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Cost benefit analysis of a particular HR management policy

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Cost-Benefit Template

Overview: This project is designed to help you to begin to understand the process of conducting a cost benefit analysis of a particular HR management policy or practice of your choosing. You are not expected to actually carry out the project. Rather, the assignment requires you to explain the data that would be required and the steps that would be followed should you be asked to perform such an analysis within your own organization.

The Task: Write a report explaining how to perform a cost-benefit calculation for a research question. Begin by selecting an HR topic of interest, and within that topic identify an issue to research. Some examples of potential topics are:

• Outsourcing of benefits administration, recruiting, etc.
• Costs and benefits of an executive development (training) program.
• Determining the economic benefit of high vs. low performing employees.
• Determining the economic costs of turnover of high and low performing employees.
• Determining the costs of absenteeism.

In your report, answer the following questions:

1. Why have you chosen the particular HR policy or practice for analysis? In general, would you expect that economic gains in this particular area would primarily be associated with lower costs, enhanced value (however you define it), or both?

2. Describe the potential cost categories that you have identified. How will you collect data on each element? Can you distinguish between fixed and variable costs in your analyses? How will you ensure the integrity of these data (i.e., how can you be sure that the data you have collected are reliable and valid)?

3. Describe the potential benefit categories that you have identified. How will you collect data on each element? How will you ensure the integrity of these data (i.e., how can you be sure that the data you have collected are reliable and valid)?

4. Describe the procedure that you would use to calculate the ROI of your particular practice. Does this procedure consider multiple time periods and the time value of money?

5. Finally, describe how you would present your findings to a senior executive team.

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The response addresses the query, which is posted in 1083 word with APA References.

// The cost-benefit analysis is a process that helps to analyze business decisions, and it also helps to estimate the pros and cons associated with the development of the business proposal. In this section, the cost-benefit calculation will be done for an HR related topic and within that topic some issues will also be identified. The section will also include the rationale for choosing the topic.//

The topic that is selected is "the cost and benefit of an executive development program".

This topic is selected for the research because, in the present competitive environment, executives require to triumph over their comfort zones in order to build new capabilities. The executive development program helps the executives to realize their potential and develop their skills to perform a broader role (Raynor & Ahmed, 2013). This topic helps to gain insight on the designing of this executive development program in order to increase the leadership skills, business skills and competencies of managers and executives to establish a group of top leaders in the future. As per personal perception, economic benefit in the executive development program will be associated with the lower cost and enhanced value because the training and development program for executives improve their productivity, reduce the recruitment cost, as well as, improve the customer service (Kauzes & Posner, 2012). Through this program, the organization does not have to search new talent, which will save the recruitment cost and increase the revenue of the organization. The executives will be more knowledgeable, and thus, their leadership qualities will influence other employees, which will improve their productivity and ultimately, will be profitable for the organization.

The potential costs associated with the program are as follows:

• Cost estimated for the designing and development of the training program

• Cost of the material required in the program for each ...

Solution Summary

The response addresses the query, which is posted in 1083 word with APA References.

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