Fedex Organizational Structure

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ORGANIZATION STRUCTURE

MBA 640: Organizational Behavior

Nicholaus R. McNeal

April 26, 2011

INTRODUCTION
Organizational behavior is vital to the success of any organization. When the organization’s behavior is not effective, there is a chance the company will suffer. This paper will evaluate the organizational structure of Federal Express, in particular FedEx Express (FedEx, 2011). ORGANIZATIONAL CULTURE (FORMATION AND EFFECTS)

FedEx has acquired a reputation for possessing a strong customer-service organizational culture. The textbook states, “Organizational culture is what the employees perceive and how this perception creates a pattern of beliefs, values, and expectations” (Ivancevich, Konopaske, & Matteson, 2011, p. 40). Since its inception in the 1970s, FedEx’s culture has centered on the customer. “If employees are to transform to be customer-focused, the idea must first begin with the leadership team and filter through the organization. As the idea trickles downward, employees make a conscious decision to modify self to align with the established culture” (Morrow, 2003, p. 1). This, along with other concepts has helped form FedEx’s culture and continues to do so today. Another concept that has shape FedEx’s culture is “specifying and reinforcing the behavior employees are expected to deliver, both with external customers and coworkers” (Morrow, 2003, p. 1). Employees receive daily reminders of expectations via video messages from executive management on televisions scattered throughout the corridors of FedEx. The messages cover a wide range of information that illustrates how an employee remains in compliance with “The FedEx Way.” Reinforcements play a great role in the effects of FedEx’s culture, outcome, and effectiveness. The textbook states, “If quality customer service is important in the culture, then individuals are expected to adopt this behavior, and if adhering to a specific set of procedures in dealing with customers is the norm, then this type of behavior would be expected, recognized, and rewarded” (Ivancevich, Konopaske, & Matteson, 2011, p. 42). This statement is exemplified in FedEx’s culture. “The rewards and recognition system is used to encourage employees who exhibit a “FedEx Attitude” and sends a message to non-performers” (Morrow, 2003, p. 1). Examples of reinforcements at FedEx include Bravo Zulu awards, Purple Promise awards, and Five-Star awards just to name a few. Each award is accompanied with an innovative styled trophy, the employee getting his or her name mentioned in the company newsletter, and money. FedEx’s reward and recognition system successfully motivates employees to exhibit the desired behaviors to improve the business.

The aforementioned items, formation of FedEx’s culture, rewards and recognition, along with diversity and promotion from within has guided the FedEx into awesome outcomes. Fortune 500 reports, “FedEx has a seven percent voluntary turnover rate” (CNN, 2011). In addition, FedEx was named the Best Cargo Hub for 2010. Employees receive reminders of these things daily as they enter the facilities and see banners hung wall to wall of numerous FedEx awards. PROCESSES (Communication, Decision-Making, and Leadership)

The communication process at FedEx is a fundamental process. The organization relies heavily on the communication process to organize employees into a unified team focused on achieving company goals. The company’s communication philosophy integrates electronic media with the person-to-person communication process inside each organization code and work group. This creates synonymous dialogue globally. FedEx depicts communication as a two-way process. The two-way describes the transporting of information. In the process, an individual sends information and feedback while another individual receives the information and dialogues concerning feedback. This process results in shared information and understanding. FedEx...
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