ERIC Number: ED260215
Record Type: Non-Journal
Publication Date: 1984-Apr
Reference Count: N/A
Forecasting the Economic Benefits of Training. Training and Development Research Center: Project Number One.
Swanson, Richard A.; Geroy, Gary D.
Analysis of the economics of training has become one of the most important issues of the decade for business and industry. Unfortunately, managers typically digress to a simple cost analysis and ignore the realities of cost-benefit analysis and the potential of large financial benefits to the organization. A proposed model to forecast training costs and benefits identifies generic categories of training costs for summarizing those costs that may be unique to the reader's organization. Categories for costs incurred from losses of time, material, and production/performance are included. An important part of the Training Benefit Forecast Method (TBFM) is the value of performance. Performance value is defined as the worth of performance units produced in dollars. Making valid comparisons of alternative training options requires the analyst to set a base time period to be used in calculating performance values for each training option. A case study is provided of the benefit analysis of three training options under consideration by a manufacturer. Tables illustrate the cost and benefit analyses. (YLB)
Publication Type: Reports - Descriptive
Education Level: N/A
Authoring Institution: Minnesota Univ., St. Paul. Dept. of Vocational and Technical Education.