how to measure training effectiveness?
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20-Oct-2014 -
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Transcript of how to measure training effectiveness?
Summer Internship Programme
Organization- ACC Limited, Sindri Cement Works
Project Topic- Training & Development
Industry mentor – Miss Pallavi Das
Presented By : - Ekta kumari PGDM B/14
Industry Overview
High demand- increase in industry, real estate, construction and Infrastructure.
Second position- Globally
139 – Large cement plants and
365 - Mini cement plants in India
42 - Major Player
Export- Cement clinker and by products of cement
Problem Statement- Low demand & fall in price
Rationale of the problem- Hike in Diesel price
Organization Details
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ACC- Associated Cement Company Parent company- Holcim Group.
Chairman- Mr. N. S. Sekhsaria, CEO- Mr. Kuldip K Kaura
Established in 1936, 17 modern cement factories, 40 Ready mix concrete plants,21 sales offices & 9,000 dealers.
India’s foremost manufacturer of Cement, blended cement, bulk cement , Portland cement and concrete mix.
ACC has a unique track record of innovative research, product development and specialized consultancy services.
Environment protection- corporate commitment
Training process at ACC Sindri Cement Works
Project Details
Objective - To measure training effectiveness .
Methodology- Secondary data is obtained by the medium of internet, company websites, journals, articles and magazines.
Scope of study:-
Opportunity to explore knowledge in the field of human resource.
exposure to interact with the high profile managers of the ACC Ltd.
Limitation of Study:-
Measuring training effectiveness is subjective in nature so it is very difficult to measure return on investment from training program.
Donald Kirkpatrick's Four-Level Training Evaluation Model
Proposed training evaluation model
Is ROI greater than 100 %
Do not sendemployee to thetraining program
Nominateemployee for thetraining program
Example of ROI Calculator
Section Line Sub section Explanation Calculator
1.Task compensation Line 1 Current total salary (Basic) Includes total benefits less 500000
(current value) statutory deductions
Line 2 % of employee benefit To be filled by potential 35%
Candidate
Line 3 Importance of task 1=critical, 0.5=normal, 0.7
0.1=minimal
Line 4 Weighted training related task Line 1 x Line 2 x Line 3 122500
Compensation
2.Effectiveness Line 5 Current effectiveness (%) Based on feedback from 40%
supervisor, appraisal forms
and assessment centers
Line 6 Desired level of effectiveness From job description 60%
(%)
Line 7 Desired increase in (Line 6 - Line 5)/Line 5 50%
effectiveness (%)
3.Task compensation Line 8 Value added to task Line 7 x Line 4 61250
(future value) compensation (post-training)
Line 9 Value of new task Line 8 + Line 4 183750
Compensation
4.Cost of training Line 10 Per diem cost of training Monetary value (Rs.) 10000
Line 11 Number of days of training Use fraction if less than a day 2
Line 12 Total training cost Line 10 x Line 11 20000
Line 13 Training cost as a percentage Line 12/ Line 1 4.00%
of current total salary
5.Potential ROI Line 14 Net potential ROI Line 8 – Line 12 41250
Line 15 Net potential ROI (%) (Line 8 – Line 12)/ Line 12 206%
Key Learnings
While doing this project I learned about all important aspect of organization’s training and development. It helped me to understand how to measure training effectiveness and how to determine return on investment on training. This quantative model helps to determine training budget and expected training cost. This model helps in decision making whether to send an employee in training or not. An effective training program leads to organizational growth & profit.
Recommendations
Knowing return on investment of training is very essential part of the organization but ACC sindri cement works have not taken any initiative till now to measure effectiveness of training.
So, that I made an effort and recommended ROI calculator to ACC Ltd.
Thank You