I.

Introduction

ABC Corporation needs to conduct skills and development training of their

employees in order to reach the standards to the increasing technology
requirements.The Human Resource Department suggested that three of the
managers and eight supervisors to undergo the skills and development training. This
is to be held in the mother company in Japan for more advanced car technology and
electronics as per the HR Manager. This idea was opposed by the Vice President for
Finance and Operation Manager due to lack of staff for operations so they suggested
to invite technicians from the mother company instead to conduct the training here in
the Philippines.

II. Background of the Case

This case study mainly focuses in deciding where to conduct the skill and
development training for the ABC Corporation employees. ABC Corporation has two
options:

 Deploy the employees to the mother company in Japan to undergo the

training for two months which means that the local company in the
Philippines will be lacking of personnel for operations.
 Invite technicians from the mother company in Japan to conduct the training
in the Philippines which means a larger expenditure for the local company
because of the higher compensation and allowance of the foreign trainers.

III. Insights
ABC Corporation should consider conducting financial analysis together with the
Accounting and Budget Departments in order to know the return of expenditures
adequate to the company’s goal and financial capacity. The company should also
manage with uncertainty of program outcomes for the human resource program in a
way that maximizes the expenditures return as an investment.

IV. Conclusion
ABC Company should a decision-making technique of Cost-Benefit Analysis that
involves explicitly considering the position outcomes (benefits) as well as the
negative outcomes (costs) in order to make decisions more consistently,
systematically and correctly. There are two methods to conduct the Cost-Benefit
Analysis:

i. The Automated Information Systems which allows to gather, process and

disseminate information more quickly and efficiently. This can make the
cost-benefit analysis be feasible.
ii. The Cost-Benefit Framework will be supporting business related decisions
which will add value to the Automated Information Systems.

Deploying the employees abroad for skill and development training is a great
opportunity for the company’s success and which also means lacking of staff to
handle operations locally. For this option, company will be short of man power that
will make them hire reliever employees for their trainees abroad which means that
the company will be compensating the reliever employees as well as the trainees
abroad and also their trainers abroad so the expenditure will also be larger. This may
result a lesser profit at the moment but a larger profit in the future once the well-
trained supervisors and managers got back from the training.
Accepting foreign trainers from the mother company is also a great opportunity
to experience the training first-handed in the work field that the employees are
actually working and which also means higher expenditure for the local company.
With this option, ABC Company will have a greater advantage since the training will
be conducted at their workplace and lacking of man power will not happen. The
company will not be required to hire reliever employees for two months so they will
be compensating their trainees and the foreign trainers but have them handy for
operations since they will be trained in the actual automobile field. This may result a
stable or larger profit as of the moment and a larger profit in the future for having the
well-trained managers and supervisors to facilitate and supervise the operations.