Case Study 5 PPT
GROUP 5
DALIDA, Johnssen B.
GO, Jonathan Charles
PEREZ, Shannen Nicole M.
RENGEL, Chelsea Lei B.
3 – BSBAMG3A
Case: AT&T CREDIT
CORP.*
Millions of clerical employees toil in the back offices of financial companies, processing applications, claims, and customer accounts on what amounts to electronic assembly lines. The jobs are dull and repetitive and efficiency gains minuscule – when they come at all.
That was the case with AT&T
Credit Corp. (ATTCC) when it opened shop in 1985 as a newly created subsidiary of American
Telephone & Telegraph Corp.
Based on Morristown, New
Jersey, ATTCC provides financing for customers who lease equipment from AT&T and other
A bank initially retained by
ATTCC
to process lease applications couldn't keep up with the volume of new business. ATTCC
President
Thomas C. Wajnert saw that the fault lay in the bank's method of dividing labor into narrow tasks and organizing work by function.
One department handled applications and checked the customer's credit standing, a second drew up contracts, and a third collected payments. So no one person or group had responsibility for providing full service to a customer.
“The employees had no sense of how their jobs contributed to the final solution for the customer,”
Wajnert says.
Unexpected Bonus
Wajnert decided to hire his own employees and give them
“ownership and accountability.”
His first concern was to increase efficiency, not to provide more rewarding jobs. But in the end, he did both.
In 1986, ATTCC set up 11 teams of 10 to 15 newly hired workers in a high-volume division serving small businesses. The three major lease-processing functions were combined in each team. No longer were calls from customers shunted from department to department. The company also divided its national staff of field agents into seven regions and assigned two or three teams to handle business from each region. That way, the same teams always worked with the same sales staff, establishing a
personal
DALIDA, Johnssen B.
GO, Jonathan Charles
PEREZ, Shannen Nicole M.
RENGEL, Chelsea Lei B.
3 – BSBAMG3A
Case: AT&T CREDIT
CORP.*
Millions of clerical employees toil in the back offices of financial companies, processing applications, claims, and customer accounts on what amounts to electronic assembly lines. The jobs are dull and repetitive and efficiency gains minuscule – when they come at all.
That was the case with AT&T
Credit Corp. (ATTCC) when it opened shop in 1985 as a newly created subsidiary of American
Telephone & Telegraph Corp.
Based on Morristown, New
Jersey, ATTCC provides financing for customers who lease equipment from AT&T and other
A bank initially retained by
ATTCC
to process lease applications couldn't keep up with the volume of new business. ATTCC
President
Thomas C. Wajnert saw that the fault lay in the bank's method of dividing labor into narrow tasks and organizing work by function.
One department handled applications and checked the customer's credit standing, a second drew up contracts, and a third collected payments. So no one person or group had responsibility for providing full service to a customer.
“The employees had no sense of how their jobs contributed to the final solution for the customer,”
Wajnert says.
Unexpected Bonus
Wajnert decided to hire his own employees and give them
“ownership and accountability.”
His first concern was to increase efficiency, not to provide more rewarding jobs. But in the end, he did both.
In 1986, ATTCC set up 11 teams of 10 to 15 newly hired workers in a high-volume division serving small businesses. The three major lease-processing functions were combined in each team. No longer were calls from customers shunted from department to department. The company also divided its national staff of field agents into seven regions and assigned two or three teams to handle business from each region. That way, the same teams always worked with the same sales staff, establishing a
personal