Problem Identification of UPS - Case Study Example

?Introduction This paper seeks to identify and critically examine the issues in the case study of UPS and to recommend solutions for those issues. The paper is based on a careful analysis of the organization in terms of its mission, key products, and processes including the current state of the organization as it relates to the problem. The paper will also analyse the key stakeholders as well as the reasons why there is the pressing need for change with regards to the career system within the organisation. The last part of the paper will sum up the main points discussed and recommendations will be given with regards to the measures that can be taken in order to effectively deal with the problems discussed. Description of the organization and problem identification United Parcel Service was founded in 1907 in USA and it specifically dealt with delivering an assortment of parcels and goods sent through its office to different clients. It started from humble beginnings where all packages were delivered by foot, street bicycle as well as street car. However, the company re-engineered itself to become a state-of-the-art delivery service when it introduced its first delivery car, a Model T Ford in 1913. The organization witnessed positive developments and went through different stages until 1980 which saw the passage of the passage of Motor Career Act which deregulated the whole trucking industry. The organization even introduced air services as it sought to diversify its activities to counter competition which was intensifying as a result of the deregulation exercise of this industry. However, increased competition as a result of deregulation compelled the organization to allocate large amounts of capital to modernize its data processing department. The deregulation of the freight industry also posed immense challenges to UPS given that the emerging entrants utilized low cost services such as the Federal Express Corporation. As such, it has been observed that data processing operated with poor equipment and the service provided was poor given that it fell beyond the competition that existed in technological and programming capabilities. Up until 1981, the department of information faced unprecedented challenges of technologically more advanced competition from Federal Express and RPS. It was realized that in order for UPS to remain the dominant carrier package delivery service, it had to join the competitors in the age of computer technology. Whilst UPS had the most extensive ground network, it had apparently been left in core areas such as technological innovations which included scanning, radio-dispatched pickups, package tracking, and data-acquisition devices. Despite the mission which was meant to “to provide management with the information it needs to meet the company’s goals in a responsive manner and at a reasonable cost,” the company fell short of achieving this goal given that it had limited numbers of employees with the requisite skills to execute the information requirements of the company. The main problem facing UPS is that it has to implement changes in order to meet the marketing and technological challenges that have been compounded by the deregulation exercise in this industry. It is facing a dilemma particularly in making decisions to hire or recruit talent from within the company or hire experienced people in information systems from outside. The problem with locating talent within the company is that most of the employees have experience in hub and package centers and have less experience in the new dispensation of information and communication technology. On the other hand, the problem related to hiring people from outside is related to re-orienting them to fit in the culture of the organization, training them, matching their expectations and helping them grow to meet the expectations of the organization. Stakeholder analysis The main players in this particular case are the employees who are responsible for executing all the tasks within the organization. Any change to the organization often impacts directly or indirectly on the employees given that their operations will be affected. As such, there is likely to be some form of resistance to this initiative given that the employees are used to their usual way of operating which can negatively impact on the overall performance of the organization. Employees in this particular case are concerned with their career development within standards set by the organization such as continuous development in their operations. The employees are also concerned about their welfare. The other people in this case are the customers who expect to get satisfactory services from the organization. Factors influencing the need for change During the current period, it can be observed that different organizations operate in a dynamic environment which is characterised by constant changes. In order to survive in the long run, it is imperative for the organisation to implement some changes given that change is inevitable and this can enable the organization to keep pace with the developments taking place in the environment. Change is usually necessitated by both internal and external forces and the internal factors include human resources problems such as low productivity while the external factors include global and national dynamics that impact on the organisation such as technological changes, market, political, social and economic changes (Schultz et el 205). In this particular case of UPS, the major factor influencing change is related to technological aspects where the organization has to embrace new information and communication technology in order to waiver the forces of competition from other competitors in the industry such as Federal Express and RPS. Business is also expanding hence there is need to improve the information processing system of the organization in order to operate viably. Career system at UPS To a greater extent, it can be noted that the career system at UPS is autonomous in that it empowers the employees to make decisions in their operations. Robbins (193) posits to the effect that the overriding factor for some people in career decisions is to maintain their independence and freedom. The organization promotes internal development of employees in different aspects of their operations and they have the autonomy to make decisions with regard to the problems they may encounter in their operations. The culture of the organization is based on equality and it plays a pivotal role in enhancing career development among the employees. Relevance of the career system to the new areas of activity The career system of UPS is mainly centred on hub and package areas where the employees are developed to fit the expectations of the organization. However, this system does not support the new initiative to improve the marketing and technological challenges related to recruitment of more talent in this particular area. According to Robbins (87), the technical or functional competence is a bit challenging in that someone qualified in a particular field might find the job outside the area of expertise a challenge to his feelings of competence yet inconsistent with her basic occupational self concept. The new area of activity in this case requires people who are technically competent in the area of information systems in order to execute their tasks effectively. Hiring from outside According to Carell et al ( 65), “the golden rule in the recruitment exercise is that from time to time, the organisation should always strive to attract job candidates with the required competencies and traits for the task to be performed.” Thus, the potential employees hired from outside have to possess a positive attitude towards both work to be performed in the organization and their perception whether a fit between the organization and them can be established. It is important to widen the net when recruiting employees so as to be better positioned to recruit the best talent. In most cases, winning companies often headhunt for talent and this involves exploring the external environment in order to get the highly skilled workers who can meaningfully contribute to the performance of the organization as a whole. Pros and cons of opening the recruitment system In as much as the need to implement the envisage changes in the operations of UPS are concerned, it is imperative for the organization to recruit from outside the organisation in order to fill the vacant positions with skilled workers. The main advantage for this method is that there are likely chances that a bigger number of applicants are likely to be recruited than could be normally recruited internally. The other advantage is that outside applicants are capable of bringing in a wealth of knowledge and new ideas and they may have contacts which the internal applicants may not have. Such knowledge can significantly contribute to the operations of the organization if it is carefully implemented within the day to day operations of the organization. During the contemporary period, it can be seen that skilled employees are widely sought after by many companies that are concerned about their development as these are often in short supply and they can significantly contribute to the overall performance of the organisation as a whole. However, the only disadvantage is that it may be challenging to orient the new employees to fit into the culture of the organization since they would be coming from a different background. Management of the recruitment system In order to manage opening up the recruiting system with minimum damage to the firm’s culture, it is imperative for the responsible leaders in the organization to reorient the new recruits so that they familiarise with the culture of the organization. The standard expectations of the employees ought to be clearly outlined such that they can be shared by the members of the organization. If all the members share the same understanding of the goals and objectives of the organisation, there are fewer chances of conflicts that can be witnessed within the company and this can positively contribute to the performance of the organisation. Training and development are the other important aspects that can be implemented when dealing with the issue of opening up the recruitment system. If the employees are given adequate training, they are better positioned to know what is expected of them in their day to day operations within the organization. The members are likely to acclimatize to the culture of the organisation if they are given adequate training in execution of their duties on a daily basis. It is also important to match the expectations of the employees with those of the organization so as to try to create a fine balance between satisfaction of the needs of the two. If the employees are helped to grow within the organization, they will tend to develop a positive sense of identity to it which helps them to fit in its culture. To a greater extent, it will be possible to integrate non-entry level and non-ground operations staff into the UPS system. A flexible culture already existing in the organization can be implemented where equality is promoted. Though these groups of employees may occupy different positions, they are likely to respect each other if equality is promoted among them. Recommendations about practical steps that can be implemented by UPS to manage integration In view of the problems highlighted above that are related to staffing of employees in the information services department at UPS, the following recommendations have been suggested: It is imperative to recruit from outside the company since there are likely chances that many skilled people can be attracted to the vacant positions available within the organization. These can bring in new ideas and knowledge which can contribute to the organisation if they are integrated into the existing body of knowledge in the company. Whether for the benefit of the company or otherwise, change is one aspect which is often treated with suspicion by the employees. In order to integrate it in the operations of the company, it is important to effectively manage conflict. Kleynhans (2007) posits to the effect that conflict in an organization is counterproductive hence UPS must put measures that are meant to decisively deal with conflicts that may emerge during the course of implementing changes to the organization. Motivating the workers is one viable option of managing integration of the envisage system. It is widely believed that a motivated employee is productive compared to the one who is demoralised. It is also important to implement a culture excellence approach which gives priority to shared values in an organisation in order to enhance performance of the employees in face of the ever changing environment. Brand (98), posits to the effect that innovative and supportive culture will encourage better performance of the employees. Thus, performance can be effective where organisational culture can integrate with individual’s values, perceptions and capabilities in the workplace. Conclusion Over and above, it has been noted that UPS is facing problems that are related to implementing changes in order to meet the marketing and technological challenges that have been compounded by the deregulation exercise in this industry. This organisation is mainly facing a dilemma particularly in making decisions to hire or recruit talent from within the company or hire experienced people in information systems from outside. In view of the problems highlighted above, it has been suggested that recruiting from outside is important for the organisation as it can stand better chances of attracting skilled and talented employees. Works cited Amos, Lee et al. Human Resources Management. 3rd Edition. CT: JUTA, 2008. Print. Brand, Anold. Knowledge management and innovation at 3M, Journal of knowledge management, Vol. 2 No.1, 1998. Carrell, Richard et al Human Resources Management: Global Strategies for managing a diverse workforce, 5th Edition, NY: Prentice Hall, 1995. Kleynhans Ray. Management: fresh perspectives, CT: Pearson Education, 2007. Print. Grobler Pieter. Human Resource Management. 3rd Edition. London: Thompson Learning, 2006. Print Robins Steven. Organisational Behaviour, NJ: Pearson Education, 2001. Print. Schultz et al Organisational behaviour. CT: Van Schaik Publishers, 2003. Print. Read More