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Fredrick SmithThe founder, Chairman, President and CEO of FedEx.
FORBES
World’s 50 Greatest Leaders
Chief Executive Magazines’s 2004
CEO of the Year
- Founded Federal Express- Integrated air-ground system
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The Fed-ex Mission
Superior financial returns
Customer needs
Mutual rewards
Mission Statement
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Team concept
Way of life
better organizational performance
Synergistic benefits
Improved qualityImproved customer
satisfactionImproved efficiency
Improved employee satisfaction
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Groups vs Teams
Groups Teamsindividual self interest achieving team goals and interests
individual work and abilities Sense of shared mission
Individual responsibilities Collective responsibility
individual oriented Focus on sharing information, insights and perspectives
Hierarchical leadership style Participative/empowerment-oriented leadership style
Inequality between members Equality between members
What's in it for me What's in it for the team
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Team Approach
Implementation of team approach within business units
• Empowerment of teams
• Transferring of leadership roles to team members
• Teams are charged with improving productivity and customer satisfaction
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High Team Standards
• Standard of commitment to quality service and customer satisfaction
• “Golden Package” standard
• Every package is critical and must be delivered on time
• Onus on team with “golden package” to deliver NO MATTER WHAT HAPPENS
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Reinforcement of Standards
• Monthly Circle of Excellence award Service
• Recognition of group performance• Reinforcement of high team standards
expected• Encourages innovative thinking and
better work performance
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Organisational Goals
• People Importance of employee satisfaction and empowerment
• ServiceQuality service and customer satisfaction
• ProfitCorporate profit
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Achievement of Goals
• People - Employee satisfaction- High team standards give greater responsibility to team members- Reaffirmation of team performance
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Achievement of Goals
• Service - High service standard and customer satisfaction- “Golden Package” standard ensures that customers’ delivery orders are met- Empowerment of teams led to improvement of organisation - E.g. “Superteams” cutting service glitches and solving billing problems- Organisational improvements led to better provision for customer satisfaction
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Achievement of Goals
• Profit
- High team standards helped cut organisational costs
- Better customer service resulted in greater corporate profit
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Summary of Q1
• Fred Smith organised FedEx into teams • Implemented team approach• Set high team standards, embodied by “golden
package”• Achieved organisational goals of People-Service-
Profit- Employee satisfaction- Customer satisfaction and improvement in organisational performance- Generation of greater corporate profits
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What motivated the employees of Fedex to remain highly engaged in their teams?
Characteristics of Effective Teams:1. A highly publicized team charter and team norms2. Widely shared goals and objectives3. Strong team cohesion and high task interdependence4. A diversified team mix5. Clearly defined roles and responsibilities 6. Positive interpersonal relationships
7. Clearly stated standard operating procedures8. Trust and conflict management abilities9. Effective interpersonal communication skills10. Strong top management support
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Out of the 10 characteristics of effective teams, 4 in particular stand out:
2. Widely shared goals and objectives
5. Clearly defined roles and responsibilities
6. Positive interpersonal relationships
10. Strong top management support
What motivated the employees of Fedex to remain highly engaged in their teams?
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Widely shared goals and objectives
- Fred Smith made sure that every employee at FedEx felt they could share in the success of the company.
- When team members all share the same goals and objectives and each member knows his or her role in achieving the team’s goal, it helps to build a sense of belonging to the team. This helps to form a sense of ownership in the goals and objectives of the team and thus greater accountability for team actions. Hence it allows employees to remain highly engaged and thus improve team performance.
What motivated the employees of Fedex to remain highly engaged in their teams?
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Widely shared goals and objectives
- Fred Smith made sure that every employee at FedEx felt they could share in the success of the company
- Sense of belonging formed -> Employees remain highly engaged -> Improves team performance
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What motivated the employees of Fedex to remain highly engaged in their teams?
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Clearly defined roles and responsibilities
- Employees have freedom and autonomy to set their own roles and responsibilities -> accountability for their actions
- Managers also know that they have an important role in contributing to the success of their teams. Managers perceive their roles as facilitators, guiding but not ordering their teams.
- As each employee and manager know the job that they are supposed to do, it helps them to remain highly engaged in their teams.
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What motivated the employees of Fedex to remain highly engaged in their teams?
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Positive interpersonal relationship
- Fred Smith made sure to cultivate a good relationship between managers and employees
- Positive interpersonal relationship ensures that there is mutual trust and respect between managers and employees. This develops a sense of belonging in the team.
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What motivated the employees of Fedex to remain highly engaged in their teams?
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Strong top management support
- Reward and recognition -> motivates employees + inspires competition
- Job-secure environment -> employees not afraid to make mistakes
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What motivated the employees of Fedex to remain highly engaged in their teams?
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Summary:
1) Widely shared goals and objectives
2) Clearly defined roles and responsibilities
3) Positive interpersonal relationships
4) Strong top management support
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What motivated the employees of Fedex to remain highly engaged in their teams?
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How would you classify Fedex’s employees in terms of types of followers?
Followership
The behaviour of followers that result from the leader-follower mutual influencing relationship.
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Effective Follower Conformist Follower
Alienated Follower Passive Follower
Pragmatic Follower
Leve
l of i
nvol
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ent
Critical ThinkingHigh
High
LowLow
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Effective Follower Conformist Follower
Alienated Follower Passive Follower
Pragmatic Follower
Leve
l of i
nvol
vem
ent
Critical ThinkingHigh
High
LowLow
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Effective Follower Conformist Follower
Alienated Follower Passive Follower
Pragmatic Follower
Leve
l of i
nvol
vem
ent
Critical ThinkingHigh
High
LowLow
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Effective Follower Conformist Follower
Alienated Follower Passive Follower
Pragmatic Follower
Leve
l of i
nvol
vem
ent
Critical ThinkingHigh
High
LowLow
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Effective Follower Conformist Follower
Alienated Follower Passive Follower
Pragmatic Follower
Leve
l of i
nvol
vem
ent
Critical ThinkingHigh
High
LowLow
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Alienated Follower: someone who is low on involvement yet is high on critical thinking
Conformist Follower: someone who is high on involvement but low on critical thinking
Passive Follower: someone who is neither high on critical thinking nor involvement
Effective Follower: Someone who is high on critical thinking and involvement
Pragmatic Follower: exhibits a little of all four styles depending on which style fits the prevailing situation, ambiguous image
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How would you classify Fedex’s employees in terms of types of followers?
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Effective Followers
Effective followers are people who are high on critical thinking and involvement.
Describe as being proactive and they function well in self managed teams.
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How would you classify Fedex’s employees in terms of types of followers?
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- Function well in self-managed teams - They are able to work well in self-managed teams with little direct
supervision from managers.
- Courage to initiate change - Responsibility to make the changes needed to improve productivity and
customer satisfaction
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How would you classify Fedex’s employees in terms of types of followers?
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Summary:
Effective Followers because…1) Function well in self-managed teams2) Have the courage to initiate change
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How would you classify Fedex’s employees in terms of types of followers?
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Self-Managed Teams (SMT)
Cross-functional
Independent
Share and rotate leadership responsibilities
Mutual responsibility
Freedom in decision making, managing, planning, scheduling and taking action
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SMT vs. Conventional teams
Characteristics: Self-Managed Teams Conventional Teams
• Leadership Within the team Outside the team
• Team member role
Interchangeable Fixed
• Accountability Team Individual
• Work effort Cohesive Divided
• Task design Flexible Fixed
• Skills Multi-skilled Specialized
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Fedex Self-managed teams
Quality action teams „superteams“Company wide
projects(Crossfunctional teams)
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Team-Centered Decision-Making Model
Team member empowerment
Requires skilled team leader
Psychologicaly safe environment
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Team-Centered Decision-Making Model
Pros•Improve decision quality•Decision shifted away from leaders, think more strategically•Spread responsibility •Higher member commitment
Cons•Longer decision making•Conflict of priorities•Compromises instead of optimal solutions
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Potential Pitfalls
Requirements
• Commitment• Effort• Organizational support
Social loafing
Groupthink
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Describe the roles management in FedEx play in building effective teams. Do
you think they would be effective without the
management’s involvement?
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This philosophy, PEOPLE, SERVICE, PROFIT (PSP) •Open communication
•Sense of trust among employees
•"People" programs and policies
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Management in FedEx
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Roles of management
Employees involvementSurvey-Feedback-ActionOpen Door program
Team FacilitatorsLeadership Evaluation and Awareness ProcessGuaranteed Fair Treatment Procedure
MotivatorRecognition and reward program - “bravo zulu" award.
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Optimal work conditionsJob-secure environment
Employee empowermentaccountability and responsibility
little supervision
Building effective teams
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Creativity at FedEx
FedEx Day
Foster creativityGive members an opportunity to create
Lift all the restrictions of work
Test out temporary or novel ideas
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Lack of Management’s Involvement
• undefined roles and responsibilities• weak top management support• missing facilitator, peacemaker
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