United Parcel Service (UPS) Strategic Alignment Model
United Parcel Service (UPS) is one of the leading shipment and logistic company admired for its cargo and package delivery services around the globe. The company has remained as one of the top-package delivery service providers because of the diversity of its services to the public. The company has enjoyed high profits because of the good brand image that it has attained in its market. The good brand name has also enabled the company to maintain a high level of stability in its revenue and profit growth. This has been a remarkable achievement considering that the parcel and cargo industry are one of the most competitive industries in the United States.
The company’s headquarters is in Atlanta (Sandy Springs) Georgia, but it has spread its routes to different parts of the world. The diversity of the routes that the UPS Company uses have been beneficial in attracting many potential customers seeking to use its services. In addition, it has allowed the company to attract both individual and corporate customers into its business. This has been an advantage to the business: it has allowed the company to have a business through the different seasons leading to stability in raising its revenues.
UPS was founded in Seattle in August of 1907 as ‘American Messenger Company’. Two teenagers, Claude Ryan and Jim Casey, who aspired for more established the small messenger company. In addition, it is categorized as the largest private user on earth of cellular technology with driver’s handheld computers that make wireless calls amounting to a million each day. This has been a great advantage in the 21st century, when such services have experienced a high demand from the people. The high consumer confidence and popularity of this service has created a competitive edge with its competitors.
In terms of the nation’s daily gross domestic product, UPS handles about six percent. It has been rated as a $33.5 billion company with four hundred thousand employees and a delivery rate of over fourteen million daily packages to over seven million customers. This signifies its growth and market influence across its market making it a leading company locally. The company enjoys economies of scale because of its large presence and size in the market, leading to the high profit margins that the company raises annually. In addition, the ability of the company to manage the large pool of employee force has enabled it to have smooth work processes resulting in high quality service delivery.
All this success has been possible as indicated by their slogan, “What can Brown do for you,” which has given the corporation the ability to provide services to almost anyone, at any address in the globe. The company has done a great job in expanding into other parts of the world and allowing it to serve people regardless of their location. Annually, UPS transports more than three billion documents and parcels from one destination into the other across the nations. The presence of many packing centers and aircrafts have supported the company in reaching out into different destinations where documents are needed.
UPS serves more than two hundred territories and countries using their five hundred aircraft, two thousand five hundred package-sorting centers, and over one hundred and fifty vehicles in providing their services. The company has gone global taking great challenges in running its operations across different countries. UPS has been committed to extending its operations across the different destinations, allowing the company to be the best cargo and parcel carrier. This has also made an increased number of potential customers to have a high preference for its services. The diversity of its routes and packing centers has also allowed the company to attract many customers outside Europe and the United States. This shows UPS commitment is in serving the wider needs of the global marketplace (Boulton, 1999).
UPS business faces stiff competition from other large, medium, and small companies in the industry providing cargo transport. The high level of competition experienced by UPS has made it adopt some strategies aimed at sustaining its relevance in the market. The global parcel and cargo transport industry is among the top competitive industries globally. In fact, UPS has had to take on key moves to attract and keep the millions of customers who use its service to transport their documents and cargo from one destination to the other.
The corporation’s top competitors include United States Postal Service, RPS (Roadway Package System), FedEx (Federal Express), and DHL International. These are major players in the industry that the UPS shares its market. Other competitors of UPS include regional U.S. carriers like Lone Star Overnight, OnTrac, and Eastern Connection. In addition, other international operators competing with UPS include Purolator, Deutshe Post, India post, Canada Post, Royal Mail, and Japan Post among other regional carriers, air cargo handlers, and national postal services. These companies evidence the high level of competition that UPS experiences in its markets, and the need for UPS to take on strategic moves to maintain its leading position in the market (Selig, 2008).
The target of UPS is the global market of consumers and producers and at the same time makes a move to become the supply chain integrator of e-commerce choice. The products and services of UPS in logistics are state of the art and include using RFID and bar codes, consulting services, and high-speed package routing systems. Indeed, from the understanding that the target of UPS is the global market of consumers and producers: the company has invested in the state of the art logistics services. As technology keeps improving, UPS has not been left behind, but instead it has invested in new services like bar codes and high-speed package routing systems. This has made the company remain a company of choice in its market, for many customers have shown a preference for its services (Foss, Minbaeva, Reinholt, & Pedersen, 2009).
The commitment of UPS to become a leading global player in electronic commerce, logistics support, and package and information distribution is evident through their activities. Their broad range of package delivery options guarantees customers date and time-of-day delivery, detailed status tracking, and customs brokerage information for all packages delivered in a day (Seybold, 1999). United Parcel Service (UPS) is an example of a 3+ strategy. As a pioneer in providing high quality services to customers and its business, the company has managed to use the latest IT technology.
Its ability to leverage the latest IT technology has made the company improve its quality of service delivery in the areas of electronic commerce, logistics support, and package and information distribution. In addition, it has made the company remain relevant in its dominant markets like the United States where the technologically perceptive consumers seek services meeting their needs. Many customers seeking the company’s services to transport their documents and cargo desire to follow up with the movements of their items until they are delivered at their desired destination. This has been a success because of the company’s success in offering detailed status tracking, and customs brokerage information (Rapp, (N.d.).
The investment of UPS in IT and its development is of core competency since they are the main driving force because of its reliability and up-to-the-minute information. Reliability and up-to-the-minute information have been one of the critical needs of customers of UPS. Leaders at UPS have embraced the use of IT in conducting their operations. This has advanced the competitiveness of UPS in relation to their package delivery service, which is of a relatively higher quality as compared to other competitors. This benefits the competitive edge that UPS has worked hard to create from its competitors, resulting in the high market influence.
As a result, this has enabled UPS to venture in new businesses like e-Commerce, supply chain management, and logistical services. From the above analysis, UPS has a relentless focus on its customers, strategic use of IT, and top-notch quality of their products and services. The development the company’s IT systems into core competency levels and leverage are considered when venturing into new business avenues. Its success in building the e-Commerce, supply chain management, and logistical services have increased volumes of customers and markets that the company serves (Weill & Ross, 2013).
I.2 Distinctive Competencies
The slogan of the corporation has gone beyond a distinctive competency. Many people associate the company with its “Brown Trucks: and brown packages delivered by employees.” This has given the company a unique identity among other carriers in the market. In addition, the UPS deliveries are on time, making many people enjoy the time convenience, for many of the items have deadlines to arrive to their destination. The high level of accuracy applied by the employees during the delivery of the products and services are evidence of a competitive advantage that the company enjoys over its competitors.
The success of the company in relation to on time delivery is because of the availability of vehicles and airplanes that ensure that products are handed over to the owner before the due date. The company has acquired sufficient vehicles and airplanes that satisfy the demand for its services. This has ensured that the items to be delivered in different destinations are delivered on time boosting the levels of customer satisfaction in the business. This has acted as a major distinctive competitiveness for the company amidst the high competition that it faces from other players (Selig, 2008).
In addition, safe deliveries have made the company be recognized globally. The excellent reputation has enabled the company to acquire competitive advantage. Safety is a major factor in the transport industry that cannot be underestimated by the company. UPS has valued the need to ensure that the items that it transports are safe. The company is proud of its safe deliveries: the services have been designed in such a way that they guarantee maximum product safety. Safe delivery of items has benefit to the company by promoting the confidence of customers of the business (Rapp, (N.d.).
Management of information is also another distinctive competitiveness enjoyed by UPS. The company has greatly invested in new information technologies that allow customers to follow on their items on transit. The company has invested in key technologies that allow customers to track their cargo before it arrives at the designated destinations. Effective management of information has been an important resource in allowing a business win the confidence of its customers. It has been a resource to the company by making the company attract new through referrals.
In addition, the company has invested in proper management of information by displaying the necessary information on the company, and operations through its website. When it comes to accessing the company’s website, critical information concerning the whereabouts of the parcels to customers on a global level at a low cost is available. The website has captured detailed information on the flow of different items. The customers of the business can easily access the website, and capture critical information concerning the services that the company currently offers (Boulton, 1999).
With real-time package tracking of information beneficial to the consumer, customer, and business, UPS achieves this proactively by using the Web, e-mail, and Touch-Tone phone. The use of the real-time package tracking system has played a key role in winning the confidence of customers in the business. Most of the customers of UPS have found a real-time package tracking system useful in helping them follow up with the movement of their goods, and parcels. Most of the customers have used this system to track their items as it flows through the channels of transport without stress (Seybold, 1999).
Merchandise information, customers, and the goods are critical success factors considered by UPS. The business customers have easy access to ship packages, track shipments, clear customs, and proactively notify end customers. The business has invested on a number of services that attract the business customers without inconvenience. The business customers have a large pool of deals allowing the business to make good revenues in the different seasons of the year. The tracking system of items has also been an asset to business customers by allowing businesses follow up with the items in transit before they arrive at their destination (Foss, Minbaeva, Reinholt, & Pedersen, 2009).
The UPS’ streamline of end-to-end business for its customers’ clientele, and their customers are a distinctive competency that many companies must encourage. The ability of customers to check the status of their order on the seller’s Web is a competitive advantage associated with UPS. Indeed, the ability for customers to check on the status of their order on the seller’s Web has made the company attract more clients through referrals. This service has made many of the customers find the company the most transparent because it transports the parcels and items from one destination to the other (Selig, 2008).
Competitively priced, timely, and accurate services within the company are the key success factors. The secret behind UPS is its competitive price, timely delivery of items, and accuracy in making its transactions. UPS has tailored its services with competitive prices as contrasted with the prices of its main competitors like FedEx. The company has put up competitive prices for its services, attracting customers of different socioeconomic status to seek the different services. The competitive prices of the company have allowed the company to make business with both individual and corporate customers across the divide (Weill & Ross, 2013).
Moreover, UPS can provide low-cost access to information concerning their customer’s location and package contents. Furthermore, the customer has the liberty of changing the delivery direction that has become one of the powerful success factors for UPS because research conducted showed that very few companies have adopted this system of adjusting information. The company opened room for customers to change the delivery direction, an important factor that lacks in many other businesses. The introduction of this system worked well for the business by fostering the customer’s flexibility by making changes in the destination of the items in transit (Rapp, (N.d.).
The research and development for UPS has taken a different direction by looking into vital aspects ignored by many logistics and transportation companies. Through research and development, UPS has adopted innovative ways to run their activities. The company has highly valued research and development (R&D) as a critical component of its business. This has enabled the company to come out of the traditional norms of its packaging services. Instead, research and development has enabled the company to have a fresh look at its services, and finding new ways of meeting the needs of the customers (Selig, 2008).
Through research and development, UPS has enhanced its interaction with its customers whilst satisfying their needs. Through R&D, the company has understood its diverse markets, the diverse needs of customers in each market, and the best ways to meet the needs of the customers. A number of changes have been implemented after research has been conducted on the customer’s needs. For instance, through recommendations of research conducted on the needs of the customers, the service allows customers to change the direction of delivery of goods in transit was implemented. This makes evident the key role that research and development have played towards the growth of UPS.
Having this advantage, gives UPS a clear direction and oversight of the future outcomes of their work trends and thus, they have the ability to forecast and predict shortcomings. This has been able to save them from undergoing losses because of the research aspect conducted by the research and development department. This department has been able to develop products that meet the clients’ needs and preferences in a manner that is digital in nature. As such, they can contact their customers via the Internet. This has been an important aspect of UPS business, for the industry is very competitive, and customer has a big say in its success (Seybold, 1999).
Initially, UPS had low brand awareness, but it decided to take a more segmented approach by enhancing its recognition. Ultimately, the brand or reputation of UPS products and services should mean the same thing all round the globe. It is true that good branding reinforces strong vision, yet a strong vision is central to having a good brand. Advertising, internal communications, aggressive public relations, and customer communications all contributed to the articulation and the reinforcement of the company’s vision. The brown delivery trucks and UPS drivers have played a role in brand or reputation (Weill & Ross, 2013).
From the above explanation, the three key elements need to be associated with UPS success and includes service, globalism, and connectivity. For UPS, they have gone global because they work in over two hundred countries and territories and have been able to provide their customers with preferred standard service and delivery of package anywhere in the world. The company’s expansion into the global network has made the business win the hearts of customers from the different parts of the world. Over time, the company has gained much experience in the way business is conducted across the territories: it has established efficient networks that have built the business (Boulton, 1999).
Connectivity is also evident in UPS because they have both physical and virtual connection that has seen them gain the powerful formula of e-commerce. The investing heavily on advanced information and communications technology in UPS business development has been experienced. Furthermore, this corporation has become a vital part of the global commercial value chain. The infrastructure of information on UPS allows the company to fulfill its strategy of prevalence and user-friendly in the virtual world. Additionally, alliances forged under the umbrella of e-commerce include companies like AT&T, Pandesic, iCat, PeopleSoft, IBM, Open Market, Lotus, and Harbinger have made UPS’ shipping services be considered standard in software packages. They are used in catalogue creation and business-to-business shopping malls. The technology and logistics prowess of UPS all rely on the quality of service. Money spent on UPS systems of technology, operating systems, training, and development are directed towards better customer service delivery (Boulton, 1999).
I.3 Business Governance:
The company relationship between management, stockholders, and the board of directors considers inter-organizational planning because of the presence of business strategic planning. This elaborates their strong relationship geared towards organizational success. Planning is focused while decision-making centers on the realization of the company’s mission and goal. The management, stockholders, and board of directors of UPS work together: they have managed to reduce the risks affecting their business in terms of making sound decisions that affect the future operations of the company in a positive way. Having a strong and powerful relationship between the top-level management personnel is paramount to the growth of the business because all members work together in meeting organizational goals and objectives. Furthermore, the needs of the customers are fully considered because the members research and have vast experience on what their consumers expect of their business (Lau, & Ngo, 2004).
Government regulations imposed on logistics companies can be discriminatory or non-discriminatory for foreign suppliers in the service sector. For some economies, foreign logistics are prohibited for foreign logistic services and thus, are not able to provide their own services that are port-related like cargo handling, which makes it discriminatory in nature. On the other hand, non-discriminatory regulations apply to both providers (foreign and domestic), but still they can resist activity. For example, the act of restricting the hours of operation by limiting the providers of road transport is non-discriminatory (Seybold, 1999). The purpose of regulatory restriction is to be able to reduce the existing competition in a logistics service company and reduce efficiency of the market. In addition, government restrictions deal with market failures by helping companies to meet particular social objectives. Government regulations imposed by logistics service suppliers when it comes to entry and operations must be looked into because it affects the operations of the organization. Custom documentation filled at the border is burdensome to trade. This has made many people opt for other services that are not time consuming.
The partnerships of UPS with the domestic logistics companies, which have enabled it, penetrate the sector. UPS cooperation with Sinotrans and other alliances is also evident because they form a powerful bond. The alliances and partnerships of UPS give it a strong base when it comes to restructuring of the company and brand reputation is emphasized by most co-operations. The availability of having alliances with a logistics company is a vision for 2030 and needs to be implemented in order to ascertain the risks involved when forming alliances. With partnerships, the company can serve many clients within the shortest time possible because of the availability of resources and human power (Foss, Minbaeva, Reinholt, & Pedersen, 2009).
II.4 Administrative Structure:
The administrative structure of this company is decentralized (participatory) on processes and organizations within the company focus on customer-information management process, customer-relationship management process, package management process, product management process, and the business information and analysis process. In a decentralized organization, the process of assigning and transferring decision-making authority is ascribed to lower levels in the organization’s hierarchy. Therefore, decision-making is moved to lower levels or tiers in the organization like subsidiaries or departments and branches. This shows that ideas, information, and knowledge flow from the bottom to the top of the organization. In addition, the span of control for top managers is small relative to a centralized organization structure: few tiers are present because of autonomy in the lower ranks (Lau, & Ngo, 2004).
Delegation is the form of decentralization applied by UPS since decision-making has been transferred to a semi-autonomous organization accountable to the central organization, but that is not wholly controlled by it. The philosophy of UPS is of a bottom-up cultural, political, and learning dynamics. The process of decision-making is participative, democratic, and detailed. Concerning the organizational change, this emerges from organizational dynamics and interactions of the organizations with other companies. Execution of duties is emergent and evolutionary. The flexibility of the organization has made it able to adapt to minor issues and changes (Selig, 2008). Through the participation of employees in ideas and knowledge sharing, accountability is ascribed to all individuals of the organization. Therefore, a low risk for not-invented-here behavior is experienced in UPS. As such, employees are accountable for all their actions and decisions. The attributes key to a decentralized participatory management structure, which are integrated into the organization, workforce, and management include autonomy, trust, goal setting, and commitment (Roussel, 2011).
The company’s workflow activity is comprised in the table below where the first person to make an inquiry or order is the customer. Submission of the order can be done over the phone or submitted online, which is the most preferred method employed by many customers. Online technology has enabled many customers to reach their product provider without having to visit their physical location. The Internet has saved time and money for many consumers of the logistics companies that include UPS and thus, the majority of them operate on the Web (Seybold, 1999).
On the other hand, the company also uses the Internet and phones to submit the placed order for transaction purposes by paying through the credit card option. This method is enjoyed by many because money is not lost and can be tracked easily using the computer. Thereafter, the order placed is sent to the warehouse or sorting and packaging department to determine and arrange the necessary shipment. The last stage of this workflow is the shipping of the product by air, land, or water, which is carried out on a strict schedule that is being tracked by the customer.
Figure 1: Workflow diagram
According to Colombo and Delmastro (2008), HR practices refer to high levels of delegation of decisions, extensive vertical and lateral channels of communication, and high systems of reward. They are often linked to multiple indicators of performance among other practices that are deployed to foster high performance levels in an organization. HR has played a vital role in developing UPS Corporation. It has contributed in seeing to it that the employees hired to work for the company are competent and skillful. This looks into utilizing a management system of practice that gives employees information, latitude, skills, and motivation that result in an empowered workforce. According to Foss, Laursen, and Pedersen, HR practices involve knowledge, incentives like sharing of profit, incentives for sharing knowledge and individual incentives and responsibility delegation like team production. It also includes employee training that should be both internal and external, internal communication should be encouraged for instances by practices that relate to job rotation and sharing knowledge, and recruitment and retention that encompass internal promotion policies (2011).
They have achieved this by conducting interviews with new employees and assigning tests to them to be able to gauge their level of expertise in their line of duty. This task is engaging and requires the full attention of the managers. Therefore, the company motivates them and provides allowances and lunch during such excursions. The HR personnel need to have clear minds when conducting the interview. Team building activities are carried out prior to the day scheduled for the interview, which helps them have rejuvenated spirits and evaluate individuals in a manner that does not promote corruption (Lau, & Ngo, 2004).
This company has three components of aligned workforce, which are highly interrelated. UPS has the right types of people, as employees, with the knowledge and skills necessary to help the corporation achieve its goals. UPS has the right people in the right place at the right times, hence, effectively utilizing its people. This means that the company gets the most out of its employees’ skills and knowledge. In fact, the aligned workforce has enabled the corporation to develop and deliver high quality in terms of products, services, and solutions. In addition, they satisfy their customers by effectively marketing their products or services. This will guarantee high sales growth besides enabling it to make good profits and capture a large market share.
When it comes to selection practices, the company uses three different strategies, which encompass person-job fit, person-organization fit, and person-future fit. Person-job fit allows the company to match the applicant’s skills and knowledge to the requirements of the job opening. It focuses on the ability of the applicant to perform well before any training is done. Using a person-organization fit gives focus to individuals fit into the company’s culture or values and thus, hiring of people is in accordance to the capacity to work well with other employees of the company (Collins, Ericksen & Allen, 2005). Lastly, person-future fit focuses on the long-term potential of the applicant’s contribution. This goes to the extent of having the will to have open positions until a suitable and bright employee’s best for the position is found. For the UPS Company, the person-future fit strategy is applied because it is strong and relates positively to the workforce alignment (Foss, Laursen, & Pedersen, 2011).
The employment management strategies employed in this company are the formal processes and procedures and professional standards. The formal management systems employed by UPS has job descriptions, and duties for employees to enable them to identify their roles and responsibilities. Regular feedback of employees through a performance appraisal process is conducted regularly. This has enabled the company to have its duties and responsibilities performed in a timely manner. Professional standards are also another route that gives employees greater discretion deal that enables them monitor own performance. Furthermore, trust is evident among the managers because employees get the job done right without having direct oversight. These management strategies positively relate to workforce alignment (Roussel, 2011).
In terms of motivation, the company uses the family-like community where employees become motivated by the sense of responsibility to each other in the company. This has been achieved through the sponsorship of social events and outside activities that include team building, which helps employees know each other more. Company-wide meetings are also done regularly in order to share information concerning the company with their employees (Collins, Ericksen & Allen, 2005).
III.7 Technology Scope
In UPS, technology is relied on to keep prices competitive, maintain efficiency, and provide new customer services. Therefore, the corporation has been able to put technology in human hands by training their employees on how to use and understand the different software and packages used in the company. This helps to amplify human condition that has in turn created dramatic life-changing innovation. In this digital age, customers demand electronic flexibility and connectivity, which has enabled UPS to connect with customers in different ways. UPS connects through mainframe-to-mainframe communications, through a suite of secure electronic services deliver, online services of shipping and tracking, and by integrating the functionality of shipping and tracking into software packages of some of the leading e-commerce vendors. This technological investment has produced a street of loyalty to customers of UPS by creating a range of open, non-proprietary e-commerce services. The organization is aligned to meet the needs of customers by listening to them: since customers are assets to the company, they treat and value them accordingly (Roussel, 2011).
The company’s culture is an open and consensus-based where executives are more than willing to listen to employee ideas. The employees bring the ideas forward in both formal and informal ways. Furthermore, good ideas must come from their partners and customers. After listening to the ideas, the management commits itself in implementing the best ones (Lau, & Ngo, 2004).
III.8 Systemic Competencies:
Dynamic capabilities of organizations, put in a nutshell, is distinctive competence, architectural knowledge, organizational routine, core capability and rigidity, core competence, architectural competence, and combinative capability. The systems applied by the company are interrelated to the IT technology used and thus no conflicts will occur. Architectural knowledge is a competency that is available in this organization because many of the designs employed in the business environment of UPS are clearly laid put plans. This has given the organization the advantage of attracting more consumers through their core competency skills of their employees who receive training on a monthly basis to update them on the changes affecting their line of business (Seybold, 1999).
The core capability of meeting the delivery time of consumers is paramount in this company because they have identified themselves with trained personnel. The rigidity of the employees has seen them prosper in aspects of corrupt deals and thus, systematic competencies have gone a long way in ensuring that the organizational goals of the company are met (Roussel, 2011).
III.9 IT Governance:
IT governance is defined as specifying the framework of accountability and decision rights with the aim of encouraging desirable behavior when using IT. For example, the CIO does not need to sign every check or even authorize every payment in the organization (Weill & Ross, 2013). Rather, he has set up financial governance, who is the COO who makes the decisions and how. The COO oversees the investment portfolio of the organization and manages all the required risk exposures and cash flow. The work of the CIO is to track financial metric series in order to manage the financial assets of the organization only when problems arise when utilizing unforeseen opportunities. Multilevel and multi-functional participation is required for the success of IT governance. The UPS Company has major functional areas that include marketing and sales, supply chain management, research and development, and global financials among others (Selig, 2008).
The technological priorities of this company are to be able to embrace the new and advanced technologies that add value to consumers and the organization. The company has managed to utilize current and up-to-date technology that has helped in improving businesses processes carried out by the organization. Furthermore, the use of Touch phones for customers’ interaction with company personnel during the tracking process shows the advance and priorities undertaken by the company in meeting the needs of the customer through product and service delivery. In addition, the firm is looking into developing new technology that embraces the solar technology to be able to educate people on the importance of going green by protecting our environment that also comprises the business environment (Foss, Laursen, & Pedersen, 2011). This green technology will enable the organization to attract more and more people since they are considerate of their people’s future well-being. Through the creation of awareness, the public and employees of the company are able to access current information affecting the globe since the company is a global organization.
Policies and choices created by the company when it comes to creating a cohesive technology platform look into the compatibility of the policies to that of the consumer. Policies need to be friendly in order to attract more consumers by ensuring that ninety percent of set policies target the well-being of the consumers’ property and luggage. Having policies that are not flexible tend to chase the customer and gives competitors a chance to improve on their weak areas. Policies are set to enable organizations to run their operations in a smooth and effective manner whilst ensuring that the needs of the customers are met. Furthermore, having policies that are not in favor of the consumer is a chance given to the competitors and foreign investors to work on improving their weak areas through researching on other alternatives that mitigate the problem (Roussel, 2011).
A technology platform needs to be cohesive in terms of unity with other available packages and programs used by the organization. Conflicts should not arise when it comes to running a company. Therefore, cohesive platforms will reduce the number of errors and mistakes occurring in a given day. Bearing that many deliveries made in a day, the company must ensure that the platform developed embraces all departments without fail (Foss, Minbaeva, Reinholt, & Pedersen, 2009).
Various activities that the company practices are useful in maintaining and managing its IT infrastructure. They are helpful in attaining collaborative efforts that foster the promotion of organizational activities. Regular checks should be made to determine the work engagement of IT processes. This helps the experts determine the life duration of the technology. This is a good way of stabilizing the work program of every employee and company, which also helps in running the organization in a professional and appropriate manner. Managers of organizations need to integrate technology into organizational strategies. The employees must be privy of senior tactical and strategic plans for senior management because if not identified early enough, affects the business and smooth running of the computer. The strengths and weaknesses of the technologies in question and corporate-wide implications should be understood.
IV.12 Skills in IT
In the IT department, HR practices relate to the delegation of decisions, extensive vertical and lateral channels of communication, and high systems of reward. They are linked to multiple indicators of performance among other practices that are deployed within an organization to achieve high performance levels. The HR has played a vital role in the department by ensuring that employees hired to work for the company are competent and skilled. The management system of practice gives employees information, latitude, skills, and motivation that creates a workforce with a competitive advantage (Boulton, 1999).
The practices adopted include knowledge, incentives of sharing profit and knowledge, individual incentives, departmental delegation like team production, and departmental employee training. The practices also include internal communication encouraged during job rotation and sharing knowledge, and recruitment and retention including internal promotion policies. The department has achieved through the constant interviews conducted on new employees and assigning tests aimed at gauging their level of expertise within the department. This task is time-consuming and requires the total attention of the departmental manager. The department motivates employees by providing allowances and lunch during such excursions. In most cases, team-building activities are carried out prior to the day scheduled for the interview, which also act as a motivational factor (Foss, Laursen, & Pedersen, 2011).
This company has three components of aligned workforce, which are highly interrelated. The components include the right type of people who are in the right place at the right time, and doing the right things right. Therefore, the department has the right people as employees, with the knowledge and skills necessary to help the corporation achieve its goals. The IT department clearly matched the role of the employees with the time that any task is to be completed. Lastly, having employees always acting in ways that help the company to succeed is important. In essence, the departmental employees develop and deliver high quality in terms of products, and services, and solutions. Furthermore, they can develop and deliver new products, services, and solutions. In addition, they satisfy customers using effective marketing strategies. This will help the company achieve high sales and growth and operate under satisfactory profit levels by capture a large market share: this is the desired goal of the business (Roussel, 2011).
During employee selection, the department uses three different strategies like person-job fit, person-organization fit, and person-future fit. Person-job fit allows the company to match job applicant’s skills and knowledge to specified requirements of a job opening. It focuses on the ability of the applicant to perform well before any training is carried out. Using a person-organization fit gives focus to individuals fit into the company’s culture or values. The hiring of employees is done according to their capacity to work well with other employees of the company (Collins, Ericksen & Allen, 2005). Lastly, person-future fit is where the focus is on the long-term potential of the applicant’s contribution. This also includes the existence of open positions until a suitable and bright employee’s best for the position is found. For the department, the person-future fit strategy is applied because it guarantees effective workforce alignment.
The IT department has a number of professional standards that all employees have to follow. Through the formal management systems, the departmental job descriptions and duties enable employees to identify their roles and responsibilities. The existence of regular feedback mechanisms via appraisal processes and has enabled the department experience the beauty of effective employee performance. The professional standards also empower employees to monitor their performance. These management strategies positively relate to workforce alignment. This has been achieved through the sponsorship of social events and outside activities like team building, which helps employees know each other more. Departmental meetings are also done regularly in order to share information concerning progress with the other employees (Collins, Ericksen & Allen, 2005). Through team building, the workers of the company have been motivated to do much to build the business. The workers are highly motivated into taking new assignments and ensuring that items in transit arrive on time.
V Analysis of Where Your Company Should Be
My company should be at Level 4 with properly managed and improved processes. Governance is effective and reinforcing services bolsters the IT concept of the IT value center. The recommendation for this company is to be able to have an effective channel of communication that facilitates growth and expansion activities of UPS. The other recommendation is for the company to create awareness among other public committees that enable the organization be recognized globally. The brand reputation should be advocated in all business environments (Lau, & Ngo, 2004).
Bridging the existing gap requires knowledge and expertise of employees’ skills in meeting the needs of all their customers. Competition is an added advantage to the business because it leaves them feeling rejuvenated and challenged to meet other new products and people. Most of these recommendations lie upon the IT technology because many people around the globe use it. UPS being a multinational company is fundamental in ensuring that activities conducted are at par with the image of the company.
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