Research Articles Base: Federal Express

Federal Express SWOT

FEDERAL EXPRESS BRIEF BACKGROUND[1]             Owned by Frederick W. Smith, the company was incorporated in June 1971 and officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. It soon entered its maturing phase in the first half of the 1980s and grown to become the largest operating company in the FedEx family, handling about 3.2 million packages and documents every business day. During the fiscal year 2006, it netted a revenue of .4 billion (includes FedEx Trade Networks) and is currently employing more than 139,000 employees worldwide, serving in more than 220 countries and territories and 375 airports worldwide. is the current President and CEO of the well-known express transportation company. Since its inception, FedEx had transformed itself from an express delivery company to a global logistics and supply-chain management company. SWOT ANALYSIS STRENGTHS             With more than three decades of experience in providing logistics services to individuals and fellow businesses, FedEx has the strength of dependable know-how in the delivery business. They changed the nature of delivery business by reconfiguring outbound logistics (a primary activity) and human resource management (a support activity) to originate the overnight delivery business, creating value in the process. Convinced that customers would value not only overnight deliveries but also the ability to track them, FedEx developed a proprietary computerised tracking system called Customer Oriented Services and Management Operating System, or COSMOS (Hitt,  2003), which introduced computer technology to the shipping industry in previously unheard-of ways and permanently altered the nature of competition within it. Over the years, the company had also invested heavily in IT systems, providing them with a powerful technical architecture that had the potential to pioneer in Internet commerce. WEAKNESSES             OPPORTUNITIES             The firm’s main opportunity is to use cooperative strategies to create value for a customer that exceeds the cost of constructing value in other ways (2001) and to establish a favourable position relative to competition. Living examples are the two that FedEx already engaged in. In an alliance between the firm and the U.S. Postal Service (SUPS), the company roughly transports 3.5 million pounds of SUPS packages daily on its planes and will earn FedEx more than billion – .3 billion in transportation charges and 0 million in drop box revenue in the seven-year deal with SUPS (Ulf elder 2001). The second alliance was with worldwide professional services firm KPMG, which intent is to deliver total, end-to-end supply-chain solutions to large and mid-sized companies. Another opportunity seen for FedEx is the opportunity to take advantage of the recent develope THREATS             Their main competitor in their line of business is UPS, and the two companies compete directly against each other in several product categories. They are locked in fierce battles to dominate not only package delivery but e-commerce and logistics markets as well. Although competitive actions and competitive responses take to build or defend a firm’s competitive advantages and improve its market performance (2003), the presence of competition, especially a tough one, is sometimes detrimental to the growth of the firm. In FedEx’s case, they were caught off guard by UPS when the latter used its internally generated technology skills to offer e-tailors a multitude of shipping options and prices. Although both firms help customer better utilise information to track and ship inventory, UPS is pulling ahead of FedEx (Haddad & Ewing 2000). Rising fuel prices could also severely impact upon the company’s net income. PESTLE ANALYSIS POLITICAL             This aspect of the external environment affects the company in the same way that the legal aspect affects it. Laws and regulations effected within the transportation and logistics industry are dependent on the political environment which formulates such laws and regulations. The contemporary political environment is shown supportive of such technological advances in the industry under discussion to the extent that it has given impetus to the growth that the industry is experiencing now. Governmental policies and laws affect where and how companies may choose to compete, and deregulation and local government changes, such as those in the global transportation industry, affect not only the general competitive environment, but also the strategic decisions made by firms competing globally. ECONOMIC             The growth of the express transportation and logistics industry was brought about mainly by the globalisation of businesses. As businesses expanded beyond national boundaries and extended their global reach to take advantage of new markets and cheaper resources, so the movements of goods created new demands for the transportation and logistics industry. With this, the competitiveness of transportation companies depended upon their global network of distribution centres and their ability to deliver wherever their customers conducted business. Rising inflation and global competition gave rise to greater pressures on businesses to minimise the costs of operation, including implementation of just-in-time inventory management systems, etc., and also created demands for speed and accuracy in all aspects of business. SOCIAL The ever-changing market demand for value-added services affects FedEx’s corporate level strategies tremendously in that most of the business tactics that the firm employs centre on bringing about value-added services to their customers. After all, FedEx relies largely on their customers’ loyalty to sustain their leadership in the industry that they are in. As part of their corporate social responsibilities, FedEx is practising corporate philanthropy and employee volunteerism and is constantly developing relationships with charitable institutions that share the same values as FedEx. TECHNOLOGICAL             The advances in IT and the application of new technology to generate process efficiencies also served as impetus for the growth of the express transportation and logistics industry. The ability to share information between operations/departments within a company and between organisations to generate operational efficiencies, reduce cost and improve customer service was a major breakthrough for the express transportation industry. However, of even greater significance was the way n which new technology redefined logistics. At a time when competition within the transportation industry was tough and transportation firms were seeking to achieve competitive advantages through value-added services, many of these companies expanded into logistics management services. Interconnectivity through the Internet and Intranets and the integration of systems enabled businesses to redefine themselves and re-engineer their selling and supply-chains. Information came to replace inventory. With the advent of It, express transportation became an aggregation of two main function: the physical delivery of parcels, and the management and utilisation of the flow of information pertaining to the physical delivery. LEGAL             Throughout the more than three decades of existence of FedEx, their growth was attributable to a number of external factors that the firm was quick to capitalise on, which included: (1) government deregulation of the airline industry, which permitted the landing of larger freight planes, thus reducing operating costs for FedEx; (2) deregulation of the trucking industry, which allowed FedEx to establish a regional trucking system to lower costs further on short-haul trips. Also, trade deregulation in Asia Pacific opened new markets for FedEx and expanding globally became a FedEx priority. ENVIRONMENTAL             The FedEx Corporation recognises that one of its most important corporate priorities is effective environmental management. In efforts to fulfil their responsibilities to the environment, the company is engaged in several projects which aim at protecting the environment at large. Emissions and fuel use has been a constant source of concern for the care of the environment. In line with this, the firm partnered with the Environmental Defence in 2000 to create a delivery truck that would dramatically decrease emissions and fuel use. Also, with respect to packaging and recycling, a continued evaluation of the environmental impact of their packages is on-going and the firm additionally makes sure that their packages are made from recycled materials that are equally recyclable. STAKEHOLDER ANALYSIS Stakeholder Interest in FedEx Assessment of Impact Strategies for Obtaining Support                                   ORGANISATION 2 BRIEF BACKGROUND SWOT ANALYSIS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS PESTLE ANALYSIS POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL LEGAL ENVIRONMENTAL STAKEHOLDER ANALYSIS Stakeholder Interest in FedEx Assessment of Impact Strategies for Obtaining Support                                   COMPARISON AND CONTRAST OF STRATEGIES SIMILARITIES AND DIFFERENCES SUCCESSES AND FAILURES CONCLUSION / RECOMMENDATION   [1] All information appearing herein is from the company website, unless otherwise indicated. Credit:ivythesis.typepad.com

Federal Express SWOT

FEDERAL EXPRESS BRIEF BACKGROUND [1] Owned by Frederick W. Smith, the company was incorporated in June 1971 and officially...

A Marketing Paper of FedEx Corporation

Marketing Introduction The competition in the business arena has been very stiff and complex.  In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (2000;  2003). There are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. Traditionally, marketing has been utilized by most of the organisation in order to increase the capabilities and core competencies of the company. It can be said that marketing can be considered as one of the most important element supporting successful business establishment (1994). This is because of marketing’s complex applications, this have been defined in different manners. The significance of marketing concept integrates oft-repeated aspects such as: integrated marketing efforts, customer orientation, and resultant profitability (2003). Different firms obviously try and achieve the level of customer satisfaction as a strategy of both staying ahead of the competition and making a profit. And since, many companies are trying to be recognised in the business arena. These companies had been able to competently and effectively adjust to the situation in the marketplace through the use of different marketing strategies that enhanced their competitiveness.             Primarily, the goal of this paper is to provide discussion about an organisation in terms its marketing strategy. The focus of this paper will be on FedEx. The discussion will include the overview of the company, the services it offered, market segment and its competitors. Further, the pay will also give emphasise to one of the four meaning of marketing provided by  (1994) which is about the specific process to meet the needs of the customers.   Company Overview FedEx Corporation was established by in 1973 as an entirely new concept in package delivery an overnight air delivery service. While many competitors have sprung up since that time to steal small portions of the market share, FedEx is still undeniably the global leader in its industry. The company also provides e-commerce and supply chain management services to its clients in more than 210 countries. The corporation has some 215,000 employees and contractors and offers a wide range of delivery options including worldwide express delivery, ground small parcel delivery, freight delivery, and customs brokerage. Integrated business solutions are provided through a group of operating companies, of which Federal Express Corporation is the largest.             FedEx was the pioneer of the express transportation and logistics industry.  In addition, FedEx is also regarded as one of the world’s leading transportation companies that focus on the transportation of parcels and packages worldwide. In accordance to the activity around us especially when it comes to the speed and efficiency needed to serve the clients better, FedEx also has improved its performance when it comes to service through continuous changes in its IS and addition of certain programs like tracking lost parcels within thirty minutes which is of good help to clients and the such. This is very important so as to keep the company consistent of being number one on its spot. In this way, it will never fail to attract more clients. FedEx is committed with their People-Service-Profit philosophy. Herein, the company aims to produce outstanding financial returns by means of providing, competitively superior, totally reliable global air-ground transportation of high priority goods and documents that require rapid, time-certain delivery.  The company also aims to provide positive control of each package that will be delivered by using real time electronic tracking and tracing systems.  In this manner, a complete record of each shipment and delivery is being presented with the company’s request for payment.  The company’s goal is to become helpful, courteous and professional to each other and the public.  The vision of the company is to strive efficiently to have a completely satisfied customer every time they avail the services of FedEx (Federal Express Corporation 2000).   Services Offered The following are the core, supplementary and facilitating services provided by FedEx: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Overnight package delivery </li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Worldwide express delivery</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Ground small parcel delivery</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Freight delivery, and </li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Customs brokerage.</li> </ul>   These services are being offered in a quality manner to satisfy their customers. Because FedEx has been able to expand their services internationally, the industry also provides different products and services to their customers in the international market like in Asia-Pacific. The products and services provided by FedEx include FedEx International Priority (IP), International Priority Freight Services and FedEx Packaging. ·         FedEx International Priority (IP) The FedEx International Priority Service offers a time-definite, door-to-door technology-intensive, customers-cleared delivery of packages, documents and freight all over the world. This offering includes the FedEx International Mail Service which is available for bulk mailings of printed material like direct mail, invoices and catalogues. The clients of FedEx has the opportunity to choose from different delivery options which include door-to-door delivery using FedEx courier, customs clearance, holding for collection at a FedEx location and delivery through a broker or customer’s agent. ·         International Priority Freight Service (IPFS) The industry is currently operating in five scheduled air services from the United Stated to Sydney every week. The majority of the traffic on these flights is IXP, to ensure a time-definite airport to airport service. ·         FedEx Packaging In this service, the company used sound packaging system to ensure the fast and secured delivery of the shipment of the customers. In this regard, the company are able to develop their own range of ready-to-use, self-sealing packaging in different shapes and sizes. At the hub, the range of boxes, tubes, envelopes and packs have been created to deliver superior durability and protection at the lowest possible weight.   Market Segment             The customers of FedEx include those individual who wants to deliver their shipments and packages in time. The customers may be an individual or corporation who wants to avail any of the services offered by FedEx.   Competitors             As mentioned, competitor’s analysis is an important aspect of strategic marketing planning.  Herein, the company is given the chance to recognise which competitors are strong or weak. The competitors of FedEx are other companies which offer fast and quality delivery of different packages or shipments locally and internationally or those Express Delivery Services industry. In addition, the company also competes in terms of Trucking services, Freight Forwarding Services and Logistics services.  The competitor of FedEx includes DHL, UPS and US Postal Service. Each of these companies is considered as a strong competitor because of the good reputation that they established in the market place. In addition, each of these companies has been able to use strategic marketing strategies to position their services in the marketing arena.   Marketing Definition: Company Wide Definition              (1994) argues that the economy has been radically transformed in the past two decades. This transformation has been brought about as a result of technological development and convergence and widening of geographical markets. Global marketing is expanding and various trade blocs are emerging to facilitate international trade.  Political dogmas are disappearing there is a great surge towards free market economies. The ways businesses do their marketing are changing to meet consumer needs.  At the social level there are significant demographic and societal changes which affect consumer lifestyles and their needs. Businesses need to respond to these changes. According to  (1994) the guiding principle now is customer value. Consumers rank products according to the value they generate. Marketers have to pay attention to the way consumers make decisions.  Marketing is based on the process of exchange. Exchange involves two parties and the process is influenced by value, cost and satisfaction. ‘Exchange is the defining concept underlying marketing.’ For exchange to take place there have to be markets consisting of groups of people with specific needs for goods and services.   provides meaning for marketing in terms of four basic concepts. However, the focus of this is about specific process to meet the needs of their customers. In FedEx, the company has been able to use specific process to meet the demands of their customers of an express delivery service. In this manner, the company has been able to strategically align their management system with the information technology.  Technology plays a very important role in delivery of the FedEx service. The FedEx Corporation has made enormous strides in technology and is setting the industry standard for efficiency and customer service. First, FedEx has sought technological advances in response to customer needs and has excelled in anticipating and projecting demands of an environment that would depend and thrive on information. The technology FedEx has developed enables customers and support personnel to have wireless access to essential are information system’s networks anytime and anywhere. FedEx was the first to integrate wireless technology more than two decades ago, and continues to develop and lead the industry in developing innovative wireless solutions. FedEx has long been in the forefront in recognizing the potential of the Internet to provide fast, easy, and convenient service options for its customers. The ability to track a package was already available within the company through the use of technology. FedEx was the first transportation company to use barcodes on their packages. In 1979 the couriers were the first to use SuperTracker hand-held computers. The DADS (Digitally Assisted Dispatch System) was implemented in 1980. This allowed packages to be scanned at the point of pick-up, and was the first instance of a transport company using computers in their vans. In 1981 the COSMOS (Customer Operations Master On-Line System) was implemented. This was one of the first centralized computer systems of its type. Based at the GOC () in Memphis, the COSMOS system manages all aspects of the company, from pick-ups, vehicles, routes, packages and even weather conditions. The combination of all of these cutting edge technologies means that a package can be tracked, by the customer, in real-time from pick-up to delivery, anywhere on the globe. As of today, FedEx is still continuing this strategic alignment so as to ensure that the company always meets or exceeds with the expectation of their clients. Because of the changes that are happening in the marketplace, especially in line with the fast advancement of information technology and the growing needs of the customers, the marketing concepts specifically in terms of having specific process to meet the needs of the target market is also continuously changing and developing. The definition of marketing with the view of customers. Accordingly, customers will and should always be a part of the agenda in any marketing plan and strategies of any company. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today’s ever increasing competitive environment (19933). The challenge for gaining customers is for the company to establish good customer relations by satisfying their needs using strategic marketing approach. Hence, the key to customer satisfaction, loyalty and thereby ensuring repeat purchase operates on a number of levels and ultimately requires fulfilling the customers’ requirements or needs. This needs an in-depth understanding of customers and consumers that comes from analysing buying behavior, brand preferences as well as other issues such as frequency of purchase, time of purchase, brand repertoire, mood & mindset, etc. Marketers have much to learn from customers and this should all lead to improving the customer experience and, consequently, the sales and profits of the organization.   Credit:ivythesis.typepad.com

A Marketing Paper of FedEx Corporation

Marketing Introduction The competition in the business arena has been very stiff and complex. In this regard, the organization must be ...

HRM

Part A: Cultural Diversity   Introduction Culture is an important factor in understanding organisation, because for any organisation to operate effectively it must for some extent have a general set of believe and assumptions. Because understanding the term of the culture metaphor helps organisations to be aware of how employees are thinking about the organisation phenomena, and to recognize how different attitudes, value and beliefs affect the workplace. In an organisation, one of the most essential issue to be given attention is about cultural diversity. The concept of diversity has been described roughly as groups of two or more individuals which characteristically denote demographic dissimilarities among group members (1995). Concurrently, recent studies have been created to describe the abundant dimensions for categorising these demographic dissimilarities. Nonetheless, it is recurrent that hypothesising diverse results for individuals and work clusters, particularly those relating to the level and disposition of those diversity. The level to which one individually distinguishes with one’s cultural distinctiveness and the worth one consigns on them modifies transversely through cultural factions and across members within cultural groups (1993; 1995; 1997). Additionally, a human being may vary in the degree to which he or she associate with, principles, or articulate a specific cultural personality at any prearranged instance, dependent on the salience and denotation of that characteristics in the perspective within which he or she is in commission (1995;1996) For this reason, cultural identity, as understood in this selection, is communally constructed, multifaceted, and self-motivated. Primarily, the main goal of this paper is to answer the query: how cultural diversity could be exploited for the benefit of a multi-cultural organisation. The discussion will focus on how the management of the company can use cultural diversity as part of the system of the organisation.   Cultural Diversity and Managing Culture As mentioned, the goal of this paper is to identify ways on how cultural diversity can be used to benefit a multi-cultural organisation.  (1990) argues that organizations can build their multicultural capacities in three ways. Affirmative action creates a diverse staff by recruiting previously excluded individuals into homogeneous organizations. Valuing cultural diversity builds understanding and helps people learn to appreciate this new diversity. Managing diversity attacks institutional racism, reallocates power, and promotes justice in the work place while enhancing the work environment. Diversity is otherness or those human qualities that are different from our own and outside the groups, to which we belong, yet present in other individuals and groups. Dimensions of diversity include, but are not limited to: age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational background, geographic location, income, marital status, military experience, religious beliefs, parental status, and work experience. It’s important to understand how these dimensions affect performance, motivation, success, and interactions with others. Institutional structures and practices that have presented barriers to some dimensions of diversity should be examined, challenged, and removed.   Strong Management Commitment In this regard, one way to exploit cultural diversity to become advantageous is to manage it effectively and efficiently.  (1993) defines cultural diversity as the “representation, in one social system, of people with distinctly different group affiliations of cultural significance ( 1993).” Accordingly, people of different ethnic backgrounds possess different attitudes, values, and norms. Increasing cultural diversity in both public and private sectors focuses attention on the distinctions between various ethnic groups in their attitudes and performance at work.             Several authors have research organisations which are successful in managing diversity (1994). In general, these authors find several similarities held by successful, multicultural organisations: First, top management plays a crucial and leading role in making diversity a success and become beneficial for the company. The CEO must exhibit a strong commitment. Leaders must receive diversity training to address myths, stereotypes and real cultural differences as well as organisational barriers that interfere with the full contribution of all employees. Top executives need experience of what it is like to be a minority. Top management cannot delegate its leading role to Affirmative Action/ Equal Opportunity administrators.  Second, diversity must be part of an organisation’s strategic business objective. A diversity program cannot fully succeed if it is a separate strategy similar to traditional Affirmative Action/EEO programs. Diversity goals must be linked to business goals, not merely meeting Affirmative Action legal requirements ( 1993). Cultural Diversity must be stressed not only internally but should be a significant part of external outreach programs that identify the organisation as a multicultural leader and active in community and societal issues. Diversity should be a super ordinate goal rather than a goal ascribed to individual groups. Third, managers must be held accountable for meeting diversity goals. Performance evaluations and rewards should be tied to a manager’s ability to develop and manage a diverse workforce. Top management must scrutinise compensation to insure fairness. Fourth, a multicultural successful organisation must improve its supply of diverse workers through aggressive recruiting. It must break the “glass ceiling” and increase the number of women and minorities in the higher salary groups through career development, mentoring, and executive appointment. It must empower all of its employees to use their full capacity. Fifth, a diverse workforce requires efficient communication. Leaders must insure that there are open avenues for employees to communicate new ideas, grievances, input and feedback. In many ways, the classic bureaucratic model is antithetical to the needs of culturally diverse workgroups and innovative, non-hierarchical organisational designs may be in order to insure effective communications. Finally, a multiculturally successful organisation must value diversity. A cultural climate must allow differences to be celebrated instead of merely tolerated. All employees must understand the competitive and moral advantages of diversity. They must respect and support cultural diversity through the recognition of distinctive cultural and religious holidays, diet restrictions, and the like. Often, organisations must undergo a “cultural transformation” ( 1994) before they can successfully achieve the full benefits of diversity. Because management philosophies and practices are culturally conditioned, it stands to reason that there is much to be gained by including cultural studies in all management or professional development. This is particularly relevant during the global transformation underway. Culturally skilled leaders are essential for the effective management of global corporations, as well as for the furtherance of mutually beneficial world trade and exchange ( 2000). Integrating Culture at Work Approach The concept of  culture at work, whether international, local or  at the organizational level, extensive emphasis should be warranted for because effective HRM practices plays an effective role on achieving high performance levels of employees. Managing culture is a broad and complex issue. Leaders face formidable challenges in building a multicultural organisation that truly values diversity. To be successful, managers need to “unlearn practices rooted in an old mind set, change the ways organisations operate, shift organisational culture, revamp policies, create new structures, and redesign human resource systems ( 1991).” This is a tall order and indeed may be so difficult and complicated that it requires a new paradigm to guide organisational management. To manage diversity strategically may require a shift from an efficiency mind set to one with a higher emphasis on human relations goals.  For managers leading or working in culturally diverse organisation, the level of flexibility, communication skills and hands-on management required often goes above and beyond what they are accustomed to.  Regardless of where they are located, managers may find themselves challenge to motivate struggling employees.  Managing culturally diverse teams and facilitating teamwork across cultures can present unique challenges and may be unfamiliar territory for many managers.  The manager often experiences his most uncomfortable moments when he has to deal with differences among people. Because of these differences, he must often face disagreements, arguments, and even open conflict. To add to his discomfort, he frequently finds himself torn by two opposing desires. On the one hand, he wants to unleash the individuality of his subordinates in order to tap their full potential and to achieve novel and creative approaches to problems. On the other hand, he is eager to develop a harmonious, smooth-working team to carry out his organisation’s objectives. The manager’s lot is further troubled by the fact that when differences occur, strong feelings are frequently aroused, objectivity flies out of the window, egos are threatened, and personal relationships are placed in jeopardy. Because the presence of differences can complicate the manager’s job in so many ways, it is of utmost importance that he understands them fully and that he learns to handle them effectively. It is important that the communication provided by the organisation is clear and consistent from within all levels of the organisation. It must address both organisational and individual employee concerns.  Management behaviour will influence employee behaviour more than the words included in a communication. Employees assess the communication to see if the change meets their needs. Internal Communication is linked to performance, job satisfaction, job avoidance, market conditions, commitment, culture and turnover. Communication and culture are useful to the success of any organisation. A positive, strong culture allows the organisation to attract and retain the best people, where a negative culture can do the exact opposite. In addition, a clearly articulated mission statement is an essential part of building the image of the organisation in the minds of the employees. Therefore, effective internal communication is needed in a culturally-diverse organisation. If poor internal communications exist, it could lead to lack of job satisfaction, increased job avoidance, reduced performance and commitment and an increase in turnover. Managers and team leaders will need to learn how to interpret signs of troubled or stressed employees. Moving forward, it is clear that both challenges and opportunities exist for those who lead or manage culturally diverse work teams.  For those employees who are relocating to another culture, employers who are proactive and provide support up-front are certainly taking a step towards ensuring the success of the project team assignment.  Pre-departures preparation programs can be put in place to help expatriates and short-term assignees prepare for losing a sense of cultural identity and the confidence that goes with it.               (1991) provides a working definition that goes beyond valuing differences: Managing culture is a comprehensive managerial process for developing an environment that works for all employees.” This definition has two key features. First, “managing culture” is a “comprehensive managerial process.” It is not enough to provide diversity training in an organisation and pat ourselves on the back for raising the level of awareness. Managing diversity implies an ongoing, system-wide process that will tap the potential of all employees.  It implies growth and development on the part of the organisation and its people — movement on both sides.  Second, this definition specifies “developing an environment that works for all people.” In order to develop this environment that works for all people, we are going to have to change corporate cultures.  (1991) provides an action plan for developing cultural changes in corporations. According to , we expect people to assimilate into the corporate culture. Today, employees are reluctant to assimilate and are more likely to want to maintain their uniqueness. As a result, we will have to create a culture that both values and manages diversity. The vast majority of cultural diversity initiatives in the U.S. focus exclusively on valuing differences. Instead, Fine argues, the dominant corporate culture must be transformed into a multicultural organisation.  Fine defines a multicultural  organisation as an organisation that: values, encourages, and affirms  diverse cultural modes of being and interacting, creates an organisational dialogue in which no one cultural perspective is presumed to be more valid than other perspectives and empowers all cultural voices to participate fully in setting goals and making decisions (1995).   Allowing Change Management Approach Another way to exploit cultural diversity to become beneficial for the company is in terms of changing corporate culture and management systems. Changing corporate culture and management systems to accommodate the diversity of employees involves strategic initiatives that are designed to break down barriers that prevent all people from contributing to their fullest potential. n and Associates (1992) describe examples of corporate diversity initiatives that are “intentionally planned, targeted against business objectives, long-term oriented, and involve the entire organisation (1992).  For example, Travel Related Services, a subsidiary of American Express, focused their efforts on becoming “the Best Place to Work” by providing benefits that would attract and retain employees from an increasingly diverse labor pool. Child-care subsidies, improved part-time benefits, sabbaticals, and flexible work arrangements were introduced after a systematic diagnosis and planning effort involving input from employees (1992). Another study of corporate diversity initiatives by  (1992) is based on interviews with over 200 managers in 16 U.S. companies. The research describes the barriers that prevent women and minorities from advancing as well as the processes that facilitate their movement through the ranks. Recruitment, development, and accountability strategies that foster an appreciation for diversity and allow organisations to achieve measurable results are labelled “best practices.” One of the practices  (1992) cites is the use of internal advocacy groups as a means for building commitment to diversity and monitoring the corporation’s diversity practices (1992) Advocacy groups were found in 10 of the 16 companies examined in the  study. While the roles and power of these groups vary within corporations,  (1992) acknowledges that much of their negotiating power comes from the information they receive about personnel administration (personnel profiles, promotions, pay records, and advanced notice of personnel policies). According to some executives communicate this information in order to share responsibility for identifying diversity problems and developing solutions (1992).             Managing the process of resolving conflicts in a culturally diverse organisation, therefore, is the central task, making sure that positive effects are garnered from the situation by understanding that all of those involved or in controls are doing everything in their power to maximise the positive products and quality output, while minimising the disruptive consequences among the members of the project team in a culturally diverse organisation.. Such good management, in turn, requires a full and sophisticated grasp of major elements in the managing process. Individual causes and determinants of conflicts in a culturally diverse organisation, such as faulty attributions, poor styles of communication, and personal traits or characteristics that contribute to interpersonal friction, all play a role in this regard and must be taken into account. Similarly, culturally diverse organisation-based factors, such as competition for scarce resources, ambiguity over responsibility or jurisdiction, growing internal complexity, and faulty or inadequate forms of communication, must also be considered.   The framework for national culture has been developed by researcher  (1980). While the respective merits and drawback of different framework are widely discussed, the Hofstede basic module of culture can be seen as a helpful framework to illustrate the major issues that need to be considered in change process. Culture environment is one of the important principles that influence the organisation.   (1991) identifies that there are dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance and Long-term versus short-term orientation), which help to understand that people arrive to organizations with their own national culture. Accordingly, if a multinational company wants to better manage cultural diversity, it is important to understand the management system of the host country. The management of the multicultural organisation should have both knowledge and empathy with the entire domestic scene. The management should also consider the 5 important dimension mentioned by Hostede to ensure that the change management process would be successful.             A healthy organisation is one in which an obvious effort is made to get people with different backgrounds, skills, and abilities to work together toward the goal or purpose of the organisation. Very few organisations in the have become effective in incorporating culturally diverse backgrounds, skills, and abilities in their organisational culture.             An effective, culturally diverse organisation is one whose culture is inclusive of all of the varying groups and constituencies it intends to serve, that is, in the case of the services, the people of the state. The organisation’s values, vision, mission, policies, procedures, and norms constitute a culture that is manifested in multiple perspectives and adaptability to varying values, beliefs, and communication styles. People from differing cultural groups in business operations have differing perspectives, manifested in their values, attitudes, beliefs, and behaviours.  And these differences, if managed properly can be used as a strong factor to strengthen corporate culture which may lead to a more productive and competitive multi-cultural organization.   Other Benefits of Successfully Managed Diversity       The above analysis shows the benefits of a successfully managed diversity in the organisation. Aside from those benefits, there are also other benefits that the company may have when they managed cultural diversity effectively. One of the benefits of a well managed cultural diversity is in terms of having a more productive workforce, strong communication, customer loyalty and ensuring quality products and services. For example, through the effective management of cultural diversity in Honda which is a multinational and multi-cultural industry, the company has been able to make their employees work productively and be able to provide quality products and services among their customers. Since Honda is an international organisation, it is exposed to employees having different cultures. Instead of letting this cultural diversity affects the company negatively; Honda has been able to use this to establish a management approach that will handle cultural diversity within the organisation. With the effective cultural diversity management approach Honda enables their employees to work efficiently which also leads in the reduction of employee turnover.  Having been able to have this kind of setting, Honda has been able to gain competitive advantage in every nation that they operate. Aside from a multinational automotive company, other company who have been benefited by a well managed cultural diversity are the multinational construction company. Accordingly, managers of a multinational construction company who are assigned in culturally diverse company are experiencing cultural shocked, specifically when the responsibilities are not done effectively. In this manner, it is perceived that the multinational companies need a more effective diversity management, specifically in the international level. On analysing the context of international project management, especially for multinational construction companies, it can be noted that different project management, can establish competition among the diverse groups and evoke pride in work that enhances performance when they are able to arrange culturally homogenous groups of different cultures.  In addition, it can also be perceived that successful managers used bicultural individuals to bridge the cultural gap between the project team members. By using a mediator, who understands the needs of both cultures, the managers are able to effectively manage the human resources and the diversity.  With an effective cultural diversity management in a multinational construction company, there is a greater possibility of avoiding wasted time, costs and effort.  In an article written b various authors, they tackle the impact of cultural diversity in the performance of multinational firms. Herein, they both argued that international diversification and business performance are affected by the effective management of cultural diversity. The authors highlighted that diversity must be stressed not only internally but should be a significant part of external outreach programs that identify the organization as a multicultural leader and active in community and societal issues (1996). Diversity should be a super ordinate goal rather than a goal ascribed to individual groups. Third, managers must be held accountable for meeting diversity goals. Performance evaluations and rewards should be tied to a manager’s ability to develop and manage a diverse workforce. Top management must scrutinize compensation to insure fairness. Fourth, a multicultural successful organization must improve its supply of diverse workers through aggressive recruiting. It must break the “glass ceiling” and increase the number of women and minorities in the higher salary groups through career development, mentoring, and executive appointment. It must empower all of its employees to use their full capacity. The authors also discussed the significance of cultural diversity in enhancing the performance of the business and that the role of the managers should be to incorporate all diverse groups into one working team. The article perceived that although cultural diversity can negatively affect the performance of an organisation, such effect is only temporary. If the management would be able to handle and manage diversity effectively this will result to positive value.             Conclusion In managing people, the human resource management should be able to learn to think more systematically and strategically in using the organisation’s most valuable asset and the company’s great resource and that is the people.  The human resource management should be able to develop a thriving organisational culture and a stronger organisation by good management of the people, providing their needs and the things that they deserve in order for them to be motivated and for them to seek more improvement and career development for their sake and for the organisation’s sake as well.  Further, it can also be concluded that in order to have a high-performing and competitive organisation, it is critical that the human resource management and the organisation as well should effectively align their people, work, structure and organisational behaviours to the purpose of the organisation and effectively reward the right performance that supports the objective of the organisation.  Elements such as work processes, organisation design, career path, performance management and a compensation program are part of human resource management strategy and a plan to ensure continuing success.  All in all it is very important that an organisation should make a way in adjusting their management and styles to complement the differences and similarities of the employees and the organisation as a whole that may catalyst the motivation among the employees. Hence, the role of human resource management is crucial in making the organisation achieved its goal of having a working force that contributes to the competitive advantage of the organisation. Working in a culturally diverse situation is challenging; managing a culturally diverse service presents even greater challenges. The rewards, however, are great in opening our minds and sharing experiences. Seeing our own society, with its habits, customs, and beliefs that we may take for granted, through the eyes of an incomer heightens self-awareness and self-understanding. The two aspects of management: working with staffs that are culturally diverse and providing a service to a culturally diverse community must be given enough focus.   Word Count: 3782     Human Resource Management In FedEx   Introduction The performance of every company can be said to be affected by different business elements. These elements are the ones attributed for the success or even the failure of a business. In this regard, organization is trying to find ways to improve their performance by using strategic management system. One of these systems is the human resource management system. Human resource management (HRM) is known and accepted in the broadest sense of the term, as a form of management that includes “all management decisions and actions that affect the nature of the relationship between the organisation and the employees – its human resources” (1984). As can be observed based on the definition, the tasks of those belonging in HRM can be complex as it involves all issues that encompasses employee and firm relationship. Believing that the most important asset of a business is the people in order to achieve sustained business success is the core philosophy of human resource management (HRM), and realising this leads to a strategic management of people within the organisation. Primarily, the main goal of this paper is to provide insightful details regarding the concept of the human resource management in relation to a multinational company like FedEx. This report will attempt to identify the challenges encountered by FedEx in terms of managing their human resources.   Overview of the Company FedEx Corporation was established by  in 1973 as an entirely new concept in package delivery an overnight air delivery service. While many competitors have sprung up since that time to steal small portions of the market share, FedEx is still undeniably the global leader in its industry. The company also provides e-commerce and supply chain management services to its clients in more than 210 countries. The corporation has some 215,000 employees and contractors and offers a wide range of delivery options including worldwide express delivery, ground small parcel delivery, freight delivery, and customs brokerage. Integrated business solutions are provided through a group of operating companies, of which Federal Express Corporation is the largest.             FedEx was the pioneer of the express transportation and logistics industry.  In addition, FedEx is also regarded as one of the world’s leading transportation companies that focus on the transportation of parcels and packages worldwide. In accordance to the activity around us especially when it comes to the speed and efficiency needed to serve the clients better, FedEx also has improved its performance when it comes to service through continuous changes in its IS and addition of certain programs like tracking lost parcels within thirty minutes which is of good help to clients and the such. This is very important so as to keep the company consistent of being number one on its spot. In this way, it will never fail to attract more clients.   HRM Issue in FedEx:             While every organization seems to invest in technology, there are other aspects that should be considered in attaining a holistic performance of their respective organization. One aspect that needs as much, if not more attention and investment than technology is human capital management. An organization’s human capital management philosophy must value the workforce as a key asset that will define an organization’s character and performance capacity (2001).  “In fact, human capital is a critical factor that would either lead the organization to success or to failure,” as stated by  (2001). In the international arena, the quality of management seems to be even more critical than in domestic operations (Tung, 1998). This is primarily because the nature of international business operations involves the complexities of operating in different countries and employing different national categories of workers (1986). Yet, while it is recognized that HRM problems become more complex in the international arena or more importantly in multicultural organisation, there is evidence to suggest that many companies underestimate the complexities involved in international operations. Being an international organisation or multi-national company, FedEx encountered many issues in line with human resource management.  One of the most serious problems in a multinational organisation which FedEx also faced is conflict. According to  (1998), conflict or issues may be defined as the perception of personal or organisational differences among individuals. Other meanings of conflict defined the term as the process of social interaction between struggling parties over beliefs, status, power, resources and other desires or preferences. The goal of the contradicting parties may vary from a simple aim of gaining acceptance to securing a resource advantage; in worst cases, conflicting parties will go even to the point of harming or eliminating their opponents (2001). In a multinational organisation like FedEx different conflicts or issues are being encountered in line with working behaviour of their human resources.  This issue arises when staffs have incompatible emotions or feelings which results in a negative working attitude with their co-employees. According to  (1997), this kind of issue happens when interpersonal clashes are observed between the contradicting parties. Oftentimes, this is characterized by frustration and anger. When two or more organizational parties argue over content or task issues, substantive conflicts result. Also known as cognitive, task or issue conflict, this type of conflict occurs when group members disagree on each other’s opinions or ideas in relation to the task at hand (2001). An example of this conflict is when one employee or board member disagrees on which marketing strategy or alternative is to be applied; arguing over company data to develop a business plan is also a common problem in the company. It is said that when conflict occurs, the working attitude of the employees are being affected.             FedEx also often encounter conflicts due to differing interests or cultures. Herein, two parties realize and understand the problem; however, the solution they intend to use to solve it is different from one another.  Ideological conflict or the conflict of values is yet another source of this organizational problem. Basically, this conflict type occurs when two or more social entities have contradicting ideologies over certain matters. This conflict is often observed in human resource issues especially when one party prioritizes what is best for the company while the other is after the interest of the employees. Conflict also occurs in FedEx due to contradicting goals. Since the employees of FedEx have different preferred results or decision outcomes, problems occur which affects the performance of the organisation ( 2001).             Other authors also raised similar sources of conflict in the workplace. In a the company also encounters intra-organizational which occurs due to differences in beliefs, basic values or knowledge; personal dislike; differing attitudes or perceptions generated through organizational structure; and competition for power, position or recognition. Diversity in the workplace is said to be an important aspect for efficient and optimized organizational performance. Diversity does not only pertain to people’s gender, age and race; differences in role expectation. Goals, thoughts and values are also part of this concept (1993). The concept of diversity is a notion of individual differences. While others may consider this as a way of expanding one’s perspectives, experience or ideas, diversity may be taken negatively and be seen as a factor that hinders organizational effectiveness, specifically for a multinational organisation like FedEx.             Managing people may vary in different context and one of which is managing their performance. Management is the process of directing and facilitating the work of people organized in formal groups to achieve a desired goal. Management may not be indispensable to group activity, but it is essential in utilizing limited resources to accomplish maximum output, that is, in order to prevent wasted effort by individuals. Without some source of central direction and guidance, individuals in any sizable number can- not work together successfully or efficiently over a sustained period of time. In other words, formal organization of work and a high degree of specialization of labor make management imperative as the means for ensuring performance of any undertaking. In terms of performance, FedEx sometimes faced the problem of low performance among employees. This is mainly due to the diverse situation of the working environment in FedEx. Having diverse people affects the behaviour and even the productivity of the human resources, which may lead to unmet quality service offered for the target market.             Another issue that has been encountered by FedEx is in line with communication process. As a heritage of HRM, many firms still provide “top-down” communication. Poor “bottom-up” communication, suppressed by managers, can lead to employee discord and conflict. This issue affects the performance of the employees to be provided quality service among their target market. The management of FedEx at a certain period have implemented a highly centralised decision making process. This highly centralised decision making and a manager’s preferential treatment stifle workers’ creativity and productivity and also results in an unhealthy work environment. Herein, very little or no creativity and innovation occurs in the workplace.             The issues mentioned above are the ones considered as conflicts that affects the firm as whole.   Strategy used by FedEx to Solve the Issues FedEx is committed with their People-Service-Profit philosophy. Herein, the company aims to produce outstanding financial returns by means of providing, competitively superior, totally reliable global air-ground transportation of high priority goods and documents that require rapid, time-certain delivery.  The company also aims to provide positive control of each package that will be delivered by using real time electronic tracking and tracing systems.  In this manner, a complete record of each shipment and delivery is being presented with the company’s request for payment.  The company’s goal is to become helpful, courteous and professional to each other and the public.  The vision of the company is to strive efficiently to have a completely satisfied customer every time they avail the services of FedEx ( 2000). In order to solve the issues faced by the company has been able to use different strategies.  These strategies include performance management approach, cultural diversity management approach, conflict management and the development of strategic human resource management. Performance management is the principal set of practices by which control is manifested in organizations. Control here is defined as any process that is used to align the actions of individuals to the interests of the organization ( 1992). Under such a characterization, performance management is expected to regulate both motivation and ability (1990).  Performance management is usually conceptualized as consisting of three elements: (1) objective setting, (2) formal performance evaluation, and (3) linkage between evaluation outcomes and development and rewards, in order to reinforce desired behavior (1992). This system is cybernetic, with feedback from both employer and employee driving modifications at each point in the system. Empirical research has tended to be absorbed in the constituent elements of performance management, and studies into performance management viewed as a set of interlocking policies and practices are rare. There are three prominent views as to how performance management may be used to regulate performance, through focusing either on behavior, or on skills, or on outputs. Monitoring behavior is largely concerned with articulating operating procedures which are initiated top-down through a centralized bureaucratic framework (1992). The intent is to monitor employee performance closely, with appraisal used chiefly as an auditing device to correct deviations from set norms (1992). A less rigid view of controlling behavior lies in the use of competency frameworks. Competencies can specify behaviors, skills, and knowledge which are deemed desirable for employees to exhibit, and criteria for their attainment are set by the organization, forming an important part of the evaluation process. Through performance management, the FedEx has been able to monitor every activity of the employees, including those conflicts faced by the culturally diverse employees. FedEx are able to determine the cause of disagreements among their employees and find solutions to solve such conflict. In addition, through performance management, FedEx has been able to monitor the output of the diverse employees. Monitoring output is characterized by the use of performance targets which provide some discretion in how employees achieve them. This type of control allows employers to decentralize control and gives relatively objective criteria for evaluation. Herein, the employees of are given discretion in how they achieve them. Since the effects of these three approaches overlap, it is usually the case that firms will employ elements of behavioral, skills, and output controls simultaneously (1992).             Aside from managing the performance, FedEx has also able to developed their Human resource functions.      The development of Human resources in FedEx has served the needs of organisations to provide human resources with up-to-date expertise.  Accordingly, Human Resource Development is concerned with learning and with how it might be managed.  In addition, FedEx human resource development approach is concerned with change, of behaviour, as can be seen in the manifestation of innovative or improved skills, implementation of new knowledge and understanding, and employing new attitude. Through this, the employees are given the chance to improve themselves in order to cope with the diverse situation of the organisation. Human Resource Development covers the organisation as a whole, and adheres to the needs of individual functions.  According to  (1996), FedEx HRD includes different activities and processes implemented by the organisation with the intention of developing or enhancing the performance of both organisation and individual.      It is a process of unleashing and enhancing the skill of human resources by employing organisational development and training and development for the goal of improving the competency of a certain organisation (Swanson, 1995) which FedEx has done to solve different human resource issues.  One of the strategies used by FedEx in terms of managing their human resources is their integration of HRM practices with the employee empowerment concept. Herein, the corporation announces proudly how important employee empowerment is. Founder and CEO Frederick Smith determined to make employees an integral part of the decision-making process, due to his belief that “when people are placed first they will provide the highest possible service, and profits will follow” (2002). Some of its employee empowerment programs include: an annual employee satisfaction survey, which rates management’s performance and forms a basis for improvement; an employee recognition and reward program; and pay for performance based on management-by-objective and project-by-objective goal-setting processes (2002). In addition, FedEx also incorporates the use of employee empowerment in terms of the information system that it used. Since information is considered as the one which represents power in this generation, information systems used also have the potential to impose employee empowerment. Empowerment being known as the process of enabling and encouraging employees to accept more responsibility for their job is a concept that has been discussed for many years but has been difficult to achieve. Specifically, empowerment involves pushing decision-making downward in the organizational hierarchy to the lowest level where the necessary information and expertise is available. Successful implementation of empowerment has been chiefly dependent upon radical changes in management attitudes and behavior. Now, because of the access to shared information available through intranets, the long sought goal of improving employee empowerment may be within reach. Welch (1996) suggests that access to company information and opportunity for expanded cross-functional communication can enable managers to more effectively share power with employees, thus achieving improvements in employee empowerment. However, managers must be willing to share power, which could be an even greater challenge than simply making the data available. Hence, through the information passed from the managers to the staff as part of the operation of employee empowerment is being achieved.    Implications the issues to FedE It is said that multi-national organisations faced more complexities than any other organisation in terms of handling or managing human resource. Hence, these companies should be able to implement human resource management strategy suitable for the needs of their human resource needs. Human Resource Management is regarded as an umbrella term that comprises (a) specific human resource practices such as recruitment, selection, and appraisal; (b) formal human resource policies, which direct and partially constrain the development of specific practices; and (c) overarching human resource philosophies, which specify the values that inform an organisation’s regulations and practices. Basically, these encompass a system that attracts, develops, motivates, and retains employees who ensure the effective functioning and survival of the organisation and its members. It is true that managing people in organisation is a very difficult task to handle because the employees that you will handle are provided with different culture, attitudes, values and norms.  In order to effectively solve the issues or conflicts encountered by a multinational organisation such as the human resource management should be able to learn to think more systematically and strategically in using the organisation’s most valuable asset and the company’s great resource.  The human resource management should be able to develop a thriving organisational culture and a stronger organisation by good management of the people, providing their needs and the things that they deserve in order for them to be motivated and for them to seek more improvement and career development for their sake and for the organisation’s sake as well. Herein, FedEx or any multinational organisation can use empowerment as a technique for improving solving the issue while improving employee satisfaction.  Satisfying the employees can significantly create a good working relationship among the employees; it involves responsibility and authority for decisions affecting the workplace, downwards through the organisation. Thus, in an organisation, employees need to be equally empowered. This empowerment results to an increased competence, self-esteem and self-respect, which are very important to one’s well-being.  Moreover, creating an environment in the workplace that results in employees feeling better about themselves when they are in it results in love of their work. A working environment that constantly raises an employee’s self-esteem, above that she/he experiences anywhere else in their life, will be where she/he most desires to spend their time and yields very high employee satisfaction with their job and costs next to nothing. People do more of what they enjoy and less of what they don’t enjoy. The results also show that people who enjoy working are more productive than employees who are not satisfied with what the company is giving. In the case of they value their employees as they value their customers.  Hence, the company promotes different programs in line with their integration of employee empowerment with their employee relationship approach.  Through this program and the information system used by the company, the employees are given the chance to be involved in decision-making process needed within the organisation which means that their opinions and ideas regarding the operations and management of the company counts.  In addition, through the empowerment programs implemented within the company, the employees feel that the company does not ignore the capabilities and skills to handle every management performance. All in all, employee empowerment is just one of the many ways that a certain organisation may use in order to show the appreciation and recognition of the abilities of their employees. Aside from this, FedEx also sees to it that they value whatever cultures, beliefs and norms the employee has. The awareness of the differing culture in the FedEx enables the company to understand why some employees behaved differently. With this, they create a strong organisational structure that bonds employees even if they came from various cultures. All in all it is very crucial that an international organisation should make a way in adjusting their management styles and approaches to adhere with the differences and similarities of the employees, specifically those in the international environment so that IHRM may catalyst the motivation among diverse individual.  It is also important to note that international human resource management should have the ability to employ the principles and concepts of emotional intelligence and give emphasis to the importance of self-awareness in dealing with different kinds of people, winning their trust and to ensure that the people’s values and the organisations objective will intersect to a common goal and that is to incorporate good employment relationship to ensure competitive advantage in the international market.   Word count=3473 Credit:ivythesis.typepad.com

HRM

Part A: Cultural Diversity Introduction Culture is an important factor in understanding organisation, because for any organisation to...