Measuring T&D 1

MEASUREMENT OF TRAINING AND DEVELOPMENTBy group-3

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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 employee.

Training is activity leading to skilled behavior.

-it’s 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.

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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 organization.

Organizational objectives- assist the organization with its primary objective by bringing individual objectives.

Functional objectives- maintain the department’s contribution at a level suitable to the organization’s needs.

Societal objectives- ensure that an organization is ethically and socially responsible to the needs and challenge of the society.

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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 standpoint?

- What difference did it make to the business imperatives?

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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

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KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL LEARNING PRACTICES

It yields four types of improvements:-

Cost reduction by reducing time away from work to learn.

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 one’s own.

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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 case.

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.

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CONTD.

Institutionalization Top management must be very visible in its

support. Funding as well as personal involvement, is

necessary. Climate assessment is necessary. “Balanced Scorecard” can be developed. T&D SCORECARD.xlsm

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IC MATRICS

Learning : Hours of training per Headcount Percent of staff in company sponsored

education Invested dollars per Headcount in T&D

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.

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KM MACRO METRICS

HCVA: Revenue – Purchased services per FTE HCROI: Ratio of profit to Remuneration per FTE HEVA:NOPAT- Capital Cost per FTE HMVA: Market value- Book value per FTE

KM PROCESS METRICS Innovation: Percent of revenue from new products R&D

expenditure as percent of sales. Drag: Span of control(employees per supervisor)

Cost to supervise, No. of employees self service on intranet, G&A cost as a percent of sales.

Team effectiveness: Percent of team projects that achieve their objectives.

Outsource Factor: Percent of G&A services outsourced(payroll, maintenance , IT etc.

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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 trainee’s

use of new skills , knowledge or attitude that are measurable in monetary terms in the organization’s productivity, quality or service result.

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TRAINING COST FACTOR

TCF=(CC+TR+S+RC+TL+TS+PS+OH)/PT

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

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TRAINING COST PER HOUR

TCH=TC/TH

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 following:- The scale of the program? Is this a common topic or a special topic? Will there be travel involved?

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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

Diagnosis

Design

Development

Delivery

Evaluation

Total

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KNOWLEDGE CHANGE

KC= KA/KB KC= knowledge change KA= knowledge level after training KB= knowledge level before training

Skill (Behaviour) Change CS=SA/SB

SC= observable change in skills as a result of training.

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.

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ATTITUDE CHANGE

AC=AA/AB AC= attitude change AA=Attitude after training AB= attitude before training

Performance Change PC=PA/PB PC=change in work performance as measured by

the organization’s 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 training.

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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.

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DEVELOPING AND MEASURING LEADERSHIP

Peter Koestenbaum’s simple model divided into two aspects-

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

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MEASUREMENT OF BDAL

BDAL-Business Driven Action Learning Yuri Boshyk described BDAL change

company’s 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.

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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 people

Three issues for better career development First need to understand the business Second development requirement is interpersonal

skills Analytical ability

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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 development Employees must take active role in self development

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 development 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

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CAREER DEVELOPMENT MEASURES One way to measure career development is to view the job-

posting system as a career development activity

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

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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

P + T

P

T

P + T

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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 state

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ORGANIZATIONAL DEVELOPMENT AND THE ORGANIZATION

OD is an effort: Planned Organization wide Managed from the top Increase organization effectiveness and health

through Planned inventions in the organization process,

using behavior science knowledge

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OD OPPORTUNITIES Benchmarking, Reengineering and other forms

of process improvement can use OD skillsWHY 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 don’t want to accept the constraints

imposed by science and business impose Zealous, so don’t want to speak OD in business

terms

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MEASURE OF EFFECTIVENESS FOR ORGANIZATION DEVELOPMENT

Six Factors: Short Term

Productivity Quality service

Intermediate Responsiveness Development

Long Term Survival

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ENTERPRISE FACTOR Productivity Quality Service Responsiveness Development Survival Subsystem Productivity Quality Service Change measure Scorecarding Value Chain

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Thank You

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