Cost Benefits Analysis of Employee Training Program: Assignment – HRM 531, Week 5

Summary

Cost benefits analysis is a way of deciding whether to do something by comparing the costs with the benefits. This document looks at an oil distribution company that has problems because of poorly trained employees. It shows how training can benefit both the company and the environment.

Training and its importance

Training helps employees gain skills and knowledge. It is crucial in the petroleum industry for safe and efficient fuel handling. Training programs can be short or long, focusing on health, safety, and operational procedures.

Costs and benefits of training

The document lists costs of training, such as lost sales and trainer salaries. It also lists benefits, like improved efficiency, reduced violations, and better customer service. The analysis shows whether the training program is financially worthwhile.

Behaviour costing and recommendations

Behaviour costing helps avoid poor decisions by measuring cost behaviour accurately. Recommendations include proper training, employee involvement, and using work incentives. The goal is to improve performance and achieve organizational success.

Key terms

Cost/Benefit Analysis

A method to decide if a project is worth doing by comparing costs and benefits.

Employee training

Activities to increase employees' job knowledge, skills, and abilities.

High performance work policies

Policies that aim to improve business financial performance through better work practices.

Behavior costing

Measuring cost behaviour to avoid poor decisions.

Environmental violations

Breaking rules that protect the environment, leading to penalties.

Questions this document helps with

• How does training help employees and the organization?
• What are the costs and benefits of training?
• How can behaviour costing improve decision-making?

Summary written with AI from the document's text.