Bachelor of Arts Essay

1.1 FedEx potoration OverviewFedEx Corporation yields customers and billetes worldwide with a broad portfolio of transportation, e-commerce and business serve. With annual revenue of US$ 27 billion, the smart set offers integrated business exercise through operational companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently bedded among the worlds most admired and sure employers, FedEx inspires its more(prenominal) than 250,000 employees and contractors to go along absolutely, compulsively centre on safety, the lastest ethical and headmaster standards and the needs of their customers and communities.1.2 strategic InitiativesCurrently, with its exposure to volatile fuel prices, high superior expenditures, and thin margins, FedEx scum bag not stand up to the rigorous rule maker valued criteria, but its brand power is a perfect example of a sustainable competitive advantage. FedEx ships oer 3 million mail boats a da y. on the route, those packages, the planes that carry them, the trucks that deliver them, and the people that handle them leave impressions on customers. FedEx recognizes that with each box it delivers and every(prenominal) person that delivers it, a brand impression is made. dirt blondness is certainly signifi rumpt to FedEx since its products and services argon less severalize in this fast changing dynamic competitive market. To remake the merged image in order to extend and enhance its brand equity is ace of the backb iodine strategic initiatives that has initiated by the management of FedEx Corporation recently.former(a) strategic initiatives are to focus on the reaping of core package business and supply chain capabilities, and growth through e-commerce and technology, and bran-new services and every last(predicate)iances.2.DESIGN OF HUMAN RESOURCE MANAGEMENT SYSTEM2.1 HRMS of FedExFedEx gracious Resources father policies, programs and procedures that not merely attract, but also retain the most adapted, talented and diverse employees. To this end, Human Resources have implemented successful recruitment, development and Employee coincidence programs. The Corporate HR function consists of 45 employees who provide pitying resources nourish for the entire FedEx Organization. The overall headcount for this team has not changed in over four years even though the employee base has grown by greater than 30%.Most key programs are contacted to the ac familys diversity strategy to build valueand manage a diverse workforce that reflects the rich mix of persons available in the Communities. The HR team regularly attends diversity recruiting career fairs and supports both local and issue transcriptions committed to the development of women and minorities.HR has sought to automate and introduce electronic dishes, in order to stream business its various lag function. These include the entering of an electronic company wide web ground Internal public life Opportunities Program (ICOP), that provides employees anytime/anywhere gate to available opportunities within the company.Employees can search, arrest and be notified of open positions within the physical composition by logging on to the site. Managers, can also initiate the example process and receive boon electronically via an on-line employment requisitioning process. The major obstacle that needed to be addressed in the alignment of these ii major programs was accessibility, communication and education. Employees were advance to submit their private profiles so that they could receive automatic notifications from the frame when positions for which they qualified became available.FedEx has developed a proactive staffing model for its facilities. This program allows the Field organization to add management staffing before the need exists. Recruiting, sourcing and training are make 20 weeks before the individual is expected to begin their career as a service manager.By accessing the HR website, both employees and Managers can induce a wide variety of information geared to keep their employment information current, provide easy access to employment information (employee handbook) as swell as provide access to benefits information and employee centered programs. Online access to the HR electronic network is available from home and work to all employees.2.2 VRIO manakin AnalysisValueFedEx managers stress that they are a people-first organization. The corporate philosophical clay statement sums up their view of the source of competitive advantage People-Service-Profit. FedEx sight a long time ago that customer satisfaction sincerely begins with employee satisfaction. In other words, the FedEx philosophy is that people are the primary link in the value chain, and thus, value is created by focusing on employees first.tenuityFedEx value and capitalize on the differences of their employees with diversity education programs such as Gend er Speak, Delivering Diversity, Introducing Diversity, and Valuing Differences. One of its most successful programs RESPECT provides a process where employees can work together to resolve their differences. Therefore, it would exercise tremendous potential difference to exploit the rare characteristics of its employees for competitive advantage.ImitabilityFedEx worked closely with the University of Memphis, established the FedEx Institute of Technology, a unique public-private collaboration designed to advance world-class interdisciplinary seek and introduce a new generation of highly skilled graduates to the workforce. The company has more than 219,000 employees globally and expects the alliance leave help develop a highly skilled recruitment pool.OrganizationFedEx is committed to fostering an employee foc partd culture. It has a well-developed and thoroughly deployed management evaluation system, which involves a survey of employees, depth psychology of each work mathematical assemblys results by the work groups manager, and a discussion between the manager and the work group to develop written action plans for the manager to improve and pose more effective. Data processed are aggregated at all levels of the organization for use in policymaking. Employees are free to share their opinions with management and in turn, work towards the resolution of internal issues within their department by combat-ready on their action planning teams.3.EMPLOYEE SKILL, MOTIVATION, JOB DESIGN & WORK STRUCTURESFedEx has a clear goal to have people who are committed, motivated and well trained. Here are some of the tools and techniques that they have developed3.1 SelectionFedEx Corp is proactive targeting of candidate sources leads to a richer pool of applicants and enables company to reach break up candidates faster. They worked closely with the University of Memphis, established the FedEx Institute of Technology, a unique public-private collaboration designed to advance world-class interdisciplinary research and introduce a new generation of highly skilled graduates to the workforce.FedEx had created a multi-national, multi-lingual recruitment assessment system in identifying candidates most suited to the jobs on offer and capable of operational to the companys global standards and values.3.2 FedEx Compensation & Rewarding SystemFedExs bonus program is driven by goal sharing. This program encourages employees to achieve strategic goals by basing individual bonus levels on corporate and business unit goals, up to 10% of an employees total recompense. FedExs canon for calculating bonuses includes corporate variables such as contributed operating margin, corporate ROE, dinero sales, customer returns, shipped kilometers and total unit cost.Putting people first vogue of life that FedEx is dynamic in both reward and recognition. For hourly paid staff the even out is geared to individual action. However, to encourage good team working, there is a lso a team based Best Practice Pays element. The pay for performance of salaried staff is based upon measures relating to the companys key philosophy.3.3 Performance ReviewsFedEx is a very performance-based company. Every person knows upfront what his performance objectives are and he also knows upfront what he can earn. So the crux of People Service People is a fairly intemperate performance management and compensation system. If a person fails in his performance, accordingly the person does not get disciplined, but he gets pulled into a plastic action plan.Employees are encouraged to identify their weaknesses through a personal development programme (PDP). These could be general things like communication skills or dealing with conflicts in the workplace. FedEx has an online training library with 600 courses on things like leadership, intention management skills, even something as basic as presentation skills. Employees can log in and take any course, but need to pass.3.4 roun d SurveyThe annual staff survey is considered to be one of FedExs biggest business improvement tools. A total of 32 questions are answered electronically in business time over a period of two weeks and participation has augmentd from 97% to 98%.4. PRODUCTIVITY, CREATIVITY & DISCRETIONARY motilityBy competing collectively under the FedEx banner, FedEx in service companies benefit from one of the worlds most documented brands. FedEx is one of the most trusted and a respected brand in the world and its brand chance upon is a powerful sales and marketing tool. Among the many reputation stages FedEx customary during 2004, FedEx ranked seventh in corporate reputation on The bulwark Street Journals Harris Interactive/Reputation Institute RQ favorable Survey, and for the third consecutive year, FedEx ranked in the top ten of destiny magazines Americas Most Admired Companies and homos Most Admired Companies careens.FedEx is the only transportation company and one of the very few co mpanies overall to rank this highly in all three reputation surveys. FedEx ranked highest in customer satisfaction in the University of Michigan Business School National Quality Research unions American Customer Satisfaction Index in the dissever delivery category. Wal-Mart Stores, Inc., the worlds largest retailer, also selected FedEx as the recipient of its carrier of the Year award. BusinessWeek recognised FedEx Kinkos in the magazines Web Smart 50 report for the companys innovative use of Internet technology to transform business processes and reduce costs.FedEx is well recognized as a leader, not only in the transportation patience and technological innovation, but also in social and environmental duty and corporate governance. Along with a powerful reputation among customers and the general public, FedEx is wide acknowledged as a great place to work. In 2004, FedEx was listed among slews 100 Best Companies to Work for in America, a list that FedEx have made every year it has been published.It is FedEx people-FedEx greatest asset-that give FedEx it strong reputation. In addition to superior physical and information networks, FedEx has an exemplary piece network, with more than 240,000 employees and contractors who are absolutely, positively focused on safety, the highest ethical and professional standards and the needs of their customers and communities. Through FedEx internal Purple Promise and Humanitarian submit programs, FedEx recognize and reward employees who enhance customer service and promote valet de chambre welfare.5. IMPROVED OPERATING PERFORMANCEAs discussed previously, new strategic portion for HRM is very noteworthy for the organizations advancement. System thinking among the line and HR manger is the first step. The performance management and incentive compensation system must define desire employee behavior and reward those behaviors in meaningful way when goals are achieved.Almost 50% of all FedEx spending goes to employee pa y and benefits. Many Special Awards to recognize employees performancei) Bravo Zulu award for outstanding performance beyond normal job expectations.ii) Golden run award for exceptional customer service.iii) Humanitarian Award recognition for piece welfare above and beyond work or community standards.iv) spark advance/Superstar Award a lump sum merit based award for top performers.v) Five Star Awards the highest award for enhancing service, profitability and the smelling of teamwork.Deadly combination and powerful connection are terms to differentiate the effects of an organization policy of promotion from within on crocked performance. But probably not be present in every firm or even most of firms. So the only way that the organization can hope to identify the HR system decently is to adopt system perspective, which means business priorities drive the development of the HRM system.6. gain AND GROWTHBase on the FedEx second puffs pecuniary 2005 pecuniary report (six months ended November 2004), it shows that FedEx has adapted an effective and efficient HRM system, which has brought up the corporations profit and growth. This is evidential by the following monetary analysis-i) receiptsThere is a 23% Revenue growth compare to the last 2nd quarter monetary year 2004. The revenue has increase from US$11,607 billion to US$14,309 billions in this 2nd quarter fiscal year 2005. FedEx announced that they would expect to have Group Revenue of US$ 27 billions this fiscal year 2005, which is a 9.5% growth.ii) Salary & Employee benefits damageHowever, in term of Human Resources cost, we can see from the report that it is only an increase of 14%. Compare to 23% increase in revenue. The increase is justifiable.iii) Net ProfitFedEx has shown a 212% increase in the Net Income this fiscal year compare with last 2nd quarter, from US$219 millions to US$684 millions, patronage the roaring up of oil price, which is also one of the major operating cost, in this year. Their profit result is definitely considered outstanding.iv) Diluted Earning Per ShareObviously, with the high increase of the net income, the diluted earning per share is automatically increase by 210% compare to last 2nd quarter. It is definitely a kind of the positive effect of the HR- Stakeholders value relationship.v) Revenue generated per EmployeeBased on the US$27 billions Group Revenue generated by the total 250,000 number of employees in FedEx, we will be able to see that the revenue per employee generated is nearly US$108,000. Which is more than higher than the world largest package delivery company UPS, who has an annual turnover of US$30 billions and 370,000 employees worldwide, and the revenue generated per employee is only US$81,081. The productivity is untold better. This has shown the efficiency and effectiveness of the HRM system.7. MARKET VALUEFrom the study of FedEx Corps HRM system, it is undoubtedly that its HRM has strategically adopted high performanc e work system that creates real shareholder value. Such system has strengthened FedEx HR to become a strategic core competency and have an economically significant effect on firm performance. This also generates the transformation from HRM to human capital management and hence becomes to be a competitive advantage.The consistent increase profits and growth as shown in the companys monetary reports has also proved that FedEx HRM has created value and played an important role in the companys achievement and success.FedEx shareholder market value has increased continuously as shown clearly in its financial statements. However, companys HR market value has never been officially computed and shown in the financial statements. Based on the company productivity, FedExs each employee generates revenue of more or less US$108,000 quarterly, which is much higher than the world largest package delivery company UPS, whose per employee generates revenue of only about US$81,081 quarterly.8. CON CLUSIONFor FedEx, timing is everything. delivery on time is essential, and within FedEx, ensuring this performance every time, has meant the transition to systems that provide online, real-time connectivity, bringing improved business processes and increased productivity. With unrivalled logistics solutions, FedEx saturnine to its Human Resources function, to leverage its competitive advantage.In such a geographically diverse and disparate region, FedEx strives to manage its human capital by minimizing administrative burden and creating a culture of effective self-management. With employees spread across the Region, and in line with its organizations stir up to an Internet-centric company, FedEx was continuously looking for ways to empower its employees, and allow them to take control of some of their HR functions. supplement on PeopleSoft HRMS solution to effectively manage their human capital, it provided FedEx with the scalability and functionality they needed, to enable Fed Ex to move towards becoming a Real-Time Enterprise. FedEx employees were fully utilizing their self-service functions, and their HR staffs are now free to deliver a more strategic output to the business. They have increased the visibility of HR information to more effectively manage the enterprises most valuable resource human capital.APPENDIX A BIBLIOGRAPHYRelevant Reference Sites* www.fedex.com* www.fedex.com/us/investorrelations/2003annualreport/* www.fedex.com/us/investorrelations/downloads/* www.fool.com/portfolios/rulemaker/2001/rulemaker010502.htm* www.incomesdata.co.uk/studies/hrmansystems.htm* www.stevieawards.com/pubs/awards/70_1438_8395.cfm* www.findarticles.com/p/articles/mi_hb001/is_200309/ai_hibm1G1107999043* healthproject.stanford.edu/koop/Federal%20Express/description.html* www.hoovers.com/fedex-corporation/ID__10552/free-co-factsheet.xhtml* online.wsj.com/ad/fedex/* moneycentral.msn.com/investor/research/profile.asp?Symbol=fdx* www.humanresourcesmagazine.com.au/ar ticles/19/0C029319.asp?Type=60&Category=1162* www.bizjournals.com/memphis/stories/2004/08/09/daily3.html* www.quality.nist.gov/FederalExpress_90.htmEvaluation of the Stakeholder Value Relationship Model AssignmentBA361 Human Resource Management Page 2 of 12