BEST HR PRACTICES AT

Submitted to: Mrs. Vilasini PatkarMMS III HR

Puja Govekar P 9

Sukhada Kulkarni P 17

Devika Shinde P 34

Abstract:The case examines FedEx Corporation's various

innovative HR practices, which then became one of the most employee-friendly companies in the world.

Case gives an overview of the best practices employed by the company in the: Recruitment, Selection, Training and development,

performance appraisal system and employee retention strategies

Finally, the case reviews the benefits reaped by the company because of its employee friendly HR practices.

FedEx Facts

1971,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.

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.

Fedex's HR Practices

• People-service-profit (PSP) philosophy 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

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."

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.

Growth Opportunities

Promotion of employees for

higher cadres

Unique program called “LEAP” -

Leadership Evaluation &

Awareness Process for providing

opportunities to employees from

non-managerial cadre to move to

managerial level within the

organization.

Employee Communication and Employee Communication and

PerformancePerformance AppraisalAppraisal

Two – way communication

Mechanism for resolving

employee grievances

Employee communication

programs implemented by

FedEx included the SFA

program, Guaranteed Fair

Treatment Procedure (GFTP)

and Open Door Policy (ODP).

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

The Benefits Reaped

FedEx'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.