Final Report-Valuation

Paper Products, Inc.

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Introducing E-Learning

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Introducing E-LearningAdvantages & Disadvantages

Prepared for:Kerry Simmons,Director of Human Resources

Prepared by:Jailan Rashed,Member of the Corporate Training Division

December 30, 2013



Table of Contents

Executive Summary......................................................................................................... iv

Introduction........................................................................................................................ 5

Advantages.......................................................................................................................... 5

1. E-Learning Offers Greater Flexibility in Time and Place..........................................5

2. E-Learning Cuts Training Cost...........................................................................................5

Disadvantages.................................................................................................................... 6

1. E-learning Is Less Effective..................................................................................................6

2. Many E-learners Dropout....................................................................................................6

Recommendations............................................................................................................ 6

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Executive SummaryThis report examines the advantages and disadvantages of e-learning and makes recommendation about whether our company should invest time and money in training its employees this way or not.

The advantages of e-learning are that it offers greater flexibility in time and place and also cuts training cost. The main drawbacks are that some experts believe that it is not very effective and that many e-learners dropout.

The report ends with a recommendation for investing in e-learning technology and provides a guideline for how to implement it.

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IntroductionPaper Products, Inc. is considering introducing e-learning for its employees. E-learning is the use of electronic media and information technology to help the employees develop and learn new skills related to their job. It is widely spread not only in educational institutions but also in companies. Corporate e-learning is currently a $2.3 billion market and is growing fast in the education industry.

The purpose of this report is to analyze the benefits and drawbacks of using e-learning. The report introduces its advantages and disadvantages and proposes recommendations for an effective implementation. In preparing this report, the corporate training division analyzed several research papers and case studies published in various business journals.

Advantages

1. E-Learning Offers Greater Flexibility in Time and PlaceThe main advantage of e-learning is its flexibility in time and place. It will open up new horizon for our employees, who often find it difficult to attend conventional classes while coping with their jobs and family. Employees who travel regularly can still take e-learning classes as it entails no commute. This is important in a company such as ours because there is often a time conflict between the conventional classes we offer and our employees’ business trips. Moreover, our employees have had to travel several times to take courses in another city. Offering these courses in an electronic form would save them travel time. E-learning also facilitates active correspondence with an online instructor who has several online office hours, it can be accessed during the day and it has a seven-day-a-week technical support.

2. E-Learning Cuts Training CostMoreover, when compared with conventional learning, e-learning is a more cost-effective approach because it saves travel and material cost. According to several reports, online learning can save a business a lot of money. An illustrative business case is the one of IBM. Last year, about 200,000 employees were exposed to e-learning courses at IBM. Also, 75% of IBM’s Basic Blue course for its new managers was offered online. Consequentially, IBM’s training cost was cut by $350 million mainly because they saved travel cost. Additionally, there is a wide range of e-learning packages with different prices in the market from which we can choose the best suitable one.

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Disadvantages

1. E-learning Is Less Effective Some experts believe that e-learning will never be as effective as face-to-face classes. It was reported by several corporate e-learners that the main reason for not completing an online course was a result of lacking the time. Additionally, the absence of face-to-face interaction may influence the social integration among the employees negatively as they may feel isolated from their classmates and instructor. Also, the lack of motivation and management oversight are other reasons of why e-learners may fall behind because of the absence of physical setting.

2. Many E-Learners Dropout Another disadvantage is that the dropout rates for online learners is relatively high. A recent report from the Chronicle of Higher Education suggests that institutions are experiencing dropout rates that range from 20 to 50 percent for online learners. Many couldn’t complete their assignments successfully from their desktop because of the distraction caused by their coworkers. This was particularly a problem for those who could only take the course through the company’s intranet.

RecommendationsPaper Products, Inc. is recommended to invest the time and the money in e-learning technology. However, to make it as effective as possible the company should consider the following 3 points.

Firstly, the company managers are recommended to show appreciation for e-learning and to supervise it to keep the employees motivated.

Secondly, our company should allow the employees to access their e-courses through the Internet or provide them with an intranet access outside the company. This will allow the employees to spend more of their private time on the assignments and will help eliminate any distractions that may be present in the office.

Thirdly, the content of the course must be divided into small parts with several pop quizzes and other interactive features like online discussion groups.

All this will help decrease the gap between the physical and the virtual setting.

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Documents

Final Report-Valuation