Relationship between Job Training Costs and the Profitability of Top companies in Kerman Province of Iran
Subject Areas : Business ManagementMehdi amirzadeh 1 , Ahmad Jafarnejad 2 , Hassan Khubyari 3
1 - PhD student in Production Management and Operations, University of Tehran،Iran
2 - Professor, Department of Industrial Management, University of Tehran, Iran
3 - PhD student, Department of Business Management, University of Tehran
Keywords: profitability, education, costs, Job training,
Abstract :
Today job training is regarded as an important factor in improving the business environment. Performing the job training activities as well as selecting the proper subject of training courses could have mutual benefits for both employers and employees. In addition, due to the growth of competition among the companies, each organization needs to improve its competitive capabilities. For improving the competitive capabilities of companies, many scholars try to introduce job training as one of the main parameters. Nevertheless, some companies do not have any job training programs for their employees because they believe that it will not affect their profit. Top companies in Kerman Province of Iran have similar issue that some of the mangers do not believe in the relationship between job training costs and their profitability. In addition, some of these companies do not have any R&D costs which may be one of the reasons that they do not invest on job training. Therefore, this research has two main objectives by focusing on the top companies in Kerman Province of Iran. First, the relationship between job training costs and the profitability of organizations is studied as the main objective. Then it is investigated if there is a significant difference in job training costs between companies that have R&D cost and the companies with no R&D cost. The results show that there is a meaningful relationship between the job training costs and the profitability of organizations. Moreover, the results show that the companies with zero costs on R&D have less investment on job training.
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- Pakdel, R. (2004), “Management and leadership training organization (strategic Systmy_ attitude", Tehran, Moein Administration Institute.
- Soltani, E. (2006), “Training needs assessments and engagement in learning organizations, Isfahan”, Tehran, Pillars of Knowledge Publications.
- Hafeznia, M. (2005), “Introduction to human science research procedares”, Tehran.
- Chaychi, P. (2002), “Methods of training”, Tehran.
- Sarmad, and et all. (2005), “Behavioral science research methods”, Tehran, Aghah Publishing.
- Sam Ksniyan, R. Raabi, M. (2005), “Planning, human resource training (principles and processes)”, Tehran, Mehrbana.
- Fathi, K. (2002), “Needs assessment, models and techniques”, Tehran, Ayyig Publishing.
- Eydi, A. “Measuring the effectiveness of training courses”, MA thesis in Educational Management, University of Semnan, address available online at:
http://www.ensani.ir/storage/Files/20110214182839-s%20%285%29.pdf
- Abdel-Wahab,M. Andrew R. J. Dainty, Stephen.(2008),” An exploration of therelationship between training grants and profitability of UK construction companies” International Journal of Training and Development No12:3
- Cosh, A., Hughes, A., Bullock, A. and Potton, M. (2003), ‘The Relationship between Training and Business Performance’, Research Report No. 454 (London: Department for Education and Skills (DfES)).
- Dearden, L., Reed, H. and Van Reenen, J. (2000), Who Gains When Workers Train? Training and Corporate Productivity in a Panel of British Industries (London: The Institute for Fiscal Studies and University College).
- Fleetwood, S. and Hesketh, A. (2006), Living (and dying) by numbers: the continuing weakness of the HRM-organisational performance link. Working paper, Institute for Advanced Studies, Lancaster
- Guest, D. E., Michie, J. and Conway, N. (2003), ‘Human resource management and corporate performance in the UK’, British Journal of Industrial Relations, No.41.pp 291–314.University. Available at www.lancs.ac.uk/ias/researchgroups (accessed 10 February 2006).
- Kalili .M, Mohseni. A. (.2012), The role of practical training in productivity and profitability of organizations in the Third Millennium. Social and Behavioral Sciences No47.pp 1970 – 1975
- Learning and Skills Council (LSC) (2007), Skills in England. Available at research.lsc.gov.uk
- Wall, T. D. and Wood, S. J. (2005), ‘The romance of human resource management and business performance, and the case for big science’, Human Relations,No 58, pp 429–62