Human Resource Practices at DHL Company

Human Resource Practices at DHL Company

Introduction

Everything travels fast in the transport industry. Speed is of the essence to keep up with the competition. It is no longer just a case of getting from A to B and being satisfied. These days, companies need to deliver solutions that do the job - and do it well. While a major part of the responsibility is down to the tools of the trade, the rest is reliant on the employee to give of his or her best at all times.

Employees form the backbone of any successful organization. Valued members of staff can make, or break, a company's success, so it is essential that employers do their best to keep them happy. However, one of the most effective ways to create and maintain staff satisfaction is arguably one of the least practiced.

Communication is the key to employee engagement. On a practical level, internal communications help employees to understand a company's vision, values and culture, while on a more subliminal note, good internal communication is one of the most effective ways to build strong relationships and forge a sense of fulfillment.

Company Background and Organization

DHL Worldwide Express was the world's leading international express delivery network. It was privately held and headquartered in Brussels, Belgium. The company was formed in San Francisco in September 1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn. The three were involved in shipping and discovered that, by forwarding the shipping documents by air with an on-board courier, they could reduce the turnaround time of ship in port.

DHL comprised two companies: DHL Airways which based in San Francisco and managed all U.S operation and DHL International which based in Brussels and managed all operations outside the U.S. Each company was the exclusive delivery agent of the other. The main reason DHL is involved in domestic shipping within the U.S is to lower costs and increase the reliability of their international shipment.

In 1990, DHL accounted for only 3% of intra-U.S air express shipment but 20% of overseas shipment from the U.S. DHL grew rapidly and, by 1990, serviced 189 countries, (from exhibit 1). DHL used a hub system to transport shipment around the world. In 1991 the company operated 12 hubs. Within Europe, the U.S, and the Middle-East, DHL generally used owned or leased aircraft to carry its shipments, while on most intercontinental routes it used scheduled airlines. In 1991, 65% of DHL shipments were sent via scheduled airlines and 35% via owned or leased aircraft. In 1990 DHL had 900,000 accounts of which the top 250 account represented 10% of revenues and 15% of shipments.

DHL had only about 10 global contract with customers (represent 1% of revenues), as few multinational corporation (MNC) headquarters had expressed interesting in negotiation such agreements. Most MNCs were decentralized. DHL did have many regional agreements with MNCs as well as contracts in individual country markets.

DHL was organized into nine geographic regions. Regions manager oversaw the relevant country managers and/ ...