Measuring T&D 1
- 1. MEASUREMENT OF TRAINING AND DEVELOPMENT By group-3 executive batch 2009-10
- 2. 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. executive batch 2009-10
- 3. 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. executive batch 2009-10
- 4. 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? executive batch 2009-10
- 5. 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 executive batch 2009-10
- 6. 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. executive batch 2009-10
- 7. 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. executive batch 2009-10
- 8. 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 executive batch 2009-10
- 9. 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. executive batch 2009-10
- 10. 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. executive batch 2009-10
- 11. 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. executive batch 2009-10
- 12. 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 executive batch 2009-10
- 13. 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? executive batch 2009-10
- 14. INPUT ANALYSIS It is a systemic method of identifying and comparing the many costs involved in two or more training programs. executive batch 2009-10 Inputs, in Rupees people material equipment facilities total Diagnosis Design Development Delivery Evaluation Total
- 15. 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. executive batch 2009-10
- 16. 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. executive batch 2009-10
- 17. 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. executive batch 2009-10
- 18. 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 executive batch 2009-10
- 19. 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. executive batch 2009-10
- 20. 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 executive batch 2009-10
- 21. 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 executive batch 2009-10
- 22. 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 executive batch 2009-10
- 23. 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 executive batch 2009-10
- 24. 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 executive batch 2009-10
- 25. 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 executive batch 2009-10
- 26. OD OPPORTUNITIES Benchmarking, Reengineering and other forms of process improvement can use OD skills WHY 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 executive batch 2009-10
- 27. MEASURE OF EFFECTIVENESS FOR ORGANIZATION DEVELOPMENT Six Factors: Short Term Productivity Quality service Intermediate Responsiveness Development Long Term Survival executive batch 2009-10
- 28. ENTERPRISE FACTOR Productivity Quality Service Responsiveness Development Survival Subsystem Productivity Quality Service Change measure Scorecarding Value Chain executive batch 2009-10
- 29. Thank You executive batch 2009-10