SCHOOL OF BUISNESS

Prepared by:

Khalil Zarzour

Submitted To:

Dr.Rola Estphen

A case submitted in partial fulfillment of the requirement for the course:

Fall 2010-2011

Case 15-2
 At Globe Metallurgical, Training is a Way of Life

Brief summary:
Globe Metallurgical is small firms produce metal products.

At the early of 1980s the company faced problems and this affects its position on the
market and gives an opportunity to competitors to gain more and more.

To fight this tailspin and stop losing business, managers notice that some minor
changes would not save the firm, so they start to find what might lead to major
improvement.

Managers word hard to achieve to main points:

1. The lowest- cost

2. Higher quality producer in US

For that reasons Globe’s implement a quality improvement program, nicknamed

QEC (standing for quality, efficiency, and cost) and training employee is the major
component of this program.

Globe exposes the new employee to quality system training to improve their skills
and for faster adaptation.

By this program the company achieve many awards and quality improvements .

Question 1:
In your opinion, did employee training play a key role in Globe’s QEC program?
Explain your answer.

First of all, we should define what training is to make a clear image about its role in
the quality improvement program nicknamed QEC (standing for quality, efficiency
and cost).

Training is a learning process that involves the acquisition of knowledge, sharpening

of skills, concepts, rules, or changing of attitudes and behaviors to enhance the
performance of employees. Once the performance develops automatically the
quality improve in an efficient way with less cost.

Since, Globe’s is a small firm so it should use a certain type of training which is Cross-
training. Cross-training involves teaching an employee who was hired to perform one
job function the skills required to perform other job functions.

Employee training plays a key role in Globe’s QEC because:

 A well designed program can help reduce costs, improve employee morale,
reduce turnover, and increase productivity. It can also give a company
greater scheduling flexibility, and may even lead to operational
improvements.
 Greater job satisfaction among employees. Training demonstrates that the
company has faith in employees' abilities and wants to provide them with
opportunities for career growth.
 Trained employees usually feel that their jobs have been enriched, and they
often suggest creative and cost-effective improvements.
 The ability of cross-trained employees to fill in during absences, vacations,
and peak demand periods can reduce the costs involved in hiring and training
temporary workers or new employees.
Finally , To be more effective, a cross-training program must be carefully planned
and organized. It cannot be implemented all of a sudden during a crisis. For one
thing, there are a number of decisions that a company must make before the
program can get started. For example, it is important to decide who will be eligible
for training, whether the training will be mandatory or voluntary, whether the
training will be restricted within job classifications or open to other classifications,
and whether it will be administered internally or externally.
Role of training
 Question 2:
why do you believe that Globe is reluctant to hire outside consultants to conduct
training sessions? Do you believe that company’s policy to provide training in-house
is motivated by a desire to save money, or by some other reason?

Globe is reluctant to hire outside consultants to conduct training sessions because

An outside consultant helps many aspects of development and able to conduct
many analysis

 Managerial and behavioral skills and knowledge

 Conceptual and general knowledge
 Long term vision
 Organizational viability and transformational process
 To match employee specifications with job requirements and organizational
needs
 Technological advances
 Organizational complexity
 Human Relations
 Change in job assignment
 To prepare for changing demands
 To prevent obsolescence
 To align with job specifications
 To prepare for next job
 To enhance productivity
 Career and Succession planning
 Benchmarking with outside world

HELPS TO CONDUCT:
 Organizational Analysis
 Departmental Analysis
 Job / Role Analysis
 Manpower Analysis
 Organizational goals and objectives
 work planning systems
 Quality Circle or sphere(management, assurance, control)
  Training progress
 Observation of behavior
 Motivation
 Impact on the job behavior
 Organizational parameters like Productivity / Quality / Morale etc
 Trainee’s reactions regarding usefulness, coverage, depth, method and skills.

Saving money is not the major reason of using in-house training there are many
other important reasons behind using in-house training are:
1-Working toward the Same Goal:

In-house training programs also become an efficient way of communicating

established company goals. An in-house training program provides the means to
have everyone hear the same message at the same time

2- Offers great flexibility:

Another advantage of establishing an in-house training program is that it offers great

flexibility in terms of scheduling classes. Many firms choose class hours that do not
conflict with work schedules and many have established a policy where study time is
set up as being half on company time and half on employees' time.

3-Saving money:

There is also a significant cost advantage to setting up an in-house training program.

Ten to 20 individuals can be trained in a focused and extensive course of study for
the same cost.
Question 3:

What type of company would benefit by benchmarking against Globe’s approach to

employee training?

At first, Benchmarking is the sharing of information between companies so that

both can improve.

In general any company can benefit from benchmarking against Globe’s approach to
employee training if not totally but will benefit in some angel or areas.

What differentiate Globe is that it developed an approach of training that matched

its culture, it did not copy the approach of other company, this will attract small
business which is in same type as Globe’s and in competition will benefit more than
any other company’s because of the type, culture, nature and many other commons.

Sometimes companies without HR effective performance they tried to benchmark to

success and avoid problems with employee and adaptation with new changes that
might improve the company.

Finally, employee owned company might benefit from this benchmarking in order to
walk toward the right direction and improve their position in the market they
learned from others.