Among the 100 “best companies to work for “reputation of being one of the most employee friendly companies in the world In 2000, FedEx employee turnover rate was 6%, well below the industry average of 20%.((fedex.com, 2018).
Employee retention “in our competitive market place, employee
loyalty tends to be low. If employees don’t like their jobs they simply walk
across the street and find a new one. It’s important to keep your people happy
and to create an environment where they want to stay (Mc Mahan, HR manager at
FedEx).
History of employee commitment since inception in 1971, its
management focused on providing a suitable work environment that encouraged
employees to come up with innovative solutions during severe financial
difficulties during the first couple of years, the employees were prepared to
sell their personal belongings They were also prepared to use their own credit
cards to purchase fuel to deliver the packages to the customers continued
working even when they didn’t receive their salary on time (fedex.com,
2018).
Best practices at
FedEx People service profit (PSP) philosophy adopted by the founder of FedEx.
If FedEx took proper care of its employees, they would provide efficient
service to the customers. This in turn would benefit the company by generating
more profits Survey-Feedback-Action (SFA) Program.Helped management take
decisions regarding promotions.Online survey system in the US in 1992.Each
April, every employee is asked to participate in the online survey .Managers
hold feedback sessions. Best practices at FedEx leadership evaluation and
awareness process (LEAP) • Encourage non-managerial cadre employees to move to
the managerial level within the company Employee Communication Program.SFA
program guaranteed fair treatment procedure and Open Door Policy and Grievance
system (fedex.com, 2018).
Best practices at FedEx Job change applicant tracking system
(JCATS).Online computer job posting system that allows hourly employees to post
for any available job recognition and Reward Program.Awards such as the ‘Bravo
Zulu’ and the ‘Golden Falcon Award’ (fedex.com,
2018).
Anyway there can be certain drawbacks also. Since applying this practice will introduce mutual prohibitive combinations like team working and compensation based on one’s performance are running a huge risk (Delery 1998 in Redman and Wilkinson 2009). Further, it is also hard to have a universal best practice, since negotiations with regard to the appropriate choice of best practice did not and will not come up to a assumption due to insufficient methodology and theoretical definition. Even a practice has been fruitful for popular and successful organization, it does not inevitably work on the others.
ReplyDeletePartly agreed.However, a knowledge of what is assumed to be best practice can be used to inform decisions on what practices are most likely to fit the needs of the organization, as long as it is understood why a particular practice should be regarded as a best practice and what needs to be done to ensure that it will work in the context of the organization. Becker and Gerhart (1996) argued that the idea of best practice might be more appropriate for identifying the principles underlying the choice of practices, as opposed to the practices themselves.
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