ERIC Number: ED397235
Record Type: Non-Journal
Publication Date: 1993
Pages: 5
Abstractor: N/A
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Assessing Corporate Culture and Infrastructure before Undertaking Cost-Benefit Analysis.
Driscoll, Margaret
Insights & Issues, Win 1993
One of the simplest definitions of cost-benefit analysis states "ultimately, it is nothing more than a logical attempt to weigh the pros and cons of a decision" (Gramlich 1981). This definition highlights two issues: practitioners should be clear about what decisions will be made as a result of this analysis, and they need to decide how they will measure the pros and cons. Organizational considerations when soliciting partners for a cost-benefit analysis include the following: the need for cooperation of other departments, advantages to partners, need for commitment of time and resources, and need to provide partners with access to records. The following issues are related to culture and infrastructure: the total cost of training; cultural taboos related to sharing information on salary ranges; departmental attitude toward sharing proprietary, strategic, competitive, or sensitive internal data; and acquisition of financial information. The literature on benefit models does not provide a single all-purpose benefits model because of the complexity of valuing benefits and establishing benchmarks. Two steps must be taken before conducting a cost-benefit analysis study--assessment of the organization's culture and infrastructure and identification of potential partners from divisions within the company who are willing to support data collection. (Contains 13 references.) (YLB)
Publication Type: Opinion Papers
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Language: English
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