Relationship between Job Training Costs and the Profitability of Top companies in Kerman Province of Iran

Subject Areas : Business Management

Mehdi 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

Received: 2015-07-26 Accepted : 2016-01-07 Published : 2016-05-21

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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