FedEx Express invented express distribution and is the
industry’s global leader, providing rapid, reliable, time-definite delivery to
more than 220 countries and territories, connecting markets that comprise more than
90% of the world’s gross domestic product within one to three business
days. Unmatched air route authorities and transportation infrastructure,
combined with leading-edge information technologies, make FedEx Express the
world’s largest express transportation company, providing fast and reliable
services for more than 3.6 million shipments each business day (FedEx, 2020).
FedEx Corporation was featured in the Fortune magazine
in 2003, as one of the 100 companies which are best companies to work for in
the US. They were in this list for five years consecutively. The company had
received a high rating in the areas like compensation, employee turnover,
morale and work diversity (Prashanth, 2003).
FedEx pays particular attention on the role of “people”. Here people not only refer to their customers. FedEx also puts their employees on the very important position. With the people-oriented concept, FedEx implements P-S-P management. PSP is the circulation system among people-service-profit (Peng, 2013). The PSP system cycle reflects the principle of FedEx, “employees first”, at any time. PSP represents a closely related relationship between these three. It also can be seen as a three-legged stool, and each is indispensable (Shi, 2015). It can be represented by the following figure:
Figure 01: Schematic Diagram of the
PSP culture
Source: (Shi, 2015)
FedEx has taken a number of measures to realize the
goal to “treat employees as their customers”. They think only when the company
treats the employees well will they be willing to pay more efforts to provide
customers with better service and then the company can make more profits, and
every employee in the company can benefit from it (Birla, 2006).
Video 01: 7 Guiding principles at FedEx via Fred smith
Source:
(Croitor, 2017)
According to Shi (2015), FedEx will use part of its
profits to award those who make outstanding contributions to the company and when
the company reaches a predetermined profit target, it will increase the distribution
of red envelopes with money; sometimes such incentives can reach 10% of
employees’ salary. FedEx also sets various bonus items. Reward involves many
aspects and the content of awards is multifaceted, including: Bravo Zulu, Five Star
Award, Humanitarian Award and Service Award. In order to encourage the social
responsibility of employees, FedEx also sets the Samaritan Award and Public
Welfare Interactive Award.
List of references;
· Birla, M., 2006, FedEx—Innovation creates
competitive advantages (Qi X. Y. & Zhang O. et al., Trans.). Beijing, China:
Electronic Industry Press.
· Croitor, D 2017, 7 Guiding Principles at
FedEx Via Fred Smith, viewed 03 December 2020, < https://www.youtube.com/watch?v=JxUjZokXVeQ>.
·
FedEx, 1995-2020, Company Information
·
Peng, JF., 2013, FedEx—Owner of “fast”
logistics. Beijing, China: Mechanical Industry Press.
·
Prashanth, K., 2003, Human Resource
Management: Best Practices at FedEx Corporation.
·
Shi, C., 2015, The Implications of FedEx
to Human Resource Management of Logistics Enterprises in Beijing.
Tesco, the biggest private sector employer in the UK considers screening candidates as a very important part in their selection process to ensure the best fit with the job requirements. Tesco allows Line managers for the job on offer take part in the interview to make sure that the candidate fits the job requirements. Candidates face these interviews after they are approved by the internal assessment centres (Times Newspaper Limited and MBA Publishing Ltd, 2000)
ReplyDeleteAgree with you, FedEx Express invented express distribution and is the industry's global leader. It provides rapid, reliable, time-definite delivery to more than 220 countries and territories. FedEx Corporation was featured in the Fortune magazine in 2003, as one of the 100 best companies to work for in the US (FedEx, 2020).
ReplyDeleteAdding more to your comment, FedEx was among the first few companies in the world to develop a formal HR policy that viewed employees as invaluable assets. The company realized the necessity of developing rapport and building trust with its employees in order to deliver value to customers consistently. To this end, it came out with a people-service-profit philosophy (PSP) (Refer to Exhibit 1) that recognized the value of employees as one of the key elements of company success (Rao, 2017).
DeleteIt is a topic which has been discussed and interpreted in many ways in every corner of the world. Beh and Loo (2013) mentions that best practice methods are key tools in maintaining competitive advantage in an organization. Additionally, performance appraisals and internal communication are some important elements of HRM best practice.
ReplyDeleteThe strategy will express the types of performance and the levels of performance it wants to employ to run in a organized and effective way. This is as a result of business strategy, organizational behavior and diving individuals being the benchmark for the reward strategy development. The contingent nature of a reward system should not be looked at as a set of compensation practices at all. Nonetheless, it should be treated as one way of thinking about role of a reward system in a complex organization setting. This goes against an assumption that is often made to mean that certain best practices have to be incorporated into an organization’s approach to pay (Simons, 2002).
DeleteThe organization should identify where competitive advantages can be gained, where your strengths and opportunities lie. If there's not a great advantage for you, nothing forming a part of your strategy it may be best to go with the best practice for that business aspect(Stoller & Ruoff, 2010).
ReplyDeleteCoff (1997) asserts that there are mutually compatible bundles of human resource policies that sustain high standards of motivation of employees and also their commitment that has a positive impact on the performance of the organization. This is the approach that advocates of best practice say it stands for. However, there is no common ground on which these practices are, on a general scale they are composed of: extensive training, selective hiring, and structure to encourage employee’s participation, employment security and pay policies which lead in relation to industry competitors (Lengnick-Hall & Lengnick-Hall, 2003).
ReplyDeleteBest fit models tend to be static and the processes of change are not taken into account. They neglect the fact that institutional forces shape HRM— employers cannot be assumed to be free agents capable of making independent decisions. Best fit is often said to be better than best practice, but with reservations this statement can only be accepted (Armstrong,2010).
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