DB Reply - Brilliant Answers

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DB Reply Instructions: You will be required to reply to 1 other classmate's thread. Each reply must be 250–350 words and be supported by 1 other scholarly source in current APA formatting. All sources must be current, or published within the last 5 years. Do not use other textbooks aside from course materials and do not repeat sources used in the thread in your response.

Textbook: Noe, R. A. (2017). Employee training and development (7th ed.). New York, NY: McGraw-Hill.

School’s online library: https://learn.liberty.edu/webapps/portal/execute/tabs/tabAction?tab_tab_group_id=_76_1

Password: Gabrielle6

Student’s question: How might you estimate the benefits of a training program designed to teach employees how to use the Internet to monitor stock prices?

Student’s thread: Donna Doane

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Training programs are beneficial if they end in the employee transferring the training back to their job and if the organization becomes more productive because of the training. Training can be costly and the organization must be able to prove that the learning outcomes will far exceed the cost placed into it. One study suggests “corporate expenditure for internal training predicts interpersonal and organizational learning practices, which, in turn, increase innovative performance (Sung, 2014, p. 393). Therefore, as organizations invest in their workforce by offering them training, their workforce will gain fulfillment in their jobs and will be able to carry that knowledge with them throughout their career and pass it on to others.

To estimate the benefits of a training program designed to teach employees how to use the Internet to monitor stock prices, an organization must take steps to decide if the training program is warranted in the first place. These steps consist of an evaluation process and determining return on investment (ROI) by way of a cost-benefit analysis.

Evaluating training is a crucial first step for organizations to take in determining the usefulness of a training program. Noe (2017) states, “a training evaluation measures specific outcomes or criteria to determine the benefits of the program” (p. 247). For example, an organization will want to evaluate if training employees to use the Internet to monitor stock prices will be effective. An organization might find if effective if the training is for certain job functions within the organization that will need to quickly and continuously look at stock prices. However, a formal training program may not be necessary and a simpler solution may be implemented such as emailing out the instructions or posting them to the company intranet. Included in the training evaluation process is “conducting a needs analysis, developing measurable learning objectives and analyzing transfer of training, developing outcome measures, choosing an evaluation strategy, and planning and executing the evaluation” (Noe, 2017, p. 251).

The next steps in determining the benefit of a training program is determining the return on investment by way of a cost-benefit analysis. Noe (2017) defines cost-benefit analysis as “the process of determining the economic benefits of a training program using accounting methods that look at training costs and benefits” (p. 273). In the example for training employees to use the Internet to monitor stock prices, one might question the economic benefit for this type of training program and the need for it as most people in this day and time are experienced in using the internet and its search engines. However, to formally conduct a cost-benefit analysis, “once the costs (direct, indirect, development, overhead, and trainee) and benefits of the program are determined, ROI is calculated by dividing return or benefits by costs” (Noe, 2017, p. 276-277). Muehlemann and Wolter (2014) claim,

Training benefits to the firm are given by the value of productive work, which is typically divided into skilled and unskilled tasks. Ultimately, the difference between the costs and benefits of training results in net benefits (or net costs) for the firm. (p. 3)

Training programs can be beneficial to any organization if they are evaluated prior to implementation for justification purposes. It is essential that the organization first conduct the evaluation process and then move forward to determining the ROI by way of a cost-benefit analysis to conclude if the benefits will far exceed the cost. As these steps are carried out, the organization might find that a program is unnecessary for the training of employees to use the internet to monitor stock prices and that they may utilize a simpler and more cost-effective way, such as emailing out instructions or posting instructions to the company intranet.

References

Muehlemann, S., & Wolter, S. C. (2014). Return on investment of apprenticeship systems for enterprises: Evidence from cost-benefit analyses. IZA Journal of Labor Policy, 3(1), 1-22. doi:http://dx.doi.org.ezproxy.liberty.edu/10.1186/2193-9004-3-25

Noe, R. A. (2017). Introduction to employee training and development. In Employee training and development (7th ed., pp. 4-60). New York, NY: McGraw-Hill Education.

Sung, S. Y., & Choi, J. N. (2014). Do organizations spend wisely on employees? effects of training and development investments on learning and innovation in organizations. Journal of Organizational Behavior, 35(3), 393-412. doi:10.1002/job.1897

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