Human Resource Management

SUBMITTED TO: Ms. Shumaila Naz SUBMITTED BY: Muneeb-ul-Haque Haroon Waheed Khan Zain ul Hassan Faisal Ehsan Hassan Ansari Ubaid Rauf BTC 10155 BTC 10164 BTC 10138 BTC 10134 BTC 10174 BTC 10140

PROGRAM & SEMESTER: B.S Telecommunication / 6th semester

TOPIC: WAC on Best Practices at FedEx Corporation

Contents
Introduction ................................................................................................................................................... 3 Background ................................................................................................................................................... 3 HR Policies ................................................................................................................................................... 4 People Service Profit (PSF) .......................................................................................................................... 4 Survey Feedback Action (SFA) .................................................................................................................... 4 Personnel Records Information System (PRISM) ........................................................................................ 4 Career Center ................................................................................................................................................ 5 Customer Service Representatives (CRSs) .................................................................................................. 5 Leadership Development Institute (LDI) ...................................................................................................... 5 Leadership Evaluation and Awareness Process (LEAP) .............................................................................. 6 Job Change Applicant Tracking System (JCATS) ....................................................................................... 6 Succession Planning Executive Education (SPEED) .................................................................................... 6 Employee Communication............................................................................................................................ 6 Service Quality Indicator (SQI) .................................................................................................................... 7 Employee Retention ...................................................................................................................................... 7 Rearwards and Recognition .......................................................................................................................... 7 Problem and Issues ....................................................................................................................................... 7 Analysis ........................................................................................................................................................ 8 Recommendation .......................................................................................................................................... 8 Conclusion .................................................................................................................................................... 9

Introduction
FedEx (Federal Express) Corporation was established in 1973. Company comes up an entirely different and new idea to provide services likes delivering courier, goods and packages all over the world with safe and secure. FedEx was one of the company among 100 others companies which was listed in 2003 among the best companies to work for in the US and sustained his position for 5 years. FedEx received high ratings in areas like compensation, employee turnover, morale and diversity. The companies were rated by the survey evaluated from their employees who have trust in their company, having pride of doing work and sense of camaraderie. FedEx was the first company who developed a formal HR polices viewed from their employees to sustain the long term growth and profit. During its three decades in the business company developed an innovative HR practices. Company develops a communication program named as Survey Feedback Action to encourage their employees to give their views about the management policies. Another program developed named Guaranteed fair Treatment Procedure to ensure that each employer will be treated equally. FedEx also developed a Job Change Application Tracking System for employees to provide their temporary employees the opportunity to attain permanent position in the company. The company also developed an awareness and learning program for their employees to attain position in the company like managerial post. FedEx developed a succession planning program for their senior management to give them a chance to seek top position in the company and it also provide a training programs for its employees form the best institutes. FedEx achieved its high ratings because its considered a friendly employee company and this was achieved by its innovative HR polices.

Background
In the late 1960s, Frederick W. Smith, a young businessman knowledgeable of the air transportation industry, conceived the idea of Federal Express. Upon investigating methods of airmail movement, he discovered that the Federal Reserve System was in critical need of a method to rapidly transfer checks among its 36 branches, preferably overnight. In April 1973, Federal Express formally began operations serving 25 cities. With capital funding of over $90 million, it was the largest venture capital startup in the history of any business in the United States. The hub sort facility was completed in May and by the end of the year, 44 vans were on the road. Employees numbered 389 (History of FedEx, 1996).

By the early, 1980s FedEx was emerged as one of the leading air cargo carries in the US. In 1983 its revenues crossed the mark of $1 bn and reported the net income of $88.93 bn and becoming the first company who generate the net income over $1 bn within 10 years Over the years it continued its significant growth in revenues. In 1994 it earned revenues of $10 bn. Among the most significant companies FedEx launch its own website to provide its customer an easy path to do all the dealings online. In 1998, the Federal Express Corporation was renamed to FedEx Corporation. In 2003, for the ending of financial year company net income reported of $22.5 bn. This position was attained by the FedEx due its innovative HR polices and dedication towards its employees development.

HR Policies
Since its existence FedEx is developing and implementing employee friendly policies. These policies have helped company a lot in earning enormous repute in the market. Details about the policies and difficulties faced while implementing them are given below:

People Service Profit (PSF)

In 1973, FedEx developed People Service Profit according to this philosophy company took proper care of their employees by providing them such packages which would encourage them to do work more passionately by this company received a turnover in its benefits by gathering more profits. The employees are happy because they are being taken care of by their company, which results in high morale, continuous recruiting, and high retention.

Survey Feedback Action (SFA)

In 1979 FedEx introduced another system to strengthen management-employee relationship. According to this system the employees of the company were divided into groups each having a representative, each representative is given a questionnaire in which questions about management are asked and then some suitable action is taken in the light of the answers of those questions.

Personnel Records Information System (PRISM)

FedEx developed a personnel Records Information System online database system. This service provide by the management for their employees to generate their database and also upgrade it. This system was beneficial for the company because they have the record of their employees and can have

knowledge of employees skills which led them to easy task of giving better position in the company. The Employees database base on its performance, skills and development and training programs.

Career Center
Increasing number of job application received by the HR department its a difficult task for the HR department to see all the application and select which are useful for them. FedEx change the old concept of manual handling and developed the new online system of job application form. Its an easy way for applicants to drop their CVs. Its website shows all policies of the company and terms that can eligible for the job. It gives criteria of job who can apply and it portioned its all department , if applicant want to do job in engineering department it fill the form of that particular department or ticked the option of that department. By this system company find huge benefits in terms of hiring a eligible and qualified person for job. It also makes the easy task of screening the application and saved a time and energy.

Customer Service Representatives (CRSs)

FedEx developed special training programs for their employees who had a direct interact with their customer. Customer calls and communication with the customers is very important for FedEx since they operate in the service industry. HR should constantly be ensuring that CSR people are well trained and possess excellent communication skills amongst other competencies in order to keep the customers happy. A customer satisfaction report or a report prepared by immediate supervisors of the CSRs could be maintained to track their performance. The evaluation report maintained by supervisors could be made weekly and could be based on the customer satisfaction reports that could also be a weekly process. The evaluation could be done on various parameters such as greeting customers well, politeness, patience, handling customer complaints, good feedback from the customers etc.

Leadership Development Institute (LDI)

As technology is progressing at very rapid rate, with each passing day something new appears in the market. To stay up at the top companies must have to cope up with these challenges, and for that they must train their employees. FedEx conducts continuous training programs for employees across all levels. These training programs are to ensure there is continuous growth and development of their employees. The effectiveness of these training programs need to be continuously tracked to see how many of them actually have an impact on the employees and how many of them are just a waste of time. Records of post training performance and tests that are conducted post training should be evaluated

from time to time for the same reason. These records are very important for a company to keep to see whether time, money and other important resources that are being invested into these training programs are being utilized effectively or not.

Leadership Evaluation and Awareness Process (LEAP)

This program was implemented to improve leadership effectiveness and retention at FedEx. LEAP was made compulsory for any employee who wanted to progress to management level positions. The purpose of the program was to evaluate a candidates leadership and ensure that he/she carefully considers his/her interest in and aptitude for leadership.

Job Change Applicant Tracking System (JCATS)

That program enabled the temporary employees at FedEx to apply for permanent jobs. Very Friday, available job positions were posted online and the temporary employees posted their job applications. Their performance that was tracked through FedExs HRIS, PRISM was scrutinized and the employee that got the highest ranking got selected.

Succession Planning Executive Education (SPEED)

In these program seniors members and vice presidents evaluate and ranked the employee who can replace them. Such employee were offered such a training program and suggestion to improve the area which they lack who likely to replace them.

Employee Communication
At FedEx, two-way communication between the management and the employees was encouraged. The employees were allowed to freely express their opinions about management's policies.

The company also devised mechanism to address and resolve employee grievances, apart from employing a formal communication system to inform employees about the major events taking place in the company. The employee communication programs implemented by FedEx included the SFA program, Guaranteed Fair Treatment Procedure (GFTP) and Open Door Policy (ODP).

Service Quality Indicator (SQI)

FedEx developed a online program for their customer satisfaction to evaluate and ranked their employees who deal with the customer.

Employee Retention
Employee retention was a significant aspect of FedEx's HR policy. Commenting on the significance of retaining the employees, McMahan said, "In our competitive marketplace, employee loyalty tends to be low. If employees don't like their jobs, they simply walk across the street and find a new one. It's important to keep your people happy and to create an environment where they want to stay."...

Rearwards and Recognition

FedEx Corporation was one of the best company works in the friendly atmosphere. It took great care of its employee. It not only gives the salary to its employees but also give the rearwards according to their skills. Who work in effective way have chance to attain the better position in the company. Over the years, FedEx developed several innovative HR programs that served as a benchmark for many organizations, particularly in the service industry. These programs not only yielded financial benefits for FedEx (through improved employee productivity levels), they also enhanced the reputation of the company as an employee-friendly, service-oriented organization. FedEx's employee-friendly policies resulted in very low turnover rate. In 2000, the turnover rate was estimated to be below 6%, while the industry average was 20%...

Problem and Issues

FedEx is the leading company of the world. They are working in a atmosphere where they get huge gain and profits. But some of the area of company had deficiency which they have to overcome. The following areas are lacking. Clashes between the employees Economical issues Customer satisfaction Job burden on employees ( work for 24 hours)

Analysis
FedEx was one of the finniest companies which provide the reliable services of transporting the courier, goods and packages. FedEx provide the safe and secure transporting the packages. Companys employees show a great devotion to words its company in the era of economical crisis faced by the company. FedEx gain huge amount of profit achieved by their better HR policies. Their management proposed better policies and implemented them. This achievement also made by them by developing a friendly relationship between management and employees. In order to develop a various program lead them to a success. FedEx training and learning programs arranged for their employees and give better opportunity to their employees to attain the better position this type of policies made by the management leading them to sustained the huge market share. In order to achievement but some areas company are lacking like clashes between employees and economical issues they have to come up with ideas to overcome these issues to sustained their position in the market.

Recommendation
Work at FedEx is definitely challenging as they are in a fast business that demands a lot of time and effort from the employees. To stay ahead of its competitors, and being in the service industry, employees have to continuously look for ways to innovate and put that extra effort into ensuring the best quality services to its customers. All this calls for a lot of hard work, dedication and time from the FedEx employees. This might mean that they have to put in a lot of extra hours into their work. Since the case also doesnt say much about FedEx ensuring work life balance for its employees, Id like to use this point to leverage my proposition as a competitor. As per my analysis of the case, FedEx has taken care of pretty much everything to keep its employees satisfied and loyal to the organization. As a competitor, in order to attract talent from FedEx Id have to use one point in which I feel like they fell short. In this case, Ive observed it to be work life balance and as a competition would approach FedEx employees with a promise of ensuring the perfect balance between work and family/ personal space. They can also improve the services by overcome these factors: Work on the areas of the customer satisfaction Better packages to the employees to overcome the clashes New hiring to release the job burden Provide health facilities to their employees Better policies to overcome the economical issues

Conclusion
FedEx was one of the companies who come up with the idea of transporting goods. First company to form his informal HR policies. Their better policies made them to achieve the huge market share. Their friendly relationship between management and employees made them to achieve the success. Employees are the essential part of the any company by building a friendly environment company can achieve the success and huge profits. FedEx working for the development of their employees and organizing training and learning program lead them to sustain the position in the market.