Unit 9 notes_updated (1)
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The document discusses training management, including determining the type of learning environment, identifying potential locations, conducting site surveys, sourcing equipment, comparing costs and availability of locations, preparing a training budget, and conducting a cost-benefit analysis. Key points include factors that influence the learning environment choice, components of a site survey, including equipment needs in the budget, and estimating both costs and benefits of training.
Unit 9 notes_updated (1)
- 1. KMS2014: Design & Management of Tr aining Pr og r ams Unit 9: Training Management
- 2. Objectives: At the end of this unit, you will be able to: • Identify the various type of learning environment where training program can be conducted • Identify the location where the training program will be conducted • Carry out a site survey to make sure the training location is suitable to your needs • Source equipments that are needed to run the training program • Compare the costs, suitability and availability of a training location • Identify budget items and the cost of those items • Revise the training budget
- 3. Introduction • The next decisions on T&D that you have to make are: • Where to run the program? • What is the best learning situation? • Where you are going to obtain the equipment and materials? • What will be the budget like?
- 4. Determine the Type of Learning Environment • Factors that affect your choice of learning environment: • Costs • The facilities you need - off-site or on-site • Type of instruction • Whether students need to be separated 1. The choices of learning environment can cover: a. the home b. the workplace c. open learning centres d. meeting rooms e. dedicated training rooms f. hotels g. sport centres and social clubs, and h. residential training centres
- 5. 2. Identify Potential Location • To identify a number of potential training locations • May already have a number in mind • Look at the telephone directory or yellow pages • May already have your own training centres • Ask some colleagues or friends 3. Carry Out Site Survey • To make sure the training location is suitable • To know the place well • Talk to the people in charge and explore the buildings • Use the checklist: – Location – Parking
- 6. - Reception - Contact - Delivery arrangement - Staff - Access to training room - Size and shape of training room • Size: allow 80 cm of desk space per person • Shape: an ideal shape for a training room is a square • Distance: try to limit the distance between the screen or flip chart and the student - Heating and ventilation
- 7. – Lighting – Power sockets • Have a maximum of four power sockets available at the front of the room – Light switches – Acoustics – Toilets – Food – Meal and break arrangements – Bedrooms – Leisure facilities – Security
- 8. 4. Source Equipment • Hand over a precise specification of your requirements • Training on your own premises - buying the equipment • Expensive equipments - more economical to hire 5. Compare Costs, Suitability, & Availability • Results of the site survey will allow you to compare the suitability of the alternative training venues • Understand what the rate includes • The golden rule is to ask for a written summary of what is included in the price
- 9. 6. Preparation of Budget • “How much will the training cost?” • Difficult in decide what should be included in the costs • The golden rule is to be consistent and make your assumptions clear • One of the many ways of preparing a budget: – Identify budget items – Identify cost of budget items – Negotiate and revise budget
- 10. a. Identify Budget Items • Various items that can be included in a training budget: • Cost of external courses; • Purchase and hire of equipment, books, and videos; • Production of training materials; • Training staff wages/salaries; • Training staff overheads; • Hire of training venues; • Trainee accommodation costs; • Student travel costs, and; • Trainers wages/salaries/overheads • The rule of thumb is to include everything that will be charged to the training department’s budget during the financial year
- 11. b. Identify Cost of Budget Items • How much does a trainer cost? • Cost of the wages - plus other costs and overheads • Here is an example of the cost of items: Name of Program: Quality Training Type of training Non-residential Duration (days) 3 Number of trainee 12 Number of trainer 1 Type of trainer own Location off-site
- 12. • Additional rooms 1 • Trainer cost/day RM300 • Materials/trainee RM40 • Seminar room hire RM50 • Accommodation/trainee RM49 • Equipment hire/day RM50 ____________________________________ • Total Cost RM3591 • Cost/Trainee RM299 • Cost/Trainee/Day RM100
- 13. c. Negotiate and Revise Budget • The figure is always larger than your allocated budget • Need to negotiate for a larger budget • The use of “benchmarking” • Benchmarking is a process by which you compare yourself with the best competitors with the aim of exceeding or surpassing their performance in all aspects • The most common difference in a training budget is the inclusion or exclusion of trainees’ wages • As a rule of thumb, inclusion of wages doubles the cost of training
- 14. 7. Cost-Benefit Analysis • No easy formula to determine cost • Must have a thorough understanding of: • Everything that is going on in training • The cost and financial elements • The main rule - must understand the physical and organizational processes and activities a. Costs • There are 3 major category of costs for training: – Establishment costs – Marginal expenditure – Interference costs
- 15. 1. Establishment Costs • Costs of training organization within the company Comprises the following elements: – Salaries, insurance, etc – Cost of the space occupied and services used – Support costs allocated to the training function 2. Marginal Expenditure • Additional money which has to be spent • The more typical instances are: – External course fees – Outside lecturers’ fees and expenses
- 16. – Books, materials, equipment hire – External accommodation costs – Personal expenditure 3. Interference Costs • Refers to when a person gives time and effort to training, and thus ceases to be occupied in his/her main task - there is interference with the output with which he is primarily concerned • Interference cost is not that person’s wage or salary over the time of involvement in training
- 17. b. Benefits • Benefits from training are varied, which may include: - Improvement in performance - Machine runs efficiently - Saving in maintenance cost - Reduction in labour wastage - Sales increase - System development • Benefits from training is not easily measured
- 18. c. Cost/Benefit - Some Conclusion Can conclude with a few points: 1. Estimates versus actual • Taking estimate more seriously than the measurement of actual cost and actual benefit 2. Short, medium and long term benefits • Benefits has to be measured not only in the short term, but also medium and long term • Problem - When exactly should measurement be done? • Short, medium and long - Be sufficiently well defined
- 19. 3. The hidden benefit • Learning experience produces some interest and personal satisfaction • Training also helps the person to grow and develop in knowledge and outlook - better equipped • Personal growth and development is more difficult to analyse and evaluate 4. Approximation methods • Do an approximation of benefits through guessing when difficulties of setting up the correct model
- 20. • Possible to guess at the order of savings and benefits and at the probability of these occurring 5. The cost and benefit of the training function • Training costs should be considered in light of: – The total value of processes and products – The total value of plant, equipment, etc. – The extent to which the efficient management and handling of the above (1 & 2) depends on human skill, knowledge and motivation
- 21. • Value of 1 & 2 above would mean that a higher training cost may be justifiable • Assessment of benefits contains training’s contribution to the financial well-being of the company • Also include the achievements in human development and in raising the quality of industrial life