United Parcel Service (A)

• Heber Manurung 29109322• Itca Istia Wahyuni 29109319• La Ode M. Arief Akbar 29109367• Lea Kusumawati 29109342• Muhammad Rumeizy 29109379• Pitra Adhi Pamungkas 29109380

Company Profile• Founder : Jim Casey at 1907 called

“American Messenger Company” • 1913 First delivery car• 1919 Labor Union • 1922 Common carrier • 1929 Policy Book• 1982 “Next Day Air Services" in US • 1987 Largest transportation

company and largest air freight carrier in the world.

Brand Mark

1919-1937 1937-1961 1961-2003 2003-present

• Operations– Package Car– Package Center– Hub

Company Profile

• Policies & Organization– Employee Ownership– Decentralization– Communication– Internal Development of

Employees– Humility: A Company Ethic– Customer Service

• After Deregulation– Many common carriers and forwarders purchased

their own fleet and became integrated air carriers. – Offering a complete solution to a customer’s

express delivery needs.

Competition Situation

– Owning their own aircraft allowed the companies better control over service and costs associated with air delivery.

Competition Situation

• Competitor– U.S. Portal Service emphasizing in customer

service– Federal Express emphasizing in technology– Other Competitor• Airborne Freight, Inc.• Emery Air Freight• Purolator’s• Roadway Package Systems (RPS)

Background Case

• Data Processing 1971 -1985– Poor equipment– Providing poor service

• Have to join the competitors in the age of computer technology

• The department’s name was changed to Information Service.

• Choice :– Hire people within UPS– Hire people from outside

Tradeoff Hire Within vs Outside

Hire - Within

⁺ Fit in company culture⁺ Have knowledge of

business process⁻ 10 weeks training

⁻ Slow & costly process

Hire – Outside

⁺ 3 days orientation⁺ 2 weeks district

experience⁻ How outsider fit in

culture organization

Case / Problem

• The issue was how to approach the assimilation process.

• The issue of outsider hires was not confined to Information Services.

Jack Rogers, Chief Executive“we need to focus on how we bring outsiders to UPS as well as the

extent to which we should do it”

Core Competency

• Achievement (ACH)• Concern for Order (CO)• Empathy / Interpersonal Understanding (IU)• Customer Service Orientation (SCO)• Relationship Building (RB)• Organizational Commitment (OC)

Problem Solving

• After considering the core competency of the UPS, Information Service Department is one that has an essential function for the company.

• Consider the ability of the workers at the UPS, cost and time to do training, so it is appropriate to employ people from outside.

Problem Solving• In the conduct recruitment, selecting and

orientation from outside, the UPS needs to consider aspects of competence contained in the company.

• The competency is important as a basis internal strength of the employee to determine the company’s strategies.

Key Success

• UPS been so successful in the past because– Mystique of the organization– Internal Development of Employees– People Policy based on integrity & fairness

The key success factor is to produce employee satisfaction so that employees can provide optimal service

Conclusion

With the threat of competition more apparent than in previous years, UPS began to-fine its

operations, decreasing its costs and increasing its productivity.

References

• http://en.wikipedia.org/wiki/United_Parcel_Service

• http://www.ups.com

Thank You