Performance Management at FedEx Corporation

A potential human resource development opportunity in organizations is performance management. The process is critical in organizations to enhance productivity and efficiency of the workforce. Performance management is an essential HR tool that aligns a company’s functions to enable the attainment of organizational goals and ensuring progress and development of employees (Jain & Gautam, 2014). Human resource development initiatives, therefore, considers performance management as one of the leading opportunities that should be improved to enhance the overall success of a firm.

Performance management programs in organizations involve appraisal and employee development process with the intention of promoting labor productivity in an entity (Jain & Gautam, 2014). Performance management system is essential in enterprises since it contributes to the overall organizational success. However, caution should be taken to develop a program that gives proper feedback and can be automated to ensure efficiency in the process. Performance management is often resisted in organizations since employees and managers feel threatened by the process.

Performance management is a function of business leaders, human resource managers, and the functional managers (PeopleFirm, n.d.). The HR process incorporates aspects that are related to strategy, planning, and human resources (Krishnan, 2013). Therefore, various elements of performance management should be integrated to enable the growth of employees thus creating a sustainable organization that values the efforts of its workforce. The report is about a performance management program as an HR development opportunity at FedEx Corporation.

Overview of the Subject Company: FedEx Corporation

Federal Express Corporation was incorporated at Arkansas in the United States in 1971. The company deals in transportation services globally and has a strong brand image in the courier services sector as it serves over 220 countries globally (Aerni, 2018). The firm attributes its worldwide success in the transportation and courier services industry to its innovative and committed workforce that has been part of its growth strategy.

FedEx has adopted technology in its operations and is among the pioneer express transportation firms to automate its customer services (Aerni, 2018). The company utilizes large computer and telecommunications networks such as the Super Tracker. Therefore, it is one of the best companies that value human resources in the world because of its proper HR policies. It has been striving to provide quality services to its customers by creating a conducive working environment and putting in place HR policies that motivate its most valuable asset which is the employees.

FedEx Corporation’s rapid growth and success in the industry is attributed to its People-first strategy. The management philosophy enables the company to create proper relationships with its employees as the CEO is committed to engaging the workers in its central decision making processes. FedEx has a committed workforce since its formation (Said, 2016). For instance, the company faced financial challenges in its earlier years of operations, and its workers were ready to use their resources to ensure the timely delivery of packages to customers. The firm’s people-service philosophy aims at caring and treating employees better to facilitate the provision of quality services to customers. FedEx’s value for its employees has led to its continuous human resource development that aims at improving the performance of workers.

It uses a 360-degree appraisal method which provides tremendous benefits to the entity through improved communication. The appraisal mechanism creates awareness for all employees and their managers thus involving every person in the appraisal program. The company has a job change tracking initiative in which open positions are posted in the portal to enable workers to shift from their current positions to a given job within the organization. The program aims at improving the productivity of employees by ensuring that people pursue their areas of interest and that different duties are performed by the right people (FedEx, n.d.). The employee transfer program aims at motivating the workers to exploit their full potentials since the job rotation enables them to show various skills at different functions.

Assessment of Performance Management Program

Conduct Research and Benchmark on the Best Practices

The management team should understand the expected standards to be used as a measure of the results. A study should be conducted concerning the performance management trends, for instance, the latest technology used in the HR system to enable efficient analytics of employee performance data. Case studies of organizations which have had exemplary performance in the program should be analyzed to identify the critical success factors to assess the progress of the program (Hearn, 2017). Furthermore, other organizations can be used as a benchmark for FedEx’s performance management initiative thus evaluating its effectiveness based on the best industrial practices.

Clarify Fedex’s Goals for Performance Management

The objectives of the performance management program should be made clear to assess the conformity of the expected results with the overall goals. The set goals should be achievable and measurable within a given timeframe (Hearn, 2017). The effectiveness of the performance management initiative is dependent on the type of goals to be achieved hence it becomes a relevant measurement criterion for the suitability of the HRD initiative. The goals to be clarified include, enhancing the overall organizational performance, alignment of employee and the company’s objectives, the creation of effective performance culture and integration of personal behavior with the corporate values.

Establishing Success Measures

The success factor for each performance management goal should be identified to facilitate the measurement of the effectiveness of the program (Hearn, 2017). The measures include the increase in productivity and growth in company profits. The efficiency of the employee and management performance discussions, the proportion of workers with set objectives, and the percentage of high and low achievers should also be used. Furthermore, the amount of employee development activities conducted in the firm and the frequency of feedback should be used as measures against the goal of promoting performance development.

The criteria to be used should be clearly defined and related to the set objectives to facilitate the assessment of the performance management program (Hearn, 2017). The ease in which the management team and employees understand and participate in the initiative should be used as a success measure. The time taken for the process and attitude of the participants can be determined to facilitate the assessment of the program (Walker & Moore, 2011). The benchmarks identified creates standards against which the implementation of the performance management is evaluated.

Evaluation of the Performance Management Program

Upon the establishment of the success measures, the management team should collect data for the evaluation process. Qualitative and quantitative data should be collected and tabulated for a thorough analysis to determine the suitability of the HRD initiative. Quantitative data, for instance, the organization’s profitability and the level of workers’ engagement can help in establishing the contribution of the performance management (Hearn, 2017). The data can be collected through a direct survey of employees and supervisors concerning their experiences during the HRD process.

Questions should be asked concerning the performance management initiative during the workers’ attitude surveys. Interviews should be conducted on a portion of employees and their managers concerning their experiences with the process (Hearn, 2017). Other information can be obtained from the automated performance management system. The objectives and personal development goals should be compared to identify any deviations that may derail the success of the HRD program. Upon the completion of the evaluation, the benchmarks should be updated to conform to the current changes in the business environment.

Taking Appropriate Actions

After the analysis of the results concerning the effectiveness of the performance management process, the management team should establish the areas that need improvement (Hearn, 2017). If the results of the HRD program does not meet the expectations, adjustments should be made to ensure that the goals are appropriately designed. Employees and managers should be retrained concerning the performance management process to ensure that it becomes a success in the long run. The improvements should be undertaken through the involvement of all employees and the management team to enable their buy-in and ownership of the performance management program.

Design of the Performance Management Plan

Review of Employee Job Description

A thorough assessment of the current job description is undertaken through the involvement of HR professionals and line managers (HRcouncil.ca, n.d.). The purpose of the review of the job description is to identify any changes in the job profile of workers. The new changes in employee responsibilities are updated in the HR systems to provide more information concerning the activities of every worker. The relationship between employees’ job description and the work plan should be reviewed and connected to the firm’s goals and strategic plan.

Develop a Work Plan

A work schedule should be created to highlight the tasks or activities to be completed within a given timeline (HRcouncil.ca, n.d.). The expected results from every action should be determined and communicated to the employees in writing. Standards of employee performance should be established to be used during the performance evaluation process with the aim of rewarding top performers and taking corrective action in case of any deviation.

Identification of Key Performance Indicators

The essential performance objectives at the end of the year should be identified according to the organization’s strategic plan (HRcouncil.ca, n.d.). The employees’ performance projections should also be considered when determining the indicators. Emphasis should be put on a specific job when defining the performance objectives that will be used during the evaluation process.

Determination of Training Objectives

FedEx values its employees’ skills and talents since it is a service company that depends on the provision of quality services to customers through its committed workforce. Therefore, the training goals should be established to enable workers to improve their skills and knowledge for the overall success of the organization (Aerni, 2018). The required competency at different functional areas should be identified to ensure that the training and development programs are tailored towards improving specific skills needed for various functions. Career objectives should also be established in preparation for long-term career planning.

Implementation Strategy

Aligning the Performance Management Plan with the HR Systems

The performance management system should be aligned with other human resource initiatives at FedEx. The key competencies that are applied during performance management should be similar to the ones used for staffing, training, development, and hiring (Qamar & Asif, 2016). The alignment of the objectives ensures that the hiring process conforms to the job requirements.

Involve All Organizational Members in the Process

The workers and supervisors should be engaged in the HRD program. Individuals should have a role in the process to ensure their commitment. For instance, FedEx CEO should develop the performance management with other executives leading to the ownership of the process by the top leaders (Neely, Gregory & Platts, 1995). There should be support from the managers of the organization to ensure the success of the program during its implementation.

Communicate the Program

Communication is an essential strategy to ensure proper implementation. Employees and managers should be informed about their roles and expected performance levels (Qamar & Asif, 2016). A change management initiative should be designed since the implementation of the program is expected to cause various changes in the organization’s HR process. The members of FedEx Corporation should be offered the opportunity to give their opinions concerning the HRD program. Open door policy should be adopted in the firm to enable employees to articulate their views. Relationships between employees and managers should be created to facilitate the sharing of information that is critical for the implementation of the program.

Automation of the Program

The designed performance management system should be automated to facilitate efficient implementation (Qamar & Asif, 2016). Automation ensures a reduction of workload and efficient evaluation of the implementation process as employee data and other information is captured online. However, time and resources should be balanced during the automation process to ensure that the entity does not incur more costs beyond the projected expenditure.

Pilot Testing and Training of Managers and Employees

The performance management system should be pilot tested to identify its suitability. The pilot program will indicate the understanding and appreciation of the system by the management team and employees at the organization (Qamar & Asif, 2016). The tests should be conducted to enable the determination of the perceptions and reactions of team members towards the system for suitable adjustments to be made. Managers and employees should be trained concerning the performance management through their online employee portals.

Delivery

Communication of the Program Activities

The management team should justify the relevance of the HRD program to all parties such as employees and line managers during its implementation. Specific reasons for the adoption of the plan should be provided to convince all parties to take part in the implementation process (Mucha, 2011). Creation of awareness is essential to achieve the level of commitments required.

Modification of the Existing Operation Systems

The management systems should be adjusted to accommodate the performance management program. The program implementation costs should be incorporated into the organization’s budget to facilitate the funding of various processes (Mucha, 2011). The HR systems should be modified to accommodate the performance management program thus enabling the efficient flow of employee data between different departments for a streamlined decision-making process. The HRD system should be aligned to the changing business processes such as HR regulations to ensure compliance.

The performance management system should be integrated with the existing HR software such as the talent and learning management suites. The integration enables knowledge sharing and cooperation which provides efficient metrics and data analytics (Puckett, 2015). The FedEx management should offer continuous coaching to its staff members to address their needs and other issues concerning the employee performance.

Focus on Change Management

The management team should focus on the change management to ensure effective delivery of the program. The performance management initiative is likely to cause changes in the organization hence employees may resist its implementation. Therefore, managers should effectively manage change by motivating employees to embrace the program implementation process. Fair appraisal techniques should be used to evaluate employee performance to effectively reduce any chance of dissent from a section of employees (Mucha, 2011). Resistance by workers against the process should be managed by addressing the specific concerns of the workers.

All parties and employees should celebrate the success of the program implementation process thus motivated to stay focused during their participation (Mucha, 2011). The program should be monitored regularly to determine if it is consistent with the designed plan. Evaluation should also be conducted on the performance management system to determine its success while taking corrective actions on the deviations from the expected results.

The strengths and weaknesses should be identified with a focus on maximizing on the opportunities available for employees (Mucha, 2011). The management can come up with various strategies aimed at improving the weak areas of employees to improve their performance. Honest feedback should be provided to employees concerning their progress. Constructive feedback should be aimed at particular actions and address people about areas which need improvements to ensure better performance in the long run.

Employees can be provided with copies of work plans and the targets at the start of every performance management cycle (HRcouncil.ca, n.d.). Thorough monitoring of the process should be conducted by the management to ensure consistent feedback and progress reports. Employees should be supported through training, coaching, and mentorship as more time is provided for every employee to improve their productivity. A periodic review of the HRD program can be done to determine if the plan designed is being applied consistently.

Method of Evaluation

The performance management program in FedEx Corporation should be evaluated to ensure continuous improvement. The metrics that can be assessed to determine the effectiveness of the process include the completion of training. For instance, verification can be conducted on the critical competencies of the users of the performance management program such as managers to determine their understanding and commitment in the process (Qamar & Asif, 2016). The completion of performance management operations such as the provision of formal performance appraisal forms to employees should be tracked to indicate the progress of the program.

Management reviews should be conducted to determine if the evaluation criteria used for employee performance is applied systematically to all persons without bias. Feedback can be obtained from the employees and managers concerning their reactions to the program to identify the progress made during the implementation process (Qamar & Asif, 2016). Employee results can be measured after the implementation of the performance management program to determine its suitability in the organization.

Furthermore, competency of the users of the initiative should be assessed to identify the relevance of the continued training and coaching during the implementation process. A competency model should be used to determine the level of productivity of the workers upon implementation of the system to establish its suitability and failures (Qamar & Asif, 2016). The competency technique should incorporate various factors such as the improvement of the technical and leadership skills of the team members and employees involved in the process. The essential competencies which are aligned to the strategic goals and success measures should be determined to be used in the evaluation process.

Checklist Evaluation Method

A checklist evaluation technique can be applied to evaluate the progress of the program in the organization (Qamar & Asif, 2016). The tool has structured performance questions which have a Yes or No answer choices. The checklist is applied to provide a quick evaluation of the effectiveness of the process as a high number of negative responses indicate the failure of the program to meet its set goals.

The items to be included in the checklist include the existence of collaboration between managers and employees when setting the objectives. The questions to consider are: have the employees been provided with a copy of the performance management plan? (HRcouncil.ca, n.d.). Is feedback provided to the employees concerning their performance? Is the monitoring process frequently conducted as indicated in the HRD plan? And are the employees and managers adequately trained concerning the performance management system? Are the periodic reviews conducted through the involvement of all employees? And is there an appeal process in the organization to enable employees to raise complaints concerning the appraisal methods used? The questions should be clearly stated in the checklist to allow a quick evaluation of the program.

References

Aerni, E., Burgess, R., Kennedy, M., McCallum, J., & Schobert, T. (2018). FedEx human resources: An integration and assimilation strategy for the 21st century. Retrieved from http://www.lcsc.edu/media/5910117/FEDEX-PROJECT-FINAL-COPY.pdf

FedEx. (n.d.). FedEx Attributes Success to People-first Philosophy. Retrieved http://www.fedex.com/ma/about/overview/philosophy.html 5

Hearn, S. (2017). Measuring the Effectiveness of Performance Management. Retrieved from https://clearreview.com/how-to-measure-performance-management/

HRcouncil.ca. (n.d.). Keeping the right people. Performance management. Retrieved from http://hrcouncil.ca/hr-toolkit/keeping-people-performance-management.cfm

Jain, S., & Gautam, A. (2014). Performance management system: A strategic tool for human resource management. Prabandhan Guru, 5, 28-31.

Krishnan, S. (2013). 7 elements of effective performance management. Retrieved from https://www.researchgate.net/publication/237778624_7_elements_of_effective_performance_management?enrichId=rgreq-87c46ff8dc3c5147dc4e7be810bb3ba0-XXX&enrichSource=Y292ZXJQYWdlOzIzNzc3ODYyNDtBUzo5ODY1MDYxNzI4NjY2N0AxNDAwNTMxNTQ4OTg0&el=1_x_3&_esc=publicationCoverPdf

Mucha, M. J. (2011). Effective implementation of performance management where to start and what to do. Retrieved from https://www.gfoa.org/sites/default/files/GFR_FEB_11_55.pdf

Neely, A., Gregory, M., & Platts, K. (2005). Performance measurement system design: A literature review and research agenda. International journal of operations & production management, 25(12), 1228-1263.

PeopleFirm. (n.d.). Performance management creating the desired results. Retrieved from http://peoplefirm.com/resources/pdfs/PeopleFirm_Performance_Management_Creating_the_Desired_Results.pdf

Puckett, J. (2015). Benefits and importance of performance management. Retrieved from https://technologyadvice.com/blog/human-resources/importance-of-performance-management/

Qamar, A., & Asif, S. (2016). Performance management: A roadmap for developing implementing and evaluating performance management systems. South Asian Journal of Management, 23(2), 150.

Said, A.V. (2016). Implementing best HR practices makes FedEx a great place to work. Retrieved from https://www.thehrdigest.com/implementing-best-hr-practices-makes-fedex-great-place-work/

Walker, K. E., & Moore, K. A. (2011). Performance management and evaluation: What’s the difference? Child Trends Research-to-Results Brief.