Assignment Purpose
Evaluating training programs is a critical but frequently neglected aspect of human resource management. Organizations may simply accept the value of training programs or they may be unaware of the importance of evaluation. Nevertheless, evaluation is necessary to determine how well a training program is achieving its goals. Criteria for evaluating training effectiveness might include productivity levels, turnover rates, accident rates, and absenteeism rates. Regardless of the criteria selected, the personnel manager must select an evaluation design.
In this assignment, you will evaluate a training program at a utility company using a cost/benefit analysis. Costs of training include instruction, equipment, materials, facilities, and the time of the participants. Training benefits include the dollar value of productivity increases. The benefits should outweigh the costs. This sounds simple enough but, in fact, it is quite difficult to estimate costs and benefits.
Excel Speadsheet File Associated with Assignment: HRM Anlalysis Assignment_2_2023.xlsx
Background
Opticity Power is an electric generating facility. The company has recently undertaken training programs to increase energy production by installing a solar farm in the Arizona desert. Top management firmly believes that this installation will provide significant productivity increases as well as being good for the environment. However, to effectively leverage this new solar farm, employees need to be trained on how to maintain the solar arrays as well as the software that manages the energy distribution from the solar farm. Management is concerned, however, with showing the effectiveness of the program. You have been hired as a human resource consultant to complete a training cost/benefit evaluation.
Note
As you work through the assignment, please be sure to continually save your work after each section. Save your work as a new Excel file using your first initial and last name. For example, Joe Smith would be
“jsmith_HRMAnalysis_2_2023.xlsx”.
As with any of the functions used in this assignment, Microsoft and YouTube have excellent tutorials that can assist you in using them. In addition, your professor has recorded videos that demonstrates how to execute the procedures described below (with a different set of data) that can be accessed via the links below.
Part 1: https://www.youtube.com/watch?v=e3y4PneWbwo
Part 2: https://www.youtube.com/watch?v=CqICGn24br0
In addition, the Word file below describes step-by-step procedures for executing this analysis are also attached to this assignment: HRM Analysis 2 Instructions 2023.docx
Your task is to complete the spreadsheet model for the cost/benefit analysis and interpret the results. In your submission of the assignment you should include your spreadsheet with all functions as well as a brief report (~300 words) that addresses the questions below. The grading rubric for this assignment is displayed in the syllabus and the deadline for submitting your excel file and report is 11/16/2023 by 11:30 pm CST.
Questions.
Using the data from the spreadsheet, answer the following questions in a separate document.
1. What do the net results indicate about the training program?
2. Based on the cost/benefit analysis should Opticity Power continue the training program? Briefly explain.
3. The Training Specialists in charge of the training program think that the estimated productivity increases resulting from training are too high. They are more comfortable with 10% increases. Change each of the entries in the range C43:G43 to reflect 10% increases for all five years. Should the training program be continued considering the new productivity figures? Explain.
4. Using the same assumptions as Question 2, what if the productive contribution per employee was $3,000 instead of $4,500. Enter $900,000 ($6000 times 300 trainees) in cell B41. Should the training program be continued? Explain
