Human Resource Management

Human Resource Management
Student’s Name
Institutional Affiliation
Human Resource Management
Summary of Case
Employee training is pivotal to creating opportunities for firms perched on top of the game. Organizations that invest in employee training appear to be more successful compared to their competitors that have not taken up training programs as part of their core human processes. The estimation of the market shares and measurement of the impact of training on the growth proves that training positively affects the bottom line. Employee training saves money for an organization in the literal sense, and not just through extra revenue generation, primarily, when the training methods are modern and based on available technology as opposed to the use of traditional training methods (Cascio, 2016).
Critical Thinking Questions
8-20
A ten percent change means a lot for the bottom line, given that the mean revenue brought by the customer per month is $500, and there are 500 customers.
Of the 500 customers, “before training,” 75 customers were “very dissatisfied-will never return,” a number that reduced by 50 customers who are satisfied and will return, which indicates a bottom line revenue of $25,000 per month.
For 1000 customers, the revenue generated because of the increase in customers would be $500000, but only $25000 will be missed in the subsequent month.
8-21
A direct cost might involve the company outsourcing for the service externally when there are employees on the payroll, who are unable to do the job because they are untrained.

When there is no training, u = 0. Without training of in-house employees, productivity falls in an asymptomatic way to 0 at the rate of a fall of the human capital, given by the sigma. At the same time, in-house employees’ wage converges to a higher value.
8-22
Direct costs of a turnover include those involved in processing the documents of the departing employee. Payments made to vacation, sick, severance, unemployment compensation, and costs incurred in recruitment activities. Indirect costs include opportunity costs in productivity differentials between new employees and those who have gone, errors, and low morale from other remaining employees.
Key Learnings
Two key learning points from the case are that employee training leads to a decrease in both indirect costs and direct costs and that it can result in an increase in revenue. Untrained employees have a direct and adverse impact on a business bottom line. They can be costly because they hardly care about their job obligations than their trained counterparts. While trained employees have vested interests in realizing their efforts and career progress, untrained employees might be pursuing ways to exit their jobs, and perhaps using minimal efforts at their workstations. Inexperienced employees are more likely to report absenteeism and create more turnovers in the firm. Such employees experience more accidents while at work which is costly in terms of expenses deducted in the income statement. Certain costs shall be incurred by the business to cover illness, training of new employees and on the compensation of workers increases over time, because of a poorly trained employee. Good training practices are poised to save labor by reducing the time an employee spends working with a customer, which ultimately saves the company money in the long run and produces a horned workforce. Therefore, this means that the company is likely to continue reaping the benefits in two years after the initial training.

Reference
Cascio, W. (2016). Managing human resources. McGraw-Hill Education