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UNITED PARCEL SERVICE HARVARD BUSINESS SCHOOL Masca Indra Renni Rengganis Yessie Fransiska
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United parcel service

Nov 14, 2014

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Business

Renni Rengganis

New plan for hiring outside talent Information Services
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Page 1: United parcel service

UNITED PARCEL SERVICEHARVARD BUSINESS SCHOOL

Masca IndraRenni RengganisYessie Fransiska

Page 2: United parcel service

OUTLINE

Case Background

Case Problem Definition

Company Profile

Problem solving and analysis

Conclusion

Page 3: United parcel service

Case Background

Having an enormous package delivery network, offers UPS an opportunity to

create even greater value for their customers by using the network to manage

the integration of information, transportation, inventory, warehousing,

material handling, packaging and even the security of packages.

On an annual basis, UPS delivers 4 billion packages and documents

through a fleet of approximately 100,000 package cars, vans, tractors,

motorcycles and 233 UPS-owned aircraft

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Case Problem Definition

1. New plan for hiring outside talent Information Services

2. Different opinions about hiring new talent for Information Services

3. Facing the competitors and new technology challenges

4. Face the competitors

USPS : they compete in the delivery of low weight packages in short distance

and expedited service.

FedEx : the using of hi tech

5. Face the new generation of workers

6. Information service department’s problems :

- poor skill

- haven’t specialist the “new” outsiders can not match with

UPS culture

Page 5: United parcel service

Company Profile• Started in 1907 by 19 year-old Jim Casey then called American

Messenger Company.– Became Unite Parcel Service of America in 1929 and

began shipping packages on commercial airliners.

• Several Transformations:• From messages to package delivery• To international air transport company• Finally, in the 1990s, to a logistics company

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The UPS Road Map

Year Description

1907 Jim Casey founds a six-bicycle messenger service called American Messenger Company in Seattle, Washington

1913 American Messenger merges with Motorcycle Delivery Company, creating Merchants Parcel Delivery, which has a "fleet" of a few motorcycles and one Model T Ford.

1915 The company begins painting its delivery vehicles brown.

1916 The company drivers join the International Brotherhood of Teamsters.

1918 Three Seattle department stores hire the firm to deliver merchandise to their customers.

1919 After buying a delivery firm in Oakland, California, the company changes its name to United Parcel Service (UPS).

1930 Operations are expanded to New York City, which also becomes the location of the company's new headquarters.

1953 UPS begins a steady expansion of its common-carrier parcel business, through which it picks up parcels from anyone and takes them to anyone else; UPS Air is launched as a two-day air express service connecting major cities on the East and West Coasts.

Page 7: United parcel service

The UPS Road Map

Year Description

1962 Casey ends his long reign as CEO.

1975 UPS becomes the first package delivery firm to serve every address in the continental United States; the first international expansion begins with the launch of delivery service in Ontario, Canada; the company moves its headquarters to Connecticut.

1976 UPS enters the European market through the start-up of a delivery service in West Germany.

1982 UPS Next Day Air, an overnight air delivery service, debuts.

1985 The company begins offering international air service between the United States and Europe.

1991 Headquarters are relocated to Atlanta.

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Company ProfileKnown in the industry as "Big Brown,“ UPS is one of the biggest Shipping Company In US

UPS relocated its corporate headquarters from Greenwich, Connecticut, to Atlanta, Georgia

By 1992, the corporation was investing more money in computers than in ubiquitous brown vehicles. These internal changes reflected the company's traditional focus on super-efficiency as well as its newfound emphasis on customer satisfaction.

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We serve the evolving distribution, logistics, and commerce needs of our customer worldwide, offering excellence and value in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long-term competitive return to our shareowners.

– UPS Mission Statement

UPS VALUE

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• “Consensus building”• Focused on efficiency and execution• Continuous improvement• Strong values: service excellence, employee

ownership, commitment to stability• Low turnover, loyal workforce

CULTURE

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Private postal companies– Federal Express

Large government-supported agencies– USPS– Deutsche Post

COMPETITION

HEAD-TO-HEAD COMPETITION FedEx UPS

Ground Vehicles 50,000 88,000

Aircraft 625 583

Employees 216,500 360,000

Packages Shipped Daily 5.4 million 13 million

Assets $15.4 billion $28.9 billion

Revenues $22.5 billion $33.4 billion

Net Income $830 million $2.9 billion

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Problem solving and conclusion

Page 13: United parcel service

Problem solving

For the problem are faced by UPS, they are late to follow the technology because lack of skill in

Information Service Department.

To be the first company in Logistic Industry, UPS have

to concern about this problem, they should place

the person with high capability in Information

Service Department.

The choice for hiring can be internal or external.

Page 14: United parcel service

UPS

internal external

Page 15: United parcel service

INTERNAL RECRUITMENT EXTERNAL RECRUITMENT

ADVANTAGES ADVANTAGES1. The cost is relatively cheap, because it

does not need the selection process as external recruitment.

1. Have ideas and new approaches

2. Organization knows that workers have the ability to chair empty.

2. Work started with a clean sheet and pay attention to the specification of experience

3. Workers have a high motivation because knowing the possibility of increasing

3. The level of knowledge and expertise not available within the company that now.

4. Clear career development

5. Workers have a good understanding of policies, procedures, rules and habit of the organization.

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INTERNAL RECRUITMENT EXTERNAL RECRUITMENT

DISADVANTAGES DISADVANTAGES1. Not always provide a new perspective 1. Low employee morale and commitment

2. Promoted workers are familiar with subordinates making it difficult to run the authority and power.

2. A relatively long period of adjustment

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UPS VALUES :• Function as partner• Consolidated parcel delivery is main business• Promote from within• Considerate and understanding of our people• Uniform service• Maintain dependable delivery service• Insist upon integrity in our people• Economic stability

UPS Core CompetenciesAchievement orientation

Organizational commitment

Teamwork and cooperation

Developing others Relationship building (networking)

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CONCLUSION

• Based on the value that company have, especially about employee which is said that “Promote from within”, we decided to make Internal Recruitment for IT Service.

• IT Service need company generic competency, the skill can be trained to the internal sources.

• The UPS has already run well because the employee, supervisor, manager, and director have a solid teamwork, the newcomers have to work hard to adjust the culture. It’s better to choose Internal Recruitment as a choice.

Page 19: United parcel service

thaNK yOu…