The foundation for what is now AT&T was laid in 1876 when Alexander Graham Bell invented the telephone. This led to the creation of the Bell Telephone Company in 1877 and the opening of the first telephone exchange network in 1878. Additional growth in establishing networks in major U.S. cities continued between 1877 and 1885 under license from the Bell Telephone Company. In 1885, the American Telephone and Telegraph Company was established as a subsidiary of the American Bell Telephone Company with a charter to build the nation's first long-distance network between New York and Philadelphia.

AT&T made some significant changes to its structure through the acquisition of computer manufacturer NCR Corporation in 1991 and McCaw Cellular Communications, the nation's largest wireless phone service provider in 1994. In 2000, the company restructured itself into a family of businesses consisting of AT&T (AT&T Business and AT&T Consumer), AT&T Wireless, and AT&T Broadband. Subsequent to this reorganization, the company continued its acquisitions-focused strategy through the purchase of DirecTV in 2015 and Time Warner in 2016.

Today, AT&T's strategy is to transform itself from a telecommunications firm into a media and entertainment powerhouse that can produce and distribute its own content. The company's current structure has four operating units: Business Solutions, Entertainment and Internet Services, Consumer Mobility, and International. It is headquartered in Dallas, Texas, and employs more than 283,000 people. The company's mission is: "Connect people with their world, everywhere they live, work and play...and do it better than anyone else." Its vision is called "Connect to Good" to leverage connections to build a better tomorrow for its business and for the benefit of its customers, employees, suppliers, and communities.

A major component of AT&T's strategy for achieving its mission is leveraging technology. John Donovan, chief strategy officer and president for technology and operations, commented that in order for the company to develop the kind of network it wants, it will need to use the next-generation wireless network called 5G, but it will also need the AT&T workforce to acquire new knowledge and skills, to do it rapidly, and to do so on an ongoing basis. He told the company's workforce that they needed to adapt to the challenges associated with change by envisioning a different set of circumstances and then to persevere in getting there.

The learning and development function at AT&T plays a key role in ensuring that the workforce possesses the knowledge and skills needed to adapt to all of the changes taking place in the company and its use of technology to drive cutting-edge innovations. First, the learning strategy is developed to directly align with the strategies of the overall company based on meetings among business unit leaders, the corporate strategy and development group, the company's CEO, and learning and development leaders. The strategy team gives each business an action plan for achieving its objectives, and then the learning and development group creates a learning plan within each of these action plans. Second, all learning programs are pilot-tested, evaluated, and modified as needed before they are made available to the rest of the workforce. Finally, learning programs are facilitated by a mixture of AT&T leaders and outside subject matter experts to ensure that participants learn from the most knowledgeable individuals.

AT&T invests heavily in its workforce to provide a culture and work environment in which they can thrive and be rewarded for contributing to the success of the company. Employees enjoy opportunities to have fun through community service and celebrations of personal milestones and work achievements. They are also empowered to work on projects of strategic importance to the company's future.

Discussion Questions

To what degree does AT&T possess the characteristics of a mechanistic versus an organic organization?

Describe the type of departmentalization that exists in AT&T's organizational design.

How is AT&T a learning organization?

How does AT&T address job design issues for various positions in the company?

If you could design the ideal job for yourself, what would it look like? What would be the most important aspects of this ideal job for you? Why?

Have you ever worked for an organization that is a "learning organization"? Do you feel that it was a better place to work because it was a learning organization? Why or why not?