training evaluation
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How to do training evaluationTRANSCRIPT
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POWER HR FORUM
RETURN ON TRAINING INVESTMENT
ROTI
A White Paper
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MESSAGE FROM HONORARY SECREATRY
Evaluation of Training has always been an important concern in our member
organizations as training is used by them as a method to develop their human
resource, build their competence as per dynamic business environment for
sustainable development and they are spending gregariously on this. Huge
expenditures are one part for justifying the training during evaluation process but
most important ones are measuring the learning achieved through training,
application of those learnings at workplace and how actually they are impacting
the business outcomes. Ultimately all organizations are spending so much for
achieving the later results only and to evaluate if their training practices are
achieving the desired results, they have been looking for some credible available
model for training evaluation.
To facilitate the needs of our Human Resource function in our member
organizations and helping them to evolve as HR Business Partners, Power HR
Forum has come out with a white paper on Return On Training Evaluation ROTI,
based on Phillips training evaluation model. This Model illustrated step by step
how training process need to be designed, what factors need to be considered
while deciding training objectives at different levels, how to do training evaluation
at different levels.
We really hope this white paper, Return On Training Investment will help our HR
fraternity to carry out their training initiatives in a more impactful manner with
more holistic approach.
Subhasis Ghosh
Executive Director (HR), NTPC &
Honorary Secretary Power HR Forum
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Training Evaluation: A Framework
Contents
1. Introduction ............................................................................................................................. 1
2. Rationale to Measure ROTI (Return On Training Investment) ................................................ 1
3. Stakeholders in the ROTI ......................................................................................................... 2
4. Levels of Evaluation ................................................................................................................. 2
5. Evaluation Process ................................................................................................................... 3
Step 1: Develop Training Programme Objectives ................................................................... 4
Step 2: Develop Evaluation Plan ............................................................................................. 6
Step 3: Data Collection .......................................................................................................... 9
Step 4: Data Analysis ............................................................................................................. 9
6. The Outcome of Study ........................................................................................................... 11
7. Undertaking a Training Evaluation Project. 12
Case I: Training Evaluation is taken as an Afterthought...... 12
Case II: Training Evaluation as a Planned Initiative.. 13
Annexure I: Sample Feedback Form I & II14
Annexure II: Test of Learning17
Annexure III: Programme Cost Structure.20
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Training Evaluation A Framework
1. Introduction
Capability and therefore Human Resource is aunique source of abundant advantage for any
organization. Organizations are using training as one of the tools forcapability
enhancement. Providing appropriate training has become the strategy of the best
companies to get highest quality output from the employees. It has now become an
undisputed effective business tool and is linked the business outcomes.
Worldwide, training and performance improvement programmes have been reported
ashigh as3.6% of an organizations payroll, 1.3% of revenues and 5.9% of profit (as per ASTD
2013 research report).
Aptly, we shall use the term ROTI (Return On Training Investment) here for our framework
on training evaluation.
2. Rationale to Measure ROTI (Return On Training Investment)
The large investment and the need to demonstrateits values, are two of the primary drivers
placing an emphasis on the evaluation of training programmes. In the past, with
manufacturing industry in predominant, effectiveness of training could be easily measured
by production output. Not so much now a days, where training covers domain like
management and development of organizations, teams, individuals and information. And
measuring value of training is difficult in case of these softer issues. In addition to these
trends, following issues are driving the current need to measure the results of training and performance improvement programmes:
1. To build the credibility of the training function, training managers and training
processes;
2. To fulfill clients (those funding the training programmes) requests for evaluation data to
be sure of the appropriateness of investment;
3. To justify the training budget and competing for scarce organizational resources
4. To evaluate the training method used and the use of time for trainer and employees.
5. To provide evidence to management/stakeholders on success of training programmes.
6. To identify areas for improvement in total cycle of training process.
Return On Training Investment-ROTI : A Framework
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3. Stakeholders in the ROTI
As we see above, all of the stakeholders in the training process have different needs and
they need to be prioritized before one goes for training evaluation. Following stakeholders
can be associated as per the importance of their needs and requirements:
1. Training function/HR function
2. HR Head
3. Participants (past/present/future)
4. Reporting Officers
5. Internal Clients (making investment in training programmes)
6. Finance Function
7. Business Operations/Line Functions
4. Levels of Evaluation
Developing a credible and comprehensive evaluation process is much like putting together
the pieces of a puzzle. The first step of the puzzle is the evaluation framework. This
framework defines the levels at which training prorammes are to be evaluated and how
data is to be captured. The following framework is based on the work of Donald L. Kirpatrick, with an addition of fifth level by Jack J. Phillips.
Table 1: Training Evaluation Framework
Level Measurement Category What does it measures?
1 Reactions and Satisfaction - Participants reaction to training programmes, - Satisfaction with learning experience, contents, perceived
value of programme, and services like ambience
2 Learning - Extent to which participants improve knowledge, increase skills and acquire new behavioral changes
3
Application and implementation
- Specific application and implementation of the learning at work place
4 Business Impact - Outcomes with variables such as output, quality, time and cost as a result of application of learning
5 ROTI - Compares the monetary benefits of the business impact to the costs of the programme.
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Return On Training Investment-ROTI : A Framework
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5.
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Return On Training Investment-ROTI : A Framework
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Step 1: Develop Training Programme Objectives
The first step in training evaluation process involves defining the training programme objectives
i.e. what intended outcome the programme aimed at. Then the evaluation task become
checking whether these outcomes are achieved or not. Programme objectives range from a
basic level of achieving certain feedback ratings, to increased knowledge level to on-job
application.
Table-2 in the subsequent pages indicate details of different levels of training objectives
corresponding to different degree of complexity.
Table 2: Programme Objectives at Various Levels
Level What does it measures
Typical Objectives
1) Reaction &
Satisfaction
Participants
reaction and satisfaction to
the programme
The participants to rate the programme at 8/10 (say). It may
include the following:
1. Participants feedback on:
Faculty delivery
Course/reference material provided Interaction with faculty
Administrative arrangements
Ambience
Training coordination Fulfillment of learning objectives
Relevance to workplace requirement
2. Participants subjective responses on how they plan to put into practice the learning gained at their workplace
2) Learning Knowledge, skills,
behavioral changes
The main objective is to check if participants learning are at a higher level than before attending the training programme.
These can be specified by:
Difference between pre and post training test scores
Simulation/role play performance
Case Study analysis
Keeping certain cut-off marks in post test
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Return On Training Investment-ROTI : A Framework
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Level What does it measures
Typical Objectives
3) Application & Implementation
On job application of
knowledge / skills from training programme
At the workplace, the participants are expected to implement the knowledge and skills learnt during the training
programme to perform their jobs more effectively, as given below:
Write a business proposal requiring no correction
Preparing a presentation and deliver to audience
Shaft alignment of a pump, unaided and within timeframe
List requirements of spare parts before turbine is overhauled so that it is completed within stipulated time
Time/activity management with least procrastination
Demonstrate empathy with co-workers
Give feedback/coach juniors following correct procedures
Take up and complete TQM/benchmarking project in stipulated time
Take up and complete HR Audit project for specific HR domain
4) Business Impact Outcomes of application of learning at workplace
Because of the above mentioned on the job application of the knowledge and skills acquired, following business outcomes must be achieved. The given below illustrative examples are linked directly to application objectives, as above.
Reduced time and rework in preparing the documents
Decisions are quicker and objectively made as a result of focused presentation
Reduced dependency on others as a result of skills acquired resulting in manpower and time reduction
Reduced time between overhauls and less numbers of surprises, hampering progress of work
Timely completion of task assigned
Improved interpersonal relations in team resulting into more volume of work output
5) ROTI Monetary benefits
Compares the monetary benefits accrued because of the training programme to the cost of programme. The monetary
benefit is because of time saved, less number of manpower and input resources and increased production/sales.
For any training programme, its ROTI should be within the range of 130 % to 300 %.
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Step 2: Develop Evaluation Plan
After determining the objectives the next step is to develop the evaluation plan. This step
ensures that objectives determined for each evaluation level are addressed appropriately, as
given in Table 2. Before developing the evaluation plan, the levels to be evaluated need to be
determined for any programme. This is because as the level of evaluation increases, so does it
difficulty and expense. It takes time and resources to do a comprehensive ROTI study, so its not
feasible to do it for every training programme. Table 3 suggests the target coverage for the
evaluation to be done at every level along with ease and their usefulness.
Table 3: Evaluation Difficulty and Intended Coverage
Levels Purpose Ease Usefulness Target
Coverage Level 1
Reaction & Satisfaction
Relatively easy
Least useful data
100% (say)
Level 2
Learning 80% (say)
Level 3
Application 20% (say)
Level 4
Business Impact 5% (say)
Level 5
ROTI Most difficult Most useful 1% (say)
The sub steps for this particular step are given below:
1) Deciding which training programme is to be evaluated and at what level;
2) Developing training objectives at the desired level; if the evaluation is for higher level,
then training objectives at lower level need not be developed.
3) Developing numeric target and baseline wherever applicable and appropriate to the
level of evaluation and nature of training programme; target for satisfaction level (L1),
learning (L2), ROTI (L5) are easier to specify numerically whereas for Level 3 and Level
4, it is difficult.
4) Establishing data collection method including formats, templates, who would collect,
time limit and how. This is detailed Table 4:
Pre-programme communication of the evaluation plan to programme participants help in
reaffirming the importance of the programme and will encourage participants to help in data
collection at the appropriate time for evaluation process.
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Table 4: Data Collection Plan
Levels Data Collection Method Timing of Data
Collection
Responsibility
of Data Collection
Reaction It requires a one page document having Likert scale for different measures on which feedback is sought. Two different formats are given for illustration in Annexure I.
Immediately at the end of programme, within the classroom
Training Manager / Coordinator
Word of Caution: Data Collection at this level is very easy therefore training managers get tempted to include as many factor as possible. But evaluation at this
level does not provide us any concrete information. Therefore we need to be cautioned while choosing the factors to be measured and only focus on:- Factors which are actionable and which can aid us to take a business decision.
Learning This level requires instruments using which
knowledge/skill gained by participants after training can be assessed. Details of various instruments are shared in Annexure II for more details.
Pre-Post Test: Once
at beginning and other at end of training programme, within the classroom Only Post Test: Immediately at the end of programme, within the classroom
Training
Manager / Coordinator
Application & Implementation
Asking immediate stakeholders of training participants as to how much is the application.
Data Source are*:
i. Reporting Officer ii. Participant
iii. Internal Customers iv. External Customers
v. Subordinates * Based on priority maximum three stakeholders need to be considered.
Data collection Method: Interviews using different mediums like
telephonic, electronic, online, pen & paper formats
Feedback should collected within 3-6 months of
programme conductance; outside
the classroom, at workplace
Training Manager/Coordinator
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Table 4: Data Collection Plan (contd.)
Levels Data Collection Method Timing of Data Collection
Responsibility of Data Collection
Business Impact
Asking seniors about the outcome of the implementation of new knowledge/skills
acquired in training programme.
Data Sources: -Functional Heads
-Sectional Heads -Direct Reporting Officer (in case of senior level employees)
Questions to be asked are- how business objectives as decided earlier have resulted in: -% reduction in mandays / time saved -% increase in customer satisfaction -Reduction in input resources as
compared to previous year -Achieving higher targeted sales and production goals as compared to last year.
-% reduction in customer complaints due to improved quality.
Before end of the year of conductance
of programme
Training Manager /
Coordinator
ROTI 1. Isolating the effects of training programme
2. Gathering business impact data and convert it to monetary value
3. Capturing programme costs
Detailed ROTI process explained in Step 4
and Progrmme Cost Structure in Annexure III
Before end of the year of conductance
of programme
Training Manager /
Coordinator
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Return On Training Investment-ROTI : A Framework
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Step 3: Data Collection
This stage of ROTI methodology involves data collection in two time frames:
i) In the classroom, immediate after the programme:
Data is collected during the programme with intent to measure participants reaction,
satisfaction as well as learning. Reaction data can also be useful in predicting application
as well as forecasting impact data and ROTI. This time frame is applicable for level 1 and
2 of evaluation only.
ii) Outside the classroom, at the workplace:
After the programme, information is gathered regarding the application of the skills and
knowledge as well as the impact the programme has had on the organizations/business.
Both hard and soft data are collected using a variety of methods. This time frame is
applicable for level 3, 4 and 5 of evaluation.
Step 4: Data Analysis
This pertains mainly to the fifth level of evaluation in ROTI. The benefits of the programme are
converted into monetary value at this stage. But before that, contribution made by the training
programme need to be isolated from the effects of the factors other than training. Following
sub steps are involved in this stage of data analysis:
i) Isolate the effects of the training programme:
Performance factors measured should be directly related to the programme as many
factors influence the performance of employees other than structured training
programme. Some common strategies commonly used to address this issue are stated
as:
Participants/stakeholders estimate the amount of improvement caused, that
could be ascribed to training programme alone. This may be 40% -
100%.Encouragement from seniors, reading from books or online sources,
learning from peers, are some of the other contributing factors.
Identify the other factors making impact on performance and estimate or
calculate the impact by them, leaving the remaining unexplained improvement
attributed to the programme.
ii) Convert business impact data to monetary value:
To calculate ROTI, convert business impact data into monetary values and compare
those values to programme costs. Depending upon the type of data involved in showing
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Return On Training Investment-ROTI : A Framework
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business impact, following suggested strategies could be used to convert data into
monetary values:
Output data, like additional sales can be converted to profit contribution
Cost of quality measure, such as customer complaint, can be calculated and
reported as standard value.
Employee time saved can be converted to wages saved and benefits, etc.
The programme benefit data is represented in annualized form which means the
analysis could have been for two months period and while reporting, it has to be
converted to 12 months by extrapolation.
iii) Capture Programme Costs: Calculate all the direct and indirect costs involved in
the programme. A detailed list of various parameters are at Annexure III.
iv) Calculate the Return on Investment (ROTI): ROTI can be calculated by
comparing the net programme benefits and costs. The ratio is usually expressed
as a percent:
ROTI (%) = (Net Programme Benefits / Programme Costs) x 100
Where net programme benefits are programme benefits minus programme
costs.
v) Identify intangible measures: Identifying and converting data to monetary value
is more challenging in case soft data or intangible benefits. Intangible benefits
include items such as:
Improved public image
Increased job satisfaction
Increased organizational commitment
Reduced stress
Improved teamwork
Improved customer service
Reduced customer response time
Enhanced technology leadership
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Return On Training Investment-ROTI : A Framework
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6. The outcome of Study
Reporting the results of a comprehensive measurement and evaluation is the last step in the
ROTI study and should be systematic and well planned. Table 5 provides a framework of
contents of reporting outcome of ROTI study:
Table 5: Suggested Framework for Evaluation Report
Sl Suggested Contents of Evaluation Report
Page no
1 Participating Stakeholder, we are aiming at
2 Stakeholders need and expectations from training programmes
3 Level of evaluation decided/desired and the rationale behind for specific training programme
4 Tangible benefits
5 Intangible benefits
6 Lessons learned
7 Limitations of present study
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7.
Un
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taki
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a Tr
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Eva
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Pro
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C
ase
I
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An
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I, Se
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Return On Training Investment-ROTI : A Framework
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Fig
3.
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or
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-App
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-Bu
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-R
OTI
Dat
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Return On Training Investment-ROTI : A Framework
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Annexure I
A. Sample Feedback Form I (used by NTPC)
PROGRAM TITLE Assessor Building for NTPC Business Excellence Model
PROGRAM DURATION Aug 5-8, 2014
Organizer PMI
VENUE SCOPE Complex, MCM Hall, New Delhi
Program coordinator DMR PANDA
Please provide feedback on following parameters on a scale of 1-10, where 1 Not Satisfied and in the increasing order of satisfaction 10- Highly Satisfied.
1. Please rate the extent to which Overall Program Objectives were achieved
Programme Objective:
Describe the internal assessment model for business excellence
State the coverage of nine criteria of excellence Explain the process of assessment of submitted document from participating
stations Evaluate and score the application document from any NTPC power station
Describe the process of generating feedback report for the particular station based on the review of application document and plant visit
S
No
Not Satisfied Highly
Satisfied
1 2 3 4 5 6 7 8 9 10 1. Overall Program Objectives
2. Please rate the extent to which the following aspects of the program are met as per your expectation
S No Dimensions Not Satisfied Highly Satisfied
1 2 3 4 5 6 7 8 9 10
1. Content & Depth of Coverage
2. Program Duration
3. Relevance to your role
4. Program Coordinated
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3. Please rate the extent to which different faculties met your expectations in terms of subject
knowledge, structure and delivery
S No Session Topic Faculty Name Not Satisfied Highly Satisfied
1 2 3 4 5 6 7 8 9 10
1 Internal BE Model C V Subrahmanyam
4. Please rate the extent to which following Administrative Aspects are met as per your expectation
S No Dimensions Not Satisfied Highly Satisfied
1 2 3 4 5 6 7 8 9 10
1. Hospitality Arrangements
2. Overall Administrative Arrangements
3. In house residential arrangements
5. Kindly mention where and how you shall apply the learning at workplace?
6. Kindly give your comments regarding program and suggestions for improvement of the Program.
Date ------------------------------ Signature________________
Name ___________________
Emp No.________________
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B. Sample Feedback Form II (used by Power HR Forum)
PROGRAM TITLE CSR & SD
PROGRAM DURATION September 29, 2014
VENUE Power HR Forum, PMI NOIDA Please provide feedback on following parameters.
1. Please rate the extent to which Overall Program Objectives were achieved
Moderate (less than (
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Annexure-II
Test of Learning
The aim of the Learning Evaluation (Level-2) is to check if the learning of the participants
has reached to some desired level after attending the training programme. There are two
options in this regard:
1) Pre-post test
2) Post test
Further, each of these categories may include following methods:
a) MCQ (multiple choice questions)
b) True/False type
c) Subjective assessment
d) Demonstration through role play / working on models
e) Analysis of case studies
f) Simulation
The job of the training manager at this stage is to follow the learning objectives finalized
during the step 1. Then based on those objectives, determine the mode he/she going to use
for assessing the change in learning achieved during training programme as expla ined
below:
A) Pre-Post Training Test and Post Test:
Pre-Post Test is preferred where participant has some background knowledge of the
training programme contents or participants are already working in the same domain
and the intent of training programme is to acquire advanced skills. Then, training
manager can make out clearly improvement in the skill levels of employees.
Table 1: Comparison of Test Methods
Parameters Pre-Post Test Post Test
Level of skill to be achieved Degree of learning enhancement
Certain level of proficiency has to be
achieved; say 70 % at end of training.
Criticality of learning High Lower
Location of proficiency Within the classroom Within the classroom Extra time and cost More Less
Seriousness/objectivity/engagement of participants
High Lower
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B) Choosing among Objective/Subjective/Case Studies/Role Plays
1. Objective (MCQs/True-False):
These mode of test should be used when the group size is large (say) more than 15,
time available is less, criticality of the skills to be acquired is not that important or
specific and focus is upon acquiring knowledge.
2. Subjective Questions:
This mode is preferred when the population size is restricted a certain level of
knowledge/skill have to be demonstrated. In case,where the criticality of the
knowledge/skill to be acquired is more important than population size does not
matter.
3. Simulations:
This mode of testing is preferred when the skills acquired during the training
programme are of critical importance and have to be demonstrated by every
participant to perform his job at workplace.
4. Case Studies:
This approach has to be used when we want the participants to learn how to
implement the learning from the training programmes to the real life situations.
5. Role Plays:
This approach is preferred in behavioral trainings where we want participants to act
on specific situations and learn, feel and experience it to gain more clarity. This
approach should be preferred when availability of time is not a restriction.
Table 2: Usage of Different Instruments for evaluating Learning
Parameters Objective Subjective Simulations Case Studies
Role Plays
Participant Group
More than 15
Less than 15 Less than 15 Less than 15
Less than 15
Testing Time Least Lesser More More Less
Evaluation Time
Least More More More More
Automation
Level
Highest Not possible Not possible Not
possible
Not
possible Criticality of skills acquired
Moderate Moderate Highest High High
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Usually objective test is most widely used which is a good compromise between
outcome achieved and input required.
(C) How to decide the Number and Difficulty Level of Questions in Pre-Post/Post Training Tests
To get the more accurate picture of the knowledge/skills acquired during the training
programme, inclination is on to ask more number questions, for a clearer assessment.
But this has to be restricted to limit ourselves and be more focused. When we are going
for objective type of questions, one rule of thumb is to ask 16 questions for a day of
training programme or 4 questions per session. Say a training programme is scheduled
for 3 days, then the number of questions come down to 45. In case of subjective type of
questions 6 questions per day should be asked. A combination of objective as well
subjective can also be used.
While deciding the level of questions to be asked in the Pre-Post/Post Training Tests, the
objectives of the training programme as pre-decided need to be considered and
accordingly decided.
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Annexure III
Programme Cost Structure
This stage involves calculating the programme costs incurred and outcomes of the
training programme. Programme cost can be divided into two heads i .e. Direct Cost and
Indirect Cost.
A) Programme Cost:
i) Direct costs are expenses an organization can easily specify for an object or
services acquired. Companies describe these as expenses where one gets what
one pays. An organization can have its own list of direct cost depending on the
resources available with them. A list specifying indirect costs incurred in a
training programme is given below:-
1. Facilitator Fees (if outsourced)
2. Boarding and Lodging Fees for Faculty
3. Faulty travel fees
4. Refreshment expenses for participants
5. Course Material
6. Stationary Items
7. Training Venue
8. Travelling expenses of participants
9. Loss of productivity or costs of backfilling positions during training
which is at least equal to CTC of employee
10. Cost of Evaluation Study (employee cost and time, travel time, etc.)
ii) Indirect cost involves costs which are spread out for usage for different
purposes and cannot be calculated directly for the product/service acquired. A
list specifying indirect costs incurred in a training programme is given below:-
1. Salaries of Training Department personnel involved
2. Infrastructure (training venue, audio-visual aids)
3. Communication elements, air conditioning, building up keep, etc.
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Return On Training Investment-ROTI : A Framework
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B) Training Benefits: To calculate the programme benefits, business impact created
due to training programme like reduction in manpower, enhanced customer
satisfaction, improved quality needs to be converted into the monetary value for
the same financial year. Depending upon the type of data involved in showing
business impact, following suggested strategies could be used to convert data into
monetary values:
a. Output data, like additional sales can be converted to profit contribution
b. Cost of quality measure, such as customer complaint, can be calculated and
reported as standard value. c. Employee time saved can be converted to wages and benefits, etc.
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Return On Training Investment-ROTI : A Framework