UNITED ARAB EMIRATES UNIVERSITY

Spring 2010 HUMAN RESOURCE MANAGEMENT

Group Project

Aramex
Employee Training and Development

INDEX :

Introduction ...... 3 1. Basic information:

History ...... 4 Mission and vision . 5 Markets . 5 Products and Services provided 5 - 8

2. HR practices and policies ... . 8 - 9 3. Integration of HRM system ... . 10 4. Training and development
Training process . 11 Type of training . . 11 Assessing training needs ..................... 12 Deciding who to train . 12 - 13 Challenges for the trainer ... 13

2 |Page

Focus on leaders and leadership development .. 14

Equal opportunities . 14 - 13

Evaluation .. 14 - 15

Future strategies .. . 15 - 17

4. Recommend HR practices Conclusion References

Introduction

You can have the greatest business model in the world and the best systems, but if your people cant handle the growth, youre still behind. If your company isnt investing in training, think about all the companies you admire as models for doing business right. Youll not only find that theyve got a good training program, but training is a part of their culture.
3 |Page

Most managers recognize that continuous learning in today's marketplace is essential. They know they are in the "Information Age." They want a competitive high performance organization and ARAMEX one of them. In our project we take the training and development process as an important element in the human resource management and how Aramex implant it.

1. Basic Information History:

Aramex have been Founded by Fadi Ghandour in 1982 as express delivery service, with a small office in Jordan. Fadi Ali Ghandour (1959- Now) is a Jordanian/Lebanese businessman and entrepreneur mostly known for being the founder and CEO of the world's 5th largest courier Aramex.Ghandour founded Aramex in 1982 in Amman-Jordan and serves as its CEO since then. Ghandour also is a founding partner in Maktoob.com, the largest Arab online community. He is a member of the board of directors of Abraaj Capital, and sits on the advisory board of the Suliman S. Olayan School of Business of the American University of Beirut From 2003 to 2005. Ghandour was also the Middle East and North Africa area chairman of the Young Presidents' Organization. And he continues to be actively involved in community socio-economic development and NGO work in the region.

4 |Page

The Journey Started by providing delivery services for US based Companies (FedEx, Purolator, Burlington, Emery and Airborne Express), aiming to build a regional distribution center which can cohabit with the big players and provide them the delivery service in a region not yet conquered by them and only served by DHL. In 1990, ARAMEX co-founded with Airborne the Overseas Express Carriers network, headed by Airborne Express, using a common technology (Airborne Tracking System). ARAMEX started to grow in the Middle Eastern countries, and allowed the network big players to explore this region. In 1997, ARAMEX was the first Arab Company to be listed on the NASDAQ (nearly $200M/Year/3200 Emp.). ARAMEX business depends on the private sector, which is highly unusual in the ARAB world, which depends mainly on government contracts. In 2003, it took the network leadership after a huge change in the alliance due to the airborne acquisition by DHL, after years in 2005; ARAMEX went public again, but this time on the Dubai Financial Market.

Mission :
Become the 5th global logistics provider by 2010 Achieve geographical expansion. Achieve revenue growth. Achieve network stability Acquire more and more clients. Acquire new knowledge. Acquire more companies in new chosen markets.

Vision:
Our business success will ultimately only be sustained by the quality of our people.

Markets:
ARAMEX have 230 offices covering 44 countries and 664 Vehicles, 465 Bikes.

5 |Page

 Products and Services provided: 1)

Express:
International Express:
Aramex provides a global solution for moving time-sensitive documents and parcels door-to-door around the world and within a variety of transit time options that will meet your every need. Aramex International Express services offer you real-time tracking information, Proof of Delivery of your shipments, and the ability to request delivery notification by Email or SMS. Document Express Through an extensive network and competitive shipping rates, Aramex guarantees on time door-to-door delivery of your urgent documents to any worldwide destination Parcel Express Your non document shipments are specially packaged, swiftly shipped and attentively cleared through customs to arrive on time to any global destination. Express Inbound In addition to exporting, Aramex enables you to import shipments from any destination in its global network to your door step. Deferred Express For non-priority express shipments, Aramex offers Deferred Express as an economical delivery alternative to suit your business budget.

Domestic Express: Aramex Domestic Express offers reliable door to door solutions for time-critical packages to be delivered within a country or city. Aramex picks up and delivers your packages within agreed delivery times with the ability to track your shipments online at any time. Same-Day Domestic Aramex guarantees the fastest delivery on the same day of pick up. NextDay Domestic Shipments are picked up and delivered next business day. Deferred Domestic For your important packages that need to be delivered within 3 to 5 days door to door.

6 |Page

2)

Freight:
Land Freight: Extensive Land Network Aramex has one of the largest and most advanced land freight networks in Middle East, United Kingdom and Ireland. Modern truck fleets equipped with GPS-tracking technology, scheduled services and strategically-located terminal hubs, all combine to make Aramex land freight a smart and cost-effective shipping alternative. Customs Clearance and Door Delivery Aramex receives your shipment at sea and air ports or directly from your warehouse, takes care of all clearance procedures or from your warehouse and delivers it to your customers door. Fully Integrated IT network and Tracking Aramex offers 24-hour online tracking plus instant shipping updates by Email or SMS. Multi-Modal Transportation Aramex can avail various modes of transportation to get your shipment(s) delivered to the ultimate consignees. Being a Total Transportation Solutions provider, we can mix modes of shipping for your goods to reach home conveniently and cost effectively. Like air-sea, air-land, sea-land etc. Inter-modal transportation has proved to be a cost-effective and an innovative solution to certain product lines with an outstanding service and delivery system to boot.

Ocean Freight Whether its Full Container Loads (FCL), Less Than Container Loads (LCL), import or export, consolidated or project cargo whatever your requirements may be, Aramex provides comprehensive ocean freight forwarding services. Backed by our global network of offices covering key shipping lines worldwide, highly skilled teams of experts and state of the art technology systems, our ocean freight services will take care of your cargo through the entire shipping cycle, from collection to the delivery to the ultimate consignees.

7 |Page

Air Freight Aramex offers a global and cost effective solution to all of your air freight needs. Through a worldwide network spanning the four corners of the globe, our teams of cargo professionals provide global services and local expertise to ensure complete door-to-door transportation and smooth Customs clearance at all times. Our state-of-the-art technology and network of offices around the world allow total traceability and visibility of your shipments from the moment a job is booked until it is delivered at the final destination.

3) Shopping Services:
Shop&Ship The Aramex Shop&Ship mailbox service allows you to enjoy all the benefits of having a mailing address in the US or the UK without actually living there. This service offers you a personal mailing address in the US and the UK where you can receive your correspondence as well as personal and business packages such as Internet orders, gifts, magazine subscriptions, bank statements and more. Aramex then forwards the mailbox contents to you at very competitive rates, saving you time, effort and money.

Shop the world Aramex places a world of shopping options at your finger tips. Our Shop the World service offers a wide range of shopping choices from world-famous North American and European fashion catalogs, in addition to online retailers. Simply request the items you desire and we will order and deliver them to your doorstep.

2. HR Practices and Polices

Aramex has an HR management system in place including extensive policies and procedures which are part of Aramexs ISO9001:2000 certified quality management system. Key functions of the system include:

8 |Page

1) Recruitment. 2) Training and development. 3) Career planning. Human resources services, as with most Aramex support functions, are coordinated out of the companys central office in Amman, Jordan, which is known as the General Services Office (GSO). The GSO had 180 staff at the end of 2006, of which 5 were dedicated to HR. The company has 51 dedicated human resources and training staff worldwide. In general, all stations with more than 50 people have at least one dedicated HR employee. Recruiting responsibilities are shared between local stations and the GSO. Smaller stations are supported by one HR person who will also have the responsibility for another function in the station such as IT or quality. The human resources department intends to make a significant investment in an HR management tracking system in 2007. Added features of the software will include performance management, succession planning, and training. The expected benefits include better talent management, development of staff and payroll controls. This will also dramatically improve the tracking and reliability of factors such as training and health and safety incidents, which in turn will allow us to better focus our efforts on improved performance in these areas. The table below shows the employment Type that ARAMIX is having in their company it has two type contractor and Employees.

9 |Page

The Chart below shows the Employees per Department in Aramix we can see that the highest number of employees is in Operation department (3188) since it need a lot of practical work. The second one is the customer services (877) since aramix is providing a service so it needs more employees to serve customer as much as they can.

3. Integration Of HRM System

HR professionals contribute to the integration of HR

understanding the business needs of clients as a basis for providing advice participating as advisors with corporate planning officers and with line management teams/clients; proactively advising management on HR issues, decisions and policies; seeking intelligence from other players (e.g. Finance, IT);

10 | P a g e

contributing to the preparation of an environmental scan and advising of implications; communicating with stakeholders; providing HR advice, strategies, tools, and relevant demographic data and reports to managers; engaging and ensuring ongoing discussions with bargaining agents; supporting efforts to mitigate risks; helping clients communicate and promote their plan; helping managers develop mechanisms to track and report on strengths, weaknesses and results of their integrated planning efforts; keeping up-to-date and advising clients on promising practices in integrating HR planning; supporting existing networks/structures (e.g. multidisciplinary teams, professional networks) in their efforts to integrate HR with business planning; and participating in relevant interdepartmental networks, such as the HR Planning Interdepartmental Network (HRPIN), to share information and help develop a greater understanding of HR strategies in use across government.

Employees contribute to the integration of HR and business planning by:

participating at the team level in planning activities designed to help integrate HR and business planning.

4. Training and development

Aramex is a fastgrowing and fastpaced company in a highpressure industry. Every day, thousands of their customers rely on people whom work in aramex to meet many of their critical business needs. Investing in people is important both because it is essential to the health and growth of the business, also because aramex believe in supporting the development of their people.

11 | P a g e

Aramex believed that there people are the most valuable asset, so they invests in building knowledge workers rather than employees. Also Aramex trains and empowers its people and prepares them to act as creative solution providers, as entrepreneurs in their own right. Therefore Aramex has 51 dedicated human resources and training staff worldwide.

1) TRAINING PROCESS
The process to train or educate a person in most situations consists of:

Provide information. Re-enforce through exercises Clarify and review material Test to verify learning

Aramex divided training into three broad categories: Internal training for new hires prepared according to each position. Internal training for current employees as part of their training and development. External training, which is any training that is conducted by an external body (training center, external trainer, university, etc.).

2) TYPE OF TRAINING

(Source: Aramex Sustainability Report 2006)

3) ASSESSING TRAINING NEEDS

12 | P a g e

Training is a means of communicating new knowledge and skills and changing attitudes. It can raise awareness and provide people with the opportunity to explore their existing knowledge and skills. But, to be effective, training should be based on the needs of the people who are being trained. Training needs in aramex are determined by: Aramex policies and procedures, such as those relating to Basic Introductory Training, and those relating to new policies as they emerge, such as the anticipated corporate wide training on sustainability. The needs as identified by aramex stations and by individual employees through trainings need assessments and performance appraisals.

( Survey regard employee needs ) :

(Source: Aramex Sustainability Report 2006)

From the chart above we observe that 59% of the aramex employees who represent the largest number of respondents agree that their leader always encourage them to identify their training need, which shows how aramex is concern with the development and improving the performance of individuals and groups in their organization.

13 | P a g e

(Source: Aramex Sustainability Report 2006)

4) DECIDING WHO TO TRAIN

The success of a training session depends partly on choosing the most appropriate participants. In fact all positions within an organization generally require some sort of training including:

workers, including casual staff supervisors and managers people responsible for purchasing items related to the hazard such as personal protective equipment contractors and regular visitors to the workplace anyone who is potentially at risk and capable of being trained

5) CHALLENGES FACED ARAMEX IN THE TRAINING PROCESS

1. Attracting and maintaining talent 2. Development and succession planning, and handling the numerous acquisitions, which have been both an opportunity but also a challenge to work towards an integrated and improved system after every acquisition. 3. Number of internal training sessions

5. Focus on leaders and leadership development

As a means of finding the best way for their staff to work together to meet customer needs and deliver efficient operations, Aramex has established the concept of teams. Each team is assigned a Leader. These leaders are the backbone of Aramex. They have some responsibility such as: Working with the people

14 | P a g e

Operations and customers on the frontline Making decisions and leading their teams Handling team targets and achievements.

These Leader roles are being increasingly invested in by Aramex, in part because of their importance and also because of staff feedback as noted previously. These leaders are the recognized leadership image of the company. The Leaders concept also offers a great opportunity to enhance equality in the workplace by, for example, increasing the number of women leaders as a means of increasing the number of women in senior and middle management over the mediumterm. There were 1100 leaders in the company at the end of 2006.

6. Equal opportunities

It is Aramex policy to not discriminate on the basis of nationality, color, ethnicity, religion, gender, marital status, personal circumstances, disability or health. We aim to undertake a major effort in 2007 and the following two years to ensure that we are doing everything we can to avoid any systemic discrimination that is arguably present in many places where we operate. We identify some of these labor challenges under Global Workplace Conditions.

o Opportunities for Women

The right of equal opportunity for women is an important issue. It is also a well recognized international issue related to The Middle East. We acknowledge that our performance numbers in this regard are weak, even though they are not significantly out of line with regional performance and indeed are probably better than average regional data.

15 | P a g e

We hold a tremendous respect for the cultures in which we operate, but we do not necessarily buy into some of the cultural validations nor do we view culture as static. We intend to better understand the underlying factors behind our performance numbers to determine what kind of creative solutions or straightforward initiatives might best have a positive impact on the number of women employed and in management. We believe there is a significant and achievable opportunity to break down barriers both in management but also in terms of employees across the network.

7. Evaluation In 2005 we undertook a survey to assess the quality and employee satisfaction with
our training. This followed a period of efforts to improve training, based on prior input on its importance. We were pleased to find that almost 74% of participants at that time felt that the Aramex training had improved over the previous year.

16 | P a g e

7. Future strategies
There are still many categories where dramatic improvements can be made. In response, we have focused our efforts on: 1) 2) 3) 4) Initiating a corporate university. Having dedicated training coordinators and managers in big stations. Developing and maintaining internal training material. Creating qualified trainers in the stations and regions to conduct external training done by external training centers. 1) 40 average hours training per employee, with 100% coverage 2) Women in management: 10% senior, 20% middle, 25% leaders 17 | P a g e

Looking Forward
Key Area and 2007 Goals
Putting Sustainability at the heart of Aramex culture
Implement corporatewide training on Sustainability Establish global network of champions Integrate into performance appraisals

2009 Goals
Have sustainability recognized as overall management framework Aramex Culture of Sustainability is well known throughout the region Accelerated rate of innovation Be in a position to assure quality of engagement against AA1000 40 average hours training per employee, with 100% coverage Women in management: 10% senior, 20% middle, 25% leaders All stations capable of successful certification against SA8000, with regular internal monitoring This extends to major subcontractors

Engaging Employees
Use AccountAbility1000 Stakeholder Engagement Standard to enhance quality of engagement

Opportunities for Development

Launch of Aramex Corporate University 20 average hours training per employee 13% women in middle management

Global Workplace Conditions

Conduct a review of our labor performance against the SA8000

Employee Satisfaction
Establish Employee Satisfaction Index Enhance benefits and address any gaps in benefits across all stations 80% average of Excellent score in satisfaction survey Secure a Top 10 ranking in any external Best Places to Work surveys in the Middle East

18 | P a g e

Conclusion
Aramex will always go the extra mile to deliver not only to their customers, but also to their people, to their stakeholders, and to the communities. There is really no limit to their potential. As Aramex expanding their business they also focus on the quality of their employee. That through the process of training. Generally, we can analyze Aramex effort in implementing the concept of training and how they try to make it a part of their culture and philosophy.

19 | P a g e

 REFRENCES :
http://www.authenticityconsulting.com Aramex Sustainability Report 2006 EXPLORING THE TRAINING PROCESS http://www.healthlink.org.uk Wikipedia, the free encyclopedia http://www.uhv.edu/fin/policy/C/c-18.htm http://www.zeromillion.com/business/personnel/employeetraining.html

20 | P a g e