1. Student Name :
Soumajit Nag
(GM15091 , SECTION-B)
TRAINING EXPENDITURE: COST OR INVESTMENT (OPENING CASE STUDY)
2. CASE STUDY
KPMG – one of the major accounting firms – provides accounting, auditing and tax services.
Majority of its employees are Chartered Accountants and CPAs. The company has ambitious
plans for expansion in view of boom in consultancy industry consequent upon globalization.
Company’s policy is promoting within and therefore, most of the senior level employees are
promoted from entry-level accountants. In view of its promotion policy, the company invests
heavily on training of employees in the form of development of in-house educational and
training facilities. Most of its employees receive training at frequent intervals in the
company’s training colleges.
Majority of training investment of the company is on technical and procedural training for
entry-level accountants in the areas of accounting, finance, tax, auditing, project reports and
report writing. However, KPMG has problems in attracting dynamic and energetic young
graduates from the colleges and universities. This situation, sometimes, discourages clients to
continue with KPMG in case of existing clients and approaching consulting.’ Employees of
the company gradually learn to interpret the subtleties of clients needs and sometimes
employees have been let go due to the absence of inter-personal skills.
The training colleges of the company, therefore suggested to provide training in interpersonal
skills. But the line managers point out that the company has conducted training in client and
customer relations, just two years back. They added that there is no improvement in customer
relations and the return on money spent on training can’t be justified. The senior managers of
the company feel that much investment in training is unnecessary as some of the trained
employees join other organizations.
However, most of the managers feel that investment in training is essential, but the dilemma
is that which part of the skill should receive more attention and investment.
3. OBJECTIVES OF THE CASE STUDY
To focus on the development of the employees.
To develop the inter-personal skills of an employees
in the various sectors in the field of technical and
procedural form.
To enhance the growth of an employee by providing
them opportunities.
Training provided efficiently so that the employees
can deal with the clients properly.
To check the brain-drain or to limit the process
within an organization such that the growth of the
organization could be stable and also the knowledge
of the employee after gaining the skill could be
retained.
To look into the matter that the training is cost
effective and it leads to the development of the
organization.
To promote the promotion to the employees after they
perform well for the benefit of the organization as
well as for the growth of the organization.
6. • Increased job satisfaction as most of the fresher do a
lot of hard work to develop themselves to sustain in
the organization.
• Increased innovation in strategies and products.
• Increased employee motivation by providing them
essential diversified training for developing their
personal and interpersonal skills.
• To enhance knowledge and gaining experience in an
organization.
• Performing effectively with minimum supervision,
minimum waste and spoilage and thereby producing
quality goods and services.
BENEFITS OF TRAINING PROCESS
7. Q1. Will training correct the problem of
interpersonal relations?
Ans: According to the case study the training for the un-
trained employee is an essential aspect for their
growth as without providing any training they
cannot gain knowledge and thereby they cannot
perform well. If the employees don't pose the
interpersonal then they are let to go by the clients
whom they are dealing with.
Therefore the training of an employee is an
important aspect for both self development and also
handling of the clients. But some line managers
most often point out about the fact that the already
trained employees must be given preferences who
already have the quality to deal with the clients and
thereby have strong inter-personal skills. So the line
managers felt that training provided leads to wastage
of money. Also, the top level managers felt that the
un-necessary investment in developing an
employees inter-personal skills leads to a great
problem as mostly the trained employees join other
organizations.
8. Q2. Is training cost effective?
Ans : According to the case study it has been found that by
proving training cost-effectiveness cannot be measured
as it is a situation in which the employee though getting
well trained performing well in an organization for a
long span of time, implements his/her knowledge in the
other areas or tries to shift in other organization where
there is more exposure and thereby implementing the
skills which they have acquired after being trained by
investing on them.
But it has also been observed that the entry-level
accountants are being trained in the areas of accounting,
finance, tax, auditing, project reports and report writing
which help them in getting early promotions and thereby
making their as well as the organizations future bright.
Cost effectiveness in most times is there as the
employees are workaholic and are more focused in
improving the task and generating outcome by
improving knowledge and sometimes employees do the
training to shift themselves and their knowledge if
opportunity exists.
So, training is mostly cost effective but sometimes due
to uncertain situations it is not measured.
9. Q3. Is KPMG provide the right knowledge
and skill?
Ans : The KPMG provides the employees right
knowledge and skills by developing their inter-
personal skills which help them in booming the
industry growth. Mostly the training that are
provided to the employees are technical and
procedural form of training. The employees by
gaining the knowledge implements it in modifying
their inter-personal skills and also dealing with the
clients effectively.
The KPMG industry invests on the training and
development of the employees so that they can retain
themselves in this organization and also they can
maximize the economic growth of the organization.
The company provides training in the companies
training college because it generates diversification
of knowledge and also the promotion of the
employees from entry-level personnel to senior-level
is taken into consideration. And the training that is
provided by the KPMG is not one time training but
it is done multiple times to facilitate the growth and
enhancement of opportunities
10. SUMMARY OF THE CASE STUDY
The summary of the case study is that KPMG company invests on
its employees skills development programme so that they can
enhance and uplift the growth of the company. KPMG is one of the
best in class for providing technical and procedural training for the
entry-level accountants in the areas of finance, tax, etc and also it
helps learn the employees to deal with the client for inter-personal
as well as organizations development.
There is a dilemma about the training programme among the
managers as some of the managers do not want to provide the
entry-level training to the employees as investment is high in that
case and some thinks it is essential.
So to not get ransacked from the employees position in the
company, the KPMG firm provides best in class training and
thereby investing on knowledge and skill development.