Bachelor of Arts Essay

1.1 FedEx green goddess OverviewFedEx Corporation exits customers and problemes domain wide-eyed with a broad portfolio of transportation, e-commerce and business services. With annual r eveue of US$ 27 billion, the fellowship fractures compound business application through operating companies competing collectively and managed collaboratively, under the respected FedEx scratch. Consistently ranked among the worlds closely admired and trusted employers, FedEx inspires its more than 250,000 employees and contractors to remain absolutely, absolutely focused on safety, the highest good and professional standards and the needs of their customers and commwholeies.1.2 Strategic InitiativesCurrently, with its exposure to volatile fuel prices, high slap-up expenditures, and thin margins, FedEx terminate non stand up to the rigorous rule maker quantitative criteria, except its brand tycoon is a perfect example of a sustainable matched advantage. FedEx ships over 3 million s oftw ar programs a day. Along 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 whole box it delivers and every person that delivers it, a brand impression is made.Brand equity is certainly significant to FedEx since its products and services argon less differentiated in this fast changing dynamic competitive market. To remake the corporate dickens-base hit in order to extend and enhance its brand equity is one of the key strategic initiatives that has initiated by the wariness of FedEx Corporation recently.Other strategic initiatives argon to focus on the growth of core package business and supply chain capabilities, and growth through e-commerce and technology, and new services and alliances.2.DESIGN OF HUMAN resourcefulness MANAGEMENT SYSTEM2.1 HRMS of FedExFedEx Human Resources develop policies, programs and procedures that not exactly attract, but also retain the or so competent, talented and diverse employees. To this end, Human Resources have implemented successful recruitment, development and Employee relation programs. The Corporate HR function consists of 45 employees who provide human resources support for the entire FedEx Organization. The overall headcount for this team has not changed in over four years flush though the employee base has grown by greater than 30%.Most key programs atomic number 18 linked to the companys diversity strategy to found valueand manage a diverse go awayforce that reflects the rich mix of persons available in the Communities. The HR team regularly attends diversity recruiting c arer fairs and supports both local and national brasss committed to the development of women and minorities.HR has sought to automate and introduce electronic processes, in order to streamline its various staff function. These accept the introduction of an electronic company wide web based Internal Career O pportunities Program (ICOP), that provides employees anytime/anyplace access to available opportunities within the company.Employees can search, apply and be notified of open positions within the organization by logging on to the site. Managers, can also initiate the troth process and receive approval electronically via an on-line employment requisitioning process. The major obstacle that needed to be addressed in the alignment of these two major programs was accessibility, communicating and education. Employees were support to submit their personal profiles so that they could receive automatic notifications from the dust 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 in the beginning the need exists. Recruiting, sourcing and training are done 20 weeks before the individual is expected to begin their career as a service manager.By acce ssing the HR website, both employees and Managers can obtain a wide variety of information geared to keep their employment information current, provide easy access to employment information (employee handbook) as strong as provide access to benefits information and employee centered programs. Online access to the HR Web is available from home and take in to all employees.2.2 VRIO Framework AnalysisValueFedEx managers stress that they are a people-first organization. The corporate school of thought statement sums up their view of the source of competitive advantage muckle-Service- remuneration. FedEx observe a long time ago that customer satisfaction unfeignedly 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.RarenessFedEx value and capitalize on the differences of their employees with diversity education programs such as Gender Speak, Delive ring Diversity, Introducing Diversity, and Valuing Differences. oneness of its most successful programs RESPECT provides a process where employees can work together to resolve their differences. Therefore, it would reckon tremendous potential 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 fantastic public-private collaborationism designed to advance world-class interdisciplinary research and introduce a new multiplication of highly skilled graduates to the workforce. The company has more than 219,000 employees globally and expects the alliance will help develop a highly skilled recruitment pool.OrganizationFedEx is committed to fostering an employee focused culture. It has a well-developed and thoroughly deployed management evaluation system, which involves a survey of employees, analytic thinking of each work groups results by the wo rk groups manager, and a discussion between the manager and the work group to develop pen action plans for the manager to improve and become more impressive. Data processed are aggregated at all levels of the organization for use in policymaking. Employees are free to appropriate their opinions with management and in turn, work towards the resolution of internal issues within their department by participating on their action planning teams.3.EMPLOYEE SKILL, MOTIVATION, commercial enterprise DESIGN & WORK STRUCTURESFedEx has a clear goal to have people who are committed, motivated and well trained. Here are both(prenominal) 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 better 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 operating to the companys global standards and values.3.2 FedEx Compensation & Rewarding SystemFedExs tribute program is driven by goal sharing. This program encourages employees to achieve strategic goals by basing individual subsidy levels on corporate and business unit goals, up to 10% of an employees total payment. FedExs verbal expression for calculating bonuses includes corporate variables such as contributed operating margin, corporate ROE, net sales, customer returns, shipped kilometers and total unit cost.Putting people first means that FedEx is dynamic in both reward and recognition. For hourly paid staff the pay is geared to individual performance. However, to encourage good team working, there is also a team based lift out 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 laborious performance management and compensation system. If a person fails in his performance, consequently the person does not get disciplined, but he gets pulled into a constructive 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, project management skills, even something as basic as presentation skills. Employees can log in and take any course, but need to pass.3 .4 Staff 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 increased from 97% to 98%.4. PRODUCTIVITY, CREATIVITY & DISCRETIONARY travailBy 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 name is a powerful sales and marketing tool. Among the many reputation appoints FedEx conventional during 2004, FedEx ranked 7th in corporate reputation on The Wall Street Journals Harris Interactive/ theme Institute RQ Gold Survey, and for the third consecutive year, FedEx ranked in the top ten of FORTUNE cartridge holders Americas Most Admired Companies and Worlds Most Admired Companies lists.FedEx is the only transportation company and one of the very few companies ov erall to rank this highly in all three reputation surveys. FedEx ranked highest in customer satisfaction in the University of Michigan Business inform National Quality Research Centers American Customer Satisfaction Index in the parcel delivery category. Wal-Mart Stores, Inc., the worlds largest retailer, also selected FedEx as the recipient of its Carrier of the Year award. BusinessWeek accept FedEx Kinkos in the magazines Web Smart 50 physical composition 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 industry and technological innovation, but also in social and environmental responsibility and corporate governance. Along with a strong reputation among customers and the general public, FedEx is wide acknowledged as a great place to work. In 2004, FedEx was listed among FORTUNEs 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 apply FedEx it strong reputation. In addition to superior physical and information networks, FedEx has an exemplary human 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 annunciate and Humanitarian Award programs, FedEx recognize and reward employees who enhance customer service and promote human welfare.5. meliorate OPERATING PERFORMANCEAs discussed previously, new strategic constituent for HRM is very significant 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 pay and benefits. Many Special Awards to recognize employees performancei) spat Zulu award for outstanding performance beyond normal job expectations.ii) Golden Falcon award for prodigious customer service.iii) Humanitarian Award recognition for human welfare above and beyond work or community standards.iv) Star/Superstar Award a lump sum merit based award for top performers.v) Five Star Awards the highest award for enhancing service, profitability and the spirit of teamwork.Deadly combination and powerful association are terms to describe the effects of an organization policy of promotion from within on bulletproof 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 properly is to adopt system perspective, which means business priorities drive the development of the HRM system.6. PROFITS AND GROWTH etymon on the FedEx second take outs Fiscal 2005 financial report (six month s 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 financial analysis-i) RevenueThere is a 23% Revenue growth compare to the last 2nd stern fiscal year 2004. The revenue has increased 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 CostHowever, 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, despite the roaring up of oil price, which is also one of the major operating cost, in this year. Their prof it 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 much 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 much better. This has shown the efficiency and effectiveness of the HRM system.7. MARKET VALUEFrom the field of battle of FedEx Corps HRM system, it is undoubtedly that its HRM has strategically adopted high performance work system that creates real shareholder value. Such system has strengthened FedEx HR to become a strategic core efficiency 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 increased profits and growth as shown in the companys financial 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 approximately 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. CONCLUSIONFor 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 turned 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 move 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.Leveraging on PeopleSoft HRMS solution to efficaciously manage their human capital, it provided FedEx with the scalability and functionality they needed, to enable FedEx to move towards nice 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 BIBLIOGRAPHY applicable 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/articles/19/0C029319.as p? role=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 counsel Page 2 of 12