Comparison of HRM Between FedEx and DHL what HR strategies are combined with the business’s strategies to support them (SHRM)

Introduction:

In this blog I am writing about FedEx and the next blog is about DHL to compare the two companies regarding their SHRMs.

First, I have written a brief information regarding FedEx mission, vison and goals also, then about its employment strategy and employees benefits furthermore I have focused on the best fit approach by analysing the Vertical fit and Horizontal Fit by SWOT model Armstrong cited (Barney 1995: 49), to understand its environment. Also, by SOWT model I have suggested the opportunities that FedEx can take in account to improve and reinforce its business objectives. And at last I have concluded my point of view.

FedEx Missions, Visions and Goals

Working with FedEx

FedEx aims to employ the right people:

FedEx has 239,000 employees in 2019 and its recruitment strategy viewpoint is permanently to chose talented and flexible people who share their honesty, honour, creativity and respect for teammates and customers. And believes that employees are the assets who can achieve their business goals

• Promotion from Within Policy is designed to support employee career development within the company by giving employees priority in application, consideration and selection for any open positions. This policy aligns with the company’s P-S-P principle.

• Open Door Process provides employees with direct access to management to share input, comments and feedback     for further consideration.
• Guaranteed Fair Treatment Procedure ensures any employee grievances are dealt with fairly and objectively.
• Survey-Feedback-Action gives employees an opportunity to offer feedback on the effectiveness of management.
• APAC e-Learning enables employees to learn in their own time from any location for job enhancement or personal development.
• Tuition Assistance Program financially subsidizes eligible employees in their pursuit of additional higher formal education to enhance career advancement opportunities in FedEx.
• AiM (Advance into Management) Program provides employees with opportunities for development and growth into management positions through a structured process focusing on leadership/ management concepts and skills.

1,500 FedEx employees left the company, why?

Roughly 1,500 FedEx employees in the U.S. have left or will soon leave the company after accepting voluntary buyouts, the Memphis logistics giant reported. FedEx said in its annual

report that about 85 percent of the employees who took the cash buyouts left the company on 31 May 2019.

FedEx said in its annual report that about 85 percent of the employees who took the cash buyouts left the company on May 31, the end of its fiscal year. The remainder will be leaving the company during 2020.

How often do FedEx employees get raises?

When employee starts working for FedEx, after his/her first month she gets a small raise. Employee then gets another one after 3 months and after that employee gets a raise every 6 mounts. And all FedEx facilities get a raise in October. 1 month,3 months,6 months,9 months,1 year, 2 years.

FedEx SWOT Analysis:

Strengths

• Highly skilled workforce through successful training and learning programs. FedEx Corporation is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.

Weakness

• 85 percent of the employees who took the cash buyouts left the company on 31st May 2019, the end of its fiscal year. 

Opportunities

• Balancing its HRM by combining the best practice approach and the best fit approach as well as implementing people management in practice
• Putting in action the Harvard framework model so the line managers will accept more responsibilities and HR has the mission of setting correct policies and how HR activities are developed and implemented to reinforce the business objectives, Beer et al (1984).
• The hard and soft models both must be used to balance so HRM won’t be focused only on the organizations business model.
• Applying Social exchange theory, Motivation theory (Freeman, 1984) and the RBV theory (Barney, 1991).

Threats

• The remaining employees will be leaving the company during 2020.
• FedEx has to recruit new employees which needs time and is costly.

Conclusion:

As I have studied FedEx environment regarding HRM and its SHRM I have learned that only by rewarding, training and employing talented, skilled and flexible people the organizations, or small businesses cannot reduce and mitigate the risks of employees leaving their jobs/roles and using and implementing the right theories and models which fits the organization business type is very important.

References:

Macrotrends (2020) FedEx: number of employees 2006-2020. Available at: https://www.macrotrends.net/stocks/charts/FDX/fedex/number-of-employees (Accessed: 13 April 2020).

Angelo Sorbello (2020) Astrogrowth: FedEx mission statement analysis and vision. Available at: https://www.astrogrowth.com/blog/fedex-mission-statement/  (Accessed: 13 April 2020).

Company overview (2020) FedEx mission and goals. Available at: 

http://investors.fedex.com/company-overview/mission-and-goals/default.aspx (Accessed: 13 April 2020).

FedEx (2020) Working at FedEx: The right people. Available at: http://www.fedex.com/cn_english/careers/working.html(Accessed: 13 April 2020).

Commercial appeal (2018) FedEx discloses employee buyout numbers, nods to Amazon threat in annual filing. Available at: https://eu.commercialappeal.com/story/money/industries/logistics/2019/07/17/fedex-nods-amazon-threat-details-employee-buyout-numbers/1754932001/  (Accessed: 13 April 2020).

Indeed (2018) FedEx Ground. Available at: https://www.indeed.com/cmp/FedEx-Ground/faq/how-often-do-package-handlers-get-raises?quid=1clol1ood52t0b11 (Accessed: 13 April 2020).

Michael Armstrong and Stephen Taylor (1977) Armstrong’s Handbook of Human Resource Management Practice. 15^thedn. London: Kogan Page. 

Michael Armstrong (2008) creating success: How to manage people. 2^nd edn. London: Kogan Page.