Organizational Structure
Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987)
United Parcel Services Organization Chart
United Parcel Service, Inc. (UPS) is the world’s largest package delivery
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United Parcel Services Inc. has a functional organization structure in the sense that common department such as: marketing, finance, human resource etc. are organized by separating each of and managing them independently. Managers of different functions report up to the Chief Executive Officer (David Abney) who has responsibility for all of the operational areas. The functions are separated by expertise which promotes functional innovation and also it is easy for each department to understand their core responsibilities thus they can be held responsible in case of any …show more content…
UPS is known to offer efficient services throughout the world.
3.4 People
UPS organization structure supports organizational and individual talent necessary for success including performance measures and incentives aligned to the objectives and work processes and systems. The company provides opportunities for their employees to grow professionally and this makes it be able to offer high quality services.
3.5 Culture
UPS organization structure allows high performance values and behaviors and capacity to change. The company has always provided an opportunity for their managers to grow professionally. It is known for its development of high quality leadership, making a commitment in preparing future leaders and encouraging them to learn outside of there are of expertise.
References
Brewster, M. & Frederick D. (2007). Driving Change. The UPS Approach to Business.
Jacobides, M. G. (2007). The Inherent Limits of Organizational structure and the Unfulfilled Role of hierarchy. Lessons from a near-war: Organization Science, p. 18, 3,
Founded in 1907, UPS is the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. Using advanced technology, access to global resources, and an integrated network of physical, technological, and human assets, UPS provides a powerful competitive advantage that can help you earn repeat customers and grow your business.
The United Parcel Service is the largest package delivery company in the world. They have worked for over 108 years to gain this title. UPS.com states that the current strategy is “Create Value, Transform, and Invest to Grow”. This is a major reason that UPS currently has the competitive advantage over other shipping companies. It is also the reason that the company strives to become better at what they do every day.
Managers of the company believed that the integrated operating model maintained by the company will deliver significant benefits in respect of many performance evaluation criteria, like employee management, environmental issues and financial viability. UPS defines itself as the first delivery service company that has the ability to synchronize the flow of goods, information and funds into a single integrated form of service. Managers and employees at UPS have worked hard to build the scale, the infrastructure, the financial foundation and the specific expertise to give birth to such synchronized form of service (‘Overview’, 2007).
UPS had been in existence for over one hundred and seven years. It was initially started by two individuals. These men started the company inside of the United States and it was initially a messenger company. Over the years, the company has experienced a tremendous amount of growth. It has evolved from a very small operation to a multi-billion dollar company. The amount of growth is attributed to how the company has concentrated its efforts and focused upon helping good to transported and shipped around the world.
Operation leaders are tasked to identify the critical success factors and core competencies of their business functions and objectives in order to generate sustainable long-term growth. Critical success factors are actions essential for a business to reach its objectives. (Heizer & Render, p. 42, 2009). UPS’s key success factors are its efficiencies in scheduling, integrating the stream of goods, its ability to provide multiple solutions such as “harmonizing the flow of goods, information and funds across customer supply chains” while enabling consumers to “evolve in new and necessary ways” (Lewis, Forquer & Quinter, pg. 2, 2007). UPS’s environmental factors include their supply chain design and planning, competitors in logistics such as FedEx, distribution services, diversification in the global environment and focusing on differentiation. UPS is also an expert in its industry because the strategy is globally focused and is centered on diversification of its systems (See Appendix1.1)
Out of many types of UPS locations, UPS stores are the most comprehensive service providers offering a wide scope of packing, mailing and printing services, as well as small business tips for companies. A company can open a UPS account and manage tracking of ground and freight packages online while handling the packing and the shipments at UPS stores. The practical aspect of a UPS store is that, along with mail services, a business can use it as a one-stop shop for administrative work. For example, many UPS stores provide tax and business forms, as well as printing of various office materials like business cards, brochures, catalogs, manuals, invitations and 3D printing. Since many UPS stores are franchised, they are adapted to provide accounting, human resources, financial and communication services for businesses, and help them with marketing and IT support. The type of service customers will be able to get from a particular UPS store depends on the existing facilities of the specific location. While standard UPS services are provided at most UPS store locations, it is worth using the online UPS locator to check the availability of a service in a particular area.
Structure is the basis through which an organization seeks to create control the direction of an organization. This is completed through clear definitions of the allocation of work, differentiation, and the coordination of having those responsibilities working together towards the efforts of the organization, integration (Bolman & Deal, 1993, pp). Through these methods, the organization is able to devise a division of labor that collaborates to bring about the missions and goals of an organization. The structure that comes about from this can be varied in their rigidness and flexibility it allows, and to an extent this is a great contribution to its success.
United Parcel Service (UPS) was founded in 1907 as a messenger company. It has grown into a multi-billion dollar corporation. Today UPS is a global company and one of the most admired and recognized brands in the world. UPS has become the largest delivery package company and leading provider of specialized transportation and logistics services in the world.
The United Parcel Services share of the marketplace commands attention: -400,000 (+) employees -$51.5 billion earned 2008 -14% profit margin -90,000 vehicles and 268 jets -Operations in over 200 countries (Thomas, Linder, & Dutra, 2006). Organization has allowed UPS to operate in financial, retail, technology and nonprofit markets as well as logistics. Management Leads with the philosophy of talent cultivation through long-term employment relationships, developing committed, aligned and experienced partners. 54% of full-time drivers started as part-time. 68% of management was promoted from within. 78% of Vice-presidents once held non-management positions with UPS (Thomas et al., 2006). Controlling within UPS develops around the standard of constructive dissatisfaction, the belief that all process can be improved on and all parameters may be extended. Constructive dissatisfaction, a culture of ownership along with continual training and market awareness keep UPS a pioneer. External Factors Globalization has empowered UPS to update their strategy to synchronizing global commerce: of goods, information and funds (Thomas et al., 2006). Once a local delivery service, now UPS is recognized globally, embracing diversity with owners and customers in from every nation. Concerned with environmental impact of big business, UPS has cut carbon emissions, from airliners, 22% since 1990, and plans to cut
UPS is the largest parcel delivery service in the world. They also help their customers its customers with supply chain management,
UPS is a global package delivery business that specializes in not only managing the movement of goods, but the information and funds that moves with those goods in more than 200 countries and territories worldwide. UPS’s target market is primarily U.S. companies that ship business to business via ground delivery and whose delivery time is not
"Consensus building" and was focused on efficiency and execution, emphasis on customer service. It believed in continuous improvement of company. UPS has fostered strategic focus around operational excellence. It is renowned for its efficient delivery service.
Since 2013, UPS has updated their mission statement and core goals. Although the company addressed aspects of employee ownership, long-term growth, and social responsibility, the firm has since expanded on their commitment to sustainability and their importance on a caring corporate culture for employees and shareholders. The proposed vision statement emphasizes UPS’s strategic position to create a competitive advantage through the globalization of trade and the development of
* Competitive Advantag- UPS had already its operational excellence and New Products, Services and Business Models which means the UPS already gain a competitive advantage. Having this kind of technologies that they use like DIAD made them do things better than their
Brand Equity: UPS has been in existence for almost 100 years and during that time UPS has become a household name. The “What can brown do for you?” marketing campaign solidified that the UPS brand stand for quality, service-oriented, reliability, and product