Federal Express' success with group relations depends on candid communication.

He emphasizes that Federal

Express spends enormous time on their internal employee response program. The heart of this program is an open
door procedure where employees are encouraged to find answers to situations they find disagreeable controversial,
or contrary to existing group. This open door policy has no time limit for employees, but if an employee expresses
concern, management must respond in 14 days. Additionally, Smith receives a printout listing every open door
concern submitted, and how and when it was answered.

Employees' questions are sent to experts -- anyone from a staff person to the CEO. In all cases, the person
answering has a maximum of 14 days to respond. This focuses on responsiveness. The other plus is the program's
visibility. The CEO not only responds to questions he receives, but also reviews every question the company receives
every week.

Open doors, especially the way Federal Express uses them, can be effective, but perhaps the company's most
successful communication tool is their renowned Guaranteed Fair Treatment Procedure (GFTP). This procedure
which they believe is the cornerstone of their "people" philosophy, gives each Federal Express employee the right to
have any eligible issue go through a systematic review by progressively higher levels of management. Their GFTP
helps ensure that personnel have a right to discuss complaints with management without fear of retaliation. The
company also believes it helps them maintain an open atmosphere as well as keep their complaint handling process
fair and equitable.

FedEx puts its people first because employees are our most important asset through which we can achieve our
business goals. FedEx has led the industry in creating employee-focused programs to promote positive internal
communications and staff development. Every employee has pledged to make every FedEx experience outstanding
and has an opportunity to grow with FedEx. Key programs offered to employees are
Promotion From Within Policy is designed to support employee career development within the company by giving
employees priority in application, consideration and selection for any open positions. This policy aligns with the
companys P-S-P principle.


Open Door Process provides employees with direct access to management to share input, comments and feedback for
further consideration.


Guaranteed Fair Treatment Procedure ensures any employee grievances are dealt with fairly and objectively.


Survey-Feedback-Action gives employees an opportunity to offer feedback on the effectiveness of management.


APAC e-Learning enables employees to learn in their own time from any location for job enhancement or personal
development.


Tuition Assistance Program financially subsidizes eligible employees in their pursuit of additional higher formal
education to enhance career advancement opportunities in FedEx.


AiM (Advance into Management) Program provides employees with opportunities for development and growth into
management positions through a structured process focusing on leadership/ management concepts and skills.

Motivation and Productivity
Employee compensation and rewards are structured to acknowledge individual effort, stimulate new ideas,
encourage outstanding performance and promote teamwork.

FedEx offers an attractive and comprehensive package of pay, benefits and quality of work/ life programs. Examples
of these programs include:*
Salary Increases Salary increase based on individual performance
Variable Pay Incentives to reward individual and team contributions
Tuition Assistance
Subsidy for continuous learning and education (provision
varies by entities)
Paid Time Off Paid leave for marriage, maternity and paternity
Supplemental Commercial Medical
Insurance
Care for health
Life & Accidental Death Insurance Financial security for beneficiary
Reduced Shipping Rate Exclusive discounts for personal shipping
Discounted Travel Discounts on air tickets
* Provision varies by country

At FedEx, we believe our success depends upon the dedication of our people. We have developed recognition
programs that celebrate the achievements of our people and their commitment to delivering on the values of the
company.

Five Star Award
The Five Star award, the highest honor at FedEx, recognizes team members who have enhanced service and
profitability and exemplified the spirit of teamwork and professionalism.

Excellence Award
The prestigious award for recognizing employee leadership, creativity, and distinguished effort in support of
customers.

Purple Promise Quality Award
Recognition of teams who promote the quality culture by achieving outstanding results through application of quality
driven management tools.

Purple Promise Award
Team members who consistently deliver superior customer service to either external or internal customers and make
each and every FedEx experience outstanding are eligible for the Purple Promise awards.

Bravo Zulu Award
The Bravo Zulu Award, derived from the U.S. Navy signal meaning well done, is distributed to individuals within
FedEx for outstanding performance beyond normal job expectations.

Humanitarian Award
Whether stopping to help those injured in a car accident or fighting wildfires, our team members are recognized for
going above and beyond through the FedEx Humanitarian Award. The award recognizes employees who reach out to
others in times of need, exhibiting behavior that goes above and beyond basic community responsibility.

Control and Organization
The Federal Express survey/feedback/action program, which complements their GFTP and other communication
tools, is an annual survey of employee attitudes. Management uses the survey to learn what they need to do to
improve in specific departments and with the company in general. To ensure that the survey is a fair gauge of
attitudes, it is anonymous.

For the last 13 years, Federal Express has reported the survey results for every group or work unit within the
organization. Management never sees individual responses. All managers are required to meet and discuss
employee concerns within six weeks after the work group results have been tallied. If a manager's feedback scores
are low, then he or she is expected to develop and implement corrective action.

Action is the key to the program's success. The company believes that if people feel they have some real influence,
then they are likely to participate. An example of how Federal Express shows that their opinion counts was recounted
by their CEO. Fred Smith said that local part-timers were applying for local full-time jobs, but employees with more
seniority and from outside the local area were bumping them and cutting off the part-timers' opportunity to advance.
To help solve the problem, and keep high-value employees, Federal Express set up a program where local part-
timers receive credit for local service. Employee Training Program
Smith believes it is important for people to take pride in what they do. In the Federal Express case, he points out the
importance of the cargo they carry. As managers, it is essential to make sure employees know what they should do
and why it is important. There must be some ulterior reason, some higher-level purpose for work rather than just
earning a salary. Employees need a sense of purpose and rewards for a job well done. Equally important, they must
have the power to influence what is done and how it is done.

Federal Express' efforts at retaining employees are worth emphasizing, but are certainly not the only ones. They may
not be appropriate for all organizations, but one point is universal. If we hope to keep our employees, then we must
think more comprehensively how they will fit in and how we keep them involved so they do not want to leave.