Cost Benefit Analysis for Training
February 12, 2025
Any effective performance management system includes the following components: Performance Planning: Performance planning is the first crucial component of any performance management process which forms the basis of performance appraisals. Performance planning is jointly done by the appraisee and also the reviewee in the beginning of a performance session. During this period, the employees decide […]
Employee happiness is not a choice for today’s employers but it is a need which may directly impact the organization’s topline and bottomline profitability. Employers who have realized the importance of work-life balance are more profitable and successful, as such organization’s tend to have employees who are more happy, creative, love to take challenges fearlessly […]
For the organization to perform better it is important that the employees are comfortable with each other, share a good rapport and work in close coordination towards a common objective. People feel responsible and motivated to do good work and enjoy their work rather than taking it as a burden. It is important that the […]
Leadership Development in Successful Companies The previous articles have discussed how the HRM function is now seen as a critical and crucial component of the organizational support functions. In particular, we have analyzed how effective people management goes a long way in ensuring better economic performance. Among the components of people, management that the HRM […]
Training implies enhancing the skills and knowledge of the employees for performing a specific job. Training tries to improve employees’ performance in current job and prepares them for future job. The crucial consequence of training is learning. Objectives of Employee Training Programmes To prepare employees to meet the varying and challenging needs of the job […]
Evaluation involves the assessment of the effectiveness of the training programs. This assessment is done by collecting data on whether the participants were satisfied with the deliverables of the training program, whether they learned something from the training and are able to apply those skills at their workplace.
There are different tools for assessment of a training program depending upon the kind of training conducted.
Since organisations spend a large amount of money, it is therefore important for them to understand the usefulness of the same.
For example, if a certain technical training was conducted, the organisation would be interested in knowing whether the new skills are being put to use at the workplace or in other words whether the effectiveness of the worker is enhanced.
Similarly in case of behavioural training, the same would be evaluated on whether there is change in the behaviour, attitude and learning ability of the participants.
Evaluation acts as a check to ensure that the training is able to fill the competency gaps within the organisation in a cost effective way. This is specially very important in wake of the fact the organisations are trying to cut costs and increase globally.
Some of the benefits of the training evaluation are as under:
Not many organisations believe in the process of evaluation or at least do not have an evaluation system in place. Many organisations conduct training programs year after year only as a matter of faith and not many have a firm evaluation mechanism in place. Organisations like IBM, Motorala only, it was found out, have a firm evaluation mechanism in place.
There are many methods and tools available for evaluating the effectiveness of training programs. Their usability depends on the kind of training program that is under evaluation.
Generally most of the organisations use the Kirk Patrick model for training evaluations which evaluates training at four levels - reactions, learning, behaviour and results.
After it was found out that training costs organisations a lot of money and no evaluation measures the return on investment for training, the fifth level for training evaluation was added to the training evaluation model by Kirk Patrick which is called as the ROI.
Most of the evaluations contain themselves to the reaction data, only few collected the learning data, still lesser measured and analysed the change in behaviour and very few took it to the level of increase in business results. The evaluation tools including the Kirk Patrick model will be discussed in detail in other articles.
Your email address will not be published. Required fields are marked *