1 To what extent do you think FedEx’s approach is likely to be effective in establishing positive psychological contracts with its workers? FedEx is the leading international package delivery and logistics company. It has become highly successful, with total revenues over $43 billion (FedEx, 2012). The approach that has led to this growth has been consistently people-

centred.

Judith Edge, the Corporate VP of Human Resources of FedEx, explained the underlying philosophy as follows: ‘At FedEx, our people are our greatest asset. We truly believe that. Our founder and CEO rooted the company in the philosophy of people, service, profits and we continue to stand by it’ (HR Management, 2012).

This central philosophy is realised through a range of practices. For example, there is a practice of promoting from within where possible. In the European region, 95 per cent of managers started at a junior level within the company. This means that managers are not brought in above current employees and so employees can aspire to staying with FedEx and building a career. These aspirations are made real by the policies on training.

Employees who are interested in promotion are enrolled in the ‘New Horizon’ programme.

They take an initial psychometric test, which helps to identify the competencies they need to develop in order to get a promoted post. They then develop a one-

to two-

year action plan to develop these competencies. Each employee has access to a tuition fund of £1,550.

Once they have gained the competencies that are needed, they can apply for the position of team leader. After 18 months’ experience they can apply to move up the managerial ladder.