UPS Case Study
The case study focuses on one of the strategies which UPS employed to surpass its competitor, the U.S. Postal service in the delivery of small packages within the United States. It suggests that the way in which UPS managed itself through the bureaucratic model was superior to that of the U.S. Postal Service management style.
Within the case study it states that “One important reason [that UPS surpassed the U.S. Postal Service] is the concept of bureaucracy”. According to Wilson (2004) bureaucracy was a theme which dominated organisation studies throughout the 1950’s and was the most common form of organisational design. Weber in Daft et al (2007, pg 31) defines the bureaucratic model as:
“Labour is divided with clear definitions of authority and responsibility that are legitimized as official duties
Positions are organized in a hierarchy of authority, with each position under the authority of a higher one
All personnel are selected and promoted based on technical qualifications, which are assessed by examination or according to training and experience
Administrative acts and decisions are recorded in writing. Recordkeeping provides organisational memory and continuity over time
Management is separate from the ownership of the organization
Managers are subject to rules and procedures that will ensure reliable, predictable behaviour. Rules are impersonal and uniformly applied to all employees”
The case states that “UPS has a well-defined division of labour”, “The leader is expected to have the knowledge and capacity to justify the position of leadership”, “Technical qualification is the criterion for hiring and promotion”, “UPS thrives on written records” and “Every manager is given bound copies of policy books and expected to use them regularly.” Upon further research it is not clear whether or not management is separate from the ownership of UPS, which suggests that at the very least UPS is seen...
Please join StudyMode to read the full document