Motivation system at FedEx

FedEx is the world’s largest express transportation company, with a presence in over 220 countries, delivering on average over 6 million shipments per day and covering 375 airports worldwide. It was established in 1971 by company’s present chairman, president and chief executive officer (CEO) Frederick W. Smith. The company has been listed on New York Stock Exchange since 1978 and it reported $29.4 billion revenue for financial year 20061.
Taking into account the size of FedEx and the fact that it has more than 260,000 employees and contractors around the globe, one can imagine complexity of motivation process involved. The diversity of the cultural background of the workers implies multiple approaches and techniques.
• Existence needs are those necessary for survival, or continued existence of the person.
• Relatedness needs are concerned with needs to interact with others. They include the need to be part of a group and belonging to a valued organisation.
• Growth needs are at the highest level and include people’s desire for developing their potential and internal esteem.
Alderfer suggested that individuals move through the hierarchy, from existence needs to relatedness needs to growth needs, as each become satisfied. In this model one or more needs can be operating as motivators at the same time. Alderfer claimed that continued frustration at one level can result in a person regressing to the level below. This is shown schematically in a Figure 1.
Figure 1: Motivation in ERG theory3.
Goal-setting Theory
This theory states that intentions – expressed as goals – can be a major source of work motivation4. The level of motivation may depend on a range of issues such as5:
• Goal difficulty: up to certain point motivation of the employee raises as goal difficulty increases. Even though demanding objectives can be source of frustration and decrease employee’s motivation, it is believed that best...

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