Poshby Department Store: External Training Cost Analysis and Benefits

This report analyzes the costs and benefits of external training for Poshby, a luxury goods departmental store in Hong Kong. The company is experiencing declining sales and high employee turnover, prompting an investigation into its training and development practices. The report explores the costs associated with using external trainers, including fixed, variable, and indirect costs, and compares them to the advantages such as specialized skills and fresh perspectives. The report also considers the disadvantages of using external trainers, such as potential breaches of confidentiality and higher costs. The conclusion emphasizes the importance of cost control and suggests that Poshby should leverage its existing resources, like internal managers, to reduce training expenses and improve employee retention. References to academic sources are included to support the analysis.

Learning and Development

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Cots involved in using external training.................................................................................1
2. Advantages and disadvantages of using external trainer........................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Poshby is a small departmental store in Hong Kong which deal in luxury products and
services. Management open their two store in last few years in city Y and city Z. the sales growth
of a company from last few years get decline because their staff and customer base is leaving
hand of management. HRD manager find out several major issues which are the essential
elements behind these things like promotion, salary increment etc. Management employee
turnover cost is increasing due to these type of activities as they are using modern method of
training and development (Bhuasiri and et. al., 2012). A major thing behind this assignment is to
determine the cost which involved in using external provider for training along with its
advantages and disadvantages.
MAIN BODY
1. Cots involved in using external training
Poshby is going to use online or blended learning or training to their employees. By this
they are going to provide session through internet which is costly to implement in an appropriate
manner. Along with this, if they use external or outsider for providing training and development
programme to their employees. This increase employee turnover because another individual is
hiring for providing training (O'Neil, 2014).
Along with this, management have to recruit an expertise for providing training of health
and safety to their workers every year. Security manager is one who holds the responsibility to
provide proper training about health and safety. Along with this, managers at each level also
have to play their roles by assigning duties to subordinates and trained them to make sure that
their health and safety is major concern. Thus, with the help of security managers and sales
officer it become easy to take some crucial steps for increasing chances of health and safety.
Thus, by using managers and their support it will lead to decrease the cost of training by external
trainer as well. For improving this fact and problems, management consult human resource
development consultant which will provide adequate suggestion to control the cost in this
process. There are various sort of cost get determine which are:1. Fixed: It is such type of cost which do not get changed according to course of time. Thus,
management do not suffer any sort of loss by this tool. Equipments, land and building are
several example of fixed cost but according to present case context, fixed cost is
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providing training by security manager or other managers. As they do not take some extra
remuneration for this.2. Variable: This is such type of cost which get vary according to course of time. Hence,
management have to bear some loss through this fact. The cost of hiring another person
for providing training is variable cost for PoshBy.
3. Indirect: These are such sort of cost which incur on project at any time and increase the
cost of production. It is not appropriate for business context. Management have to bear
high indirect cost by providing training to other and external expertise. Poshby Cost will
increase by doing this factor into business.
Management have to determine all of these cost which is going to imposed on their event.
Although, their profit is getting decline and this they do not have adequate finance to deal with a
problem like employee turn over. Hence, management have to use their resources in an
appropriate manner by taking help some of their managers as well as board of directors which
lead to incur some low money as compared to using external personality for this purpose.
2. Advantages and disadvantages of using external trainer
External trainer is a person who hire by an organisation for delivering training to their
workforce in relation to make them effective and efficient in nature (Slagter, Davidson and Lutz,
2011). Poshby have to underlay all advantages and disadvantages of using external trainer in
their training process for organising this successful programme (The Advantages of Outside
Trainers for Employees, 2017):
Advantages Limitations
Outside trainer have more competitive skills
and they use more aggressive techniques by
providing training as compared to internal
supervisor and managers.
Confidentiality of an entity will might get
breach by using external trainer. This is one of
a finest limitation by using this approach.
New eye which enable firm to improve their
inefficiency by measuring all insight of a
company.
Costly in nature because external trainer charge
some more money for providing training.
They provide training to other venue which
facilitate a platform for interacting with others
Sometime external trainer not get the focal
point properly which further work in wrong
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and improve their skills as well. direction and signifies as wrong decision.
Poshby have to take all these in account and use their internal trainer for providing
training. They do not have adequate fund to arrange this sort of activity and management have to
deliver training according to their capability.
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REFERENCES
Books and Journals
Bhuasiri, W. and et. al., 2012. Critical success factors for e-learning in developing countries: A
comparative analysis between ICT experts and faculty. Computers & Education. 58(2).
pp.843-855.
O'Neil, H. F. ed., 2014. Learning strategies. Academic Press.
Slagter, H. A., Davidson, R. J. and Lutz, A., 2011. Mental training as a tool in the neuroscientific
study of brain and cognitive plasticity. Frontiers in human neuroscience. 5.
Online
The Advantages of Outside Trainers for Employees. 2017. [Online]. Available through
:<http://smallbusiness.chron.com/advantages-outside-trainers-employees-21939.html>.
[Accessed on 29th September 2017]
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