Framework

For
Human Resource Development
Chapter 4 to 7

1. Assessing HRD Needs

2. Designing Effective HRD Programs
3. Implementing HRD Programs
4. Evaluating HRD Programs
Assessment of HRD Needs
Chapter 4
 Goals of HRD

 Solving current problems (like an increase in

customer complaints)
 Preventing anticipated problems (such as a
shortage of skilled technicians)
 Including as participants those individuals
and units that can benefit most
 Needs Assessment
Needs assessment (or needs analysis) is a process
by which an organization’s HRD needs are
identified and articulated.

Levels of Needs Analysis

 Organizational Analysis
 Task Analysis
 Person Analysis
 Unwillingness to Perform
Needs Assessment
 Can be a difficult time-consuming process
 Action is valued over research
 Unnecessary because available information
already specifies organization needs (fads,
etc.)
 Lack of support
 Diagnostic needs focus on the factors that lead to effective
performance and prevent performance problems, rather than
emphasizing existing problems.

 Analytic needs, on the other hand, identify new or better ways to

perform tasks.

 Compliance needs are those needs mandated by law. They most

often involve mandated training programs, such as safety training,
food handling, or compliance with healthcare regulations.
 Organizational Analysis
Organizational analysis is a process used to better
understand the characteristics of an organization to
determine where training and HRD efforts are needed and
the conditions under which they should be conducted.

According to Irwin Goldstein, an organizational

analysis should identify
 Organizational goals and strategy
 Organizational resources (financial, facilities, resources)
 Organizational culture/climate
 Environmental constraints
 Data Sources for Organizational
Analysis – Part 1 of 3
Data Source Training Need Example
Recommended Implications

Organizational Goals, Where training emphasis To maintain a quality

Objectives and Budget can and should be standard of no more than 1
placed. reject per thousand
Goal is to become ISO
certified and 90,000 dollars
has been allocated to this
effort

Labor Inventory Where training is Thirty percent of our truck

needed to fill gaps drivers will retire over the
caused by retirement, next four years
turnover, age, etc.
 Data Sources for Organizational
Analysis – Part 2 of 3
Data Source Training Need Example
Recommended Implications

Organizational Climate These may help focus on

Indices problems that have
training components

 Grievances Items related to Seventy percent of

productivity are useful grievances are related to
in determining behaviors of 6 supervisors
performance
deficiencies

 Absenteeism High absences in clerical

staff
 Accidents Accident rate for line workers
increasing
 Data Sources for Organizational
Analysis – Part 3 of 3
Data Source Training Need Example
Recommended Implications

Analysis of Efficiency Can help document

Indices difference between actual
performance and desired
performance
 Cost of labor Labor costs have increased
8 percent in the last year

Changes in System or New or changed equipment The line has been shut down
Subsystem may present training about once per day since the
problem new machinery was installed.
Waste has doubled since
using the new cutting tool
 Task Analysis
 Task analysis (sometimes called operations
analysis) is a systematic collection of data about a
specific job or group of jobs used to determine
what employees should be taught to achieve
optimal performance
 Overall job description
 Task identification
 What it takes to do the job/KSAs
 Areas that can benefit from training
 Prioritizing training needs
 Data Sources For Task/Operational
Analysis – Part 1 of 3
Sources for Obtaining Training Need Implications Practical Concerns
Job Data

1. Job Descriptions Outlines the job’s typical Often inaccurate due to time
duties and responsibilities constraints or job knowledge.
but is them not meant to
be all inclusive

2. Job Specifications List specified tasks required May be product of the job
for each job. description and suffer from the
same problems

3. Performance Objectives of the tasks of Very useful if available, and

Standards job, and standards by accurate, but often
which they are judged. organizations do not have
formal performance standards
 Data Sources For Operational Analysis –
Part 2 of 3

Sources for Obtaining Training Need Implications Practical Concerns

Job Data

4. Perform the Job Most effective way of Easy, short cycle type jobs are a
determining specific tasks, possibility.
but has serious limitations
in higher level jobs

5. Observe Job—Work Most effective way of Useful again for very short cycle
Sampling determining specific tasks, jobs. Be aware of the impact of
but has serious limitations being observed can influence
in higher level jobs behavior
 Data Sources For Operational Analysis –
Part 3 of 3

Sources for Obtaining Training Need Implications Practical Concerns

Job Data

6. Questions directed to Most often used method the job

the job holder and holder and his supervisor
the supervisor. have different perspectives
and information

7. Review Literature Useful for determining Need to be sure information is

concerning job specific issues related to relevant to your organization
in professional the job and what is being
journals practitioner done by others and what
journals other the results are
industries
 Person Analysis
 Person analysis is directed at determining the
training needs of the individual employee.
 Performance deficiency
 Is performance substandard?
 Are current employees capable of training?
 Can performance be improved through training
 Issue of whether to train, replace, motivate
 Target population – values, education, prior
knowledge, motivation
 Data Sources for Person Analysis – Part
1 of 5
Data Sources for Training Need Remarks
Obtaining Data Implication
Performance Data or Easy to analyze and Supervisor ratings are
Appraisals quantify for purposes often done poorly as there
of determining subjects is no real incentive to do
and kind of training them well, and a lot of
needed. good reasons not to

Observation – Work More subjective Done effectively in some

Sampling technique. situations like customer
service where you can
monitor behavior
Interviews Only individual knows Be sure employee believes
what he believes he it is in his best interest to
(she) needs to learn. be honest
 Data Sources for Person Analysis – Part
2 of 5
Data Sources for Training Need Remarks
Obtaining Data Implication

Questionnaires Same approach as Same concerns as the

the interview. interview
Tests Can be tailor-made or Care in the development
a. Job knowledge standardized. Care of scoring keys is
b. Skills must be taken so that important and difficult to
they measure job do if not trained in the
c. Achievement related qualities. process
Attitude Surveys On an individual basis, Important to use well
useful in determining developed scales
morale, motivation, or
satisfaction of each
employee.
 Data Sources for Person Analysis – Part
3 of 5
Data Sources for Training Need Remarks
Obtaining Data Implication

Checklists or Up-to-date listing of each Rely on supervisor

Training Progress employee’s skills. ratings, see “Performance
charts data or Appraisals”

Rating Scales Care must be taken to Rely on supervisor

ensure objective ratings, see “Performance
employee ratings. data or Appraisals”

Critical Incidents Observe actions critical Rely on supervisor

to successful and ratings, see “Performance
unsuccessful data or Appraisals”
performance.
 Data Sources for Person Analysis – Part
4 of 5
Data Sources for Training Need Remarks
Obtaining Data Implication
Diaries The individual
employee records
details of his (her) job.

Devised Situations Certain knowledge, Useful, but again, care

skills, and of attitudes in development of
are demonstrated in scoring criteria is
these techniques. important

Assessment Centers Combination of several of Although expensive to

the above techniques. develop and operate,
these are very good
 Data Sources for Person Analysis – Part
5 of 5

Data Sources for Training Need Remarks

Obtaining Data Implication

Coaching Similar to interview – Must choose coaches

one-to-one. carefully and train to be
most effective

MBO or Work Provides actual performance Good process when

Planning data on a recurring basis implemented properly,
related to organizational and Review Systems are
and group or individually the support of top
negotiated standards. management
Designing Effective HRD Programs
Chapter 5
 Phase One: Needs Assessment

 Should be completed before you start Phase

Two
 You know:
 Where training is needed
 What kinds of training are needed
 Who needs to be trained
 Conditions for training
Phase Two: Design
 Phase Two: Designing the Training or HRD
Intervention

Key activities include:

 Setting objectives
 Selecting the trainer or vendor
 Developing lesson plans
 Selecting methods and techniques
 Preparing materials
 Scheduling training
 Objectives
 Performance
An objective always says what a learner is expected to be able to
do and/or produce to be considered competent; the objective
sometimes describes the product or result of the doing. Example:
“Write a product profile for a proposed new product.”
 Conditions

An objective describes the important conditions (if any) under

which the performance is to occur. Example: “Given all available
engineering data regarding a proposed product, trainee will write a
product profile.”
 Criteria

Wherever possible, an objective identifies the criteria of acceptable

performance by describing how well the learner must perform in
order to be considered acceptable. Example: “The product profile
must describe all of the commercial characteristics of the product
that are appropriate for its introduction to the market, including
descriptions of at least three major product uses.”
 “Make or Buy” Decisions

 You cannot be an expert on everything

 You can’t afford to maintain a full-time staff
for once-a-year training
 You can’t afford the time or money to build
all of your own training programs
 Implication: Much training is purchased,
rather than self-produced
 Factors to Consider Before
Purchasing an HRD Program
 Level of expertise available/required
 Timeliness
 Number of trainees
 Subject matter
 Cost
 Size of HRD organization
 “X” Factor (other conditions)
 Other Factors to Consider

 Vendor credentials
 Vendor background
 Vendor experience
 Philosophical match (between vendor and
organization)
 Delivery method
 Other Factors to Consider – 2

 Content
 Actual product
 Results
 Support
 Request for proposal (RFP)
 Selecting the Trainer

 Training competency
 How well can he/she train?
 If they can’t train, why are they employed?
 Subject Matter Expertise
 How well is the material understood?
 If No Subject-Matter Experts
(SMEs) are Available…
 Use a team to train
 Use programmed instruction or CBT
 Train your trainers…
 You are training subject matter experts to be
trainers
 You are not training trainers to be SMEs
 Preparing Lesson Plans

 Content to be covered
 Activity sequencing
 Selection/design of media
 Selection of trainee activities
 Timing and phasing of activities
 Method(s) of instruction
 Evaluation methods to be used
 Training Methods
Methods Percent
Instructor-led Classroom Programs 91
Self-Study, Web-based 44
Job-based Performance Support 44
Public Seminars 42
Case Studies 40
Role Plays 35
Games or Simulations, Non-computer-based 25
Self-Study, Non-computer-based 23
Virtual Classroom, with Instructor 21
Games or Simulations, Computer-based 10
Experiential Programs 6
Virtual Reality Programs 3
Media
Workbooks/Manuals 79
Internet/Intranet/Extranet 63
CD-ROM/DVD/Diskettes 55
Videotapes 52
Teleconferencing 24
Videoconferencing 23
Satellite/Broadcast TV 12
Audiocassettes 4

SOURCE: From 2003 Industry Report (2003). Training, 40(9), 21–38.

 Types of Training
Computer Applications 96 Computer Programming 76
New Hire Orientation 96 Personal Growth 76
Non-Executive Management 91 Managing Change 75
Tech. Training 90 Problem Solving/Decision Making 75
Communications Skills 89 Time Management 74
Sexual Harassment 88 Train-the-Trainer 74
Supervisory Skills 88 Diversity/Cultural Awareness 72
Leadership 85 Hiring/Interviewing 71
New Equipment Operation 85 Strategic Planning 69
Performance Management/Appraisal 85 Customer Education 68

Team Building 82 Quality/Process Improvement 65

Customer Service 81 Public Speaking/Presentation Skills 62
Product Knowledge 79 Basic Life/Work Skills 62
Executive Development 78 Ethics 61
Safety 77 Sales 55
Wellness 54
 Selecting Training Methods

Consider the following:

 Program objectives
 Time and money available
 Resources availability
 Trainee characteristics and preferences
 Training Materials

 Program announcements
 Program outlines
 Training manuals and textbooks
 Training aids, consumables, etc.
 Scheduling Training

Must be done in conjunction with:

 Production schedulers
 Shift supervisors
 Work supervisors/managers
 Trainees
 Training During Normal
Working Hours
Issues to consider:
 Day of week preferred
 Time of day
 Peak work hours
 Staff meeting times
 Required travel
 Training After Working Hours

 Are workers/trainees getting paid? If so, by

whom?
 What about personal commitments?
 What do you do for shift workers?
 Registration and Enrollment
Issues
 How, when, and where does one register?
 Who is responsible for logistics?
 Travel
 Lodging
 Meals
 Etc.
 How do one cancel/reschedule?
Implementing HRD Programs
Chapter 6
The Implementation Stage
 The Learning Pyramid

By Permission: Yin (2004)

 Training Delivery Methods

Three basic categories:

 On-the-Job Training
 Classroom Training
 Self-Paced Training
Note: Computer-based training can be in a classroom,
or individual/self-paced.
 On-the-Job Training (OJT)

 Job instruction training (JIT)

 Job rotation
 Coaching
 Mentoring
 Characteristics of OJT

 Training at one’s regular workstation

 Most common form of training
 Strengths:
 Realism
 Applicability
 Weaknesses:
 No formal structure
 Can perpetuate mistakes
 More on OJT

 Facilitates training transfer to the job

 Reduced training costs, since classroom is
not needed
 Noise and production needs may reduce
training effectiveness
 Quality and safety may be impacted
 Job Instruction Training (JIT)

 Prepare the worker

 Present the task
 Practice the task
 Follow-up
 JIT Process

 Observe work processes

 Brainstorm improvements
 Analyze options
 Implement improvements
 Evaluate results and make adjustments
 Job Rotation

 Train on different tasks/positions

 Often used to train entry-level managers
 Also used to provide back-up in production
positions
 Coaching and Mentoring

 Coaching – between worker and supervisor

 Can provide specific performance improvement
and correction
 Mentoring – senior employee paired with a
junior employee (“protégé”)
 Helps to learn the ropes
 Prepares protégé for future advancement
 Classroom Training
Approaches
Five basic types:
 Lecture
 Discussion
 Audiovisual Media
 Experimental Methods
 Self-Paced or Computer-Based Training
 Lecture

 Oral presentation of material

 Some visual aids can be added
 Remains a very popular training method
 Transfers lots of information quickly
 Interesting lectures can work well
 Good to supplement with other materials
 Problems with Lecture Method

 One-way form of communication

 Trainees must be motivated to listen
 Often lacks idea sharing
 People don’t always like listening to lectures
 Discussion Method

 Two-way communication
 Use questions to control lesson
 Direct: produce narrow responses
 Reflective: mirror what was said
 Open-Ended: challenge learners – to increase
understanding
 Challenges of Using the
Discussion Method
 Maintaining control in larger classes
 Needs a skilled facilitator
 Needs more time than lecture
 Trainees must prepare for the lesson by
reading assignments, etc.
 Audiovisual Media

 Brings visual senses (seeing) into play, along

with audio senses (hearing)
 Types:
 Static Media
 Dynamic Media
 Telecommunications
 Static Media

 Printed materials
 Lecture notes
 Work aids
 Handouts
 Slides – e.g., PowerPoint
 Overhead transparencies
 Dynamic Media

 Audio cassettes
 CDs
 Film
 Videotape
 Video disc
 Telecommunications

 Instructional TV
 Teleconferencing
 Videoconferencing
 Experiential Training

 Case studies
 Business game simulations
 Role Playing
 Behavior Modeling
 Outdoor training
 Case Study Considerations

 Specific instructional objectives

 Case approach objectives
 Attributes of particular case
 Learner characteristics
 Instructional timing
 Training environment
 Facilitator’s characteristics
 Business Game Simulations

 Computerized versus manual

 Operational
 Financial
 Resource bound
 In-basket exercise
 Setting priorities
 Time-driven decision making
 Role Plays

 Self discovery; use of interpersonal skills a

plus
 Some trainees are better actors
 Transfer to job can be difficult
 Behavior Modeling

 Used mainly for interpersonal skills training

 Practice target behavior
 Get immediate feedback (video, among other
media)
 Outdoor Education

 Ropes courses, etc.

 Can facilitate teamwork
 Focus on group problem identification,
problem solving
 Often good for team building
 Fun – but is it effective training?
 Self-Paced Training

 Hard-copy
 Correspondence courses
 Programmed instruction
 Computer-Based Training (CBT)
 Computer-aided instruction
 Internet/intranet training
 Hard-Copy Self-Paced (i.e., Self-
Paced Computer-Based Training)

 Good for remote locations without Internet access

 Individual follows text at own pace
 Correct/incorrect answers determine progress
 Trainee works alone without instructor interface
 Still used, but increasingly being replaced by CBT
 Computer-Based Training
(CBT)
 Interactive with user
 Training when and where user wants it
 Trainee has greater control over progress
 CBT can provide progress reports and be tailored to
specific instructional objectives
 Trainee works on own with minimal facilitation by
instructor who is elsewhere
 Types of CBT

 Computer-Aided Instruction
 Internet & Intranet-Based Training (e-
learning)
 Intelligent Computer-Assisted Instruction
 Computer-Based Training
(Classroom-Based)
 Group-based
 Instructor is present and facilitates computer-
based learning
 Trainees are collocate and can help each
other
 Requires computer, etc., for each trainee
 Computer-Aided Instruction
(CAI)
 Drill-and-practice approach
 Read-only presentation of a “classic” training
program
 Multimedia courses
 Interactive multimedia training
 Simulations
 Advantages of CAI

 Interactive with each student

 Student is self-paced
 Logistics –
 Increasingly available over the Internet (or via an
organization’s intranet)
 Updates are easily distributed
 Instructional Management & Reporting
 CAN be cost-effective…
 E-learning

 Intranet
 Internal to site/organization
 Internet
 General communications
 Online reference
 Needs assessment, administration, testing
 Distribution of CBT
 Delivery of multimedia
 Intelligent CAI

 Uses computer’s capabilities to provide

tailored instruction
 Can use expert systems, fuzzy logic, and
other rubrics
 Can provide real-time simulation and
stimulation
 Implementing Training

 Depends on:
 Objectives

 Resources
 Trainee characteristics
 Other Considerations
Concerning Implementation
 Physical environment:
 Seating
 Comfort level
 Physical distractions
Evaluating HRD Programs

Chapter 7
 Effectiveness
 The degree to which a training (or other
HRD program) achieves its intended
purpose
 Measures are relative to some starting
point
 Measures how well the desired goal is
achieved
Evaluation
 HRD Evaluation
Textbook definition:
“The systematic collection of descriptive and
judgmental information necessary to make
effective training decisions related to the
selection, adoption, value, and modification
of various instructional activities.”
 In Other Words…

Are we training:
 the right people
 the right “stuff”
 the right way
 with the right materials
 at the right time?
 Evaluation Needs
 Descriptive and judgmental information
needed
 Objective and subjective data
 Information gathered according to a plan
and in a desired format
 Gathered to provide decision making
information
 Purposes of Evaluation

 Determine whether the program is meeting

the intended objectives
 Identify strengths and weaknesses
 Determine cost-benefit ratio
 Identify who benefited most or least
 Determine future participants
 Provide information for improving HRD
programs
 Purposes of Evaluation – 2

 Reinforce major points to be made

 Gather marketing information
 Determine if training program is appropriate
 Establish management database
 Evaluation Bottom Line

 Is HRD a revenue contributor or a revenue

user?
 Is HRD credible to line and upper-level
managers?
 Are benefits of HRD readily evident to all?
 How Often are HRD
Evaluations Conducted?
 Not often enough!!!
 Frequently, only end-of-course participant
reactions are collected
 Transfer to the workplace is evaluated less
frequently
 Why HRD Evaluations are
Rare
 Reluctance to having HRD programs evaluated
 Evaluation needs expertise and resources
 Factors other than HRD cause performance
improvements – e.g.,
 Economy
 Equipment
 Policies, etc.
 Need for HRD Evaluation
 Shows the value of HRD
 Provides metrics for HRD efficiency
 Demonstrates value-added approach for
HRD
 Demonstrates accountability for HRD
activities
 Everyone else has it… why not HRD?
 Make or Buy Evaluation

 “I bought it, therefore it is good.”

 “Since it’s good, I don’t need to post-test.”
 Who says it’s:
 Appropriate?
 Effective?
 Timely?
 Transferable to the workplace?
 Evolution of Evaluation Efforts
1. Anecdotal approach – talk to other users
2. Try before buy – borrow and use samples
3. Analytical approach – match research data
to training needs
4. Holistic approach – look at overall HRD
process, as well as individual training
 Models and Frameworks of
Evaluation
 Table 7-1 lists six frameworks for evaluation
 The most popular is that of D. Kirkpatrick:
 Reaction
 Learning
 Job Behavior
 Results
 Kirkpatrick’s Four Levels

 Reaction
 Focus on trainee’s reactions
 Learning
 Did they learn what they were supposed to?
 Job Behavior
 Was it used on job?
 Results
 Did it improve the organization’s effectiveness?
 Issues Concerning
Kirkpatrick’s Framework
 Most organizations don’t evaluate at all four
levels
 Focuses only on post-training
 Doesn’t treat inter-stage improvements
 WHAT ARE YOUR THOUGHTS?
 A Suggested Framework – 1

 Reaction
 Did trainees like the training?
 Did the training seem useful?
 Learning
 How much did they learn?
 Behavior
 What behavior change occurred?
 Suggested Framework – 2

 Results
 What were the tangible outcomes?
 What was the return on investment (ROI)?
 What was the contribution to the organization?
 Data Collection for HRD
Evaluation
Possible methods:
 Interviews
 Questionnaires
 Direct observation
 Written tests
 Simulation/Performance tests
 Archival performance information
 Interviews
Advantages: Limitations:
 Flexible  High reactive effects
 Opportunity for  High cost
clarification  Face-to-face threat
 Depth possible potential
 Personal contact  Labor intensive
 Trained observers
needed
 Questionnaires
Advantages: Limitations:
 Low cost to administer  Possible inaccurate data
 Honesty increased  Response conditions not
controlled
 Anonymity possible
 Respondents set varying
 Respondent sets the paces
pace  Uncontrolled return rate
 Variety of options
 Direct Observation
Advantages: Limitations:
 Nonthreatening  Possibly disruptive
 Excellent way to  Reactive effects are
measure behavior possible
change  May be unreliable
 Need trained observers
 Written Tests
Advantages: Limitations:
 Low purchase cost  May be threatening
 Readily scored  Possibly no relation to
job performance
 Quickly processed
 Measures only cognitive
 Easily administered learning
 Wide sampling possible  Relies on norms
 Concern for racial/
ethnic bias
 Simulation/Performance Tests
Advantages: Limitations:
 Reliable  Time consuming
 Objective  Simulations often
 Close relation to job difficult to create
performance  High costs to
 Includes cognitive, development and use
psychomotor and
affective domains
 Archival Performance Data
Advantages: Limitations:
 Reliable  Criteria for keeping/
discarding records
 Objective
 Information system
 Job-based discrepancies
 Easy to review  Indirect
 Minimal reactive effects  Not always usable
 Records prepared for
other purposes
 Choosing Data Collection
Methods
 Reliability
 Consistency of results, and freedom from collection
method bias and error
 Validity
 Does the device measure what we want to measure?
 Practicality
 Does it make sense in terms of the resources used to get
the data?
 Type of Data Used/Needed

 Individual performance
 Systemwide performance
 Economic
 Individual Performance Data

 Individual knowledge
 Individual behaviors
 Examples:
 Test scores
 Performance quantity, quality, and timeliness
 Attendance records
 Attitudes
 Systemwide Performance Data

 Productivity
 Scrap/rework rates
 Customer satisfaction levels
 On-time performance levels
 Quality rates and improvement rates
 Economic Data

 Profits
 Product liability claims
 Avoidance of penalties
 Market share
 Competitive position
 Return on investment (ROI)
 Financial utility calculations
 Use of Self-Report Data

 Most common method

 Pre-training and post-training data
 Problems:
 Mono-method bias
 Desire to be consistent between tests
 Socially desirable responses
 Response Shift Bias:
 Trainees adjust expectations to training
 Research Design

Specifies in advance:
 the expected results of the study
 the methods of data collection to be used
 how the data will be analyzed
 Research Design Issues

 Pretest and Posttest

 Shows trainee what training has accomplished
 Helps eliminate pretest knowledge bias
 Control Group
 Compares performance of group with training
against the performance of a similar group
without training
 Recommended Research
Design
 Pretest and posttest with control group
 Whenever possible:
 Randomly assign individuals to the test group
and the control group to minimize bias
 Use “time-series” approach to data collection to
verify performance improvement is due to
training
 Ethical Issues Concerning
Evaluation Research
 Confidentiality
 Informed consent
 Withholding training from control groups
 Use of deception
 Pressure to produce positive results
 Assessing the Impact of HRD
 Money is the language of business.
 You MUST talk dollars, not HRD jargon.
 No one (except maybe you) cares about “the
effectiveness of training interventions as
measured by and analysis of formal pretest,
posttest control group data.”
 HRD Program Assessment
 HRD programs and training are investments
 Line managers often see HR and HRD as costs –
i.e., revenue users, not revenue producers
 You must prove your worth to the organization
 Or you’ll have to find another organization…
 Evaluation of Training Costs
 Cost-benefit analysis
 Compares cost of training to benefits gained such
as attitudes, reduction in accidents, reduction in
employee sick-days, etc.
 Cost-effectiveness analysis
 Focuses on increases in quality, reduction in
scrap/rework, productivity, etc.
 Return on Investment

 Return on investment = Results/Costs

 Calculating Training Return On Investment
Results Results
Operational How Before After Differences Expressed
Results Area Measured Training Training (+ or –) in $
Quality of panels % rejected 2% rejected 1.5% rejected .5% $720 per day

1,440 panels 1,080 panels 360 panels $172,800

per day per day per year
Housekeeping Visual 10 defects 2 defects 8 defects Not measur-
inspection (average) (average) able in $
using
20-item
checklist

Preventable Number of 24 per year 16 per year 8 per year

accidents accidents

Direct cost $144,000 $96,000 per $48,000 $48,000 per

of each per year year year
accident

Return Total savings: $220,800.00

ROI = Operational Results
=
Investment Training Costs

= $220,800
= 6.8
$32,564

SOURCE: From D. G. Robinson & J. Robinson (1989). Training for impact. Training and Development Journal, 43(8), 41. Printed by permission.
 Types of Training Costs

 Direct costs
 Indirect costs
 Development costs
 Overhead costs
 Compensation for participants
 Direct Costs

 Instructor
 Base pay
 Fringe benefits
 Travel and per diem
 Materials
 Classroom and audiovisual equipment
 Travel
 Food and refreshments
 Indirect Costs
 Training management
 Clerical/Administrative
 Postal/shipping, telephone, computers, etc.
 Pre- and post-learning materials
 Other overhead costs
 Development Costs

 Fee to purchase program

 Costs to tailor program to organization
 Instructor training costs
 Overhead Costs
 General organization support
 Top management participation
 Utilities, facilities
 General and administrative costs, such as
HRM
 Compensation for Participants
 Participants’ salary and benefits for time
away from job
 Travel, lodging, and per-diem costs
 Measuring Benefits

 Change in quality per unit measured in dollars

 Reduction in scrap/rework measured in dollar
cost of labor and materials
 Reduction in preventable accidents measured in
dollars
 ROI = Benefits/Training costs
 Utility Analysis

 Uses a statistical approach to support claims

of training effectiveness:
 N = Number of trainees
 T = Length of time benefits are expected to last
 dt = True performance difference resulting from
training
 SDy = Dollar value of untrained job performance (in
standard deviation units)
 C = Cost of training

 U = (N)(T)(dt)(Sdy) – C
 HRD Evaluation Steps

1. Analyze needs.
2. Determine explicit evaluation strategy.
3. Insist on specific and measurable training
objectives.
4. Obtain participant reactions.
5. Develop criterion measures/instruments to
measure results.
6. Plan and execute evaluation strategy.
Thank you