Globalization and HRM Strategies



Globalization and HRM Strategies

Introduction

Federal Express is one of the famous multinational enterprises, founded by Frederick W. Smith in 1971. The federal express corporation was started with the initial investment of $84mn. At the initial stages of the business, the company suffered losses but from the year 1976, FedEx started generating huge profits and revenues from their business. There are several operating companies such as FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks and FedEx Services that operate under the name of FedEx Corporation.

It has revolutionized their performance in the courier industry. The headquarters of FedEx is located in Memphis, Tennessee United States. More than 30000 people are employed under FedEx Corporation. FedEx started their struggle towards globalization in 1984. First it established a European headquarters in Brussels. Then it Honolulu was selected for the headquarters in Far Eastern countries. Tiger International, which was the world's largest heavy cargo Airline was purchased by FedEx in 1988.

Discussion

Impact of Globalization

FedEx Corporation is one of the organizations that have set a benchmark for the rest of the companies in the courier industry. Their increased strategies to improve profitability and productivity have set an effective image in the market. They believe in outsourcing which permits the sharing of the resources around the world. It enables the realization of the economies and encourages the philosophy of learning-by-doing in particular tasks (Lawrence J. Lau, 2000).

Federal Express usually does not generate their own electricity rather they out source it similarly United Parcel Post (UPS) also practice the same strategy. Globalization has a great impact on the expansion of the organization. There are no geographical boundaries for the business operations in the service industry. Thus, globalization has impacted considerably on the expansion of FedEx Corporation. Common Patterns across the region have been followed to make use of technological and industrial changes (Kerr et al, 1973).

Labor Markets

Economic processes are interrelated with the factor-markets and labor market is one of them. These labor markets are the ones that impacts on the human beings directly or indirectly. In the global era, it has been realized that labor is one of the most important resource of the organization. There are short and long term effects of globalization on the labor markets (Rowley and Benson, 2000).

Usually in Multinationals the labor market is not treated evenly, but particularly FedEx is ...