Business Administration - Human Resources HRA848 Lecture 9: Notes Chapter 12
8 Dec 2017
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Document Summary
Cost-effectiveness evaluation: involves comparing the monetary cost of training to the benefit of training in monetary terms. Benefit-cost ratio (bcr): the benefit divided by the cost of the training program. Cost-benefit evaluation: compares the cost of training in monetary terms to the benefits of training in non-monetary terms. Net benefit: the estimated value of the benefit minus the cost of the training program. Roi return on investment: = 35-15 = 1. 33. U = utility, or dollar value of the program. T = number of years the training has a continued effect on performance. N = number of people trained dt = effect size. Sdy = standard deviation of job performance in dollars of the untrained group. Their performance increased 2x compared to untrained employees. Impact of training expected to last five years.
