The research study set out to identify how Ghana International Airlines which is termed as the national airline use training as investment tool to improve efficiency in terms of maximizing shareholders wealth. There have been many attacks with regard to the services provided by the national airline. Some customers of the airline even claim that the employees who provide services to them have not got the required skills and knowledge and as such the services they receive from them are below expectations. On the other hand, if the national airline also claims that they invest so much money in their employees so as to ensure that better services are provided which at the end of the day will lead to more customers referring their friends and relatives, then there may be so many questions which one may need to ask. Among some of these questions are, do they invest in the right employees, do they design and develop their training programmes to meet the needs of the employees as well as the organization? Lastly one may also ask if they evaluate their training programme at the end of the day so as to know the cost and benefit associated with it.
The study was mainly to provide answers to these questions by using questionnaires and interviews so as to get responses from employees of the airline, heads of department as well as trainers and the human resource manager of the company. The study realized that the most common means of assessing whether an employee needs to go on training or not was the self request method where the employee choose from the list of training programmes of the airline which he is interested in. It was also realized that though Heads of Department of the airline play important role in the design and development of training programmes but when it comes to evaluation, there is no proper way to determine the cost and benefit associated with the training embarked by the airline. The study also came out with a way by which cost and benefit of a particular training programme can be determined using the Net Present Value technique. This was based on the opinion of the researcher on how training benefit of an organization can be determined.
The main limitation of the study was based on the responses given by the employees, heads of department, the trainers and the human resource manager since all the analysis of the study were based on their responses. [...]
Table of Contents
CHAPTER ONE: INTRODUCTION
1.0 Background of the study
1.1 Statement of the problem
1.2 Objectives of the study
1.3 Significance of the study
1.4 Justification for the study
1.5 Research questions
1.6 Scope of the study
1.7 Limitations of the study
1.8 Organization of work
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction
2.1 Training and investment – what are they?
2.2 Reasons for training investment
2.3 Framework for training investment process
2.3.1 Training needs assessment
2.3.2 Training design and development
2.3.2.1 Defining training objectives and Developing training content
2.3.2.2 Selecting trainers
2.3.2.3 Scheduling the training programme
2.3.3 Implementing the training programme
2.3.4 Training evaluation
2.4 Training investment at the Ghana National Airline
2.4.1 The national airline training centre
2.4.2 Objectives of the training centre
2.4.3 Facilitators of the training centre
2.4.4 Admissions and entre requirements of the centre
2.4.5 The national airline training policy
2.4.6 Courses available at the national airline
CHAPTER THREE: USING CAPITAL BUDGETING TECHNIQUE OF NET PRESENT VALUE TO DETERMINE THE BENEFIT OF TRAINING INVESTMENT
3.0 Introduction
3.1 Using capital budgeting of NPV to determine benefit of training Investment
3.1.1 Estimating the cost of training investment
3.1.2 Estimating the future benefits of the training investment
3.1.3 Estimating discount factor
3.1.4 Determining NPV of the training investment
CHAPTER FOUR: METHODOLOGY OF THE STUDY
4.0 The research approach
4.1 The case selection
4.2 Sources of data
4.3 The sample procedure
4.4 Data collection instruments
4.5 Quantitative techniques
4.6 Validity and reliability
CHAPTER FIVE: PRESENTATION AND ANALYSIS OF DATA
5.0 Introduction
5.1 Training needs assessment
5.1.1 Self request
5.1.2 Response to emergencies
5.1.3 Observation
5.1.4 Promotion/Upgrading
5.2 Design and development of training
5.3 Transfer of training
5.4 Evaluating training programme
CHAPTER SIX: CONCLUSIONS AND RECOMMENDATIONS
6.0 Conclusions
6.1 Recommendations
Research Objectives and Topics
The primary objective of this research is to evaluate the effectiveness of training as an investment tool within the Ghana International Airlines (the national airline) to enhance organizational efficiency and maximize shareholder wealth. The study investigates whether current training strategies and evaluation methods truly contribute to organizational performance or if they represent a cost rather than an investment.
- Assessment of organizational motives behind training investment.
- Analysis of training needs assessment, design, and implementation processes.
- Evaluation of the link between employee training, customer service, and profitability.
- Development of a cost-benefit model using Net Present Value (NPV) techniques.
- Examination of knowledge transfer from training programs to daily job performance.
Excerpt from the Book
1.0 Background of the study
In this modern era, many companies are shifting away from the old adage of production orientation to human resource based orientation. This means that organizations nowadays see investment in employees as a number one priority compared to focusing on production. Companies believe that when training is provided to employees as a means of investment, then all other things been equal, productivity will automatically increase. According to the Bureau of Labour Statistics (1995) which was cited by Tauer (2001), there is no question that training is a big business. That is, about US$37 billion were spent on trainees wage and salary in the United States (US) whilst they were on training. This really shows that a reasonable proportion of today’s companies’ budget are allocated to investment in employees training.
In the words of the American Society for Training and Development (ASTD 2001), organizational training investment data is one of the important issues investors consider before they decide which company they want to invest. This is due to the fact that, an organization’s training investment data helps investors to predict a firm’s stockholder’s return, gross profit margin as well as other financial performance measures. It is of no surprise that looking at what ASTD is saying on investment in training, that all other things been equal, investors prefer to invest in companies in developed countries like the United Kingdom (UK) and United States than those of the developing countries like Ghana where figures on training investment appears to be low.
Summary of Chapters
CHAPTER ONE: INTRODUCTION: This chapter outlines the shift towards human resource-based orientation, the rationale for the study, and identifies the core problem concerning training efficiency at Ghana International Airlines.
CHAPTER TWO: LITERATURE REVIEW: This chapter reviews academic literature on training and investment, covering the framework of the training process, needs assessment, design, implementation, and evaluation.
CHAPTER THREE: USING CAPITAL BUDGETING TECHNIQUE OF NET PRESENT VALUE TO DETERMINE THE BENEFIT OF TRAINING INVESTMENT: The author proposes the application of Net Present Value (NPV) to evaluate training as a financial investment rather than a cost, providing a calculation framework.
CHAPTER FOUR: METHODOLOGY OF THE STUDY: This chapter describes the research approach, specifically a singular case study of Ghana International Airlines, detailing data collection instruments like questionnaires and interviews.
CHAPTER FIVE: PRESENTATION AND ANALYSIS OF DATA: This section presents the primary data gathered from employees and management, analyzing the airline's training practices against standard industry requirements.
CHAPTER SIX: CONCLUSIONS AND RECOMMENDATIONS: The chapter synthesizes the research findings, concluding that training currently lacks systematic evaluation, and offers actionable recommendations to improve investment outcomes.
Keywords
Training, Investment, Net Present Value, Human Resource Management, Ghana International Airlines, Employee Productivity, Profitability, Needs Assessment, Training Evaluation, Knowledge Transfer, Skill Development, Efficiency, Capital Budgeting, Organizational Performance, Airline Industry.
Frequently Asked Questions
What is the primary focus of this thesis?
The thesis focuses on examining training as an investment tool within Ghana International Airlines to improve efficiency and shareholder wealth.
What are the central thematic fields covered?
The work covers training needs assessment, design, implementation, evaluation, and the financial justification of training using capital budgeting techniques.
What is the core research objective?
The core objective is to determine whether Ghana International Airlines effectively utilizes training as a strategic investment to enhance organizational performance and maximize profit.
Which scientific methodology does the author employ?
The researcher employs a singular case study approach, utilizing both primary data (questionnaires and interviews) and secondary sources (literature review) to analyze training practices.
What is the scope of the main analysis?
The main part of the thesis assesses the phases of the training process, including needs identification, course design, training delivery, and post-training evaluation, alongside financial analysis.
Which keywords define this research?
Key terms include Training, Investment, NPV (Net Present Value), Human Resource Management, Efficiency, and Performance evaluation.
Why did the author introduce the NPV technique?
The author introduced the Net Present Value technique to provide a scientific and financial way for the company to evaluate whether their training programs provide more benefit than the costs incurred.
What is the main finding regarding current training at the airline?
The study finds that while the airline invests in training, the process lacks systematic needs assessment and evaluation, leading to a weak relationship between training investment and profitability.
What is the recommended approach for future evaluations?
The author recommends implementing systematic follow-up evaluations involving department heads to measure performance gaps before and after training, rather than relying solely on trainee feedback forms.
- Citar trabajo
- Gabriel Dwomoh (Autor), 2011, Training as investment tool for improving efficiency in the National Airline of Ghana, Múnich, GRIN Verlag, https://www.grin.com/document/191468
