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1. HR PRACTICES
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Presented by : Piyush Aggarwal (MBA 2B)

2. FedEx Facts
1971,Frederick W. Smith realized the need for an
airfreight system which could deliver documents
overnight.
Company was incorporated as 'Federal Express
Corporation' in June 1971 at Little Rock, US, with an
initial investment of $84 mn.
In April 1973, FedEx commenced full-fledged operations
across 25 cities in the US.
FedEx had suffered losses during the initial years of
operations, but by 1976 it had started generating profits.

3. FedEx Facts
Today's FedEx is led by FedEx Corporation, which
provides strategic direction to its operating companies
that compete collectively under the FedEx name
worldwide:
 FedEx Express, FedEx Ground, FedEx Freight,
FedEx Office, FedEx Custom Critical, FedEx Trade
Networks and FedEx Services.
Independently, each company offers flexible,
specialized services representing the best supply
chain, transportation, business and related information
services.
FY16 Revenue: $50.4 billion

4. FedEx's HRPractices
 People-service-profit (PSP) philosophy
 Recruitment and Selection
 Training and Development
 Survey Feedback Action program
 Employee Communication Program
 Job Change Application Tracking System
 Leadership Evaluation and Awareness
Process
 Succession Planning Executive Education
 Recognition and Reward Program

5. People-service-profit (PSP)
philosophy
 In 1973, Founder and CEO, Smith had
developed and implemented FedEx’s ‘People-
Service-Profit’ (PSP) philosophy.
 This philosophy was based on the fact that 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.
 In line with PSP philosophy FedEx developed
several employee friendly policies regarding
recruitment and selection, training and
development, performance appraisal and

6. Recruitment and Selection
 Application and applicant screening by developing an
online form .
 Applications form from online data was matched with
company’s job eligibility norms recorded in PRISM
and eligible candidates were identified ,
 Next step : aptitude test in basic math, English, and
reasoning , then
 Interview ,
 Fitness test and background test ,
 Finally offered employment at FedEx.
 Estimates revealed FedEx hired 25,000 employees
every year.

7. Training and Development
 FedEx strongly believes in training because it
improves an employee’s performance and
productivity, which in turn influences the
service quality, retention efforts, and
profitability.
 Digital Assessment Management system :The
system finds new training guides, categorizes, and
organizes them. Helped the company stay updated on
recent training modules, in the integration of graphic
image updates. It has improved service quality and
productivity of training materials. The company uses
consultancy services to establish training needs,
sometimes to conduct the actual training and to evaluate

8. Training and Development
 Group discussion training is another training method
employed by FedEx because it enables participants
to raise their concerns, as well as save on time that
would be used for one-on-one training.
 FedEx has established online training programs to
educate its employees about harassment at work
and the possible consequences of engaging in the
behavior.
 FedEx values people and their diversity, and it has
won numerous awards for treating minorities in the
organization with respect. The company trains its
employees how to relate with each other without
discrimination, and it trains minorities how to fit in the

9. Survey FeedbackAction
program
 The SFA program (a key employee relations and
satisfaction program) helped management take
decisions regarding promotions.
 From its inception, the SFA was administered
manually, but that changed in 1992 with the
introduction of online survey system in the US and
other automations.
 Each April, every employee is asked to participate
in the on-line survey. After the results are
gathered, managers hold feedback sessions with
their employees to discuss the survey findings
and identify problems within and outside of their

10. Employee Communication
Program
 The employee communication programs
implemented by FedEx included the SFA
program, Guaranteed Fair Treatment
Procedure and Open Door Policy.
 FedEx also devised a mechanism to address
and resolve employee grievances.
 This was apart from employing a formal
communication system to inform employees
about the major events taking place in the
company.

11. Job Change Application
Tracking System
 JCATS is an on-line computer job posting
system that allows hourly employees to post
for any available job.

12. Leadership Evaluation and
Awareness Process
 In 1988, FedEx devised a program known as
‘Leadership Evaluation and Awareness
Process’ (LEAP).
 The process was introduced to encourage
non-managerial cadre employees to move to
the managerial level within the company.

13. Succession Planning Executive
Education
 FedEx had also devised a succession
planning mechanism - Succession Planning
Executive Education - to groom its senior
management employees for top management
positions.
 FedEx also conducted internal employee
training programs, which were designed along
the lines of executive education programs
offered by management institutes.
 FedEx was considered one of the most
employee-friendly companies in the world
because its innovative HR initiatives .

14. Recognition and Reward
Program
 FedEx rewards employees for their work with
awards such as the ‘Bravo Zulu’ and the ‘Golden
Falcon Award’.
 FedEx is an example of an organization that has
created an effective HR strategy that supports
productivity and profitability.

15. Complimenting FedEx for its HR policies,
Work Force magazine wrote :
"FedEx is an example of an organization that has
created an effective HR strategy that supports
productivity and profitability. The corporation's
philosophy is that employees should be doing the kind
of work they want to do."
Workforce today’s
compliment

16. Commitment of the employees
When the company was going
through severe financial
difficulties, the employees were
prepared to sell their personal
belongings and use their own
credit cards to purchase fuel to
deliver the packages to the
customers. Even when the
employees didn't receive their
salary on time, they continued
working with FedEx.

17. Employee Retention
 Employee retention was a significant aspect of
FedEx's HR policy.
"In our competitive marketplace, 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

18. The Benefits Reaped
FedEx's employee-friendly policies resulted in very low
turnover rate. In 2000, the turnover rate was estimated to
be below 6%, while the industry average was 20%.
It also enhanced the reputation of the company as an
employee-friendly, service-oriented organization.
Over the years, FedEx developed several innovative HR
and hence achieving maximumemployee satisfaction.
This served as a benchmark for many organizations,
particularly in the service industry.

19. Conclusion
Over the past 30 years FedEx has been a company
which has changed the way we view express
transportation and delivery services. Furthermore, they
have changed the landscape of Human Resource
Management practices within companies, setting a
precedence for other companies in different industries.
FedEx has shown that a company is not only about
technology, managers and profit making. It places their
employees on pole position, as they are the ones that