United Parcel Services (UPS) was established in 1907 to provide messenger services. UPS has become the world largest package delivery company and a leading supplier of transport and logistics services to businesses with global operations (UPS, 2016). The strong values of the founder, James E. Casey of customer service, fair rates, 24-hour service, and reliability gave the start-up an edge over its competitors in messenger service (UPS, 2016). Since its inception in 1907, UPS has overcome various challenges and had to transform itself in order to survive and thrive. The advent of the telephone and the automobile reduced the demand for messenger services and the business begun offering home deliveries for retail purchases, before building its capabilities as a common carrier. UPS aggressive pursuit for growth led it to become the first company to offer air service through privately operated airlines in 1929 (UPS, 2016). In 2000, UPS launched its global supply chain solutions to provide supply chain services to businesses that seek to optimize their global supply chain (UPS, 2016).
UPS has reported strong financial performance delivering value to shareholder. UPS reported a $1.57 adjusted diluted earnings per share in the fourth quarter of 2015 that represented a 26% growth indicating a strong growth in profitability over the period (UPS, 2016). UPS reported a 2.3% growth in total revenues earned across its three reporting segments, U.S. Domestic Package, International Package, and Supply Chain & Freight (UPS, 2016). In 2015, UPS generated free cash flows of $5.0 billion out of which they paid $2.5 billion in dividends to shareholders.
International firms like UPS face various staffing challenges in hiring and managing international employees (Mössler, 2003). Mössler (2003) suggests three approaches to international staffing that include ethnocentric staffing, polycentric staffing, and geocentric staffing. Ethnocentric staffing involves hiring home country nationals for top overseas positions (Mössler, 2003). The advantage of this approach is that it ensures that the top executives are people who are well experienced in the operations and the values of the firm. However, a main disadvantage with this approach is that it does not facilitate a transfer of the local knowledge and customs to the organization ( Mössler, 2003).
Polycentric approach involves assigning top overseas positions to the locals while retaining the global positions to the home country nationals (Mössler, 2003). The advantage of this approach is that it facilitates the organization to learn about the local knowledge and customs making it able to adapt better to the local market conditions and give it a competitive edge (Mössler, 2003). However, this approach may result in knowledge gaps between the local mangers and their corporate counter parts.
Geocentric approach involves hiring the best candidate for the job irrespective of their country of origin (Mössler, 2003). The advantage of this approach is that it is extremely flexible and increases the ability of the organization to learn about different markets in which the company operates. However, this approach will result in problems relocating workers due to the relocation costs and the immigration laws (Mössler, 2003).
References
Mössler, K. (2003). The Pros and Cons of International Staffing Policies. Munich: GRIN Verlag
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UPS,. (2016). UPS: About Us. Ups.com. Retrieved 13 April 2016, from
https://www.ups.com/content/cn/en/about/history/2007.html?WT.svl=SubNav
