chap06- Training Evaluation (HRM) 123.ppt

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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
6
Chapter
Training Evaluation

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Objectives
Objectives
After reading this chapter, you should be able to:
After reading this chapter, you should be able to:
1. Explain why evaluation is important.
2. Identify and choose outcomes to evaluate a
training program.
3. Discuss the process used to plan and
implement a good training evaluation.
4. Discuss the strengths and weaknesses of
different evaluation designs.

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Objectives
Objectives (continued)
(continued)
5. Choose the appropriate evaluation design
based on the characteristics of the company
and the importance and purpose of the
training.
6. Conduct a cost-benefit analysis for a training
program.

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Introduction
Introduction
 Walgreen Company wanted to determine if
the time, money, and effort devoted to
training technicians actually made a
difference.
It was interested in assessing the
effectiveness of the training program.

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Introduction
Introduction (continued)
(continued)
 Training effectiveness
Training effectiveness refers to the benefits that the
company and the trainees receive from training.
 Training outcomes or criteria
Training outcomes or criteria refer to measures that
the trainer and the company use to evaluate training
programs.
 Training evaluation
Training evaluation refers to the process of
collecting the outcomes needed to determine if
training is effective.
 Evaluation design
Evaluation design refers to from whom, what, when,
and how information needed for determining the
effectiveness of the training program will be collected.

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Reasons for Evaluating Training
 Companies are investing millions of dollars in
training programs to help gain a competitive
advantage.
 Training investment is increasing because
learning creates knowledge which
differentiates between those companies and
employees who are successful and those who
are not.

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(continued)
(continued)
Because companies have made large dollar
investments in training and education and
view training as a strategy to be successful,
they expect the outcomes or benefits
related to training to be measurable.

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Training evaluation involves:
Training evaluation involves:
 Formative evaluation –
Formative evaluation – evaluation conducted
to improve the training process.
 Summative evaluation –
Summative evaluation – evaluation conducted
to determine the extent to which trainees have
changed as a result of participating in the
training program.

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Why Should A Training Program Be
Evaluated?
Evaluated?
 To identify the program’s strengths and
weaknesses.
 To assess whether content, organization, and
administration of the program contribute to
learning and the use of training content on the
job.
 To identify which trainees benefited most or
least from the program.

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Evaluated?
Evaluated? (continued)
(continued)
 To gather data to assist in marketing training
programs.
 To determine the financial benefits and costs of
the programs.
 To compare the costs and benefits of training
versus non-training investments.
 To compare the costs and benefits of different
training programs to choose the best program.

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

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Training Outcomes: Kirkpatrick’s Four-
Training Outcomes: Kirkpatrick’s Four-
Level Framework of Evaluation Criteria
Level Framework of Evaluation Criteria
Level
Level Criteria
Criteria Focus
Focus
1 Reactions Trainee satisfaction
2 Learning Acquisition of knowledge, skills, attitudes, behavior
3 Behavior Improvement of behavior on the job
4 Results Business results achieved by trainees

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Outcomes Used in Evaluating Training
Programs:
Programs:
Cognitive
Outcomes Skill-Based
Outcomes
Affective
Outcomes
Results
Return on
Investment

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Programs:
Programs: (continued)
(continued)
 Cognitive Outcomes
Cognitive Outcomes
 Determine the degree to which trainees are familiar
with the principles, facts, techniques, procedures, or
processes emphasized in the training program.
 Measure what knowledge trainees learned in the
program.
 Skill-Based Outcomes
Skill-Based Outcomes
 Assess the level of technical or motor skills.
 Include acquisition or learning of skills and use of
skills on the job.

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Programs:
(continued)
 Affective Outcomes
Affective Outcomes
 Include attitudes and motivation.
 Trainees’ perceptions of the program including the
facilities, trainers, and content.
 Results
Results
 Determine the training program’s payoff for the
company.

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Programs:
(continued)
 Return on Investment (ROI)
 Comparing the training’s monetary benefits with
the cost of the training.
Direct costs
Indirect costs
Benefits

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How do you know if your outcomes are
How do you know if your outcomes are
good?
good?
Good training outcomes need to be:
 Relevant
 Reliable
 Discriminate
 Practical

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Good Outcomes: Relevance
Good Outcomes: Relevance
 Criteria relevance –
Criteria relevance – the extent to which training
programs are related to learned capabilities
emphasized in the training program.
 Criterion contamination –
Criterion contamination – extent that training
outcomes measure inappropriate capabilities or are
affected by extraneous conditions.
 Criterion deficiency – failure to measure training
outcomes that were emphasized in the training
objectives.

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Criterion deficiency, relevance, and
Criterion deficiency, relevance, and
contamination:
contamination:
Relevance
Outcomes
Identified by Needs
Assessment and
Included in Training
Objectives
Outcomes
Measured in
Evaluation
Deficiency
Contamination
Outcomes Related to Training Objectives

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Good Outcomes
Good Outcomes (continued)
(continued)
 Reliability –
Reliability – degree to which outcomes can be
measured consistently over time.
 Discrimination –
Discrimination – degree to which trainee’s
performances on the outcome actually reflect
true differences in performance.
 Practicality –
Practicality – refers to the ease with which the
outcomes measures can be collected.

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Evaluation Designs: Threats to Validity
Evaluation Designs: Threats to Validity
 Threats to validity
Threats to validity refer to a factor that
will lead one to question either:
The believability of the study results
(internal validity)
(internal validity), or
The extent to which the evaluation results
are generalizable to other groups of trainees
and situations (external validity)
(external validity)

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Threats to Validity
Threats to Validity
 Threats To Internal Validity
 Company
 Persons
 Outcome Measures
 Threats To External Validity
 Reaction to pretest
 Reaction to evaluation
 Interaction of selection and training
 Interaction of methods

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Methods to Control for Threats to Validity
Methods to Control for Threats to Validity
Pre- and Posttests
Use of Comparison Groups
Random Assignment

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Types of Evaluation Designs
Types of Evaluation Designs
 Posttest – only
 Pretest / posttest
 Posttest – only with
Comparison group
 Pretest / posttest with
Comparison group
 Time series
 Time series with
Comparison group and
Reversal
 Solomon Four – group

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Factors That Influence the Type of
Factors That Influence the Type of
Evaluation Design
Evaluation Design
Factor
Factor How Factor Influences Type of Evaluation Design
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?
Organization culture Is demonstrating results part of company norms and expectations?
Expertise Can a complex study be analyzed?
Cost Is evaluation too expensive?
Time frame When do we need the information?

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Importance of Training Cost Information
Importance of Training Cost Information
 To understand total expenditures for training,
including direct and indirect costs.
 To compare costs of alternative training
programs.
 To evaluate the proportion of money spent on
training development, administration, and
evaluation as well as to compare monies spent
on training for different groups of employees.
 To control costs.

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To calculate return on investment (ROI),
follow these steps:
follow these steps:
1. Identify outcome(s) (e.g., quality, accidents)
2. Place a value on the outcome(s)
3. Determine the change in performance after
eliminating other potential influences on
training results.
4. Obtain an annual amount of benefits
(operational results) from training by comparing
results after training to results before training (in
dollars)

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follow these steps:
follow these steps: (continued)
(continued)
5. Determine training costs (direct costs + indirect
costs + development costs + overhead costs +
compensation for trainees)
6. Calculate the total savings by subtracting the
training costs from benefits (operational results)
7. Calculate the ROI by dividing benefits
(operational results) by costs.
 The ROI gives you an estimate of the dollar
return expected from each dollar invested in
training.

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Example of Return on Investment
Example of Return on Investment
Industry Training Program ROI
Bottling company Workshops on managers’ roles 15:1
Large commercial bank Sales training 21:1
Electric & gas utility Behavior modification 5:1
Oil company Customer service 4.8:1
Health maintenance
organization
Team training 13.7:1

chap06- Training Evaluation (HRM) 123.ppt

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