Reference no: EM132282828
The assignment for this week is to answer the questions found below.(Lussier, R.N., & Achua, C.F. (2007). Leadership: Theory, application, skill development, 3rd ed. Mason, OH: Thompson South-Western, p. 344-345).
An example of the successful implementation of this new FedEx approach to organizing work can be found in Springfield, Virginia. With strong support from its managers, employees formed the Quality Action Team to overhaul their package-sorting techniques.
The improvements they introduced put couriers on the road 12 minutes earlier than before, and halved the number of packages they delivered late.
The success of teams at departmental or local levels encouraged Smith and his leadership team to also assign employee teams to companywide projects. Facing growing competition from United Parcel Service, the U.S. Postal Service, and Airborne Express, FedEx organized its 1,000 clerical employees into “superteams” of up to 10 people. These teams operated as self-managed teams with little direct supervision from managers. One team cut service glitches, such as incorrect bills and lost packages, by 13 percent. Another team spotted—and worked until they eventually solved—a billing problem that had been costing the company $2.1 million a year.
FedEx teams have worked so well because Fred Smith sets standards and reinforces them. He spearheaded the concept of the “golden package,” the idea that every package FedEx handles is critical and must be delivered on time. Whenever there’s a crisis, whether due to competitive pressure or to Mother Nature threatening to ground the company’s planes, the team with the golden package takes charge to figure out how to make the delivery on time. Smith reinforces group performance by presenting a monthly Circle of Excellence award to the best FedEx station. He encourages innovative thinking by creating a “job-secure environment.” He takes the position that “if you hang people who try to do something that doesn’t quite work, you’ll get people who don’t do anything.” Managers are by no means obsolete at FedEx. Smith has redefined their roles. There has been a shift in mind-set from the traditional leader-centered to the team-centered leadership approach. Managers are expected to formulate clear, attainable goals for their teams, to solicit employee ideas, and to act on the best employee suggestions. FedEx managers perceive their role as facilitators—and sometimes they’re players. During emergencies at the Memphis hub, senior managers hurry down from the executive suite to help load packages onto the conveyer belts that feed the company’s planes. They practice team leadership by doing, not by telling.
According to one company executive, “FedEx has built what is the most seamless global air and ground network in its industry, connecting more than 90 percent of the world’s economic activity.” It is evident that Smith’s leadership in pushing for a much more open, flexible, team-based organization has been instrumental in keeping FedEx’s lead position in overnight package service. It is also one of the reasons that FedEx has continuously earned high marks as one of the top companies to work for in the United States.
Answer the following questions:
1. How do the standards set by Fred Smith for Federal Express teams improve organization performance?
2. What motivates the members of Federal Express to remain highly engaged in their teams.
3. What type of team does Federal Express use? Provide evidence from the case to support your answer.
4. Leaders play a critical role in building effective teams. Cite evidence from the case that Federal Express managers performed some of these roles in developing effective teams.