FedEx High Performance Work System: Employee Empowerment

Introduction: What Is a High Performance Work System?

A high performance work system (HPWS) is an organizational model in which every element — people, technology, and organizational structure — is highly integrated, fitting together as a smoothly functioning whole. Each component reinforces the others, enabling the organization to operate with exceptional efficiency and responsiveness. One company that has successfully fostered a high performance work system is FedEx. The assets of the company are its fleet of vehicles, its network of stations, and the personnel who run both.

The FedEx business model is essentially a series of hub-and-spoke networks. While the tasks are highly routinized, they are performed around the clock: every day, a plane leaves a location filled with parcels, lands at a major depot, and the packages are sorted and loaded onto another aircraft. The fact that a package remains in the system for only 12 to 24 hours means there must be a high degree of interconnectedness. On any given day, a package from Point A will be destined for Point B, and those two points could be anywhere in the world. The company must be so well integrated that it can handle with ease any of the millions of permutations of pickup and delivery points in its system.

FedEx as an HPWS: Integration Across the Network

Beyond its core logistics operation, all other aspects of the business must be integrated with the main delivery system. The customer service infrastructure, retail locations, and support functions all need to be integrated in a manner that provides customers with consistent points of contact. A customer may deal with a sales representative in one city about an issue occurring in another city, and the company must be able to respond quickly to ensure the problem is resolved.

This level of systems integration is what distinguishes a true high performance work system from a conventional organization. Rather than operating as a collection of siloed departments, FedEx functions as an interdependent whole in which a breakdown in any single component can affect the entire network.

Employee Empowerment at FedEx

One of the most important elements in a high performance work system is a higher degree of employee empowerment. Employees are better trained and are given a meaningful degree of autonomy in their work. At FedEx, the routine nature of the work means that employees do not always have wide discretion — it is relatively easy for managers to predict the daily course of operations. However, there are significant instances of autonomy: couriers create their own delivery routes, and sales and service personnel are free to go the extra mile for customers. Ultimately, all employees are empowered to solve customer problems as they arise.

The autonomy employees have to resolve problems is particularly important for improving employee attitudes. Combined with a stock-sharing plan, this creates an atmosphere in which employees feel as though they are contributing to a successful, cohesive system (Harley, 2002).

Conclusion

A high performance work system demands that every element of an organization — its people, technology, and structure — function as a seamlessly integrated whole. FedEx demonstrates this model through its tightly coordinated logistics network, its empowered workforce, and its customer-centered service infrastructure. For individuals and HR practitioners alike, the key contributions involve continuous personal development and a deliberate effort to hire and retain employees with strong adaptive capability, ensuring the system remains resilient and responsive over time.

References

Harley, B. (2002). Journal of Industrial Relations, 44(3), 418–434.

Textbook, Chapter 16.

Wei, L., & Lau, C. (2010). High performance work systems and performance: The role of adaptive capability. Human Relations.