United Parcel Service
Human Resource Management
Prof. Sugiyama, Koichi
Group C
Aunt Khine (2A6005)
Banares, Angelito Lambayan (2A6006)
Nishino, Kei (2A5024)
Pekaric, Benjamin (2A5025)
Pham, Thi Thuy Ha (2A5026)
May 21, 2007
Why to introduce IT function?
Business environment:
- Deregulations allowed new competitors coming in the industry
- Due to the development of IT, business environment has changed.
Competitors:
- Competitors are ahead in some technology innovations
- Competitors use technology to develop their competitiveness and create businesses that threat UPS’ business
- Competitors invest much more in developing in-house IT systems and applications
Inside UPS:
- UPS recognized that future competitiveness will be developed based on the development of IT systems and applications
- UPS should not outsource any part of its IT system because outsourcing has disadvantages:
Ø Outsourcing is costly
Ø UPS might lose managerial control
Ø Outside IT companies might not understand well UPS’ daily operations and therefore may not be able to create good solutions to meet UPS’ business requirement
Ø Outsourcers might not be able to provide satisfied services
Ø Outsourcing may create problems of communications between UPS and outsourcers
Ø There is a threat of losing confidentiality and secrecy of UPS business models to its competitors
Ø There is less flexibility in creating to changing business conditions
- In-house IT development is vital. It will address all these disadvantages and help UPS create competitiveness over its rivals.
- In-house recruitment does not help UPS to develop IT system quickly because in-house recruited employees do not have knowledge, skills and expertise in IT and they need education at schools.
- Outside hires with skills and expertise can work immediately on IT system development after joining UPS
- UPS can better compete on cost, time, reliability
- To facilitate internal and external communication, customer relation
How to introduce IT function?
Phase 1: Get consensus to the particular of IT function
- Top management should agree on introducing IT function and hiring outsiders for IT function
- Design hiring process, job description, salary, evaluation and compensation systems for outsides hires
- Top management communicates the introduction of IT function, hiring process, job description, salary, evaluation and compensation systems for outsides hires for IT function to all employees
Phase 2: Hiring IT employees and providing internal training
| Hiring IT employees | Providing internal training about |
| - Hire IT experts as full-time employees | - Changes in business environment - The potential change in UPS’ business model - The needs to have outside hires to implement corporate assignments on IT development - The important roles of IT services in developing the company’ business and gaining competitive advantages over competitors - Roles and functions of IT service in the entire organization, its relationships with all currents business operations such as tracking - How IT services help each employees perform better their jobs - Prepare them to train outside newly recruited employees |
Phase 3: Training new comers
- Develop a one-month orientation program for all new comers: 2 weeks as driver, 2 weeks on-job training at IC
- Regular 2-day monthly training to understand UPS’ business practices and operations until the 6th month
- Give new comers 1 year to adapt to UPS’s culture
Phase 4: Monitoring, controlling and evaluation
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