evaluation and measurement of training

8/3/2019 Evaluation and Measurement of Training

http://slidepdf.com/reader/full/evaluation-and-measurement-of-training 1/25

EVALUATION AND MEASUREMENT OF TRAINING

What is evaluation?It is the systematic collection and assessment ofinformation for deciding how best to utilize availabletraining resources in order to achieve organizational

objectives.Types of Training Evaluation:

One of the most common ways of evaluating trainingis named CIRO Framework of Evaluation. CIRO stands

for Context, Input, Reaction and Outcome.



a) Context evaluation: Obtaining and using informationabout the current operational context – that is, aboutindividual difficulties, organizational deficiencies, and so

on. In practice, this mainly implies the assessment oftraining needs as a basis for decision.

b) Input Evaluation: Obtaining and using informationabout possible training resources in order to choose

between alternative inputs to learning.c) Outcome evaluation: Monitoring the consequences of

training.



Three levels of outcome evaluation may bedistinguished:

Immediate Outcomes . Changes in trainees’ knowledge,skills and attitudes which can be identified immediatelyafter the completion of training. Assessment involvessome measures of how people have changed during atraining programme.

Intermediate outcomes . The changes in trainees’ actual

work behaviour which result from training. Assessmentinvolves monitoring performance on the job.



Long-term outcomes . The changes in the functioning ofpart or all of the oranization which have resulted from

changes in work behaviour originating in training.Assessment is usually in terms of output or financialmeasures.

d) Reaction Evaluation. Obtaining and using informationabout trainees on expressed current or subsequentreactions in order to improve training.



This framework is based on three simple andfundamental questions, which the trainer must constantlyask. These questions are as follows:

1) What needs to be changed?

2) What procedures are most likely to bring about thischange?

3) What evidence is there that change has occurred?

The first two questions must be settled before anytraining can begin. The third question however, canonly be answered fully after the training has beencompleted.



KIRKPATRICK’S MODEL

Another popular framework for training evaluation is

known as Kirkpatrick’s Model . This model has 4 steps asdescribed below:

Step 1. REACTION : How well did the

trainees like the programme?

Step 2. LEARNING : What principles facts &techniques were learned?

Step 3. BEHAVIOUR : What changes in job

behaviour resulted?

Step 4. RESULTS : What were the tangible

results?



For the evaluation exercise to be effective, it is veryimportant that training objectives are carefully thoughtand framed.

WHY EVALUATION ?

Training is done with specific objectives. Hence,evaluation of training is a must. It is necessary in order todetermine:



a) if the developmental objectives were achieved.

b) the effectiveness of methods of instruction.

c) if the best and most economic training activities wereconducted.

The importance of training evaluation is shown in thefollowing diagram which shows the sequence of training

activities.



THE SEQUENCE OF TRAINING ACTIVITIES



The Evaluation / Assessment Design

It follows the Kirkpatrick model and seeks to captureinformation at the four levels. It also seeks to collect data

from multiple sources: the course reactionaries,interviews with participants after the training event;interviews with business heads; other relevant results. Inaddition, there is an expressed commitment to devise

measures of evaluation and to tackle the systems issues-- a recognition that training is only one of the operatingsystems in the organization and should not be viewed inisolation.



This design is intended as an aim or objective ratherthan a reflection of standard operating practice. Itindicates how things should be done rather than they areusually done. For example, participants’ bosses are not

always aware of the purposes of the training event andthese interviews can produce limited results. However, anappropriate design assists in putting evaluation activity in

its context.



DETERMINIG RETURN ON IVESTMENT IN TRAINING

Return on investment (ROI) is an important training

outcome. Cost-benefit in this situation is the process ofdetermining the economic benefits of a trainingprogramme using accounting methods that look attraining costs and benefits. Training cost information isimportant for several reasons:

1. To understand total expenditures for training, includingdirect and indirect costs.

2. To compare the costs of alternative training



programmes.

3. To evaluate the proportion of money spent on trainingdevelopment, administration, and evaluation as well asto compare monies spent on training for differentgroups of employees.

4. To control costs.

The process of determining ROI begins with anunderstanding of the objectives of the trainingprogrammes. Plans are developed for collecting datarelated to measuring these objectives.



The next step is to isolate , if possible, the effects oftraining from other factors that might influence the data.Last, the data is converted to monetary value and ROI is

calculated.Four Steps of Cost Benefit Analysis

Comparing costs and benefits can be done in thefollowing four simple steps:

1. Calculate the cost of training. This will include trainingcosts such as:

Facilitator fees

Training design



Course materials

Videos and workbooks

Facilities rental

Equipment rentals (such as overhead projectors)

Production downtime (including employee time off the job)

Videoconferencing facilities Specialized computer equipment

Administration (such as registration procedures orconfirmation notices)



All the relevant costs, divided by the anticipated numberof participants, gives the cost per participant.

2. Determine the potential savings generated. These

savings might include: Fewer errors

Reduced customer turnover

Less equipment downtime

Increased revenue collection

Faster equipment start-up time

Reduced employee turnover, when turnover isattributable to poor supervision



Proper implementation of new customer strategies

Higher workplace morale through more effectivemanagement practices

Less time lost to grievance hearings and work stoppagesbecause of ineffective supervision

Reduced recruitment costs (because training can createmore job-ready candidates for promotion)

Maximized productivity of new employees throughefficient orientation training



3. Calculate the potential savings. To calculate potentialsavings, set goals for post-training achievements byidentifying and quantifying the changes a training

initiative will produce if all other factors are constant.The factors in the formula include the following:

Current level of performance (for example, 200 errorrates per month; six lost customer accounts per month;

five days lost to work stoppages per year) Translate the current level of performance into a Rupee

figure (for example: 200 error



rates x five minutes’ correction time x Rs.15 salary per

hour = Rs. 250 per month).

Identify the change that training can produce (forexample, reduce errors to 50 per month).

Calculate the savings that the target criteria will generate(for example; 200 errors – 50 errors = decrease of 150errors per month savings = 150 x five minutes / 60 xRs.15 = Rs. 87.50)

Identify a meaningful time line for realizing savings,based on your best business predictions about factorscontributing to

i i h d



errors remaining unchanged.

Identify the number of employees in the target traininggroup.

Divide the total anticipated savings by the number ofparticipants to identify the savings per participant.

4. Compare the costs to savings.

Multiply the cost per participant by the total number of

participants. Multiply the savings per participant by the total number

of participants.

Compare your figures to establish your



business case for training.

This exercise not only identifies actual costs andrealistic savings but also ensures that your trainingexpenditures are reasonable and targeted to measurebusiness outcomes.



In Actual Practice How to Calculate ROI ?

Once the costs and benefits of the programme are

determined, ROI is calculated by dividing return orbenefits by costs.

To calculate return on investment, follow these steps:

1. Identify outcomes (e.g., quality, accidents).

2. Place a value on the outcomes.3. Determine the change in performance after eliminating

other potential influences on training results.



4. Obtain an annual amount of benefits (operationalresults) from training by comparing results aftertraining to results before training (in Rupees).

5. Determine the training costs (direct costs + indirectcosts + development costs + overhead costs +compensation for trainees).

6. Calculate the total savings by subtracting the training

costs from benefits (operational results).7. Calculate the ROI by dividing benefits (operational

results) by costs. The ROI gives



an estimate of the Rupees return expected from eachRupee invested in training.

evaluation and measurement of training

Documents