Analysis of Human Resource Management at FedEx Corporation

This report provides an analysis of the Human Resource Management (HRM) practices at FedEx Corporation. It highlights FedEx's commitment to its employees and how the company's HRM strategies contribute to employee loyalty and retention. The report discusses the People-Service-Profit (PSP) system, Survey-Feedback-Action program, and Leadership Evaluation and Awareness Process (LEAP) as key components of FedEx's successful HRM approach. It emphasizes the importance of training, open communication, and employee recognition in fostering a positive work environment. The report also explores how these practices contribute to FedEx's competitive advantage by ensuring employee dedication and high-quality service, ultimately leading to customer satisfaction and business success. The report references various academic sources to support its analysis, demonstrating the impact of effective HRM on organizational outcomes.

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Human Resource Management
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The various Human Resource Management tools are the drivers of employee
performance and organizational goal achievement in this modern era. The HRM tools render
the work environment friendly for the employee and makes sure that everyone of them is
taken care of without any kind of inequality in practice (Indermun 2014). For an organization
to achieve excellence, it is essential for the company to keep their employees happy so that
they work to the best of their capabilities to achieve the goals and targets of the organization
(Men 2014). It is a fact that the companies with the most employee friendly HRM policies
certainly have the best of the employees and low resignation rates.
FedEx or the Federal Express Corporation is regarded as one of the companies with
the best HRM practice. It is stated that the company has the most loyal employees and all of
them are so happy with their work and the company that they hardly ever wish to leave the
company even if offered better pay. The organization was started in the year 1971 by
Frederick W. Smith (About FedEx 2018). It was initially started as a company that used to
deliver documents overnight to people in form of shipments. The delivery service since then
has become so popular that it is one of the leading shipment and courier services in the entire
world. It has been said that the employees were so supportive to the organization in the initial
days that they were ready to swipe their own credit cards to buy fuel and deliver the
shipments to the clients. The commitment levels of the employees were so huge that even
when they did not receive salary on time, they worked dedicatedly for the company
FedEx has an amazing People-Service-Profit system in their work process. The PSP
system actually refers to the company’s policy that states that if the organization took good
care of its employees then the employees would take care of the customers and this in return
will lead to more orders and a substantial rise in the profits (Shi 2015). Such programs by the
HRM of the company has made it possible for the organization to make sure that each and
every individual related to the company is happy and does their best in serving the customers.

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The Survey-Feedback-Action program that the company uses is very efficient and it
has been in use from the very early days of the organization. The program is the reward and
recognition program for employee appraisal on a yearly basis. The management sends out
online survey forms and based in the survey the rewards and appraisals are given out to the
employees. This is done in a timely manner and hence the employees look forward to the
appraisal time. Every year in the month of April thus entire process takes place. The fact that
it is completely based on performance and it analyzes all the deficits that the organization has
in its internal and external environment makes it more a worthy process (Mishra 2015). The
company has a program known as Leadership Evaluation and Awareness Process (LEAP)
which is a promotional chance for the cadre employees to move up to the managerial level.
The organization has an open door policy for its employees and hence the
communication inside the organization is very good. The entire employee base is well aware
of the changes that are planned in an organization and they are part of all the programs that
are being conducted in the company. As a part of the awards for the employees who perform
exceedingly well, the organization as awards such as the Golden Falcon and the Bravo Zulu
awards for such employees (Smith 2014). Such awards enormously encourage and motivate
the employees to work hard and reach up to the front in order to get the award.
The various policies that are functional in the HR department of the organization has
made it one of the most employee friendly organizations in the global sphere. Each of the
recruited employees is trained under the leaders of the organization. This is done so that they
can deliver the duties which they will be assigned. The complete guidance and on-Job
training adds to the experience of the employee and actually makes the person aware of the
job responsibilities and enables him to perform better (Keep 2014). Such policies and HRM
tools are the ones which make the employee to be a part of the organization and hence their
dedication level takes a leap. The employee retention also increases because every employee

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is dedicated to the job at hand and hence there remains no reason for the organization to
terminate an employee.
HRM tools add to the competitive advantage as the employees who join a company
like the FedEx are less likely to leave the organization in the near future and opt for any other
organization. The employees are happy and they get all the aids and perks that an employee
deserves from the employer. The employees have become so loyal to the employer that they
wish to work in the interest of the company rather than their own interest. The competitive
advantage lies in the fact that as FedEx keeps its employees content and happy, the
employees in return provide best of the services to the customers whereas others in the same
industry can be into negligence towards the job because their employees do not keep them
satisfied. The level of trust between the company and the employees is so high that they are
inseparable and any external force does not affect an employee of the FedEx in engaging into
any such activity which is against the organization. Right from recruitment to retention of the
employees, the entire HRM process is inclined towards the employees and their happiness in
the company and it essentially increases the employee loyalty.

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Reference
About FedEx. (2018). History - About FedEx. [online] Available at:
https://about.van.fedex.com/our-story/history-timeline/history/ [Accessed 10 Mar. 2018].
Indermun, V., 2014. Importance of Human Resource Management Practices and the Impact
Companies Face in Relation to Competitive Challenges. Singaporean Journal of Business,
Economics and Management Studies, 51(1448), pp.1-11.
Keep, E., 2014. Corporate training strategies: the vital component?. New Perspectives,
pp.109-125.
Men, L.R., 2014. Strategic internal communication: Transformational leadership,
communication channels, and employee satisfaction. Management Communication
Quarterly, 28(2), pp.264-284.
Mishra, S., 2015. Effective communication for corporate sector: A need for a paradigm
shift. Indian Journal of Health and Wellbeing, 6(7), p.749.
Shi, C.A.O., 2015. The Implications of FedEx to Human Resource Management of Logistics
Enterprises in Beijing. International Business and Management, 11(3), pp.17-23.
Smith, E.B., 2014. The Effect of Critical Optimism on Transformational
Leadership. Leadership & Organizational Management Journal, 2014(1).