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Executive Summary Verizon Communications, Inc Implementation of Hr Balanced Scorecard

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Executive Summary Verizon Communications, Inc Implementation of HR balanced Scorecard

Overview
In 1996, J. Randall MacDonald, Executive Vice President of Human Resources at the GTE Corporation was facing the challenge to create an HR strategy supporting GTE's workforce through a major business transformation. Moreover Charles R. Lee, GTE's CEO wanted to know what the company was actually getting back for the money spent on various HR related activities.
The main problems for GTE and other American based telecommunication companies were high employee and customer turnover rates and the declining quality of customer service. A tight labor market made it difficult to find qualified people. There was no system in place at GTE to measure employee's performance and MacDonald realized that a quantitative model was needed, showing whether the HR department's activities contributed to the company's financial goals. Balanced Scorecard, a conceptual framework to measure a company's performance, utilizing financial and non-financial measures was selected as a method to quantify "intangible realities" at GTE.

Case Details In February 1996 the U.S. Congress passed the Telecommunications Act of 1996. Recognizing the enormous changes that had been occurring in communications technologies and markets, the Telecommunications Act deregulated much of the telecommunications industry. It aimed to get telephone, cable, and Internet companies to compete in each other’s markets. It did, however, establish certain restrictions. The old Baby Bell companies (companies that were created when AT&T was broken up in 1984 by court order) still dominated local phone service in the United States, and the Telecommunications Act prohibited them from joint-marketing local and long-distance phone and data services until they could demonstrate to the

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