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Organizational Analysis
Describe the nature of the organization, its size, and any specific human resource challenges it faces.
Federal Express (Fed Ex) is involved in the transportation of materials between the different businesses, consumers and individuals. These services are provided using ecommerce solutions that allow customers to set up times for picking up packages and making deliveries. The combination of these factors has turned Fed Ex into a global transportation company. To deliver these services the firm is subdivided into four different categories to include: Fed Ex Express, Fed Ex Ground, Fed Ex Freight and Fed Ex Services. This makes the company one the largest logistics organizations in the world. The firm currently employs 222,300 employees around the globe. ("Fed Ex," 2012)
The biggest resource challenges that Fed Ex faces is creating some kind of vision and clarity about the future. At the same time, there is a focus on reducing costs and the impact that they will have on staff. This is because these kinds of reductions will more than likely result in some type of decrease in compensation, bonuses and other benefits. The combination of these factors has the ability to undermine productivity inside the organization. ("Time to Deliver," 2012)
Describe the major legal concerns of the organization and recommend how those concerns should be addressed.
The biggest issue that Fed Ex is facing is...
hourly employees. This helped the firm to reduce their costs and the total amounts of compensation. To place pressure on the company several employees sued Fed Ex and wanted to receive a ruling allowing them to form a class action lawsuit. This was denied by a panel of three federal judges in the U.S. Court of Appeals. (Branum, 2009)
However, another federal judge in Indiana ruled that employees can proceed with the lawsuit. Then, there are drivers in at least 20 different states that want to initiate similar kinds of lawsuits against the company. The combination of these factors is showing how Fed Ex is dealing with continuing claims against their employment practices. (Branum, 2009)
To address these issues, the company should settle any kind of outstanding claims with the drivers. Moreover, they should work with the union and other drivers to create a satisfactory pay scale to address specific needs of the firm. For example, the hourly rate could remain low for drivers. However, to make up for this low amount, the company will give employees common stock that is the equivalent of the rest of their pay at the higher hourly rate. (Branum, 2009)
This is shifting the burden onto the employee (as they will have to pay taxes on capital gains and dividends received). At the same time, this will keep the company's hourly…
References
Stickland, J. (2012). How the Googleplex Works. How Stuff Works. Retrieved from: http://computer.howstuffworks.com/googleplex3.htm
Fed Ex. (2012). Yahoo Finance. Retrieved from: http://finance.yahoo.com/q/pr?s=FDX+Profile
Time to Deliver. (2012). HRM Report. Retrieved from: http://www.hrmreport.com/article/Time-to-Deliver/
Branum, W. (2009). Fed Ex's Legal Problems. Colabrus. Retrieved from: http://www.collabrus.com/collabrus_blog/2009/07/30/FedExs-legal-problems-over-misclassified-workers-continues/
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