Human Resourse Management:

Case study: UPS

When Jordan Colletta joined UPS in 1975, fresh out of school and newly married, he wasn't thinking about building a career. He just wanted some security. Now not only is he still a faithful UPS employee, but the former tracing clerk has come a long way he's vice president of the shipper's e-commerce sales team. His advancement in the company was steady, the result of careful planning through UPS's career- development programs. By putting resources into such programs and helping reps set goals and develop skills, businesses can allow employees to grow within their organization and reduce turnover rates in the process, as UPS has found: Its turnover rate among full-time managers is 4 percent. Developing salespeople starts with a clear mission. At UPS, employees meet annually with managers to identify their strengths and decide what skills they need for a new job within the company. "We lay the foundation for future development and map out immediate, midterm, and future goals," Colletta says. "When I was a tracing clerk, I told my supervisor that my goal was to become a district sales manager. I then became a driver, then a sales person, and in 1986 I reached my goal." Career development entails implementing training programs and Internet career centers that can help companies grow their staffs. Employees take courses in order to acquire the pedigree that will make them candidates for management positions. But learning isn't just in the classroom. Mentoring programs in which managers coach lower-Ievel employees are also valuable. "Mentors are especially important," Colletta says. "They help you understand the opportunities that are out there. They helped me see what I couldn't because I couldn't look that far ahead yet." Progress must be routinely monitored. Employee reviews and 360-degree reports are good ways to track improvement. So is a manager's involvement. "Have an open door policy to keep the communication lines open," he says. Finally, when it comes to encouraging participation in these programs, companies should highlight successes. Colletta announces promotions during weekly calls with UPS directors and immediately sends messages to his employees throughout the country. "It can't be about talk," Colletta says. "You can't say 'We have opportunities to develop you' and then look around and not see anyone getting ahead. You have to celebrate it.

1) What is a turnover rate and how is it measured?

2) How would you evaluate the above turnover rate of 4%?

3) What do you think are the main strengths of UPS's career development program?

4) What are the key outcomes that UPS wants to achieve?

5) What suggestions do you have for improving the above program?

6) What kind of leadership style does Jordan Coletta have? Name a style and give reasons for your decision.

7) Imagine the Chief Executive Officer (CEO) of UPS, Mrs. Carol B. Tom, notices by any chance the idea of Jordan Coletta to celebrate promotions. (Lets assume this was only done by and in the district of Jordan Coletta.) Corol Tom wants to institutionalise this idea for the whole organisation. Which Human Resources functions are affected by this decision? Name three and explain how they are affected.

8) Corol Tom (the CEO, check the previous question) advises the CHRO (Chief Human Resources Officer) Mr. Darrel Ford to design a training programme for UPS directors in order to learn how to professionally treat promotions within their teams. How would you consult Mr. Ford? An on-the-job or off-the-job training? Which kind exactly and why?

9) What advantages does the behaviour approach in leadership theories have over the trait approach? Where are the differences?

10) Give one example for each attribute of KSAOs (automobile) engineers need in your opinion for a good performance in their job?

11) State two disadvantages of horizontal job rotation for each: the employee perspective and the company perspective?

12) Does job rotation have a positive or negative influence on the job characteristic models? Name and describe briefly each job characteristic and discuss how it is influenced by job rotation.

13) Name three advantages of structured interviews over unstructured interviews.

14) Draw and explain the leadership framework (Nerdinger 2012)?