BM020: Enterprise Rent-A-Car (Enterprise) Employs more than 75,000 Employees: Organisational Behaviour Assignment, QMU, Singapore

Learning Outcomes:

The learning outcomes assessed in this assignment include the student’s ability to:

• Demonstrate a critical understanding of the key theories underpinning individual and group behavior in organizations
• Critically diagnose organizational problems and examine the effect of environmental factors on organizational performance
• Develop creative strategies for integrating and aligning people with organizational goals and systems
• Demonstrate oral and written communication skills of a high and professional standard appropriate to the level of study.

The Case Study: Enterprise Rent-a-Car

Introduction

For organizations to develop they require a direction. The people who manage the business provide the direction. Taking responsibility for making decisions and running a business well is a skill.

Businesses place considerable emphasis on getting the right people with the right skills into key posts. They need to ensure that these people have the opportunity to develop decision-making skills.

Enterprise Rent-A-Car (Enterprise) employs more than 75,000 employees and operates a fleet of cars exceeding one million vehicles worldwide. Enterprise has become one of the foremost car-hire companies and is the largest purchaser of cars in the world. Jack Taylor founded the company in St Louis in 1957. The owner had a simple belief: ‘Take care of your customers and employees first and profits will follow.’ This belief forms the foundation of Enterprise’s four key business objectives of:

• customer satisfaction
• fleet growth
• employee development
• profitability

These four business objectives link together.

Enterprise does not sell a product. It provides a service – the use of a car. To deliver great service Enterprise needs well-trained and motivated staff. As the company grows, it opens new local offices and creates new opportunities for employees. Customers expect to be treated in a particular way by a service-orientated business. Enterprise uses its Enterprise Service Quality Index (ESQi) to measure the quality of service it provides. Satisfied customers will come back and give repeat business. They may also recommend the service to others. This leads to the growth of the business and greater profitability.

Leadership and Management

Management involves control and organization to get something done. In the course of business, managers use many different skills. :

• plan and organize people and resources
• set and monitor budgets
• control operations or services in order to meet customers’ needs. The ability to manage is essential at all levels in the organization

However, for a business to excel, leadership is vital. A leader is somebody who sets the direction and inspires other people. A leader is able to influence others in meetings or when making decisions. This helps to achieve the goals of the organization. Enterprise has leaders at all levels of its business, not just senior management. Some people are natural leaders. For example, the captain of a school football team will probably have the ability to influence others. Leaders can also develop through training and education.

Case Study Questions:

1. Using enterprise Rent-a-Car as an example, explain the difference between leadership and management.
2. How does a democratic style of leadership help to motivate employees?