Ups: Where Efficiency Is an Obsession

I. FACTS OF THE CASE

To live with the expectation of delivering efficiently, UPS implements strict compliance on time-studied tasks and workers are monitored to ensure that these are followed. Employees are given high salaries to compensate with the job stress they experience, this results to high operation costs which are set off by increasing the price of the their products and services. However, they have to maintain their prices competitive with other rival delivery companies. To meet up with the demands of efficiency, and given that they have to keep their prices competitive, the company sought to further improve efficiency, which causes added stress to the staff. However, the new breed of better-educated workers is less tolerant with the company's rules and regulations and the labor union also steps up to complain about job stress and lessen supervision and workloads

II. CRITICAL MANAGEMENT PROBLEMS

a. Improving efficiency to maintain competitiveness with respect to other rival companies. Maintain its good profitability and its market share despite increasing number of competitors.

b. Addressing labor concerns on job stress, decreasing supervision, and manager harassment.

III. ALTERNATIVE COURSES OF ACTION, ADVANTAGES AND DISADVANTAGES

The critical problems of UPS are on efficiency and employee satisfaction. The following courses of action aim to address the problem with the employees, with the principle of the Neoclassical Theories that the company should improve employee satisfaction and improvement of worker productivity will follow. As the company is leaning towards scientific management, with all the movements were studied and calculated towards efficiency, it may be best to also consider employee concerns. This will also inhibit possible plans to labor strike, and the company will maintain its positive corporate and brand image.

a. Evaluate employee stress and labor union complaints. Meet up with the labor union officials to compromise on how to improve efficiency and meet demands without risking on losing employees due to job stress. Amend standards implemented based on the results.

 This will be costly and time consuming, and it may be hard to find compromise with the labor union when they insist on what should be done to improve their conditions. However, it will be more evident that the company is showing concern on the rising complaints of its staff. Another advantage in including the rank and file in making decisions for the company is that they will be more cooperative when it comes to implementation, as they also contributed to the changes made. UPS may consider hiring a third party research institute to conduct surveys as they may be more underlying problems that that the company needs to address.

b. Hire more employees to make the job easier, train managers to motivate employees to improve loyalty and morale.

 It may be possible that the company is in need of additional manpower to make the job less stressful and improve the efficiency of the service they provide. If the costs of hiring and employing more people will be expensive, the company may consider outsourcing other tasks. Managers and supervisors will be trained as well to improve their motivational skills. Again, this will take time and the concerned employees may have an adverse reaction towards outsourcing, as this may be seen as insecurity to their tenure.

c. Maintain the same standards, salaries, and techniques.