One of the first steps in the change management process is to carry out a diagnosis of the situation requiring change. This entails examining the causes, context, and rationale for the change (Russell & Russell, 2006). Proper change diagnosis ensures successful change planning and implementation. Though change may occur at different levels, including strategic, functional, and process, attention in this paper is paid to the human resource (HR) function. HR is one of the organisational functions commonly targeted for change. Increased competitive pressure, regulatory adjustments, changes in strategic orientation, as well as market and technological shifts often compel organisations to adjust their HR practices, policies, processes, and/or procedures. This paper describes, justifies, and evaluates a change in HR practice at FedEx, one of the largest courier delivery firms in the U.S. and internationally. The paper particularly identifies the HR area that requires change and the need for the change and assesses the organisation's readiness for change using relevant diagnostic tools.
Company Background
FedEx was founded in 1971 by Frederick W. Smith. Over the years, the company has grown to be one of the largest providers of air and ground courier delivery services in the U.S. and worldwide. In addition to courier services, the organisation provides freight forwarding, inventory logistics, and customs support services. With its headquarters in Memphis, Tennessee, U.S., the organisation has operations in the Americas, Europe, Asia Pacific, as well as Africa and Middle East. As of 2015, the firm's revenues surpassed $47 billion, with net income and assets exceeding $2 billion and $37 billion, respectively. The firm is traded on the New York Stock Exchange, an S&P 500 component, and employs more than 300,000 employees (FedEx, n.d.).
HR Practice Requiring Change
FedEx has severally been named as one of the best organisations to work for in the U.S. thanks to its innovative HR practices, particularly...
The firm enjoys admirable employee satisfaction and turnover rates. Nonetheless, there is still room for improvement. It is particularly important for the organisation to adopt a people analytics approach as far as its HR practice is concerned. Indeed, the significance of people analytics in today's era of big data cannot be overemphasised. As showcased by Google, it is imperative for modern organisations to make their HR decisions based on data -- from recruitment and selection to task allocation, workforce planning, retention, diversity management, performance management, as well as learning and development. That is what the people analytics approach is all about. Whereas FedEx has in the last one and a half decades or so increased its attention to data-driven HR practice, it is important for the organisation to fully adopt the people analytics approach.
Reasons for Change
Change management theory stipulates several reasons for organisational change. Nonetheless, three major reasons relate to efficiency, effectiveness, and performance (Russell & Russell, 2006). Efficiency is all about accomplishing a task or a desired outcome using the least amount of time, effort, energy, and resources. Wastage in HR processes is not an uncommon phenomenon. Often, organisations waste time, effort, and resources in performance appraisals, employee development, and other HR processes without a significant impact on overall goals and objectives. With more data-driven HR practice, FedEx would eliminate HR processes that do not add value to the organisation. Effectiveness is about producing a certain desired outcome. In most cases, organisations invest in HR processes, but they cannot actually substantiate the impact of those processes on the organisation's bottom line. A people analytics approach can help FedEx quantify the effectiveness of its HR processes.…
