Organizational analysis: nature, size, and human resource challenges

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 from a series of class actions lawsuits based on their classification of drivers as independent contractors vs. 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 rate low. If this kind of approach is used, it will allow the firm to address the interests of employees and executives simultaneously. (Branum, 2009)

Determine how the organization should address current (or anticipated) human resource issues concerning expanding into international markets.

The best way that Fed Ex can address the current human resource issues (i.e. The misclassification of employees as independent contractors) is through creating a compensation structure which will benefit all stakeholders. The way that this can occur, is Fed Ex could receive a lower hourly rate from drivers and other areas where costs must come down. In exchange for this reduction, the company will offer them the common stock of the firm (that is equal to their old hourly rate). This will give Fed Ex lower costs and provide employees with added compensation to build for retirement.

Moreover, the firm could spin off the other divisions. The common stock in these areas could be offered to staff members for each segment (in association with the parent company). The combination of these factors will give employees better compensation packages. At the same time, Fed Ex can reduce the hourly rates in select areas. This will help each of the various divisions to post higher profit margins (resulting in even greater benefits for employees).

Make recommendations concerning how the organization can leverage its human resources to come out on top in a highly competitive environment.