Federal Express Organization Structure M4 Research Report Organizational Structure: Federal Express This research paper will examine the organizational structure at the Federal Express Corporation. Federal Express employs over 90,000 people at more than 1,600 facilities globally. “FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. We offer integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand (FedEx). This research report will examine Federal Express organizational structure by answering the following 5 questions: 1. What type of organizational structure does this company have? 2. What are some of the forces that influence this company’s environmental uncertainty? 3. Describe how the company responds to the environment within which it operates. 4. Describe and analyze the key factors causing environment complexity. How might this environment complexity lead to organizational complexity? 5. What can the company do to have an effect on controlling its environment? 1. What type of organizational structure does this company have?
FedEx has a geographical organizational structure along with a centralized command structure. Major decisions come down from its Memphis headquarters and then get pushed out to regional managers for execution. FedEx organizational structure emphasizes centralized decision-making and relies on local managers to lead the employees. The organization is divided by divisions and then further divided by each region. Each region operates independently with its mission and strategy aligned with the overall goals of the company. There is a regional manager overseeing the entire operation and he or she reports to the main office.
The regional manager has complete responsibility for his specific region. FedEx’s operations are global and FedEx organizational structure allows the different divisions to operate independently to provide service and meet the needs of the customers. This independence is crucial to FedEx because the company has so many divisions spread out all over the world. 2. What are some of the forces that influence this company’s environmental uncertainty? Federal Express is a global organization. Obviously, with FedEx doing business all around the world, the environment is more complex and the more complex the environment, the greater the uncertainty. Environmental uncertainty pertains primarily to those sectors that an organization deals with on a regular, day-to-day basis (Draft, 2010, p. 225). ” Like allot of companies in today’s global economy, unpredictable energy prices pose a significant uncertainty. If fuels prices climb dramatically then this could have an adverse effect on FedEx operations. The increased cost in transportation security, insurance and threats of terrorism would add to FedEx environmental uncertainty. But what FedEx can control is to remain focused on the on-time delivery of packages.
To do this FedEx has a three step process of controlling, measuring and comparing to track the progress of the deliveries. At anytime during this three-step process, corrective measures can be applied to correct inefficiencies. 3. Describe how the company responds to the environment within which it operates. Many companies like Federal Express are able to better respond to their environment by adopting self-directed teams and horizontal structures that enhance communication and collaboration within the organization. This structure is more responsive to change. “Change, rather than stability, is the norm today.
Whereas change once occurred incrementally and infrequently, today it is dramatic and constant. A key element of the success of companies like FedEx, Southwest Airlines, Apple and Toyota has been their passion for creating change. On the other hand, U. S. auto companies are in dire straits largely because they have been slow to change (Draft, 2010, p. 370). ” 4. Describe and analyze the key factors causing environment complexity. How might this environment complexity lead to organizational complexity? If environmental complexity increases then typically the size of the organization would need to increase also.
The increase in size could lead to an increase in organizational complexity at FedEx. FedEx corporate environment is very flexible and more adapt to environmental changes and uncertainty. 5. What can the company do to have an effect on controlling its environment? FedEx organizational structure can be characterized as having a decentralized authority structure. At FedEx the decision-making responsibilities are kept as close to the affected point as possible. FedEx employees are better able to monitor and get feedback from the customer.
This interaction allows for quicker implementation of needed processes in response to changes in the environment. This puts FedEx employees in better control of the changing environment. FedEx has been very successful in adapting to the changing environment. This flexibility is why FedEx consistently ranks among the world’s most admired and trusted employers.
References (FedEx) Company Information. Retrieved on November 10th, 2010 from http://www. fedex. com/us/supplier/organization. html Draft, Understanding the Theory and Design of Organizations. 10th Ed. South-Western Cengage Learning, 2010, 2007. [pic]