VERIZON

COMMUNICATION INC
ANUBHAV ANAND
KATYAYINI KESHARWANI
SHAMBHAWI SINHA
FORMATION OF VERIZON
• Telecom Act – Feb 1996 – Deregulated telecom industry
• 21st-century communication firm that was created via a merger of
GTE and Bell Atlantic.
• Annual revenue : 60 bn $
• Employees : 260,000
• Wireline voice , wireline services , data services , print and electronic
directories
• Head HR : Randall MacDonald
Changes after formation
• Domestic Strategy – to offer complete bundle of high growth
telecommunication services
• Creation of national sales and marketing organization
• Projection of revenue growth – 10% which increased from 2 %
• 2 major problems – customer turnover and employee turnover
• Customer service declined – tight labour market was responsible
• HR department – involved in people issues
• HR employees – costs
• Need for quantitative model – Balanced scorecard
Review Process
• After 6 months , changes in strategy were making measures useless
• Company changed earning estimates due to changing environment
• So quarterly review process – HR Team will meet business unit leaders
• Process – Useful measures , Appropriate targets
Financial Payoffs
• Reducing separation rate
• Reducing absence rate
• Other linkages
Reducing Separation Rate
People rated effective didn’t leave organization
Cost of replacing supervisor > Cost of replacing non-exempt
employees
Conducted exit interviews – work environment , computer equipment
, pay , competence levels
Actions :Upgradation of workplace , Job share programs
Reducing Absence Rate
Problem – Absence rate
2 levels – Drilling down data , Management attitude
Drilling down data : Focus on areas where absence rate was high
Management attitude :
• Judgmental attitude : Not performing well so left job
• Real life problems
• Actions : Employee assistance programs , talking to employees
Other linkages
• PMA group – link people issues and operational and financial issues
• Employee Engagement Index
• Improvement in Employee Engagement Index :
Improvement in Internal quality
Improvement in Customer Service indices
Improvement in Market share
• Linkage model