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Training Evaluation
Chapter 6
6th Edition
Raymond A. Noe
McGraw-Hill/Irwin

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Objectives
• Explain why evaluation is important
• Identify and choose outcomes to evaluate a training

program
• Discuss the process used to plan and implement a
good training evaluation
• Discuss the strengths and weaknesses of different
evaluation designs

6-2
Objectives
 Choose the appropriate evaluation design based on

the characteristics of the company and the
importance and purpose of the training
 Conduct a cost-benefit analysis for a training
program
 Explain the role of workforce analytics and
dashboards in determining the value of training
practices

6-3
Introduction
 Training effectiveness: Benefits that the company

and the trainees receive from training
 Training outcomes or criteria: Measures that the
trainer and the company use to evaluate training
programs

6-4
Introduction
 Training evaluation: The process of collecting the

outcomes needed to determine if training is effective
 Evaluation design: Collection of information,
including whom, what, when, and how, for
determining the effectiveness of the training program

6-5
Reasons for Evaluating Training
 Companies make large investments in training and

education and view them as a strategy to be
successful; they expect the outcomes of training to
be measurable
 Training evaluation provides the data needed to
demonstrate that training does provide benefits to
the company
 It involves formative and summative evaluation

6-6
Formative Evaluation
 Takes place during program design and

development
 It helps ensure that the training program is well

organized and runs smoothly
 Trainees learn and are satisfied with the program
 It provides information about how to make the

program better; it involves collecting qualitative data
about the program
 Pilot testing: Process of previewing the training
program with potential trainees and managers or
with other customers
6-7
Summative Evaluation
 Determines the extent to which trainees have

changed as a result of participating in the training
program
 It may include measuring the monetary benefits that

the company receives from the program (ROI)
 It involves collecting quantitative data

6-8
Summative Evaluation
 A training program should be evaluated:
 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

6-9
Summative Evaluation
 To gather data to assist in marketing training programs
 To determine the financial benefits and costs of the

program
 To compare the costs and benefits of:
 Training versus non-training investments
 Different training programs to choose the best program

6-10
Figure 6.1 - The Evaluation
Process

6-11
Table 6.1 - Evaluation Outcomes

6-12
Table 6.1 - Evaluation Outcomes

6-13
Outcomes Used in the Evaluation of
Training Programs
 Reaction outcomes
 It is collected at the program’s conclusion

 Cognitive outcomes
 Determine the degree to which trainees are familiar

with the principles, techniques, and processes
emphasized in the training program
 Skill-based outcomes
 The extent to which trainees have learned skills can be

evaluated by observing their performance in work
samples such as simulators

6-14
Outcomes Used in the Evaluation of
Training Programs
 Affective outcomes
 If trainees were asked about their attitudes on a survey,

that would be considered a learning measure
 Results: Used to determine the training program’s

payoff for the company

6-15
Outcomes Used in the Evaluation of
Training Programs
 Return on investment
 Direct costs: Salaries and benefits for all employees

involved in training; program material and supplies;
equipment or classroom rentals or purchases; and
travel costs
 Indirect costs: Not related directly to the design,
development, or delivery of the training program
 Benefits: Value that the company gains from the
training program

6-16
Outcomes Used in the Evaluation of
Training Programs
 Training Quality Index (TQI): Computer application

that collects data about training department
performance, productivity, budget, and courses, and
allows detailed analysis of this data
 Quality of training is included in the effectiveness

category

6-17
Determining Whether Outcomes are
Appropriate
Criteria
Relevance

The extent to which training outcomes are related to the learned
capabilities emphasized in the training program.
Criterion contamination - the extent that training outcomes measure
inappropriate capabilities or are affected by extraneous conditions.
Criterion deficiency - the failure to measure training outcomes that
were emphasized in the training objectives.

Reliability

The degree to which outcomes can be measured consistently over
time.

Discrimination

The degree to which trainees’ performance on the outcome actually
reflects true differences in performance.

Practicality

The ease with which the outcome measures can be collected.

6-18
Figure 6.2 - Criterion Deficiency,
Relevance, and Contamination

Outcomes
Measured in
Evaluation

Contamination

Outcomes
Identified by
Outcomes Needs Assessment
and Included
Related to
Training
in Training
Objectives
Objectives

Relevance

Deficiency

6-19
Evaluation Practices
 It is important to recognize the limitations of

choosing to measure only reaction and cognitive
outcomes
 To ensure an adequate training evaluation, companies

must collect outcome measures related to both learning
and transfer

6-20
Percentage of Companies Using Outcome

Figure 6.3 - Training Evaluation
Practices

Outcomes

6-21
Figure 6.4 - Training Program
Objectives and Their Implications for
Evaluation

6-22
Evaluation Designs
 Threats to validity: Factors that will lead an

evaluator to question either the:
 Internal validity: The believability of the study results
 External validity: The extent to which the evaluation

results are generalizable to other groups of trainees
and situations

6-23
Table 6.6 - Threats to Validity

6-24
Methods to Control for Threats to
Validity
 Pretests and post-tests: Comparison of the post-

training and pretraining measures can indicate the
degree to which trainees have changed as a result of
training
 Use of comparison groups: Group of employees who
participate in the evaluation study but do not attend
the training program
 Hawthorne effect

6-25
Methods to Control for Threats to
Validity
 Random assignment: Assigning employees to the

training or comparison group on the basis of chance
alone
 It is often impractical
 Analysis of covariance

6-26
Types of Evaluation Designs
 Post-test only: Only post-training outcomes are

collected
 Appropriate when trainees can be expected to have

similar levels of knowledge, behavior, or results
outcomes prior to training
 Pretest/post-test: Pretraining and post-training

outcome measures are collected
 Used by companies that want to evaluate a training

program but are uncomfortable with excluding certain
employees

6-27
Table 6.7 Comparison of Evaluation
Designs

6-28
Types of Evaluation Designs
 Pretest/post-test with comparison group: Includes

trainees and a comparison group
 Differences between each of the training conditions

and the comparison group are analyzed determining
whether differences between the groups were caused
by training

6-29
Types of Evaluation Designs
 Time series: Training outcomes are collected at

periodic intervals both before and after training
 It allows an analysis of the stability of training outcomes

over time
 Reversal: Time period in which participants no longer
receive the training intervention
 Solomon four-group: Combines the pretest/post-

test comparison group and the post-test-only control
group design
 This design controls for most threats to internal and

external validity
6-30
Table 6.10 - Factors that Influence the
Type of Evaluation Design

6-31
Determining Return on Investment
 Cost-benefit analysis: Process of determining the

economic benefits of a training program using
accounting methods that look at training costs and
benefits
 ROI should be limited only to certain training
programs, because it can be costly
 Determining costs
 Methods for comparing costs of alternative training

programs include the resource requirements model and
accounting

6-32
Determining Return on Investment
 Determining benefits – Methods include:
 Technical, academic, and practitioner literature
 Pilot training programs and observance of successful job

performers
 Observance of successful job performers
 Estimates by trainees and their managers
 To calculate ROI
 Identify outcomes
 Place a value on the outcomes
 Determine the change in performance after eliminating other





potential influences on training results
Obtain an annual amount of benefits
Determine the training costs
Calculate the total benefits by subtracting the training costs
from benefits (operational results)
Calculate the ROI by dividing operational results by costs
 The ROI gives an estimate of the dollar return expected from each

dollar invested in training
6-33
Table
6.11Determining
Costs for a
Cost Benefit
Analysis

6-34
Determining Return on Investment
 Utility analysis: Cost-benefit analysis method that

involves assessing the dollar value of training based
on:
 Estimates of the difference in job performance between

trained and untrained employees
 The number of individuals trained
 The length of time a training program is expected to
influence performance
 The variability in job performance in the untrained
group of employees

6-35
Practical Considerations in Determining
ROI
 Training programs best suited for ROI analysis:
 Have clearly identified outcomes

 Are not one-time events
 Are highly visible in the company
 Are strategically focused
 Have effects that can be isolated

6-36
Practical Considerations in Determining
ROI
 Showing the link between training and market share

gain or other higher-level strategic business
outcomes can be very problematic
 Outcomes can be influenced by too many other factors

not directly related to training
 Business units may not be collecting the data needed
to identify the ROI of training programs
 Measurement of training can be expensive

6-37
Table 6.13-Examples of ROI’s

6-38
Success Cases and Return on
Expectations
 Return on expectations (ROE): Process through

which evaluation demonstrates to key business
stakeholders that their expectations about training
have been satisfied
 Success cases: Concrete examples of the impact of
training that show how learning has led to results
that the company finds worthwhile

6-39
Measuring Human Capital and Training
Activity
 American Society of Training and Development

(ASTD): Provides information about training hours
and delivery methods that companies can use to
benchmark
 Workforce analytics: Practice of using quantitative
methods and scientific methods to analyze data from
human resource databases and other databases to
influence important company metrics

6-40
Measuring Human Capital and Training
Activity
 Dashboards: Computer interface designed to

receive and analyze the data from departments
within the company to provide information to
managers and other decision makers
 Useful because they can provide a visual display using

charts of the relationship between learning activities
and business performance data

6-41
Table 6.14 - Training Metrics

6-42

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Training Evaluation Designs and ROI

  • 1. Training Evaluation Chapter 6 6th Edition Raymond A. Noe McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. Objectives • Explain why evaluation is important • Identify and choose outcomes to evaluate a training program • Discuss the process used to plan and implement a good training evaluation • Discuss the strengths and weaknesses of different evaluation designs 6-2
  • 3. Objectives  Choose the appropriate evaluation design based on the characteristics of the company and the importance and purpose of the training  Conduct a cost-benefit analysis for a training program  Explain the role of workforce analytics and dashboards in determining the value of training practices 6-3
  • 4. Introduction  Training effectiveness: Benefits that the company and the trainees receive from training  Training outcomes or criteria: Measures that the trainer and the company use to evaluate training programs 6-4
  • 5. Introduction  Training evaluation: The process of collecting the outcomes needed to determine if training is effective  Evaluation design: Collection of information, including whom, what, when, and how, for determining the effectiveness of the training program 6-5
  • 6. Reasons for Evaluating Training  Companies make large investments in training and education and view them as a strategy to be successful; they expect the outcomes of training to be measurable  Training evaluation provides the data needed to demonstrate that training does provide benefits to the company  It involves formative and summative evaluation 6-6
  • 7. Formative Evaluation  Takes place during program design and development  It helps ensure that the training program is well organized and runs smoothly  Trainees learn and are satisfied with the program  It provides information about how to make the program better; it involves collecting qualitative data about the program  Pilot testing: Process of previewing the training program with potential trainees and managers or with other customers 6-7
  • 8. Summative Evaluation  Determines the extent to which trainees have changed as a result of participating in the training program  It may include measuring the monetary benefits that the company receives from the program (ROI)  It involves collecting quantitative data 6-8
  • 9. Summative Evaluation  A training program should be evaluated:  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 6-9
  • 10. Summative Evaluation  To gather data to assist in marketing training programs  To determine the financial benefits and costs of the program  To compare the costs and benefits of:  Training versus non-training investments  Different training programs to choose the best program 6-10
  • 11. Figure 6.1 - The Evaluation Process 6-11
  • 12. Table 6.1 - Evaluation Outcomes 6-12
  • 13. Table 6.1 - Evaluation Outcomes 6-13
  • 14. Outcomes Used in the Evaluation of Training Programs  Reaction outcomes  It is collected at the program’s conclusion  Cognitive outcomes  Determine the degree to which trainees are familiar with the principles, techniques, and processes emphasized in the training program  Skill-based outcomes  The extent to which trainees have learned skills can be evaluated by observing their performance in work samples such as simulators 6-14
  • 15. Outcomes Used in the Evaluation of Training Programs  Affective outcomes  If trainees were asked about their attitudes on a survey, that would be considered a learning measure  Results: Used to determine the training program’s payoff for the company 6-15
  • 16. Outcomes Used in the Evaluation of Training Programs  Return on investment  Direct costs: Salaries and benefits for all employees involved in training; program material and supplies; equipment or classroom rentals or purchases; and travel costs  Indirect costs: Not related directly to the design, development, or delivery of the training program  Benefits: Value that the company gains from the training program 6-16
  • 17. Outcomes Used in the Evaluation of Training Programs  Training Quality Index (TQI): Computer application that collects data about training department performance, productivity, budget, and courses, and allows detailed analysis of this data  Quality of training is included in the effectiveness category 6-17
  • 18. Determining Whether Outcomes are Appropriate Criteria Relevance The extent to which training outcomes are related to the learned capabilities emphasized in the training program. Criterion contamination - the extent that training outcomes measure inappropriate capabilities or are affected by extraneous conditions. Criterion deficiency - the failure to measure training outcomes that were emphasized in the training objectives. Reliability The degree to which outcomes can be measured consistently over time. Discrimination The degree to which trainees’ performance on the outcome actually reflects true differences in performance. Practicality The ease with which the outcome measures can be collected. 6-18
  • 19. Figure 6.2 - Criterion Deficiency, Relevance, and Contamination Outcomes Measured in Evaluation Contamination Outcomes Identified by Outcomes Needs Assessment and Included Related to Training in Training Objectives Objectives Relevance Deficiency 6-19
  • 20. Evaluation Practices  It is important to recognize the limitations of choosing to measure only reaction and cognitive outcomes  To ensure an adequate training evaluation, companies must collect outcome measures related to both learning and transfer 6-20
  • 21. Percentage of Companies Using Outcome Figure 6.3 - Training Evaluation Practices Outcomes 6-21
  • 22. Figure 6.4 - Training Program Objectives and Their Implications for Evaluation 6-22
  • 23. Evaluation Designs  Threats to validity: Factors that will lead an evaluator to question either the:  Internal validity: The believability of the study results  External validity: The extent to which the evaluation results are generalizable to other groups of trainees and situations 6-23
  • 24. Table 6.6 - Threats to Validity 6-24
  • 25. Methods to Control for Threats to Validity  Pretests and post-tests: Comparison of the post- training and pretraining measures can indicate the degree to which trainees have changed as a result of training  Use of comparison groups: Group of employees who participate in the evaluation study but do not attend the training program  Hawthorne effect 6-25
  • 26. Methods to Control for Threats to Validity  Random assignment: Assigning employees to the training or comparison group on the basis of chance alone  It is often impractical  Analysis of covariance 6-26
  • 27. Types of Evaluation Designs  Post-test only: Only post-training outcomes are collected  Appropriate when trainees can be expected to have similar levels of knowledge, behavior, or results outcomes prior to training  Pretest/post-test: Pretraining and post-training outcome measures are collected  Used by companies that want to evaluate a training program but are uncomfortable with excluding certain employees 6-27
  • 28. Table 6.7 Comparison of Evaluation Designs 6-28
  • 29. Types of Evaluation Designs  Pretest/post-test with comparison group: Includes trainees and a comparison group  Differences between each of the training conditions and the comparison group are analyzed determining whether differences between the groups were caused by training 6-29
  • 30. Types of Evaluation Designs  Time series: Training outcomes are collected at periodic intervals both before and after training  It allows an analysis of the stability of training outcomes over time  Reversal: Time period in which participants no longer receive the training intervention  Solomon four-group: Combines the pretest/post- test comparison group and the post-test-only control group design  This design controls for most threats to internal and external validity 6-30
  • 31. Table 6.10 - Factors that Influence the Type of Evaluation Design 6-31
  • 32. Determining Return on Investment  Cost-benefit analysis: Process of determining the economic benefits of a training program using accounting methods that look at training costs and benefits  ROI should be limited only to certain training programs, because it can be costly  Determining costs  Methods for comparing costs of alternative training programs include the resource requirements model and accounting 6-32
  • 33. Determining Return on Investment  Determining benefits – Methods include:  Technical, academic, and practitioner literature  Pilot training programs and observance of successful job performers  Observance of successful job performers  Estimates by trainees and their managers  To calculate ROI  Identify outcomes  Place a value on the outcomes  Determine the change in performance after eliminating other     potential influences on training results Obtain an annual amount of benefits Determine the training costs Calculate the total benefits by subtracting the training costs from benefits (operational results) Calculate the ROI by dividing operational results by costs  The ROI gives an estimate of the dollar return expected from each dollar invested in training 6-33
  • 34. Table 6.11Determining Costs for a Cost Benefit Analysis 6-34
  • 35. Determining Return on Investment  Utility analysis: Cost-benefit analysis method that involves assessing the dollar value of training based on:  Estimates of the difference in job performance between trained and untrained employees  The number of individuals trained  The length of time a training program is expected to influence performance  The variability in job performance in the untrained group of employees 6-35
  • 36. Practical Considerations in Determining ROI  Training programs best suited for ROI analysis:  Have clearly identified outcomes  Are not one-time events  Are highly visible in the company  Are strategically focused  Have effects that can be isolated 6-36
  • 37. Practical Considerations in Determining ROI  Showing the link between training and market share gain or other higher-level strategic business outcomes can be very problematic  Outcomes can be influenced by too many other factors not directly related to training  Business units may not be collecting the data needed to identify the ROI of training programs  Measurement of training can be expensive 6-37
  • 38. Table 6.13-Examples of ROI’s 6-38
  • 39. Success Cases and Return on Expectations  Return on expectations (ROE): Process through which evaluation demonstrates to key business stakeholders that their expectations about training have been satisfied  Success cases: Concrete examples of the impact of training that show how learning has led to results that the company finds worthwhile 6-39
  • 40. Measuring Human Capital and Training Activity  American Society of Training and Development (ASTD): Provides information about training hours and delivery methods that companies can use to benchmark  Workforce analytics: Practice of using quantitative methods and scientific methods to analyze data from human resource databases and other databases to influence important company metrics 6-40
  • 41. Measuring Human Capital and Training Activity  Dashboards: Computer interface designed to receive and analyze the data from departments within the company to provide information to managers and other decision makers  Useful because they can provide a visual display using charts of the relationship between learning activities and business performance data 6-41
  • 42. Table 6.14 - Training Metrics 6-42