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2. The most beneficial option would be to train a
senior PM, even if he fails to deliver the required
profit after the training (option 1 and 4 gives shorter
times of recovery than option 2).
3. Hiring a new senior PM is more beneficial than
training a junior PM but less beneficial than training
a senior PM even if he does not complete the
program or does not deliver the expected profits
(option 1 and 4 gives shorter times of recovery than
option 3).
The analysis presented in this section clearly
points to option 1 as the most beneficial choice.
Assuming the average learning abilities (k=2), the
investment in training will be recovered after 60 –
70 days for a PM who can deliver a profit ranging
from 11-13% of his salary upon a successful
completion of a PMP program.
4 CONCLUSIONS
As demonstrated in the Case Study discussed in this
paper, training proves to be the best option, which
not only improves a performance of a PM but also
outweighs hiring a new PM. Many companies are
looking at hiring as the less desirable choice. Their
decision, however, could not be justified with the
accurate ROTI analysis due to the lack of analytical
decision models.
Our decision model was developed in an attempt
to address the very issue. We are planning to extend
the model discussed in this paper into the decision
support system for human resource management and
develop a policy, which will offer guidelines and
recommendations for providing training to
employees.
However, before we can move in that direction
we must address the following two key limitations
of our model:
1. The limits for Progress Curve Coefficient (from
0.5 to 3.5 in Figure 4) were established from the
research on training provided to a project team prior
to implementation of an Enterprise Resource
Planning system (Plaza, Ngwenyama et al. 2010).
The testing procedures and a set of data for assessing
k must be established for a given industry sector
before the model can be used to support
development of a training policy.
2. The simple prototype system developed in
Excel in order to test the model must be expanded
into a decision support system, which will offer a
selection of graphs and reports required during a
comprehensive analysis. The system must be
properly tested by a wide group of managers and HR
personnel to demonstrate its real value and potential.
The results of this study are encouraging, so we
are planning development of a decision support
system as the natural next step.
ACKNOWLEDGEMENTS
Funding was generously provided by the Ryerson
Summer Assistant Program.
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