Organization Theory and Design of FedEx - Term Paper Example

Organization Theory and Design Every generation expects easier access to more of what the world has to offer. More products and services. More information and ideas. More people and places. FedEx helped create that expectation. And they deliver on it millions of times a day, providing the access to transform possibilities into reality. Federal Express is the world's largest express transportation company, with more than 260,000 employees who deliver over 3.3 million packages in 220 countries around the globe. FedEx Express's Corporate Financial Planning group is a matrix organization that provides finance support to ten operational and support divisions. FedEx has always been a leading innovator in changing how the world works and lives. By providing perspective on subjects that are critical to life and business today, we seek to call attention to these important topics and help others realize the benefits and opportunities associated with them. The company's mission is to produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Federal Express will be focused in the customers' satisfaction in the highest quality manner. The organization will strive to develop mutually rewarding relationships with its employee, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards. This study examines the organizational structure on firm performance, incentive problems, and financial decisions. The FedEx families of companies headquarter in Memphis, TN represents a $32 billion corporation that offers the broadest array of transportation, e-commerce and supply chain solutions in the world. At FedEx, more than 260,000 employees and contractors are personally dedicated to doing absolutely, positively whatever it takes to deliver for our customers' everyday. The FedEx family of companies is comprised of the following: FedEx Express - Reliable express delivery, usually in one to two business days, delivering to 220 countries. FedEx Ground - Dependable, small package ground service, including FedEx home delivery. FedEx Freight - Regional, less-than-truckload transportation for heavyweight freight FedEx Custom Critical - Non-stop, door to door delivery of time critical shipments whether its parts to keep a vital production line running, emergency generators to restore power after the storm, or a priceless piece of art that needs special handling. As North America's largest time-specific, critical-shipment carrier, FedEx Custom Critical provides pickup and delivery services throughout the U.S. and Canada within Europe - 24 hours a day, 365 days a year. FedEx Trade Networks - High-tech customs clearance solutions. FedEx Services - Information Technology, sales and marketing services for the FedEx companies. The Strategic Direction sector of FedEx was created to improve the strategic policy and planning capability, and strengthen its external liaison and partnerships-building capacity. The sector is responsible for providing advice and support to senior management in setting the strategic direction of the organization, and does so by ensuring FedEx direction is aligned with broader government priorities, and reflects emerging environmental trends and the imperatives of partners and clients. The sector incorporates a policy development and research capacity to improve FedEx input to emerging policy, and a rigorous environmental scanning capability to assess the socio- economic, technological, legal and political environment, both at the domestic and international levels. In addition, a strong internal and external communications component supports strategic policy and planning, and helps the FedEx achieve its identified priorities. FedEx main goal is to The responsible for the strategic direction of FedEx is Mr. Frederick W. Smith he is the chairman, president and chief executive officer ofFedEx Corporation a $32-billion global transportation and Logistics Company. Smith is responsible for providing strategic direction for all FedEx Corporation operating companies, including FedEx Services, FedEx Express, FedEx Ground, FedEx Freight and FedEx Kinko's. Since founding FedEx in 1971, Smith has been an active proponent of regulatory reform, free trade and "open skies agreements" for aviation around the world. FedEx has continued to strengthen its industry leadership throughout the past 33 years, and has been widely acknowledged for its commitment to total service. The Culture of FedEx organizations drives performance in an organization. Culture is everything. Put an average human being in an above-average culture and the person will change behaviors to adapt to the new culture. Change the culture in an existing company, and the people will change with it. An Organizational Culture is a system. That system can drive people to high performance directed toward profitable customer loyalty, or it can drive apathy, internally directed, or any number of destructive "customer cancerous" activities. FedEx will not able to become successful unless they implement this culture in the company. People change, not because managers direct them to change, but because they find themselves in a culture where personal change is in their best interest. Build a culture where the behaviors you desire are clear and recognized and people will gradually build habits around those behaviors. Then, the organization will habitually serve its customers with ever-increasing value. FedEx people instinctively adapt to the culture they step into. If the culture is high performing, people will be high performing or will leave if they are not willing to perform to the cultural standards. FedEx is focused on its customer, since they are the one who will make the company successful. Customer culture is about consciously building the customer-centered organization where employees are focused on serving their customers (internal or external) for sustained, profitable growth. FedEx recognizes effective environmental management as a global corporate priority, and they are actively involved in environmental innovations and technologies designed to support this priority.In fact, FedExis among the best Fortune 500 companies for its initiatives in environmental issues, according to the Council on Economic Priorities Corporate Responsibility Profile for Environment. The OptiFleet E700, was designed as an environmentally-superior delivery truck, into its delivery fleet in 2004. The new vehicle is expected to decrease particulate emissions by 96%, reduce smog-causing emissions by 65 percent, and travel 57 percent farther on a gallon of fuel, reducing fuel costs by over a third. The said vehicle will lessen the pollution in country. This step is done because of the dedication of the FedEx to have a safety environment. The organization must have a set of tools that enable them to grasp the complexity of the organization's environment. A management system describes the organization and the set of significant interacting institutions and forces in the organization's complex and rapidly changing environment that affect its ability to serve its customers. The firm must continuously monitor and adapt to the environment if it is to survive and prosper. Disturbances in the environment may spell profound threats or new opportunities for the firm. The successful firm will identify, appraise, and respond to the various opportunities and threats in its environment. FedEx Corporation and its subsidiaries recognize that effective environmental management is one of its most important corporate priorities. They are committed to protecting and respecting the environment through outstanding environmental performance and efficiency in the conduct of its operations. As part of their ongoing efforts to attain this objective, FedEx focus on the following initiatives: Commitment to a continual improvement process in environmental management. Evaluation of environmental impacts of FedEx packaging products, operations and facilities, with a commitment to minimize impacts and restore properties affected by our operations. Improvement of employee environmental performance through detailed policies and procedures, training, and recognition of excellence. Efficient use of natural resources to minimize waste generation through efforts that include recycling, innovation, and prevention of pollution. Measurement of environmental performance through auditing with employee accountability and reporting to senior management. Integration of environmental responsibilities and considerations into daily operations and business decision-making processes. Participation in the development of sound environmental policy within the transportation and business sectors. Commitment to emergency preparedness and response in order to minimize any potential environmental impacts resulting from day-to-day operations. Use of innovations and technologies to minimize atmospheric emissions and noise. Promotion of effective environmental management by suppliers and contractors. Compliance with all applicable environmental laws and regulations. Promotion of environmental policies to employees and the public. FedEx has been leading innovator in changing how the world works and lives. It all started in 1913 as C.J. Tower & Sons and continuous to become the most successful organization in the world. By providing perspective on subjects that are critical to life and business today, we seek to call attention to these important topics and help others realize the benefits and opportunities associated with them. Now FedEx provides access to a growingglobal marketplace through a network ofsupply chain services, transportation services, and business and information services. FedEx is widely acknowledged as a world-class company. The organization was honored and is proud to be consistently recognized as a great place to work, a technology innovator and one of the worlds's most admired and respected companies. The social responsibility of FedEx cares about the communities in which we live and work. They are dedicated to effective corporate citizenship, leading the way in charitable giving, corporate governance and a commitment to the environment. Reference: 1. http://www.fedex.com/us/about/link=2 Read More