Describe FedEx’s corporate philosophy and explain how FedEx’s systems fit in the context of its corporate philosophy.
FedEx’s corporate philosophy is:
"Customer satisfaction begins with employee satisfaction. Putting people first in every action, every planning decision, every business decision requires a tremendous commitment from every manager and every employee in the company."
Or in short, "People-Service-Profit": Satisfied people provide good service which generates profit.
This philosophy advocates that the primary factor for ensuring customer satisfaction is the commitment of all the employees; and the primary factor for ensuring employee commitment is their job satisfaction. Satisfied employees will commit to their jobs and hence are more willing to "choose to exert their best effort" in satisfying customers, even if that requires them to go extra miles to get the job done well.
A number of FedEx systems have contributed to facilitating the entire work force in practicing the corporate philosophy:
1) Quality Action Teams (QAT)
These teams are setup to address any issues or opportunities identified by the employees. They use a problem solving process called FADE framework to make sure problems are systematically handled. They do not only act on big problems, but also aim to create small and continuous improvements. Such practice allows insights from employees to be followed and hence helping them to contribute in customer satisfaction.
2) Service Quality Indicator (SQI)
FedEx proactively evaluate their performance by monitoring the SQI of ALL of the packages and communicates the findings with all employees. So that employees are kept informed on how well customers are satisfied and therefore can react to improve accordingly.
3) Customer Satisfaction Surveys
FedEx perform generalized and targeted customer satisfaction studies periodically to collect customer feedbacks. The information gathered can help...