NEW and best HR PRACTICES

AT

H.R.M

About the case 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 recent hrm practices employed by the company.

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

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.

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

FedEx Facts:

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.

Commitment of the employees

FedEx has developed several innovative human resource programs over the years. These programs have served as a benchmark for many companies.

FedEx’s ‘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.

Best HRM Practices at the FedEx Corporation:

Survey-Feedback-Action Program or SFA Program at FedEx 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 2002 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.

Leadership Evaluation and Awareness Process’ (LEAP) In 2007, FedEx devised a program known as ‘Leadership

Evaluation and Awareness Process’ (LEAP) to encourage non-managerial cadre employees to move to the managerial level within the company.

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.

Job Change Applicant Tracking System (JCATS) JCATS is an on-line computer job posting system that allows

hourly employees to post for any available job. Recognition and Reward Program FedEx rewards employees for their work with awards such

as the ‘Bravo Zulu’ and the ‘Golden Falcon Award’, ‘Humanitarian Award’.

A few of the recent awards include: FORTUNE “World’s Most Admired

Companies” – 2010 #13, 2009 #7, 2008- #6, 2007- #7, 2006- #4

FORTUNE “100 Best Companies to Work for in America” – 2010 #12, 2009 #53, 2008- #97, 2006- #64

FORTUNE “America’s Most Admired Companies” – 2008- #7, 2007- #7, 2006- #4

Business Week “50 Best Performers” – 2011 “Best Company to Work for in Latin America”

– 2008 FORTUNE “Most Admired for HR” – 2009- #1

Recognition for FedEx Corporation

FedEx is an example of an organization

that has created an effective HR strategy

that supports productivity and

profitability.