Organizational Behavior

Paper Summary:

In this article, the writer discusses that FedEx has a distinct organizational culture that has been instrumental in helping them become a worldwide business leader. The writer notes that the core of the company's motivation system is the PSP philosophy (People-Service-Profit) wherein they make their employees the highest priority, which in theory drives higher service levels and in turn greater profit. The writer points out that this culture has come under challenges in recent years, most notably with absorption of Kinko's into FedEx. The writer discusses that the unique culture at Kinko's has clashed badly with the established FedEx culture, providing a textbook case on the management of organizational change. The writer maintains that changing the culture at Kinko's has not only proven difficult but has also been an impediment to achieving the synergies for which the merger was originally sought. The writer concludes that FedEx is determined that the path to success flows through its culture, and continues to focus its practices today around the perpetuation and strengthening of that culture.

Outline:
Introduction
The Core of FedEx Culture
How FedEx Culture Works - Communication
How FedEx Culture Works - Human Resources Practices
How FedEx Culture Works - Organizational Structure
How FedEx Culture Does Not Work - Kinko's
Conclusion

From the Paper:

"Despite the challenges in integrating Kinko's into the corporate fold, FedEx remains an industry leader and the envy of business leaders. The culture facilitated their rapid ascent and continues to be a key component of their success. The culture is supported on many fronts. The human resources department views the maintenance of FedEx culture as their primary role. Internal corporate communication is almost entirely based on molding organizational behavior. The core components of the culture have driven FedEx to not only thrive, but to continually adapt to changes in their business environment, to the point where even slowdowns such as occurred in late 2001 do not cause concern."

Sample of Sources Used:

• Interview with Frederick W. Smith. May 23, 1998. Academy of Achievement Retrieved June 14, 2008 from http://www.achievement.org/autodoc/page/smi0int-1
• Deutsch, Claudia. (2007). Paper Jam at FedEx Kinko's. New York Times. Retrieved June 14, 2008 from http://www.nytimes.com/2007/05/05/business/05kinkos.html?_r=2&oref=slogin&oref=slogin
• Argenti, Paul A. & Forman, Janis. (2002) The Power of Corporate Communication. McGraw-Hill. New York. pp. 50-51
• Dengler, Charisse. (n.d.). The People's Voice: Shannon Brown, Senior VP of HR for FedEx Ground. Sellingcrossing. Retrieved June 15, 2008 from http://www.sellingcrossing.com/article/index.php?id=150016
• Kinney, Marla J. (1998). How Time Flies. Federal Express (Internal Publication). In possession of the author.

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