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Training
You are the training manager for your organization and must consider whether to create training in house or purchase training from a vendor. Describe the considerations you must take into account for both decisions.
Training is extremely important in organizations operating in the present day dynamic environment. But whether to create training in house or purchase training from a vendor is an important decision that the company has to take. The considerations that need to be made in order to decide on it are as below.
- Cost of technology: The cost involved in setting up a training facility is considered to identify the cheaper option.
- Significance of training in the business: For some companies training is not the primary necessity. In such cases the company does not need to develop training facility by involving huge investment, but outsource the training functions.
Resources available: Running an internal training organization requires people of various levels of skills and talent. Full-time internal staff is a fixed resource. But training is a variable activity. Using an external vendor allows the company to flex the number of resources to deliver the training as and when needed. It allows the company to scale up and down based on the demand of training needed (Seth, & Sethi, 2011). But if the company has continuous and heavy requirement for training it might make sense for the company to develop training facilities in-house.
- Geographic reach: If the company has to train employees spread across locations, the company may opt to outsource training top a vendor who has facilities across geographies.
- Knowledge and expertise: There is no company which has all the competencies internally. Some companies may be competent in certain areas of expertise of human resources and not in others. In case the company has expertise in training functions, it can opt for in-house training, or else the company can opt for a vendor (Seth, & Sethi, 2011).
- Cost effectiveness: The company needs to ensure the cost effectiveness of the training whether in house training or hiring a vendor helps the company to save money (Noe, 2010).
Reference
Noe, R.A. (2010). Employee training and development. 5th ed. New York, NY: McGraw-
Hill/Irwin.
Seth, M. & Sethi, D. (2011).Human Resource Outsourcing: Analysis Based On Literature
Review. International Journal of Innovation, Management and Technology, 2(2). Retrieved from http://www.ijimt.org/papers/118-m514.pdf
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