayPAETEC Communications provides local and long distance telephone service as well as internet service. (George & Jones, 2012) They were founded in 1998 with 20 employees. (George & Jones, 2012) Since then, they have grown to 80 markets and 3,600 employees with one-billion dollars in revenues. (George & Jones, 2012) A company like this does not accomplish success without a commitment to their employee and customers.
According to the CEO of PAETEC Communications, Arunas Chesonis, the core values of their company are a caring culture, fluid communication, unparalleled service and solutions owned by the employees. (George & Jones, 2012) While it is said these values are maintained on a daily basis, they are intended as a guide for both managers and employees. (George & Jones, 2012) All employees are to follow these values in effort to ensure employees are satisfied so they will be more apt to provide superb customer service. (George & Jones, 2012) While the case deems these as values, they are really more a code of ethics for the company. The values set before the employees are more like rules and standards which are based off the beliefs. (George & Jones, 2012) While Chesonis contends they should always take care of their employees first, and this is probably true, the values are also in place to ensure customers are also taken care of. (George & Jones, 2012) Any good company should make sure they take care of their employees, after all without employees of high quality, where would a company be. Stakeholders expect for their investments to be protected and the employees are some of the stakeholders. PAETEC fosters an open communication policy and wants employees to come to management with ideas for better customer service. (George & Jones, 2012) Additionally, the CEO holds conference calls with employees to share information and respond to any questions or concerns during the calls. (George & Jones, 2012) These are all ways to help make stakeholders feel good about their investments and be satisfied employees.
So, in order to help ensure PAETEC employees are satisfied they are given many perks with their employment. (George & Jones, 2012) PAETEC does not create a hostile environment between management and their employees by giving management perks all the time. (George & Jones, 2012) While they do give perks to management, they try to keep them to a minimum. (George & Jones, 2012) Additionally, the salary gaps between their employees are kept in perspective. (George & Jones, 2012) PAETEC rewards employee with annual bonuses, awards and stock options based off of their own accomplishments personally as employees and as a company. (George & Jones, 2012) By doing this, PAETEC is creating longevity with their employees and in turn their company. Employees are given paid time off when they have family member who is sick or
troublesome. So they do this in a way that will help keep the company on their toes. That employee’s pay may not be equal to whatever the other employee’s pay is due to the employment that he or she has with PAETEC. The employees are told by PAETEC that there are no limits to what they can do and they want to maintain that quality employee. However, the only good part about being a PAETEC employee is that you have no obligation to the company or even the employee. . . to keep your employees happy in a way that ensures they are given an even higher value. [P]eople are given no rights, such as power, control, or ability to choose what they work or what they do. [P]eople can act on what they do or what they don’t do or not do. But that means the job is not a one-time thing. . . PAETEC also has very few employees that it uses for that purpose. [This includes, but is not limited to, PAETEC employees and the employees in the Executive Office and the senior team] . These employees are given an independent status regardless of the work they perform or whether they have worked for any other company. [PAETEC employees] . The PAETEC Board members and the Executive Officers of all offices have authority and authority to determine a salary in any reasonable and reasonable manner. Additionally, when the PAETEC Board decides that one salary for a specified employee is excessive, the compensation will be adjusted prior to the decision. [For example, for a senior executive position of PAETEC, some or all of the above will be considered excessive salary. The Board can make such adjustments to their own salary when the CEO announces that they are no longer required.] The Employee’s Compensation system in order to meet this needs is designed to reduce the number of employees that PAETEC employees have under the supervision of the Company and to eliminate the amount of paid time off the employee must take. The PAETEC Board also sets a minimum percentage rate for the total time that a PAETEC employee must spend on the work. This includes time spent sitting in on board meetings working on issues. [This means employees who are not PAETEC employees don’t get paid time off to sit with other employees. They pay the amount listed under the Payroll section before determining the percentage rate.] The Compensation System and Employee’s Compensation system at PAETEC is designed to work together to support an organization. Employees need a basic set of procedures to ensure that a well-run organization is based upon an equitable distribution of pay. A great example of the Employee’s compensation system would be a group plan that is intended to provide a minimum level of service to its employees. One example of a group plan is the Employee’s Plans or 401(k) plans. [P]eople are given the option of either using the Employee’s Plans with benefits or using the plan’s pay schedule as a proxy to determine an employee’s participation in the workplace.