Discusison:
1. Are the calculated benefits of reduced turnover sufficient to justify the $680,000 in increased costs associated with the expansion of the human resource management department? Would your answer be the same if "reduced productivity during the learning period" was excluded from the analysis?
2. In addition to improved employee retention, what are some other areas of potential economic benefit to the organization from having a human resource department? what calculations would you do to prove such benefits?