BBA 229 Training and Development Lecture 5 Training Evaluation Dr. S. Chan Department of Business Administration charmaine@chuhai.edu.hk http://home.chuhai.hk/~charmaine/

Training Evaluation (1 of 2) Training effectiveness – the benefits that the company and the trainees receive from training Training outcomes or criteria – that the trainer and the company use to evaluate training programs

Training Evaluation (2 of 2) Training evaluation – the process of collecting the outcomes needed to determine if training is effective Evaluation design – from whom, what, when, and how information needed for determining the effectiveness of the training program will be collected

Reasons for Evaluating Training (1 of 2) Companies are investing millions of dollars in training programs to help gain a competitive advantage Training investment is increasing because learning creates knowledge This differentiates between those companies and employees who are successful and those who are not

Reasons for Evaluating Training (2 of 2) 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

Training evaluation provides the data needed to demonstrate that training does provide benefits to the company.

Formative Evaluation The evaluation of training that takes place during program design and development Helps to ensure that: the training program is well organized and runs smoothly trainees learn and are satisfied with the program Provides information about how to make the program better

Pilot Testing The process of previewing the training program with potential trainees and managers or with other customers It can be used: as a “dress rehearsal” to show the program to managers, trainees, and customers for formative evaluation

Summative Evaluation Evaluation conducted to determine the extent to which trainees have changed as a result of participating in the training program May also measure the return on investment (ROI) that the company receives from the training program

Why Should A Training Program Be Evaluated? (1 of 2) 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

Why Should A Training Program Be Evaluated? (2 of 2) 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

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

Outcomes Used in Evaluating Training Programs: (1 of 4) Affective Outcomes Results Return on Investment Cognitive Skill-Based The following suggestions specify the types of changes in jobs that are most likely to lead to improvements in each of the five core dimensions. (1) Combine tasks - managers should put existing fractionalized tasks back together to form a new, larger module of work. This increases skill variety and task identify. (2) Create natural work units - managers should design tasks that form an identifiable and meaningful whole. This increases employee “ownership” of the work and encourages employees to view their work as meaningful and important rather than as irrelevant and boring. (3) Establish client relationships - the client is the user of the product or service that the employee works on. Whenever possible, managers should establish direct relationships between workers and their clients. This increases skill variety, autonomy, and feedback for the employee. (4) Expand jobs vertically - vertical expansion means giving employees responsibilities and controls that were formerly reserved for management. It partially closes the gap between the “doing” and “controlling” aspects of the job, and it increases employee autonomy. (5) Open feedback channels - by increasing feedback, employees not only learn how well they are performing their jobs but also whether their performances are improving, deteriorating, or remaining at a constant level. Ideally, employees should receive performance feedback directly as they do their jobs rather than from management on an occasional basis. 9

Outcomes Used in Evaluating Training Programs: (2 of 4) 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 assess the level of technical or motor skills include acquisition or learning of skills and use of skills on the job

Outcomes Used in Evaluating Training Programs: (3 of 4) Affective outcomes include attitudes and motivation reaction outcomes – trainees’ perceptions of the program including the facilities, trainers, and content Results determine the training program’s payoff for the company

Outcomes Used in Evaluating Training Programs: (4 of 4) Return on Investment (ROI) comparing the training’s monetary benefits with the cost of the training direct costs indirect costs benefits

Determining Whether Outcomes Are Good Good training outcomes need to be: Relevant Reliable Discriminative Practical

Good Outcomes: Relevance Criteria relevance – extent to which training programs are related to learned capabilities emphasized in the training program Criterion contamination效標混淆 – extent that training outcomes measure inappropriate capabilities or are affected by extraneous conditions=> 當我們收集效標資料進行效度考驗時，常發現效標資料會受到測驗分數的影響，這就是效標混淆的問題。例如：一位教師知道學生的性向測驗分數很低，他對這位學生效標分數的評定，因受那個測驗分數影響，也給很低；反之，便給很高。這種誤差來源，稱為效標混淆，類似心理學上所稱的月暈效應（halo effect）。為了避免此種誤差，最好的方法是使參與效標評定者，不知道受試者的測驗分數。

Good Outcomes: Relevance Criterion deficiency – failure to measure training outcomes that were emphasized in the training objectives

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

Training Program Objectives and Their Implications for Evaluation: Learning Transfer Outcomes Reactions: Did trainees like the program? Did the environment help learning? Was material meaningful? Skill-Based: Ratings by peers or managers based on observation of behavior Cognitive: Pencil-and-paper tests Affective: Trainees’ motivation or job attitudes Performance on a work sample Results: Did company benefit through sales, quality, productivity, reduced accidents, and complaints? Performance on work equipment

Factors That Influence the 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?

Conditions for choosing a rigorous evaluation design: (1 of 2) The evaluation results can be used to change the program The training program is ongoing and has the potential to affect many employees (and customers) The training program involves multiple classes and a large number of trainees Cost justification for training is based on numerical indicators

Conditions for choosing a rigorous evaluation design: (2 of 2) You or others have the expertise to design and evaluate the data collected from the evaluation study The cost of training creates a need to show that it works There is sufficient time for conducting an evaluation There is interest in measuring change from pre-training levels or in comparing two or more different programs

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