Evaluating HRD Programs

Description
Describing on the need to evaluate HRD programs and models and frameworks of evaluation.

Evaluating HRD Programs

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Effectiveness
• The degree to which a training (or other HRD program) achieves its intended purpose • Measures are relative to some starting point • Measures how well the desired goal is achieved
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Evaluation

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HRD Evaluation
Textbook definition: “The systematic collection of descriptive and judgmental information necessary to make effective training decisions related to the selection, adoption, value, and modification of various instructional activities.”
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In Other Words…
Are we training: • the right people • the right “stuff” • the right way • with the right materials • at the right time?

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Evaluation Needs
• Descriptive and judgmental information needed
– Objective and subjective data

• Information gathered according to a plan and in a desired format
• Gathered to provide decision making information
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Purposes of Evaluation
• Determine whether the program is meeting the intended objectives • Identify strengths and weaknesses • Determine cost-benefit ratio • Identify who benefited most or least • Determine future participants • Provide information for improving HRD programs
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Purposes of Evaluation – 2
• • • • Reinforce major points to be made Gather marketing information Determine if training program is appropriate Establish management database

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Evaluation Bottom Line
• Is HRD a revenue contributor or a revenue user? • Is HRD credible to line and upper-level managers? • Are benefits of HRD readily evident to all?

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How Often are HRD Evaluations Conducted?
• Not often enough!!! • Frequently, only end-of-course participant reactions are collected • Transfer to the workplace is evaluated less frequently

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Why HRD Evaluations are Rare
• Reluctance to having HRD programs evaluated • Evaluation needs expertise and resources
• Factors other than HRD cause performance improvements – e.g., – Economy – Equipment – Policies, etc.

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Need for HRD Evaluation
• Shows the value of HRD • Provides metrics for HRD efficiency • Demonstrates value-added approach for HRD • Demonstrates accountability for HRD activities • Everyone else has it… why not HRD?
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Make or Buy Evaluation
• “I bought it, therefore it is good.” • “Since it’s good, I don’t need to post-test.” • Who says it’s:
– Appropriate? – Effective? – Timely? – Transferable to the workplace?

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Evolution of Evaluation Efforts
1. Anecdotal approach – talk to other users 2. Try before buy – borrow and use samples 3. Analytical approach – match research data to training needs 4. Holistic approach – look at overall HRD process, as well as individual training

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Models and Frameworks of Evaluation
• The most popular is that of D. Kirkpatrick:
– Reaction – Learning – Job Behavior – Results

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Kirkpatrick’s Four Levels
• Reaction
– Focus on trainee’s reactions

• Learning
– Did they learn what they were supposed to?

• Job Behavior
– Was it used on job?

• Results
– Did it improve the organization’s effectiveness?

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Issues Concerning Kirkpatrick’s Framework
• Most organizations don’t evaluate at all four levels • Focuses only on post-training • Doesn’t treat inter-stage improvements • WHAT ARE YOUR THOUGHTS?

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Other Frameworks/Models
• CIPP: Context, Input, Process, Product (Galvin, 1983) • Brinkerhoff (1987):
– – – – – – Goal setting Program design Program implementation Immediate outcomes Usage outcomes Impacts and worth

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Other Frameworks/Models – 2
• Kraiger, Ford, & Salas (1993):
– Cognitive outcomes – Skill-based outcomes – Affective outcomes

• Holton (1996): Five Categories:
– – – – – Secondary Influences Motivation Elements Environmental Elements Outcomes Ability/Enabling Elements
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Other Frameworks/Models – 3
• Phillips (1996):
– Reaction and Planned Action – Learning – Applied Learning on the Job – Business Results – ROI

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A Suggested Framework – 1
• Reaction
– Did trainees like the training? – Did the training seem useful?

• Learning
– How much did they learn?

• Behavior
– What behavior change occurred?

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Suggested Framework – 2
• Results
– What were the tangible outcomes? – What was the return on investment – What was the contribution to the organization?
(ROI)?

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Data Collection for HRD Evaluation
Possible methods: • Interviews • Questionnaires • Direct observation • Written tests • Simulation/Performance tests • Archival performance information
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Interviews
Advantages: • Flexible • Opportunity for clarification • Depth possible • Personal contact Limitations: • High reactive effects • High cost • Face-to-face threat potential • Labor intensive • Trained observers needed

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Questionnaires
Advantages: • Low cost to administer • Honesty increased • Anonymity possible • Respondent sets the pace • Variety of options Limitations: • Possible inaccurate data • Response conditions not controlled • Respondents set varying paces • Uncontrolled return rate

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Direct Observation
Advantages: • Nonthreatening • Excellent way to measure behavior change Limitations: • Possibly disruptive • Reactive effects are possible • May be unreliable • Need trained observers

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Written Tests
Advantages: • Low purchase cost • Readily scored • Quickly processed • Easily administered • Wide sampling possible Limitations: • May be threatening • Possibly no relation to job performance • Measures only cognitive learning • Relies on norms • Concern for racial/ ethnic bias

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Simulation/Performance Tests
Advantages: • Reliable • Objective • Close relation to job performance • Includes cognitive, psychomotor and affective domains Limitations: • Time consuming • Simulations often difficult to create • High costs to development and use

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Archival Performance Data
Advantages: • Reliable • Objective • Job-based • Easy to review • Minimal reactive effects Limitations: • Criteria for keeping/ discarding records • Information system discrepancies • Indirect • Not always usable • Records prepared for other purposes

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Choosing Data Collection Methods
• Reliability
– Consistency of results, and freedom from collection method bias and error

• Validity
– Does the device measure what we want to measure?

• Practicality
– Does it make sense in terms of the resources used to get the data?
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Type of Data Used/Needed
• Individual performance • Systemwide performance • Economic

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Individual Performance Data
• Individual knowledge • Individual behaviors • Examples:
– Test scores – Performance quantity, quality, and timeliness – Attendance records – Attitudes

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Systemwide Performance Data
• • • • • Productivity Scrap/rework rates Customer satisfaction levels On-time performance levels Quality rates and improvement rates

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Economic Data
• • • • • • • Profits Product liability claims Avoidance of penalties Market share Competitive position Return on investment (ROI) Financial utility calculations

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Use of Self-Report Data
• Most common method • Pre-training and post-training data • Problems:
– Mono-method bias
• Desire to be consistent between tests

– Socially desirable responses – Response Shift Bias:
• Trainees adjust expectations to training

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Research Design
Specifies in advance: • the expected results of the study • the methods of data collection to be used

• how the data will be analyzed

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Research Design Issues
• Pretest and Posttest
– Shows trainee what training has accomplished – Helps eliminate pretest knowledge bias

• Control Group
– Compares performance of group with training against the performance of a similar group without training

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Recommended Research Design
• Pretest and posttest with control group • Whenever possible:
– Randomly assign individuals to the test group and the control group to minimize bias – Use “time-series” approach to data collection to verify performance improvement is due to training

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Ethical Issues Concerning Evaluation Research
• • • • • Confidentiality Informed consent Withholding training from control groups Use of deception Pressure to produce positive results

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Assessing the Impact of HRD
• Money is the language of business. • You MUST talk rupees , not HRD jargon. • No one (except maybe you) cares about “the effectiveness of training interventions as measured by and analysis of formal pretest, posttest control group data.”

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HRD Program Assessment
• HRD programs and training are investments • Line managers often see HR and HRD as costs – i.e., revenue users, not revenue producers • You must prove your worth to the organization – – Or you’ll have to find another organization…

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Two Basic Methods for Assessing Financial Impact
• Evaluation of training costs • Utility analysis

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Evaluation of Training Costs
• Cost-benefit analysis
– Compares cost of training to benefits gained such as attitudes, reduction in accidents, reduction in employee sick-days, etc.

• Cost-effectiveness analysis
– Focuses on increases in quality, reduction in scrap/rework, productivity, etc.

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Return on Investment
• Return on investment = Results/Costs

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Calculating Training Return On Investment
Results Operational Results Area Quality of panels How Measured % rejected Before Training 2% rejected 1,440 panels per day Housekeeping Visual inspection using 20-item checklist 10 defects (average) Results After Training 1.5% rejected 1,080 panels per day 2 defects (average) Differences (+ or –) .5% 360 panels 8 defects Expressed in $ $720 per day $172,800 per year Not measurable in $

Preventable accidents

Number of accidents

24 per year

16 per year

8 per year

Direct cost of each accident
Return Investment Operational Results Training Costs $220,800 $32,564 =

$144,000 per year

$96,000 per year

$48,000

$48,000 per year

ROI =

Total savings: $220,800.00

= =

6.8

SOURCE: From D. G. Robinson & J. Robinson (1989). Training for impact. Training and Development Journal, 43(8), 41. Printed by permission.

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Types of Training Costs
• • • • • Direct costs Indirect costs Development costs Overhead costs Compensation for participants

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Direct Costs
• Instructor
– Base pay – Fringe benefits – Travel and per diem

• • • •

Materials Classroom and audiovisual equipment Travel Food and refreshments
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Indirect Costs
• Training management • Clerical/Administrative • Postal/shipping, telephone, computers, etc. • Pre- and post-learning materials • Other overhead costs

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Development Costs
• Fee to purchase program • Costs to tailor program to organization • Instructor training costs

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Overhead Costs
• • • • General organization support Top management participation Utilities, facilities General and administrative costs, such as HRM

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Compensation for Participants
• Participants’ salary and benefits for time away from job • Travel, lodging, and per-diem costs

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Measuring Benefits
– Change in quality per unit measured in dollars – Reduction in scrap/rework measured in dollar cost of labor and materials – Reduction in preventable accidents measured in dollars – ROI = Benefits/Training costs

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Utility Analysis
• Uses a statistical approach to support claims of training effectiveness:
– N = Number of trainees – T = Length of time benefits are expected to last – dt = True performance difference resulting from training – SDy = Rs value of untrained job performance (in standard deviation units) – C = Cost of training

• ?U = (N)(T)(dt)(Sdy) – C
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Critical Information for Utility Analysis
• dt = difference in units between trained/untrained, divided by standard deviation in units produced by trained • SDy = standard deviation in rupees , or overall productivity of organization

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Ways to Improve HRD Assessment
• Walk the walk, talk the talk: MONEY

• Involve HRD in strategic planning
• Involve management in HRD planning and estimation efforts
– Gain mutual ownership

• Use credible and conservative estimates • Share credit for successes and blame for failures

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HRD Evaluation Steps
1. Analyze needs. 2. Determine explicit evaluation strategy. 3. Insist on specific and measurable training objectives. 4. Obtain participant reactions. 5. Develop criterion measures/instruments to measure results. 6. Plan and execute evaluation strategy.

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Summary
• Training results must be measured against costs • Training must contribute to the “bottom line” • HRD must justify itself repeatedly as a revenue enhancer, not a revenue waster

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