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A case study in forecasting the financial benefits of unstructured and structured on‐the‐job training
Author(s) -
Jacobs Ronald L.,
Jones Michael J.,
Neil Sue
Publication year - 1992
Publication title -
human resource development quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.756
H-Index - 65
eISSN - 1532-1096
pISSN - 1044-8004
DOI - 10.1002/hrdq.3920030205
Subject(s) - task (project management) , turnover , training (meteorology) , operations management , finance , business , management , economics , physics , meteorology
This case study sought to compare the forecasted financial benefits of unstructured and structured forms of on‐the‐job training (OJT). It contributes to the limited empirical literature on OJT and expands the reported use of the financial benefits forecasting model. The study was conducted in three task settings within a large truck‐assembly plant; each task setting differed in task difficulty and turnover rate. The results showed that structured OJT was forecasted to provide approximately twice the financial benefits and five times the efficiency compared to unstructured OJT across all three task settings. In general, turnover rate more than task difficulty affected the size of the benefits. It was concluded that structured OJT should be the preferred training option over unstructured OJT when considering financial benefits alone.