Measuring T&D 1


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Measuring T&D 1

  1. 1. MEASUREMENT OF TRAINING AND DEVELOPMENT By group-3 executive batch 2009-10
  2. 2. WHAT TRAINING REFERS TO <ul><li>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 employee. </li></ul><ul><li>Training is activity leading to skilled behavior. </li></ul><ul><li>-it’s not what you want in life, but its knowing how to reach it. </li></ul><ul><li>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. </li></ul>executive batch 2009-10
  3. 3. OBJECTIVES OF TRAINING AND DEVELOPMENT <ul><li>The principal objectives of training and development division is to make sure the availability of a skilled and willing workforce to an organization. </li></ul><ul><li>Individual objectives – help employee in achieving their personal goals ,which in turn enhance the individual contribution to an organization. </li></ul><ul><li>Organizational objectives - assist the organization with its primary objective by bringing individual objectives. </li></ul><ul><li>Functional objectives - maintain the department’s contribution at a level suitable to the organization’s needs. </li></ul><ul><li>Societal objectives - ensure that an organization is ethically and socially responsible to the needs and challenge of the society. </li></ul>executive batch 2009-10
  4. 4. WHY MEASURING? <ul><li>Measurement of learning is one of the best ways for trainers to choose the most effective teaching methods. </li></ul><ul><li>The investment of time and money there should be a return greater than the investment. </li></ul><ul><li>To know the followings:- </li></ul><ul><li>- How well did someone learn? </li></ul><ul><li>- How effectively did he or she apply the learning, most importantly from a business standpoint? </li></ul><ul><li>- What difference did it make to the business imperatives? </li></ul>executive batch 2009-10
  5. 5. KNOWLEDGE MANAGEMENT <ul><li>At knowledge praxis, we define knowledge management as a business activity with two primary aspects- </li></ul><ul><li>-Treating the knowledge component business activities as an explicit concern of business reflected in strategy ,policy and practice at all levels of the organization. </li></ul><ul><li>-Making the direct connection between an organizational assets- both explicit (recorded) and tacit(personal know how) – and positive business result. </li></ul><ul><li>KM can be broken into four steps:- </li></ul><ul><li>-Collect information </li></ul><ul><li>-Organize it </li></ul><ul><li>-Disseminate it </li></ul><ul><li>-Evaluate its utility </li></ul>executive batch 2009-10
  6. 6. KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL LEARNING PRACTICES <ul><li>It yields four types of improvements:- </li></ul><ul><ul><li>Cost reduction by reducing time away from work to learn. </li></ul></ul><ul><ul><li>Improved quality through finding errors earlier in the process. </li></ul></ul><ul><ul><li>Reduced risk and uncertainty by focusing investment in activities with a higher probability of success. </li></ul></ul><ul><ul><li>Improved technology transfer by sharing insights within the community on how to do something and thus cutting time to learn on one’s own. </li></ul></ul>executive batch 2009-10
  7. 7. STAGES IN DEVELOPING A KMOL WITH EVALUATION OF EACH STAGE <ul><li>Vision </li></ul><ul><li>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 case. </li></ul><ul><li>Strategy </li></ul><ul><li>The process of turning the vision into reality takes place. </li></ul><ul><li>Offering people an opportunity to come together around a common interest . </li></ul><ul><li>Expansion </li></ul><ul><li>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. </li></ul>executive batch 2009-10
  8. 8. CONTD. <ul><li>Institutionalization </li></ul><ul><li>Top management must be very visible in its support. </li></ul><ul><li>Funding as well as personal involvement, is necessary. </li></ul><ul><li>Climate assessment is necessary. </li></ul><ul><li>“ Balanced Scorecard” can be developed. </li></ul><ul><li>T&D SCORECARD.xlsm </li></ul>executive batch 2009-10
  9. 9. IC MATRICS <ul><li>Learning : Hours of training per Headcount </li></ul><ul><li>Percent of staff in company sponsored education Invested dollars per Headcount in T&D </li></ul><ul><li>K containment Rate: Percent of Key staff with more than X years in position. </li></ul><ul><li>Organization Capacity: Average number of years of education per employee. </li></ul><ul><li>Diversity: Percent of exempt positions held by members of affected classes. </li></ul>executive batch 2009-10
  10. 10. KM MACRO METRICS <ul><li>HCVA: Revenue – Purchased services per FTE </li></ul><ul><li>HCROI: Ratio of profit to Remuneration per FTE </li></ul><ul><li>HEVA:NOPAT- Capital Cost per FTE </li></ul><ul><li>HMVA: Market value- Book value per FTE </li></ul><ul><li>KM PROCESS METRICS </li></ul><ul><li>Innovation: Percent of revenue from new products R&D expenditure as percent of sales. </li></ul><ul><li>Drag: Span of control(employees per supervisor) </li></ul><ul><li>Cost to supervise, No. of employees self service on intranet, G&A cost as a percent of sales. </li></ul><ul><li>Team effectiveness: Percent of team projects that achieve their objectives. </li></ul><ul><li>Outsource Factor: Percent of G&A services outsourced(payroll, maintenance , IT etc. </li></ul>executive batch 2009-10
  11. 11. MEASURING THE EFFECT OF T & D <ul><li>Three general measures of training :- </li></ul><ul><ul><li>Cost : expense per unit of training delivered. </li></ul></ul><ul><ul><li>Change: gain in skill or knowledge or positive change in attitude by the trainee. </li></ul></ul><ul><ul><li>Impact : results or outcomes from the trainee’s use of new skills , knowledge or attitude that are measurable in monetary terms in the organization’s productivity, quality or service result. </li></ul></ul>executive batch 2009-10
  12. 12. TRAINING COST FACTOR <ul><li>TCF=(CC+TR+S+RC+TL+TS+PS+OH)/PT </li></ul><ul><ul><li>TCF= cost per trainee </li></ul></ul><ul><ul><li>CC= consultant cost </li></ul></ul><ul><ul><li>TR= training facility rental </li></ul></ul><ul><ul><li>S= supplies , workbooks, paper and pencils </li></ul></ul><ul><ul><li>RC= refreshments </li></ul></ul><ul><ul><li>TL= travel and lodging for trainees and trainers </li></ul></ul><ul><ul><li>TS= trainers’ salaries and benefit </li></ul></ul><ul><ul><li>PS= participants’ salaries and benefits </li></ul></ul><ul><ul><li>OH= training department overhead </li></ul></ul><ul><ul><li>PT= number of people trained </li></ul></ul>executive batch 2009-10
  13. 13. TRAINING COST PER HOUR <ul><li>TCH=TC/TH </li></ul><ul><ul><li>TCH= training cost per hour </li></ul></ul><ul><ul><li>TC= total cost of training </li></ul></ul><ul><ul><li>TH= total training hours(number trained x hours of training) </li></ul></ul><ul><li>Compare the program costs between internal and external sources. Mostly it depends on the following:- </li></ul><ul><ul><li>The scale of the program? </li></ul></ul><ul><ul><li>Is this a common topic or a special topic? </li></ul></ul><ul><ul><li>Will there be travel involved? </li></ul></ul>executive batch 2009-10
  14. 14. INPUT ANALYSIS <ul><li>It is a systemic method of identifying and comparing the many costs involved in two or more training programs. </li></ul>executive batch 2009-10 Inputs, in Rupees people material equipment facilities total Diagnosis Design Development Delivery Evaluation Total
  15. 15. KNOWLEDGE CHANGE <ul><li>KC= KA/KB </li></ul><ul><ul><li>KC= knowledge change </li></ul></ul><ul><ul><li>KA= knowledge level after training </li></ul></ul><ul><ul><li>KB= knowledge level before training </li></ul></ul><ul><li>Skill (Behaviour) Change </li></ul><ul><li>CS=SA/SB </li></ul><ul><ul><li>SC= observable change in skills as a result of training. </li></ul></ul><ul><ul><li>SA= skill demonstrated after training by work output , critical incidents of interpersonal relations, or other observable phenomena. </li></ul></ul><ul><ul><li>SB= skill level existing before the training , using the criteria above. </li></ul></ul>executive batch 2009-10
  16. 16. ATTITUDE CHANGE <ul><li>AC=AA/AB </li></ul><ul><ul><li>AC= attitude change </li></ul></ul><ul><ul><li>AA=Attitude after training </li></ul></ul><ul><ul><li>AB= attitude before training </li></ul></ul><ul><li>Performance Change </li></ul><ul><ul><li>PC=PA/PB </li></ul></ul><ul><ul><li>PC=change in work performance as measured by the organization’s performance appraisal system. </li></ul></ul><ul><ul><li>PA= latest review rating or score from a performance appraisal conducted at least 90 days after the training </li></ul></ul><ul><ul><li>PB= performance review score or traning from the performance appraisal conducted before the training. </li></ul></ul>executive batch 2009-10
  17. 17. VALUE ANALYSIS <ul><li>It consist of four steps: </li></ul><ul><ul><li>Situational analysis:-study the business problem or opportunity looking for its sources and the factors and forces driving it. </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>Impact:-when the data on performance change are in, did performance change? </li></ul></ul><ul><ul><li>Value:- calculation of the value of the impact in monetary and, if applicable , human terms. </li></ul></ul>executive batch 2009-10
  18. 18. DEVELOPING AND MEASURING LEADERSHIP <ul><li>Peter Koestenbaum’s simple model divided into two aspects- </li></ul><ul><li>Authenticity:- invisible ,inherent character. </li></ul><ul><li>Competence </li></ul><ul><li>Leadership Metrics </li></ul><ul><li>Leaders depends on followers , without followers there is no leader. Behavior of a leader include some of the following:- </li></ul><ul><ul><li>Provides an exciting vision for others to follow </li></ul></ul><ul><ul><li>Outlines a strategy and makes a commitment to it </li></ul></ul><ul><ul><li>Describes a preferred corporate culture </li></ul></ul><ul><ul><li>Acts in accordance with the culture </li></ul></ul><ul><ul><li>Is consistent in word and behavior </li></ul></ul><ul><ul><li>Treats all people with respect </li></ul></ul><ul><ul><li>Acts ethically </li></ul></ul><ul><ul><li>Develops talent </li></ul></ul>executive batch 2009-10
  19. 19. MEASUREMENT OF BDAL <ul><li>BDAL-Business Driven Action Learning </li></ul><ul><li>Yuri Boshyk described BDAL change company’s strategy and behavior of its people. </li></ul><ul><ul><li>Five key elements of BDAL:- </li></ul></ul><ul><ul><ul><ul><li>Involvement and support of senior executives. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Work on real business issues exploration of new strategic opportunities. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Action research focus on internal and external business experience. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Leadership development through teamwork. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Implementation of recommendations and follow up on the issues. </li></ul></ul></ul></ul>executive batch 2009-10
  20. 20. THE NEW LOOK OF EMPLOYEE DEVELOPMENT <ul><li>Traditional approach: Job or Organization and Employee view point </li></ul><ul><li>Tried to fit people to the job or job to the people </li></ul><ul><li>Three issues for better career development </li></ul><ul><ul><li>First need to understand the business </li></ul></ul><ul><ul><li>Second development requirement is interpersonal skills </li></ul></ul><ul><ul><li>Analytical ability </li></ul></ul>executive batch 2009-10
  21. 21. THE DEVELOPMENT TREND <ul><li>Specific development is becoming more prized </li></ul><ul><li>Quality, productivity and service issue can be solved cost-effectively </li></ul><ul><li>Shift toward self directed and self-paced development </li></ul><ul><li>Employees must take active role in self development </li></ul><ul><li>Development Process </li></ul><ul><li>Formation of career development team: </li></ul><ul><ul><li>First, a representative of line management must be included from the area we plan for servicing </li></ul></ul><ul><ul><li>Representation from HR, Staffing and career development </li></ul></ul><ul><ul><li>Trainer who will design and deliver </li></ul></ul><ul><li>Selection of Target development area </li></ul><ul><ul><li>E.g: Develop people in customer service area </li></ul></ul><ul><ul><li>Select people based on the feedback from managers and customer </li></ul></ul>executive batch 2009-10
  22. 22. CAREER DEVELOPMENT MEASURES <ul><li>One way to measure career development is to view the job-posting system as a career development activity </li></ul><ul><li>First thing we can show management is the volume of applicants and placements handled each month </li></ul><ul><li>Second issue cost per placement. How much we save the organization through internal placement </li></ul><ul><li>Third important issue is retention </li></ul>executive batch 2009-10
  23. 23. ORGANIZATIONAL SHIFTS <ul><li>Career Path Ration </li></ul><ul><li>CPR = </li></ul><ul><li>CTR = </li></ul><ul><li>Where CPR= Career Promotion Ratio </li></ul><ul><li> CTR= Career Transfer Ration </li></ul><ul><li> p= number of employee receiving a promotion </li></ul><ul><li> T= number of employee transferred </li></ul>P + T P T P + T executive batch 2009-10
  24. 24. ORGANIZATIONAL DEVELOPMENT <ul><li>Organizational Development: Past and Future </li></ul><ul><li>1980 Organizational Development evolves from the touchy-feely, humanistic psychology </li></ul><ul><li>1990. OD took on more practical face. It is actively partnering, creating and guiding change management process </li></ul><ul><li>OD practitioners are helping organization to modify the business strategy, determine the gaps between current condition and desired future state </li></ul>executive batch 2009-10
  25. 25. ORGANIZATIONAL DEVELOPMENT AND THE ORGANIZATION <ul><li>OD is an effort: </li></ul><ul><ul><li>Planned </li></ul></ul><ul><ul><li>Organization wide </li></ul></ul><ul><ul><li>Managed from the top </li></ul></ul><ul><ul><li>Increase organization effectiveness and health through </li></ul></ul><ul><ul><li>Planned inventions in the organization process, using behavior science knowledge </li></ul></ul>executive batch 2009-10
  26. 26. OD OPPORTUNITIES <ul><li>Benchmarking, Reengineering and other forms of process improvement can use OD skills </li></ul>WHY OD IS NOT QUANTITATIVELY EVALUATED <ul><li>First, some feel that since evaluation is not demanded in past why offer it now </li></ul><ul><li>People do not know how to measure beyond basic production and financial variables </li></ul><ul><li>Many people including some OD people do not want to measure </li></ul><ul><li>People don’t want to accept the constraints imposed by science and business impose </li></ul><ul><li>Zealous, so don’t want to speak OD in business terms </li></ul>executive batch 2009-10
  27. 27. MEASURE OF EFFECTIVENESS FOR ORGANIZATION DEVELOPMENT <ul><li>Six Factors: </li></ul><ul><li>Short Term </li></ul><ul><ul><li>Productivity </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>service </li></ul></ul><ul><li>Intermediate </li></ul><ul><ul><li>Responsiveness </li></ul></ul><ul><ul><li>Development </li></ul></ul><ul><li>Long Term </li></ul><ul><ul><li>Survival </li></ul></ul>executive batch 2009-10
  28. 28. ENTERPRISE FACTOR <ul><li>Productivity </li></ul><ul><li>Quality </li></ul><ul><li>Service </li></ul><ul><li>Responsiveness </li></ul><ul><li>Development </li></ul><ul><li>Survival </li></ul><ul><li>Subsystem </li></ul><ul><li>Productivity </li></ul><ul><li>Quality </li></ul><ul><li>Service </li></ul><ul><li>Change measure </li></ul><ul><li>Scorecarding </li></ul><ul><li>Value Chain </li></ul>executive batch 2009-10
  29. 29. <ul><li>Thank You </li></ul>executive batch 2009-10