Báo cáo Nghiên cứu Paetec môn Organizational behavior| Đại học kinh tế quốc dân

lOMoAR cPSD| 58591236
NATIONAL ECONOMICS UNIVERSITY
SCHOOL OF ADVANCED EDUCATION PROGRAM
ORGANIZATION BEHAVIOUR REPORT
PAETEC CASE STUDY - GROUP 9
Course Instructor: Ms. Pham Thi Bich Ngoc Members Student Code Đào Ngọc Hiền (Leader) 11222195 Nguyễn Gia Khanh 11223004 Nguyễn Đăng Duy 11221664 Nguyễn Ngọc Mai 11224046 Nguyễn Thành Hưng 11222621 HANOI 2024 PEER EVALUATION Members Tasks Evaluation Đào Ngọc Hiền (Leader) - Research 10/10 - Report - Presentation Nguyễn Gia Khanh - Research 10/10 - Presentation lOMoAR cPSD| 58591236 Nguyễn Đăng Duy - Research 10/10 - Slide - Presentation Nguyễn Ngọc Mai - Research - Slide 10/10 Nguyễn Thành Hưng - Research 7/10 TABLE OF CONTENTS
A. INTRODUCTION.......................................................................................................................... ................ I. PAETEC’S
background...............................................................................................................................II. Strategies used to motivate employees in
PAETEC..................................................................................
B. CONTENT...................................................................................................................................... ................ I. Relevant
Theories....................................................................................................................................... . 1. Expectancy
Theory............................................................................................................................. .. 2. The Porter-Lawler
Model...................................................................................................................... 3. Human Relations management
theory..................................................................................................4. Maslow's Hierarchy of
Needs............................................................................................................... 5. Herzberg's Two-Factor
Theory............................................................................................................. 6. Equity
Theory....................................................................................................................................... 8. Social Learning
Theory......................................................................................................................... C. ANSWER
QUESTIONS:............................................................................................................................... D.
CONCLUSION............................................................................................................................... ................
I. Summary...................................................................................................................................... ................II. Implications and
Limitations...................................................................................................................... III.
Recommendations....................................................................................................................... .............. lOMoAR cPSD| 58591236 E.
REFERENCES................................................................................................................................... ............ lOMoAR cPSD| 58591236 A. INTRODUCTION I. PAETEC’S background
PAETEC Holding Corporation was a Fortune 1000 telecommunications company headquartered in
Perinton, New York, United States in 1998, by Arunas Chesonis.
In 2007 it merged with US LEC and then Cavalier Telephone Company and became a publicly traded
company, and in 2011 it was acquired by Windstream Communications.
PAETEC Communications is a broadband telecommunications firm providing local and
longdistance voice, data, and Internet services to business customers in over 80 markets in the United
States. Starting out with less than 20 employees, today, PAETEC has over 3,600 employees and $1
billion in revenues. Notably, PAETEC thrived amidst intensive industry layoffs.
Since its acquisition, PAETEC (also known as STARNET PAETEC) has been listed several times as
the provider of VOIP services to phone scammers. II. Case study
Arunas Chesonis, one of PAETEC's founders and its current chairman and CEO, has ensured that
PAETEC's values are upheld on a daily basis. PAETEC has four core values - "a caring culture, open
communication, unmatched service, and personalized solutions.” These values serve as a guide to
managers and employees and help to ensure that satisfied and committed employees provide
excellent service to customers.
Firstly, People-employees and customers-come first at PAETEC. In particular, Chesonis has always
maintained that PAETEC should take good care of its employees. His reasoning is that when a
company looks out for the well-being of its employees, employees will take good care of their
customers. Chesonis and PAETEC take good care of employees in multiple ways such as helping
them achieve a well-balanced work and family life, recognizing their contributions and
accomplishments, and encouraging open communication and organizational citizenship behavior.
Managers and employees are treated as equals and all employees are treated with respect. At
PAETEC, special perks for managers are kept to a minimum, and pay differentials between managers
and rank-and-file employees are relatively low. Chesonis, CEO himself is accessible to employees
and has been known to stroll around company headquarters in Fairport, New York, chatting with
employees, commending them on their achievements, and answering any questions they may have.
Secondly, recognizing employee accomplishments is taken quite seriously at PAETEC both through
special awards and annual bonuses. Maestro Awards are given to employees with significant
accomplishments and can vary from dinner for two to stock options. Exceptional employee
performance over time is recognized with the John Budney Award, worth approximately $5,000, that
could include a luxury vacation or a Rolex watch. Employees also receive bonuses based on their
own accomplishments and company performance.
Moreover, open communication and cooperation are highly valued at PAETEC and employees are
expected to voluntarily help each other out. Thus, 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 lOMoAR cPSD| 58591236
provide excellent service to their customers and are empowered to come up with new ideas to better
serve customers' needs. Chesonis shares information about the company with employees through
company-wide conference calls and responds to employees' questions and concerns.
Lastly, Chesonis - a devoted family man, valued the family and work-life balance of the employees.
Thus, employees receive paid time off work to take care of family emergencies and illnesses.
Holidays are celebrated with parties for employees, families, and customers. On Halloween,
employees' children can trick-or-treat in the office and employees dress up in costumes. Parties and
special outings are planned at various times during the year so that employees and their families can
relax and have fun together. Employees at PAETEC know that Chesonis and other managers care
about their well-being and, in turn, strive to provide excellent service to their customers and help PAETEC prosper and grow.
As a result, PAETEC has been a recipient of the American Business Ethics Award for midsize
companies and has been listed by the New York State Society for Human Resource Management as
the Best Large Company to Work for in New York State in 2009 and 2010. Summing up PAETEC's
philosophy, Chesonis has indicated that "Since our inception, we've believed a strong focus on the
needs of our employees and their families will ultimately translate into superior service and
performance for our customers. " B. CONTENT I. Relevant Theories 1. Expectancy Theory
Expectancy theory, proposed by Victor Vroom, suggests that individuals are motivated to act based
on their beliefs about the likelihood of achieving desired outcomes. The theory posits that motivation
is influenced by three key factors: expectancy, instrumentality, and valence. a. Expectancy:
Expectancy refers to an individual's belief that putting in effort will lead to successful performance.
It is the perception of the probability that effort will result in the desired level of performance. In the lOMoAR cPSD| 58591236
context of the Expectancy Theory, employees are motivated when they believe that their efforts will lead to good performance.
Expectancy is influenced by factors such as the individual's skills, abilities, past experiences, and the
availability of necessary resources and support. When individuals have high expectations, they
believe that their efforts will lead to successful performance. This belief increases their motivation
to put in the required effort and engage in behaviors that contribute to achieving their goals. Case Analysis:
PAETEC Communications effectively applies the expectancy theory to motivate and engage its
employees. The company establishes a clear link between employees' efforts, performance, and
rewards. By recognizing and rewarding employees for their accomplishments through special
awards, bonuses, and performance-based incentives, PAETEC creates an environment where
employees believe that their efforts and good performance will lead to desired outcomes, such as
recognition and financial incentives. This belief in the relationship between effort and performance
enhances employees' expectancy, leading to increased motivation and commitment. b. Instrumentality:
Instrumentality refers to an individual's belief that successful performance will result in desired
outcomes or rewards. It is the perception of the probability that good performance will lead to
receiving the expected rewards.
Instrumentality is influenced by the organization's policies, practices, and the perceived fairness of
the reward system. When individuals perceive a strong connection between performance and
rewards, they have high instrumentality. This perception increases their motivation to perform well
because they believe that their efforts will be recognized and rewarded appropriately. Case Analysis:
PAETEC reinforces instrumentality by providing clear communication about the relationship
between effort, performance, and rewards. Employees understand that their successful performance
will be acknowledged and rewarded through special awards, bonuses, and performance-based
incentives. This transparency and consistency in linking performance with desired outcomes
enhance employees' instrumentality, making them believe that their good performance will indeed
lead to the expected rewards. As a result, employees are motivated to put in effort and strive for high performance levels. c. Valence:
Valence refers to the value or attractiveness an individual places on the expected rewards or
outcomes. It is the subjective importance or desirability of the rewards associated with successful performance.
Valence is influenced by an individual's needs, preferences, and personal goals. Different individuals
may assign different levels of importance or desirability to the same reward or outcome. For
example, one employee may highly value financial incentives, while another may prioritize career lOMoAR cPSD| 58591236
advancement opportunities. The higher the valence of a reward, the more motivated individuals are to pursue it. Case Analysis:
PAETEC recognizes the importance of valence by offering a range of rewards and outcomes that
employees find valuable and desirable. The company's special awards, bonuses, and performance-
based incentives serve as significant motivators for employees. By aligning the rewards with
employees' needs and preferences, PAETEC enhances the valence of the rewards, making them more
appealing and attractive. This, in turn, increases employees' motivation and commitment to performing well.
Overall, PAETEC effectively applies the expectancy theory by establishing a clear link between
effort, performance, and rewards. The company's recognition programs, bonuses, and performance-
based incentives enhance employees' expectancy, instrumentality, and valence. As a result,
employees are motivated to put in effort, perform well, and achieve desired outcomes, leading to
higher levels of motivation and commitment within the organization.
2. The Porter-Lawler Model
The Porter-Lawler Model of motivation does not specifically emphasize the relationship between
effort, performance, and rewards. Instead, it focuses on the cognitive processes involved in
motivation and job satisfaction.
The Porter-Lawler Model, proposed by Lyman W. Porter and Edward E. Lawler, suggests that job
satisfaction is influenced by a series of cognitive processes that individuals go through when
evaluating their work experiences. These processes include:
● Inputs: Inputs refer to the individual's perceptions of their own abilities, traits, and
characteristics that they bring to the job. It also includes their perceptions of the job's
characteristics, such as the level of challenge, autonomy, and responsibility.
● Outcomes: Outcomes refer to the rewards or outcomes that individuals receive from their
job, such as pay, recognition, promotion, and job security.
● Comparison: Individuals compare their inputs and outcomes to those of others, both
internally (within the organization) and externally (outside of the organization). This
comparison helps them assess the fairness and equity of their work situation.
● Expectancy: Expectancy refers to the individual's belief that their efforts will lead to the
desired level of performance. It is similar to the expectancy factor in the Expectancy Theory discussed earlier.
● Instrumentality: Instrumentality refers to the individual's belief that their performance will
lead to desired outcomes or rewards. It is also similar to the instrumentality factor in the Expectancy Theory.
● Valence: Valence refers to the value or attractiveness an individual places on the outcomes
or rewards they receive. It is similar to the valence factor in the Expectancy Theory. lOMoAR cPSD| 58591236
According to the Porter-Lawler Model, job satisfaction is determined by the perceived fairness of
the input-outcome relationship and the degree to which individuals feel they have control over their
work outcomes. When individuals perceive a fair balance between their inputs and outcomes and
have a sense of control over their work, they are more likely to experience higher job satisfaction.
In the case of PAETEC Communications, the company effectively applies the principles of the
Porter-Lawler Model to motivate and engage its employees. By recognizing and rewarding employee
contributions and achievements through special awards, bonuses, and performance-based incentives,
PAETEC establishes a clear link between employees' efforts, their performance, and the rewards they receive.
This transparent approach fosters a sense of fairness and equity among employees. They perceive
that their hard work and performance are directly connected to the rewards they receive. This
perception of a fair input-output relationship is crucial in motivating employees and enhancing their job satisfaction.
Moreover, PAETEC's emphasis on performance-based incentives aligns with the instrumentality
aspect of the Porter-Lawler Model. Employees believe that their successful performance will lead to
desired outcomes or rewards, such as recognition and financial incentives. This perception of
instrumentality further motivates employees to strive for excellence and contribute to the organization's goals. lOMoAR cPSD| 58591236
By implementing the principles of the Porter-Lawler Model, PAETEC creates an environment that
promotes motivation, job satisfaction, and commitment among its employees. The clear link between
effort, performance, and rewards provides employees with a sense of control over their work
outcomes, which is a significant factor in job satisfaction.
Additionally, the emphasis on recognition and rewards demonstrates that PAETEC values and
appreciates its employees' efforts. This recognition enhances employees' self-esteem and reinforces
their motivation to maintain high performance levels.
Overall, by aligning with the Porter-Lawler Model, PAETEC Communications effectively motivates
and engages its employees, leading to higher levels of job satisfaction, commitment, and
performance. The model's focus on fairness, transparency, and the connection between effort,
performance, and rewards creates a positive work environment that fosters employee motivation and organizational success.
3. Human Relations management theory
The Human Relations Management Theory originated from the Hawthorne Studies conducted by
Elton Mayo and his colleagues in the 1920s and 1930s. These studies highlighted the impact of social
interactions, group dynamics, and employee attitudes on productivity. The theory emphasizes the following key principles:
● Employee Satisfaction: Recognizing and addressing the social and emotional needs of
employees can lead to increased job satisfaction and motivation.
● Effective Communication: Open and transparent communication channels facilitate
understanding, cooperation, and trust among employees and between employees and management.
● Leadership and Support: Managers who exhibit supportive leadership behaviors and provide
guidance and assistance can create a positive work environment and foster employee well- being.
Based on the provided information about PAETEC Communications, it is evident that the company
has implemented several elements of the Human Relations Management Theory.
Let's explore how PAETEC aligns with the theory's principles: a. Employee Satisfaction:
PAETEC places a strong emphasis on employee satisfaction by implementing various initiatives and
practices. Firstly, the company helps employees achieve a well-balanced work and family life,
recognizing the importance of their personal lives outside of work. This includes providing paid time
off for family emergencies and illnesses, allowing employees to take care of their families when
needed. By prioritizing work-life balance, PAETEC demonstrates its commitment to the well-being of its employees.
Additionally, PAETEC recognizes and rewards employee contributions and accomplishments. The
company has a robust recognition program in place, including special awards such as the Maestro
Awards for significant accomplishments, which can range from dinner for two to stock options.
Exceptional performance over time is further acknowledged through the John Budney Award, which lOMoAR cPSD| 58591236
offers substantial rewards such as luxury vacations or Rolex watches. These recognition initiatives
create a positive work atmosphere and reinforce employees' sense of value and appreciation. b. Effective Communication:
PAETEC values open communication and ensures that employees have access to company
information. Arunas Chesonis actively engages with employees by conducting companywide
conference calls, where he shares important updates and responds to employees' questions and
concerns. This transparent communication approach fosters understanding, builds trust, and enables
employees to stay informed about the company's goals, strategies, and progress. By promoting open
and transparent communication channels, PAETEC enhances cooperation, collaboration, and overall organizational effectiveness. c. Leadership and Support:
PAETEC demonstrates supportive leadership behaviors by treating managers and employees as
equals and fostering a culture of respect. Arunas Chesonis personally interacts with employees,
taking the time to stroll around the company headquarters, chat with employees, and commend them
on their achievements. This hands-on approach creates a positive and inclusive work environment,
where all employees feel valued and appreciated.
Moreover, PAETEC minimizes pay differentials between managers and rank-and-file employees,
ensuring that special perks for managers are kept to a minimum. This equal treatment and fair
compensation structure contribute to a sense of equity and fairness among employees, enhancing
their job satisfaction and commitment.
d. Organizational Citizenship Behavior:
PAETEC actively encourages organizational citizenship behavior by minimizing boundaries
between units and departments. The company values knowledge sharing and cooperation among
employees, recognizing that by voluntarily helping each other out, employees can collectively
achieve better outcomes. PAETEC empowers employees to come up with new ideas and solutions
to better serve customers' needs, fostering a culture of innovation and continuous improvement.
By promoting a collaborative and supportive work environment, PAETEC cultivates a sense of
ownership and commitment among employees. They are motivated to go above and beyond their
job descriptions, engaging in behaviors that benefit the organization as a whole, such as sharing
expertise and providing excellent service to customers. e. Employee Engagement:
PAETEC's values and practices contribute to high levels of employee engagement. The company
celebrates holidays with parties for employees, their families, and customers, fostering a sense of
community and camaraderie. Special outings are also organized throughout the year, enabling
employees and their families to relax and have fun together. These events create a positive and
enjoyable work environment, where employees feel connected and supported.
Furthermore, PAETEC's emphasis on employee well-being and work-life balance contributes to
higher levels of engagement. By recognizing the importance of employees' personal lives and
providing support, the company demonstrates a genuine care for its workforce. This care, in turn,
fosters a sense of loyalty and commitment among employees. lOMoAR cPSD| 58591236
In conclusion, PAETEC Communications effectively applies the principles of the Human Relations
Management Theory to create a satisfied and committed workforce. By prioritizing employee
satisfaction, promoting effective communication, providing leadership support, encouraging
organizational citizenship behavior, and fostering employee engagement, PAETEC has built a
positive work environment that values its employees and enables them to provide excellent service to customers.
4. Maslow's Hierarchy of Needs
Maslow's Hierarchy of Needs is a psychological theory proposed by Abraham Maslow in 1943. The
theory suggests that individuals have a hierarchical set of needs that they seek to fulfill. These needs
are arranged in a pyramid-shaped hierarchy, with basic physiological needs at the base and higher- level needs at the top.
The hierarchy consists of five levels:
● Physiological Needs: These are the most basic biological needs necessary for survival, such
as food, water, shelter, and sleep. They serve as the foundation of the hierarchy, and
individuals strive to fulfill these needs before moving on to higher-level needs.
● Safety Needs: Once physiological needs are met, individuals seek safety and security. This
includes physical safety, financial stability, job security, and protection from harm or danger.
● Belongingness and Love Needs: Once safety needs are satisfied, individuals have a need for
social belongingness and love. They seek acceptance, love, and meaningful relationships
with others, such as family, friends, and romantic partners.
● Esteem Needs: After fulfilling the need for belongingness, individuals strive for esteem
needs. This includes both self-esteem (confidence, self-respect) and the need for recognition
and respect from others. Esteem needs involve feeling competent, achieving goals, and
receiving acknowledgment for accomplishments.
● Self-Actualization: At the top of the hierarchy is the need for self-actualization. This refers
to the desire for personal growth, self-fulfillment, and realizing one's full potential. It
involves pursuing individual passions, engaging in creative activities, and seeking personal development.
According to Maslow, individuals progress through these needs sequentially. As lower-level needs
are satisfied, individuals move up the hierarchy to fulfill higher-level needs. However, the theory
also acknowledges that individuals may have simultaneous needs at different levels and that different
people can prioritize and satisfy these needs differently. lOMoAR cPSD| 58591236
PAETEC's emphasis on employee well-being and work-life balance addresses the foundational
physiological and safety needs outlined in Maslow's Hierarchy of Needs. By providing paid time off
for family emergencies and illnesses, PAETEC ensures that employees have the necessary support
to meet their basic physiological needs and feel secure in their employment.
The company's focus on recognizing and rewarding employee contributions and accomplishments
directly aligns with the esteem needs identified in Maslow's theory. Through initiatives like the
Maestro Awards and the John Budney Award, PAETEC acknowledges employees' achievements,
fostering a sense of self-worth and esteem. These recognition programs contribute to employees'
satisfaction and motivation, as they feel valued and appreciated for their work.
PAETEC's commitment to open communication and transparent leadership also aligns with
Maslow's theory. By conducting companywide conference calls and encouraging employees to ask
questions and voice concerns, the company creates a sense of belongingness and fosters positive
social connections. Employees feel included and informed, which promotes a supportive work
environment and a sense of community.
In addition to addressing the lower-level needs, PAETEC's practices also support higher-level needs,
such as self-actualization. By empowering employees to come up with new ideas and solutions,
PAETEC encourages creativity, autonomy, and personal growth. This focus on employee
empowerment aligns with Maslow's concept of self-actualization, where individuals strive to reach
their full potential and achieve personal fulfillment.
Overall, PAETEC's values and practices align with Maslow's Hierarchy of Needs theory by
addressing the various levels of needs that employees have. By providing a supportive work
environment, recognizing employee contributions, promoting open communication, and fostering
opportunities for personal growth, PAETEC contributes to employee satisfaction, commitment, and motivation. lOMoAR cPSD| 58591236
5. Herzberg's Two-Factor Theory
Herzberg's Two-Factor Theory, also known as the Motivation-Hygiene Theory or DualFactor
Theory, was proposed by psychologist Frederick Herzberg in the 1950s. The theory suggests that
there are two sets of factors that influence employee motivation and job satisfaction: hygiene factors
and motivators. According to Herzberg, organizations need to ensure the presence of both hygiene
factors and motivators to enhance employee motivation and job satisfaction. While hygiene factors
prevent job dissatisfaction, motivators promote job satisfaction and intrinsic motivation. a. Hygiene factors
PAETEC demonstrates a strong focus on addressing hygiene factors, which are essential for
preventing job dissatisfaction. Firstly, the company emphasizes fair compensation and rewards,
ensuring that employees' basic needs are met and contributing to their job satisfaction. Additionally,
PAETEC's commitment to employee well-being and work-life balance suggests that the company
values providing a positive and comfortable working environment. Such an environment can foster
job satisfaction and prevent dissatisfaction.
Moreover, if PAETEC maintains transparent and fair company policies, it would contribute to a
positive work environment. The establishment of positive interpersonal relationships is also evident,
as the CEO, Arunas Chesonis, personally interacts with employees. This fosters a supportive work
environment and strengthens job satisfaction. Although not explicitly mentioned, if PAETEC
provides stability and security in employment, it would address the hygiene factor of job security
and contribute to employee satisfaction. b. Motivators
PAETEC also demonstrates a commitment to providing motivators that enhance employee
motivation and job satisfaction. Firstly, the company focuses on achievement and recognition. The
Maestro Awards and the John Budney Award provide employees with opportunities to achieve and
be recognized for their accomplishments. This recognition fosters job satisfaction and motivates
employees to perform at their best. While the case does not explicitly mention employee
responsibility or autonomy, if PAETEC provides decisionmaking authority and autonomy in
employees' roles, it would address the motivator of responsibility. This autonomy empowers lOMoAR cPSD| 58591236
employees and contributes to their job satisfaction. Although not mentioned, if PAETEC offers
opportunities for career development and supports professional growth, it would address the
motivator of advancement and growth, enhancing employee satisfaction.
Furthermore, the emphasis on employee empowerment and encouraging new ideas suggests that
PAETEC values meaningful work. By allowing employees to make a difference and contribute to
the organization's success, PAETEC addresses the motivator of meaningful work, enhancing job satisfaction and motivation.
PAETEC Communications aligns with Herzberg's Two-Factor Theory by addressing both hygiene
factors and motivators to promote employee job satisfaction and motivation. The company's
emphasis on fair compensation, employee well-being, recognition, and empowerment creates a
supportive work environment that fosters employee satisfaction and commitment. By considering
and meeting employees' needs at both the foundational and higher levels, PAETEC promotes a
positive and motivating workplace culture. By applying Herzberg's Two-Factor Theory to analyze
PAETEC Communications, we gain insights into the company's practices and their impact on
employee satisfaction and motivation. This analysis highlights the importance of addressing both
hygiene factors and motivators to create a work environment that fosters employee well-being, engagement, and productivity. 6. Equity Theory
Equity Theory, proposed by J. Stacy Adams, focuses on the concept of fairness and equity in the
workplace. According to this theory, employees compare their inputs (effort, skills, and
contributions) and outcomes (rewards, recognition, and benefits) to those of their colleagues to
determine whether they are being treated fairly. By examining the case of PAETEC Communications
in light of Equity Theory, we can analyze how the company's practices align with the theory's
principles and their impact on employee perceptions of fairness. a. Equity in Compensation:
PAETEC Communications demonstrates a commitment to equity in compensation. The case
mentions that the company minimizes pay differentials between managers and rank-and-file
employees. By ensuring that compensation is fair and equitable across the organization, PAETEC
promotes a sense of fairness and reduces perceptions of inequity among employees. This approach
contributes to employee satisfaction and helps maintain a positive work environment. lOMoAR cPSD| 58591236
b. Perceptions of Input-Outcome Ratios:
Equity Theory posits that employees assess their inputs and outcomes in relation to those of their
colleagues. In the case of PAETEC, the company's recognition program, including the Maestro
Awards and the John Budney Award, acknowledges exceptional performance and provides rewards.
These initiatives help ensure that employees' efforts and contributions are recognized and rewarded
fairly. Employees who receive appropriate recognition and rewards for their inputs are more likely
to perceive equity in the workplace, leading to higher job satisfaction and motivation.
c. Transparency and Communication:
To maintain perceptions of fairness, it is crucial for organizations to communicate openly and
transparently. PAETEC demonstrates transparency by conducting companywide conference calls,
where the CEO shares important updates and addresses employees' questions and concerns. This
open communication approach helps employees understand the company's decision-making
processes, contributing to a sense of fairness and equity. By promoting transparency and providing
opportunities for employee input, PAETEC fosters an environment where employees perceive
fairness in the distribution of information and decision-making. d. Addressing Inequities:
Equity Theory suggests that employees who perceive inequities may take actions to restore balance.
While the case does not explicitly mention any grievances or inequities within PAETEC, the
company's commitment to fair compensation and recognition programs helps mitigate potential
perceptions of unfairness. By proactively addressing inequities and ensuring that employees' inputs
are appropriately rewarded, PAETEC reduces the likelihood of employees seeking to restore equity
through negative behaviors or lower job satisfaction.
PAETEC Communications aligns with Equity Theory by demonstrating a commitment to equity in
compensation, fair recognition, and transparent communication. The company's efforts to minimize
pay differentials and provide fair rewards contribute to employees' perceptions of fairness and equity.
By fostering an environment where employees feel that their inputs are recognized and rewarded
appropriately, PAETEC enhances job satisfaction and motivation. Moreover, the company's
transparent communication practices help maintain perceptions of fairness in decision-making.
Through these practices, PAETEC establishes a workplace that aligns with the principles of Equity
Theory and promotes a positive and equitable work environment for its employees. 7. Goal Setting Theory
Goal Setting Theory, proposed by Edwin Locke and Gary Latham, emphasizes the importance of
setting specific and challenging goals to enhance motivation and improve performance. This theory
posits that individuals are more likely to be motivated and perform better when they have clear,
specific goals that are challenging but attainable. a. Clear and Specific Goals:
PAETEC Communications recognizes the significance of clear and specific goals. The case does not
provide explicit examples of specific goals set by the company, but it highlights the presence of
recognition programs such as the Maestro Awards and the John Budney Award. These awards lOMoAR cPSD| 58591236
indicate that PAETEC establishes criteria for exceptional performance and recognizes employees
who meet or exceed those standards. By clearly defining what constitutes exemplary performance,
PAETEC sets specific goals that employees can strive to achieve, providing them with a sense of direction and purpose. b. Challenging Goals:
Goal Setting Theory emphasizes the importance of setting challenging but attainable goals.
PAETEC's recognition programs, such as the Maestro Awards and the John Budney Award, signify
that the company sets high standards for performance and achievement. These awards likely require
employees to go above and beyond their regular duties to receive recognition. By establishing
challenging goals, PAETEC motivates employees to stretch their abilities, fostering a sense of
achievement and personal growth. c. Feedback and Measurement:
Goal Setting Theory emphasizes the importance of providing feedback and measuring progress
towards goals. While the case does not explicitly mention feedback mechanisms, the presence of
recognition programs suggests that PAETEC assesses and evaluates employees' performance against
the established criteria. Regular feedback and measurement allow employees to gauge their progress,
identify areas for improvement, and adjust their efforts accordingly. By providing feedback and
measuring progress, PAETEC enables employees to stay on track and make necessary adjustments to achieve their goals. d. Goal Commitment:
Goal Setting Theory suggests that goal commitment is essential for motivating individuals to work
towards their goals. PAETEC's recognition programs, such as the Maestro Awards and the John
Budney Award, likely foster goal commitment among employees. When employees see that their
exceptional performance is recognized and rewarded, they are more likely to be committed to
pursuing their goals and investing effort in achieving them. The presence of these recognition
initiatives indicates that PAETEC values and supports employees' commitment to achieving high levels of performance.
PAETEC Communications aligns with Goal Setting Theory by emphasizing clear and specific goals,
setting challenging targets, providing feedback and measurement, and fostering goal commitment.
The company's recognition programs indicate that PAETEC establishes specific criteria for
exceptional performance, motivating employees to strive for excellence. By setting challenging but
attainable goals, PAETEC encourages employees to stretch their capabilities and achieve personal
growth. Regular feedback and measurement allow employees to track their progress and make
necessary adjustments. Through these goalsetting practices, PAETEC enhances employee
motivation and performance, contributing to the overall success of the organization.
8. Social Learning Theory
Social Learning Theory, developed by Albert Bandura, emphasizes the role of observational learning
and social interactions in shaping human behavior. This theory posits that individuals learn not only
through direct experiences but also by observing and modeling the behavior of others. By examining
the case of PAETEC Communications through the lens of Social Learning Theory, we can analyze lOMoAR cPSD| 58591236
how the company utilizes social learning processes to influence employee behavior, develop skills,
and foster a positive work culture. a. Observational Learning:
PAETEC Communications recognizes the power of observational learning by providing employees
with opportunities to observe and learn from others. The case mentions that the CEO, Arunas
Chesonis, actively engages with employees through companywide conference calls, where he shares
important updates and addresses their questions and concerns. This direct interaction allows
employees to observe the behavior and leadership style of the CEO. By witnessing Chesonis's
communication skills and approachability, employees can model these behaviors and apply them in
their own interactions with colleagues and customers. b. Modeling Behavior:
Social Learning Theory highlights the significance of modeling behavior as a means of learning.
PAETEC exemplifies this principle by fostering a culture of recognition through initiatives such as
the Maestro Awards and the John Budney Award. These recognition programs provide employees
with concrete examples of exceptional performance and behaviors that are valued by the
organization. By highlighting and celebrating these behaviors, PAETEC encourages employees to
model them, leading to the diffusion of positive behaviors throughout the organization.
c. Skill Development through Mentoring:
PAETEC Communications understands the value of mentorship in skill development. The case does
not explicitly mention formal mentoring programs, but it highlights the CEO's hands-on approach
and his personal interactions with employees. This approach creates opportunities for informal
mentoring, where employees can seek guidance and learn from the expertise and experiences of
Chesonis. By promoting informal mentorship and knowledge sharing, PAETEC facilitates skill
development and professional growth among its employees. d. Positive Work Culture:
Social Learning Theory emphasizes the importance of the social environment in shaping behavior.
PAETEC cultivates a positive work culture by organizing events such as holiday parties for
employees, their families, and customers. These events provide opportunities for employees to
interact in a relaxed and social setting, fostering positive relationships and a sense of camaraderie. lOMoAR cPSD| 58591236
By creating a positive work culture, PAETEC influences employee behavior and attitudes, promoting
collaboration, cooperation, and a supportive work environment.
e. Reinforcement and Feedback:
Social Learning Theory suggests that reinforcement and feedback play a crucial role in learning and
behavior change. While the case does not explicitly mention feedback mechanisms, the presence of
recognition programs like the Maestro Awards and the John Budney Award indicates that PAETEC
provides feedback and reinforcement for exceptional performance. By recognizing and rewarding
employees for their achievements, PAETEC reinforces desired behaviors and motivates employees to continue exhibiting them.
PAETEC Communications aligns with Social Learning Theory by emphasizing observational
learning, modeling behavior, skill development through mentoring, fostering a positive work culture,
and providing reinforcement and feedback. The company recognizes the power of observation and
modeling by providing employees with opportunities to observe and learn from the CEO's behavior.
PAETEC also fosters a positive work culture through social events, encouraging positive
relationships and cooperation. By promoting mentoring and informal learning, PAETEC facilitates
skill development among employees. Through these social learning processes, PAETEC shapes
employee behavior, fosters a positive work environment, and contributes to the overall success of the organization. C. ANSWER QUESTIONS:
1. What values does Chesonis emphasize at PAETEC?
Chesonis emphasizes several values at PAETEC, including a caring culture, open communication,
unmatched service, and personalized solutions. These values guide the behavior and actions of
managers and employees at PAETEC and are intended to ensure that employees are satisfied and
committed to providing excellent service to customers.
One theory that can be applied to explain the values emphasized by Chesonis is the Human Relations
Management theory. This theory emphasizes the importance of fostering a positive work
environment and establishing strong relationships between managers and employees. Chesonis
prioritizes a caring culture and treats managers and employees as equals, ensuring that all employees
are treated with respect. By creating a supportive and respectful work environment, Chesonis aims
to enhance employee satisfaction, motivation, and commitment, which can ultimately lead to better
customer service and organizational success.
Furthermore, Chesonis recognizes the significance of open communication. He shares information
about the company through companywide conference calls and responds to employees' questions
and concerns. This emphasis on open communication aligns with the principles of the Human
Relations Management theory, which advocates for effective communication channels within an
organization to foster trust, collaboration, and employee engagement. lOMoAR cPSD| 58591236
In summary, Chesonis's emphasis on a caring culture, open communication, and the values of
unmatched service and personalized solutions at PAETEC align with the principles of the Human
Relations Management theory. By prioritizing positive relationships, respect, and effective
communication, Chesonis aims to create a work environment that promotes employee satisfaction,
engagement, and ultimately, superior service to customers.
2. What factors likely contribute to employee job satisfaction at РАЕТЕС?
Several factors likely contribute to employee job satisfaction at PAETEC:
1. Caring culture and employee well-being: PAETEC places a strong emphasis on taking care
of its employees. The company helps employees achieve a well-balanced work and family
life, recognizes their contributions and accomplishments, and provides paid time off for
family emergencies and illnesses. This focus on employee well-being aligns with Maslow's
Hierarchy of Needs theory, which suggests that satisfying employees' basic needs, such as
social and esteem needs, contributes to their overall job satisfaction.
2. Recognition and rewards: PAETEC has a robust system of recognizing employee
accomplishments through special awards, annual bonuses, and performance-based rewards.
This recognition and rewards system is in line with Herzberg's Two-Factor Theory, which
suggests that factors like recognition and achievement contribute to employee motivation and job satisfaction.
3. Open communication and cooperation: PAETEC values open communication and
cooperation among employees. Boundaries between units and departments are minimized,
and employees are encouraged to share their expertise and knowledge with each other. This
emphasis on open communication and cooperation supports the principles of the Human
Relations Management theory, which emphasizes positive relationships and effective
communication for fostering employee satisfaction and engagement.
4. Empowerment and autonomy: Employees at PAETEC are empowered to come up with
new ideas to better serve customers' needs. They are expected to provide excellent service
and are given autonomy to make decisions. This empowerment aligns with the principles of
the Expectancy Theory, which suggests that employees are motivated and satisfied when they
believe their efforts will lead to desired outcomes and when they have control over their work.
5. Work-life balance and family-oriented activities: PAETEC recognizes the importance of
employees' families and their lives outside of the workplace. The company provides paid
time off for family emergencies and illnesses and organizes parties and special outings for
employees and their families. This emphasis on worklife balance and family-oriented
activities supports the idea of meeting employees' higher-level needs, such as social and self-
fulfillment needs, as proposed by Maslow's Hierarchy of Needs theory.
In summary, the factors contributing to employee job satisfaction at PAETEC include a caring
culture, recognition and rewards, open communication and cooperation, empowerment and
autonomy, and work-life balance. These factors can be explained and understood through theories
such as Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory, Human Relations
Management theory, and Expectancy Theory. lOMoAR cPSD| 58591236
3. What type of organizational commitment do you think might be prevalent amongPAETEC employees and why?
Organizational commitment refers to the degree of attachment and loyalty that employees feel
towards their organization. It reflects the extent to which employees identify with and are dedicated
to their organization's goals, values, and objectives.
PAETEC employees likely exhibit these types of organizational commitment:
● Affective Commitment: In the case of PAETEC, affective commitment is evident through the
strong emotional attachment and identification that employees feel towards the organization.
This emotional bond is fostered by the company's emphasis on creating a caring culture, open
communication, and recognizing employees' contributions. For instance, the CEO, Arunas
Chesonis, personally engages with employees, recognizes their achievements, and ensures a
supportive work environment. This aligns with Human Relations Management Theory,
which emphasizes meeting employees' social and psychological needs to enhance their
motivation and commitment. Furthermore, the company's initiatives like the Maestro Awards
and John Budney Award provide intrinsic rewards for employees' accomplishments,
enhancing their job satisfaction and affective commitment. This is supported by suggests that
there are two sets of factors that influence employee motivation and job satisfaction: hygiene
factors and motivators. In PAETEC’s case, the motivators aspect is emphasized.
● Continuance Commitment: Continuance commitment at PAETEC is driven by employees'
perceived costs associated with leaving the organization. The company's efforts to provide
competitive compensation, benefits, and opportunities for personal and professional growth
contribute to employees feeling a sense of obligation to stay. This aligns with Victor Vroom's
Expectancy Theory, which suggests that individuals are motivated to act based on their
beliefs about the likelihood of achieving desired outcomes. Here, employees perceive staying
with the organization as beneficial due to the rewards and recognition they receive for their
efforts. Additionally, the equitable treatment of employees, as reflected in the minimization
of pay differentials and the emphasis on fairness, supports Equity Theory, fostering
continuance commitment by reducing perceived inequities and costs associated with leaving the organization.
● Normative Commitment: Normative commitment among PAETEC employees stems from a
sense of duty and loyalty to the organization. Employees feel obligated to stay with PAETEC
because they believe it is the right thing to do. This sense of duty is cultivated by the
company's emphasis on fairness, recognition, and creating a supportive work environment.
PAETEC's commitment to minimizing pay differentials, providing opportunities for
recognition, and maintaining open communication fosters a culture where employees feel
valued and respected, aligning with Equity Theory, which proposes that employees compare
their inputs (effort, skills, and contributions) and outcomes (rewards, recognition, and
benefits) to those of their colleagues to determine whether they are being treated fairly. On
top of that, this point can also be supported with the Human Relations Management Theory,
which emphasizes the importance of fostering a positive work environment and establishing
strong relationships between managers and employees. Moreover, the CEO's accessibility
and personal engagement with employees reinforce the sense of loyalty and obligation to the
organization, as employees perceive PAETEC as an employer that cares about their well-
being, offering initiatives such as paid time off for family emergencies, maintaining a caring