Turner Industries: aasignmnet Mid term set a
Turner Industries, a family – 0perated carpeting manufacturer, was started 49 years ago
just outside Jackson Mississippi. Today the company is the third largest producer of
carpeting in the United States.
With revenue of over $ I billion, Turner over 6,000
workers at this now-massive facility.
Five years ago, Turner developed an ‘Employee initiative’ programme to instill
commitment to customer satisfaction throughout the company. The company’s
employees play a vital role in this programme. A flat organisational structure gives
employees, working in a self managed teams, significant authority and autonomy.
Production work teams can undertake training, schedule work, and determine in a selfmanaged teams, significant authority and autonomy. Production work teams can
undertake training, schedule work, and determine individual performance objectives. Any
production process can be halted if an employee believes that quality is suffering or
safety is jeopardised.
Teams form the core of Turner’s quality improvement effort. The company formed 25
‘Proactive Teams’ to address specific manufacturing and production challenges. In
addition, selected teams work on ways to enhance the relationship between Turner and its
suppliers. The teams, in general, respond to customers’ comments, work on developing
new products, and create activities that bring employees together in social situations
(sporting activities, picnics and fund raising efforts for employee supported charities).
With diverse opportunities to affect the company, the teams demonstrate a fundamental
commitment to customer satisfaction – even creating marketing opportunities that
generate additional revenue.
Management and motivating of workforce require special care on the part of Turner’s
management. Training and recognition is the key. In a single year, the company invests $
1,600 per employee in training. Recognition comes in the form of participation in teams,
leadership opportunities and interaction with top management.
Turner’s effort at improving its management and human resource practices have allowed
it to reduce the number of managers; lower its overall defection rate ; and increase
quality, efficiency, and customers satisfaction. Revenues have increased significantly
over the last four years. As a result of focus on employees needs, Turner has won over 20
quality awards and was voted the outstanding employer in the South in a regional
competition. The company has been written about in the ‘Top 200 Employers’ in the US
and its efforts to involve employees in determining the firm’s direction have very
successful, enhancing customer satisfaction and improving business performance.
Questions
1..
Identify training needs at Turner. Do you believe a company can spend too
much training employees? Why or why not?
2. How would you design the training process. Describe in terms of technique,
process for turner industries.
Taken from the Comprehensive Examination Booklet of ICFAI Business School, Second
Semester of The Integrated PGDBA Programme.
Faddish Training
Rajput Insurance Company, RIC, is a large insurance brokerage firm operating from the
beautiful town of Udaipur in Rajasthan. The company was founded in 1922 by Mr Rann
Singh, grandfather of the present owner, Madheo Singh, grandfather of the present
owner, Madheo singh Ji. RIC offers complete line of insurance services. RIC faces stiff
competition. As is true with other insurance companies, RIC lays emphasises on sales. In
fact, over half of all corporate employees are involved in sales, to some degree.
Because the sales activity is so important to RIC, the company spends a considerable
amount of time, effort and money on sales training. Its Training Director, Shiv Raman, is
constantly on the look out for new training techniques that can improve sales and profits.
He recently uncovered one that he had never heard of before, but which seemed to have
some promise. He immediately scheduled a meeting with his boss, R L Agarwal, Vice
President (Human Resources), RIC, to discuss the possibility of sending some sales
people to this new training course.
R L Agarwal : ‘Come in Shiv Raman. What’s this I hear about a new sales training
course?’
Shiv Raman : ‘Well, as you say, sir, I always try to keep up – to – date on the latest in
training techniques so that we can remain competitive. I got a flyer yesterday in the mail
announcing a new approach to sales training. The course is offered by revered Bagwan
Sri Lansing. Apparently, the course involves flying the trainees off to a scheduled spot in
the Himalayas near Leh, where they undergo, synchronised chanting and transcendental
mediation. The brochure is brimming with personal testimonials from ‘million – dollar’
sales people; who claim to have been helped immeasurably by the training. I already have
10 people in mind to send to the training session next month, but before I speak to them, I
thought I will discuss it with you.’
R L Agarwal : ‘How much does it cost’?
Shiv Raman : It is not bad. Only RS 50,000 per person. And there’s a 10 per cent
discount if we send more than five people.’
R.L. Agarwal: ‘I don’t know, Shiv Raman. That sounds a little steep to me. Beside,
Madheo Sing Ji has been bugging me, again about the results of our last training effort.
He wants to know whether all the money we’re spending on sales training is really
paying off. As you know, sales and profits are down this quarter and Madheo Sing Ji is
looking for places to cut corners. I am afraid that if we can’t demonstrate a payoff
somehow from our training courses, he is going to pull the rug out from under us.’
Shiv Raman: ‘But we evaluate all our training programmes! The last one got rave reviews
from all the participants. Remember, how they said that they hardly had time to enjoy and
do shopping at Singapore, because they were so busy learning about proper deal closing
techniques?’
R L Agarwal: ‘That’s true, Shiv Raman. But Madheo Singh Ji wants more proof than just
the reactions of the sales people. He wants more tangible results. Now before we buy into
any more sales training programme, I want you to develop a plan for evaluation of the
training effect.’
Questions
1.
What is meant by the statement that training is extremely ‘faddish’?
2.
How can Rajput Insurance Company avoid becoming a victim of the
faddishness of training business ?
3.
Develop a detailed training evaluation strategy that Shiv Raman can
present to R L Agawal, which would provide evidence of the effectivness of a
particular training technique.
Adopted from question paper on Human Resources Development paper of
Comprehensive Examination held for second for second semester in May 2003 at the
Birla Institute of Technology and Science, Pilani.