This paper discusses FedEx Corporation and details the linkage between the business strategy, workforce strategy and HR strategy that has been adopted by the company. The paper also lays emphasis on the comparative advantage of FedEx Corporation due to its commitment in making differentiation as competitive advantage and the unique way it has positioned itself on the world map of parcel or small packages service providers. Again, the paper has also highlighted the way the whole workforce of the organization has adopted to the FedEx Strategic culture and how effectively the whole of human resource strategy has been implemented right from the grassroots level to that of the highest levels of management.
FedEx is the largest among the world’s transportation service companies and has carved a niche area for itself in the small parcel delivery area in US as well as in 220 countries around the world. With around 280,000 employees FedEx has been able to successfully carry on its operation with a definite edge with that of its competitors due to the way it has established a coherent linkage with its different stages of strategic operation along with the overall business strategy, workforce strategy and human resource strategy. It has been noted that in spite of the recessionary trends in the world economy FedEx has been able to retain its employees when the competitors resorted to lay off. The success of this or the positive outcome of this was mainly due to the unique workforce strategy it adopted while keeping in view the overall objectives of the company. In order to understand the deeper linkage that existed in the management employee relationship at FedEx Corporation it would be quite pertinent here to note some of the business strategy it adopted that merged with that of the aspirations and well being of the employees.
Maintaining differentiation as a competitive advantage
FedEx has a competitive advantage in its differential approach in carrying out its operation and functional organization structure. This has kept its cost quite low enough in relation to its competitors, but covered more area of service and nimble enough to make changes on the fly. This enabled it to distribute its cost over a wider number of customers worldwide and in turn helped in giving it all the benefits of large economies of operation. The employees of FedEx were likewise trained to help their maximum by keeping this in mind that the customer value is of utmost importance and therefore it is rather imperative for each individual employee to focus his job on to the area which gives the maximum benefit to the company. This uniqueness was again manifested by the team effort on the part of the management and the employees in order to imbue a strategic culture and capabilities that would eventually benefit all parties in the long run. As the strategy adopted by FedEx was to transport any parcel or packages that was less than truck load the main customers were small and medium business organizations who were in need of such service at affordable rates. Thus, this also necessitated the employees to keep good relationships with all customers and even develop an intimacy with them and thus paved way for build up of trust right from the grass root levels to the upper ladders of administration. This has in fact become deeply embedded into every employee as a psychological contract. According to Aggarwal and Bhargava, firms need to craft and effectively communicate their human resource practice based on their business strategies and employee relations. Their role would make the attitudes and behaviors of the employees form into a psychological contract between the HRP and the employees which again would ensure an effective organization culture (2009). At FedEx the very idea of human resource was to develop in line with the strategy adopted by the organization. •
Strategic product choice and operational excellence
FedEx Corporation has...
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