Solve problems 1-5 in the Exercises section of chapter 11 of Investing in People….
#1 – Jane Burns, an HR analyst for Standard City, USA, knows that SDy for freighters in her city is $28,000. The fire department has asked the city to provide training in team building for $500 of its employees, at the cost of $2,500 per employee. The effects of this organization-development effort are expected to last for two years. Using equation 11-1, compute the break-even valuefor
d
t
necessary for the city to recoup the costs of the program.
#2 – Suppose, in Exercise 1, that you have just read a meta-analysis of team building studies and know that the cumulated estimate of
d
t
is 0.45. Compute an expected utility for the program and compare it to the break-even value you identified earlier. How might this affect the chances that the project will be funded?
#3 – With regards to Exercise #2, suppose that the discount rate is 10 percent and variable costs is -0.10. The city is not taxed. How do these factors affect the estimate of expected utility that you developed in Exercise 2?
#4 – Pilgrim Industries, a 2000-employee firm with 400 managers, holds 40 days of off-site meetings per year. Outside consultants develop and conduct the meetings, and, on average, 20 managers attend each meeting, The typical meeting lasts two full days. Last year, total program-development costs consumed $350,000. The average attendee’s salary (plus benefits) was 70.000. To deliver each two-day meeting for 20 people, sleeping accommodation, food, telephone, and a cocktail reception was $10,000. Also, transportation, business services, a meeting room, and audiovisual equipment rental totaled $11,000. Determine the total per-day, per-person cost of one off-site meeting.
#5 – Pilgrim’s CEO heard about the remarkable quality of telepresence web-based conferencing systems, and she has asked you to prepare a per-person, per-day cost comparison of an off-site meeting versus a web-based conference for a two-day meeting. You calculated the per-person, per-day cost of an off-site meeting in Exercise #4.
a) What costs must you consider concerning a web-based system?
b) Would you want any other information before recommending one alternative over the other?
DO NOT USE THE SOFTWARE ASSOCIATED WITH THE TEXTBOOK. PERFORM ALL YOUR CALCULATIONS BY HAND OR USING EXCEL