Author(s): Vilmantė Kumpikaitė / Language(s):
Issue: 5 (55)/2007
This paper draws on prior research on human resource
training evaluation, including its models, criteria,
tangible and intangible benefits of training and return on
investment.
Human resource management (HRM) is the recognition
of the importance of an organization’s workforce as
vital human resources contributing to the goals of the
organization, and the utilization of several functions and
activities to ensure that they are used effectively and
fairly for the benefit of the individual, the organization,
and society. Today human resource management has a
unique and timely opportunity to improve productivity.
Increasingly, however, improving productivity does not
mean just increasing output. In addition, evaluation ensures
that programs are accountable and are meeting the
particular needs of employees in a cost-effective manner.
This is especially important today, as organizations attempt
to cut costs and improve quality in their firms.
Without evaluation, it is very difficult to show that training
was the reason for any improvements. Human resource
training may safeguard productivity as well as
supporting it, insulating firms from skills shortages by
preparing employees for current and future jobs.
Evaluation involves identifying the appropriate outcomes
to measure. The outcomes used in evaluating
training programs include trainees’ satisfaction with the
training program, learning of knowledge or skills, use of
knowledge and skills on the job, and results such as sales,
productivity, or accident prevention. Evaluation may also
involve comparing the costs of training to the benefits
received (return on investment). Outcomes used in training
evaluation help to determine the degree to which the
program resulted in both learning and transfer of training.
Training evaluation provides a way to understand the
investments that training produces and provides information
needed to improve training. If the company receives
an inadequate return on ist investment in training, the
company will likely reduce its investment in training or
look for training providers outside the company who can
provide training experiences that improve performance,
productivity, customer satisfaction, or whatever other
outcomes the company is interested in achieving. Training
evaluation provides the data needed to demonstrate
that training does provide benefits to the company.
This paper is organized as follows. First the purpose
of human resource training evaluation is shown.
Next, analysis of human resource training evaluation
models is provided. Third, human resource training’s
evaluation process is shown. Fourth and fifth, evaluating of human resource training costs and returns of investments
are discussed. Sixth hard and soft data in training
evaluation is described. Later, costs of training in
Lithuanian companies are demonstrated. Finally, conclusions
of this paper are given.
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