Question:

'Caro', a car manufacturing company was manufacturing high cost, good quality luxury cars. For the last few years, the company was not earning good profits as the demand for the cars was very low.
Chief Executive Officer of the company, Piyush had a meeting with the Production and Sales Managers to discuss how to increase the revenue of the company. They found that nowadays instead of purchasing luxury cars people prefer to have such cars on rental basis. So they decided to start 'Car rental service'. The Production Manager also suggested that as these cars were sophisticated and each spare part was very costly it would be better to provide these cars for rental service along with trained drivers so that there would be less wear and tear. Piyush agreed and a training unit was started. Two of the available cars were used for training the drivers. People were very happy as they were getting these cars on rental basis with trained drivers. The idea was a big hit and the company was able to surpass its profit targets of the last 20 years.
(a) Identify and explain the method of training given by 'Caro' to its drivers.

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Updated On: Jun 21, 2025
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Solution and Explanation

In this case, the company 'Caro' used the on-the-job training method for training its drivers. This method involves training employees while they are performing their job tasks, providing practical experience in real-world conditions.

1. Understanding the Concept of On-the-Job Training:

On-the-job training is a type of training that occurs at the workplace. The trainees learn by performing the actual tasks they will be doing in their roles, under the guidance of an experienced supervisor or trainer. This training is practical and relevant because it takes place in the exact environment the trainees will be working in.

2. How On-the-Job Training Was Applied at 'Caro':

The company 'Caro' used this method by providing training to their drivers directly in the cars that they would later drive as part of the car rental service. Two of the available luxury cars were used specifically for this purpose. The training was hands-on, allowing the drivers to familiarize themselves with the cars, which are sophisticated and costly, and to learn how to operate them efficiently without causing unnecessary wear and tear.

3. Why This Method Was Effective:

  • Real-world experience: The drivers were able to learn how to operate the vehicles in real-life conditions, which enhanced their confidence and skills.
  • Cost-effective: By using the actual cars for training, the company avoided the cost of creating separate training environments or using simulation equipment.
  • Reduced wear and tear: Trained drivers were less likely to damage the vehicles, ensuring they remained in good condition for longer.
  • High relevance: The drivers were trained on the specific vehicles and situations they would encounter, ensuring the training was directly applicable to their roles.

4. Final Answer:

The training method used by 'Caro' was on-the-job training, where drivers learned how to operate the luxury cars directly, under the supervision of experienced trainers, which proved to be a highly effective and cost-efficient approach for the company.

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