Employee Performance Appraisal at FedEx - Case Study Example

Employee Performance Appraisal at FedEx Introduction FedEx Corporation is a global multinational that specializes in the logistics industry across the world. The company has diversified its operations across the world and is currently ranked as one of the leading logistics service providers in the world. With its headquarters in the United States, the corporation has several divisions across the world and employs thousands of workers. FedEx Corp. was formed in 1996 following the acquisition of Caliber Systems Inc by FedEx Express (Argenti 2009). The objective of the corporation has always been the need o build a strong ground across the world on the express delivery services though its efficient logistics services. The operations of the organizations are segmented into the various divisions of Ground, Express and Freight. The original company FedEx Express was however formed in 1971 by Fredrick Smith after practicing the idea he had nurtured since his undergraduate days at Yale in the 1960s (Bennett 2004). Across the decades, the company has actually revolutionized the whole idea of logistics through its efficient services that have become almost indispensable across the world. FedEx Human Resource Issues The corporation seeks to produce efficient and superior financial returns for its users through the provision of value-added logistics services through much focused avenues and services that have actually become a brand in the industry. The core values of the corporation are Service people, Innovation, Integrity, Responsibility and Loyalty. The corporation has over 200, 000 employees scattered across the world where its operations are realized (Birla 2005). FedEx was actually one of the most notable organizations that established an effective Human Resources policy which regarded employees as the most important asset the organization possesses and should therefore be accorded much concern as is necessary. The profitability of the company is therefore directly linked to the employees of the corporation. In 2003, Fortune magazine placed FedEx Corporation amongst the 100 best multinational companies to work for in the United States and beyond. In that regard, it certainly confirms the fact that the corporation is always at the forefront in its concern for the affairs of the employees so that its services are always the best courtesy of the employee motivation realised from the employees. Human Resource Challenges at FedEx Over the years, FedEx has encountered lots of challenges with regards to the management of its human resource pool. Indeed, managing over 200,000 employees scattered across the world with different cultural backgrounds is never an easy undertaking. It is on that regard that the corporation has always been at the forefront in seeking efficient human resource management strategies and putting them into place. One of the challenges often realized is the communication between the senior and junior employees at the corporation. It must be remembered that communication is s very important ingredient towards success of an organization. FedEx has developed a very efficient two-way communication process that enhances the interaction and communication between the employees and the management of the corporation. The employees are therefore in a position to freely express their views and opinions regarding the performance of the management. The company has also instituted a proper mechanism to ensure that the issues raised by the employees in relation to the management of the organization are effectively resolved. The company has instituted a program known as Survey, Feedback and Action (SAF) which is intended to assist in the process of evaluating and addressing the various issues affecting the employees in the corporation. With over 200, 000 employees across the world, such a strategy become very efficient in seeking to realize whether the employee concerns in the different environments are addressed effectively in the world. Another issue at the corporation concerns the management of employee’s grievances in an effective manner. The SAF program enables the employees to air their grievances and advance their views on the performance of any level of management in the organization across the world. It is encouraged that issues are reported within seven days of occurrence and are then resolved through an effective strategy. Normally the concerned managers are given days in order to resolve the issues addressed. Moreover the open door policy in the organization encourages the employees to even advance their views regarding such aspects as hiring, vocation, benefits, sonority etc. the performance appraisal technique in the organization is usually based on the given nature of work conducted by the particular employees. The challenge of the organization over the years had always been the need to run a proper performance appraisal strategy that could effectively address the needs of the organization. The method presently in use focuses on three parameters which are normally compared against the performance of the employees. These metrics include People, Service and Profits. In the people metric, the leadership abilities of the employees are assessed in order to determine the most effective environment that should be provided in order to enhance the performance in the organization. The assessment of employee’s performance in the organization in order to reward them has always been another great challenge for the organization. The management uses the SAF program in order to assess the performance of the managers. The results obtained arte normally analyzed and tabulated in order to arrive at a “companywide leadership score” (CLS). The individual scores of the managers are usually ranked and the appropriate incentives determined for the particular performance levels. The incentives are normally provided in the form of bonuses which are given at the end of the year. In certain instances managers never get their annual bonuses owing to the low number or points earned. In the case of non-managerial employees, different parameters are normally used to assess the performance of the employees in their places of work. Some of these parameters include enthusiasm, customer orientation, technical expertise and team loyalty. The performance of the regular non- managerial employees is normally assessed annually at the nd of the year. The test scores of the employees on the on the overall training are also normally considered as some of the parameters in evaluating the performance of the employees. In addition to the programs in place to enhance performance appraisal in the organization, the management has instituted a policy on promotion that encourages the performance of the employees in the corporation. In the same vein, the recognition of employees who demonstrate exemplary performance is most enhanced in the organization through the various policies. Normally, the management of FedEx uses the pre-tax margin profit as the basic parameter used in arriving at the incentive that is to be paid to the employees in relation to good performance in the organization. As such, the managers and supervisors at the various levels of the management are normally provided with the relevant financial information from time to time. This is done in relation to the different departments of the organization so that the contribution of each and every employee towards the profits of the organization can be thereby determined. In most cases, all the employees of the organization are normally qualified to get the incentives given. The program has certainly proven quite appropriate in the organization as can be evidenced from the spirit of work and performance realized in the organization. The above strategies used by the corporation in addressing the problem of employee performance appraisal are actually very functional and seem to be addressing the performance of the employees in the most effective way. Recommendations Despite the very elaborate plans and strategies that the organization is actually using in shaping the performance appraisal strategies of the organization, several aspects of the whole equation can actually be improved in order to enhance the performance of most of the casual workers who actually make up the majority of the employees in the organization. In any case it seems that the performance appraisal process has normally put much focus on the permanent staff while little is done in terms of the performance of the casual workers who also contribute substantially to the profitability of the corporation. The following are therefore recommended with respect to the performance appraisal of the employees of FedEx. The SAF strategy should be extended to cover even the casual workers of the organization in their respective capacities. The timeframe required for the assessment and evaluation of the performance of the employees in the corporation should actually be reduced from the current one year period to six month period in order to enhance the performance of the employees. The strategies used by the organization are much expensive and normally affect the profitability. Therefore much of the individual performance analysis should be abolished. The evaluation process should not take the much time as presently realized. The time should be reduced. Too much time takes a lot of focus away from other core employee issues. In conclusion, it is realized that the human resource affairs of FedEx Corporation are actually addressed in some of the best and effective ways realized in the corporate world. Given this large number of employees involved across different countries, performance appraisal becomes a very necessary aspects in this regard. The process should therefore be slightly adjusted to suite the imperative needs of time and cost. References Argenti, P. A. (2009). Digital strategies for powerful corporate communications. New York, NY [u.a.: McGraw-Hill. Bennett, M. (2004). Leadership and talent in Asia: how the best employers deliver extraordinary performance. Singapore: John Wiley & Sons (Asia) Pte Ltd. ;. Birla, M. (2005). FedEx delivers: how the world's leading shipping company keeps innovating and outperforming the competition. Hoboken, N.J.: John Wiley & Sons. Read More