MM5002 People in Organization

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Haidir Afesina Hendra Winata Mita Listyatri Andek Prabowo Aprian Eka Rahadi Chairunnisa Mirhelina Franciscus Xaverius Kresna Paska Agung Indri Pramantyo

United Parcel Service (A)

Fact#1

UPS transformed from messages to package delivery,

then become international air transport company,

and now as a logistic company

Outline

Mileston e

Challeng e

Industry Analysis

HR Analysis

Recomm endation

HR Practice s

Challenge
UPS with its famous policies ON THE JOB TRAINING & INTERNAL PROMOTION make PEOPLE as COMPETITIVE ADVANTAGE

Select and Hiring outsider as an IT expertise or developing within?

People Lagging of Computerization & IT Expertize

Organization

Technology

Strong culture Operation as a key

Competition in IT

Decision
We need to focus on how we bring outsiders to UPS as well as the extent to which we should do it
URGENTLY needed
EXTERNAL

RECRUITMENT

Instant process by having Expertise

IT as competitive weapon for the future

IT as a value creation

Customer satisfaction i.e. tracking package

Milestone
UPS Founded by Jim Case under name American Messenger Company Begin use of rail Purchase 1st B757 jets

Common Carrier service The Policy Book

Next day air service in the U.S

T Ford

1907

13

19

22

29 37 61 `66

76

82

87

Labor Union (International Brotherhood of Teamster)

International expansion

1st Logo

2nd Logo

3rd Logo

HR Practices

Unionization was inevitable in the future and that it would produce a more cooperative relationship by having unionization The unionization in UPS create some assurance for the employee that they will get their rights and treated fairly The policy book was created to standardized the policy and the system. It is revised every few yeas by a management committee. The vision of Jim Carrey to make UPS the largest company by expand internationally as they already become a superior one in domestic market UPS also have the same race proportion on their company (Hispanic, white and black)

Lesson Learn #1

UPS is the largest private package delivery firm in the world that unionized labor successfully managing people diversity and becoming a job magnet with their people centered policy

Business Strategy
Arenas
Air and Ground Firm All address Low cost Strategy
Rivalry

Vehicle Firm Keep the cost low (labor) Package car Strategy 89 aircrafts Strategy Strategy i.e. work simplification feeder truck Rivalry leased 140 Rivalry Rivalry
had 13 B757
Firm Differentiator

Staging Firm

Economic Logic Firm

Planes Internal development

all address in the USA Strategy Daily pick up and Rivalry delivery service to retail and commercial

Industry Analysis
International Expansion Domestic superior
Chance Firm Strategy Rivalry

High competition in domestic make UPS should Fedex have differentiate overnight service

USPS invest on ground freight

Advances resources: Invest on people and technology

Factor Condition Demand Condition

People is getting more demanding for using package service

Technology in Airline industry i.e. Boeing

Related Supportin g Industries

Governmen t

Deregulation from the government Bring the competition up.

Analysis
Hire Within
Organization Fit Service Culture (Know the operation) Promotion within policy

Hire Outside
Expertise Ready to work (build the IT system) Fast Process

Takes time to develop

Slow

Culture Fit

Not expertise
Costly

High compensation
No knowledge about operation

HR Practices How to make the IT person blend to the UPS culture ?

Ensure the new people get the injection of brown blood

(familiar with organizational culture). people)

Join the boot camp (follow all the procedure as the new
Rotation through the organization to get know the

operation working system and condition i.e. helped out in the field IT people will the system that really helpful otherwise poorly design

Have a regular meeting and ask the operation people advice

HR Practices

Developed a very strong culture of trust and independent action among its regular workforce, managers and package car drivers have a clear mandate to do whatever it takes to get packages deliveries on time and in a good shape (Empowerment) Entry level (package car driver) are previous part time who work during school holiday n enjoy the feel of the place

UPS provide a training program and curriculum to ensure that the employees handle the job properly i.e. package car driver has a proper training how to handle the package

Lesson Learn #2
UPS build the company through growth by knowledge by committing to talent management, providing training program and create high involvement organization .

HR Practices
As a start up company, UPS is offering their

employee stock plan, so that they feel the ownership of the company
Both of part time and full time have the same

full benefits i.e. health benefit

Lesson Learn #3
UPS hold people accountable by offering a lifelong commitment with profit sharing and stock ownership plan, providing benefits to all employees and giving promotion within policy
.