Question:medium

'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: Jan 13, 2026
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Solution and Explanation

The company 'Caro' implemented on-the-job training for its drivers. This training approach involves employees learning while actively performing their job duties, thereby gaining practical experience under actual operating conditions.

1. Defining On-the-Job Training:

On-the-job training is a form of instruction conducted at the employee's regular worksite. Trainees acquire skills by executing the precise tasks associated with their roles, guided by an experienced supervisor or trainer. This method offers practicality and direct relevance, as training occurs within the intended work environment.

2. Application of On-the-Job Training at 'Caro':

'Caro' utilized this methodology by training drivers directly in the luxury vehicles they would subsequently operate for the car rental service. Two of the available high-end cars were designated for this training. The hands-on nature of the training enabled drivers to become familiar with the sophisticated and valuable vehicles, learning efficient operation techniques to prevent undue wear and tear.

3. Efficacy of the Method:

  • Practical Exposure: Drivers gained experience operating the vehicles in authentic scenarios, boosting their confidence and proficiency.
  • Economical: By leveraging the actual fleet vehicles for training, 'Caro' circumvented expenses related to establishing separate training facilities or acquiring simulation equipment.
  • Minimized Vehicle Strain: Competent drivers were less prone to causing damage to the vehicles, contributing to their longevity and good condition.
  • High Applicability: Training focused on the specific vehicles and operational contexts drivers would encounter, ensuring direct relevance to their responsibilities.

4. Conclusion:

'Caro' successfully employed on-the-job training, enabling drivers to master the operation of luxury cars through direct, supervised practice. This approach proved to be highly effective and economically advantageous for the company.

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