Human Resources Management - 6

7/30/2019 Human Resources Management - 6

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Welcome

HRM207Human Resources Learning andDevelopmentWeek 6, Semester 1, 2012

(Based on Noe and Winkler, 2009)


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Todays Agenda

Lecture Training evaluation

- Introduction

- Training outcomes- CBA/ROI


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Introduction

Training evaluation refers to the process ofcollecting the outcomes needed to determine

whether training is effective.

Training effectiveness refers to the benefits thatthe organisation andthe trainees receive from

training.


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Why should training be evaluated?

1. To identify a programs strengths and weaknesses

2. To assess whether content, organisation andadministration of the program contribute to learning and

the use of training content on the job

3. To identify which trainees benefited most or least from

the program4. To gather data to assist in marketing training programs5. To determine the financial benefits and costs of the

programs6. To compare the costs and benefits of training versus

non-training investments7. To compare the costs and benefits of different training

programs to choose the best program


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Formative v Summative evaluation

Formative Evaluation refers to:The evaluation that takes place during the

program design & development. (pilot

testing) Provides information on how tomake the training better, it is normally

qualitative.

Summative Evaluation is:Determining there has been a change due

to the training (quantitative)


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Pilot testing

The process of previewing the training program with

potential trainees and managers or with other

customers

It can be used:

as a dress rehearsal to show the program to

managers, trainees and customers

for formative evaluation


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Training Design

Conduct a needs analysis

Develop measurable learning outcomes

and analyse transfer of training

Develop outcome measures

Choose an evaluation strategy

Plan and execute the evaluation


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Training Outcomes: Kirkpatricks Four-

Level Framework of Evaluation Criteria

Level Criteria Focus

1 Reactions Trainee satisfaction

2 Learning Acquisition of knowledge, skills, attitudes

3 Behaviour Improvement of behaviour on the job

4 Results Business results achieved by trainees


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Training outcomes 5 categories

Affective

OutcomesResults

Return on

Investment

Cognitive

Outcomes

Skill-Based

Outcomes


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Cognitive outcomes

Determine the degree to which trainees are familiar with theprinciples, facts, techniques, procedures or processesemphasised in the training program

Measure what knowledge trainees learned in the program

Skill-based outcomes

Assess the level of technical or motor skills

Include acquisition or learning of skills and use of skills on thejob


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Affective outcomes

Include attitudes and motivationReaction outcomestrainees perceptions of the program

including the facilities, trainers and content

ResultsDetermine the training programs payoff for the organisation

Return on Investment (ROI)Comparing the trainings monetary benefits with the cost of the

trainingDirect costs

Indirect costs

Benefits


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What is evaluated in practice


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Determining whether outcomes aregood

Relevance The extent to which training outcomes are related to thelearned capabilities emphasized in the training program.

Criterion contamination - the extent that trainingoutcomes measure inappropriate capabilities or areaffected by extraneous conditions.

Criterion deficiency - the failure to measure trainingoutcomes that were emphasized in the trainingobjectives.

Reliability The degree to which outcomes can be measuredconsistently over time.

Discrimination The degree to which trainees performance on the

outcome actually reflects true differences in performance.

Practicality The ease with which the outcome measures can becollected.


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Evaluation Design

No evaluation design can ensure the

results are due entirely to training. What it

is aiming for is the most accurate

explanations for the outcomes achieved.


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Factors That Influence the Type ofEvaluation Design

Factor How factor influences type of evaluation design

Change potential Can program be modified?

Importance Does ineffective training affect customer service, product development or relationships

between employees?

Scale How many trainees are involved?

Purpose of training Is training conducted for learning, results or both?

Organisation culture Is demonstrating results part of organisation norms and expectations?

Expertise Can a complex study be analysed?

Cost Is evaluation too expensive?

Time frame When do we need the information?


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Evaluation design

Threats to validity - factors that will lead anevaluator to question either the:

Internal validity - the believability of the study results.

External validity - the extent to which the evaluation

results are generalizable to other groups of trainees

and situations.


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Threats to validity


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Methods to Control for Threats to Validity

Pre-tests and Post-tests

Comparison groups (those who did attend and thosewho didnt) eg Hawthorne Effect

Random assignment is about assigning people totraining on the basis of chance totally impractical


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Comparison of Evaluation Designs


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Cost Benefit Analysis - ROI

To calculate ROI, divide benefits by costs. The ROI givesan estimate of the dollar return expected from each dollar

invested in training.

Cost-benefit analysis - process of determining theeconomic benefits of a training program using accounting

methods that look at training costs and benefits.

C B RO


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Cost Benefit Analysis - ROI

Determine training costs (direct costs + indirect costs +development costs + overhead costs + compensation fortrainees)

Obtain an annual amount of benefits from training bycomparing results after training to results before training

(in dollars). Methods include: technical, academic, and practitioner literature.

pilot training programs and observance of successful job performers.

estimates by trainees and their managers.

ROI


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ROI

ROI =

Return/Investment =

Gross Savings/Training Costs


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Human Capital & Training Metrics


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Conclusion

Recap of today

Any questions?

Human Resources Management - 6

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