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Case Analysis of Paetec Communications

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PAETEC 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



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