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Case study
Frederick W. SmithFedEx
1. Nguyen Dai Cuong
2. Le Thi Phuong Thao
3. Dang Thi Lien4. Nguyen Thi Thuy
5. Nguyen Thi Van
6. Mai Chan Hoang
7. Vu Thi Loan
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Outline1.Case summary
2.Answering main questions
3.Discussion
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1. Case summaryFrederick W. SmithFedEx
Foundation: 1971
Headquarter: Memphis, Tennessee, United States
Chairman, President, and CEO: Frederick W.Smith
38 years along being the market leader in a delivery industry
Operation sphere: 220 countries and territories; 672 aircrafts and
80,000 vehicles; 290,000team members to create over7.5 million
shipments per day.
FedEx has expanded, achieved a lot of importantoutcomes: Malcolm Baldrige National QualityAward (1990), ranked onFortunemagazines
industry lists.
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Restructuring by emphasizing the team approach to getting work done.
+ purpose: remainingdominant overnight delivery service,givingemployees
the flexibility and freedom environment, improvingproductivity and customersatisfaction.
+ Implementation:
Formed the Quality Action Team
Organizing super teamwith self-managing
Setting standards and reinforces their teams.
Golden packageidea: every package FedEx is critical and
must be delivery on time Encouraging innovative thinking by creating a job-secure
environment
Shifting from traditional leader-centeredto team-centered
leadershipapproach (leadership by doing, not by telling).
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FedEx has built the most seamless global air and ground
network in its industry, connecting more than 90% of the
worlds economic activity.
FedEx has become more open, flexible, team-based,
remaining lead positionin overnight package service.
Results
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2. Answering questions
Question 1What were the main issues
that FedEx faced?
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Companysgrowth
coordinate
the
activity
maintain
efficiency
manage
employees
meet
customersexpectation
s
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Solutions
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1. Strategic Business Units
Splitting the company in eight business units
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Strategic Business Units
Easily to control the efficiency
More flexible
Respond much better to the customerexpectations
A better managing of the employees.
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2. A team approach
a hierarchical structure v mi tn sang 2.
a team approach
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A team approach
Transferred the leadership roles
Teams are task oriented
golden package concept
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an increase in team accountability and
responsibility.
more productive
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Superteams
self managed
more innovative
speed and quality
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Organizing the company in business units improved both the quality of the
servicesprovided by FedEx but also the efficiency and profitability. Going
further organizing self managed teams allowed FedEx to boost its services
quality, efficiencyandprofitabilitytrough abetter usage of the employees
skills and creativity and by having themmotivatedby this organizational
model.
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Question 2
what is the effect of organizing people in
self-managed teams?
what is to be done in order to maintain
their level of engagement?
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the most important characteristic is the fact that
SMT have a higher decision making authority
team members are highly motivated because they
have a sense of belonging and ownership in ones
workand they feel accountable for the result of their
decision
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Another characteristic of SMT is that team members roles are interchangeable
The employees are much more motivated because through this role changesthey have the opportunity to do new tasks and avoid to be bored
In a SMT work effort is cohesivecompared with a normal team were it is
individual
All the team members are focused on thefinal team objective
This powerful motivational factor keeps the team members engaged
Quality Action Team, the super teams increase efficacy but also to keep all
employees involved and motivated
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Actions:
First action was to create a job-secure environment
Another method used to keep FedEx members highly engaged is
reward and recognitionoffered through the Circle of Excellence
award offered to the best FedEx station.
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Question 3
Describe the role FedEx managers play in facilitating
team effectiveness
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Self Managed Teams (SMT)
leadership is inside the team, not outside
the manager role is shifting from management to a facilitator role.
Manager role as a facilitor:
stimulate team members to take assume responsibilities and to take
charge for problem solving processes.
empower the teams by giving them the power to make changes
needed to improve productivity & customer satisfaction.
power transfer from managers to teams came with a responsibilities
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Result: improving team effectiveness
accountable for the results
motivation is improved due to this power and responsibilities transfer.
FedEx managers involved in the goal setting process:
set clear and attainable goals
using team members input and ideas (team membersssolutionto reach
the goal)
act on the best employees suggestions.
setting goals and finding solutions is mostly a team task.
coach and give feedback: focused on team activity rather than on
individual like in normal teams.
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3. Discussion
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