Training a cost or an investment? Critically analyse.
According to Edwin B. Flippo, "Training is the act of increasing the knowledge and skills of an employee for doing a particular job." Another definition of training is: "It is the acquisition of knowledge, skills and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies and it has for goal to improve one's capability, capacity, productivity and performance." Some businesses view training as being an extra cost whereas some view it as being an investment on the human capital for the firm to be successful.
The different types of training are on the job training and off the job training. On the job training is where workers are doing a task and at the same time getting training under very close supervision. It is both for new and existing employees.
Off the job training is done outside the organisation, by specialised institutions and professionals. Training can also take the form of E-learning and education.
Training a Cost
All training conducted involves a cost and it can be classified as direct and indirect cost. The direct cost are development, instructor, and materials costs whereas the indirect cost are employee salary paid while being trained, salary of other employees who provide the training (instructors, evaluators), administrative overhead costs.
Training is a cost such that it involves the spending of money, time and other resources on workers. The followings are examples of how and why training is treated as a cost:
Training programmes if not very well planned can result in failure and wastage of resources. Suppose a manufacturing industry wants to increase its productivity by offering training to its workers. Therefore a training time will have to be found which due...