CASE STUDY: UNITED PARCEL SERVICE

by Claudia Alves

  1. What are the three most important factors contributing to employee commitment and productivity at UPS? Which of these factors have now changed and what impact do these changes have on HRM at UPS?

The three most important factors contributing to employee commitment and productivity at UPS are:

  • A profit-sharing and stock ownership plan;
  • A package of benefits for all employees;
  • A promotion-from-within policy.

A compensation system like the UPS profit-sharing and stock ownership is an incentive pay capable of retaining its employees, gaining their loyalty and motivating them to perform effectively. Besides, it makes employees more aware of the organization’s competitive position in its industry and facilitates a cooperative atmosphere. The option for this type of payment also shows the concerning of UPS in developing a long term employment relationship.

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Another form of compensation adopted by UPS is an indirect one, and consists of a package of benefits designed to provide long-term financial security and immediate health care services. It is important to mention that all employees, part-time and full-time, are provided with health and retirement plans. Benefits not only play a major role in attracting qualified people but also in retaining employees.

The promotion-from-within policy is the one that have now changed because of the necessity of UPS in hiring people from outside.  The rapidly growing of some business and the need of specialized people are ...

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