Case: Has Ma Bell Learned the Competition Game - Essay Example

Case: Has Ma Bell Learned the Competition Game? What are the environmental changes faced by AT&T as described in the case? Howhave these changes affected basic AT&T strategy?Times for AT&T had been changing since the year 1983, when it was forced to divest itself of most of its capital in assets. The communication industry was hit by the trend toward competition that was building in such industries as airline and trucking. AT&T had to undergo a lot of restructuring and adjustments of leadership.

First, it got divided into three companies from one. Next, its CEO was replaced. In the view of most business experts, a massive external environmental force had shaken AT&T that had caused the company to change the fundamental way in which it performed (Anthony, Kacmar, and Perrewe, 2010, p. 62). It had caused the internal operations of AT&T to be completely reshaped. These changes have had a great impact on the basic strategy of AT&T. The company could no more get a safe harbor from the power, monopoly, or the regulation of the government.

How have these changes affected the human resource strategy of AT&T?These changes caused the human resource strategy of AT&T to be fundamentally changed. “An organization’s [human resource management] policies and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces” (Beer, 1984, p. 25). From being the “only game in town”, the company had to now reestablish its image in the eyes of the consumers by being creative and innovative in its approach, and employees assumed the most important role in this redevelopment of personality and organizational culture.

The first step that AT&T took was reduction of costs by means of downsizing. Thousands of jobs were eliminated, while retirements and layoffs were used to cut the cost of an even greater number of jobs (Anthony, Kacmar, and Perrewe, 2010, p. 62). The HR strategy of AT&T took these cost cutting measures on one hand and increased the pressure of being innovative and creative on the employees. “Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance” (Bratton cited in Durai, 2010, p. 24). One part of the innovative restructuring plan of AT&T was to transfer the employees from other departments to the new positions of sales and marketing.

The company also retrained the employees to upgrade their skills to enable them better to be productive and at the same time, innovative and creative. Would it be easier for a smaller company, such as a locally owned restaurant in your community, to know and understand its environment than for AT&T? Explain your answer.No, it might not be easier for a smaller company, that is a locally owned restaurant to understand its environment as compared to AT&T. AT&T is a very large company that operates in an international environment.

It had well-developed networks and systems that kept it constantly informed of the potential changes in its external environment. This is usually not the case with smaller companies. “Small businesses often have industry specific representation such as a restaurant or manufacturing association.  However, these industries may not talk to each other and cannot provide the broad level of management information required by their members” (symcoandco.com, 2013). Has AT&T performed well in dealing with these changes?

If so, in what ways? Yes, AT&T has performed very well in dealing with the changes. The company brought a revolutionary change in its culture, practices, and approaches understanding the need of change and being creative. The rules were dramatically changed because of rapid change of technology and deregulation. The workforce had to learn a completely new set of rules. The desirable attributes of stability and loyalty were changed with innovation and change for the employees (Anthony, Kacmar, and Perrewe, 2010, p. 65). The company changed its reward systems, and modified its training processes.

Using these and more of such measures, AT&T managed to make a comeback in the market. It has continued to reach its goal of being the only resource that fulfills the communication needs of its customers. Presently, AT&T has placed its focus on a variety of products and services that include but are not limited to Internet access, wireless phone service, cable systems, international phone services, and video entertainment. References:Anthony, W. P., Kacmar, K. M., & Perrewe, P. L. (2010). Human resource management: A strategic approach. (6th ed.).

Mason, OH: Cengage Learning. Beer, M. (1984). Managing human assets. Free Press. Durai, P. (2010). Human Resource Management. Pearson. symcoandco.com. (2013). External Environment and Small Business. Retrieved from http://www.symcoandco.com/resources/articles/external-environment-and-small-business/.