1. Calculate the missing values(?

) in the table below and then calculate the following

measures of training effectiveness

1 Training Duration 33 hours

2 Expected number of trainees 750
3 Training benefits accrued for 12 months
4 Costs (in 00's Rs)
5 Planning 40,930
6 Marketing 4,744
7 Administrative Expenses 12,713
8 Trainers' Expenses 86,250
9 Stationary 15,000
10 Amenities 40,500
11 Travel Expenses reimbursement 5,53,156
12 Training effectiveness expenses 872
13 Total Cost ?
14 Benefits (in 000's Rs)
15 labour savings 2,41,071
16 Productivity enhancements 6,75,000
17 Miscellaneous cost savings 1,61,250
18 Total Benefits ?
19 ROI ?
20 Payback period (in months) ?

2. Mindtrap Incorporated, an MNC headquartered at Mumbai, hired 50 new

management trainees in November 2015 fro few premier business schools of
India. The HR Head, leading a team of four HR executives, decided to conduct a
five-day long training programme for the new joiners to better facilitate the
orientation process. The team identified the training needs of the participants.
They came to the conclusion that the training can be best imparted by an
external training consultancy possessing the requisite skills. The in-house HR
team communicated the proposal to the training firm Xyler Ltd, a professional
company in the business of imparting professional training workshops located
in New Delhi, and asked quotations for their charges. Xyler officials replied
back that their charges would comprise of a one-time Rs 30,000 payment for
the external resource person provided by Xyler Ltd Additionally, Xyler would
rent a hotel for conducting the programme which would cost Rs.10,000/day
for 8 hours/day. Furthermore. Xyler has given a requisition for a one-time
stationery cost Rs. 30,000 in lieu ofproviding the training kit materials (licensed
software, copyrighted measurement tools, notepad, brochure, pen, and so on).
Xyler also communicated tha the food and lodging cost of the programme
would have to be borne by Mindtrap Incorporated. Their HR staff estimated
that to cover the food cost of 50 participants in the training, an approximate
daily expenditure of Rs. 15,000 would have to be incurred. Accommodation of
the participants in a hotel would cost Rs. 1,500 per participant per night and to
and fro AC 3-tier railway fare for each participants from Mumbai to New Delhi
and back will be Rs. 2,500.
The management insisted that one internal trainer would also accompany the
trainees to monitor the process. This would mean for the five days of the
training the HR personnel will not be productive for Mindtrap Incorporated.
that to cover the food cost of 50 participants in the training, an approximate
daily expenditure of Rs. 15,000 would have to be incurred. Accommodation of
the participants in a hotel would cost Rs. 1,500 per participant per night and to
and fro AC 3-tier railway fare for each participants from Mumbai to New Delhi
and back will be Rs. 2,500.
The management insisted that one internal trainer would also accompany the
trainees to monitor the process. This would mean for the five days of the
training the HR personnel will not be productive for Mindtrap Incorporated.
The average salary of an executive (including HR executive) at Mindtrap is Rs
100/hour per day. Typical working hour of ABC is from 9:00 AM to 6:00PM.
Similarily, it is considered that the 50 participants will also not contributing to
Mindtrap's productivity for the five days of training. If we consider the travel
time, it will be seven days of on-duty leave for the participants and teh HR
executive. Mindtrap's HR head pointed out that they would have to consider
other overhead costs such as local conveyanvce and food consumed during
travel as well plus some othe amenities. The team allocated an additional Rs.
20,000 as overhead cost.
Xyler promised guranteed savings in terms of the following factors as an
output of their well-tested training module. The benefit may be listed as: (a)
Expected Labour savings= Rs. 1,000 per participant per month (in terms of new
efficiency, project completion rate), (b) productivity increase= Rs. 2000 per
participant per month (in terms of product development, new customer
acquisition and so on), (c) other cost savings= Rs. 500 per participant per
month (in terms of punctuality, deadline) and (d) Other income generation=
Rs. 500 per participant per month (through innovation, patent)
Mindtrap's HR team sat down together to analyse the proposition. Would
there be sufficient gain from this initiative? What will Mindtrap benefit out of
this? What will be the approximate period for the benefits to be appreciated?
The team decided to crunch some numbers to understand how long it will take
to get return on this training investment considering 12 months from training