Assignment 1: Need for Human Resource Management

Part A

Human Resource is every manager’s business. Why is the management of human

resources key to every management job in every organization, regardless of whether there

is a human resources department in the organization? (20 marks)

Usually in the small businesses or start-ups, the founder or the existing managers in the

organization may take the responsibility to hire the employees for the organization, further they

have to manage, train and develop the employees. Similarly in the large organizations all the

employees are considered as the line human resource managers. Every manager has the

responsibility to manage the existing employees and train and develop their subordinates. Also

the managers have evaluate the employees’ performance by assessing their performance and

identify their strengths and weaknesses. Also the managers have to identify the training needs

of their subordinates. The managers are responsible for the performance of their team. It’s the

responsibility of the managers to recruit the employees, then lead the employees, facilitate them

in the organization then motivate and develop them.

When the interviews are conducted by the managers they are more knowledgeable person and

they can easily asses the abilities of the potential candidates. The managers also develop the

training programs and resources to further sharpen the abilities and competences of the existing

employees.

For employee motivation the managers ensure that their employees are values and involved in

their job responsibilities. The managers have the responsibility to engage and commit the

employees to enhance their performance and also the organizational performance.

The managers in the organization should remember they should not leave the career

development of the employees in the hands of human resource managers. The managers should

personally take interest in developing the employees. They should provide coaching to their

subordinates. In my organization my manager constantly challenges me to take the

responsibilities and guide me to fulfill those responsibilities. My manager creates the growth

opportunities for me. This makes me more motivated to do the hard work.

Along with the line and staff managers, the human resource managers play an active role along

with them. However, the managers should be leaders and drive the organization. The managers

in the organization should consider that their teams are their responsibilities and should be

responsible for their career progression and well-being within the organization. The managers

who rely on the HR managers for these tasks are not worthy of being called a manager, because

every manager should be an HR manager.

HRM practices at FedEx:

FedEx has the people-oriented corporate culture. The organization is specifically focusing on

the people. FedEx manages the human resource by developing several human resource programs

which are effective for human resource management. Some of these programs are mentioned as

following:

FedEx PSP Approach:

The founder and the CEO of the business has developed and implemented FedEx’s people-

service-profit approach for managing the human resource. This approach explains that when

FedEx will be able to take care of its employees then they will provide efficient service to the

customers and further the company will be able to generate profits.

SFA program at FedEx:

SFA is a survey feedback action program which is used for evaluation of the employee

performance. This helps the management to take decision about the promotions of the employee.

The employees in the organization are asked to participate in the online survey. The results of

the survey identifies the problems within the department.

LEAP program:

LEAP program is known as the leadership evaluation and awareness process, this process

encourages the non-management staff to learn new skills in order to promote to the managerial

level.

Employee Communication Program:

For resolving the employee grievances, FedEx developed a system. During this program the

employees are informed about the major events taking place in the company.

JCATS:

This a system known as online job change applicant tracking system (JCATS), where the

employees are allowed to post for any new job available to them.

Recognition and Reward Program

FedEx rewards employees for their work with awards such as the ‘Bravo Zulu’ and the ‘Golden

Falcon Award’.

FedEx is an example of an organization that has created an effective HR strategy that supports

productivity and profitability.

Part B:

Introduction: FedEx Corporation is known for overnight delivery around the region. The company

was established in 1971, and now nearly five decades that it is continuously dominating in the

market. The business has restructured its business operations according to the needs and
requirements of the 21st century. It has five major subsidiaries including FedEx Express, FedEx

Ground, FedEx Freight, FedEX Trade Network and FedEx Customs. FedEx is operating in 211

countries and is one of the largest courier company in the world. FedEx uses its airplanes, road

transport and electronic technologies to speed up the transportation, therefore the business and

individual customers are facilitated by having timely delivery of goods to distant places.

The mission of the business is to produce high financial returns to its shareholders. Also the

business objective is to provide value-added logistics, transportation and related business services

by focusing in operating companies. The business makes all possible efforts to meet the

requirements of the customers in each segment where the business is performing its operations.

FedEx will strive to develop mutual relationship with its team, shareholders and suppliers. The

corporate activities are conducted ethically and professionally.

SWOT Analysis:

Strength:

Following are the strength of FedEx Company:

1. The first strength for globalizing is strategic acquisitions by the company. The company is

strategically acquiring the organizations which are offering the individual pieces needed

for global distribution. Global distribution is essential for FedEx for making itself globally

recognized.

2. Corporate culture and workforce is also considered as one of the strength of the company.

3. The company is providing best training to its employees. Also the compensation provided

to the employees is competitive.

Weaknesses:

The weaknesses of FedEx Company:

 1. There is competition in heavy weight distribution market. Only by air is not the only source

for distributing the heavy goods. There are other means of transportation for transporting

the heavy goods especially by sea. Also by sea is a cost effective method of transporting

the goods.

2. The fixed cost for global expansion is higher. The global infrastructure is difficult to build

and maintain. This infrastructure includes:

Threats:

The threats FedEx is facing during making the company globally recognized are as following:

1. The biggest threat for FedEx is its competitors which include US Portal Services, UPS,

Emery, DHL, RPS, electronic-document delivery services

2. The economic conditions of different countries are in crisis.

Opportunity:

The opportunities available to FedEx are as following:

1. The company should invest in IT. The company should enhance its IT network. The

advancement in information technology will support the process of globalization of Fed

Ex.

2. The company has to improvise its operations to provide better coverage in order to compete

with UPS and DHL. The company has many available resources and many opportunities

which will give it competitive advantage.

3. The company has to make deals with companies providing fuel. By making deals with fuel

companies FedEx will be able to get cost effective fuel. It will reduce its overall cost and

FedEx can charge competitive prices for its services.

Business Challenges:
There are some industry changing trends and challenges in the business environment of FedEx,

which may benefit the business or harmful for the business in long run. Some of these challenges

are discussed as following:

 The first challenge for the business is fluctuating oil prices in the international market.

Recently it has been observed that the oil, gasoline and jet fuel prices are decreasing in the

market, these low oil prices would be benefit for the business. Oil is a large import price

for the operations of FedEx. The decrease in oil prices will facilitate the business to

decrease its prices.

 Technological innovation is also a challenge which is being faced by this business. The

advancement in technology can be both the opportunities and threats for the business. This

challenge can either disrupt the market or can reshape the competition in the market.

Internet of things (IoT) is known as the network of devices like vehicles and home

appliances which contains the electronics, software programs and sensors etc., allowing

the things to connect and interact and exchange the information. Currently the organization

is facing the competition in two ways firstly from the local transportation companies which

are providing the local services in a reliable way and the second way of competition is the

competition from high volume shippers like Amazon that are providing integrated transport

and are low-cost competitors. By adopting the new technological advancements the

business is able to gain the competitive advantage against its competitors.

 The online retailing business has enhanced in the global market. This has enhanced more

business opportunities for freight, shipping and courier companies. Therefore, this

challenge of the global market is an opportunity for the FedEx.

Key goals of the organization for next year and how it will achieve those goals through effective

management and its people:

The owner and the CEO of the company Smith mentioned that there are three strategical goals for

the business which would be the critical success factors for FedEx business in future. These goals

include speed, reliability and customer service. Smith strongly believe that the express industry

requires the use IT to provide the customers real time information about the movement of their

cargo. The supply chain of FedEx is recognized as the global leader of integrated logistics

management.

Smith has a strong believe that in a service oriented organizations like FedEx it is essential that

business should have highly committed employees. If the employees are not motivated and

committed then it is not possible to deliver the service according to the requirements of the

customers. FedEx is a very competent organization in terms of technology and human resources

which is the success factor for the business. The strategic objectives of the business are based on

three principles:

1. The business is operational independently, FedEx focuses on independent networks for

meeting the variant needs of customers.

2. All the subsidiaries of FedEx are competing collectively and they stand as one brand

worldwide and are involve in collective bargaining.

3. All the stakeholders are working with collaboration. For developing loyal relationship

among the workforce, investors and customers, the business is focus on strategic approach

for management.

Will changes in staffing level needed? Will employees with new skills required?
For achieving these future objectives, it is significant for FedEx to train the employees and make

them learn new skills related to IT. The current and future objectives of the business depict that

business is focusing on recent global trends related to technological advancement. Therefore, it is

obvious that FedEx has to improve the skill level of the employee. It is an era of automation and

mechanization, therefore, there is no need to increase the level of staff.

Part C:

Legal Environment:

Considering the legal environment for Fedex, in 1926 the Railway Labour Act was introduced,

this was implemented in to order to govern the labour relations in the railway industry. This law

was introduced in order to avoid labour disruptions particularly during the war. Later in 1936, the

law was amended in order to apply it to the airline industry. The major purpose of this law is to

minimize the number of labour strikes by bargaining with the other party, engaging in arbitration

and resolving disputes of labour force. Due to these two laws, there is an irregularity in the parcel

delivery business, therefore United Parcel Service is under the jurisdiction of the National Labour

Relations Act and the non-unionized FedEx is under the law of Railway Labour Act. These acts

are for labor.

Regarding the equal treatment with the employees, it is important for any business to provide equal

treatment to the employees working there. Some of the policies which FedEx has to abide by are

as following:

1. EEO: It is the policy that emphasize on equal employment opportunity to the employees in

the organization. FedEx have to provide equal employment opportunity to the employees

and have to provide fair chance to apply to a job post.

 2. Policy for equal pay: This policy is adopted by FedEx so the employees should get fair

salaries. In FedEx the employees’ salary is decided on the basis of experience, skills and

abilities. This policy ensure that there is no discrimination among the employees of FedEx

in terms of salary.

3. Abide by the laws and legislations: Organizations should ensure that all the employees in

the organization and also the policies in the organization should abide by the given

legislations of the country.

For equal employment opportunity at the workplace, FedEx is following the legislation of

opportunity 2000. The main objective to this initiative is to provide work life balance to the

employees. This initiative helps the employees to manage and balance the activities related to

workplace and personal life.