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Engineering, construction and management company, Delta International Ltd invests US$50 million annually on employee development.  The company employs some 20,000 workers in more than 25 countries and is present in more than 30 states in USA. Its markets comprise power generation, mining, manufacturing, offshore oil drilling. It has been active in reconstruction of war-torn countries like Afghanistan and Iraq.

In the early 2000’s the company was facing a shortage of workers as there was a drop in number of young engineering graduates entering the labour market. Besides a high percentage of its workers were going to retire in the upcoming 5 to 10 years. Top management believed that employee development had to become a significant component of company culture along with its other components namely financial results and operational excellence. The company held the view that employees’ skills development can enable it to complete projects on time, at lower costs and provide high return for shareholders to facilitate employee development, Delta International first created a standard yearly performance review for all employees. Managers were asked to review 10 percent of their staff each month, focusing on future goals rather than on past performance as had been the case until then. Top executives were also required to visit the group’s business heads to review them and identify the high performers. The managers were given incentives based on their efforts towards employee development.

The company’s employee development programme which comprises formal courses, job experiences and mentoring, focuses on training in management skills, cost control and time management.  Also, technical training is combined with job experiences to assist employees better understand construction projects.

Several times each year managers are invited to company’s Leaders Forum which is a platform where executives present current business challenges the company is facing. Participants also work in teams to generate solutions.

The CEO of Delta International is involved in every aspect of employee development from reviewing courses to monitoring employee attendance and employee course feedback. He thinks that the company is a learning organisation and there is adequate justification for the financial commitment to employee development. Employee turnover doesn’t worry him as much as the apprehension that the company might end up with unskilled and under-performing workers.  
problem 1: What do you think are the challenges facing Delta International Ltd which make it essential for company to spend so much on employee development?

problem 2: Describe what you understand by employee development. How does it distinct from employee training?

problem 3: Discuss and describe the characteristics of the most significant company development strategies. Which characteristic do you believe is the most significant to Delta International Ltd? Substantiate your answer.

problem 4: As CEO of the company how would use employee course feedback to assist you evaluate the success or failure of a training program which has already been implemented? What action would you take to ensure the effectiveness of prospect training programmes?

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M97666

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