Several theories have been created by behavioral and social scientists to define the proper way to grasp and address the key to the success and productivity of an organization. These organizational theories describe various approaches that supervisors and managers at UPS may take to meet their leadership abilities in order to for efficient and increased rates of productivity within the company’s outlets. Some of the theories that UPS has been utilizing to enable it to gain a competitive advantage include classical theory, Neoclassical theory, modern theory, contingency theory, and motivation theory.
Classical Theory
Through the classical theory, UPS has been addressing it primary aspects of its formal organizational structure. To maximize the efficiency of its network and to ensure that it utilizes it assets appropriately, the company has been incorporating the four principles of classical theories in an efficient, manner (Kaul, 2020). In all its departments, division of labor has been playing a critical role, and with those various services within the company stores as well as its centralized officer have been conducted efficiently. Through this theory, the company has been able to ensure delivery of goods and servicing of various customers is conducted on time (Bansal, 2018). Through classical theory, the company has been able to ensure all delivery means are always operational.
Through scalar and functional processes, the management has always ensured that there exists a healthy relationship that will always contribute positively to the company. Additionally, the structure and the span of control have been contributive to the upward growth and expansion of the company (Carroll and Gillen, 2019). In the future, a span of control will be useful due to the need to monitor the increased number of employees. During such occasions, the structural aspect of classical theory will also come in handy.
Neo-classical theory
Through the neoclassical theory, the company has always ensured that its employees feel valued within the company’s setting. As a globally operating organization, it ensures that there exist no instances of discrimination in the workplace (Indeed Editorial Team, 2022). Additionally, UPS has always ensured that employees are motivated for maximum output and to boost their morale (Majhi and Dansana, 2021). UPS management intends to create People Led, a forum in which the firm will disclose the steps it is doing to increase worker experience and raise the possibility that an employee will promote United Parcel Service as a wonderful place to work. The corporation has set an 80 percent or greater likelihood to recommend an aim for 2023.
Modern Theory
Ever since it was founded the company has been advancing and incorporating modern strategies that aim to profit the company. With the large volume of assets, sales, and inventory, the company has always adopted Modern theories for efficient and improved functionality. Through this theory, the company has been able to change and adopted as per the prevailing environmental, internal, and external factors. For instance, ever since it was founded in 1907, the company has been changing and adopting the modernization of the world (Naumov and Ermolenko, 2020). It has been able to modify the packaging criteria and means of mail and even consider the incorporation of faster means of delivery of goods.
Additionally, the company has greatly modernized and splits its international packaging into several few services such as UPS Standard, UPS Worldwide Saver, UPS, Worldwide Express Plus, UPS Worldwide Expedited, and UPS Worldwide Express (About UPS, 2022). In addition, the company has set a sustainable goal of contributing to zero carbon emission by 2050 which is ethically and environmentally recommended (UPS Financial releases, 2021). The company is driven by innovation and it had began adopting Modec electric-powered van as one of its major strategies ensuring there is zero carbon emission (Folger, 2021). The company has also ensured that it adopts a modernized shield logo and therefore it has been modifying different logos since 1907.
Contingency Theory
Through the contingency theories, the centralized management has been impactful in initiating the making the decision that is adopted in several branches and stores. The decision that is usually made always undergoes scrutiny and it is always ensured that the upper or top leaders approve the decision (Shala, Prebreza, and Ramosaj, 2021, p.3). UPS’ operating culture has remained in the manner that its management is centralized. When it comes to initiation of the changes and incorporation of innovative ways, the decision is always conducted by the top management team, not employees.
Motivation Theory
The company values its products and therefore they have always ensured that their employees experience the best workplace for greater productivity. The company management has been ensuring that its employees are properly treated and they are given several incentives (Wuryani et al., 2021, p. 367). Through these, the employees always have in mind that the company is always supportive (Anderman, 2020). The company also ensures that each employee’s rights and personal space are not violated while at work.
Services of UPS company
As per the findings of the investigation, the organization has a stellar reputation and employs incredibly efficient parcel delivery techniques. It derives the majority of its revenue from activities in the United States, although it is interested in growing worldwide (Ackerman and Strickland, 2018). For more than 100 years the company has evolved from small courier incorporation into a leading provider of sea, air, land, and electronic services that functions in more than 200 nations worldwide (Shabrov, Tishkevich, and Slesaryonok, 2022). The company through its stores offers three main categories of services and products, mailboxes, packaging and shipping, and document or printing services.
In the UPS store, the company assists the local business individuals to get their mail cut by using the direct mail promotion services. Customers are also assisted with all their needs and queries regarding mail services (The UPS Store, Inc, 2022). Furthermore, the UPS Store Certified Packaging Experts are concerned with packing and shipping several parcels from letters to larger, heavier items (About UPS, 2022). Notary services, passport and ID photographs, mailing supplies, computer access, shredding, office, and design services are examples of in-store services (The UPS Store, Inc, 2022). Furthermore, the small business services of the company include providing support services to local firms in several regions. Community (Bansal, 2018). Lastly, the company also ensures that its franchisee does not run out of services and products to offer to various consumers that visit various stores worldwide.
With the reliance on the Modern theory, the company is determined to improve its customers’ experience by ensuring it implements the strategy of customer First. The philosophy of customer first of the organization is to give the greatest possible digital experience, supported by its worldwide smart logistics network (Shabrov, Tishkevich, and Slesaryonok, 2022). The firm will highlight the steps it is doing to make doing business with United Parcel Service more convenient and easier. Customer First prioritizes eliminating friction from doing business with United Parcel Service, Inc., as measured by elevation in Net Promoter Score (NPS) (Shabrov, Tishkevich, and Slesaryonok, 2022). The organization intends to achieve a Net Promoter Score of 50 or better by 2023 (Post &Parcel, 2021). Through this strategy, the company will be able to build a healthy customer relationship with its customers who will in turn become potential clients. The strategy also serves a greater purpose in customer retention and brand promotion.
Conclusion
Through theories, the company is in a position of accomplishing the plans that the company sets to achieve. The theories act as the driving force of the company in several dimensions through them the company is able to maintain its competitive advantage. The company has also been ensuring that its addresses both customer and employee concerns. In the coming future adoption of various strategies such as advocating for zero carbon emission is a great means of attracting more activists and as well as customers to purchase its products. The creation of unique delivery means such as through air, land, and sea is a great way of building its brand. The company is also able to coordinate its services, ensuring that the activities that are done in the central outlet are also done in other branches. Continuous adoption of various cultures that are friendly to both the environment, customers, and employees, is also one of the means strategies that ensure its stable competitive advantage.
Reference List
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