Organizational Behavior Analysis:

Verizon and AT&TJorge Cardenas, Rick Farmer, Leslie Menard, and Leslie Morgan

OLCU 613 Seminar in Organizational Dynamics

February 24, 2011

Verizon Communications, Inc.

• Based in New York

• Wireline, wireless communications

• Broadband Internet

• Fiber-optic communications, information and entertainment

• Formed in 2000 from a merger

• Bell Atlantic Corp. and GTE Corp.

AT&T, Inc.

• Based in Dallas, Texas

• Formed in 1997 from four other entities

• Added BellSouth, Cingular Wireless, YP.com, and AT&T Corp.

• Mobile broadband and broadband Internet

• IP-based television and communications

• Wi-Fi and wireless communications

Organizational Behavior

• Assessed against four areas:

• Employee Motivation

• Internal and External Communication

• Power Bases and Power Structures

• Organizational Culture

• Organizations similar in structure

• Organizations differ in products and culture

Motivation

Verizon

• Interview – employee felt valued

• Tiered compensation structure

• Leadership training and employee development

AT&T

• Interview – employee did not feel valued

• Tiered sales but competitive environment

• Luke Wilson motivational speech

Communication

Verizon Communications, Inc.

• Formal

• Memos, meetings, press releases, etc.

• Informal

• Blogs, email, text messaging, social media

• Thinkfinity

• Extensive website offering database resources and teaching aids for K-12.

AT&T, Inc.

• Formal

• Memos, meetings, press releases, etc.

• Informal

• Blogs, email, text messaging, social media

• Aspire

• Contribution to preventing high school dropouts

Power Bases

Verizon Communications, Inc.

• Reward

• LEAD program

• Referent

• Shifting leadership

• Legitimate and Expert

• Flat organizational structure

• Coercive

• Unknown

AT&T, Inc.

• Reward

• Varied benefit packages

• Referent

• Frequent leadership changes

• Legitimate and Expert

• Flat organizational structure

• Coercive

• Unknown

Culture

Verizon

• Respect

• Diversity

• Inclusion

• Individual rewards

• Organization sees “crisis and change as opportunity, not threat”

AT&T

• Teamwork with an emphasis on sales

• Morale issues

• Tiered recognition de-emphasizes individual effort

Conclusions and Recommendations

• Verizon:

• Individual recognition

• Training and leadership skills

• Communications carry value and meaning

• Rework executive compensation structures

• AT&T

• Increase individual rewards

• Place higher value on human capital

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Verizon Communications. (2009, October 5). Verizon announces restructuring focused on growth acceleration and productivity enhancement. Retrieved February 14, 2011, from Verizon: http://newscenter.verizon.com/press-releases/verizon/2009/verizon-announces.html

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