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Comparative Study of Ford and Honda Dealerships with Training & Development and
Compensation Perspective
Abstract
In Human Resource, training and compensation plays an important role. If training will not be
placed in any organization than there will be no productive output. Being an HR student, it is really
very important to know the training and compensation process. The study has the objective to
understand the training needs of the organization and observe the employees performance before and
after they are trained. Study shows training procedure was carried out on the basis of employees
requirement,different employees were given different training according to individual and
organization's goals, the procedure was basic and easily adaptable. Also study reflects that
compensation should be made more flexible so that organization can easily retain its employees and
training should be mandatory and should be held timely so that the employees are always updated
about the company and its products.
Key words - Training, Compensation, employees, organization performance, e-learning, Flexi
compensation.
Author
Dr. Ritesh Dwivedi,
Assistant Professor, Amity Business School, Amity University UP, NOIDA Email:
ritesh_hariom@rediffmail.com, Mobile: 0-9415576820
Author has more than ten years of working experience with various Development Agencies /
Government Projects / Universities in different positions. He has written many articles for
Development Magazines and his several papers have been published in different reputed Social
Research & Management Journals.
****
1. Introduction
Ford India pays great emphasis on Training and Compensation at all its dealerships. It provides
continuous training sessions and content to improve and maintain the productivity of sales
consultants. Ford also makes sure that their employees get equal pay and it also takes care of the
benefits provided to their employees. In spite of continuous efforts, the management of Ford India
was unable to fill gaps in the transfer of training at Riddhi Ford and also are unable to retain
employees despite of providing them benefits. The management reported lack of confidence,
knowledge and skills as required for a sales consultant. The trainings were less effective in the
transfer and retention of learning. E-Learning modules were started by Ford India T&D center as a
mandatory module with the objective of acquainting sales persons with basics of automobile and
increase familiarity about its products through online portal. These E-learning modules have not
been effective in retention and transfer of learning among Sales consultants. Therefore, it was
necessary to study the gaps in training. This study aims to analyze the key areas where training is
ineffective and suggests ways to cope up with the problem areas to make them more effective and
retain the employees in the organization."
For the accomplishment of the task it was important to know that which all training sessions
are being availed and what are the expectations of the employees from the company. Apart from this
it became really easy to know about the employees through personal discussion and other activities.
1.1 Background of study:
Ford India has less than 3% market share in India. It is the number one car seller in the U.S. In
an interview, CEO Alan Mulally admitted to the media that they were not focused on India. They
considered the region insignificant to capture the market share and develop a stronghold here. Ford
India had reported profits of Rs 144 Cr in FY12 but depreciation of Rs 284 Cr pushed the company
into losses. It was a hard time that company started making profits. Questions were being raised in
the market about the profitability and position of the company in India. By mid 2010, the company
realized the strategic importance of India, and decided to roll out eight models by 2015. Till now
only Fiesta and Ecosport have been launched, Aspire still being in the pipeline, the company has
failed to make a mark in the Indian market."
"Ford India is now focusing to build upon a significant market share by pitching its products.
This goal can be reached by focusing at the dealership level. Ford India provides an extensive
training program to its sales consultants to make them understand the innovation, technology, and
unique features of its products. This helps the sales consultants to deliver value to the customer and
build a strong client base. Hence, it becomes all the more important to satisfy the needs of customers
and deliver the best assistance in choosing and buying a suitable Ford car. Training, development
and evaluation hold important strategic position in reaching their target in sales volume. Evaluation
of effectiveness of training will help to fill gaps and make the training process more productive."
2. Literature Review
Training has the distinct role in the achievement of an organizational goal by incorporating the
interests of organization and the workforce (Stone R J. Human Resource Management,
2002). Training increases or develops the managerial skills (Robart T.Rosti Jr, Frank shipper, 1998).
Despite focusing on efficiency and cost control the spending on training should increase because
organization achieves more efficiency and effectiveness through training and development
(workforce special report, 2006).
On the necessity of the trainings, we find a lot of literature that indicate how training and
development are important for the improved performance of the employees. It is very difficult for an
employee to perform well at the job place without any pre-training (Thomas N.Garavan, 1997).
On the job training, many scholars have explained their constructive views. (Deming, 1982) says, on
the job training helps employees to get the knowledge of their job in a better way.
People learn from their practical experience much better as compare to bookish knowledge. On the j
ob training reduces cost and saves time (Flynn et al., 1995). Itis better for the organizations to give t
heir employees on the job training because it is cost effective and time saving (Ruth Taylor et al.,
2004).
Every organization should develop its employees according to the need of the time so that they could
compete with their competitors (Carlos A. Primo Braga,1995).
3. The Study
The research was done to identify whether Training sessions are held at Ford and to find out to what
extent these sessions are implemented and executed throughout the organization. Data has been
collected from among 20 employees of Ford and Honda dealership by distributing a structured
questionnaire manually to each respondent. Questionnaires were further distributed to only those
respondents who had immense knowledge and experience regarding the project title. The sample
includes all employees of Riddhi Ford and Delight Honda which are respective dealerships of Ford
and Honda. Both these dealerships are located in New Delhi near Mohan estate. Sample of 20
emplyees is focused on employees of these 2 dealerships.
4. Data Analysis
4.1 Years of employment
12 8
0 0 0
7
7
6
0 0
1) 0-3
Months
2) 3-12
Months
3) 1-4
Years
4) 5-10
Years
5) 11&
Above
Fig 4.1 : YEARS OF EMPLOYMENT
HONDA
FORD
Majority of the employees working at Riddhi Ford dealership have maximum of 0 - 3 months of
employment and majority of the employees working at Honda dealership also have within 1 year
employment and there are good no of retained employees having 1 - 4 years of work.
4.2 Training sessions held
It is clear from the above data that 8 employees of Riddhi Ford have attended training sessions more
than 5 times and same is the case with Delight Honda.Training sessions are attended by most of the
employees.
4.3 Time gaps in training
It shows that trainings of Honda are held quarterly where as training sessions of Ford are held half
yearly. 16 out 0f 20 employees of Honda says that they attend training quarterly. Here a gap is seen
between the training sessions held and that is why good no. of employees have been retained in
Honda as they get to learn more there.
4.4 Training method used
7
1 0
4
8
3
1 0
3
6
1) 1 2) 2 3) 3 4) 4 5) 5 &
above
FIG 4.2: TRAINING SESSIONS HELD
FORD HONDA
0 5 10 15 20
1) quarterly
2) half yearly
3) annually
4) every 2 years
FIG 4.3: TIME GAPS IN TRAINING
HONDA
FORD
The employees of both the company said that all methods are used in the training, whether it is a
lecture method, job rotation, simulation, coaching/mentoring. They are satisfied with the methods of
training used and apart from all these methods a separate method of e-learning is also used.
4.5 Barriers to T&D
It is observed that employees of both the companies agree that it is lack of interest by staff as 6
employees out of 20 agree to this statement and 12 employees of Honda believe in this statement.
4.6 Job satisfaction through training
0
10
20
30
FIG4.4: TRAINING METHOD
USED
HONDA
FORD
0% 20% 40% 60% 80% 100%
1)Time
2)Money
3)Lack of interest by staff
4)Non- availability of skill…
5)Training material provided
FIG4.5: BARRIERS TO T&D
FORD HONDA
15 5 0 0 0
12 8
0 0 0
FIG 4.6: JOB SATISFACTION
THROUGH TRAINING
FORD HONDA
It is shown in the chart above that most of the employees think that training does help them in job
satisfaction.
4.7 Transfer of training
The employees view is taken and it is seen that employees of Honda say that they are able to transfer
the training sessions to the work they do where as employees of Ford are not able to transfer training
sessions that much which is required. 12 employees of out 20 in Honda says that they are able to
transfer training and 6 employees out of 20 believe the same. So, there is a gap between the transfer
of training between the two companies.
4.8 Supervisor's role in training
Here it has been explored whether the supervisors help the employees in training or supervise them
once they come back from training to achieve their goals. It was seen that 12 employees out of 20
agree that supervisor’s play a role in setting their goals and 8 employees are neutral with this
statement and 19 employees in Honda agree with the above statement.
4.9 Feedback after training
6
4
8
2
12
5
3
0
1. very true
2. to great extent
3. somewhat
4. little true
5. not at all true
FIG 4.7: TRANSFER OF TRAINING
HONDA FORD
0
10
20
1) agree 2) disagree 3) neutral
FIG 4.8: SUPERVISOR'S ROLE IN
TRAINING
FORD HONDA
This chart shows whether feedback from the employees were taken after the training sessions are not
and it is seen that all the employees of Honda says that yes feedback is taken where as 18 employees
of Ford agrees with this statement.
4.10 Rate the effectiveness of the following methods
18 20
2 0
FORD HONDA
FIG 4.9: FEEDBACK AFTER
TRAINING
1. yes 2. no
17
2 1 0
8
4 7
1
1. Highly
effective
2. Somewhat
effective
3. Somewhat
ineffective
4. Highly
ineffective
FIG 4.10 A: E- LEARNING
FORD HONDA
12 3 5 0
16
4 0
0
1. Highly
effective
2. somewhat
effective
3. somewhat
ineffective
4. Highly
ineffective
FIG4.10 B: LECTURE/ DISCUSSION
FORD HONDA
Above three charts reflect what employees think about the methods which are used for training and
how effective these methods are for the employees. It is seen that all three methods of training are
well received and praised by the trainees but Role Play Method hold slight edge over other methods.
e- learning is practiced very well in Ford and is very rarely practiced in Honda and role plays and
lecture methods take place in both the companies.
4.11 General complaints
Most of the employees say that they face travelling problem and added that if a cab or any other
transport facility would be available, they would feel more motivated in attending the training
sessions.
4.12 Assignments based on training imparted
15
3
2
0
18
2
0
0
1. Highly effective
2. Somewhat effective
3. Somewhat ineffective
4. Highly ineffective
FIG4.10 C: ROLE PLAY
HONDA FORD
0 5 10 15 20
1) travelling
problem
2) Too many gaps
between the session
3) Training sessions
are unplanned
4) boring and not
useful
FIG 4.11: GENERAL COMPLAINTS
HONDA
FORD
This chart clearly states that the majority of the employees agrees that they receive new assignments
once they return back from training and are given new projects based on the training received by the
employees.
4.13 Position in the company
Most of the employees working in the company are sales executives and backend people and other
people who work in different departments are less as compared to that of sales executives.12 out of
20 employees work as a sales executive in Riddhi Ford and 14 out of 20 employees work as a sales
executive in Delight Honda.
4.14 Salary analysis
17 people out of 20 receive a salary ranging 10,000 – 25,000 in Riddhi Ford and 12 people out of 20
receive a salary ranging 10,000 – 25,000 in Delight Honda.
0
5
10
15
20
25
1) agree 2) disagree 3) neutral
FIG 4.12: ASSIGNMENTS BASED
ON TRAINING IMPARTED
FORD
HONDA
1) backend 2) sales
consultant
3)
managerial
4) other
3
12
4 1
4
14
2 0
FIG 4.13: POSITION IN THE COMPANY
FORD HONDA
2
17
0 1 0
4
12
4 0 0
1) below
10,000
2) 10,000 -
25,000
3) 26,000 -
40,000
4) 41,000 -
70,000
5) above
70,000
FIG 4.14: SALARY ANALYSIS
FORD HONDA
4.15 Satisfaction with salary
It was observed that employees of Riddhi Ford are less satisfied with their salary as 8 employees out
of 20 says that they are satisfied and 13 employees out of 20 in Honda say that they are satisfied with
their current salary.
4.16 Review of salary structure
The salary structure of employees increases every year, according to the performance of an
individual. Employees who perform well receive a high salary compared to those who perform
moderate.
4.17 Incentive received
8
13
12
7
FORD HONDA
FIG 4.15: SATISFACTION WITH
SALARY
1) yes
2) no
0 5 10 15
1) half yearly
2) yearly
3) every 2 years
4) no fixed time…
FIG 4.16: REVIEW OF SALARY
STRUCTURE
HONDA
FORD
13
3 3 1
5
3
12
0
1) below
1,000
2)1,000 -
1500
3) 1500 -
2,000
4) 2,000 &
above
FIG 4.17: INCENTIVE RECEIVED
FORD HONDA
It is seen that employees in Riddhi Ford receive below 1,000 for each car sold where as employees at
Delight Honda mostly get between 1500 - 2,000. In this case Riddhi Ford is lacking behind in
providing their employees proper incentive.
4.18 Benefits available
Most of the employees are getting mobile bill and sim card from the both company. It is seen that
honda provides travelling allowance also to their employees.
4.19 Organization compensation
Majority of employees in both Riddhi Ford and Delight Honda say that their compensation is almost
similar to those of employees working in different dealerships. They do not have any kind of
insecurity in the form of compensation received by the company.
4.20 Benefits equally important as recognition
1
16
0
3
9
13
0 0
1) travelling
allowance
2) mobile
bill/sim card
3) medical
facility
4) maternity/
paternity
leave
FIG 4.18: BENEFITS AVAILABLE
FORD HONDA
1
10
3
8
8
12
0
0
1) higher than others
2) almost similar
3) lower
4) no idea
FIG 4.19: ORGANIZATION
COMPENSATION
FORD HONDA
Employees in both Riddhi Ford& Delight Honda believe that recognition is more important than
benefits and a few employees in Delight Honda believe that benefits are important as the new people
who have joined the organization believe that they should receive benefits first as they believe
benefits motivate them to work.
5. Findings
Delight Honda has more no of retained employeesn with respect to Riddhi Ford. This is so as
training is organized quarterly in Honda and half yearly in Ford so employees of Honda feel
motivated as they get to learn more about training and are able to improve their productivity.
Benefits are available to the employees of both the companies and they are satisfied with the
benefits given to them. The only point where Riddhi Ford lacks is they do not provide
employees travelling allowance and hence they should work on it.
After the training session are held employees are given new assignments according to the
training given to them. In this way the employees get motivated and work performance also
increases.
Employees agree to the statement that the supervisors help them set realistic goals once they
return back from the training.
Employees feel satisfaction with their compensation as similar is given to them when
compared to other dealerships but they are not fully aware about the compensation policies in
their organization.
The incentives which Riddhi Ford gets is less than 1,000 whereas employees of Delight
Honda get between 1500-2000 so it is suggested that Riddhi Ford should provide better
incentives to their employees
A time Gap in which salary structure is reviewed is quarterly for Delight Honda and half
yearly in Riddhi Ford. This is satisfactory in both the companies.
6. Recommendations
Ford India should maintain a tracker and ensure that the trainings are completed within 1
month of joining. This is recommended so that the training procedure is on time and the new
joiness can adjust with the policies of the company.
13
18
9
2
FORD
HONDA
FIG 4.20: BENEFITS EQUALY
IMPORTANT AS
RECOGNITION?
1) yes 2) no
Sales consultants should be given atlest 7 days to complete the e- learning modules and
handouts should be provided for the same to the employees. Employees sometimes feel that
the time provided to them to complete the e- learning should be extended.
Riddhi Ford should also provide more incentive as its competitor company Honda provides
their employees more incentives. Incentive increment is required as an employee always see
that what its competitors are providing and here in this research Honda is providing more
incentive so the employees get insecure and do not get motivated to perform their work.
The trainer should take aid of role plays, videos, demo to deliver training content to make it
engaging and attractive. Multiple options should be available so that with different methods
an employee can learn more innovatively and training gets effective.
Employees should be fully aware of the compensation policies which the organization
provides and should be such that the employees can easily claim them. As a part of the
organization, it is the responsibility of the manager to aware its employees about the
compensation policy in this way the employees will be well aware and moreover their
interpersonal relations will improve with the manager.
Feedback should be taken once the trainees come back from training and their performance
should be evaluated timely.A manager should take feedback from employees regarding the
training as well as the trainer so that training can be more effective.
Riddhi Ford should work on retaining its employees by providing them a fair compensation
and equal salaries as others so that insecurity is reduced and employees are motivated to work
for the organization.
Riddhi Ford should work on maintaining the cars which are required at the dealership. If the
required amount of cars is available, then the dealership will not lose its customers rather will
be able make a benchmark among its competitors.
E- learning should be conducted timely and it should be in such a way that employees
themselves nominate or are motivated enough to do these e- learnings.
7. Conclusion
Through this project, it is concluded that Ford is lacking from Honda in some parameters like to
retain its employees, providing its employees with a better incentive. It is also seen that in some
parameters, it is equal like salary, position of employees as in some parameters, it is higher in Honda
when we talk about e- learning , this is that one parameter where Ford is higher as e- learning takes
place timely done and in Honda it is somewhat absent. E-learning is very effective as there are many
modules present and employees take these e- learning to learn more about the products and many
other modules are also there to enhance the overall development of an employee. It is also found that
employees are positive and feel that training does help them in job satisfaction and enhancement of
their career the only problem the company is facing is that the employees are not able to transfer the
training on the job which was imparted to them.
References
Stone R J. (2002), Human Resource Management 2nd Edition, John Wiley & Sons
2002.
Robart T.Rosti Jr, Frank shipper, (1998), “A study of the impact of traning in a
managementdevelopment programm based on 360 feedbacks”.
Workforce.com, (May 22, 2006), “Special report: Traning and Development). Roger
Kaufman-Florida State University Donald Nickels,M.A,(2009),
http://blogs.payscale.com/compensation/2009/09/effects-of-training-on-employee-
performance.html
Thomas N. Garavan. 1997. “Interpersonal skills training for quality service
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Deming, W.E. 1982. Quality, Productivity and Competitive Position, MIT Center for
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Flynn, B.B.,Schroeder, R.G., Sakakibara, S. 1995."The impact of quality management
practices on performance and competitive advantage", Decision Sciences, Vol. 26
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