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HR PRACTICES AT Presented by : Piyush Aggarwal (MBA 2B)
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Hr policies

Apr 11, 2017

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Page 1: Hr policies

HR PRACTICES AT

Presented by : Piyush Aggarwal (MBA 2B)

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FedEx Facts1971,Frederick W. Smith realized the need for an

airfreight system which could deliver documents overnight.

Company was incorporated as 'Federal Express Corporation' in June 1971 at Little Rock, US, with an initial investment of $84 mn.

In April 1973, FedEx commenced full-fledged operations across 25 cities in the US.

FedEx had suffered losses during the initial years of operations, but by 1976 it had started generating profits.

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FedEx Facts Today's FedEx is led by FedEx Corporation,

which provides strategic direction to its operating companies that compete collectively under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Freight,

FedEx Office, FedEx Custom Critical, FedEx Trade Networks and FedEx Services.

Independently, each company offers flexible, specialized services representing the best supply chain, transportation, business and related information services.

FY16 Revenue: $50.4 billionTeam Members: More than 400,000Countries and Territories Served: More than 220

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FedEx's HR Practices

People-service-profit (PSP) philosophy Recruitment and Selection Training and Development Survey Feedback Action program Employee Communication Program Job Change Application Tracking System Leadership Evaluation and Awareness

Process Succession Planning Executive Education Recognition and Reward Program

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People-service-profit (PSP) philosophy In 1973, Founder and CEO, Smith had

developed and implemented FedEx’s ‘People-Service-Profit’ (PSP) philosophy.

This philosophy was based on the fact that if FedEx took proper care of its employees, they would provide efficient service to the customers. This in turn would benefit the company by generating more profits.

In line with PSP philosophy FedEx developed several employee friendly policies regarding recruitment and selection, training and development, performance appraisal and corporate communication.

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Recruitment and Selection

Application and applicant screening by developing an online form .

Applications form from online data was matched with company’s job eligibility norms recorded in PRISM and eligible candidates were identified ,

Next step : aptitude test in basic math, English, and reasoning , then

Interview , Fitness test and background test , Finally offered employment at FedEx. Estimates revealed FedEx hired 25,000

employees every year.

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Training and Development FedEx strongly believes in training because it

improves an employee’s performance and productivity, which in turn influences the service quality, retention efforts, and profitability.

Digital Assessment Management system :The system finds new training guides, categorizes, and organizes them. Helped the company stay updated on recent training modules, in the integration of graphic image updates. It has improved service quality and productivity of training materials. The company uses consultancy services to establish training needs, sometimes to conduct the actual training and to evaluate the effectiveness of the training by conducting post-tests.

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Training and Development Group discussion training is another training

method employed by FedEx because it enables participants to raise their concerns, as well as save on time that would be used for one-on-one training.

FedEx has established online training programs to educate its employees about harassment at work and the possible consequences of engaging in the behavior.

FedEx values people and their diversity, and it has won numerous awards for treating minorities in the organization with respect. The company trains its employees how to relate with each other without discrimination, and it trains minorities how to fit in the organization.

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Survey Feedback Action program

The SFA program (a key employee relations and satisfaction program) helped management take decisions regarding promotions.

From its inception, the SFA was administered manually, but that changed in 1992 with the introduction of online survey system in the US and other automations.

Each April, every employee is asked to participate in the on-line survey. After the results are gathered, managers hold feedback sessions with their employees to discuss the survey findings and identify problems within and outside of their department.

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Employee Communication Program The employee communication programs

implemented by FedEx included the SFA program, Guaranteed Fair Treatment Procedure and Open Door Policy.

FedEx also devised a mechanism to address and resolve employee grievances.

This was apart from employing a formal communication system to inform employees about the major events taking place in the company.

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Job Change Application Tracking System

JCATS is an on-line computer job posting system that allows hourly employees to post for any available job.

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Leadership Evaluation and Awareness Process In 1988, FedEx devised a program

known as ‘Leadership Evaluation and Awareness Process’ (LEAP).

The process was introduced to encourage non-managerial cadre employees to move to the managerial level within the company.

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Succession Planning Executive Education  FedEx had also devised a succession planning

mechanism - Succession Planning Executive Education - to groom its senior management employees for top management positions.

FedEx also conducted internal employee training programs, which were designed along the lines of executive education programs offered by management institutes.

FedEx was considered one of the most employee-friendly companies in the world because its innovative HR initiatives .

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Recognition and Reward Program FedEx rewards employees for their work

with awards such as the ‘Bravo Zulu’ and the ‘Golden Falcon Award’.

FedEx is an example of an organization that has created an effective HR strategy that supports productivity and profitability.

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Complimenting FedEx for its HR policies, Work Force magazine wrote :

"FedEx is an example of an organization that has created an effective HR strategy that supports productivity and profitability. The corporation's philosophy is that employees should be doing the kind of work they want to do."

Work force today’s compliment

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Commitment of the employees

When the company was going through severe financial difficulties, the employees were prepared 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 didn't receive their salary on time, they continued working with FedEx.

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Employee Retention Employee retention was a significant aspect of FedEx's HR policy."In our competitive marketplace, employee loyalty tends to be low. If employees don't like their jobs, they simply walk across the street and find a new one. It's important to keep your people happy and to create an environment where they want to stay."- Mc Mahan

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The Benefits ReapedFedEx's employee-friendly policies resulted in

very low turnover rate. In 2000, the turnover rate was estimated to be below 6%, while the industry average was 20%.

It also enhanced the reputation of the company as an employee-friendly, service-oriented organization.

Over the years, FedEx developed several innovative HR and hence achieving maximum employee satisfaction.

This served as a benchmark for many organizations, particularly in the service industry.

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ConclusionOver the past 30 years FedEx has been a company which has changed the way we view express transportation and delivery services. Furthermore, they have changed the landscape of Human Resource Management practices within companies, setting a precedence for other companies in different industries. FedEx has shown that a company is not only about technology, managers and profit making. It places their employees on pole position, as they are the ones that keep the company going and serve the customers.

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