TRAINING AND DEVELOPMENT

TOPIC
EVALUATION METHODS, CONCEPTS OF RETURN ON INVESTMENTS AND COST BENEFITS

TRAINING AND DEVELOPMENT

Training and development refers to the imparting of specific skills, abilities and knowledge to an employee. A formal definition of training & development is it is any attempt to improve current or future employee performance by increasing an employee's ability to perform through learning, usually by changing the employees attitude or increasing his or her skills and knowledge.

EVALUATION
Evaluation is a systematic determination of a subject's merit, worth and significance, using criteria governed by a set of standards. It can assist an

organization to assess any aim, realizable concept or

proposal, or any alternative, to help in decisionmaking; or to ascertain the degree of achievement

E V A L U A T I O N

s t e p s

METHODS OF EVALUATION

FOUR LEVELS OF TRAINING EVALUATION

Level 1 EvaluationReaction Level 2 EvaluationLearning

Level 3 EvaluationBehavior
Level 4 EvaluationResults

RETURN ON INVESTMENT
A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.

ROI IS USED TO
Quantify the effectiveness of training. Manage the training budget. Provide evidence to management and other

stakeholders.
Build trust and respect for management and employee. Identify areas for improvement. Provide data requested by senior management.

ROI MODEL

CALCULATING THE ROI

TWO BASIC CALCULATIONS ARE REQUIRED TO COMPUTE THE RETURN ON INVESTMENT

1.Benefit/Cost ratio (BCR)

2.Return on investment (ROI)

COST BENEFITS
Time saving Better productivity Improved quality of output Better personnel performance (attributable to training)