Page 61 - DMGT518_TRAINING_AND_DEVELOPMENT_SYSTEM

Training and Development System

Notes The HRD budget normally covers the following:
(a) Cost of staffing
(b) Cost of planning
(c) Cost of TNI & TNA
(d) Cost of appraisal

(e) Cost of recruitment or selection
(f) Cost of testing progress
(g) Cost of trails
(h) Cost of running programme
(i) Cost of valediction

(j) Cost of training materials & training aids.
(k) Cost of revising and re-testing
(l) Cost of publishing or awarding
(m) Cost of updating competence
(n) Cost of feed back system.

4.2.2 Budgeting Process

Business is and always, has been the number game, the game of data statements etc. with the
advancement of the technology and management information system, the executive/manager
has an easy access to these data on sales, productions, material and facilities planning, cost
control, loss and profit etc. Further the computer has made it more easy to coordinate one
function to another and easily compute the performance or the comparison, etc.
1. The cost of running HRD organisation

2. The cost of T & D activities
3. The cost of change achieved
4. The cost of conflicts avoided
5. The cost of material, man-hour & machine-hour saved.

Measuring Techniques

The measuring techniques of HRD activities are then designed on the following:
(a) Cost of HRD activities (expenses per unit T & D imparted)

(b) Change achieved (gain in skill, knowledge or attitude)
(c) Impact to the organisation (Result or outcome of T & D in terms of performance,
profitability, quality improvement, conflict management wastage reduction, etc.).

4.2.3 Justification on Investment

The investment on T & D activities is a long term investment which cannot be easily justified.
However the contribution of the activities in terms of change achieved and impact on the
organisation can be projected in the following graph. (Figure 4.1).

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