Page 62 - DMGT518_TRAINING_AND_DEVELOPMENT_SYSTEM

Unit 4: Training Design

In graph (a) OA represents cost on T & D for new employees for a period of AB, BCD shows the Notes
gains to organisation in terms of the job performance. By gaining this experience now, the
employees learn work and therefore the gain and the investment equalises up to DE and so the
straight line EF represents the benefits of the learning by doing and experiencing and FH again
learning by doing. After learning has achieved the saturation at G the retraining may perhaps be
required which may call for taking away the employees from work place and have only lost and
no gain, the GH will show again visible investment & so the gain likewise the cycle goes on
repeating. The positive difference between benefits and investment is the only healthy sign for
the organisation.

Figure 4.1: Investment on Training & Development

In the case of existing/running unit the HRD activities may cost a little as compared to the new
establishments i.e. every year budget may be less than the first investment at the start of activities.
If we look at the graph (b) we find that OP is the investment which could be for improving skills,
knowledge and attitude of managers, supervisors or every other employees; QRS shows
continuous improvement due to HRD activities and organisational culture improvement and
ST shows improvement in experience through learning by doing for a short period of initiated
challenges. TU represents the investments on further improving the performance but this may
not necessitate the trainee to be away from this routine duties for longer period and hence the
curve is above the datum line. At point X again there may be necessity for retraining or change
of job which may cost more to the organisation.

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Caution Controlling the Cost
The cost control system effectiveness lies on the feedback and monitoring the cost incurred
as well as the budget allotted. There are basically three activities involved in the control
process.

 Investments of the estimated cost and actual cost of performance.
 Comparison of actual performance with planned performance and the establishment
of any variance.

 Initiating actions to cope with the observed deviations.

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