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Federal Express - Case Study Example

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Federal Express is a global leader in ground and air courier system since it started operations in 1973. For more than quarter of a century, FedEx has been serving millions of customers around the world with offices in more than 220 countries. But global leadership has not come easily to FedEx…
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FEDERAL EXPRESS Federal Express is a global leader in ground and air courier system since it started operations in 1973. For more than quarter of acentury, FedEx has been serving millions of customers around the world with offices in more than 220 countries. But global leadership has not come easily to FedEx. Painstaking monitoring of quality, recruitment of suitable staff and effective communication with customers have been the cornerstones of FedEx's success.
FedEx has set very high performance standards to maintain quality service. Effective staff, good customer relations, proper tracking of orders and other such measures have helped the firm stay at the top. The firm has often come up with performance standard programs, which help the staff meet certain performance targets and retain its position in the field. "As a multi-national, ensuring consistent performance standards and corporate values throughout its employees in every country of operation is fundamental to maintaining and growing its global status." (Case Study)
Over the decades, FedEx has faced fluctuating employee turnover rate. This has been due to the very demanding nature of work at FedEx and turnover rate is highest among courier, customer representatives and line managers. (Case Study) This explains who are assigned the toughest responsibilities. FedEx appreciates the efforts made by each person and rewards them appropriately but its performance setting programs have come under attack. We need to understand that delivering packages and documents on time is not an easy task. There are several unseen contingencies that can emerge such as weather conditions, road accidents, traffic jams and flight delays. In order to make sure that each and every packet is delivered on time, FedEx has to recruit people who are self-motivated, active, and young. But this age factor has caused trouble for FedEx.
The firm that enjoys an important place in the corporate world cannot help discriminating on age since the nature of the job is very demanding. However FedEx has been accused of age discrimination and has faced lawsuits because of its "Best Practices Pays" (BPP) and "Minimum Acceptable Performance Standards" (MAPS) programs. In Clausnitzer et. al. v. FedEx, the plaintiffs claimed that FedEx has designed its performance setting standards such that it favors youth. It has also been claimed that FedEx forces people over 40 to leave with its very demanding performance standards. The claimants also found serious discriminatory practices at FedEx where performance standards were concerned. One of them claimed that younger couriers are favorably evaluated and are given easier targets to meet while people over 40 are deliberately sidelined with impossible performance standards.
But not everyone agrees with this. FedEx has made it to the list of100 best companies to work for almost every year. The firm claims that it doesn't have a-size-fits-all policy when it comes to performance evaluation and sets targets according to the nature of the job. The tough performance standards are not exclusive to couriers or managers. The firm seeks similar good performance from other components as well including its packet tracking system, its hybrid vehicles, customer relations, suppliers, and the entire network.
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