Organizations invest money, time, effort and manpower resources on training and development programs. Training has been viewed as a process of enhancing the knowledge, attitudes, skills and practices of organizational members to contribute to the productivity, quality and profitability of organizations.
Companies have been operating under the assumption that they are gaining positive results from training activities. However, In view of changes in the economy, some have started rethinking about their investments in training. There has to be Substantial justification to support decisions on training expenses.
At present, evaluation of training programs is one of the neglected functions in human resource development. Organizations should measure the benefits and relate these to the cost of training to show the rate of return on investments (ROI). There is a need to develop training metrics?
There are certainly problems with measuring the impact of training on productivity. Ideas, abilities, insights, motivations and aspirations are intangibles and difficult to quantify. Further, training results may be difficult to identify and Segregate from other aspects of management. The improvement of supervisory techniques, entry of an effective supervisor, Introduction of new equipment, change of physical layout, and revision of salary scale and additional compensation packages May altogether generate higher productivity and changed attitudes. These improvements in the human resource may be wrongly attributed to training unless the change factor is identified.
To some institutions, measures of customer satisfaction, improved attendance, and work climate may be sufficient to justify Training expenses. A popular method of determining the effect of training is cost benefit analysis which can reveal the Extent to which training activities result in observable and measurable behaviors.
There are a number of ways of comparing returns on investments and studies which show the positive results of training Programs. The nature of returns may vary among institutions. As one writer puts it, we should be reminded that salaries and Productivity is not the only variables that guide an organization’s investments in training.
By: Dr. Shailesh Thake