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Fedex Corporation Case Study

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FedEx Corporation Case Study
Jama Eddleman
Mid-Continent University
HRM 6003
Professor: Dr. J. Gordon
July 14, 2013

FedEx Corporation Case Study
Mixing up the order my papers usually proceed in, I am putting my Biblical worldview first, instead of at the end. There are many organizations and companies today that do not operate as God instructs. The Lord is clear in explaining how to operate a business and how to be a good employee. His instructions for the business world, as with all Christian instruction for our whole lives, is found in the Bible. B – basic; I –information; B – before; L – leaving; E – earth. I found this anagram years ago on a church bulletin board. The scripture I like in regard to this case study and how FedEx tries to honor its employees and remain dedicated to their needs comes from Micah. Verse 6:8 says, “He has showed you, O man, what is good. And what does the Lord require of you? To act justly and love mercy and to walk humbly with your God” (NI V). FedEx appears to be a company that works hard to be just, merciful, and walk humbly. FedEx leaders know that the company would not be where it is today without good employees, and they strive to do all they can to take care of their employees.
FedEx is a brand name known both nationally and worldwide. FedEx began under the name Federal Express. The firm initially specialized in overnight package delivery via air cargo. While the name, size, and services the company offers have changed over the years, one thing has remained constant – the company’s commitment to its employees. The management at FedEx feels the most important element of the company is the human element – its employees. Although FedEx leaders had to make some hard choices over the years, the decision process always took into account the potential effects on employees. This paper discusses the questions relating to the case study provided in our textbook (Anthony, Kacmar, & Perrewe, 2010).

Discussion Question 1
FedEx executives and upper management embrace the company’s corporate philosophy of “People – Service – Profit” (Anthony et al., 2010, p. 594). The company prides itself on its ability to avoid layoffs, unless absolutely necessary. The plans to shrink the IT division may have negative effects on both the organizational culture and employee relations. The first word in the corporate philosophy is “people,” indicating that the company views its employees as the most important factor. Eliminating positions does not seem to follow that philosophy. Employees may feel the company is no longer committed to putting them first. This feeling could lead to the breakdown of the family feel of the organizational culture, as well as putting great strain on relationships between employees and the employee/supervisor relationships.
It is impossible to ward off all back-lash that will stem from the layoffs; however, there are several steps FedEx can take to help minimize some of the negative effects. The first and most important step in reducing negativity is communication. The company must take the time to effectively communicate and explain the situation to the employees. If the company is open and honest regarding the reasons for the layoffs, employees are more likely to at least understand the decision. FedEx could also ask if there are any employees who volunteer to be laid off. Some workers may be more financially able to handle losing their jobs than others, and may be willing to leave so that others less financially stable can keep their jobs. Giving this option may help decrease some of the negative feelings since employees will see that the company is trying to be fair and compassionate to its employees. Another step FedEx could take to ease the blow is to offer outplacement services for those affected by the layoff. If employees feel they are still important to the company, they will be less likely to leave on negative terms (Mondy, 2012).

Discussion Question 2 In order to prevent further unionization among employees, FedEx must continue to prove it is committed to the corporate philosophy. FedEx can achieve this by continuing to offer competitive compensation and benefits packages, as well as continuing the many incentive and recognition programs that are in place. Further, FedEx should remain committed to offering superior training and opportunities for further development of its employees. As in any business, communication is the key. Management should remain open with employees by keeping them apprised of happenings within the company, as well as listening to employee concerns, ideas, etc. Employees are less likely to seek unionization if they feel they are respected and cared for by the company. Most unionization efforts stem from a lack of concern shown by management toward employees. By showing the employees that they are important, unionization may be avoided (Anthony et al., 2010).
Discussion Question 3 Employing a large group of part-time employees presents some challenges. One of the main challenges is that these many of these part-time employees are college students. This means that they will likely move on to other companies after completing their education, thereby creating the need to train new employees at FedEx. Training, recruiting, and other hiring costs can be extremely time consuming and costly. Another challenge related to FedEx, is that they offer benefits to their part-time employees. This is not required for part-time workers, and can be costly for the company. Also, with so many part time workers, the number of employees is close to double what it would be if there were more full time workers. The large number of employees itself can be a challenge to handle.
As for overcoming these challenges, FedEx may consider transitioning more of the part time positions to full time positions. Using current employees to provide on-the-job training can help reduce training costs and downtime. Using the college recruitment offices to find new employees may also help reduce costs of recruitment. Offering benefits to part time employees may cost the company some profit, however, it can also be viewed as a competitive advantage in employee recruitment and retention.
In conclusion, FedEx is a successful company for many reasons. The company fills a market need and serves its customers well. Also, FedEx believes in putting its employees first and foremost in its strategic decisions. Even though tough decisions have to be made sometimes, FedEx tries very hard to do all it can to keep its employees happy and productive.

References
Anthony W P Kacmar K M Perrewe P L 2010 Human resource management: A strategic approachAnthony, W. P., Kacmar, K. M., & Perrewe, P. L. (2010). Human resource management: A strategic approach (6th ed.). Mason, OH: Cengage.
Mondy R W 2012 Human resource managementMondy, R. W. (2012). Human resource management (12th ed.). Upper Saddle River, NJ: Prentice Hall.
The Holy Bible. New International Version.…...

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