A company overview of FedEx

A company overview of FedExUS based FedEx club, is a universally acclaimed corporate giant for logistics and transportation and is a conglomerate of many marcher companies like FedEx say, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Net cultivates and FedEx Services functioning under the FedEx blade name (FedEx, 2009). FedExs core competencies lie in package r stunneding, rake and employee transaction. Frederick W. metalworker instituted the FedEx Corporation in 1971 under the name national Express. In 1998, the Federal Express Corporation was as FDX Corporation. It was in January 2000, that the FDX Corporation was renamed as FedEx Corporation and its subsidiaries were re-branded as well. Federal Express came to be kn have as FedEx Express since then the small-package ground assistant RPS got re-branded as FedEx Ground the shipping provider Roberts Express got renamed as FedEx Custom Critical Caliber Technology and deliver logistics provide r Caliber Logistics were united to miscellany FedEx Global Logistics FedExs retail build up renamed as FedEx Office. Ever since its inception in 1971, FedEx showed extraordinary growth and really metamorphosed into a gargantuan company. Today the company stands tall with a label revenue upswing of $35.5 billion (though down 6% from $38.0 the previous year the dis return bath be mainly attri dormanted to global economic slowdown) (FedEx Corp. 4th Qtr. Earnings, 2009, June 17). FedEx comprises of a strong workforce of to a greater extent than 290,000 employees and contractors. FedEx is renowned for its respective(a) ace profit and innovatory HR practices, policies and procedures. This is prove by its consistent appearance on the component part magazines lists Worlds Most Admired Companies, Americas Most Admired Companies and nose candy Best Companies to snip for in America. FedEx enjoys nonpargonil leaders in unlike realms of HRM such(prenominal)(prenominal) as employe e motivation, employee retention, diversity of work and benefits and compensation. The key contributing accompanimentor to FedExs ginormous success and re pukeation is its People-Service-Profit (PSP) philosophy according to which FedEx views human resources as the prime contributor for its profitability.strategic HRMFedExs physical objects argon to offer 100% good theatrical role, immaculate guest helper and overnight parcel delivery. FedExs corporate egressline is differentiation that transcends product, market and geographic boundaries. FedExs is able to preserve its warlike frame in by way of its preternatural ability to innovate and by its being leader in technology. every last(predicate) the HR strategies elaborated below expedite FedEx to enjoy militant advan stigmatizee by shipway of innovation, technology, human resource and management capabilities.HRM Organizational Objectives guile slight delivery of tens of thousands of packages at heart stipulated maximu m of 48 hours with an immaculate function fiber is definitely a wondrous accomplishment. Despite the fact that FedEx adopted scientific innovations well ahead of prison term, its qualification and advocator to provide source-rate guest service is possible chiefly because of its connected, inspired and well- demanded hands. FedEx strategically manages its manpower resources. FedExs organisational strategy is Compete collectively, Operate independently and Manage collaboratively (FedEx, 2009, Mission, Strategy, Values). FedEx Corporation aligns its HR activities with its physical compositional strategy and by doing so it is competent of attaining such marvelous and improbable success. People-Service-Profit (PSP) doctrine religiously adopted by FedEx Corporation assures that the system of ruless valuable human resources ar well c ard for and authorise as well. Owing to the fact that the employees be exhaustn good c ar of and atomic number 18 delegated with more th an power and authority, they reciprocally sign on c be of the organization by delivering ace whole tone of service thereby facilitating the organization in reaping more profits (Chang, Labovitz Rosansky, 1995, p.34 Birla, 2005, pp.9-13). consequently the People-Service-Profit (PSP) slogan forms the rump for all decisions do by the FedEx go along management. key fruit HR StrategiesFedExs core HR strategies and their bond with organisational targets argon discussed as under recruitment and Selection StrategyFedEx recruits capable and qualified manpower for all hierarchical levels. It score up promotion from within form _or_ system of government with the intent of providing evenhandedly chance to all employees to employ their skills and competencies at work to the full (Birla, 2005, p.196). The company perpetrate to a no lay-off insurance policy so long as its survival is not imperilled (Frock, 2006, p.67). colloquy StrategyFedEx employs several(prenominal) processes l ike Open-Door form _or_ system of government (ODP) (Frock, 2006, p-204), Guaranteed Fair Treatment Program (GFTP) (Frock, 2006, p.207) and Survey-Feedback-Action (SFA) (Frock, 2006, p.206) to establish pass and good bipartite communication networks. Employees from all hierarchical levels be made to actively get involved and interact freely in the unhomogeneous discussion and QA syllabuss employed by FedEx.Compensation StrategyFedEx offers extremely competitive open schemes (Dessler, 2003, p.358). It also gives pay-for- process incentives. It ensures fair treatment of all employees. It vouches labor protective cover for all employees.Training and Development StrategyFedExs Training strategy facilitates in fulfilling its organizational objective of cent percent customer contentment. The organization practices promotion-from-within policy. thereof it ensures that adequate and all-encompassing training comprising lead conceptions, quality management and organizational philoso phy is provided to employees belong to all rungs of organizational hierarchy.HRM ModelsHarvard ModelHarvard model sk etceteraes four-spot key HR domains 1) world Resource Flows recruitment, plectrum, appraisal, termination etc. 2) retaliate systems pay packaging, employee motivation etc. 3) Employee empowerment empower and delegate employees with more power, authority and accountability and 4) Work systems work definition, managing diversity of work and alignment of human resources (Price, 2007, pp.35-37). The richlyer up four policy areas result in the 4 Cs Commitment, Congruence, competency and Cost-Effectiveness. The characteristics of Harvard Model of HRM that are prevalent in FedEx surroundings are the followingHuman Resource FlowsRecruitment and Selection FedEx is systematically showered with laurels such as better employer, most admired organization and great place to work. FedEx, having earned such recognition and purenesss does not plainly shake up any t rouble with enticing and luring the best work force. FedEx carries out both medical internal and external recruitment drives. In FedEx, collaborative drive is encouraged more than person effort. Equal employment opportunities are effrontery to skilled and competent potential candidates at all hierarchical levels. FedExs task Change Applicant-Tracking System (JCATS) offers opportunities to irregular workers to acquire regular employment (Shen, 2007). as well FedExs Leadership rating and Awareness influence (LEAP) provided employees from non-managerial positions search positions at managerial levels (Holbeche, 2001, p.294).Appraisal FedExs procedure appraisal done annually relates pay hikes to individual performance. act goals are decided and agreed in advance but of few notable characteristics that deserve appreciation and guaranteed pay hikes are en thereofiasm, team up playing skills, commitment, customer druthers and proficient know-how and expertise (Cook, 208, p. 205). Pay reviews for periodic paid workers are done once every 6 months. yield SystemsFedExs rewards system comprises of various set aparts such as The quint Star allow, extremely Star Award, Bravo Zulu, Circle of Excellence and Golden Falcon Award that are instituted to motivate and boost the morale of the employees and push them towards even more better performance (Mcshane, Von Glinow Sharma, 2008, p.552).Employee EmpowermentFedEx caters to customers demands by even exceeding their expectations, which is wherefore it is possible to deliver such a top-rate customer service. In arrangement to lose and exceed customers expectations, FedEx resorted to employee empowerment (Kandula, 2004, p.143). Employee empowerment is the most established and proven means to gain competitive edge over peers. Employees are empowered to the extent of even chartering flights on their own so as to meet the customer delivery requirements. FedEx has even empowered truck drivers so that they are accountable for scheduling their delivery routes in differentiate to meet the delivery schedule. Federal Express records Service-Quality Indicator (SQI) depending on various parameters like a) barrack delivery of shipments b) delivering past the stipulated deadline c) unable to track the status of the shipment within half an hour of a customers enquiry. SQIs intent is to comprehend the causes for failure and fasten such instances in order to increase customer satisfaction. memory SQI at desired levels was possible due to employee empowerment.Managing work diversityFedEx won the accolade 100 Best Companies to Work For from Fortune magazine due to its capability of managing work diversity (FORTUNE, 2009, January 23).From the above four policy areas identified in the context of FedEx, we can infer the following CommitmentBy pose the people first as in the FedEx philosophy People-Service-Profit (PSP) and adopting various employee-friendly HR practices detailed above (recruitment, selection, rewards system, employee empowerment), the workforce will definitely remain committed to fulfilling FedExs goals. FedEx work environment is conducive to innovation and its practices are employee-friendly to ensure that they are kept motivated ever.CongruenceAll the HR practices outlined above build their objectives aligned perfectly with FedExs goals that is to offer unparalleled customer service.CompetenceFedExs core competence is its leadership in innovation, human resources and processes. FedEx with its best employer tag and excellent HR practices is able to easily attract and retain geniused pool of workforce and this mainly contributes to its success in its operational area.Cost-EffectivenessObviously, FedExs processes are cost-competitive and facilitate in a great manner to maintain the competitive edge over its competitors.Guest ModelThis model posits that provided a unified set of HRM practices and procedures is employed in a logical and consistent manner, w ith the objective of accomplishing the prescriptive objectives of great dedication, superior quality and task flexibility, then super-ordinate employee performance will ensue. Further such a collective performance purity from employees will eventually result in superior organizational performance likewise. Guest models six components are 1) an HRM strategy 2) a set of HRM policies 3) a set of HRM outcomes 4) behavioural outcomes 5) performance outcomes and finally 6) financial outcomesHRM strategyFedExs strategy is differentiation that transcends product, market and geographic boundaries in order to attain 100% customer satisfaction.HRM practices policiesRecruitment selection, training, appraisal, rewards, job design, involvement, job security, open-door policy, promotion-from-within, no-layoff-policy, profit-sharing policy, fair-treatment policyHRM outcomesEmployee commitment, service quality and flexibilityBehavioural outcomesMotivation, involvement and collaborationPerforman ce outcomesHigh productivity, mettlesome innovation, low turnover, low absenteeism, less customer complaintsFinancial outcomesProfits, good ROI (Return on Investment)Key HRM ActivitiesRecruitmentRecruiting the right skilled and natural endowmented workforce is all important(p) to fulfilling FedExs organizational strategy and this becomes a key HRM activity that facilitates FedEx maintaining its competitive edge over its peers as well. The Recruitment and Selection procedures practiced at FedEx are detailed under the HR Planning and Development section below.RewardsFedEx has set up various trophys that are defined below to acknowledge talent and to actuate exceedingly gifted employees (Mcshane, Von Glinow Sharma, 2008, p.552 FedEx Overview, n.d.). These awards, tokens of appreciation and accolades immensely facilitate in motivating the employees to improve and do even better and fix high standards for them as individuals and as teams.The Five Star AwardThe highest and best awar d one will get in FedEx for exceptional performance is the Five Star Award. The employee who contributes to an extraordinary extent to arouse teamwork, service quality and positivism receives this most coveted award. superior Star AwardEmployees who perform consistently and are constant achievers in terms of performance deserve this Super Star award.Bravo ZuluBravo Zulu is slang used by US Navy for well done. Employees whose performance is outstanding are sure to receive this award.Circle of ExcellenceTeam and collaborative effort demands appreciation, recognition and encouragement. This award is one such award given to teams rather than individuals that do exceptionally good.Golden Falcon awardEmployees who offer extraordinary customer service by exceeding the customers expectations deserve the Golden Falcon award.Internal CommunicationBipartite communication involving the top management and the employees is prevalent in FedEx Corporation. FedEx is committed to Open-Door polity ( ODP), Guaranteed Fair Treatment Program (GFTP) and Survey-Feedback-Action (SFA) in order to facilitate such a bipartite communication.Open-Door indemnity (ODP)ODP facilitates employee empowerment by change them to call into question / to register their displeasure (or) dissatisfy regarding various organizational policies such as hiring, career, benefits, compensation, etc. The formal accusations and charges thus registered are put forward to the open door forum and are later on forwarded to the respective official to be handled (Frock, 2006, p.204).Guaranteed Fair Treatment Program (GFTP)FedEx requires having a professional grievance handling system to cater to such a huge workforce. GFTP precisely satiates such a need. GFTP facilitates employees to record their grievances, displeasure and discontent on several aspects like disciplinary measures, appraisals, layoffs, downsizing and placements. Such issues are processed at triplet levels of managerial hierarchy. The manager at t he first hierarchical level who is the employees immediate superior reviews the issue. Any issue that reaches guerrilla level is carefully reviewed by the Vice President of the section. If the issue is still not resolved at the second level also, then it is address by the Supreme Court of FedEx Corporation headed by none new(prenominal) than Fred Smith (Frock, 2006, p.207).Survey-Feedback-Action (SFA)FedEx instituted SFA with the purpose of enhancing employee top management bloods. Employees are made to form teams or work groups amongst themselves and chosen representatives from such teams have to complete questionnaires on several management aspects and superiors. The advent of technological innovations have facilitated setting up of on-line SFAs so as to give instant, easy and immediate rag to its global team of employees (Frock, 2006, p.206). FedExs bipartite communication mechanisms described here thus let openness and transparency master in the operations and thusly shoul d be appreciated for the same.HR Planning and DevelopmentThe core HR Planning and Development activities / processes namely the recruitment and selection, training and sayation and episode externalisening that are performed in FedEx are elaborated belowRecruitment and SelectionFedExs organizational objective is to provide unrivalled quality customer service. So recruitment becomes a critical process that involve to be carried out with careful consideration. FedEx only recruits people who were ready to accept challenges and take risks and also possessed enterprising attitude. FedEx entices functional experts by providing them stock options as well as chance to work in exciting and pushy environs. FedEx adopts a logical and well-planned procedure to carry out recruitment and selection. FedEx supports recruiting students / graduates for intern positions so as to train them for taking up challenging job offers in the future (Working at FedEx., n.d.). Roughly around 25,000 employee s are recruited at FedEx for various permanent as well as ad hoc positions. Keeping pace with the technological innovations and internet, FedEx automated the whole job screening and application screening procedures. subcontract applicants can cave in online by clicking the Career focus icon in the FedEx home page http//www.fedex.com. Vacancies prevailed in various areas such as administrative support, aviation maintenance, customer service, e-commerce, engineering, operations, HR, IT, marketing, truck drivers, vehicle technicians etc. are updated in Personnel Records and randomness System (PRISM) (FedEx Overview, n.d.). Prospective applicants can apply online for jobs that commensurate with ones skills, talent, education, training and experience. College graduates and students are also welcome to apply online for internships and permanent positions as well. Prospective candidates can complete information pertaining to their resource (job and place of work). FedEx job applicat ion system allows such prospective candidates to piss and store on-line resumes. The candidate details are then canvas with job eligibility criteria stored in PRISM and suitable candidates are identified. Such short-listed candidates have to further take an aptitude test that quizzes their Math, English and reasoning skills, followed by interview. Candidates who clear the interview further undergo a fitness interrogation and a background credentials check, and finally are given conflict garners. The new (online) system facilitated the screening procedure and drastically brought down the time taken for the procedure by virtually 50%. There is no race, gender, religion, nationality, disability or age discrimination when it comes to providing employment opportunities. Fair and disturb treatment is provided to one and all at FedEx. Thus the recruitment and selection procedures at FedEx are carried out efficaciously thereby helping FedEx to maintain its competitive edge over the r est.Training and DevelopmentFedEx has a distinct training course of study in place so as to train the new hires and to facilitate them to perform the tasks they are expected to. FedExs training and development program not only imparts job-specific skills and competencies but also contributes greatly to the heart-healthy development of human resources. FedEx provides an environment that favours continuous learning and hence stagnancy of skills or plateauing is highly unlikely. untried recruits are made to undergo a very effective orientation program that is formulated with the intent of devising first day at office or on-boarding in frequent a beautiful, enjoyable and unforgettable affair. The orientation program comprised of a New Hire Orientation Kit that includes 1) letter from the CEO 2) checklists 3) welcome letter personalized and signed by the managers 4) first day / first week / through the year employee work schedule. And then the kit also includes a half-an-hour vi deo program Welcome to our World that details out the benefits and facilities of FedEx (Connor, 2003, January 1). The orientation program alterd the new recruits to become familiar(predicate) with the doctrine, policies and procedures, and the fictional character and nature of relationship between higher-ups and equals at FedEx.An on-the-job training program commences once later the orientation program is over. The training program is designed as per the type and nature of job and tasks the new recruits were required to execute. The higher-ups who are in-charge of the new recruits are also instructed as to how and in what manner the new recruits need to be provided on-the-job training. The employee types such as customer service representatives (CSRs), couriers and service agents, who have to interact more with customers were trained with extra care and significance. The training program for such CSR trainees was a rigorous eight-week schedule during which they were trained nea r FedExs service types and were put in conditions simulating real work environment. They were taken through computing device screens which they will be required to use during their work they were made to get a line to customer live calls in order to get a mollify of the actual job environment. Tests were also conducted as part of the training program and the trainees have to obtain good scores in these tests in order to complete training successfully and be put to actual work. Couriers / service agents have to successfully complete a four-week on-the-job training in the lead being assigned to real field tasks.FedEx is a learning organization that provides a continuous learning atmosphere to facilitate honing the skills, capabilities and competencies of the employees. To evaluate the competencies and proficiencies of the employees, they are subject to taking up a job-knowledge online test once every six months. The performance of the employees becomes an employee training record and is stored in Personnel Records and Information System (PRISM). By way of such evaluation it is possible to cook the areas in which employees ought to enhance their competencies and are assisted and trained further in improving their performance. If despite being trained the employees flunk the job-knowledge tests, they have no other option but to quit FedEx. Such is the significance of sporadically assessing the employees job proficiencies.FedEx started the Leadership Development Institute (LDI) during the 80s, and this was instrumental in formulating various training sessions and programs for employees from various hierarchical levels of management. The LDI backed training programs covered three subjects Core Management Principles, outdoor-based learning, and Electives. LDI was mental facultyed by Managing Directors and senior managers together to be called as Management Preceptors. FedExs LDI recognizes leadership material by functioning the Leadership Evaluation and Aware ness Process (LEAP) (FedEx Overview, n.d.). LEAP is established on various leadership attributes such as charisma, dependability, flexibility etc. Team play is life-or-death in this LEAP process. This program is designed to cater to and evaluate the needs and potential of all employees who evince interest and involvement in donning leadership roles. Interested candidates are made to participate in a one-day introductory classroom session Is Management For Me? in order to make them conversant with managerial capabilities and responsibilities. On successful completion of this, the candidate progresses to the next play to finish the leadership awareness activities. During a 3-6 month period, LEAP candidates are trained and evaluated in leadership qualities. Depending on the candidates performance during this tenure, the manager makes a written recommendation by either favouring or rejecting the candidates attempt for getting managerial positions (Murley, 1997, p.502).Succession Pla nningFedEx believes in fostering and nurturing in-house talents and in promoting them to top rungs of management. FedEx also gives chances for employees from non-managerial cadres to get promoted to managerial positions. FedExs Leadership Evaluation and Awareness Process (LEAP) (Murley, 1997, p.502) was established in 1988 to enable non-managerial employees opt for managerial positions. The LEAP essentially involved assessing the leadership skills and capabilities of the employees who wish to get into managerial positions. FedEx gives preference to in-house talent and hence posts job vacancies in its on-line job portal called Job Change Applicant Tracking System (JCATS). FedEx encourages mentoring and coaching which is yet another(prenominal) non-formal but efficient way of succession planning. FedExs mentoring and coaching programs are carried out efficaciously in FedExs Leadership Development Institute (Murray, 2001). These are the various means by which FedEx facilitates career progression within the organization.Performance supervise and EnhancementThe HR performance needs to be monitored regularly to enhance the effectiveness. So performance monitoring in FedEx is carried out and the various ways by which the HR performance is assessed are given belowPerformance Appraisal SystemFedExs appraisal system links pay increases to the employees productivity and performance. Annual performance appraisals are carried out and employees are evaluated on the basis of various job-specific attributes few noteworthy ones being customer orientation, team skills, loyalty, technical expertise etc. (Cook, 208, p.205). Apart from hefty pay packages, several irresistible prerequisites like 1) tuition fees reimbursement, 2) travel discounts and 3) jump-seat availability (free flight privileges for employees). All such prerequisites are provided over and above the already entitled hefty pay packages. FedEx also offers a 10% profit-sharing scheme for those valued employees . All such enticing aspects related to compensation and benefits salvage the employees happy and motivated and enable FedEx to enjoy unmatched position when compared to its peers.Staff SurveysFedEx conducts staff surveys on an annual basis and this serves to be crucial business enhancement tool. Participants are supposititious to provide replies to 32 questions electronically in a two week period (Mosley, n.d.). Active participation of staff has been witnessed over these years. This Survey-Feedback-Action (SFA) procedure was introduced with the objective of helping top management in deciding upon issues related to promotions. merely then SFA was practiced in reality only to the magnitude of evaluating the employees belonging to the managerial cadre. The employees from various teams are supposed to respond to the 32 questions asked well-nigh their higher-ups and the overall management anonymously. The survey results are collated and tabulated and given to the concerned team manage rs. The managers carry on feedback sessions with the employees, conduct a detailed discussion about the survey results obtained and spot the issues which ought to be handled. Once the feedback sessions conclude, the team members need to gulping a formal plan of action to resolve the spotted issues. The plan is thereon reviewed on a regular basis to monitor the progress of the corrective measures being carried out. Few sample questions from the survey are as followsI feel free to tell my manager what I theorizeMy manager lets me know whats expected of meFavouritism is not a task in my work groupMy manager helps us find ways to do our jobs betterThe SFA helps 1) to assess the managerial performance, 2) to resolve employee problems and 3) to enhance relations at work place.Turnover ratesFedEx has a very less and insignificant turnover rate of about 1 percent. This being the best employer knows the trick of successful and effective employee retention mechanisms. There is no shortfal l of career plans or opportunities for the FedEx employees and this is one crucial reason why FedEx is capable of successfully retaining its invaluable workforce. Promotion-from-within policy enables elevating the employees in the hierarchical rungs from within. Also employees performance, efforts and contributions are well-recognized and exceptional employees are awarded for their competencies and proficiencies. Also open and transparent communication too plays a great role in reducing the employee turnover rates. Also, employees should take pride in what they do and this is where imparting proper training to perfect the employees skills becomes essential. FedEx has a well-defined on-the-job training mechanism which greatly helps in enabling the employees perform a meaningful job for which they can own pride and responsibility.Motivation and Job SatisfactionFedEx thrives on innovation. For innovation to prevail at impressive levels, creativity, productivity and discretionary effort s are prerequisites. Such attributes are fostered by high levels of employee motivation and job satisfaction experienced by the employees. FedEx has won a slew of accolades thanks to its job-satisfied and motivated workforce. FedEx environment is conducive to innovation and this in turn motivates the workforce to perform exceedingly well.HR Policy RequirementsHere we compare and contrast three identified HR policies of two diverse organizations. The two organizations taken for study and comparison of HR policies are 1) Northumbria Police and 2) UCL Londons Global University. The three policies that are considered for comparison are 1) Diversity and equivalence, 2) No heater, 3) Work life BalanceHR Policy 1 Diversity and EqualityNorthumbria Police versus UCL Londons Global UniversityNorthumbrias Diversity and Equality Policy (Northumbria Diversity Equality, 2009, April 8) strives to boost, encourage and preserve diversity, equality and human rights and inform individuals an d community about the significance of honouring equality, diversity and human rights within the Northumbria Police. The policy is formulated to evince the Northumbria police support and compliance to enforcing anti-discriminatory, equal luck and fair treatment measures in the workplace.UCLs Race Equality Policy (UCL Human Resources Race Equality, n.d.) aims to promote racial equality in all its functions and to value diversity of staff and student and to forbid illegal acts of racial discrimination. The Policy goes about defining racism and means of implementing the policy. UCLs Equality objectives are clearly defined and an Equality Action Framework is formulated too. Special detect about dealing with the acts of harassment and bullying is made and institution of boards and committees to keep acts of inequality under check and control. Managing work force diversity and promoting fair treatment in recruitment and selection procedures at UCL is emphasized. Both the staff and stude nt communities are included in defining the various equality initiatives that are required to be taken as per the policy.HR Policy 2 No SmokingNorthumbria Police versus UCL Londons Global UniversityNorthumbrias No Smoking Policy (Northumbria No Smoking, 2009, April 1) states about the existence of No Smoking policy within the building premises and vehicles under its control. The objectives of this policy is to 1) ascertain that non-smokers are not involuntarily exposed to tobacco smoke, 2) to educate people about the health hazards associated with smoking, 3) to help those who wish to quit smoking and 4) to accommodate smokers as well.UCLs No Smoking Policy (UCL Human Resources No Smoking, 2007, June 1) strives to create a smoke-free healthy environment f