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ACKNOWLEDGEMENTS All praise and thanks to the Almighty god, on whom ultimately we depend for sustenance and guidance. I convey special acknowledgement to my uncles and friends in UK, for their indispensable help dealing with funds, special care, politeness, and all types of help in the accommodation in UK. I won’t forget for what they have done for me. Without their efforts, it could have not been possible for me to do MBA from UK. Their encouragement and kind support will remain in my mind throughout my whole life.
BRITISH INSTITUTE OF TECHNOLOGY AND E-COMMERCE My special thanks are to prof’s name who had always been available for discussion and study during this course and research. Their help and guidance was very crucial for me to achieve one of the dream tasks of my life. I was very lucky to have them as my real well wisher. Even I don’t have words to pay gratitude to them. They may succeed in their future life. This is my kind wish to them. Finally, I am thankful to academic and administrative staff at BITE and Coventry University who designed and managed such an interesting MBA program which will help me in my career development.
I offer my Special thanks to name of the person (Chief coordinator of MBA program), and all Professors and Lecturers. Your efforts and hard work will always be remembered. TABLE OF CONTENTS CHAPTER 1 INTRODUCTION 1. 1 Background of research…………………………………………………………………. 4 1. 2 Aim and Objectives…………………………………………………………………………………………….. 5 1. 3 Issues involved……………………………………………………………………………. 5 1. 4 scope of study……………………………………………………………………………………………………… 1. 5 strategies……………………………………………………………………………………………………………… 7 1. 6 structure of the dissertation……………………………………………………….. ………………………… 8 1. 7 conclusion…………………………………………………………………………………… 9 CHAPTER 2 LITERATURE REVIEW 2. 1 Definition……………………………………………………………………………………9 2. 2 Understanding a SWOT Analysis…………………………………………………………. 9 2. 3 Marketing and Advertising………………………………………………………………… 10 2. 4 Supply Chain Management……………………………………………………………….. 0 2. 5 Risk Management, Residual Risk and Business Continuity…………………………….. 14 2. 6 Business Sustainability and Financial Risk Management……………………………….. 14 2. 7 Regression Analysis Literature Review…………………………………………………. 17 2. 8 Performance Management and Customer Retention……………………………………18 2. 9 Definition of Performance Appraisal Management………………………………………18 2. 10 The Purpose of Performance Appraisal Management Systems and Customer Retention…………………………………………………………………. 19 2. 11 Challenges of Performance Management Systems and Customer Retention………. 21 2. 2 Leadership at UPS………………………………………………………………………. 22 2. 13 The Forces Driving the Changes in Leadership………………………………………. 23 2. 14 Leadership versus Management…………………………………………………………23 2. 15 The Problem………………………………………………………………………………. 26 2. 16 The Solution……………………………………………………………………………….. 26 2. 17 Mistakes Happen………………………………………………………………………….. 28 2. 18 Reliability and Cost………………………………………………………………………. 29 2. 19 Stopping Fraud……………………………………………………………………………30 2. 20 Flawless Interceptions……………………………………………………………………. 30 2. 21 Limitations of the Literature Review……………………………………………………. 1 CHAPTER 3 QUALITATIVE RESEARCH METHODOLOGY 3. 1 Introduction on Qualitative methodology……………………………………………….. 32 3. 2 Research Objectives……………………………………………………………………….. 32 3. 3 Research Design……………………………………………………………. ………………34 3. 4 Research Methodology…………………………………………………………………….. 35 3. 5 Quantitative Analysis versus Qualitative Analysis………………………………………. 36 3. 6 Primary Data Collection and Research…………………………………….. ……………38 3. 7 Secondary Data Collection and Research…………………………………….. …………. 39 3. 8 Scaling Method (Sample Targets)………………………………………………. ……….. 9 3. 9 Online Survey………………………………………………………………………. ………40 3. 10 Threats to Research………………………………………………………………. ………40 3. 11 Summary…………………………………………………………………………………… …….. 41 CHAPTER 4 QUALITATIVE DATA PRESENTATION AND ANALYSIS 4. 1 Primary and secondary data introduction…….. …………………………………………42 4. 2 Qualitative data analysis…………………………. ……………………………………….. 42 4. 3 Multi factored regression analysis……………………………………………………….. 42 4. 4 Regression analysis formulas………………………………………………………………43 4. 5 Regression f Formulae Rationale…………………………………………………………. 43 4. Regression Analysis Outcomes and UPS Growth Forecasting………………………….. 43 4. 7 Organizational Aspects and Sustainability: A Qualitative Analysis……………………. 44 4. 8 UPS Bureaucratic Management and Overall Leadership Approach…………………… 44 4. 9 UPS Leadership Style and Sustainability…………………………………………………46 4. 10 Weaknesses in UPS’s Administration……………………………………………………48 4. 11 Direct and Relationship Marketing………………………………………………………49 4. 12 UPS’s Future Plans and Potential Strategies for Growth………………………………52 4. 13 Technological Advancement and UPS’s Sustainability…………………………………54
Chapter 5 Conclusion……………………………………………………….. 55 References………………………………………………………………………………………57 Appendix…………………………………………………………………………………….. 59 List of Charts Chapter 2 2. 1 Business sustainability stock charts………………………………………………………………………… 15 2. 2 Breakdown of revenue…………………………………………………………………………………………… 17 2. 3 Performance Graph……………………………………………………………………………………………….. 0 2. 4 Ups Price chart……………………………………………………………………………………………………….. 31 Chapter 3 3. 1 Qualitative methodology at initial stage…………………………………………………………………… 35 3. 2 Measuring the scope of the market………………………………………………………………………….. 36 3. 3 steps for quality………………………………………………………………………………………………………. 6 3. 4 functions of Qualitative research methodology…………………………………………………………. 37 3. 5 Process of Qualitative methodology…………………………………………………………………………. 37 3. 6 Research Design……………………………………………………………………………………………………… 39 3. 7 Intraday online chart………………………………………………………………………………………………. 45 Chapter 4 4. Analysis of Data Presentation………………………………………………………………………………….. 50 4. 2Tools and techniques of DP………………………………………………………………………………………. 51 4. 3 Data interpretation Quality Research………………………………………………………………… 51 ABSTRACT The project deals with how UPS uses the Information Technology to make effective decisions in the market. The project deals with the current practices of the company and how they make effective use of the existing ystem and the resources. The research is a qualitative based research and it also deals with the qualitative data. The concept of consumer relationship management, consumer satisfaction, quality etc. are also seen here. The importance of this project lies with the developing IT industry which is ruling over the market in today’s world. UPS is one among the companies which uses the IT industry for its effective management. CHAPTER 1 INTRODUCTION 1. 1 Background of research: The company was started under the name, United Parcel Service (UPS) in the year 1907 in Seattle.
The company’s success lies with the adoption of logistic based consolidation of freight. The company also implies with the combining of packages on one delivery system to optimize cost. In the year 1930, the company expanded to Oakland and the California which widened the scope of the company. The company also started the United Air Express which offered the air delivery package throughout the west coast. However, the key infrastructure of the company was the consolidation system which was effective enough to help in the growth of the company. The company was then extended to New York.
From the year 1940 to 1960, the company faced tremendous growth level which led to the quick development of the company at the global level. In the year 1950, the company faced a complete change over as it became the “common carrier”. The company received the right to deliver packages to civic addresses within its territory. In the year 1975, the company became the common carrier for 48 contiguous states. This led to the fast development of the company. From the year 1988, UPS operates its own airline. The UPS delivers at over 391 ports among which 219 are international ports.
In the year 1988, the company made its significance in the growing logistics industry with its increasing number of transactions occurring online. The company also commercialized its features so that it can invite large number of people to use its services and therefore gain a share over the market. 1. 2Aim and objectives: The main aim of UPS is to use a distribution system which helped the consumers to track the location of their parcels. UPS was originally with the idea of providing its services to the business people as maximum number of transactions take place only for business purposes.
However, its reliability and efficiency encouraged a large number of people to consume the services of the company. To avoid unnecessary congestion and trafficking, all the parcels were generated only by the UPS route irrespective of the destination. This strategy was used to enable quick movement of the parcels and to avoid late deliveries, as the success of every company lies with the time management and punctuality. This is the important factor of every company based on which it creates demand among the consumers.
UPS has used this factor effectively by providing timely deliveries of the commodities. UPS follows the distribution system under the process of consolidation, distribution and fragmentation. Today, UPS operates around 15. 8 million parcels per day and among these nearly 2 million parcels is carried over by the air transport, which promotes a global status for the company. This data proves that the company operates largely at the international level. Its services and distribution system has made it popular and successful in most of the countries.
The business men prefer UPS when compared to other services due to its efficiency and punctuality. However, UPS aims at a closer integration of its supply chain. This has been enabled with the emergence of e-commerce, which provides of trading and commercial activities over the internet. E-commerce has helped for the growth of the company as more than 9 million parcels per day are transacted over the internet. These online transactions enabled the company to gain importance in the global market. UPS offered its clients to have a track over the delivery system to know the progress of the transaction.
The services of UPS covered a wide area of logistical activities which included quick and inexpensive ground delivery system and also global trade financing. These activities also included web retailing and supply chain management. The major international modes of transportation have been well integrated with the UPS distribution system. UPS also became the world’s largest common carrier implying that it used its services to fulfil the mobility needs of the consumers. This ensured for the success of the company as the consumers demand a service which can enable their mobility needs.
UPS provided this service efficiently with punctuality which made it popular throughout the globe. 1. 3 Issues involved: Even though the company is successful enough at the global level, it involves certain problems which hinder the growth of the company. One of the major problems which the company faces is that it is not clear with the technology to be used so that it can attain an advantage over its competitors. The new systems used by the company are helpful in eliminating manual work. This has made the company’s strategy strong enough to complete its work quickly.
Another area where the company faces loss is the cost factor. This service involves huge investment on an initial level but the outcome gained is only after a particular point of time. The service such as air transportation involves large amount of capital at the beginning but the company gains income only after fulfilling the needs of the consumers. The new process and technology followed by the company has helped the company to eliminate its operational cost but helped in the optimization of its business processes. These processes have incurred less expenditure which led to profit-making by the company.
The elimination of paper played an important role in reducing the expenditure of the company. UPS also adopted a system of circulating the information to all its branches so that the information can be accessed through any branch of the company. These systems helped in the effective management of the company and also provided quick service to the customers. UPS has also managed various branches in an effective manner. It has enabled co-ordination between the various branches to promote effective service and avoid confusion within the company as it deals with millions of transactions every-day.
UPS is also well-known for its customer relationship management. It has managed to have a good relationship with the consumers and satisfy their wants as and when demanded. The current statistics reveal that the company’s systems are liked by the consumers. It can be accessed by a consumer sitting back home using the unique pin number by which enables them to log on to the web to obtain details on their product, its current location, its arrival date, charge etc. This mobile service has made sure that the consumers can know about their product without any effort.
The consumer is also given the opportunity of designing his parcel according to his wish. The consumer also has the power to cancel his order or to re-locate his destination according to his demands. The consumers are also given the advantage of choosing the type of parcel and also the mode of transportation, which helps in maintaining a good relationship with the consumers. UPS has also provided the consumers with the facility to view their transaction status even through smart phones which is also one among the various strategies of the company towards consumer relationship management.
All these facilities provided to the consumer has made sure that the demands and needs are fulfilled. The company has gained over the consumer market here by providing extraordinary services like designing and relocating of destination to the consumer. 1. 4 Scope of the study: One of the main scope and factors for the success of the IT implementation at UPS is that they go in for the process of the incremental implementations and they always ensure that the new product never disturbs the existing practices.
They also take care that any product purchased matches with the objectives of the firm. The new automated systems are the future of the new technology and business as they will help in the process of completely eliminating the manual work involved and help to bring in security in the existing systems. The only area they suffer is the cost as they will have to go in for huge investment initially but they can take back the amount only in a long time as the new process will eliminate the operational cost and help in the optimization of the business processes. Langley John, 1998). Hence we have not developed hundred percent effective system which is capable of security and the reliability; and the need for the optimization continues to alter the existing systems and built in new technologies which can completely redefine the current business practices like the evolution of the E commerce which has completely altered the airline business. (Lappin, et. al. 1996) 1. 5 Strategies: UPS adopts various other strategies for its success.
For example, the company the company has a link with the Olympic and Paralympics’ games and it also sponsors these games as a part of promotion of the service it offers. UPS offered freight services in these games as reliability and time factor is most important here. It also handled time-sensitive transactions and enabled the consumers to meet their demands in other countries. The latest development of UPS involved assistance to business of all sizes, small, medium and large. It was not focused on only one type of business but involved all type of transactions.
Therefore UPS has provided all kinds of advantage to the consumers. However, there are a number of competitors for the company to use its best tools to gain a high share of the market. For example, the United States postal service, Fed-ex, Canada post etc. are the international competitors of UPS. The company has adopted various strategies to win the market share against its competitors. The use of Information Technology by the UPS is to make its services more efficient to fulfil the needs and demands of the consumers and to have a complete share of the market.
This organization can use RFID to avoid wrong data and avoid confusion in the company. The use of Information Technology by the company can be a fool proof and reliable system in order to make the company more successful at the global level. This system will also help to check the inventories and also have a check over the various processes of the company. Another advantage of using the Information Technology by the UPS is that this process will ensure that the new product is placed without any disturbance to the existing techniques and practices.
The objectives of the firm can better be achieved by adopting this technique or system. This system can also help the company to retain its customers. The company is also using the efficient ERP like oracle for the process of Information integration. UPS has to fight with all the hindrances in order to make the system most effective and less expensive. These systems can promote the company at global level and make it much more successful than what it is today. 1. 6 Structure of the dissertation: Introduction * Aim, Objectives. * Background of the research. Research questions * Issues and theories Literature review: * Marketing and Advertising * Supply Chain Management * Risk Management, Residual Risk * Business Sustainability * Leadership at UPS * The Forces Driving * Reliability and Cost Research methodology: * Research Design * summary of finding * interview methods * sampling plan * Quantitative method * qualitative method Critical analysis and findings: * Primary and secondary data introduction * Quantitative data analysis * Regression analysis formulas * Organizational Aspects and Sustainability UPS Leadership Style and Sustainability * Direct and Relationship Marketing * Technological Advancement and UPS’s Sustainability 1. 7 Conclusion: UPS has developed unique techniques and less time consuming processes which have gained global recognition and consumer satisfaction by its processes but it can still get a high share of the market by using the Information Technology which will be helpful to make the company a known service in all the countries. 2. 1 Literature Review CHAPTER 2 LITERATURE REVIEW 2. 1 Definition:
The process of reading, analyzing, evaluating, and summarizing scholarly materials about a specific topic is described as literature review. The results of a literature review may be compiled in a report or they may serve as part of a research article, thesis, or grant proposal. The author realizes that research exercise is not being conducted in a vacuum. The research exercise fits into a broad body of knowledge which has had numerous contributions from various scholars, researchers, professionals and students who have carried similar or related research exercises.
Additionally, the scope and objectives of this research attempt occurs within related and implied theoretical, ideological and philosophical frameworks; which largely influence the various disciplines of business. The application of performance appraisal management that UPS systems design point out is reviewed in this research exercise and it also explores the global oil prices threat to UPS and its fight against soaring operational costs. As am spurred to consider the multiple contributions relevant and related to this research endeavour.
The leadership qualities at UPS are also a part of this research exercise. The problems that UPS faces along with solution is also explained in this research. I am hereby presenting a literature review in order to broaden the confines of the knowledge needed and acquired for this dissertation. 2. 2 Understanding a SWOT Analysis It takes a deeper plunge in to enunciating the dynamics and proportions of the SWOT (Strengths, Weaknesses Opportunities and Threats) analysis.
The resource has formed the researcher’s perception of the SWOT concept in evaluating a company’s achievement and place vis-a-vis it’s the possible growth prediction, in particular in relation to inner and outer powers. 2. 3 Marketing and Advertising On advertising science we present an eye opening viewpoint and findings on different forms of reference for UPS’s impact on the customer’s choice making processes. The source particularly zeroes in on the feature of attitude as a key aspect in the authority of customers. The Effects of Absurdity in Advertising searches a variety of forms of marketing in elation and cognizance to various references to tactics of penetrating universal souk. The source also spotlights on customer outlook on certain products, draws contrast and presents statistical psychoanalysis of findings acquired through a variety of research modals. In a journal we found that the marketing research captures customer reaction and thoughts to particular brands. The sources also discover the outcome of pricing and its attributing elements involving to the advertising strategies. Administrative implications of the statistically offered findings are also investigated by the authors.
The Evolution of Brand Preferences and Choice Behaviours of customers to a Market in one of the Journal of Marketing Research , presents the vital features of the Log it-mixture model with time-varying parameters, customer panel data, Stages (information collection, extended to lesser-known brands, information consolidation). Including topics as impact, and product experience as well as statistical analysis. In contributing a variety of other expensive outlook investigates aspects of choice framing, psychosomatic reactions, regret expectation and product class commitment.
These have offered valuable insight in the framing and enhancing the application of this research exercise. 2. 4 Supply Chain Management According to Haag et al (2006) Supply Chain Management comprises the scheduling and management of all activities concerned in sourcing, procurement, conversion, and logistics management activities. The researcher state that the management model also contains harmonization and cooperation with channel associates, which can be dealers, mediators, third-party service providers, and consumers. In quintessence, Supply Chain Management integrates supply and demand management within and across companies. Of late, the loosely attached, self-organizing network of businesses that assists to offer product and service offerings has been called the Extended Enterprise. ” (Op. Cit. ) The source has supplied the extent of this sustainability study with important viewpoint on supply chain management in relation to a variety of organizational management components for nationwide and international companies.
David Simchi-Levi et al (2003) emphasizes: “Supply chain management is a set of approaches employed to capably incorporate dealers, manufacturers, storehouses, and supplies, so that products are formed and circulated at the correct quantities, to the precise locations, at the correct instant, in order to reduce system wide costs while pleasing service level necessity. ” Simchi-Levi has intensified the considerate of supply chain management (SCM) aspects in the way UPS has synchronized the SCM variables towards sustainability.
In addition to that the study Christopher (2005) affirms that the: “Supply chain management is the management of UPS stream and downstream relationships with dealers and consumers to deliver privileged consumer value at less cost to the supply chain as a whole. ” In the study we present assorted supplementary theories on how Supply Chain Management can be decoded as software. The source presents that in such a case SCM includes taxes or components used in performing supply chain dealings, managing dealer relations and controlling business procedures.
As we move along we have explored a few essential idea and perspectives on SCM the source has been amazingly valuable for its insights and focuses on Dynamic of Supply chain event management (SCEM). According to the authors SCEM is a contemplation of all probable happening events and features that can cause a distraction in a supply chain. With SCEM probable circumstances can be created and answer can be premeditated. There is currently a ‘knowledge gap’ in terms of the literature obtainable in the area of supply chain management studies, on providing theoretical support for elucidating the survival and limitations of supply chain management.
As we discuss deeper we found that, Many authors have tried to provide theoretical foundation for different areas connected to supply chain with utilizing organizational theories. These theories consist of: * Resource-based view (RBV) * Transaction Cost Analysis (TCA) * Knowledge-based view (KBV) * Strategic Choice Theory (SCT) * Agency theory (AT) * Institutional theory (INT) * Systems Theory (ST) * Network Perspective (NP) Mainstream SCM conceptualization holds that the SCM mechanism is the third component of the four-square distribution structure.
The level of incorporation and management of a business process connection is a purpose of the number and level, ranging from low to high, of components added to the link. The script on commerce expansion reengineering the buyer-supplier relationships and SCM implies assorted probable equipments that ought to obtain supervisory concentration when managing supply relationships. We recognized the subsequent components which are: * “Planning and control * Work structure * Organization structure * Product flow facility structure * Information flow facility structure * Management methods * Power and leadership structure Risk and reward structure * Culture and attitude” Supply chain management is a set of approaches used to professionally incorporate dealers, producers, storehouses, and supplies, so that products are formed and circulated at the correct quantities, to the precise locations, at the correct instant, in order to reduce system wide costs while pleasing service level necessity. The exceeding thoughts taken from the source quoted above have intensified the understanding of supply chain management (SCM) aspects in relation to how UPS as chief player in this business dimensions has synchronized the SCM variables towards sustainability.
In addition to that the study has also made use of Martin Christopher. Logistics and Supply Chain Management resource in which he states that, “Supply chain management is the management of upstream and downstream associations with dealers and consumers to deliver privileged client value at less cost to the supply chain as a whole. ” The insights have been valuable in shedding light on the other significant dimension of SCM.
In this source the authors p6;present gradations on how Supply Chain Management can be decoded as software. The source presents that in such a case SCM includes taxes or components used in carrying out supply chain dealings, managing dealer associations and controlling business procedures. 2. 5 Risk Management, Residual Risk and Business Continuity The author comprehends from his research that risk management is a practice of methodically choosing cost effectual approaches for curtailing the result of danger consciousness to the organization.
The notions explored from different researcher agree that all dangers can on no account be completely avoided or ease simply because of economical and useful restrictions and that therefore all organizations have to admit some level of remaining dangers. We strongly feel that that whereas risk management be inclined to be preventive, business continuity planning (BCP) was devised to deal with the consequences of recognized remaining dangers. “The need to have BCP in place arises because even very improbable events will take place if given adequate time. Risk management and BCP are repeatedly by mistake seen as competitors r overlapping practices. In reality these processes are so firmly tied mutually that such division seems fake. For instance, the risk management process generates significant inputs for the BCP (assets, impact assessments, cost estimates etc). ” In addition the outlines that resource risk management is perceived as also proposing valid controls for the experiential perils, consequently casing several areas that are very important for the BCP process, at the same time acknowledging that the BCP process goes beyond risk management’s preventative approach and moves on from the assumption that the catastrophe will recognize at some point . 6 Business Sustainability and Financial Risk Management By the research, I perceive that the risk management to be the performing of creating financial value in a firm by means of fiscal instruments to administer revelation to risk, mainly Credit risk and souk risk which contains: United Parcel Service, Inc. (UPS) Stock Charts “Other types include stock exchange, Foreign exchange, Shape, Volatility, Sector, Liquidity, Inflation risks, etc. Similar to general risk management, financial risk management needs recognizing its resources, measuring it, and plans to address them.
As a specialism of risk management, financial risk management focuses on when and how to hedge using fiscal instruments to handle costly exposures to danger. ” Van Deventer et al (2004) Hirsch (2005) outlines the elements of the impact of the oil price crisis as an extraordinary risk management crisis stressing that “As peaking is approached, liquid fuel prices and price volatility will increase dramatically, and, without timely mitigation, the economic, social, and political costs will be unprecedented.
Feasible alleviation options are there on both the supply and demand sides, but to have considerable impact, they must be commenced more than a decade in advance of peaking. Justifying the peaking of world conventional oil productions present a typical risk management crisis. ” The resource comprises a few points which present relevant to the focus concepts of this research exercise, as do the bullet arrows below: * Alleviation commenced previously than required may turn out to be untimely, if peaking is long delayed. If peaking is about to happen, malfunctioning to instigate timely alleviation could be tremendously harmful. * sensible risk management needs the preparation and execution of alleviation well before peaking * premature alleviation will almost definitely be less luxurious than deferred alleviation. Breakdown of Revenue UPS’s revenue is broken down into several different sectors: U. S. domestic package, International package, and non-package. U. S. domestic package accounted for and how the revenue is split into is shown below Statement of Income Data:Revenue:| 2000| 2001| 2002|
U. S. domestic package | $24,002. 00 | $23,997. 00 | $23,924. 00| International package | $4,078. 00 | $4,245. 00 | $4,680. 00| Non-package | $1,418. 00 | $2,079. 00 | $2,668. 00| Total revenue | $29,498. 00 | $30,321. 00 | $31,272. 00| The author’s study determines a ongoing topic in articles from periodicals and newspapers which focus on oil prices, with the underlying dilemma is that it is not possible to time the peak of the existing increase in oil prices because of insufficient, conflicting and potentially biased data on oil reserves and demand.
Additionally, the start of peak may be hidden by the unstable nature of oil prices. because the possible fiscal impact of peaking is enormous and the doubts this causes which really regularly affect the souk, the author considers a thorough quantitative study to address the doubts and to discover alleviation strategies are a seriously need. The investigation of the crisis of the peaking of globe conservative oil production and concludes that it is different any yet faced by modern industrial society. “The challenges and doubts have to be much better understood.
Technologies stay alive to ease the crisis. Suitable, aggressive risk management will be fundamental. ” It presents worth full analysis on movements amid the prices of crude oil and main refined products in 1992-1998. The logical focus involves an investigation of the existence of long-run balanced price relationships, and an appraisal to decide whether divergence from projected balance can be used for forecast of short-term price alter and pro risk management. “The econometric proof robustly supports the hypothesis that crude and manufactured goods prices are co-integrated.
Past divergences from long-term balance are important in a fault correction specification of short-term manufactured goods price changes. The outcome represents valuable information for equivocation, particularly in incorporated oil companies for which price risk is associated to margin variations. ” The paper also explores crude oil and products price dynamics, and presenting a resemblance amongst ten prices series of crude oils and fourteen price series of petroleum products, considered in four different market areas (Mediterranean, North Western Europe, Latin America and North America) over the period 1994-2002.
The researcher’s states: “We provide first a total psychoanalysis of crude oil and manufactured goods price dynamics using co-integration and mistake correction models. consequently we use the fault correction specification to forecast crude oil prices over the horizon January 2002-June 2002. ” The sources has enabled and helped us in a deeper understanding on the concepts of risk management in and of the mixed management models and disputes shaped by the oil price crisis dogging the oil industry.
These will be important to the scope of this study which will survey the universal oil prices danger to UPS and its battle against towering operational costs. 2. 7 Regression Analysis Literature Review In trying to give respond to the query on whether the development of UPS IN the past five years can be continued, the study will utilize regression analysis as the main statistical assessment model which is helpful for conducting statistical forecasting and devising useful and scientific inferences from evaluated data.
The regression will help in ascertaining from the tendency and divergence on the evaluated company fiscal data as to whether or not the expansion experienced by UPS in past five years can be continued five year into the from UPS’s financial records. As we have studied we have explored the meta-regression analysis (MRA) signifying that the concept provides an experiential framework through which dissimilar economic research outcomes can be included. “MRA can experientially model and check socio-economic theories about finances study. t this juncture, we formulate two tough claims: socio-economic MRAs, largely conceived, give details much of the excess variation routinely found in experiential finances research; whereas, any further type of literature review (or summary) is prejudiced. ” (Op. cit. ) The present analysis of regression psychoanalysis idea as an evaluator and forecasting abstract framework. We may also describe regression analysis as a method used for the modeling and psychiatry of arithmetical data consisting of values of a subject variable (response variable) and of one or more sovereign variables (explanatory variables).
According to the clarification given in the resource, “The reliant changeable in the regression equation is modeled as a purpose of the sovereign variables, matching parameters (“constants”), and a mistake term. The mistake term is delighted as a random variable. It symbolizes mysterious variation in the subject variable”. (Op. cit. )This assists the author in clarifying and accepting the theoretical creed of regression analysis. The research helps us to provide and establish helpful concepts of the regression analysis model and its main use in forecasting.
The source state that regression can be used for forecasting, deduction, and theory testing as well as modeling of casual associations. The writer sketches that uses of regression rely greatly on the fundamental assumptions being contented, “Regression analysis has been condemn as being misused for these purposes in a lot of cases where the appropriate assumptions cannot be confirmed to hold. One aspect contributing to the mishandling of regression is that it can take significantly more skill to critique a model than to fit a model. ” (Op. Cit. ) 2. 8 Performance Management and Customer Retention
Some types of performance management and its ancestor performance review have been in continuation since the days of Frederick Taylor at the commencement of the century. Roithmayr (2003) ‘It has been a staple of Human Resources research and practice for more than half a century, and the bane of HR professionals for roughly the similar period. ” Shareowner Return Performance Graph : This graph indicates the return of investments for share owners of ups on yearly basis are as follows: 12/31/02| | 12/31/03| | 12/31/04| | 12/31/05| | 12/31/06| | 12/31/07| | | | | | | | | | | |
United Parcel Service, Inc. | | $| 100. 00| | $| 119. 89| | $| 139. 55| | $| 124. 88| | $| 127. 08| | $| 122. 64| S&P 500 Index| | $| 100. 00| | $| 128. 68| | $| 142. 68| | $| 149. 69| | $| 173. 33| | $| 182. 85| Dow Jones Transportation Average| | $| 100. 00| | $| 131. 84| | $| 168. 39| | $| 188. 00| | $| 206. 46| | $| 209. 40| 2. 9 Definition of Performance Appraisal Management UPS systems design point out the application of performance appraisal management and hence this section presents literature reviewed on that subject.
Performance appraisal has been out looked by many as a sole event controlled by the manager. The developing concept of performance management has taken on a methodical approach with more contribution from the individual worker. Performance appraisals have often been defined as the process for gathering and understanding data about the performance of people over time. The performance management is the method by which worker performance within an organization is designed, administered, and assessed. They also highlight that the conventional approach is based on manager to subordinate communication that comprises supervisory leadership, supervisory oversight, supervisory monitoring and supervisory judgments. More lately we found out that the performance management as a “… set of practices through which work is defined, reviewed and rewarded, and employee capabilities are developed” . They also advocate for a high degree of participation and individual worker liability. This more recent definition adds worker development to the performance management framework.
These have important contribution to means that can be implemented to support HRM performance towards consumer contentment orientation and hence satisfaction. The association has a common vision of its objectives, or a task statement, which it communicates to all its workers. The association sets individual performance management objectives which are connected both to working unit and wider organizational objectives. The company performs a usual, formal appraisal of progress towards these objectives, and uses the appraisal process to recognize training, growth and reward effects.
The company then calculates the efficiency of the entire process and its contribution to overall organizational performance to permit changes and development to be made, particularly to develop the provision of service. This is apparent to improve consumer satisfaction and thus surrender meaningful customer retention levels. 2. 10 The Purpose of Performance Appraisal Management Systems and Customer Retention By the research and findings , we believe that performance appraisal programs are designed to meet three needs. First, they provide a system for decision about salaries, promotions, shift, demotions and terminations. Secondly, they are a method for notifying a worker as to how he is doing in relation to the behaviour, approach, talent and information that are needed for the job. Thirdly, they are used as a mechanism for inspecting and counselling an employee. ” We concur that performance appraisal is mainly used for administrative decisions such as salary management, endorsement, and staff maintenance and dismissal.
With the arrival of ‘management by objectives’ in the 1950’s and 1960’s, organizational planning was added to the list of rational for performance appraisals. In current years, performance appraisal and management systems are also being used to protect organizations against prejudiced practices and for consumer reaction and development of workers. Organizations uses the performance appraisal can be grouped into: between- person uses, as well as salary administration, endorsement, preservation, execution, identification of individual performance, layoffs, and recognition of eprived performance. within-person uses, as well as identification of individual training needs, performance reaction, determining shifts and assignments, and recognizing individual power and flaws, and systems maintenance uses, including use of appraisal for manpower planning, determining organizational training needs, assessing goal achievement, supporting in objective identification, evaluating HRM system, strengthening influential structure and developing organizational development needs. ” (Op. Cit. While the literature suggests there are a lot of purposes for performance appraisals, it also clearly states “… when numerous uses are incompatible, or in disagreement, efforts to use performance appraisal as an all-purpose device may be unsuccessful. we will also have to agree that performance management systems with too many reasons augment the prospective for failure of the complete system. Within the literature authors discuss whether there are any assessable data to link the role of performance management with organizational effectiveness.
Numerous authors discuss the importance of performance management to the accomplishment of consumer retention and yet there are still some unreciprocated questions. For example, performance management processes have been associated to fiscal performance. In a 1994 study, Hewitt Associates Ltd. found “Sales per employee were a third higher at companies with performance management processes than at companies without them.
Operating income as a percentage of total assets was 45% better at companies with performance management processes. ” Roithmayr (Op. Cit. ) In contrast, a UK study found no proof to propose that enhanced organizational performance in the personal sector is connected with the operation of a formal performance management system. ” Bevan & Thompson (Op. Cit. ) We have to admit the findings as proven, may be a consequence of young performance management systems and or the pre-tax profit development is an unsuitable measure. e state organizational effectiveness is affected by such a broad range of factors that trying to calculate the effects of just one of them will never give way to conclusive results. ” we suggest additional research studies on the impact of performance management systems consequence on organizational effectiveness. Here we discuss the cause for this enhance in importance of performance reviews in relation to litigation. The arrival of human rights legislation and the economizing of organizations have provoked orkers to search for alternative from free decisions and the lack of promotional chances. The employers generally have been able to rise more convincing arguments regarding the legality of their actions when they are able to supply a series of performance appraisals that document the performance issues related to the case. ” The performance appraisals, if completed right, will also document areas where the worker was given response about improving their performance and what policies were put in position to aid the worker improve. Bartol et al (1990) 2. 1 Challenges of Performance Management Systems and Customer Retention Our previous writers have initiated that the causes for lack of achievement with traditional performance management in fiscal institutions were not because of the theory and excellent intentions, but because of carrying out problems. These execution problems included the following: 1. The workers objectives were set in a vacuum and not connected to the larger business background for the department, division or company; 2. workers objectives were not representative of the whole job; 3.
Objectives were often kept a secret and not shared among individuals and teams to provide HRM a better understanding of relationships, hand-offs, and overlaps; 4. response, to the extent provided, was typically one way only, from director to assistant; 5. The key components of the process were not associated to operate independently but as a whole system; and 6. Expansion planning was less important, and often forgotten. 7. Bevan and Thompson caution the general application of performance management systems from organization to organization.
They state “There is almost an implicit assumption that the model can fit all situations. However, there are differences between highly centralized and decentralized organizations that are unionized and those that are not. ” In a research we found that the ‘Public sector union representation was significantly and negatively connected to complaints concerning performance evaluation, when contrasted to non-public division unions. ” The study further pointed out that unionization leads to a more recognized management practices specifically related to performance management and HRM consumer retention performance.
The resources evaluated have captured significant dynamics on the concepts of management in the premise of a variety of management models and disputes shaped by the desire to promote pro-business substantiality in management which will convert into enhance consumer contentment and thus consumer retention. 2. 12 Leadership at UPS An essential query that needs to be addressed in package delivery industry is what method of leadership will make possible the growth of a culture that will connect all stakeholders in a performance management system, which ought to support shopper approval, and hence long term consumer commitment.
This function of leadership can be supported by and performed through a well-designed performance management system. “Leadership is a subject that has long excited interest among people. The term connotes images of powerful, dynamic individuals who command victorious armies, direct corporate empires from atop gleaming skyscrapers, or shape the course of nations. The ability to influence a group toward the accomplishment of its objectives A more difficult definition of leadership is “the essential force behind victorious organizations and that to create vital and possible organizations leadership is essential to assist organizations build up a new dream of what they can be then assemble the organizational change toward the new dream. ” (Bennis ; Nanus ) Lippitt adds a dissimilar perspective on the definition of leadership they state that “Leadership can be defined as getting HRM moving in a course making a choice and sustaining paths they characteristically wouldn’t have chosen. The process wherein an individual member of a group or organization influences the interpretation of events, the choice of objectives and strategies, the organization of work activities, the motivation of HRM achieve the objectives, the maintenance of cooperative relationships, the development of skills and confidence by members, and the enlistment of support and cooperation from individuals outside the group or organization. ” 2. 13 The Forces Driving the Changes in Leadership There are a number of common and financial forces driving change in leadership. After all this i believe that class “…. much sought after, much maligned common entity, which is disappearing like a species that has survived its evolutionary time” Secondly; demographic changes have created a more diverse society. Mead (2002) comments that, employees in a environment open to diversity are authorized to use their full ability. As a result, they, their work, and the organization as a whole benefit from this. ” The third important change is a transfer from what was referred to as the baby-boomer age group to the gold collar employee. When demand for talent so outdo supply, surprising salaries, additional benefits, and mimosas are just the starting. Work is not about paying the rental fee; it’s about self-fulfillment (Munk). One has to agree that the need to cultivate and forcefully use those brains is developing into a business religion. ” This will become more and more difficult as there is a rising shortage of skilled manual labor and it will need tough leadership abilities to attract the best individuals to an organization (Lee). Once attracted to an organization it will also mean producing a culture where imagination, collaboration and resiliency are the effective words.
In precis, the forces driving change in leadership: work changes, diversity topics, increased demand for expert manual labor, demographic changes and lack of tough leadership skills are important and need to be tackled. I find it complicated to define what is meant by leadership since the context is continually changing and challenging new ways. An effectual performance management system identifies these changes and presents a framework for meeting the leadership challenges of a changing workforce and consumer requirements. 2. 4 Leadership versus Management The differences and similarities linking leadership and management continue to be discussed in the literature which elevates the question: Is performance management a leadership or managerial function? The limitations of looking at leadership and management as equally restricted, would be to provide an unfinished image, and that there is no reason to be achieved by doing so, and that in doing so it would produce naive stereotypes, such a tagging Police as managers or leaders when both are needed to be victorious.
I personally believe that “management and leadership are not jointly limited; in fact, it might be said that leadership is the topmost module of management” He also relates leadership to right brain thinking and management to left brain’ thinking. The left brain deals with common sense, vocabulary, parts and particulars, psychoanalysis, chronological thinking, and is time-bound. The right brain works more with feelings, pictures, associations, synthesis, simultaneous and holistic thoughts and is time free.
Whether leadership and management are definitely dissimilar or survive as different points on a continuum of management and leadership, it is frequently complex work world to say where one begins and the other ends. The separating of management from leadership, that is pure nonsense according to me, and as much nonsense as separating management from entrepreneurship. Those are part and package of the same job. They are different to be sure, but only as different as the right hand from the left or the nose from the mouth. They belong to the same body. (Cited in Galagan,) The theory of management and leadership, whether distinct or on a continuum, both have their place in determining the success of a performance management system Grote recognizes six responsibilities in performance management. The responsibilities for observing and documenting performance, updating and reworking objectives and performance standards could be considered at the managerial end of the continuum. Encouraging, coaching, providing developmental experiences and strengthen behavior could be thought of as at the leadership end of that continuum.
It would be hard to be perfect about where one starts and the other ends. However, from the previous, it would be sensible to end that effective performance management requires that managers can move happily throughout the continuum of managerial and leadership behaviors with equal effortlessness. To make sure organizational efficiency, leaders in associations need to influence the impact of superseding variables to assist workers stability construction with the construction ability.
Effective performance management methods provide a framework for the continuing conversation, scheduling and priority setting that are essential if this construction ability balance is to be attained in the day to day activities of the organization. Empowerment explains the foundation needed to balance the topics of task and association to produce a culture that supports the individual worker to become self- determined and liable. The responsibility of a leader is to form a culture that supports the individual worker to become self-determined and liable within a performance management system.
It is also very obvious from the literature that the Alignment of an organization’s culture with its business strategy, work processes and responsibilities, and its human resources strategies, is vital to organizational conquest nowadays. The organization’s performance management system can be a influential tool for attaining this position. Vestal et al Transformational leadership appears to have a influential influence on job contentment both directly and indirectly through its influence on a person’s intrinsic task inspiration (empowerment).
Transactional leadership, on the other hand, has no consequence on empowerment; although it does have a direct consequence on job contentment Bass’s suggestion that transformational leadership increases the effects of transactional leadership is also resoundingly apparent. Passive management by exemption is negatively related to job contentment and empowerment. There is no leadership theory that will provide all the responds to designing, executing and engaging Police employees in a performance management system.
Nevertheless theories about proper stress on chore and relationship, flexible leadership behaviors, output and ability, empowerment and faith provide insight to what makes a leader successful. A more promising option is to inspect leadership in terms of numerous distinctive but unified influence processes at the dyadic, group and organizational level. While a variety of views exists, it can be completed that the forces for change from exterior and inside organizations are creating impacts.
Workforces are altering in both variety and in the hope that are brought to the place of work, thus managers have to be able to move happily between transformational and transactional focuses. The culture and the performance management system chosen as a result of this project will need to support these concepts. 2. 15 The Problem Studies shows that at the starting of 2000, 400 million wireless devices were installed globally, with that figure expected to raise to one billion by the ending of 2002, says Robert Conner, director of interactive marketing at UPS. The manner people obtain information in the upcoming years is going to be completely unlike than the manner they’re doing it at present. Companies like UPS must be on top of this and be certain we’re providing for our clientele’s requirements,” he says. Being the planet’s biggest small parcel transportation supplier means that UPS clientele anticipate the company to be the marketplace head in every feature of its services. “These days, the information that goes along with each parcel we dispatch has become as vital to the client as the parcel itself,” Conner says. Features such as just-in-time supply have made it very essential that clientele be able to obtain time-critical information about their shipments. ” “For instance, we deliver 13. 1 million parcels every day. Clientele track three million of those 13. 1 million parcels every day via the UPS website,” he continues. “These clientele, as well as research firms, told us that they required being able to access UPS shipment information while travelling, as easily as they can from their office desktops, devoid of having to call our phone centres or locate a place to plug in a laptop.
With the majority of these cell phone consumers having access to hand-held wireless devices, we thought that the finest way to meet their requirements would be to make the information reachable to them via a wireless solution. ” 2. 16 The Solution UPS started its hunt for a wireless platform by recognizing and calculating 10 of the top companies in the industry. After a careful assessment, the company selected Air2Web’s mobile Internet platform, “Air2Web was much superior to the opposition,” Conner says. We wanted to achieve the broadest piece of the cell phone market possible-and that’s what Air2Web presented to us. Most of the other solutions we looked at were restricted to WAP phone solutions only, and that just wasn’t sufficient. With Air2Web, we are able to transport shipment information to our clientele via one-way and two-way SMS phones-which are the major piece of the mobile market-WAP phones, the Palm VII and RIM pagers. As long as users of these devices have text messaging activated, we can hit 94 percent of the mobile audience with the Air2Web solution. “
Air2Web’s platform guards companies from the numerous challenges to going wireless and lets them rapidly and effortlessly make the complex leap into the wireless world. Air2Web specially allowed UPS to promptly make and execute a vigorous strategy for distributing wireless content, build up an application specially optimized to the abilities of all present and future wireless devices, and install interactive multimedia applications to any digital wireless device, on any carrier, or across any kind of network. Air2Web powered applications leverage a company’s existing back-end systems-all in a safe and scalable atmosphere.
Prior to choosing Air2Web, UPS had resolute that the four wireless access features clientele wanted most were: 1. To be able to track a parcel they had sent 2. To find out how much it would cost to ship a parcel using either next-day, 2-day, or 3-day air or ground service 3. To know the accurate in-transit time, and 4. To find the nearby drop-off box. Days ago, when making these same four features available to clientele via the Internet, UPS had developed modified application program interfaces (APIs) for all of these functions.
Having these APIs already written gave UPS’s wireless explanation an important head start. The company was able to merely give Air2Web access to the existing code, which Air2Web then cut and formatted to bind the statistics in to its wireless platform and make it accessible to any cell phone user despite of carrier or device. As of September 2000, UPS clientele have been signing up for this wireless service at no additional cost by registering online at the company’s website www. ups. com.
Conner and the UPS administration are tremendously contented by the victory and reputation of its new wireless services. “In the initial month alone we’ve had thousands of clientele sign up, and we haven’t even started our PR or promotion campaigns,” he said. “The clientele signing up have just been visiting ups. com and discovering on their own the link to our wireless service. They have been registering, and vigorously using, their devices to track their parcels, find out how much they charge to ship, where they can drop them off and what the time in-transit will be.
We’ve heard nothing but optimistic reaction to this service. ” While the initial start of wireless services via Air2Web’s platform was US-based, UPS plans to roll the services out worldwide early subsequent year. “As we progress further internationally, we will carry on seeking to deploy wireless functionality to supplementary types of devices,” Conner says. “We will be able to provide all types of PDA units, in addition to the PALM devices, and all kinds of pagers so that any device with text-messaging capabilities will be able to access UPS shipment information.
As we develop, we will continue to deploy and develop our wireless policies, and I am 100 percent convinced that Air2Web will make that probable. ” UPS also expect that its Air2Web solution will result in increased cost savings and the chance to produce new revenue. “At this point, all of the wireless services we present have been value-added at no extra cost to our clientele,” Conner explains. “We do, however, expect gaining a return on our investment through cost savings ensuing from a lower demand on our phone centres, as public access information through their wireless device rather than calling in.
We also plan to present best services, such as automatic notification when an urgent shipment has arrived or been received. Clientele has told us they are attracted in these types o