International Car Rental Business Essay Sample

Introduction

International Car Rental (ICR) operates in numerous countries and major cities in the US. As a result of competitiveness, many companies have had to leave the industry through bankruptcy. However, ICR has found a way to balance price sensitivity and customer service heavy industry. ICR executives are now tasking themselves with improving the company by developing leadership competencies for first-level managers. To ensure profitable growth and efficiency, first-level managers should excel in common competencies, such as problem-solving, counseling, motivation, etc,. A dilemma arises because there was no synergy or cohesion, time, resources, or encouragement to generate a positive ROI study. 

Purpose 

The Return on Investment is a measurement tool used to calculate the monetary value of an HR program. The purpose of the ROI analysis is to “measure the financial profit and benefits associated with the Leadership Challenge program” (ROI Institute, pg. 1). The L&D staff generated a needs assessment for all functional areas within the organization. The needs assessment identified an organizational need for several leadership competencies (ROI Institute, pg. 1). These competencies include problem-solving, counseling, motivation, communication, goal setting, and feedback. “In addition to developing these competencies, the L&D staff attempted to link the competencies to job performance needs and business needs.” (Phillips &Phillips, 2012, p.1). Developing such leadership competencies for first-level managers will lead to profitable growth and efficiency.

Evaluation Planning

 Evaluation planning is a crucial step in conducting a ROI analysis Adequate planning ensures that the program aligns and fills organizational or business needs. International Car Rental conducted a needs assessment. The assessment identified an organizational need for several leadership competencies, including goal setting, motivation, problem-solving, feedback, consoling, communication, and feedback. The L&D staff then implemented an HR program for first-level managers to help develop leadership competencies. The ROI methodology incorporates the 12 guiding principles to ensure it is reproducible, accurate, credible, and sustainable. The ROI included balanced data that encompassed data representing lower levels and higher levels of evaluation. The ROI analysis omitted any extreme data or unsupported claims. Since this was a prorated program, an extended analysis period was necessary to ensure credibility and reliability. The ROI analysis includes both the direct and indirect costs of the program. When it comes time to communicate results, HR professionals must communicate the ROI analysis results to all stakeholders. 

Data Collection 

Collecting data before, during, and after program implementation is the first and most time-consuming and disruptive step of the ROI Methodology (Phillips & Phillips, 2012, p.79). Data collection involves four different types of data that reflect the first four levels of evaluation (Phillips & Phillips, 2012, p.41). Reaction, satisfaction, and learning data are collected during program implementation, whereas application, implementation, and business impact data are captured on a follow-up basis (Phillips & Phillips, 2012, p.41). International Car Rental used the questionnaire method to collect data reflecting the program's progress because it was the least expensive and disruptive method. ICR did not use other data collection methods such as focus groups, interviews, and observations due to cost or inappropriateness. The questionnaires were administered to participants three months after the program's completion. “Important areas discussed and included are the application of skills, impact analysis, barriers to application, and enablers”(ROI Institute, pg. ). Next-level managers also received a similar, yet shorter, questionnaire focusing on their role in the coaching process.

Having a high response rate was vital to the success of this program. ICR used twelve techniques to increase response rates for the questionnaire. The most important technique was to review the questionnaire with participants. It is vital to go over each question, clarify the issues, create expectations, and gain commitment to provide data. They also allowed for responses to be anonymous and provided follow-up reminders, to name a few, to increase response rates. ICR obtained a response rate of 81% using the specific strategies identified in the case study. Due to the high response rate, available improvement data suggest that improvement did occur. At the higher levels of evaluation, an HR professional should use the most comprehensive analysis. In the early/lower levels of evaluation, comprehensiveness is not required. Utilizing this guiding principle can help keep costs to a minimum. 

Data Analysis 

It is vital to employ the fourth guiding principle when appropriately utilizing and analyzing significant data. It states that “when analyzing data, choose the most conservative method among alternatives” which will provide a basis. (Phillips & Phillips, 2012. pg 46). To dive deeper, that means the data analysis used should be the most stable and correct. It is crucial not to be confused or be hindered by alternatives because they will not provide the best outcome. The ROI Analysis plan provided an organized table of the steps that needed to be taken and examined. The learning, application, barriers and enablers, cost, and business impact all fall into data analysis. They all lead into one another, helping make an educated guess on how to improve program implementation. The included sections helped illustrate the significance of using the best data gathered. When taking into account the ROI methodology, dividing the net-total benefits by the total program costs resulted in an ROI score of 105%. The estimates of improvement "must be adjusted for the potential error of the estimate."(Phillips & Phillips, 2012, p.46). This provides a case for credibility and makes a convincing case for the program. There was a response rate of 81% (29 questionnaires) and the reaction data was rated on a scale of 1 through 5. A rating of one means the respondent strongly disagrees, and a rating of five the respondent strongly agrees. The issue stays between a scale of 3.9 and 4.6, which means it has a relatively neutral-to-strong agreement. The learning and application data were also measured using a rating scale of 1 through  5. The majority of ratings were between 3.8 and 4.8. The barriers and enablers were measured in frequency (percentages) to identify the top five barriers and the top five identified by participants.

Key Findings and Conclusions 

The Leadership Challenge program was implemented to develop the skills of first-level managers in the organization. The intangible benefits measured include improved communication, problem-solving, teamwork, and increased job satisfaction. The Leadership Challenge received a ROI analysis score of 105%, concluding that the program was successful and profited the organization. A positive ROI score signifies that the program returns exceed the total program costs. The ROI methodology was strategically planned, collected, and analyzed to increase the credibility and value of the program. A follow-up questionnaire was developed to help determine the progress made attributed to the program. The questions on the follow-up questionnaire were designed to isolate the program effects and adjust for errors in the estimates, which increased its credibility. “When collecting and analyzing data, it is crucial to use only the most credible sources.” (Phillips & Phillips, 2012, p.46). Several strengths within the program stemmed from providing an adequate and specific plan to follow and getting feedback through a follow-up questionnaire. Another strength was explicitly listing and discussing the questions and strategies within the process. The credibility section also added some needed substance and evidence. The program's apparent flaws stem from a lack of understanding of how to efficiently execute the plan while being deliberate about the outcomes.

Recommendations

We recommend that the leadership program provide adequate training, knowledge, and resources to participants involved in the data conversion and estimate process. Estimates are a method with low credibility, so it is vital to ensure that the organization evaluates the credibility of this method to ensure that all answers are accurate, valid, and reliable. Our second recommendation is to provide the participants with minimal barriers so employees can apply their new knowledge/skills to real-life scenarios. This helps increase the program effects and business impact within the organization.