Question

Describe the cost-benefit analysis an individual should use when trying to decide whether or not to invest in general on-the-job training. Explain why these decisions may differ for women versus men. Graphical analysis is strongly encouraged

Answer 1

Cost Benefit Analysis – On-job-training:-

Training comes at a cost and thus, any organisation before having an on-job-training would be interested to know the cost benefit analysis for the same. Training involves 3 types of costs that can be classified as follows:-

1. Pre-training costs: - costs incurred towards procurement of various training material, training class rental, training material, etc.
2. Training costs: - Trainers fees.
3. Loss of man days of work.

The benefits attributed to on job training includes – increased productivity, higher productivity, economical use of material and machinery, etc.

The best way to calculate the cost benefit analysis would be to calculate the ROI on the on-job-training i.e. Benefits from training / Costs*100.

The more the ROI from on-job-training, the more beneficial the on-job-training.

These decisions would differ for men and women generally because considering the following factors:-

• Leaves – Women are more inclined to take leaves eg- maternity leaves.
• Productivity- Men are considered more active in physical labour work.