Organizational Dynamics and Human Resource Management in Enterprise

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My assignment is dedicated to evaluation the contribution of training procedures in the Enterprise Rent-a-Car, a world-recognized company that provides car rental services all around the world.

In Human Resource an important place is given to training of company's workers and development of their skills and potentials.

Training is the use of systematic and planned instruction activities to promote learning (1 - Armstrong).

The main focus of training and development is on employee's improvement of their professional and personal skills, talents and potentials, so that the company gets in return great quality customer service, better productivity and profitability. While the training is provided for non-managerial employees for improving their skills and qualities, development is for managers to give them better qualification and profound leadership qualities. Training and learning helps employees become more skillful, creative and motivated. They better understand their place and importance in the organizational hierarchy, and get opportunities to move up the career stairway.

Within the organization it is highly important to produce harmonically balanced plan of human resource development linked to the organizational objectives and employee resourcing plan. "Training and development of employees is not an option, it is an instinctive part of the practice of HRM" (2, Dev Raj).

The CIPD have always been accentuating the importance of employee's training for company's prosperity and development. Training provided by professionals must be also supported by employee's motivation towards self-education and improvement. CIPD's structure of training and learning processes is shown below (4)

As CIP researchers underline, there are three main factors that any organization should take into consideration in order to achieve success:

1. Employees should understand clearly their direct responsibilities in an organization;

2. They should be given opportunity to act upon their commitment;

3. They should be provided with supportive learning environment.

When the goal of training and development processes in getting skillful and competent workers is reached, then HR managers with the help of line managers seek the ways of motivating individuals for high working performance and general satisfaction with their work.

"The motivation function is one of the most important, yet probably the least understood, factors of HRM process" (3, David DeCenzo). It is connected with the nature of complex human behavior. In order to motivate the employees for excellent performance, managers must understand their needs and wants.

Researchers identified two types of motivation:

Intrinsic motivation is when an individual is self-motivated by his determination to appraisal and achievements. This includes such factors as responsibility, freedom to act, development of skills and personal qualities, interesting work and career opportunities.

Extrinsic motivation is provided by other people for external motivating by such means as rewards, benefits and bonuses, promotion, punishment, criticism, etc.

Intrinsic motivators are more likely to have long-lasting effect since they are not produced from the outside pressure and concerned with the "quality of working life", while extrinsic motivators can have more powerful effect. (1, Armstrong).

Enterprise Rent-a-Car is a company providing services for car rentals around the world. It was established by Jack Taylor in 1957 in St. Louis, USA. Today the company owes over 1 million vehicles, around 7 600 divisions around the world with about 68 000 employees promising its customers great service, affordable prices and wide range of car choice.

The Management of the company pays great contribution to providing training among its employees especially in motivating them to do their work best, learn to play in a team and improve customer relationships. The main aim of training of its employees is to raise their motivation in delivering the excellent service to its potential and regular clients.

The company has created a unique way to measure customer satisfaction by implementing the Enterprise Service Quality Index (ESQi) that is based on a regular customer satisfaction survey made monthly in every branch of the organization through telephone surveys of hundreds of thousands customers. This approach allows managers to evaluate customer service provided by its employees, and to work on its weaknesses and promote its strength. The company emphasis that the ESDi system is a perfect way to remind its employees that customer's needs are on the first place. In result Enterprise gets excellent feedbacks, long-term customer relationships and increasing profits.


Every employee in the Enterprise is given the right and opportunity to have a career growth within the company through in-depth training and learning directions. The company launched a unique Financial Controller Management Training Scheme. When, first as a Management Trainee is given a proper training for becoming a Management Assistant, a worker may become an Assistant Manager, then branch Manager and higher. Everyone is given the same chance regardless diversity, or any other differences, and it is completely up to an employee to decide on what career level he wants to stop. In this training process trainers have a very important role of teaching employees all important tools and knowledge for running a business; workers get an experience close to MBA. That's why Enterprise Rent-a-Car is one of top-five most popular work places among graduates, and the BusinessWeek's magazine ranked the company as a one of "50 Best Places to Launch a Career" for the past four years.


Important side of development training in the Enterprise is given to motivating its employees to do their best, to be part of a great working team, to get satisfaction from their everyday problem solving. And in return, the company will benefit from profitable and satisfactory customer relationships.

The main priorities in building a creative working environment in the company are (7):

Good relationships between managers and their employees is the main focus, when managers understand workers objectives so they can build a creative and motivated team.

There must be clear communications in a team, so the manager can clearly explain what an employee's main responsibilities and how everyone will benefit from them.

Using available materials, equipment and information is very important for the employee's learning and development.

Employees are encouraged to solve the problems on their own, to express their creativity and do things right.

Recognition is given to every successful and hard-working worker.

Hygiene factors (by Frederick Herzberg) such as good salary, working conditions and security are good but not enough for motivating people in trying to improve themselves in the work they do. These factors don't disappoint employees but also don't give them reasoning for development. After a survey within an organization the de-motivating factors such as a lack of organizational structure, a lack of feedback, a lack of understanding employee's primary duties, a lack of consequences for poor performance or achievements has been pointed out.

Hereupon, managers are trained to provide healthy competitive environment for their employees in the organizational units by effective communication, recognition of efforts and rewarding, giving necessary training and clear guidance, developing relaxed and trusted atmosphere, so that employees feel that they are being valued and relied.

by Frederick Herzberg

Managers of the branches are also given training so that they can motivate employees in non-management role. This may be as simple as just to say everyday "Thank you" as well as something more complicated. Managers may provide different kinds of informal competitions (e.g. satisfying exceptional customer's requests), or to become a leader of some new projects. The Enterprise says: "We base rewards on performance not seniority. Not only you will enjoy a competitive salary and benefitsfrom the outset, but as you work your way up through business, you'll also enjoy bonuses linked directly to the profitability of your operation". (8)

Besides on-work training, last years HR managers develop on-line training for the employees. Donna Miller, the Director of HR team in Europe, underlines that online courses are very innovative and helpful for development of the employees proving to be "very popular and effective among sales team" (9), especially when development and learning are the main strategies of company's growth. She told to the HR Magazine that potentially bad year 2009 turned out to be great year for the company thanks to right marketing strategy and professionalism and motivation of the company workers achieved by right and useful training (10).

The last stage of training procedures is feedback. Managers need to evaluate the effectiveness and importance of given training and learning methods in order to see what changes and updates should be made, how helpful these methods are, how happy the employees with it, and how satisfied the customers are.

The Enterprise implemented a system "The Vote" that helps employers and employees evaluate themselves, other co-workers and their performance, and their contribution to the working process. Under this system all employees assess each other's and their own work performance in terms of customer service, so that the best one is chosen. Every worker should explain why he gives this ranking. The leader then is announced in the region among other workers of the company in order to raise their interest in getting promoted. Such a system helps managers encourage developing of customer service work process, and the best ones are rewarded. Besides, "The Vote" helps managers to identify who needs better motivation and self-improvement.

All the training and development procedures for years proved to be very successful and useful for company's growth and healthy competitiveness. Due to annual investments in the HR segment, Enterprise Rent-a-Car became world-leading company in the car rental industry, every year increasing its profits and getting excellent feedbacks. In fiscal 2010 year its total revenues increased 4% to $ 12,6B, when its expenses decreased by 7 % comparing to 2009, and took 23d place among the largest privately-owned companies in the USA. (11) And it is a great progress for a big company like Enterprise Rent-a-Car, especially after the downturn time past recession.


In conclusion, I would like to point out the importance of training and development processes within an organization in order to achieve success and recognition. Every manager should realize that a successful organization needs to operate as a whole balanced system of team-oriented relationships. In order to achieve this success, the manager should be trained to provide healthy working environment for his colleagues, focus them on the main goals, motivate and provide training, and better understand their needs.

Enterprise Rent-a-Car has proved itself as a great example of an organization where a lot of attention is paid to its employees in order to build long-term customer relationships and get excellent feedback. HR managers do understand that a motivated workforce does not just occur; it should be trained, carefully checked and rewarded. People need encouragement and appraisal. That's why Enterprise managers are trained in motivation and the whole organizational system is build on creating career opportunities for the most successful and goal-driven workers. And that's why Enterprise Rent-a-Car is among the most successful and recognized companies in the whole world.