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Measurement of Training and Development


executive batch 2009-10 MEASUREMENT OF TRAINING AND DEVELOPMENT By group-3 executive batch 2009-10 executive batch 2009-10 executive batch 2009-10 ... – PowerPoint PPT presentation

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Title: Measurement of Training and Development

Measurement of Training and Development
  • By group-3

What training refers to
  • It is a learning process that involves the
    acquisition of knowledge, sharpening of skills,
    concepts, rules or changing of attitudes and
    behaviours to enhance the performance of
  • Training is activity leading to skilled behavior.
  • -its not what you want in life, but its
    knowing how to reach it.
  • Training is about knowing where you stand ( no
    matter how good or bad the current situation
    looks) at present and you will be after some
    point of time.

Objectives of Training and Development
  • The principal objectives of training and
    development division is to make sure the
    availability of a skilled and willing workforce
    to an organization.
  • Individual objectives help employee in
    achieving their personal goals ,which in turn
    enhance the individual contribution to an
  • Organizational objectives- assist the
    organization with its primary objective by
    bringing individual objectives.
  • Functional objectives- maintain the departments
    contribution at a level suitable to the
    organizations needs.
  • Societal objectives- ensure that an organization
    is ethically and socially responsible to the
    needs and challenge of the society.

Why measuring?
  • Measurement of learning is one of the best ways
    for trainers to choose the most effective
    teaching methods.
  • The investment of time and money there should be
    a return greater than the investment.
  • To know the followings-
  • - How well did someone learn?
  • - How effectively did he or she apply the
    learning, most importantly from a business
  • - What difference did it make to the business

Knowledge Management
  • At knowledge praxis, we define knowledge
    management as a business activity with two
    primary aspects-
  • -Treating the knowledge component business
    activities as an explicit concern of business
    reflected in strategy ,policy and practice at all
    levels of the organization.
  • -Making the direct connection between an
    organizational assets- both explicit (recorded)
    and tacit(personal know how) and positive
    business result.
  • KM can be broken into four steps-
  • -Collect information
  • -Organize it
  • -Disseminate it
  • -Evaluate its utility

Knowledge Management and Organizational Learning
  • It yields four types of improvements-
  • Cost reduction by reducing time away from work to
  • Improved quality through finding errors earlier
    in the process.
  • Reduced risk and uncertainty by focusing
    investment in activities with a higher
    probability of success.
  • Improved technology transfer by sharing insights
    within the community on how to do something and
    thus cutting time to learn on ones own.

Stages in developing a KMOL with Evaluation of
Each Stage
  • Vision
  • To convince others that there can be
    improvements in productivity , quality or
    service. Benchmarking within the industry or
    region can be an effective tool for making the
  • Strategy
  • The process of turning the vision into
    reality takes place.
  • Offering people an opportunity to come
    together around a common interest .
  • Expansion
  • Comparison of previous internal performance
    levels as well as to external benchmarks. Show
    quantitative returns on investment like reduction
    in cost, improvement in customer retention ,
    increased sales etc.

  • Institutionalization
  • Top management must be very visible in its
  • Funding as well as personal involvement, is
  • Climate assessment is necessary.
  • Balanced Scorecard can be developed.

IC Matrics
  • Learning Hours of training per Headcount
  • Percent of staff in company sponsored
    education Invested dollars per Headcount in TD
  • K containment Rate Percent of Key staff with
    more than X years in position.
  • Organization Capacity Average number of years of
    education per employee.
  • Diversity Percent of exempt positions held by
    members of affected classes.

KM Macro Metrics
  • HCVA Revenue Purchased services per FTE
  • HCROI Ratio of profit to Remuneration per FTE
  • HEVANOPAT- Capital Cost per FTE
  • HMVA Market value- Book value per FTE
  • KM Process Metrics
  • Innovation Percent of revenue from new products
    RD expenditure as percent of sales.
  • Drag Span of control(employees per supervisor)
  • Cost to supervise, No. of employees self
    service on intranet, GA cost as a percent of
  • Team effectiveness Percent of team projects that
    achieve their objectives.
  • Outsource Factor Percent of GA services
    outsourced(payroll, maintenance , IT etc.

Measuring the Effect of T D
  • Three general measures of training -
  • Cost expense per unit of training delivered.
  • Change gain in skill or knowledge or positive
    change in attitude by the trainee.
  • Impact results or outcomes from the trainees
    use of new skills , knowledge or attitude that
    are measurable in monetary terms in the
    organizations productivity, quality or service

Training Cost Factor
  • TCF cost per trainee
  • CC consultant cost
  • TR training facility rental
  • S supplies , workbooks, paper and pencils
  • RC refreshments
  • TL travel and lodging for trainees and trainers
  • TS trainers salaries and benefit
  • PS participants salaries and benefits
  • OH training department overhead
  • PT number of people trained

Training Cost per Hour
  • TCH training cost per hour
  • TC total cost of training
  • TH total training hours(number trained x hours
    of training)
  • Compare the program costs between internal and
    external sources. Mostly it depends on the
  • The scale of the program?
  • Is this a common topic or a special topic?
  • Will there be travel involved?

Input Analysis
  • It is a systemic method of identifying and
    comparing the many costs involved in two or more
    training programs.

Inputs, in Rupees
people material equipment facilities total
Knowledge Change
  • KC KA/KB
  • KC knowledge change
  • KA knowledge level after training
  • KB knowledge level before training
  • Skill (Behaviour) Change
  • SC observable change in skills as a result of
  • SA skill demonstrated after training by work
    output , critical incidents of interpersonal
    relations, or other observable phenomena.
  • SB skill level existing before the training ,
    using the criteria above.

Attitude Change
  • AC attitude change
  • AAAttitude after training
  • AB attitude before training
  • Performance Change
  • PCchange in work performance as measured by the
    organizations performance appraisal system.
  • PA latest review rating or score from a
    performance appraisal conducted at least 90 days
    after the training
  • PB performance review score or traning from the
    performance appraisal conducted before the

Value analysis
  • It consist of four steps
  • Situational analysis-study the business problem
    or opportunity looking for its sources and the
    factors and forces driving it.
  • Intervention- if training is deemed to be part
    of the solution , design and deliver it in a
    skill form that is visibly linked with the
    business problem.
  • Impact-when the data on performance change are
    in, did performance change?
  • Value- calculation of the value of the impact in
    monetary and, if applicable , human terms.

Developing and measuring leadership
  • Peter Koestenbaums simple model divided into two
  • Authenticity- invisible ,inherent character.
  • Competence
  • Leadership Metrics
  • Leaders depends on followers , without followers
    there is no leader. Behavior of a leader include
    some of the following-
  • Provides an exciting vision for others to follow
  • Outlines a strategy and makes a commitment to it
  • Describes a preferred corporate culture
  • Acts in accordance with the culture
  • Is consistent in word and behavior
  • Treats all people with respect
  • Acts ethically
  • Develops talent

Measurement of BDAL
  • BDAL-Business Driven Action Learning
  • Yuri Boshyk described BDAL change companys
    strategy and behavior of its people.
  • Five key elements of BDAL-
  • Involvement and support of senior executives.
  • Work on real business issues exploration of new
    strategic opportunities.
  • Action research focus on internal and external
    business experience.
  • Leadership development through teamwork.
  • Implementation of recommendations and follow up
    on the issues.

The New Look of employee development
  • Traditional approach Job or Organization and
    Employee view point
  • Tried to fit people to the job or job to the
  • Three issues for better career development
  • First need to understand the business
  • Second development requirement is interpersonal
  • Analytical ability

The development Trend
  • Specific development is becoming more prized
  • Quality, productivity and service issue can be
    solved cost-effectively
  • Shift toward self directed and self-paced
  • Employees must take active role in self
  • Development Process
  • Formation of career development team
  • First, a representative of line management must
    be included from the area we plan for servicing
  • Representation from HR, Staffing and career
  • Trainer who will design and deliver
  • Selection of Target development area
  • E.g Develop people in customer service area
  • Select people based on the feedback from managers
    and customer

Career development measures
  • One way to measure career development is to view
    the job-posting system as a career development
  • First thing we can show management is the volume
    of applicants and placements handled each month
  • Second issue cost per placement. How much we save
    the organization through internal placement
  • Third important issue is retention

Organizational shifts
  • Career Path Ration
  • CPR
  • CTR
  • Where CPR Career Promotion Ratio
  • CTR Career Transfer Ration
  • p number of employee receiving a promotion
  • T number of employee transferred

Organizational Development
  • Organizational Development Past and Future
  • 1980 Organizational Development evolves from the
    touchy-feely, humanistic psychology
  • 1990. OD took on more practical face. It is
    actively partnering, creating and guiding change
    management process
  • OD practitioners are helping organization to
    modify the business strategy, determine the gaps
    between current condition and desired future

Organizational development and the Organization
  • OD is an effort
  • Planned
  • Organization wide
  • Managed from the top
  • Increase organization effectiveness and health
  • Planned inventions in the organization process,
    using behavior science knowledge

OD opportunities
  • Benchmarking, Reengineering and other forms of
    process improvement can use OD skills

Why OD is not quantitatively evaluated
  • First, some feel that since evaluation is not
    demanded in past why offer it now
  • People do not know how to measure beyond basic
    production and financial variables
  • Many people including some OD people do not want
    to measure
  • People dont want to accept the constraints
    imposed by science and business impose
  • Zealous, so dont want to speak OD in business

Measure of effectiveness for organization
  • Six Factors
  • Short Term
  • Productivity
  • Quality
  • service
  • Intermediate
  • Responsiveness
  • Development
  • Long Term
  • Survival

Enterprise factor
  • Productivity
  • Quality
  • Service
  • Responsiveness
  • Development
  • Survival
  • Subsystem
  • Productivity
  • Quality
  • Service
  • Change measure
  • Scorecarding
  • Value Chain

  • Thank You