made by badar e alam anwar

1. MMeeaassuurriinngg
RROOII ooff
TTrraaiinniinngg

2. AAggeennddaa
1. Measuring the Effectiveness of Training
Program
2. Measuring ‘Return on Investment’ of Training
3. Enhancing the Effectiveness and ROI of
Training

3. AA..MMeeaassuurriinngg tthhee EEffffeeccttiivveenneessss
ooff TTrraaiinniinngg PPrrooggrraamm

4. TThhee FFoouurr LLeevveellss ooff EEvvaalluuaattiioonn
Level 1 - Reaction
Level 2 - Learning
Level 3 – Behavior
Application
Level 4 –
Performance Impact
FFoouurr LLeevveellss
ooff TTrraaiinniinngg
EEffffeeccttiivveenneessss

5. LLeevveell 11 -- RReeaaccttiioonn
Evaluate trainees’
reactions to the program:
Did they like the program?
Did they like the
facilitators?
Did they like the training
accommodation and
facilities?
LLeevveell 11 --
RReeaaccttiioonn

6. GGuuiiddeelliinneess ffoorr EEvvaalluuaattiinngg RReeaaccttiioonn
1. Determine what you want to find out
2. Design a form that will quantify reactions
3. Encourage written comments and suggestions
4. Get 100 percent immediate response
5. Get honest response
6. Develop acceptable standards
7. Measure reactions against standards, and take
appropriate action
8. Communicate reaction as appropriate

7. LLeevveell 22 -- LLeeaarrnniinngg
Measuring learning means
determining one or more of
the following :
• What knowledge was
learned?
• What skills were
developed or improved?
• What attitudes were
changed?
LLeevveell 22 --
LLeeaarrnniinngg

8. GGuuiiddeelliinneess ffoorr EEvvaalluuaattiinngg LLeeaarrnniinngg
1. Use a control group if practical
2. Evaluate knowledge, skills and/or attitudes both
before and after the program
3. Use a paper-and-pencil test to measure knowledge
4. Use a performance test to measure skills
5. Get 100 percent immediate response
6. Use the results of evaluation to take appropriate
action

9. GGuuiiddeelliinneess ffoorr EEvvaalluuaattiinngg LLeeaarrnniinngg
Pretest and Posttest Scores on Change Management Training
Example :
Experimental Group Control Group
Pre Test Score 45 46
Post Test Score 55 48
Gain 10 2

10. LLeevveell 33 –– BBeehhaavviioorr AApppplliiccaattiioonn
• The frequency of
application of new
skills/knowledge/
attitudes (on the job)
• The effectiveness of the
skills/knowledge/
attitudes (as applied on
the job)
LLeevveell 33 ––
BBeehhaavviioorr
AApppplliiccaattiioonn

11. GGuuiiddeelliinneess ffoorr EEvvaalluuaattiinngg LLeeaarrnniinngg
1. Use a control group if practical
2. Allow time for behavior change and application to take
place
3. Evaluate both before and after the program if practical
4. Survey and/or interview one or more of the following :
trainees, their immediate supervisor, their subordinates,
and others who often observe their behavior
5. Get 100 percent response or a sampling
6. Repeat the evaluation at appropriate times
7. Consider cost versus benefits

12. LLeevveell 44 –– PPeerrffoorrmmaannccee RReessuullttss
• Indicate the extent to which you
think this program has
influenced each of these
measures in your work unit,
department, or business unit:
• Productivity
• Quality
• Customer Response Time
• Cost Control
• Employee Satisfaction
• Customer Satisfaction
• Other
LLeevveell 44 ––
PPeerrffoorrmmaannccee
RReessuullttss

13. GGuuiiddeelliinneess ffoorr EEvvaalluuaattiinngg LLeeaarrnniinngg
1. Use a control group if practical
2. Allow time for results to be achieved
3. Measure both before and after the program if practical
4. Repeat the evaluation at appropriate times
5. Consider cost versus benefits
6. Be satisfied with evidence if proof is not possible

14. PPeerrffoorrmmaannccee IInnddiiccaattoorrss
HARD DATA INDICATORS
• Duration involved
• Number of defect products
• Sales volume
• Customer satisfaction index
• Response time to orders
• Others

15. PPeerrffoorrmmaannccee IInnddiiccaattoorrss
SOFT DATA INDICATORS (intangible impacts)
• Job satisfaction
• Conducive working relationship
• Effective communication
• Stress rate
• Quality in decision-making

16. Example :: MMeeaassuurriinngg TTrraaiinniinngg RReessuullttss
Program : TTQQMM 200.00
TTrraaiinniinngg
Results after 33
150.00
mmoonntthhss ooff
ttrraaiinniinngg,, number
of defects
100.00
dropped to 80
units/day
50.00
0.00
120 units
80 units
BBeeffoorree ttrraaiinniinngg AAfftteerr ttrraaiinniinngg

17. Example :: MMeeaassuurriinngg TTrraaiinniinngg RReessuullttss
50.00
40.00
30.00
20.00
10.00
0.00
Program :
SSaalleess TTrraaiinniinngg
Results after 33
mmoonntthhss ttrraaiinniinngg,
number of sales
per salesman
increase to 30
units/month.
20 units
30 units
BBeeffoorree ttrraaiinniinngg AAfftteerr ttrraaiinniinngg

18. BB..MMeeaassuurriinngg
RReettuurrnn oonn IInnvveessttmmeenntt ooff
TTrraaiinniinngg

19. BBeenneeffiittss ooff RROOII ooff TTrraaiinniinngg
• Measure contribution
• Set priorities
• Focus on results
• Alter management perceptions of training

20. RROOII ooff TTrraaiinniinngg MMooddeell
CCoolllleecctt
DDaattaa
IIssoollaattee tthhee
EEffffeeccttss ooff
TTrraaiinniinngg
CCoonnvveerrtt DDaattaa
ttoo MMoonneettaarryy
VVaalluueess
CCaallccuullaattee RROOII
ooff TTrraaiinniinngg
TTaabbuullaattee
PPrrooggrraamm
CCoossttss
IIddeennttiiffyy
IInnttaannggiibbllee
BBeenneeffiittss

21. RReettuurrnn oonn IInnvveessttmmeenntt FFoorrmmuullaa
NNeett PPrrooggrraamm BBeenneeffiittss
PPrrooggrraamm CCoossttss
XX 110000
RROOII ==
EExxaammppllee ::
• CCoossttss ppeerr pprrooggrraamm ((2255 ppaarrttiicciippaannttss)) RRss 8888,,550000
• BBeenneeffiittss ppeerr pprrooggrraamm ((11sstt yyeeaarr)) RRss 223300,,662255
RRss 223300,,662255 –– 8888,,550000
RROOII == XX 110000
RRss 8888,,550000
RROOII == 116611 %%

22. CCoolllleeccttiinngg DDaattaa
• Identify appropriate
performance indicators
• Develop a collection plan
CCoolllleecctt
DDaattaa

23. EExxaammppllee ooff PPeerrffoorrmmaannccee IInnddiiccaattoorrss
OOuuttppuutt
• Units produced
• Items sold
• Work backlog
• New accounts opened
• Productivity
• Inventory turnover
• Etc.
TTiimmee
• Equipment downtime
• Overtime
• Time to project
completion
• Processing time
• Repair time
• Lost time days
• Etc

24. EExxaammppllee ooff HHaarrdd IInnddiiccaattoorrss
• Unit costs
• Variable costs
• Overhead costs
• Operating costs
• Number of cost
reduction
• Etc.
CCoosstt
QQuuaalliittyy
• Scrap
• Waste
• Rejects
• Error rates
• Rework
• Product defects
• Product failure

25. EExxaammppllee ooff PPeerrffoorrmmaannccee RReessuullttss
• SSoommee ppeerrffoorrmmaannccee rreessuullttss aafftteerr ttrraaiinniinngg
pprrooggrraamm::
• Rejections were reduced from 11 % to 7.4 %
• Absenteeism was reduced from 7 % to 3.25 %
• The annual turnover rate was reduced from 30
% to 16 %
• Customer complaints were reduced by 65 %

26. Isolating tthhee EEffffeeccttss ooff TTrraaiinniinngg
MMeetthhooddss ttoo
IIssoollaattee tthhee
EEffffeeccttss ooff
TTrraaiinniinngg
UUssiinngg
CCoonnttrrooll GGrroouupp
TTrreenndd
LLiinneess
PPaarrttiicciippaannttss
EEssttiimmaattee
SSuuppeerrvviissoorrss ooff
PPaarrttiicciippaannttss
EEssttiimmaattee

27. IIssoollaattiinngg tthhee EEffffeeccttss ooff TTrraaiinniinngg
UUssiinngg
CCoonnttrrooll
GGrroouupp
• A control group arrangement can be
used to isolate training impact.
• With this strategy, one group
receives training, while another,
similar group does not receive
training.
• The difference in the performance of
the two groups is attributed to the
training program.

28. IIssoollaattiinngg tthhee EEffffeeccttss ooff TTrraaiinniinngg
TTrreenndd
LLiinneess
• Trend lines are used to project the
values of specific output variables if
training had not been undertaken.
• The projection is compared to the
actual data after training, and the
difference represents the estimate
impact of training.

29. TTrreenndd LLiinneess AAnnaallyyssiiss
At the beginning of
May, a Sales training
Program session was
held
Actual sales performance
Jan Feb Mar Apr May Jun Jul Aug
Volume of Sales
The
difference
represents
the estimate
impact of
training.
Trend Projection

30. IIssoollaattiinngg tthhee EEffffeeccttss ooff TTrraaiinniinngg
PPaarrttiicciippaannttss aanndd
SSuuppeerrvviissoorrss ooff
PPaarrttiicciippaannttss
EEssttiimmaattee ooff
TTrraaiinniinngg’’ss IImmppaacctt
• This method rests on the assumption that
participants (and their supervisors) are
capable of estimating how much a
performance improvement is related to the
training program.
• Because their actions have produced the
improvement, participants (and their
supervisors) may have very accurate input
on the issue.
• They should know how much of the
change was caused by applying what they
have learned in the program.

31. IIssoollaattiinngg tthhee EEffffeeccttss ooff TTrraaiinniinngg
PPaarrttiicciippaannttss aanndd
SSuuppeerrvviissoorrss ooff
PPaarrttiicciippaannttss
EEssttiimmaattee ooff
TTrraaiinniinngg’’ss IImmppaacctt
• TTyyppiiccaall QQuueessttiioonnss ttoo EEssttiimmaattee ::
• What percent this improvement
can be attributed to the application
of skills/techniques/knowledge
gained in the training program?
• What confidence do you have in
this estimate, expresses as a
percent?
• What other factors contributed to
this improvement in performance?

32. IIssoollaattiinngg tthhee EEffffeeccttss ooff TTrraaiinniinngg
EExxaammppllee ooff aa PPaarrttiicciippaanntt’’ss EEssttiimmaattiioonn
Percent
Improvement
Caused by
Confidence
Expressed as
a Percent
Factors Which Influenced
No. Improvement
1 Training Program 50% 70%
2 Change in Procedures 10% 80%
3 Adjustment in Standards 10% 50%
4 Revision to Incentive Plan 20% 90%
5 Increased Management Attention 10% 50%
6 Other - -
The confidence percentage is multiplied by the
estimate (50 % x 70 %) to produce aa uussaabbllee ttrraaiinniinngg
ffaaccttoorr vvaalluuee ooff 3355 %%

33. IIssoollaattiinngg tthhee EEffffeeccttss ooff TTrraaiinniinngg
EExxaammppllee ooff aa PPaarrttiicciippaanntt’’ss EEssttiimmaattiioonn
Percent
Improvement
Caused by
Confidence
Expressed as
a Percent
Factors Which Influenced
No. Improvement
1 Training Program 50% 70%
2 Change in Procedures 10% 80%
3 Adjustment in Standards 10% 50%
4 Revision to Incentive Plan 20% 90%
5 Increased Management Attention 10% 50%
6 Other - -
• The confidence percentage is multiplied by the estimate (50 % x 70 %) to
produce a usable training factor value of 35 %
• This adjusted percentage is then multiplied by the actual amount of
improvement (post-program minus pre-program value) to isolate the portion
attributed to training
• The adjusted improvement is now ready for conversion to monetary values,
and used in the return on investment

34. Converting DDaattaa ttoo MMoonneettaarryy VVaalluueess
CCoonnvveerrttiinngg
DDaattaa ttoo
MMoonneettaarryy
VVaalluueess
• SStteeppss ttoo CCoonnvveerrtt DDaattaa ttoo MMoonneettaarryy
VVaalluueess
1. Focus on a unit of improvement
2. Determine a value of each unit
3. Calculate the change in performance
data
4. Determine an annual amount of change
5. Calculate the annual value of
improvement

35. Steps to Convert DDaattaa ttoo MMoonneettaarryy VVaalluueess
An example to illustrate the steps to convert data to monetary values
SStteeppss IIlllluussttrraattiioonn
1. Focus on unit
improvement
• One grievance reaching step two in the
four-step grievance resolution process
2. Determine a
value of each
unit
• Using internal experts, the cost of an
average grievance was estimated to be
Rs,500 when considering time and direct
costs

36. Steps to Convert DDaattaa ttoo MMoonneettaarryy VVaalluueess
SStteeppss IIlllluussttrraattiioonn
3. Calculate the
change in
performance
data
• Six months after the program was completed,
total grievances per month reaching step two
declined by ten.
• Seven of the then grievance reductions were
related to the program as determined by
supervisors (isolating the effects of training)
4. Determine an
annual amount
for the change
• Using the six month value, seven per month
(grievance reductions), yields an annual
improvement of 84 (7 x 12 months)

37. Steps to Convert DDaattaa ttoo MMoonneettaarryy VVaalluueess
SStteeppss IIlllluussttrraattiioonn
5. Calculate the
annual value of
improvement
• Annual value = 84 x Rs500 = Rs42,000

38. TTaabbuullaattiinngg CCoosstt ooff tthhee PPrrooggrraamm
TTaabbuullaattiinngg
ccoosstt ooff tthhee
pprrooggrraamm
• Cost components that should be
included are :
• The cost to design and develop
the program
• The cost of all program materials
provided to each participant
• The cost for facilitator
• The cost of the facilities of the
training program

39. TTaabbuullaattiinngg CCoosstt ooff tthhee PPrrooggrraamm
TTaabbuullaattiinngg
ccoosstt ooff tthhee
pprrooggrraamm
• Cost components that should be
included are :
• Travel, lodging, and meal costs
for the participants
• Salaries, plus employee benefits
of the participants who attend
the training
• Administrative and overhead
costs of the training function,
allocated in some convenient
way

40. CC..EEnnhhaanncciinngg TTrraaiinniinngg
EEffffeeccttiivveenneessss

41. How Effective iiss YYoouurr TTrraaiinniinngg PPrrooggrraamm??
Broad and Newstrom (1992) report studies have
shown less than 3300%% ooff wwhhaatt iiss aaccttuuaallllyy ttaauugghhtt
ttrraannssffeerrss ttoo tthhee jjoobb iinn aa wwaayy tthhaatt eennhhaanncceess
ppeerrffoorrmmaannccee.
Source : Broad, M., & Newstrom, J. W. (1992). Transfer of training: Action packed
strategies to ensure high payoff from training investments. Reading, MA: Addison-
Wesley.

42. SSoouurrccee ooff BBaarrrriieerrss ttoo TTrraaiinniinngg TTrraannssffeerr
• Lack of reinforcement on the job
• Interference from immediate (work) environment
• Nonsupportive organizational culture
• Trainees’ perception of impractical training programs
• Separation from the inspiration or support of the trainer

43. TThhee TTrraannssffeerr PPaarrttnneerrsshhiipp
Trainee Trainee recognizes need for
new skills
Trainee Trainer Trainer designs and/or
delivers learning experiences
Trainee Trainer Manager supports learning
and application on the job
Manager

44. AAfftteerr TTrraaiinniinngg
MMaannaaggeerr
• Plan trainees’ reentry
• Provide opportunities to practice new skills
• Have trainees participate in transfer-related
decisions
• Reduce job pressures initially
• Give positive reinforcement
• Schedule trainee briefings for co-workers
• Set mutual expectations for improvement
• Arrange proactive (refresher) sessions
• Provide and support the use of job aids

45. AAfftteerr TTrraaiinniinngg
TTrraaiinneerr
• Provide follow-up support
• Conduct evaluation surveys and provide
feedback
• Develop and administer recognition system
• Provide refresher/problem-solving sessions

46. AAfftteerr TTrraaiinniinngg
TTrraaiinneeee
• Practice self-management
• Review training content and learned skills
• Develop a mentoring relationship
• Maintain contact with training ‘buddies’

47. TTHHAANNKK YYOOUU