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Training Evaluations

Training Evaluations. Training effectiveness Training outcomes measures that the trainer & company use to evaluate training programs Training evaluation is the process of collecting outcomes needed to determine if training is effective Evaluation design

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Training Evaluations

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  1. Training Evaluations • Training effectiveness • Training outcomes • measures that the trainer & company use to evaluate training programs • Training evaluation • is the process of collecting outcomes needed to determine if training is effective • Evaluation design • to whom, what, when, and how information needed for determining the effectiveness of the training program

  2. Reasons For Evaluating Training • Training grew from 1.5 percent of payroll in 1996 to 2 percents in 1998 – a 40 percent increase in 2 years • Training investment is increasing because learning creates knowledge which differentiates between those companies and employees

  3. Training Evaluation • Format evaluation refers to evaluation conducted to improve the training process • Helps to ensure • The training program is well organized and runs smoothly • Trainees learn and are satisfied with the program • Pilot testing is the process of previewing the training program with potential trainees & managers • Summative evaluation refers to evaluation conducted to determine the extent to which trainees have changes as a result of the training program

  4. To identify the program’s strengths and weaknesses To assess the content, organization, and administration To identify which trainees benefited To determine the financial benefits and cost of the programs To compare the costs and benefits of training versus non-training To compare the costs and benefits of different training programs to choose the best one Why a Training Program Should Be Evaluated

  5. Evaluation Process Conduct a Needs Analysis Develop Measurable Learning Outcomes Develop Outcome Measures Choose an Evaluation Strategy Plan and Execute the Evaluation

  6. Outcomes Used In Evaluating Training Programs Outcome Example How Measured What is Measured Cognitive *Safety rules *Pen & paper tests *Acquisition of *Electrical principles *Work sample knowledge *Steps in appraisal interview Skill-based *Use a jigsaw *Observation *Behavior *Listening skills *Work sample *Skills *Coaching skills *Ratings *Land an airplane Affective *Satisfaction with *Interviews *Motivation training *Focus groups *Reaction to *Beliefs regarding *Attitude surveys program other cultures *Attitudes

  7. Outcomes Used In Evaluating Training Programs Cont. Outcome Example How Measured What is Measured Results *Absenteeism *Observation *Company *Accidents *Track data from payoff *Patterns information system or performance record Return on *Dollars *Identify and compare *Economic Investment costs and benefits of value of the program training

  8. Evaluating Training Programs • Instructor evaluation measures a trainer’s or instructor’s success • Results are used to determine the training program’s payoff for the company

  9. How Do You Know If Your Outcomes Are Good? • Relevance • Criteria relevance • Criterion contamination • Criterion deficiency

  10. How Do You Know If Your Outcomes Are Good? • Reliability • Discrimination • Practicality

  11. Evaluation Designs • Threats to validity: Alternative explanations for evaluation results • Threats to validity • The believability of the study results • The extent to which the evaluation results are generalizable to other groups of trainees • Internal validity believability of the study results • Characteristics of the company • The outcome measures • Persons evaluation study • Initial group differences

  12. Methods To Control For Threats To Validity • Pre and posttests • Use of comparison groups • Random assignments

  13. Comparison Of Evaluation Designs Design Groups Pretraining Posttraining Cost Time Strength Posttest-only Trainees No Yes Low Low Low Pretest/Posttest Trainees Yes Yes Low Low Med. Posttest-only Trainees No Yes Med. Med. Med. comparison comparison Pretest/posttest Trainees Yes Yes Med. Med. High comparison comparison Time series Trainees Yes Yes, several Med. Med. Med. Time series Trainees Yes Yes, several High Med. High comparison and reversal

  14. Determining Return On Investment • Cost-benefit analysis is the process of determining the economic benefits of a training program using accounting methods • Training cost information is important for several reasons: • To understand total expenditures • To compare the costs of alternatives • To evaluate the proportion of money • To control costs

  15. Determining Costs • Seven categories related to the cost sources: • Costs related to program development • Instructional materials for trainers/trainees • Equipment • Facilities • Travel/lodging • Salary of trainer • Cost of lost productivity while employees attend the program

  16. Determining Benefits • Method used to identify the potential benefits of training • Technical, academic, and practitioner • Pilot training programs • Observance of successful job performance • Asking trainees and their manager to provide estimates of training benefits

  17. Cost-Benefit Estimate • For example, one group of 20 trainees estimated the total overall monthly cost benefit of $336,000 related to business improvements, and showed an average 70 percent confidence level with that estimate. Seventy percent multiplied by $336,000 gave a cost-benefit of $235,200. This number was divided by 20 ($235,20020 trainees) to give an average estimated cost benefit for the 20 trainees ($11,760).

  18. Return On Investment • To calculate return on investment use the following steps: • Identify outcomes • Place value on the outcomes • Determine the change • Obtain an annual amount of benefits • Determine the training costs (direct costs + indirect costs + development costs +overhead costs + compensation for trainees) • Calculate the total savings • Calculate the return

  19. Determining Costs For a Cost-Benefit Analysis Direct Costs Instructor $0 In-house instructor (12 days @ $125 per day) 1,500 Fringe benefits (25% of salary) 375 Travel expenses 0 Materials ($60 X 56 trainees) 3,360 Classroom space and audiovisual equipment 600 (12 days @ $50 per day) Refreshments ($4 per day X 3 days X 56 trainees 672 Total direct costs 6,507 Indirect Costs Training management 0 Clerical and administrative salaries 750 Fringe benefits (25% of salary) 187 Postage, shipping, and telephone 0 Pre- and posttraining learning materials ($4 X 56 Trainees) 224 Total indirect costs 1,161

  20. Determining Costs For a Cost-Benefit Analysis Development Costs Fee for program purchase 3,600 Instructor training Registration fee 1,400 Travel and lodging 975 Salary 625 Benefits (25% of salary) 156 Total development costs 6,756 Overhead Costs General organizational support, top management time 1,443 (10% of direct, indirect, and development costs) Total overhead costs 1,443 Compensation for trainees Trainees’ salaries and benefits (based on time away) 16,969 Total training costs 32,836 Cost per trainee 587

  21. Determining Benefits For a Cost-Benefit Analysis Operational How Results Results Differences Expressed Results Area Measured Before After dollars Training Training Quality Percentage 2% rejected 1.5 % rejected .5% $720 per day, of panels rejected 1,220 panels 1,080 panels 360 panels $172,800 per-day per day per yr. Housekeeping Visual 10 defects 2 defects 8 defects not inspection (average) (average) measurable using 20 item in $ checklist Preventable Number of 24 per year 16 per year 8 per yr. $48,000 accidents accidents per yr. Direct Cost of $144,000 per yr. $96,000 per yr. $48,000 per yr. accidents ROI= Return = Operational results = $220,800 =6.7 Investment Training costs $32,835

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