Does at&T Inc. Culture Need Improvement

Does AT&T Inc. Culture Need Improvement?

AT&T is one of America's largest employers and the largest private-sector employer of full-time union labor. The company is the top U.S. provider of next-generation TV services, wireless, high speed Internet access, Wi-Fi, local and long distance voice, and directory publishing and advertising services. AT&T is also recognized as the leading worldwide provider of IP-based communication services to businesses. The company’s mission is to connect people with their world, everywhere they live and work, and to do it better than anyone else. In March of 2008 AT&T was announced as America’s Most Admired Telecommunications Company. AT&T has topped the America’s Most Admired list for industry in 10 of the past 13 years. “..The best name in the business, once again, has the best reputation. The new AT&T is leading the way into a new era of integrated communications and entertainment services…” said Randall Stephenson, chairman and chief executive officer of AT&T Inc, during the conference call held in March of 2008. A month later, in April of 2008, AT&T has announced workforce reductions that were part of the next step in streamlining the operations. Approximately 1.5 percent of 310,000 employees were affected. In December of 2008 AT&T announced elimination of additional 12,000 management and non-management jobs across the company which counted for about 4 percent of the workforce. I work for AT&T as a Senior Financial Analyst in Mass Markets Operations Support department. For the past two years, I participated in the planning and execution of Management Sales Compensation and Union Sales Incentives initiatives. I joined AT&T in August of 2004. Before I joined the company, AT&T offered great benefits such as free health plans, 100 percent tuition reimbursement, very rich management bonuses and competitive performance incentives. Things have changed for bad right before I started working for the company. Currently, company offers tuition reimbursement up to the tax-deductible limit, management bonuses are below 100 percent and health plans are not free anymore. A lot of employees have lost interest in keeping their jobs due to the constant changes and uncertainty, therefore a lot of experienced managers and reps resigned and joined AT&T competitors such as Comcast, Verizon or Sprint. According to my OCI results AT&T’s primary style is Dependent with the greatest percent score of 97%. Dependent style belongs to Passive/Defensive styles. The result revels that company’s primary expectation is that the employees do only what they are told to do and they have to get the approval from their supervisors on any decisions they want to make. This kind of behavior is called micromanaging which is always counterproductive and de-motivating the employees. The secondary AT&T culture style with the subsequent OCI greatest percent score is Conventional with 95% score. Conventional style as well as Dependent belongs to Passive/Defensive styles. Organization with this type of culture has clear performance expectations for meeting the requirements by setting up the individual goals. Employees have to adhere to the rules set by the company. Members of organizations with Dependent type of culture are required to accept goals without questioning them, do what is expected even when they know that it is wrong, get higher management approval before acting and please those in positions of authority. Members of organizations with Conventional culture follow the rules, policies and practices, tell people different things to avoid conflict, make a good impression, cast aside solutions that seem risky. Conventional norms are similar to Dependent, because they both encourage employees to follow rather than lead. “…No one wants a manager, but everyone wants a leader. If you think about it, there are great world leaders, but no great world managers…” (Gitomer, 1995, p. 27) According to Peter Coffee, “…enterprise managers need to lead by example. The role of every employee in treating information as an asset must be stated explicitly, monitored thoroughly, and rewarded promptly and conspicuously when faithfully performed. Technology can’t do that; only good management can…” (Coffee, 2006, p. 43) As I stated before, for the past two years I participated in the planning and execution of management sales compensation and union sales incentive initiatives. The organization unit I work for is very micromanaging. I am not allowed to make any decisions which are a part of my traditional duties. All decisions require my manger’s approval as my boss would not trust me or my co-workers on doing a good job on our own. She sets all the priorities by setting up a timeline on monthly basis with the tasks that need to be completed and if we want to retain a good relationship with her it’s the best if no one will question them or provide any ideas. My manager treats rules as more important than ideas. It would be appropriate for my manager to closely supervise employees if they are working for the first time in their lives, but mature, competent, trustworthy employees perform at their best when they have a great deal of trust and freedom extended to them. I believe she does not even have qualifications to manage or lead, because anyone with an education who is productive and intelligent would not want to deal with it. My boss has to sign off on every document and communication emanating from her team. Also, once in a while she likes to walk around the company to check up on employees as if she would not trust them. More, she has to attend every meeting that anyone on our team attends and she does all the talking. What hurts me the most is that she gains personal recognition for work done by others including me. According to Ziglar’s Golden Rule: “…do unto others as you would have others do unto you…” (Ziglar, 2006, p. 201) In other words, managers should threat their employees as they would like to be treated themselves. Workers will imitate how managers work, so managers shouldn’t do anything that they would want employees to do. For example, if managers give employees a new automation tool, they should also use it themselves. If managers teach employees a new prospecting strategy, they should also make sure they will employ it as well. “…Today's leaders need to transition from commanding and controlling the "troops" to creating inspiring, high-performance and highly adaptive corporate cultures. All over the world, teams of senior executives need to tackle a tough new leadership leaming curve and take on a radically different set of competencies. In fact, they need to consider a whole new leadership agenda…” (Gibson, 2003, p. 32) Good manager should maintain high standards, demonstrate respect and support for the people he/she supervises and encourage and listen to their employees instead of just simply managing them. In addition, manager should be leading by example. “…Don't tell someone to do something. Show someone how to do something and provide the support and training to get it done… (Gitomer, 1995, p. 27) Wouldn’t be easier and more convenient if the employees would be able to make the decisions that impact their work? It would allow the manager to work on more serious issues that would ultimately make the company even more successful. In addition, the manager would have more time for changing the procedures and refining the processes which is highly recommended during today’s economy. “…People invest more in their work when they believe that their contributions are valued and they share in the reward of a job well done. It's vital that your team members feel as though their opinions matter and they have a stake in your company's success. Keep them motivated by discovering what's truly important to them and incorporating that into your business plan…” (Woller, 2009, 124) “…As manager and leader, if you demonstrate that you trust, respect and support your people and are worthy of their trust, respect and support, the rest of the team may follow naturally. Trust leads to trust, respect leads to respect, and support leads to support…” (Rotella & McLean, 2006, p. 31) The weakest style of AT&T’s culture is Affiliative with the lowest score of 5% and this kind of culture belongs to the Constructive styles. According to the results company does not place a high priority on employees to work as team players. A lot of times members are very controlling and dishonest. They think only about themselves and their only goal is to survive. Material things mean more to them than good relationship with the people. In order for employees to be better team players, the author of Be a Better Team Player recommends employees to be honest to their managers and co-workers about everything that is going on at work, do not order people around and keep the situation under control when upset by certain situation. Employees should not show their temper that could make the other workers very uncomfortable. “…Promote teamwork by fostering communication. All business models and strategies are unproven until they're tested. Your team members are experts in their areas. Allow them to collectively improve your business acumen by sharing success stories and new strategies. Developing and testing unique solutions bands people together and makes your team stronger…” (Woller, 2009, p. 124) AT&T should improve in Affiliative and Humanistic-Encouraging organizational cultures as these are the two weakest styles associated with the company according to the OCI survey results. Both of these styles belong to the Constructive cluster and are evident in environments where quality is valued over quantity. Both Affiliative and Humanistic-Encouraging cultures at AT&T scored the lowest, which means that company puts more value on quantity rather than quality. Members at the AT&T are not supportive or helpful to others which makes certain employees dissatisfied and not committed to the organization. “…Feedback is one of the most powerful tools a manager has to influence performance...” (Forte, 2009, p. 1) “…Managers must be watching to catch employees doing great things and then provide positive feedback to sustain the performance. They also must watch to catch problems as they occur, to use the teachable moment to help the employee improve and develop stronger skills in order to respond better next time. Feedback is the way to guide, coach and educate employees to improve or sustain performance...” (Forte, 2009, p. 1) “…Employees don’t want to be told what to do or to be scolded. They want meaningful information to help them improve…” (Forte, 2009, p. 1) Due to the money savings in a past few years, the company closed thousands of jobs and cut lots of employee benefits. When company announced layoffs in April of 2008, I have lost 4 members on my team. Two of my co-workers and I had to pick up their work on top of our own responsibilities. It’s been eight months and my co-workers and I spent a lot of unpaid overtime hours during these months in order to meet the deliverables. None of our team members were even recognized by our manager for the work we have done. At this point I lost interest and motivation working for this company. Unhappiness with management or cheap benefits affects employee turnover most. The factoid is that when it comes to bosses and companies, people leave bosses, not companies. The reason AT&T’s Affiliative and Humanistic-Encouraging cultures scored the lowest is because the company’s managers are not supportive and encouraging of others, they do not help employees to grow and develop and do not show concern for people. In addition, most of the time managers at AT&T do not involve others in decisions affecting them. This kind of behavior has a negative influence on their employees. According to Peter B. Stark in How to Involve Others in Decision Making “…over the last several years, PBS & Associates has surveyed the opinions of over 20,000 employees in companies throughout the United States. Some of the companies we have surveyed have referred to their employees as "employees." Other organizations have referred to their employees as "associates," "staff members," or "team members." What we have learned is that there is not much correlation between how a company or department refers to their "employees" and overall employee satisfaction. However, there is a direct correlation between how involved employees are in the decision making in their department or team and their overall morale, motivation, and satisfaction with their jobs. Companies and departments with a higher level of employee involvement in decision making show higher levels of employee motivation and satisfaction…” (Stark, 1998, p. 318) Due to the recent economy, almost all companies are cutting the employee benefits to minimize the layoffs. Recently I have had a conversation with my manager from which I have learned that I might not receive the salary increase this year due to receiving the tuition reimbursement. Yet, I was advised by her that I should remember that the tuition reimbursement is considered as part of my salary. Does this mean that managers who did not complete their education and are not working towards that should get higher payouts, even when our performance is the same? I believe my manager is wrong and I should not be disadvantaged among the other employees just because I am receiving the tuition aid. As Zig Ziglar is writing in his book “…invest in people and you’ll be investing in the “better than good” life. And the returns will be greater than you can imagine…” (Ziglar, 2006, p. 201) In today’s economy, the companies are looking for knowledgeable employees to drive their revenue and meet or exceed the expected quotas. I think what my manager said was very discouraging and it made me believe that AT&T Company does not care about retaining their best, educated and experienced employees. If company continues to take advantage of their employees and cut their benefits to the minimum, in short period of time people will loose interest working for this company. AT&T is going to loose their most valuable assets which are their experienced and educated employees. According to the OCI results, the greatest difference between percents in my organization’s current score and ideal score is in both Humanistic and Conventional cultures. Humanistic gap is positive 77% and Conventional gap is negative 77%. Both cultures had the greatest scores and were identified as my organization’s targets for cultural change. The Humanistic culture’s ideal score is 85%. AT&T scored only 8% in this category, which means that AT&T should improve their member relationships. In order to complete that AT&T managers should involve others in decisions affecting them and be supportive of them. Employees should be rewarded for their good work which would encourage them and motivate, and finally keep their interest working for this company. “…When you write out a brief note to someone commending him for an action, trait, or accomplishment, you make his day... ” (Ziglar, 2006, p. 194) “…It only takes a minute to encourage someone to “Keep up the good work!” I find that leaving these kinds of notes does as much for me as it does for the person I am encouraging... ” (Ziglar, 2006, p. 195) “…Consider making it a daily goal: write one short note, or at least offer a spoken word, to someone each day – especially to a person who is not in a position to return the favor. But even if it is at work, where notes of encouragement can be interpreted the wrong way in this hypersensitive age, figure out a way to be an encourager. You never know who you might be pulling up to the next rung on the ladder to achieving the “better than good” life…” (Ziglar, 2006, p. 195) Motivated and energized employees drive higher results and create an even more positive work environment. “…Because growth is like the proverbial food chain, everyone is a little further along than someone else. That means you can be a resource, advisor, mentor, or influencer to those younger or less mature than yourself – if you will invest the time and energy in doing so. The authors of “How Full is Your Bucket?” reviewed more than ten thousand businesses and more than thirty industries and discovered the following: • Individuals who receive regular recognition and praise increase their productivity and stimulate increased engagement among their colleagues. These employees are more likely to stay with the organization, receive higher loyalty and satisfaction scores from customers, and have better safety records and fewer accidents on the job. • More than twenty-two million workers in America are extremely negative or actively disengaged at work, lowering productivity. • Sixty-five percent of Americans received no recognition in their workplace the year prior to publication of the book. • Nine out of ten people said they are more productive when they’re around positive people. If you are a business owner, manager, or leader at any level, I hope you saw in those findings some action points to pursue. Part of your purpose in life is to build strong and fruitful relationships with others, and your work setting is a perfect place to start... ” (Ziglar, 2006, p. 193-194) The second highest cultural gap at AT&T is its Conventional culture and according to my OCI results its ideal score is 18%. AT&T scored 95% percent in Conventional culture category, which is way too much comparing to the standards. The company needs to close this cultural gap by exploring new ideas on how to handle the business in 21st century, instead of sticking to the old policies and practices. AT&T members should be more open on different solutions even if they seem risky which will bring more innovation, help members to identify new and better ways of doing things and assume responsibility for their actions. It will also enable the organization to adapt to changes in its environment. People will feel more confident with their decision making and will lead the business instead of just following the orders. AT&T in order to see improvement requires a cultural change. To change a culture is a risk taking that is a consequence of different cultures clashing with each other. Culture change requires a lot of hard work, dedication, patience and a clear strategy. In order to make progress toward the goals the company needs to reward risk taking. Managers might see new opportunities and might accept the risks that go along with them. It takes trust on behalf of the managers to share information and communicate it with the employees so they are able to make good decisions. If they do not make good decisions, the managers need to coach them, retrain and/or move on to another decision. Sometimes it takes forgiveness on the part of managers if employees make a mistake. However, when employees are involved and mistakes are made, workers will demonstrate their commitment to learning and correcting problems so it never happens again. This kind of behavior results in employees who are dedicated, committed and who produce greater results. The risk of cultural change at AT&T might be destructive in incentives. To encourage all employees to work and function at the highest level of quality, the company must restructure their incentive programs in such a way that will also build higher levels of employee satisfaction. “…When companies put together incentive programs that fail, they’ve usually failed because the wrong element of the individual was animated and motivated to work harder. For example, many companies use workgroup programs as a way of incentive a group as opposed to an individual. This is fine, but realize that the group is still as strong as its weakest link. A group is penalized for one person’s inability to perform to expected levels. This in turn dis-incentive the rest of the group to outperform their previous performance. In many case the rest of the group conforms to an average level of performance with little or no hope of ever reaching the highest incentive levels…” (Antonio, 2004, p.1). Incentives help the company to motivate employee behavior, improve satisfaction and increase loyalty and commitment. On the other hand, reps might take the advantage of it and sell only for profit. Reps might not even believe in the product or service but they convince the customers to purchase them to get rewarded. If it turns out that customer did not like the product and never wanted it in the first place, the sale might turn against the company. AT&T must decrease the level of Dependent and Conventional cultures to prevent from conflicts and member dissatisfaction. Employees will feel more confident when involved in decision making and they feel a stronger bond of responsibility for making the decision. When felt as valued part of the team, they will raise their level of effort and commitment to ensure the AT&T’s success. Managers and supervisors should share all information with their employees that pertains to their job assignments. Otherwise, it is impossible for worker to make good and productive decisions when they do not possess accurate and timely information. If managers show their members that they believe in their ability to do the right thing, the employees will demonstrate their ability to make the most effective decisions. AT&T employees will find it easier to be motivated and satisfied with their jobs when they know they make a difference to the company success. AT&T Company must encourage diversity of ideas and active participation. When someone invests effort on a challenging project, manager should give them feedback in such a way that acknowledges the effort and suggests resources and ways to be more effective. It will provide opportunities for success as an individual and as a team. It will enable members to develop their capabilities and maximize their contributions. “…It’s more important to care about people than it is just to care for them…” (Ziglar, 2006, p. 196) However, these benefits must be weighed against the potential risks. The administrative performance might be weaken in cases when responsibilities are handled by unqualified staff. This might also open additional opportunities for corruption. Therefore, AT&T managers should be careful in assessing employees’ qualifications before allowing decision making. Yet, there might be a duplication of efforts in cases when there is more than one person in position of authority. Another risk of culture change might be increased ineffectiveness by extending complicated procedures. Culture change remains the most significant issue when developing new lean and innovative processes within the organizations. But if required in company, it must change in order to maintain a competitive environment. Companies with healthy, robust and engaging cultures record the highest growth compared to other organizations. AT&T is a large company with a strong and people savvy CEO. It takes many people to make it happen and carry out the orders, but ultimately it’s the “captain of the ship” that sets the direction. I found Organizational Culture Inventory tool very useful in determining AT&T’s lifestyles and culture differences comparing to standards. In addition, I learned that lifestyles have a great impact on organization prosperity and success. The results of the survey revealed that managers at AT&T should concentrate on improving the culture by focusing on their members’ development and satisfaction. I believe that AT&T has excellent and educated employees and the company needs to retain that most valuable asset and competitive advantage by taking some action. In times of constant change and uncertainty, leaders may struggle with ways to keep employees motivated. Also, employees may struggle to remain focused and productive. Over time, this environment may lead to employee dissatisfaction causing decreased productivity, loss of talent and increased absenteeism that might lead to force loss. Employees are more likely to stay when they have positive attitude toward the work environment. Motivated and energized employees drive results and create an even more positive work environment. It takes time and leadership from the top to effect culture change, but the results are well and truly worth it. Hard work built this company and hard work can build a positive future. “…It takes people who live a “better than good” life to create a “better than good” world. That’s the world you can help build if you’ll look to do it one act, one person, at a time…” (Ziglar, 2006, p. 213) AT&T will need to focus on what matters the most! The company needs to undertake some action and develop a strategy in order to attract and retain their valuable and greatest assets which are employees, and at the same time their customers. The best way to retain employees is to help them feel appreciated and valued by giving them good compensation and by looking for the best benefit package that they could get. Yet, by putting them on the spotlight and giving them credit for their great work. This will enable AT&T to be still considered as America’s Most Admired Telecommunications Company and become a top high performance organization.

Reference List
Antonio, V. (2004). Motivating People: Money Not Peanuts. Logic Success, 1. Retrieved February 12, 2009, from http://www.thelogicofsuccess.com/pay-performance-incentive.htm.

Be a Better Team Player -- By Focusing on Yourself. (2003, January). Library Mosaics, Retrieved February 12, 2009, from Academic Search Premier database.

COFFEE, P. (2006, August 14). Lead by example. eWeek, 23(32), 43-43. Retrieved February 16, 2009, from Academic Search Premier database.

Forte, J. (2009, March). give feedback, get performance. Supervision, 70(3), 3-4. Retrieved February 11, 2009, from Business Source Premier database.

Gibson, R. (2003, July). Rethinking the Leadership Agenda. (cover story). Financial Executive, 19(5), 30-34. Retrieved February 11, 2009, from Business Source Premier database.

Gitomer, J. (1995, March 31). Where management ends and leadership begins. Business Press, 7(48), 27. Retrieved February 11, 2009, from Regional Business News database.

Organizational Culture Inventory (OCI) – Online version (2009). Retrieved January 24, 2009, from http://www.survey-server2.com/ocikituniversity/oci_report.asp.

Rotella, S., & McLean, G. (2006, September). Building teams that win: Skills for managers. Pharmaceutical Representative, 36(9), 30-31. Retrieved February 16, 2009, from Academic Search Premier database.

Schermerhorn, J., Hunt, J., & Osborn, R. (2007). Organizational Behavior, 10th Edition. Wiley.

Stark, P. (1998, January). How to Involve Others in Decision Making. Innovative Leader, 7(1), 318. Retrieved February 11 2009, from http://www.winstonbrill.com/bril001/html/article_index/articles/301-350/article318_body.html.

Woller, R. (2009, February). Get team-focused. Entrepreneur, 37(2), 124-124. Retrieved February 15, 2009, from MasterFILE Premier database.

Ziglar, Z. (2006). Better Than Good. Intergrity® Publishers, Nashville.