UPS faces challenges in hiring for its Information Services department due to poor existing skills and the need to adapt to new technologies. While internal promotion is preferable given UPS' values of developing existing employees, external hires could provide new skills and ideas. However, external hires would require more time to adjust to UPS' culture. Considering UPS' emphasis on teamwork and promoting from within, the document recommends hiring internally for Information Services and training existing employees on new skills. This allows UPS to develop talent while maintaining cultural alignment.

1. UNITED PARCEL SERVICE
HARVARD BUSINESS SCHOOL
Masca Indra
Renni Rengganis
Yessie Fransiska

2. OUTLINE
Case Background
Case Problem Definition
Company Profile
Problem solving and analysis
Conclusion

3. Case Background
On an annual basis, UPS delivers 4 billion packages and documents
through a fleet of approximately 100,000 package cars, vans, tractors,
motorcycles and 233 UPS-owned aircraft
Having an enormous package delivery network, offers UPS an opportunity to
create even greater value for their customers by using the network to manage
the integration of
information, transportation, inventory, warehousing, material
handling, packaging and even the security of packages.

4. Case Problem Definition
1. New plan for hiring outside talent Information Services
2. Different opinions about hiring new talent for Information Services
3. Facing the competitors and new technology challenges
4. Face the competitors
USPS : they compete in the delivery of low weight packages in short distance
and expedited service.
FedEx : the using of hi tech
5. Face the new generation of workers
6. Information service department’s problems :
- poor skill
- haven’t specialist the “new” outsiders can not match with
UPS culture

5. Company Profile
• Started in 1907 by 19 year-old Jim Casey then called American
Messenger Company.
– Became Unite Parcel Service of America in 1929 and
began shipping packages on commercial airliners.
• Several Transformations:
• From messages to package delivery
• To international air transport company
• Finally, in the 1990s, to a logistics company

6. The UPS Road Map
Year Description
1907 Jim Casey founds a six-bicycle messenger service called American Messenger Company in
Seattle, Washington
1913 American Messenger merges with Motorcycle Delivery Company, creating Merchants
Parcel Delivery, which has a "fleet" of a few motorcycles and one
Model T Ford.
1915 The company begins painting its delivery vehicles brown.
1916 The company drivers join the International Brotherhood of Teamsters.
1918 Three Seattle department stores hire the firm to deliver merchandise to their customers.
1919 After buying a delivery firm in Oakland, California, the company changes its name to
United Parcel Service (UPS).
1930 Operations are expanded to New York City, which also becomes the location of the
company's new headquarters.
1953 UPS begins a steady expansion of its common-carrier parcel business, through which it
picks up parcels from anyone and takes them to anyone else; UPS Air is launched as a
two-day air express service connecting major cities on the East and West Coasts.

7. The UPS Road Map
Year Description
1962 Casey ends his long reign as CEO.
1975 UPS becomes the first package delivery firm to serve every address in the continental
United States; the first international expansion begins with the launch of delivery service
in Ontario, Canada; the company moves its headquarters to Connecticut.
1976 UPS enters the European market through the start-up of a delivery service in West
Germany.
1982 UPS Next Day Air, an overnight air delivery service, debuts.
1985 The company begins offering international air service between the United States and
Europe.
1991 Headquarters are relocated to Atlanta.

8. Company Profile
Known in the industry as "Big Brown,“ UPS is one of the biggest
Shipping Company In US
UPS relocated its corporate headquarters from Greenwich, Connecticut,
to Atlanta, Georgia
By 1992, the corporation was investing more money in
computers than in ubiquitous brown vehicles. These internal
changes reflected the company's traditional focus on super-efficiency
as well as its newfound emphasis on customer satisfaction.

9. UPS VALUE
We serve the evolving distribution, logistics, and
commerce needs of our customer worldwide, offering
excellence and value in all we do. We sustain a
financially strong company, with broad employee
ownership, that provides a long-term competitive return
to our shareowners.
– UPS Mission Statement

10. CULTURE
• “Consensus building”
• Focused on efficiency and execution
• Continuous improvement
• Strong values: service excellence, employee
ownership, commitment to stability
• Low turnover, loyal workforce

11.  Private postal companies
COMPETITION – Federal Express
 Large government-supported agencies
– USPS
– Deutsche Post
HEAD-TO-HEAD COMPETITION
FedEx UPS
Ground Vehicles 50,000 88,000
Aircraft 625 583
Employees 216,500 360,000
Packages Shipped Daily 5.4 million 13 million
Assets $15.4 billion $28.9 billion
Revenues $22.5 billion $33.4 billion
Net Income $830 million $2.9 billion

12. Problem solving and conclusion

13. Problem solving
To be the first company in
For the problem are faced
Logistic Industry, UPS have
by UPS, they are late to
to concern about this
follow the technology The choice for hiring can be
problem, they should place
because lack of skill in internal or external.
the person with high
Information Service
capability in Information
Department.
Service Department.

15. INTERNAL RECRUITMENT EXTERNAL RECRUITMENT
ADVANTAGES ADVANTAGES
1. The cost is relatively cheap, because it 1. Have ideas and new approaches
does not need the selection
process as external recruitment.
2. Organization knows that workers have 2. Work started with a
the ability to chair empty. clean sheet and pay attention to the
specification of experience
3. Workers have a 3. The level of
high motivation because knowing the knowledge and expertise not
possibility of increasing available within the
company that now.
4. Clear career development
5. Workers have a good understanding
of policies, procedures, rules and habit
of the organization.

16. INTERNAL RECRUITMENT EXTERNAL RECRUITMENT
DISADVANTAGES DISADVANTAGES
1. Not always provide a new perspective 1. Low employee morale and commitment
2. Promoted workers are 2. A relatively long period of adjustment
familiar with subordinates making it
difficult to run the authority and power.

17. UPS VALUES :
• Function as partner
• Consolidated parcel delivery is main business
• Promote from within
• Considerate and understanding of our people
• Uniform service
• Maintain dependable delivery service
• Insist upon integrity in our people
• Economic stability
UPS Core Competencies
Achievement orientation
Organizational commitment
Teamwork and cooperation
Developing others
Relationship building (networking)

18. CONCLUSION
• Based on the value that company
have, especially about employee which is said
that “Promote from within”, we decided to make
Internal Recruitment for IT Service.
• IT Service need company generic
competency, the skill can be trained to the
internal sources.
• The UPS has already run well because the
employee, supervisor, manager, and director
have a solid teamwork, the newcomers have to
work hard to adjust the culture. It’s better to
choose Internal Recruitment as a choice.

19. thaNK yOu…