Training Employees of IBM Through e-Learning
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Case Details:
Case Code : HROB030
Case Length : 14 Pages
Period : 1990 - 2002
Pub Date : 2003
Teaching Note :Not Available
Organization : IBM
Industry : Information Technology
Countries : USA
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"E-learning is a technology area that often has both
first-tier benefits, such as reduced travel costs, and second-tier benefits,
such as increased employee performance that directly impacts profitability."
- Rebecca Wettemann, research director for Nucleus Research.1
Introduction
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In 2002, the International Business Machines Corporation (IBM)2
was ranked fourth by the Training3
magazine on its 'The 2002 Training Top 100' list (Refer Exhibit I). The magazine
ranked companies based on their commitment4
towards workforce development and training imparted to employees even during
periods of financial uncertainty.
Since its inception, IBM had been focusing on human resources development. The
company concentrated on the education and training of its employees as an
integral part of their development. During the mid 1990s, IBM reportedly spent
about $1 billion for training its employees.
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However, in the late 1990s, IBM undertook a cost cutting drive, and started
looking for ways to train its employees effectively at lower costs.
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After considerable research, in 1999, IBM decided to
use e-learning (Refer Exhibit II) to train its employees. Initially,
e-learning was used to train IBM's newly recruited managers.
IBM saved millions of dollars by training employees through
e-learning. E-learning also created a better learning environment
for the company's employees, compared to the traditional training
methods. The company reportedly saved about $166 million within one
year of implementing the e-learning program for training its
employees all over the world. The figure rose to $350 million in
2001. |
Training Employees of IBM Through e-Learning
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