People Service Profit Program Fed Ex employs over 290, 000 employees, and is one of the largest cargo airlines in the world. Fed Ex delivers millions of packages per day and firmly believes this would not be possible if it were not for its talented employees. When Frank Smith started the people service profit program, he believed that his employees were the catalyst to the success and sustainability of Fed Ex. The concept behind the “People Service Profit” program is to develop strong leaders who will subsequently develop and value the employee that they also lead. The program was develop to assist leaders in developing capabilities which will successfully allow them to positively influence and motivate employees. Leaders are given the capabilities to drive employee performance by building relationships with employees, which are built on trust, communication and transparency.
Fed Ex believes when employees feel valued, they are more committed to performing exceptionally in their roles in a way, which is also sustainable. Leaders were required to learn “ emotional intelligence” and are considered to be an essential skill of all leaders working for Fed Ex.
The “ people service profit” program was implemented through training programs for all leaders working for Fed Ex. This training program was given to all employees in leadership roles, from executives to mangers, and supervisors. The training takes place at the Global Leadership Institute not far from Fed Ex
Every organization that aspires to be successful must address the value of emotional intelligence in the work place. How people relate to each other determines if the organization eventually moves from
This results in companies complying to their employee's desires, simply to ensure their own success. GuideStar, one of the largest sources of information on nonprofit organizations, organized a research paper that gathered information from multiple studies about the correlation between employee satisfaction and customer satisfaction. It was concluded that there is a strong positive relationship between the two. To support the claim, the author of the document gave the example of “...a study at Sears Roebuck & Co. showed that a five-point improvement in employee attitudes led to a 1.3 rise in customer satisfaction which, in turn, generated a 0.5 increase in revenues” (2). These connections encourage the urgency of ensuring both satisfactions inside and outside the office
Fedex is the fastest delivery service. Faster than me, faster than cheetahs, faster than god… I will let the decisions arise out of mental thought. All my life I have been blind to the facts, FedEx can deliver before they even know they delivered. Only when I walk in the distribution centers, I will understand the velocity at which these valiant men and women work to get the services one desires. Like a beehive on speed, the boxes and products are alive. Each with the their own story, a brave and exquisite on the path to satisfaction.
In the case file for FedEx, Fred Smith the founder of FedEx mentions how business were having trouble figuring out how to get urgently needed packages to the right places quick and Smith knew that the need for business to move packages fast would only grow with time. From the beginning, FedEx was built on a foundation of obsessive customer focus (“FedEx,” 2015). Needs in marketing is the state of self-deprivation (Vander Schee, 2016). The tenacious pursuit of fulfilling customer needs in FedEx’s early days led to developing what is known at the company today as the purple promise, a
The organization I volunteered for this project was North Star Community Services. North Star is a non-profit rehabilitative service agency that provides adult day services and supported community living services so individuals with disabilities have a better opportunity to live enriched lives within the community. The organization 's mission statement is “North Star Community Services empowers each person to realize potential, pursue dreams, and enjoy life”. The agency serves people of all different ages, backgrounds and disabilities. From my observation, the adults that I met at North Star dealt a very wide variety disabilities ranging from
“Your employees come first, and if you treat your employee’s right, guess what? Your customers come back, and that makes your shareholders happy. Start with employees and the rest follows from that” (Byrne, 2012). This quote from Herb Kelleher, co-founder of Southwest Airlines, embodies the leadership at the airline. Southwest is the leading low-cost airline based in Dallas, Texas and founded in 1967 by Herb Kelleher and Rollin King. They dare to differ from other carriers because their philosophy revolves around people both internal and external. Communication, culture, and leadership are the cornerstone of their success. This paper explores key leader’s communique tactics, the role communication plays in daily operations, how the mission, vision, and culture reinforce the goals, and the prominence of connecting with internal and external stakeholders. A clearer understanding the role of communication and culture at Southwest are beneficial in developing best practices for any organization.
C.E. Woolman, the first leader of Delta Air Lines, believed that the company should take care of its employees so that, in return they would take care of customers. At the root of this care included effectively communicating with his teams and empowering them to make the right decisions. As Debra Nelson and James Quick reference in Organizational Behavior: Science, the Real World, and You, (2013, p. 283) “…communication, especially between managers and employees, is a critical foundation for effective performance in organizations…this is especially critical when leaders are articulating vision and achieving buy-in from employees.” The buy-in that Woolman received from his employees stemmed from his intentional engagement with them and expectation to provide the best customer service in the airline industry. Throughout its history, Delta has deliberately engaged its employees and has modeled a human resource management (HRM) system, which is the “term increasingly used to refer to the philosophy, policies, procedures, and practices related to the management of an organization’s employees” (Sims, 2002, p. 2). The HRM system at Delta has impacted its organizational structure, corporate communications, and shared decision making.
FedEx is a highly centralized organization, with decision-making for the firm centralized at the Memphis headquarters. While national branches of the company have some autonomy in hiring, head office controls hiring policy. Decision-making on large capital projects is also centralized, because the network structure of the company's distribution means that such decisions have global implications. As a result, FedEx has a heavily-centralized structure where very little power is delegated to local managers. Instead local managers are charged with operating the company's strategy efficiently and effectively.
As a non-profit organization, our company has been profoundly doing well in helping raise money for families. Being with an organization which is committed to providing assistance to families in impoverished towns is very generous. Although, there is a concern I would like to address regarding using certain data we are using in our annual reports.The company uses pie charts to display data and prefers one type of pie chart over the other. I feel that we should use the pie chart which demonstrates the percentages.
Fred Smith, is the founder CEO of FedEx, the first overnight express delivery company in the world, and the largest in the nation. To really grasp the concepts that he used in the formation and launch of the company, we really should examine the story in his own words. A former Marine Aviation pilot in Vietnam, Smith founded Federal Express. In 1973, the company began offering service to cities, beginning with small packages and documents. The focus was upon developing an integrated air-ground courier system something that had never been done before. What guided Smith more than anything else according to his own words were the leadership qualities that he developed as a Marine officer in Vietnam that have guided his company from the beginning. These principles, plus his days at Yale came together in FedEx. In his philosophy, he tells his managers to rely on their subordinates, delegate and to praise in public for a job
The critical factors in the successful transformation of British Airways were changing the culture of the organization for the employees and the consumers. British Airways embarked on an aggressive media campaign that helped change the “face” of the airline. Their new tag line was “The worlds favourite airline”. Customer service became the number one priority for all employees. Lead by Colin Marshall, “an enabling culture (was put) in place to allow customer service to come out, where rather than people waiting to be told what to do to do things better, it’s an environment where people feel they can actually come out with ideas, that they will be listened to, and feel they are much more a part of the success of the company” Jick (2011)(p.30). A “Putting People First” (PFF) program was instituted for all front line employees. This helped to unify the employees with the new vision of customer service first for the company. During these two day mandatory meetings, all front line staff interacted with all levels of managers and leaders on an even playing
These are their daily volumes for those services. FedEx has many service areas. They service over 220 countries, territories and every single address in the U.S. FedEx tends to make more than 6 million package tracking requests daily. This is an outstanding number for a company dealing with packaging and locator with tracking numbers. Their express facility has 1,057 stations, and 10 air hubs. While their ground services has 32 hubs and over 500 pickup/delivery terminals. Freight has approximately 355 service centers and nearly 2,000 office locations. Despite all their services FedEx has a mission. Their mission is to produce outstanding financial returns for their shareowners. However, all customer requirements will be met while providing high value logistics, transportation and related business through operating companies. According to FedEx website, “FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers” (About FedEx). Safety is their number one concerns and first considerations in all operations. However, all their corporate activities will be conducted according to the highest ethical and professional standards. FedEx values their people, service, innovation, integrity, responsibility, and most of all loyalty. This company strategy consists of three levels; compete collectively, operate independently, and manage collectively. These strategies will help the company accomplish their goals. Standing, as
The competition is high in regards to transportation and logistics industries. One of the world's top shipping companies is FedEx. Some of its organizational goals include adding high value to all shareholders, including customers and employees, as well as providing logistics needs for companies around the globe in a fast and cost effective manner. In order to meet these goals, the company must set standards to adhere to in regards to evaluating and measuring performance.
Southwest Airlines, a major airline company in the United States says there’s something they value more than its customers and that something, is their employees. Organizational structure is referred to the system of shared ideas, values, and beliefs which basically controls how employees behave in organizations. These shared ideas and values have a strong influence on the organization and its employees in the means of how they dress, act or even how they perform their jobs. Southwest Airlines is known for their organizational culture and this is also considered one of the key factors contributing to their success. However, it is very unusual to hear that a company will put their employee happiness above their customer satisfaction. Southwest Airlines lists the employees first, customers second and shareholders third. If the company treats the employees right, the employees will treat their customers right and this all results in increased profits which will make everyone happy including the shareholders. Southwest has created a culture that is fun, full of values and ideas which is to help employees to enjoy what they do and take pride in their jobs. The airline as well teaches and encourages the employees to put others first and show great customer
Study findings show that strong leadership systems focus on customers, motivate employees, and implement their customer service vision. They also focus great attention on gathering the information needed to track customer satisfaction, and employees overall performance. Customer service should be designed and delivered seamlessly from the customer's point of view. Customer-driven operations lead to success. Decentralized, uncoordinated customer service provision makes for a most frustrating experience for customers.