An economic downturn has significantly impacted Avondale Industries, and, as a way of reducing costs as revenues shrink, the company is considering cutting training and development dollars. Why is it a good idea for the company to still offer training, even though the training and development office might have to offer programs in more cost-effective ways? If the training and development budget is totally cut, it will be extremely difficult to rebuild the office when the economy has recovered. Offering training will help employees use company resources more effectively, which will allow them to be more satisfied in their current jobs. Offering ongoing training increases the likelihood that, in case the company needs to downsize, employees will have updated skills if they need to seek employment elsewhere. Training current employees is cheaper than hiring new employees, so offering training to existing employees will actually save the company money.

Quality of labor has a great impact on the productivity and growth of the organization. Labor is the…

Answered: An economic downturn has significantly…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Related questions

Question

An economic downturn has significantly impacted Avondale Industries, and, as a way of reducing costs as revenues shrink, the company is considering cutting training and development dollars. Why is it a good idea for the company to still offer training, even though the training and development office might have to offer programs in more cost-effective ways?

If the training and development budget is totally cut, it will be extremely difficult to rebuild the office when the economy has recovered.
Offering training will help employees use company resources more effectively, which will allow them to be more satisfied in their current jobs.
Offering ongoing training increases the likelihood that, in case the company needs to downsize, employees will have updated skills if they need to seek employment elsewhere.
Training current employees is cheaper than hiring new employees, so offering training to existing employees will actually save the company money.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.

Similar questions