logging in or signing up What can brown do for you? UARK vikingfan Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 199 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: July 09, 2008 This Presentation is Public Favorites: 0 Presentation Description Presentation for Univ. of Ark. MBA program Comments Posting comment... Premium member Presentation Transcript UPS HUMANRESOURCE STRATEGY"WHAT CAN BROWN DO FOR YOU?" : UPS HUMANRESOURCE STRATEGY"WHAT CAN BROWN DO FOR YOU?" MBAD 521V GROUP PROJECT : GROUP #4 Keith Solsvig, Carl Thomas, Joshua McCullough, Brandon Barr, Mike Shifferd UPS BACKGROUND : UPS BACKGROUND Established in 1907 in Seattle, WA by James Casey Over the years grown to a Fortune 50 company 2007 gross revenue = $49.7 billion Employs 425,300 in over 200 countries Delivers over 15.7 million packages per day … that’s what makes UPS the largest package delivery company in the world today! UPS COMPETITIVE STRATEGIES : UPS COMPETITIVE STRATEGIES Enable global commerce by: Offering the largest global reach Leading edge technology Ease and flexibility Environmental sustainability Building customer relationships Brand equity Distinctive culture Financial strength HUMAN CAPITAL CHARACTERISTICS : HUMAN CAPITAL CHARACTERISTICS It’s all about the Drivers Reputation Ambassadors Customer Service Efficiency High degree of Knowledge, Skills and Abilities Highly Educated Well-trained Efficient Procedural-based Long-Term Committed Employees Highly Diversified People UPS Culture and Sense of Community PEOPLE MANAGEMENT STRATEGY : PEOPLE MANAGEMENT STRATEGY Company Culture is Critical Selective recruiting Long-term focus Policy driven approach High Pay/Good Benefits Strict adherence to standardized processes Rely on “Human engineering” UPS personnel training involves lessons learned from its 3,000 industrial engineers to ensure success. PEOPLE MANAGEMENT STRATEGY : PEOPLE MANAGEMENT STRATEGY Focus on the Driver Drivers known as “DSP”, the Driver Service Provider Most senior managers of the company have at one time been a driver, including the CEO. DSP efficiency improves speed, and speed equals profits. “340 methods” outlined in a detailed manual that are taught to new DSP candidates in a $34 million dollar training center in Landover, Maryland Earn and Learn program People Management Strategy : People Management Strategy Drivers (DSP) are the strategic core that are supported by efficient execution of: Selection – hiring from within and uses the part-time program to find the best employees Start as package handlers to get put on a waiting list that could take 4 to 12 years Compensation – highest paid and best benefits within the industry Drivers earn over $80K/yr with a great benefits package Career development – management positions require driver experience Jim Winestock, UPS’s Sr. VP of U.S. Operations, started as a part-time loader in 1969 People Management Strategy : People Management Strategy Drivers (DSP) are the strategic core that are supported by: Performance feedback – daily evaluation on execution of route and bi-annual customer satisfaction surveys All routes have been timed and the DIAD downloads all information to compare against the standard Training – spend over $300M/yr in training with safety being a key focus 1.3 million hours of personal and vehicle safety training every year Systems – invests more than $1B/yr on technology, more than it spends on delivery trucks “Technology, training and great customer service truly go hand-in-hand” Jordan Colletta, VP, Customer Technology Marketing PEOPLE MANAGEMENT RESULTS : PEOPLE MANAGEMENT RESULTS HRM Success: Entire System of management practices supports the company culture, core employees, and key strategies. PEOPLE MANAGEMENT RESULTSHRM Success: Entire System of Practices : PEOPLE MANAGEMENT RESULTSHRM Success: Entire System of Practices Employment Security Average tenure for drivers 16 years Average tenure for managers 15.3 years Average tenure for execs 32 years 1.8% driver turnover Selectivity in Recruiting Part-time positions first Prefer college students High Wages/Benefits Higher than average pay Full benefits Incentive Pay/Employee Ownership Stock buy-in program Training and Development Industry Leader Contributes to cross-training/ cross-utilization Promotion from Within 55% of full-time drivers were once part-time employees 85% of full-time management promoted from non-management 56% of vice presidents started in non-management positions 8 of the 12 members of Management Committee started in non-management positions Symbolic Egalitarianism PEOPLE MANAGEMENT RESULTS : Business Success Domestic Small Package Delivery Leader Global Growth Supply Chain Management Freight International Exports Growth 10.4%* International Operations Profit Up 7.1%* Operating Margin = 17.8%* *2007 Annual Report PEOPLE MANAGEMENT RESULTS PEOPLE MANAGEMENT RESULTS : PEOPLE MANAGEMENT RESULTS Resource-Based View (RBV) Valuable Rare Inimitable UPS Culture HRM System Competitive Advantage PEOPLE MANAGEMENT RESULTS : World’s Most Admired Companies* *Fortune Magazine, March 17, 2008 PEOPLE MANAGEMENT RESULTS PEOPLE MANAGEMENT RESULTS : 2008 Delivery Industry Ranking* *Fortune Magazine, March 17, 2008 PEOPLE MANAGEMENT RESULTS PEOPLE MANAGEMENT RESULTSPeople Management Rank - All Industries : *Fortune Magazine, March 17, 2008 PEOPLE MANAGEMENT RESULTSPeople Management Rank - All Industries PEOPLE MANAGEMENT RESULTSAwards for HR practices : PEOPLE MANAGEMENT RESULTSAwards for HR practices Business Week’s Top 10 Customer Service Champs and Top 25 “client pleasing brands” Best Part-Time Jobs in America - Your Money magazine Ron Brown Award For Corporate Leadership from the U.S. Department of Commerce for its efforts in welfare-to-work 8th best benefits package – MONEY magazine Gold Communicator Award for highway safety for educating parents and novice drivers by American Association of Motor Vehicle Administrators PEOPLE MANAGEMENT RECOMMENDATIONS : PEOPLE MANAGEMENT RECOMMENDATIONS Key UPS People Management Issues: Training of International Drivers Attracting Top IT Talent Hiring Practices can Lead to a Homogenous Workforce PEOPLE MANAGEMENT RECOMMENDATIONS : PEOPLE MANAGEMENT RECOMMENDATIONS Training of International Drivers: Key Obstacles in Asia and Europe Foreign Cultures Replicate their $34 Million Dollar Facility in Asia and Europe Still focus on core 340 Methods, but curtailed towards local culture Local foreign drivers input in development of training PEOPLE MANAGEMENT RECOMMENDATIONS : PEOPLE MANAGEMENT RECOMMENDATIONS Attracting Top IT Talent: Attracting IT talent is highly competitive Having to be a driver could deter top talent Alternative Career Paths for IT Ride as helper 1 week a month for 6 months Allows for learning of DSP position without having to actually perform role. Gives IT a better understanding of the UPS System. PEOPLE MANAGEMENT RECOMMENDATIONS : PEOPLE MANAGEMENT RECOMMENDATIONS Hiring Practice can Lead to a Homogenous Work Force: All recruiting is directly from part-time program Allows UPS to find people who fit their culture Work Force can lose it’s diversity No one to bring in fresh ideas No one to question procedures that may not make sense anymore. PEOPLE MANAGEMENT STRATEGY : PEOPLE MANAGEMENT STRATEGY International Challenges Germany, UPS faced significant challenges finding good drivers and brown uniforms were not received well. Since so much of their leadership comes up through the ranks, their initial foray into Germany lacked leaders with both experience and an understanding of the local nuisances essential for success. Asia. The Asian workforce clashed with the work ethic essential to their success in the U.S. For example, in Singapore, there is no overtime. Management struggled to get drivers to work 12 to 13 hours delivering packages. HUMAN CAPITAL CHARACTERISTICS : HUMAN CAPITAL CHARACTERISTICS Knowledge based employment Human Capital is unique – high strategic value Commitment Based HR Management Focused Training Development: equip people to thrive in a structured environment Customers view UPS drivers as the number one competitive advantage Indoctrination of established procedures Diversity is essential to be a global leader Selection of the right people Balance tension between efficiency and customer service. Highly Educated PEOPLE MANAGEMENT STRATEGYHRM Success: Entire System of Practices : PEOPLE MANAGEMENT STRATEGYHRM Success: Entire System of Practices Employment Security Maintains efficiency in workforce Reduced training overhead Less recruitment Lower employee turnover Provides better customer service Selectivity in Recruiting Higher educated workforce Lower turnover Insures the right fit Slide 25: High Wages/Benefits Attract and keep higher performing employees Minimizes turnover Motivates employees Incentive Pay/Employee Ownership Alignment with company goals Vested interest in company success PEOPLE MANAGEMENT STRATEGYHRM Success: Entire System of Practices PEOPLE MANAGEMENT STRATEGYHRM Success: Entire System of Practices : PEOPLE MANAGEMENT STRATEGYHRM Success: Entire System of Practices Training and Development Improves efficiency and productivity Contributes to cross-training/ cross-utilization Safety for employees and assets Provides for better customer service Promotion from Within Encourages hard work Loyalty to the company Improves Decision Making Symbolic Egalitarianism Reinforces the culture You do not have the permission to view this presentation. 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What can brown do for you? UARK vikingfan Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 199 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: July 09, 2008 This Presentation is Public Favorites: 0 Presentation Description Presentation for Univ. of Ark. MBA program Comments Posting comment... Premium member Presentation Transcript UPS HUMANRESOURCE STRATEGY"WHAT CAN BROWN DO FOR YOU?" : UPS HUMANRESOURCE STRATEGY"WHAT CAN BROWN DO FOR YOU?" MBAD 521V GROUP PROJECT : GROUP #4 Keith Solsvig, Carl Thomas, Joshua McCullough, Brandon Barr, Mike Shifferd UPS BACKGROUND : UPS BACKGROUND Established in 1907 in Seattle, WA by James Casey Over the years grown to a Fortune 50 company 2007 gross revenue = $49.7 billion Employs 425,300 in over 200 countries Delivers over 15.7 million packages per day … that’s what makes UPS the largest package delivery company in the world today! UPS COMPETITIVE STRATEGIES : UPS COMPETITIVE STRATEGIES Enable global commerce by: Offering the largest global reach Leading edge technology Ease and flexibility Environmental sustainability Building customer relationships Brand equity Distinctive culture Financial strength HUMAN CAPITAL CHARACTERISTICS : HUMAN CAPITAL CHARACTERISTICS It’s all about the Drivers Reputation Ambassadors Customer Service Efficiency High degree of Knowledge, Skills and Abilities Highly Educated Well-trained Efficient Procedural-based Long-Term Committed Employees Highly Diversified People UPS Culture and Sense of Community PEOPLE MANAGEMENT STRATEGY : PEOPLE MANAGEMENT STRATEGY Company Culture is Critical Selective recruiting Long-term focus Policy driven approach High Pay/Good Benefits Strict adherence to standardized processes Rely on “Human engineering” UPS personnel training involves lessons learned from its 3,000 industrial engineers to ensure success. PEOPLE MANAGEMENT STRATEGY : PEOPLE MANAGEMENT STRATEGY Focus on the Driver Drivers known as “DSP”, the Driver Service Provider Most senior managers of the company have at one time been a driver, including the CEO. DSP efficiency improves speed, and speed equals profits. “340 methods” outlined in a detailed manual that are taught to new DSP candidates in a $34 million dollar training center in Landover, Maryland Earn and Learn program People Management Strategy : People Management Strategy Drivers (DSP) are the strategic core that are supported by efficient execution of: Selection – hiring from within and uses the part-time program to find the best employees Start as package handlers to get put on a waiting list that could take 4 to 12 years Compensation – highest paid and best benefits within the industry Drivers earn over $80K/yr with a great benefits package Career development – management positions require driver experience Jim Winestock, UPS’s Sr. VP of U.S. Operations, started as a part-time loader in 1969 People Management Strategy : People Management Strategy Drivers (DSP) are the strategic core that are supported by: Performance feedback – daily evaluation on execution of route and bi-annual customer satisfaction surveys All routes have been timed and the DIAD downloads all information to compare against the standard Training – spend over $300M/yr in training with safety being a key focus 1.3 million hours of personal and vehicle safety training every year Systems – invests more than $1B/yr on technology, more than it spends on delivery trucks “Technology, training and great customer service truly go hand-in-hand” Jordan Colletta, VP, Customer Technology Marketing PEOPLE MANAGEMENT RESULTS : PEOPLE MANAGEMENT RESULTS HRM Success: Entire System of management practices supports the company culture, core employees, and key strategies. PEOPLE MANAGEMENT RESULTSHRM Success: Entire System of Practices : PEOPLE MANAGEMENT RESULTSHRM Success: Entire System of Practices Employment Security Average tenure for drivers 16 years Average tenure for managers 15.3 years Average tenure for execs 32 years 1.8% driver turnover Selectivity in Recruiting Part-time positions first Prefer college students High Wages/Benefits Higher than average pay Full benefits Incentive Pay/Employee Ownership Stock buy-in program Training and Development Industry Leader Contributes to cross-training/ cross-utilization Promotion from Within 55% of full-time drivers were once part-time employees 85% of full-time management promoted from non-management 56% of vice presidents started in non-management positions 8 of the 12 members of Management Committee started in non-management positions Symbolic Egalitarianism PEOPLE MANAGEMENT RESULTS : Business Success Domestic Small Package Delivery Leader Global Growth Supply Chain Management Freight International Exports Growth 10.4%* International Operations Profit Up 7.1%* Operating Margin = 17.8%* *2007 Annual Report PEOPLE MANAGEMENT RESULTS PEOPLE MANAGEMENT RESULTS : PEOPLE MANAGEMENT RESULTS Resource-Based View (RBV) Valuable Rare Inimitable UPS Culture HRM System Competitive Advantage PEOPLE MANAGEMENT RESULTS : World’s Most Admired Companies* *Fortune Magazine, March 17, 2008 PEOPLE MANAGEMENT RESULTS PEOPLE MANAGEMENT RESULTS : 2008 Delivery Industry Ranking* *Fortune Magazine, March 17, 2008 PEOPLE MANAGEMENT RESULTS PEOPLE MANAGEMENT RESULTSPeople Management Rank - All Industries : *Fortune Magazine, March 17, 2008 PEOPLE MANAGEMENT RESULTSPeople Management Rank - All Industries PEOPLE MANAGEMENT RESULTSAwards for HR practices : PEOPLE MANAGEMENT RESULTSAwards for HR practices Business Week’s Top 10 Customer Service Champs and Top 25 “client pleasing brands” Best Part-Time Jobs in America - Your Money magazine Ron Brown Award For Corporate Leadership from the U.S. Department of Commerce for its efforts in welfare-to-work 8th best benefits package – MONEY magazine Gold Communicator Award for highway safety for educating parents and novice drivers by American Association of Motor Vehicle Administrators PEOPLE MANAGEMENT RECOMMENDATIONS : PEOPLE MANAGEMENT RECOMMENDATIONS Key UPS People Management Issues: Training of International Drivers Attracting Top IT Talent Hiring Practices can Lead to a Homogenous Workforce PEOPLE MANAGEMENT RECOMMENDATIONS : PEOPLE MANAGEMENT RECOMMENDATIONS Training of International Drivers: Key Obstacles in Asia and Europe Foreign Cultures Replicate their $34 Million Dollar Facility in Asia and Europe Still focus on core 340 Methods, but curtailed towards local culture Local foreign drivers input in development of training PEOPLE MANAGEMENT RECOMMENDATIONS : PEOPLE MANAGEMENT RECOMMENDATIONS Attracting Top IT Talent: Attracting IT talent is highly competitive Having to be a driver could deter top talent Alternative Career Paths for IT Ride as helper 1 week a month for 6 months Allows for learning of DSP position without having to actually perform role. Gives IT a better understanding of the UPS System. PEOPLE MANAGEMENT RECOMMENDATIONS : PEOPLE MANAGEMENT RECOMMENDATIONS Hiring Practice can Lead to a Homogenous Work Force: All recruiting is directly from part-time program Allows UPS to find people who fit their culture Work Force can lose it’s diversity No one to bring in fresh ideas No one to question procedures that may not make sense anymore. PEOPLE MANAGEMENT STRATEGY : PEOPLE MANAGEMENT STRATEGY International Challenges Germany, UPS faced significant challenges finding good drivers and brown uniforms were not received well. Since so much of their leadership comes up through the ranks, their initial foray into Germany lacked leaders with both experience and an understanding of the local nuisances essential for success. Asia. The Asian workforce clashed with the work ethic essential to their success in the U.S. For example, in Singapore, there is no overtime. Management struggled to get drivers to work 12 to 13 hours delivering packages. HUMAN CAPITAL CHARACTERISTICS : HUMAN CAPITAL CHARACTERISTICS Knowledge based employment Human Capital is unique – high strategic value Commitment Based HR Management Focused Training Development: equip people to thrive in a structured environment Customers view UPS drivers as the number one competitive advantage Indoctrination of established procedures Diversity is essential to be a global leader Selection of the right people Balance tension between efficiency and customer service. Highly Educated PEOPLE MANAGEMENT STRATEGYHRM Success: Entire System of Practices : PEOPLE MANAGEMENT STRATEGYHRM Success: Entire System of Practices Employment Security Maintains efficiency in workforce Reduced training overhead Less recruitment Lower employee turnover Provides better customer service Selectivity in Recruiting Higher educated workforce Lower turnover Insures the right fit Slide 25: High Wages/Benefits Attract and keep higher performing employees Minimizes turnover Motivates employees Incentive Pay/Employee Ownership Alignment with company goals Vested interest in company success PEOPLE MANAGEMENT STRATEGYHRM Success: Entire System of Practices PEOPLE MANAGEMENT STRATEGYHRM Success: Entire System of Practices : PEOPLE MANAGEMENT STRATEGYHRM Success: Entire System of Practices Training and Development Improves efficiency and productivity Contributes to cross-training/ cross-utilization Safety for employees and assets Provides for better customer service Promotion from Within Encourages hard work Loyalty to the company Improves Decision Making Symbolic Egalitarianism Reinforces the culture