Donia Adel – Strategic Human Resource Management Page 1 Donia Adel – Strategic Human Resource Management Table of Contents Tasks Task 1 Descriptions HRM Assessment and Evaluation Section 1.1 – Explain the importance of Strategic Human Resource Management (SHRM) and the need to adopt a medium and long term perspective in respect of Human Resource Management in FedEx Figure 1: The Harvard Framework for HRM Task 2 Task 3 Page 4 4 7 Section 1.2 – Assess the purpose of SHRM activities in FedEx 8 Section 1.3 – E aluate the o t i utio of “HRM to the a hie e e t of FedE ’s o je ti es 10 Human Resource Plan 12 Section 2.1 – Analyze the Business Factors that underpin HR planning in an organization 12 Section 2.2 – Asses the human resource requirements in a given situation with evidence on FedEx 14 Section 2.3 – Develop a human resources plan for FedEx cooperation 16 Section 2.4 – Critically evaluate how a human resources plan can contribute to meeting an o ga izatio ’s o je ti es 19 Organization Policies: 22 Section 3.1 – Explain the purpose of human resource management policies in an organizations 22 Section 3.2 – Analyze the impact of regulatory requirements on human resource management policies in an organizations 25 Page 2 Donia Adel – Strategic Human Resource Management Task 4 Re ie of HRM “t u tu e a d Cultu e 28 Section 4.1 – Analyze the impact of organization structure on the management of human resources 28 Figure 2 – FedEx Organizational Chart 29 Section 4.2 – Analyze the impact of organization culture on the management of human resources 30 Section 4.3 – Examine how the effectiveness of HRM is monitored in an organization 32 Section 4.4 – Make justified recommendations to improve the effectiveness of human resources management in FedEx 33 Page 3 Donia Adel – Strategic Human Resource Management Task 1 – HRM Assessment and Evaluation Human Resource Manager Report to the FedEx Board of Directors: In different economic conditions there is a necessity for organization to: develop, implement and monitor, a set of a welldefined strategies. Section 1.1 – Explain the importance of Strategic Human Resource Management (SHRM) and the need to adopt a medium and long term perspective in respect of Human Resource Management in FedEx General SHRM approach: In this report, we discuss the reasons for organizations to have a HRM strategy as well as the business drivers that make the strategy imperative for organizational success. It is a fact that to succeed in the harsh economic condition, technology development and turbule t usi ess e i o e t, fi s eed to o sta tl i o ate a d e ahead of the u e i te s of business practices and strategies. It is from this approach that HRM becomes a valuable tool for management to ensure success. Definition, Concept of SHRM: In simple term the Strategic Human Resource Management is concerned with the management of Human Resources via a philosophy of acquisition, development, utilization, and maintenance of competent human force. To achieve goals of an organization in an efficient and effective manner i a s that should suppo t a o ga izatio ’s st ateg a d hi h i tu will contribute to the achievements of the organizational goals. Having said that, it will requires medium & long term planning and management of human resources, which in consequence should match the organizational requirements with consideration to quality and commitment to funds. Concept of SHRM contains two versions – the hard version and the soft version: The hard version or variant emphasizes the need to manage people in ways that will obtain added value from them and thus achieve competitive advantage Soft version is concerned with treating employees as valued assets, a source of competitive advantage through their commitment, adaptability and high quality. Toda ’s HRM is a o i atio of oth the e sio s. HRM is a age e t of hu a e e g a d apa ilities. Page 4 Donia Adel – Strategic Human Resource Management Importance of SHRM in FedEx: A typical way to approach strategic HRM is to explain it as the link between HRM and strategic goals and objective in order to improve business performance and develop organizational culture that foster innovation and flexibility. The main rationale for SHRM thinking is that by integrating HRM as a strategic partner in the formulation of the compan ’s st ategies as well as in the implementation of those strategies through HR activities such as recruiting, selecting, training and rewarding personnel. Strategic HRM should have a clear focus on implementing strategic change and growing the skill base of the organization to ensure that the organization can compete effectively in the future. Strategic human resources departments are future oriented and operate in a manner consistent with the overall business plan in the organization. In order to have a strategic role and get effective results in the organization, HRM departments should design their practices and functions consistent with the strategies and goals of the organization. Characteristics of SHRM approach in FedEx: It is an art and a science: SHRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and arduous application of theory that is required. It is prevalent: Development of HRM covers all levels, categories of people management and operational staff. No discrimination is made between any levels or categories. All those who are managers have to perform HRM. It is pervasive also because it is required in every department of the organization. All kinds of organizations, profit or non-profit making, have to follow SHRM. It is a continuous process: First, it is a process as there are number of functions to be performed in a series, beginning with human resource planning to recruitment to selection, to training to performance appraisal. Which is then monitored, analyzed and adjusted if in need. To be specific, the HRM process includes acquisition (HR planning, recruitment, selection, placement, socialization), development (training and development, and career development), utilization (job design, motivation, performance appraisal and reward management), and maintenance (labor relations, employee discipline, grievance handling, welfare, and termination). Second, it is incessant, because HRM is a never-ending process. Service function: HRM serves all other functional departments. But the basic responsibility always lies with the line managers. HRM is a staff function – a facilitator. The HR Manager has line authority only within his own department, but has staff authority as far as other departments are concerned. Page 5 Donia Adel – Strategic Human Resource Management It is regulation-friendly: The HRM function has to be discharged in a manner that legal dictates are not violated. Equal opportunity and equal pay for all in the benefits and non-violation of human rights must be taken care of by the HRM. Interdisciplinary and fast changing: It is encompassing welfare, manpower, personnel management, and keeps close association with employee and industrial relations. It is multi- disciplinary activity utilizing knowledge and inputs from psychology, sociology, economics, etc. It is changing itself in accordance with the changing environment. It has travelled from exploitation of workers to treating them as equal partners in the task and depends on their valued feedback. Focus on results: SHRM is performance oriented. It has its focus on results, rather than on rules. It encourages people to give their 100%. It tries to secure the best from people by winning the whole hearted cooperation. It is a process of bringing people and organization together so that the goals of each are met. It is commitment oriented. People-centered: SHRM is about people at work both as individuals and a group. It tries to help employees to develop their potential fully via training and survey. It comprises people-related functions like hiring, training and development, performance appraisal, working environment, etc. SHRM has the responsibility of building human capital. People are vital for achieving organizational goals. Organizational performance depends on the quality of people and employees. Human relations philosophy: HRM is a philosophy and the basic assumption is that employees are human beings and not a factor of production like land, labor or capital. HRM recognizes individuality and individual differences. Every manager to be successful must possess social skills to manage people with differing needs. An integrated concept: SHRM in its scope includes personnel aspect, welfare aspect and industrial relations aspect in itself. It is also integrated as it concern with not only acquisition, but also development, utilization, and maintenance. Summary SHRM Activities in FedEx: Staffing Planning (pipeline development) Benefits Planning Retirement Planning Compliance Page 6 Donia Adel – Strategic Human Resource Management Performance Enhancement Consulting Employee Relation Labor Negotiations Executive Compensation Employee Development Management Development Recruitment Interviewing Payroll Benefits Administration Retirement Administration Employee Records Relocation Administration Recruitment Information Processing, and Employee Assistance Programs. HRM Models: There are models like Harvard, Contingency model, D. Guest, M. Patterson & Best practice model. Only Harvard Framework was briefly explained here as it matches FedEx strategic human resources management. The Harvard Framework: 1. Line managers accept more responsibilities for ensuring the alignment of competitive strategy and personal policies 2. Personnel has the mission of setting policies that govern how personnel activities are developed and implemented in ways that make them more mutually reinforcing Page 7 Donia Adel – Strategic Human Resource Management Figure 1 The Model Framework HR policies areas: It is proposed that medium to long-term consequences both benefits and costs of human resource policies should be e aluated at th ee le els: I di idual O ga izatio al “o ietal. These i tu should e a al zed usi g the fou C’s or HR policies that have to be achieved, which are as follows: Commitment Congruence Competence Cost effectiveness Human resources flow; where the right person is selected to fill the right job and according to organizational need Reward systems; use the right mix of incentives to motivate and engage employees who then concentrate on improving their performance Employee influence; delegated levels of authority, responsibility, power including appoint the right HR head to provide the necessary leadership in making HR as a strategic partner Works systems; draw up an HR mission with well-defined HR objectives in alignment with the overall organizational goals Provide the right set of training and development programs on an on-going basis for every level of employees Implement performance management system to identify high-performing employees for the purpose of giving rewards cohering with performance, work quality and output. Compensation & Benefits: Give recognition and implement a fair reward system to retain quality employees Page 8 Donia Adel – Strategic Human Resource Management Section 1.2 – Assess the purpose of SHRM activities in FedEx All of the above implies that organizations need to put into practice to use a strategic HRM in order to heighten organizational performance and in turn to reach the organizational objectives & goals. Having explained all the above, there is a need to give evidence how it was applied in FedEx case study: FedEx believed that Human capital plays a strategic role in the success of its organization and are a major source of competitive advantage. Since FedEx was essentially a service organization, employees were largely responsible for ensuring success. HRM strategies was integrated with business plans (Vertical integration) HRM strategies was linked to each other to provide mutual support (Horizontal integration) Since they are airfreight system which should deliver documents overnight, HRM strategies approaches was formulated and implemented to enable them to attain market growth and compete effectively. In order to achieve the above FedEx realized that they have to hire the best skilled management that are able to formulate strategies, implement it and most importantly aligning strategies in relation to set objectives. FedEx has set Strategic HRM activities that management has to follow, in order to enables for the daily activities to function effectively and efficiently a d to i teg ate the o ga izatio ’s hu a esou es ith its o je ti es. FedEx management focused on providing a suitable work environment for its employees not only encouraged employees to better perform and deliver the best they have but also to come up with innovative solutions: o FedEx management developed several innovative HRM programs over the years which was analyzed, developed, applied and served as a reference for many other companies o A philosoph alled People –service-P ofit P“P as de eloped, it as ased o the fa t that the taki g care of its main asset being its employees, they would provide effective & efficient services to customers which of course will results in increase in profits generation o Survey action program was generated, where employees was asked to fill in a survey based on the results management held feedback sessions with employees to generate findings, helping in identifying work related obstacles regardless whether it was internal or external to their subject departments o Created an online computer job posting system that allows hourly employees to post for any available job o Created a leadership program that encouraged non-managerial personal to move to available managerial level within the company, which in turned served as an on- going fresh management level which are aware of the daily activities more than anyone as they were once literally physically involved. o Benefit and reward programs was created as an employee retention solution o The main target was to produce effective and HRM strategy that supports productivity and profitability Page 9 Donia Adel – Strategic Human Resource Management Section 1.3 – Evaluate the contribution of SHRM to the achievement of FedEx’s objectives Having SHRM system in place, the contributions to Fede al E p ess’s st ateg is to diffe e tiate itself f o its o petito s offering superior customer service, immaculate customer service and overnight parcel delivery. Since the same basic technologies were available to UPS, DHL, and FedEx other competitors, it is FedEx HR strategies that has led to enjoy competitive advantage by ways of innovation, technology and human resources management capabilities, which in turn has contributed to: Market Growth: Ability to expand and to improve via set programs of e plo ees’ motivations & development. Thus less labor turnover, employees would be loyal to company & job and endeavor to reach set time frames and targets with a lot of enthusiasm leading to an extensive expansion in other countries with the same success story. Increase of Revenue: FedEx’s e plo ee-friendly policies resulted in very low turnover rate. In 2000, the turnover rate was estimated to be below 6% while industry average was 20%. Having said this, the employee endeavored in high dedication and loyalty of employees lead to high ualit of p odu ti it hi h ill i tu aise e e ues a d usto e satisfa tio leadi g to est o pa profile. Expansion: High revenue has definitely leaded to opportunities in investing either in other companies or seeking different investments that will serve the global service of FedEx like having their own Airline service. Organizational Development (OD) & Team Work: OD tends to increase the employees effectiveness which will improve the process in the organization, such as formulation and implementation of strategy and facilitate the transformation of the organization to be one of the well-recognized and leading company in the courier industry. FedEx SHRM strategies lead the e plo ee to elie e i O e E tit app oa h to the extent that some employees in hard time has chosen to add their own financial to the success of the work performance. More over FedEx strongly believed in a simple formula; High productivity, high innovation, low turnover, low absenteeism, less customer complaints. FedEx de eloped its “HRM s ste s o e the ea s to ake su e that it is Best o pa ies to Wo k Fo a d as an employeefriendly, service oriented organization in the world, which it was actually awarded such a reputation via recognition from reputable magazine and institutes. Moreover, served as a benchmark for many other organizations particularly in the service industry. Page 10 Donia Adel – Strategic Human Resource Management Source: Dr. Nahla Salama notes on Strategic Human Resource Management 2014 FedEx HR practices case study http://managementstudyguide.com/importance-of-hrm.htm http://www.lcibs.org/sites/default/files/files/SHRM.pdf http://www.toknowpress.net/ISBN/978-961-6914-02-4/papers/ML13-360.pdf https://www.uop.edu.jo/Repository/41/Strategic%20Human%20Resource%20Management_Part1_Part8.pdf http://www.yourarticlelibrary.com/management/10-most-important-characteristics-of-human-resource-management/5423/ http://www.ukessays.com/essays/management/the-characteristics-of-hrm-approaches-management-essay.php http://www.ocl.ac/docs/PGD/EDSML/docs/10/UNIT%2010-%20SESSION-%203%20Models%20of%20HRM.pdf http://www.managementstudyhq.com/wp-content/uploads/2013/10/Harvard_Model.jpg http://www.ukessays.com/essays/business/importance-of-strategic-human-resource-management-business-essay.php http://www.strategic-human-resource.com/strategic-human-resource-management.html http://managehrnetwork.blogspot.com/2008/08/strategic-human-resource-management.html http://rpglounge.in/kc/admin/upload/1300252681.pdf http://www.ukessays.com/essays/business/a-company-overview-of-federal-express-business-essay.php#ixzz3KxYFSf76 Page 11 Donia Adel – Strategic Human Resource Management Task 2: Human Resource Plan Section 2.1 – Analyze the Business Factors that underpin HR planning in an organization Hu a Resou e Ma age e t HRM is a st ategi a d ohe e t app oa h i a agi g a o ga izatio ’s most valued assets- the individuals who are working collectively and contributes in achieving success of the objectives of the business. Human resource planning is a systematic series of continuing processes that determines the needs of an organization and plans them accordingly. The reason human resources are planned is due to the simple need that any successful business needs – efficiency. Planning eliminates wasted time and resources by preparation. The planning process will have to be preceded by thorough analysis to the following: Internal Factors o Organization needs:  Business change/growth and technology change should lead to sphere of influence analysis as it will affect internal working arrangements  In FedEx Employees needed to adapt to changes but they were trained accordingly o Skills requirements & Workforce profile:  FedE auto ated its HR s ste s. This led to the eatio of o o li e data ase alled Pe so el Re o ds I fo atio “ ste PRI“M hi h fo ed hu a esou e i fo atio s ste of FedEx Creating a comprehensive and detailed database to assess current labor force in terms of Skills and present/future requirements  The same database will then be used to view & monitor the categories of employees working for the company – which will entail defining factors such as age, gender, background and availability. These factors will help fulfill any legislation requirements and plan for the future  Profiling the qualifications and training of labor force will allow the organization to use any special skills External Factors: o Supply of labor - What are the trends of the area the business is in? Is there any particular type of trade in that area? Nationally, the supply of labor is dependent on trends in unemployment and the types of skills that are needed by employers e.g.: increase in unemployment might lead to increase in skills with low salary o Labor costs - it will depend on whether the business is capital or labor intensive and the extent to which the skills needed by that organization are available and accessible. In FedEx some region labor costs was governed by the national minimum wage, thus had to plan it when making their salary structure o Workforce skills & Labor market competition:  Using published national statistics and maybe surveys, organizations can see the types of skills that are available in their local domain or region Page 12 Donia Adel – Strategic Human Resource Management  o o o o Organization will have to consider their future requirements and those of their competitors in order to attract the right caliber with the correct capacities  FedEx lured functional experts by offering them stock options and opportunities to work in a stimulating environment  Then decide what type of HR practices will be used to have the proper workforce in parallel with consideration to available funds Government policy - Government policy and changes to education policies can lead to gaps in skills, or gaps in skills being addressed. For instance, in the U.S., the Worker Adjustment and Retraining Notification (WARN) Act requires most employers with 100 or more employees to provide 60-calendar-day advance notice of facility closings and mass layoffs of employees. Employees entitled to notice under the WARN Act include managers and supervisors, and hourly wage and salaried workers Changing i o al o ki g o ditio & E plo ee e pe tatio :  'A job for life' used to be a standard idea in the workplace, but now employees need a wider range of skills and be willing to change employer and job role in order to stay in work  Overnight working, flexible working hours and working from home are now commonplace in the workplace - Everyone is different and employees may have business at home to take care of meaning they cannot work full-time  Flat organizational structures mean employees may have to move to get a promotion but in FedEx the hierarchical organization structure and HR practices allowed for promotion  In FedEx an online job application was implemented for candidates to apply for the kind of job that would fit their requirements and needs Impact of automation:  With the constant development and change in technology, organization will have to plan for technology compatibility. In FedEx internet and email, customers entering their own details online, employees automated access to whatever information is needed either outside or inside the organization Demand for products and services:  HR requirements and practices will have to adapt to the changes in demand of good or services  Examples:  Changing in technology or competitor new technology intervention will lead the organization output unneeded. In FedEx automated tracking of shipment was a necessity as customer did not want to call  Changing in market demand or requirements will lead in excess of goods or services Source: Dr. Nahla Salama notes on Strategic Human Resource Management 2014 FedEx HR practices case study http://rpglounge.in/kc/admin/upload/1300252681.pdf http://www.wisegeek.com/what-is-strategic-human-resource-management.htm#didyouknowout http://smallbusiness.chron.com/external-internal-environmental-factors-influencing-hr-activities-34745.html http://www.ukessays.com/essays/business/answers-to-tasks-on-aspects-of-human-resource-management-business-essay.php#ixzz3KwZQSOsS http://www.ukessays.com/essays/management/analysing-the-factors-that-underpin-human-resource-planning-management-essay.php http://teachingwithcrump.weebly.com/p1--m1---the-factors-involved-in-hr-planning-in-organisations.html Page 13 Donia Adel – Strategic Human Resource Management Section 2.2 – Asses the human resource requirements in a given situation with evidence on FedEx With the development of technology, data collection and presentation has become much more sophisticated and efficient. HR planners can use technology very effectively to analyze data about the workforce. Information such as experience, length of service, qualifications, potential attendance, productivity, efficiency and personal data; all have contributed to the accurate analysis of human resource utilization. Evaluation is suggested to be based on outputs rather than inputs. FedEx exercised a variety of strategies/techniques but since we are to asses a given situation, only some has been chosen. Classify HR by organizational demography, more specifically by department, occupation, skill level, status, age, gender, aptitudes, experience, qualifications, job history, length of service and ethnicity: o FedEx auto ated its HR s ste s. This led to the eatio of o o li e data ase alled Pe so el Re o ds I fo atio “ ste PRI“M hi h fo ed hu a esou e i fo atio s ste of FedEx. By 1990, PRISM developed into a fully integrated, automated, comprehensive database of employee records. It also gathered key employee related data on recruitment and selection, training and development & performance appraisal o FedEx conducted SFA program every year in April to get holistic picture about the functioning of the management, the leadership and managerial skills of its managers, as perceived by the employees. Recruitment and Selection with determination to the current situation o FedEx used to receive myriad number of applications for various position o The old manual process which required the employees to fill a 20-page applications for as per the US government proved to be inconvenient o In 2001 FedEx automated the process by developing an online job application form, accessible to the applicants through the Ca ee Ce te i o pla ed o .fede . o .its jo appli atio a d o Even further, the site helped:  The applicants could apply for positions which matched their skill sets  Could apply online for internships  Could fill details according to their preference (Location, Nature of job, etc)  The site also helped the applicants create an online resume Ensuring all personnel/HRM activities help to add value by helping the organization achieve its objective via Training & development o FedEx gave considerable emphasis to the training of those employees who interacted directly with customers o These included the customer service representatives (CSRs), the courier and the service agents o The CSR trainees received intensive training before they were allowed to handles customer calls o The training program involved educating CSRs about FedEx service offerings and putting them in conditions resembling actual workplace conditions o EXCEL program for FedEx officer: to break barriers between its operating companies and make sure that is officers has the right exposure to the work in which they operates Page 14 Donia Adel – Strategic Human Resource Management Motivating workers to achieve improved performance o To encourage non-managerial cadre employees to move to the managerial level within the organization, FedEx de ised a u i ue p og a k o as Leade ship E aluatio a d A a e ess P o ess LEAP o Under the LEAP program, employees got the opportunity to assess their ability to take up managerial responsibility o Apart from the regular employees, FedEx hired temporary employees who were paid on an hourly basis, to provide temporary employees permanent employment; FedEx created an on-line job posting system known as Jo Cha ge Appli a t T a ki g “ ste JCAT“). Since (JCATS) offered opportunity to become permanent employees, it motivated them to work hard and perform well o All employees who were over 21 years of age and who has worked at FedEx for a minimum of 1000 hours within a calendar year automatically qualifies for the profit sharing plan on the first day of June or December every year Source: Dr. Nahla Salama notes on Strategic Human Resource Management 2014 FedEx HR practices case study http://www.ukessays.com/essays/business/answers-to-tasks-on-aspects-of-human-resource-management-business-essay.php#ixzz3KxlJMXhd http://rpglounge.in/kc/admin/upload/1300252681.pdf Page 15 Donia Adel – Strategic Human Resource Management Section 2.3 – Develop a human resources plan for FedEx cooperation To develop a human resource plan for FedEx this major stages in workforce planning link the strategic & human resources planning processes using SMART (Specific – Achievable – Measurable – Realistic – Time Base) approach These are general employees FedEx’s i p o e e ts equirements so to give a hint why they developed their HR practices to achieve it: o To perform their jobs in a professional, productive and thorough manner o Willing to take risks and to take up challenges o Entrepreneurial by nature o To be courteous to customers and fellow employees o To be trustworthy and honest in all business dealings o To abide by reasonable number of rules and a standard of conduct required by the business o Requirements to Automate the application for job at FedEx Recruitment & Selection: Recruiting around 25K globally around the year including regular and temporary positions Increase accuracy of quality of data by 80% Candidate should be willing to take risks, entrepreneurial by nature, challenges due to the dynamitic working environment and to make sure that they can perform based on a relatively unknown overnight express delivery concept which was not tested nor proven. o Recruiting candidates from top universities all of its operating countries o Offering internship programs which prepared candidates for future job assignments o Luring functional experts by offering stock options o Due to the USA government regulation a 20 pages application was quite inconvenience for applicant and FedEx. Thus there is a necessity to implement and create automated system that will allow candidates to apply online o The same automated system will help applicants to select their positions which matched their skills o Student applying for internship to be included within application automated system o The automated system will also endeavor in letting applicants fill in details pertaining to their preference like location, nature of job etc..) as well as assisting in creating his/her resume o The automated system had to be accomplished within a 6 month period of time to achieve an estimate o The applicant information should e at hed ith the o pa ’s jo eligi ilit o s e o ded i PRI“M (mentioned in Task 2.2) o Candidates take an aptitude test which tested basic skills like mathematics, English and logic. o The written test to be followed by an interview o The candidates who passed the interview had to pass a fitness and a background check o Finally if all is passed successfully employment at FedEx o The new automated process succeeded to:  Achieve the SMART objective, which is employing 25K employees Page 16 Donia Adel – Strategic Human Resource Management     Having the right skill in the right position with the right working environment that suits the capacity of the employees Expedite the screening process Reduce the processing time by 50% Enable HR staff to concentrate on tasks such as checking the references and follow-up and quickly fulfill the HR formalities Training & Development: Based on the fact that there are 25K employee employed yearly the following became a SMART objectives: Training the new employees to successfully fit in their current skills to the working environment o All new employee undertake an orientation program which educated them about FedEx philosophy, policies and the nature of the relationship between superiors and peers o Then followed by a training program which varies depending upon the type of job o The manager would be given instructions regarding the way the new recruits should be imparted on the job-training o Especial training to the employees who directly interacted with customers; Customer Service representatives (CSR)  The CSR received a training of 8 weeks of intensive training before engaging directly with customers  Putting them in conditions resembling actual workplace conditions  The trainees are asked to sit at a computer terminal to listen to live calls made by customers so they can get a feel of the real-time situation  During the training four tests are undertaken on job skills  The trainees has to score a minimum of 85% on these tests  Apa t f o C“R’s, ou ie a d se i e age ts e ei ed t ai i g fo eeks efo e ei g assig ed field jobs o All of the above have contributed to:  To make sure that the employees directly infuse its capacity into full & accurate performance  To minimize chances of employees making mistakes which will minimize the number of customer complaint & delayed shipment Developing the previous employed from previous years employees either for higher position or to better develop FedEx should undertake imparted proper training so employees can handle the tasks as expected. The training process should not only concentrate on jo-related skills but to significantly contribute toward the overall development of the employees: o In order to test employees proficiency at their respective jobs a job knowledge testing program conducted every 6 months o The employees can take the online test from computer terminal within the company o The marks scored by the employee are received within 24 hours and recorded in the PRISM (mentioned in task 2.2) o The area of deficiency if any is identified and provided reference material to help enhance their performance Page 17 Donia Adel – Strategic Human Resource Management o o o o The employee who failed the test in the second time were required to have further training before they took the test again If they fail for the third times a termination of his contract will have to be submitted Create a Leadership Development institute (LDI) which develops several training programs for various levels of management-cadre employees.  LDI to develop an 11-week management development program called Field Applied Management Education (FAME). This program is designated for training on leadership and field operation In o de to t ai the o pa ’s e f o t-line managers  Manager who seeks next level of leadership are trained in different leadership environments for the first 6 months of the program. Later, the participants swap jobs to put their leadership skills to test  To break barrier between its operating companies and make sure that its officers has the right exposure to the world in which they operate. A pilot team spent 10 days in his respective managerial region to experience the marketplace and learn how to do business from a grassroots perspective All of the above have contributed to:  Align all the skills to the right position  Make sure that none of the current position is not properly functioning or with less capacity or could have been better  Upgrading the management level to take leadership tasks Growth opportunities & Employee Communication: Increase level of participation in SFA and percentage of engaged staff by 60% : Turnover rate reduced to reach 1% o Creating a Survey-Feedback-Action (SFA)  Employees to be divided into work groups  The representative of these work groups to be asked to respond to a questionnaire of 32 questions on their immediate superior and on management in general  The results of the survey is tabulated and handed over to respective work group managers.  The managers in turn conducted feedback sessions with the employees, discussing the survey results and identifying the problems which needed to be addresses  After these sessions are conducted, the members of the work group sets a formal action plan to solve identified problems  The plan is periodically reviewed to check the progress of the remedial actions being taken.  The online survey enable the employees to frankly express their views on the management since they are anonymously  The SFA will help in taking decision regarding promotions and of course evaluating the performance of the managerial cadre employees  It also helped in solving employee problems and improves workplace relations. Page 18 Donia Adel – Strategic Human Resource Management Promoting people from within the organization for higher management cadres and reducing the turnover by 10%: Turnover rate reduced to reach 1% o o o To encourage the non-managerial cadre employees to move to a managerial level within the organization  It was observed that 10% of the candidate quitted their new job after 14 months  The Leadership Evaluation & Awareness Process (LEAP) is created under which the employees get the opportunities to assess their ability to take up managerial responsibility  Assessment of the employee leadership skills  Evaluation of the employee Apart from the regular employees, FedEx encouraged the temporary employees to gain regular employment  Designing on-li e jo posti g s ste alled as Jo Cha ge Appli a t T a ki g “ ste JCAT“  The available is to be posted in JCATS  Once the applicant applied for the desired position the system retrieve the job request from PRISM  Based on the records, which indicates the length of the service and on-the-job performance, applicants are given numerical scores and ranked accordingly; the higher the score the more change there is for a permanent position All of the above have contributed to:  Regular employees who were seeking a job change or wanted to transfer to a new place were also eligible to post their applications through JCATS  Since JCATS offered temporary employees the opportunity to become permanent employees, it motivated them to work hard & perform well  Upgrading the management level to take leadership roles Section 2.4 – Critically evaluate how a human resources plan can contribute to meeting an organization’s objectives FedEx is a service organization; its su ess depe ded hea il o its e plo ees. A People-Service-P ofit P“P philosoph was implemented and developed. According to this philosophy, if the employees are well taken care of they would provide efficient service to the customer which in turn will turn benefit the company by generating more profits. Owing to the fact that the employees are taken good care of and are delegated with more power and authority, they reciprocally take care of the organization by delivering ace quality of service thereby facilitating the organization in reaping more profits. This philosophy was the common core base of all management decisions taken by FedEx. Examples: Since one of the main objectives for FedEx was to provide suitable work environment that encouraged employees to come up with innovative solutions. Employees responded positively to the faith reposed in them and displayed exemplary commitment towards their work. The extend of the commitment of the employees was articulated in their discipline action especially when the company faced severe financial difficulties, the employees were prepared Page 19 Donia Adel – Strategic Human Resource Management to sell their personal belongings and use their own credit cards to purchase fuel to deliver the packages to the customers. Even when the employees did not receive their salary on time, they continued working with FedEx When created the PRISM and on line application system: o Achieve the SMART objective, which is employing 25K employees o Having the right skill in the right position with the right working environment that suits the capacity of the employees o Expedite the screening process o Reduce the processing time by 50% o Enable HR staff to concentrate on tasks such as checking the references and follow-up and quickly fulfill the HR formalities The Training & Development plan: o Expand career development opportunities, engage supervisors in developing the careers of their staff and de o st ate Depa t e t’s ommitment to staff career development o Establish management development curriculum based on the competency assessment of the target group and to provide training and development required to bridge identified competency gaps o Make sure that none of the current position is not properly functioning or with less capacity or could have been better o Upgrading the management level to take leadership tasks Motivating workers improved performance achievements; there is always a chance to improve, develop and gave a change to new skills to evolve and upgrade. The SFA will help in taking decision regarding promotions and of course evaluating the performance of the managerial cadre employees. Communicate clear promotion criteria; to create and implement a succession plan It helped in solving employee problems and improve workplace relations Develop the mindset and necessary skills to manage and deal with change effectively An estimate of 3,000 FedEx employees appeared for the LEAP which helped management assess the leadership and managerial skills of its employees and also provide employees the opportunity to assess their leadership potential Turnover rate reduced to reach 1%: o This being the best employer knows the trick of successful and effective employee retention mechanisms. There is no dearth of career plans or opportunities for the FedEx employees and this is one crucial reason why FedEx is capable of successfully retaining its invaluable workforce. o Promotion-from-within policy enables elevating the employees in the hierarchical rungs from within. o Employees' performance, efforts and contributions are well-recognized and exceptional employees are awarded for their competencies and proficiencies. o Open and transparent communication too plays a great role in reducing the employee turnover rates. o Employees should take pride in what they do and this is where imparting proper training to hone the e plo ees’ skills e o es esse tial. o FedEx has a well-defined on-the-job training mechanism which greatly helps in enabling the employees perform a meaningful job for which they can own pride and responsibility Page 20 Donia Adel – Strategic Human Resource Management Source: Dr. Nahla Salama notes on Strategic Human Resource Management 2014 FedEx HR practices case study http://rpglounge.in/kc/admin/upload/1300252681.pdf http://www.hr.virginia.edu/uploads/documents/media/Writing_SMART_Goals.pdf http://www.brighthub.com/office/human-resources/articles/116116.aspx#imgn_1 http://hr.wayne.edu/leads/phase1/smart-objectives.php http://www.ukessays.com/essays/business/a-company-overview-of-federal-express-business-essay.php Page 21 Donia Adel – Strategic Human Resource Management Task 3: Organization Policies: Section 3.1 – Explain the purpose of human resource management policies in an organizations Why policies are important HR policies o Support the way an organization defines roles and rules o explain consequences of actions and behavior o provide employees with tools necessary to do their work o are formulated when there is  regulatory requirements that expressly required an organization to have a policy in place  significant confusion about certain areas of the business or how things should be done  a necessity to create a culture of rules or standard to be followed consistently and reduce management flexibility to treat each situation as unique o there is no benchmarking or template for policies but rather each organization should develop policies very specific to the type of work and in compliance with the guidelines set to reach organization strategic goals Policies serve several important functions: o Communicate values and expectations for how things are done at your organization o Keep the organization in compliance with legislation and provide protection against employment claims o Document and implement best practices appropriate to the organization o Support consistent treatment of staff, fairness and transparency o Help management to make decisions that are consistent, uniform and predictable o Protect individuals and the organization from the pressures of expediency Defining policy and procedure Policies: o Formal statement of a principle or rule that members of an organization must follow o Each policy addresses an issue important to the organization's mission or operations o Written as statements or rules. Procedures: o The mechanism on how to carry out or implement policies o Poli ies a e the hat a d the p o edu es is the Ho to o Written as instructions but in logical and most importantly feasible steps Structure HR policies and procedures provide workplace structure. Absent certain policies, such as working hours, disciplinary action, performance reviews and rules concerning worker safety, the work environment could be unruly. Since not all organizations have the same level of structure; large employers generally are known to have far more bureaucracy than small companies. Moreover, HR policies and procedures give HR departments a sense of structure as well. For example, HR departmental Page 22 Donia Adel – Strategic Human Resource Management policies concerning budget typically are matters addressed by HR leadership, such as justifications for additional allocations and measurement for return on investment in HR activities. Fairness HR policies and procedures support equal employment opportunity in giving fair treatment to applicants and employees throughout the hiring process and the employment experience. For example, for an organization that doesn't publish its EEO policies such as employee rights under Title VII of the Civil Rights Act of 1964, the guidelines for its recruitment and selection process would be hazy at best. Recruiters and hiring managers who are unaware of nondiscrimination regulations and fair employment practices wouldn't have reason to believe that biased hiring practices are unfair without HR policies that govern fair treatment. Best Practices Many organizations conduct routine analyses of their business operations. HR policies and procedures can aid in the analysis of HR practices and overall business practices. When all the HR policies and procedures are reviewed, those that have the most positive effects on the organization generally are called "best practices." Best practices are then replicated for use throughout other departments or in other companies within or outside the same industry. Strategy HR policies and procedures are the functional elements of an organization's strategic plan, i.e. policies are the steps necessary to achieve strategic goals. Through a review of the company's HR policies and procedures, leadership teams that develop strategic maps for the company learn what works and what doesn't work concerning HR procedures and the work environment. Consistency Achieving consistent operations is one of the reasons that HR policies and procedures are strongly recommended. HR staff has an obligation to handle policies and procedures employment matters consistently to prevent workplace conflict. For example, addressing benefits questions from employees in the sales department more expediently than those from employees in the warehouse division can create significant problems for the organization. Inconsistencies lead to employee dissatisfaction and, ultimately, workplace conflict. Areas where policies are commonly established: It is imperative review relevant federal and provincial employment legislation to understand the policies that are required for compliance in your jurisdiction. Organizations commonly have written policies in the following areas: Code of Conduct Confidentiality Conflict of Interest Working conditions Attendance Page 23 Donia Adel – Strategic Human Resource Management Hours of Operations Termination (Voluntary and Involuntary) Recruitment Compensation Performance Management Learning and development Benefits and Eligibility Overtime Privacy Employee Information Bereavement Leave Compassionate Leave Vacation Sick Leave, Short Term Disability, Long Term Disability Maternity, Parental, and Adoption Leave Unpaid Leave Jury Duty Family Leave Grievance/Conflict Resolution Formal complaint process Disciplinary Discrimination and Harassment/Respectful Workplace Health and Safety Accident Reporting Workplace Violence Alcohol and Drug Use Policy Use of Company Equipment General policy on the review and update of organization policies Page 24 Donia Adel – Strategic Human Resource Management Section 3.2 – Analyze the impact of regulatory requirements on human resource management policies in an organizations Any HR policies that are develop around the above topics policies mentioned in 3.1, and any others covered by employment standards, must not provide less than what is offered in the legislation and/ or regulations. The employment standards legislation offers minimum standards; employers are free to develop policies or practices that enhance (provide better standards) than what is allowed for in the law. For policies required by legislation, much of the policy content may be driven by the requirements of the legislation. It is not feasible to review all the possible legislation. Nevertheless, the organization needs to be aware of the legislation that applies in he egio s’ jurisdiction and area of work. At minimum, the following should be considered: Employment/Labor Standards Legal and regulatory requirements relating to pay Discrimination Equality Employment rights and responsibility Contractual terms and conditions Data protection Disability Discrimination Minimum Wage Working Time Directive Race Relation Taxes & social insurance Privacy legislation Occupational Health and Safety Human Rights Workers Compensation Organizations also need to be aware of how legislation may periodically be applicable to their workplace, such as provisions for releasing staff to vote on Election Day or legislation relevant to organizing a union. Other legal considerations may be specific to workplace. Thus the following important notes should be considered when formulating policies & procedures: Legal implications of developing a policy Even though a policy may not be expressly required to govern a situation, when developed and not followed it could putt the organization at risk. Any collective agreements that need to be considered Legislation when ignored can block the protection against employment claims. For example, for an organization that doesn't publish its EEO policies such as employee rights under Title VII of the Civil Rights Act of 1964, the guidelines Page 25 Donia Adel – Strategic Human Resource Management for its recruitment and selection process would be hazy at best. Recruiters and hiring managers who are unaware of nondiscrimination regulations and fair employment practices wouldn't have reason to believe that biased hiring practices are unfair without HR policies that govern fair treatment. Labor laws: cover the whole scope of employment, from the employee’s hiring up to termination. Department of Labor administers major statutes and regulations affecting business and workers. The laws prescribe standards for wages and hours, safety and health, health benefits, retirement, workers’ compensation and working conditions. They outline basic provisions and requirements, which employers or employees are covered, employee rights, record keeping, reporting and penalties for noncompliance. There are also specific laws pertaining to employers with federal contracts. National Government Laws: Human resources management involves complying with national laws governing different aspects of employment such as family and medical leave, posting requirements, employer notice prior to termination, safety and security, wage and hours, and workers’ compensation. Employees may also have rights under state common law, including privacy and contract rights. Many local governments have their own employment-related laws, which cover a wider range than local government or state laws. International Laws: Increasing globalization has seen large organizations doing business internationally or setting up operations overseas. Ensuring legal and regulatory compliance can be very challenging in a foreign environment where laws and business practices may be different. Companies must take note of local laws impacting not only how their business is run, but also how their employees are managed. This includes management of employees on travel or international assignments and employees hired locally. Application: Human resources professionals must take note of ordinances and implementing regulations, and precedents set by labor and local government courts and rulings of administrative agencies. They can refer to online resources of state and local government agencies to assist them with compliance. Aside from the Department of Labor and state agencies, HR professionals may also refer to other agencies enforcing employment-related laws which are under the government umbrella laws. FedEx Policies & Governance examples: Across the globe, the FedEx name symbolizes great service, reliability and integrity. To maintain this reputation, every FedEx team member must demonstrate personal responsibility and professional conduct every day. The FedEx Code of Business Conduct and Ethics sets out the general principles that guide team members in upholding high standards of business and personal ethics. To ensure all employees are aware of these principles, they receive Code of Business Conduct and Ethics training upon joining FedEx and on a periodic basis thereafter. This training is delivered in a variety of formats including live training or through online modules. Upon contracting with FedEx, independent contractors agree to abide by the Code where applicable. Additionally, there are periodically release communications highlighting key principles set forth in the FedEx Code. These communications are designed to help team members remain vigilant regarding these important issues and help employees to deliver to make every FedEx experience outstanding. Page 26 Donia Adel – Strategic Human Resource Management Activities such as fraud, theft, falsification of company documents or records, misuse of company assets, possession of firearms and alcohol or drug use on company property, and criminal activities, as well as disruptive behavior, are prohibited. Any of these activities subject employees to disciplinary action or termination of employment. The FedEx Code requires employees and independent contractors to report immediately any suspected violation of those standards, and the FedEx Alert Line provides one mechanism for doing so. Using the Alert Line, callers are able to make anonymous, confidential reports, 24 hours a day, of suspected legal and ethical violations within FedEx by making a toll-free phone call, and the FedEx Code prohibits retaliation for making such a report. The Code and Alert Line is promoted to team members through a variety of means, which include various operating company communications, as well as framing and hanging large Alert Line posters — translated into the appropriate local language — in permanent, conspicuous spots at all FedEx locations. In the event that there is a necessity to close a facility, there is compliance with all applicable laws of the countries and local areas in which they operate. For instance, in the U.S., the Worker Adjustment and Retraining Notification (WARN) Act requires most employers with 100 or more employees to provide 60-calendar-day advance notice of facility closings and mass layoffs of employees. Employees entitled to notice under the WARN Act include managers and supervisors, and hourly wage and salaried workers Source: Dr. Nahla Salama notes on Strategic Human Resource Management 2014 FedEx HR practices case study http://hrcouncil.ca/hr-toolkit/policies-guideline.cfm http://www.ukessays.com/essays/business/a-company-overview-of-federal-express-business-essay.php http://rpglounge.in/kc/admin/upload/1300252681.pdf http://yourbusiness.azcentral.com/purpose-hr-policies-procedures-2055.html http://smallbusiness.chron.com/legal-regulatory-requirements-human-resource-process-20590.html http://about.van.fedex.com/assets/_pdf/2012_FedEx_Global_Citizenship_Goals_Progress.pdf http://hrcouncil.ca/hr-toolkit/policies-employment-legislation.cfm Page 27 Donia Adel – Strategic Human Resource Management Task 4 – Review of HRM Structure and Culture Section 4.1 – Analyze the impact of organization structure on the management of human resources The study of organizations includes a focus on optimizing organizational structure. According to management science, most human organizations fall roughly into four types: Pyramids or hierarchies, Committees or juries, Matrix organizations & Ecologies In this report, the only application will be on Hierarchical Organization Structure It is the most common of all organizational structures. Employees are ranked at various levels within the organization; each level is one above the other. At each level, one person has a number of workers directly under them, within their span of control. Organization Structure Concept: An organizational structure is a mostly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim Organizations are a number of clustered entities. The structure of an organization is usually set up in one of a variety of styles, dependent on their objectives and ambience The structure of an organization will determine the modes in which it shall operate and will perform Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities Ordinary description of such entities is as branch, site, department, work groups and single people Contracting of individuals in an organizational structure normally is under timely limited work contracts or work orders or under timely unlimited employment contracts or program orders FedEx Organizational Structure: FedEx is holding company of separate businesses such as FedEx Express, FedEx Freight, FedEx Ground, FedEx Services, FedEx Custom Critical, FedEx Trade Networks and FedEx Kinkos. The top level of each company in the Conglomerate is headed by a combination of Chief Executive Officer / President / Chairman. For the case of FedEx Express, top management comprises of President, Chief Executive Officer who provide leadership and control the FedEx Express operations worldwide. There is an Executive Vice President, Operations and Systems Support who is accountable for all U.S. based FedEx Express Operations as well as worldwide air operations. Page 28 Donia Adel – Strategic Human Resource Management Figure 2 – FedEx example of Organization Structure The global logistics behemoth FedEx's structure has transcended product, market and geographical barriers and so is a very complex one. It is a hierarchical centralized organization with its founder Fred Smith runs the entire business with complete adroitness. FedEx is governed by a highly hierarchical centralized control with the top government taking all decisions. Only such a hierarchical centralized command and control has made the concept of fast and reliable delivery system a reality The FedEx is headquartered in Memphis (USA) and it exercises tight control over its various global divisions – such as Middle East and Africa Division, Canada Division, Asia Pacific Division, USA Division & Latin America Division FedEx's high degree of hierarchical centralization facilitates in coordinating its various divisions world-wide and helps in maintaining consistency in decision-making and avoids duplication as well The founder Fred Smith is dauntless leader who makes all bold decisions such as acquiring Flying Tigers in the year 1989 that gave his company a competitive edge in the Air Express market in Asia. He introduced the bar-coding which made FedEx a first to have such a mechanism in Air Freight & Logistics Page 29 Donia Adel – Strategic Human Resource Management Section 4.2 – Analyze the impact of organization culture on the management of human resources Organizational culture: can be defined as thorough concept of knowledge, belief and thoughts of mind and customs in where peoples are expressing their organizational conditioning Organizational culture impact on the HR management: Decision making that can centralized of decentralized Freedom of different level of staff and management Frankness on communication Different leadership styles that is conducted by managers Educational involve and intelligence of employees Attitude of team leading to probability of training and development. Attitude to change specially with the technology. Commitment on the quality and service. Theoretical Model of Culture Charles Handy’s model of organizational culture According to Handy (Armstrong, 2006, p.310), organizational culture is of four types Power culture – central power controls everything and there are very few rules / procedures; bureaucracy is very less; the atmosphere is challenging and competitive, at the same time power-oriented and political too. Hence speedy decisions happen. Role culture – Work is restrained by rules and procedures. Here power is related to positions and not people. Task Culture – This culture is about bringing together the right manpower (workforce) and then allows them to get going. Person culture – When employee forms the cynosure, person culture prevails. The organization exists so as to serve, guide and facilitate such people. A al zi g FedE s e a io usi g Ha d ’s odel, example of combination of power culture: e a a i e at a o lusio that FedE Co po atio is a lea Less bureaucracy and red tape. Employees empowered greatly to take decisions on their own in order to fulfil the organizational objectives by fulfilling promises of overnight delivery, 100% service quality o Decision making is delegated to all employees from various hierarchical rungs are empowered and given equal and fair treatment. For such a complex organizational structure like FedEx, centralization was the way to go from the beginning and this high degree of centralization immensely helped FedEx to adopt a well-planned strategic approach that made execution of long-term plans easier and well-managed o o Page 30 Donia Adel – Strategic Human Resource Management FedEx with its marketing inclinations enjoys a pool of top-notch marketing people and of course it is ably directed and controlled by none other than Fred Smith whose agile decision-making helps to effectively marshal the marketing team's strategies. FedEx's centralized structure is possible mainly due to its early and prompt adoption of IT FedEx's centralization plays a great role in its capability to lead over the rest with its top-rated human resources; it has invested heavily and wisely in various HR activities such as recruitment, training and management and this investment in HR is a strategic move that has helped greatly in attracting, selecting and retaining a talented pool of human resources and in turn helped attaining such an enviable corporate success FedEx culture approach: Assigned a lot in market research activities; it has attracted and employed first-rate marketing experts. Due to centralized control, in FedEx all the business plans are originated, carried out and summed up by its Memphis headquarters. FedEx's corporate policy of putting People First comes from the belief that the ultimate organizational objective Custo e “atisfa tio i a se i e i dust like it e e tuall has to o e e ith E plo ee “atisfa tio Its unparalleled 360-degree HRM system can never be matched or emulated by any of its competitors Its centralized structure enabled it to distribute costs over its complete network and also enables its central headquarters to avail more funds and resources With a strong centralized control and command, FedEx was able to transcend product and geographical barriers FedEx HR system is famous for its top class in terms of practice and existence. The top management and work force in general is stable and turnover rate is 1%; this speaks for the stable, steady and consistent policy and decisionmaking Judgi g the Ha d ’s ultu e lassifi atio , FedE Co po atio is a po e ultu e o a e t ep e eu ial ultu e where employees are given lot of freedom and are self-reliant, self-directed and self-managed. The employees are empowered with the intent of making them get involved and contribute to accomplishing FedE ’s o ga izatio al o je ti es. E plo ees e jo a lot of f ee ei i ope ati g. The HR practices in FedEx – recruitment, selection, bipartite communication (Open-Door Policy, Survey-FeedbackAction), appraisal, rewards, compensation and benefits all are influenced by the FedEx organizational culture. FedE ’s po e a d e t ep e eu ial ultu e atu e i pa ts the hoi e a d sele tio of HR p a ti es. Page 31 Donia Adel – Strategic Human Resource Management Section 4.3 – Examine how the effectiveness of HRM is monitored in an organization FedEx corporate strategy and effective HRM monitoring is to gain competitive advantage using its core capabilities – its uncanny ability to innovate, its technology, its human resource and management capabilities. The HR performance needs to be monitored regularly to enhance the effectiveness. So performance monitoring in FedEx is carried out and the various ways by which the HR performance is assessed are given below against. It is important to mention that the examination of the effectiveness is against some indicators not all: Turnover rate reduced to reach 1% Decrease the turnover of non-managerial employees when moved to management position within 14 month 100% Customer satisfaction Performance Monitoring and Enhancement Performance Appraisal System o FedEx's appraisal system links pay increases to the employees' productivity and performance. Annual performance appraisals are carried out and employees are evaluated on the basis of various job-specific attributes – few noteworthy ones being – customer orientation, team skills, loyalty, technical expertise etc. (Cook, 208, p.205). Apart from hefty pay packages, several attractive prerequisites like – 1) tuition fees reimbursement, 2) travel discounts and 3) jump-seat availability (free flight privileges for employees). All such prerequisites are provided over and above the already entitled hefty pay packages. FedEx also offers a 10% profit-sharing scheme for those valued employees. All such enticing aspects related to compensation and benefits keep the employees happy and motivated and enable FedEx to enjoy unmatched position when compared to its peers. Training & Staff Surveys o FedEx has a well-defined on-the-job training mechanism which greatly helps in enabling the employees perform a meaningful job for which they can own pride and responsibility o FedEx conducts staff surveys on an annual basis and this serves to be crucial business enhancement tool o o Active participation of staff has been monitored over these years This Survey-Feedback-Action (SFA) procedure was introduced with the objective of helping top management in deciding upon issues related to promotions. But then SFA was practiced in reality only to the magnitude of evaluating the employees belonging to the managerial cadre    Participants are supposed to provide replies to 32 questions electronically in a two week period asked about their higher-ups and the overall management anonymously The survey results are collated and tabulated and given to the concerned team managers The managers carry on feedback sessions with the employees, conduct a detailed discussion about  the survey results obtained and spot the issues which ought to be handled Once the feedback sessions conclude, the team members need to draft a formal plan of action to  resolve the spotted issues. The plan is thereon reviewed on a regular basis to monitor the advancement of the corrective measures being carried out. Page 32 Donia Adel – Strategic Human Resource Management  The SFA helps 1) to assess the managerial performance, 2) to resolve employee problems and 3) to enhance relations at work place. Section 4.4 – Make justified recommendations to improve the effectiveness of human resources management in FedEx In this section, it will be difficult to make recommendation since FedEx HRM practices/approaches were awarded & recognized by many institutes and even became a SHRM benchmark for many other companies. Thus it was rather seen to highlight policies applied that enhanced the points that were mentioned in 4.3. FedEx HRM Structure & Culture Policies Turnover rate reduced to reach 1%: No lay-off policy FedE is o e o pa that has pledged to o la -off so lo g as its su i al is ot i uestio . Employees are assured of no lay-offs, fair wages for the work performed, protective benefit package comprising medical, dental, sick leave, disablement insurance cover and retirement plan o Employees are entitled to participate in the company's profit-sharing and also are assured of owning company stocks o HR policy is formulated to respect and reward its ardent and motivated workforce o No lay-off policy is a means of promising job security to the talented FedEx workforce o Such a guarantee for job security combined with the uncommon freedom and empowerment given by FedEx to its workforce does wonders in keeping the workforce committed, inspired and motivated. o He e FedE 's No la -off poli is defi itel a good poli that honors a d app e iates the people fa to . o The success of this HR policy is evident from the performance output from the motivated workforce and also from the low turnover rate that is very less and insignificant is roughly about 1 percent. The obvious drawback in this policy is the possibility of isuse of the lause o la -off policy except under extreme e e ge o ditio s . “u h a thi g happe ed he FedE e o ded ode ate losses i the ea l 99 s it promptly ousted 6000 European employees stating that the no-layoff does not apply under such extreme conditions Turnover rates o FedEx has a very less and insignificant turnover rate of about 1 percent. o This being the best employer knows the trick of successful and effective employee retention mechanisms o There is no dearth of career plans or opportunities for the FedEx employees and this is one crucial reason why FedEx is capable of successfully retaining its invaluable workforce o Promotion-from-within policy enables elevating the employees in the hierarchical rungs from within o Employees' performance, efforts and contributions are well-recognized and exceptional employees are awarded for their competencies and proficiencies o Open and transparent communication too plays a great role in reducing the employee turnover rates. Also, employees should take pride in what they do and this is where imparting proper training to hone the e plo ees’ skills e o es esse tial. FedE has a ell-defined on-the-job training mechanism which greatly helps in enabling the employees perform a meaningful job for which they can own pride and responsibility. o o Page 33 Donia Adel – Strategic Human Resource Management Decrease the turnover of non-managerial employees when moved to management position within 14 month Promotion-from-within policy and increase in management communication level o o o o o o o o FedEx adopts the Promotion-From-Within policy which implies that most of the promotions are filled from within the organization First priority is given to the current workforce within FedEx thereby offering the existing employees career progression chances Employees can access the currently available vacant positions within FedEx and can apply for the same Such a promotion policy also honors and respects FedEx's people-first doctrine and entices all talented, competent existing employees to voluntarily apply for vacant positions Whenever a vacancy arises, current employees are informed in a systematic and consistent manner about such openings before looking out for applicants from outside All competent employees can opt for managerial positions and even non-managerial employees can opt and apply for managerial positions Employees are given extensive training during the first year to succeed in their managerial position Such a promotion policy is indeed a bounty to FedEx employees since it allows for more liberty and freedom to the employees to chisel their career and it also empowers them to make wise career choices by making them more accountable for their choices. 100% Customer satisfaction Open-Door Policy Open-door policy is yet another HR policy defined at FedEx that puts people-first and adheres to the PeopleService-Profit mantra to accomplish 100% customer satisfaction o As per the Open-Door Policy employees belonging to all hierarchical levels are empowered to participate and talk about issues / problems and recommend changes with their higher-ups or anyone in the management o The subject policy strives to provide suggestions and recommendations for enhancing business / functional operations and also to suggest changes to misguided or poorly perceived organizational policies and procedures. When an employee perceives that he or she has to adhere to policies that do not make sense, he or she is free to put forward the same and such open feedback from employees are received with serious intent and are attended to with vigorous analysis. Such policies empower employees to voice their opinions and also encourage them to react to the quality of executive leadership, decision-making processes and style of management. This implies and even encourages that o any employee can memo a senior manager to query and find out the basis on which certain decisions were taken and how at all they were meant to adhere to the company objectives Source: Dr. Nahla Salama notes on Strategic Human Resource Management 2014 FedEx HR practices case study http://rpglounge.in/kc/admin/upload/1300252681.pdf http://www.ukessays.com/essays/business/a-company-overview-of-federal-express-business-essay.php#ixzz3L8JcUDFs http://www.ukessays.com/essays/business/answers-to-tasks-on-aspects-of-human-resource-management-business-essay.php#ixzz3L8PefHKK http://www.ukessays.com/essays/business/impact-of-organisational-structure-on-management-of-hr-business-essay.php Page 34