FedEx Corporation Case Study The FedEx Corporation, formerly known as Federal Express, was founded in 1973 by Fredrick W. Smith. The company consists of different branches involving air transport, small package, document delivery, and overnight transfers. FedEx prides itself in the understanding of their customers and employees, and strive to have answers to the following questions: (1) What is expected of me, and what do you want me to do; (2) What is in it for me; (3) Where do I go to resolve a problem (Anthony, Kacmar, & Perrewe, 2010, p.599). In order for the company to continue to have a satisfied workforce, the following must be addressed: (1) how technology and layoffs could affect the companies organization culture and what steps can be taken to minimize the negative effects; (2) how can FedEx improve labor relations; (3) the challenge of employing a large group of part-time employees (Anthony, et al., 2010, p. 599).
How Technology and Layoffs Could Affect the FedEx Culture FedEx Express operates on a philosophy of “People-Service-Profit”, which places the people first strategically (Anthony, et al., 2010, p. 595). The company understands the important of customer service, customer satisfaction, and positive employee experience. In the past the company has been cited for its no-layoff policy, but recently due to new technology efforts the company has announced it will shrink its current IT division by 95% (Anthony, et al., 2010, p. 599). This type of layoff situation could cause a great deal of issues for the company. Layoffs can result in a decreased overall morale for the company as a whole, and also decrease production levels. The previous loyalty the company witnessed from its workers could decrease and begin to look for work elsewhere to ensure a stable workplace. It is important for FedEx to be honest with their workers upfront. “Lying lips are an abomination to the Lord, but those who act faithfully are his delight” (Proverbs 12:22). There must be a clearly communication understanding to the employees, and ensure that all layoffs are considered fair treatment. The next important step to reconcile negative impacts is to offer compensation benefits for those who are being laid off. This will not only help the employee until they are able to find other employment, but it will also offer a positive reinforcement for the company. In efforts to stop future layoffs, FedEx can reduce hours worked, eliminate open positions, and not fill spots left vacant by retirements, promotions or workers leaving the company (Thompson, 2001, p. C1).
How Can FedEx Improve Labor Relations
FedEx management believes the company’s most important component is the employees and their commitment and dedication to the company (Anthony, et al., 2010, p. 593). From management perspective, management seeks for the betterment of the company. In order to keep the union out of the company, FedEx must focus on employee satisfaction. When employees are satisfied the need for unionization is low. If FedEx wants to remain a union-free shop, it must develop and maintain policies to balance out the needs of the company and the fair profit with legitimate needs of the workers (Anthony, et al., 2010, p. 518). In order to understand employees, FedEx should conduct employee surveys to ensure feedback reflects what the company offers. Once FedEx has received the feedback from the surveys, it is important for the company to make the effort to change things the employees dislike, within reason. Communication is the key to success with companies that employee several hundred thousand workers. Communication can be improved by listening to employees, and providing an open ear to listen to problems and issues that may arise with employees. Personnel and human resources have ensured that the company maintains highly motivated, productive, and satisfied workforce by providing extensive training, technology-tracking capabilities, safety procedures,