Effectiveness of Training and Development in Banking and Other Sector With Special Reffernce To Mumbai
Effectiveness of Training and Development in Banking and Other Sector With Special Reffernce To Mumbai
SUBMITTED BY
SUSHMA MANOHAR KANCHAN
MPMIR (2010-2011)
SNDT University
Santacruz (w)
Mumbai-400049
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CERTIFICATE
This is to certify the work in the project has been carried out by Sushma Kanchan and
has been submitted to the university in partial fulfilment of the requirement for the Masters
in Personnel Management and Industrial Relations.
Mumbai
March 2011
___________ ___________
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ACKNOWLEDGEMENT
I would like to thank the faculty of Jankidevi Bajaj Institute of Management Studies for
giving me this opportunity to explore into an area of my interest and their full cooperation
during the different stages of my project.
I would like to thank Prof. Urvashi, Faculty JDBIMS, for guiding me and enriching my project
through her valuable outputs from her reservoirs experience. She was extremely helpful in
ensuring that my project was progressed on the right track.
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CONTENTS
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
RESEARCH METHODOLOGY
INTRODUCTION
LITERATURE REVIEW
DATA ANALYSIS
RESULTS
CONCLUSION
BIBLIOGRAPHY
APPENDIX 1
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EXCUTIVE SUMMARY
Training managers are always hard-pressed to prove the effectiveness of the training
programs they conduct. Organizations are under pressure to justify various expenses. The
training budget is, not exempted from this purview. There are number of questions raised
on the value derived from training programs – both directly and indirectly. Business heads
and training managers are under pressure to prove the effectiveness of training.
The major finding of the study was that most of the employees feel that training impacted
to them is very useful in their development knowledge, skill and abilities. No person can
complete a task successfully until they trained to do the task effectively and efficiently. This
can be done through proper training.
The right training program must be implemented correctly in order to make the
management training and development program a success. Proper planning of the entire
training and development programs must be done starting from a correct training need
analysis till the correct implementation. Rewards and recognizing the success of the training
is very important to motivate the employees and bring about a positive outcomes.
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RESEARCH METHODOLOGY
Research Design:
Descriptive research design has been used for the purpose of the study. The scope of the
study encompasses the following areas,
Collection of data:
The study is based on primary data. The were collected from employees of banks and other
sectors. The information was collected by way of questionnaires. This was the best possible
mode of collecting. After studying available literature of the topic of training and
development, I prepared the questionnaire for analysing the effectiveness of training and
development programs. The questionnaire was designed to comprehensively cover all areas
of training and development programs and which could easily got the employees feedback.
Information was collected from various magazines, research projects and e-articles.
Sample Size:
Company Chosen:
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RESEARCH OBJECTIVE
To know how the new and the existing employees perceive the training and
development program
To determine the major factors influencing the effectiveness of training and
development program
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INTRODUCTION
It’s not what you want in life, but it’s knowing how to reach it
It’s not where you want to go, but it’s knowing how to get there
It’s not how high you want to rise, but it’s knowing how to take off
It may not be quite the outcome you were aiming for, but it will be an outcome
It’s not what you dream of doing, but it’s having the knowledge to do it
It's not a set of goals, but it’s more like a vision
It’s not the goal you set, but it’s what you need to achieve it
Training is about knowing where you stand (no matter how good or bad the current
situation looks) at present, and where you will be after some point of time.
Training is about the acquisition of knowledge, skills, and abilities (KSA) through
professional development.
Methods:
There are various methods of training, which can be divided in to cognitive and behavioural
methods. Trainers need to understand the pros and cons of each method, also its impact on
trainees keeping their background and skills in mind before giving training.
Cognitive methods are more of giving theoretical training to the trainees. The various
methods under Cognitive approach provide the rules for how to do something, written or
verbal information, demonstrate relationships among concepts, etc. These methods are
associated with changes in knowledge and attitude by stimulating learning.
1) LECTURES METHOD:
It is one of the oldest methods of training. This method is used to create understanding of
a topic or to influence behaviour, attitudes through lecture. A lecture can be in printed or
oral form. Lecture is telling someone about something. Lecture is given to enhance the
knowledge of listener or to give him the theoretical aspect of a topic. Training is basically
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incomplete without lecture. When the trainer begins the training session by telling the aim,
goal, agenda, processes, or methods that will be used in training that means the trainer is
using the lecture method. It is difficult to imagine training without lecture format. There are
some variations in Lecture method. The variation here means that some forms of lectures
are interactive while some are not.
Straight Lecture: Straight lecture method consists of presenting information, which the
trainee attempts to absorb. In this method, the trainer speaks to a group about a topic.
However, it does not involve any kind of interaction between the trainer and the trainees. A
lecture may also take the form of printed text, such as books, notes, etc. The difference
between the straight lecture and the printed material is the trainer’s intonation, control of
speed, body language, and visual image of the trainer. The trainer in case of straight lecture
can decide to vary from the training script, based on the signals from the trainees, whereas
same material in print is restricted to what is printed. A good lecture consists of introduction
of the topic, purpose of the lecture, and priorities and preferences of the order in which the
topic will be covered.
2) DEMONSTRATION:
To carry out an effective demonstration, a trainer first prepares the lesson plan by breaking
the task to be performed into smaller modules, easily learned parts. Then, the trainer
sequentially organizes those modules and prepares an explanation for why that part is
required. While performing the demonstration, trainer:
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Tells the trainees what you will be doing so they understand what you will be
showing them
Explains why it should be carried out in that way
The difference between the lecture method and the demonstration method is
the level of involvement of the trainee. In the lecture method, the more the
trainee is involved, the more learning will occur.
Demonstrates the task by describing how to do, while doing
The financial costs that occur in the demonstration method are as follows:
Cost of training facility for the program
Cost of materials that facilitate training
Food, travel, lodging for the trainees and the trainers
Compensation of time spent in training to trainers and trainees
Cost related to creating content, material
Cost related to the organization of the training
After completing the demonstration the trainer provide feedback, both positive and or
negative, give the trainee the opportunity to do the task and describe what he is doing
and why.
3) DISCUSSIONS:
This method uses a lecturer to provide the learners with context that is supported,
elaborated, explains, or expanded on through interactions both among the trainees and
between the trainer and the trainees. The interaction and the communication between
these two make it much more effective and powerful than the lecture method. If the
Discussion method is used with proper sequence i.e. lectures, followed by discussion and
questioning, can achieve higher level knowledge objectives, such as problem solving and
principle learning.
The Discussion method consists a two-way flow of communication i.e. knowledge in the
form of lecture is communicated to trainees, and then understanding is conveyed back by
trainees to trainer.
Understanding is conveyed in the form of verbal and non-verbal feedback that enables the
trainer to determine whether the material is understood. If yes, then definitely it would help
out the trainees to implement it at their workplaces and if not, the trainer may need to
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spend more time on that particular area by presenting the information again in a different
manner.
Questioning can be done by both ways i.e. the trainees and the trainer. When the trainees
ask questions, they explain their thinking about the content of the lecture. A trainer who
asks questions stimulates thinking about the content of the lecture. Asking and responding
questions are beneficial to trainees because it enhance understanding and keep the trainees
focused on the content. Besides that, discussions, and interactions allow the trainee to be
actively engaged in the material of the trainer. This activity helps in improving recall.
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According to a recent survey, about 75% of the organizations are providing training to
employees through Intranet or Internet. Internet is not the method of training, but has
become the technique of delivering training. The growth of electronic technology has
created alternative training delivery systems.
CBT does not require face to face interaction with a human trainer. This method is so varied
in its applications that it is difficult to describe in concise terms.
Cognitive approach:
The various methods that come under Cognitive approach are:
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o It guides the trainees
o It is a text-based system
o It also evaluates the training program
o It also improves the methodology for teaching the trainee based on the information
o It is an interactive system
o It determines the trainee’s level of understanding
o Intelligent Tutorial System (ITS) comprises of 5 components:
o A domain expert also called the expert knowledge base
o A trainee model – stores the information on how the trainee is performing during
the training program
o A scenario generator
o A training session manager – interprets trainees responses and responds either with
tutoring, more content or information
o A user interface – allows the trainee to communicate with the Intelligent tutorial
System
This method allows the trainees to go through the content according to the individual
speed, and capability. Those trainees, who respond better, move through the content
rapidly.
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In programmed instruction, trainees receive information in substantial amount and then
tested on their retention of information. If the trainees are not able to retain the
information, they are referred back to the original information. If the trainees retain the
information, they are referred to the next log of information that is to be learned.
VIRTUAL REALITYL:
Virtual Reality is a training method that puts the participant in 3-D environment. The
three dimensional environment stimulates situations and events that are
experienced in the job. The participant interacts with 3-D images to accomplish the
training objectives. This type of environment is created to give trainee the
impression of physical involvement in an environment. To experience virtual reality,
the trainee wears devices, like headset, gloves, treadmills, etc.
This allows the virtual reality (VR) system to respond by changing the environment
appropriately.
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It is poorly understood – requires technical understanding
It is expensive
It is time consuming
It is flexible in nature
It does not incur traveling, lodging, or food cost
It requires excellent infrastructure
Behavioural methods:
Behavioural methods are more of giving practical training to the trainees. The various
methods under Behavioural approach allow the trainee to behaviour in a real fashion.
These methods are best used for skill development.
Games and Simulations are structured and sometimes unstructured, that are usually
played for enjoyment sometimes are used for training purposes as an educational tool.
Training games and simulations are different from work as they are designed to
reproduce or simulate events, circumstances, processes that take place in trainees’
job.
A Training Game is defined as spirited activity or exercise in which trainees compete
with each other according to the defined set of rules.
Simulation is creating computer versions of real-life games. Simulation is about
imitating or making judgment or opining how events might occur in a real situation.
BEHAVIOR-MODELING:
Behaviour Modeling uses the innate inclination for people to observe others to
discover how to do something new. It is more often used in combination with some
other techniques. Behavior modeling focuses on developing behavioral and
interpersonal skills.
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o Sales training
o Interviewee training
o Interviewer training
o Safety training
o Interpersonal skills training
BUSINESS GAMES:
Business games are the type of simulators that try to present the way an industry,
company, organization, consultancy, or subunit of a company functions. Basically, they
are based on the set of rules, procedures, plans, relationships, principles derived from
the research. In the business games, trainees are given some information that
describes a particular situation and are then asked to make decisions that will best suit
in the favour of the company. And then the system provides the feedback about the
impact of their decisions
Again, on the basis of the feedback they are asked to make the decisions again. This
process continues until some meaningful results do not came out or some predefined
state of the organization exists or a specified number of trails are completed.
As an example, if the focus is on organization's financial state, the game may end when
the organization reach at desirable or defined profitability level.
CASE STUDIES:
Case Studies try to simulate decision making situation that trainees may find at
their work place. It reflects the situations and complex problems faced by
managers, staff, HR, CEO, etc. The objective of the case study method is to get
trainees to apply known concepts and ideologies and ascertain new ones. The
case study method emphasize on approach to see a particular problem rather
than a solution. Their solutions are not as important as the understanding of
advantages and disadvantages.
The trainee is given with some written material, and the some complex situations
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of a real or imaginary organization. A case study may range from 50 to 200 pages
depending upon the problem of the organization.
The longer case studies provide enough of the information to be examined while
the shorter ones require the trainee to explore and conduct research to gather
appropriate amount of information.
The trainee then makes certain judgment and opines about the case by
identifying and giving possible solutions to the problem.
In between trainees are given time to digest the information. If there is enough
time left, they are also allowed to collect relevant information that supports their
solution.
Once the individuals reach the solution of a problem, they meet in small groups
to discuss the options, solutions generated.
Then, the trainee meets with the trainer, who further discusses the case.
The quality of employees and their development through training and education are
major factors in determining long-term profitability of a business. If you hire and keep
good employees, it is good policy to invest in the development of their skills, so they
can increase their productivity. Training often is considered for new employees only.
This is a mistake because on-going training for current employees helps them adjust to
rapidly changing job requirements.
EQUIPMENT STIMULATORS:
Equipment simulators are the mechanical devices that necessitate trainees to use
some actions, plans, measures, trials, movements, or decision processes they would
use with equipment back on the their respective work place.
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It is imperative that the simulators be designed to repeat, as closely as possible, the
physical aspects of equipment and operational surroundings trainees will find at their
work place. This is also called as physical fidelity of the simulation.
Besides that, the mental conditions under which the equipment is operated such as,
increasing demands, pressure of time, and relationship with colleagues, subordinates,
etc must also be closely matched to what the trainees experience on the work place.
IN-BASKET TECHNIQUE:
In-Basket Technique – It provides trainees with a log of written text or information and
requests, such as memos, messages, and reports, which would be handled by manger,
engineer, reporting officer, or administrator.
ROLE PLAYS:
Role play is a simulation in which each participant is given a role to play. Trainees are
given with some information related to description of the role, concerns, objectives,
responsibilities, emotions, etc. Then, a general description of the situation, and the
problem that each one of them faces, is given. For instance, situation could be strike in
factory, managing conflict, two parties in conflict, scheduling vacation days, etc. Once the
participants read their role descriptions, they act out their roles by interacting with one
another.
Role Plays helps in,
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Developing interpersonal skills and communication skills
Conflict resolution
Group decision making
Developing insight into one’s own behavior and its impact on others
Single Role Play – One group of participants plays the role for the rest, providing
demonstrations of situation. Other participants observe the role play, analyse their
interactions with one another and learn from the play.
Role Rotation – It starts as a single role play. After the interaction of participants, the trainer
will stop the role play and discuss what happened so far. Then the participants are asked to
exchange characters. This method allows a variety of ways to approach the roles.
Spontaneous Role Play – In this kind of role play, one of the trainees plays herself while the
other trainees play people with whom the first participant interacted before.
Creating a pool of readily available and adequate replacements for personnel who
may leave or move up in the organization.
Enhancing the company's ability to adopt and use advances in technology because of
a sufficiently knowledgeable staff.
Building a more efficient, effective and highly motivated team, which enhances the
company's competitive position and improves employee morale.
Increased productivity.
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New trends in training and development Article:
The main reasons for the rapidly growing demand for training and development are
for self-enrichment and survival in response to the chaos of the current workplace.
Employees are realizing that the knowledge and skills they acquired in college are
Increased efficiency resulting in financial gains.
becoming obsolete, and they need to constantly stay flexible, marketable, and
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impact of training on the business performance of the company through meeting the
expectations of the top management; development of evaluation strategy and data
collection plans, improvement of work performance. The New Zealand's Advertising
Guru states, "The single biggest waste of training dollars is when management
spends money on training but doesn't understand why." He further quotes that
"Investing in skills isn't something enterprises should do because someone tells them
to, but because it's central to their future success."
In the modern era as globalization and competition increase training systems have to
change focus. With the knowledge economy enveloping the world, the traditional
hierarchical organizational structures are giving way to flatter and flexible
organizational structures. Work pressures are on the increase due to the increasing
stresses and strains. Organizations now work with flexible teams and an employee is
a member of different teams simultaneously. Employees expectations in terms of
responsibility as well as rewards have changed dramatically. Rewards come when the
organizations starts identifying the relationship between the training and bottom line
performance. To prove this, the American Society For Training and Development
Study reveals that 25% of the companies invested in training got back 24% of the
higher profit margins, 50% enjoyed the Total Shareholder Return i.e. 86% higher than
bottom half. When the company's spent $680 per employee to get suitable training
fetched 6% increase in Total Shareholders Return.
Conducting a Training Needs Analysis (TNA) can be a daunting task, TNAs get easier with
experience, however it can be a straightforward process.
An effective Training Needs Analysis needs to be a good fit with your existing (and future
desired) business and culture.
1. Identify the business need (gap in performance/ capability) for the training
5. Consult with your organisation to decide if training is the action required to address
the identified gaps
8. Agree an assessment so the business knows if the training is worthwhile (this also
sets the evaluation criteria – i.e. how will you know the training intervention has
been successful?)
9. Get buy-in from stakeholders to commence project – if the solution(s) is owned then
there is increased success of the project
Some organizations look to outsource this activity, if you do ensure that you have KPIs for
each of the steps and agree success at each step before progressing. The same could be true
of gaining stakeholder acceptance at each stage if doing this internally.
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Training Need Analysis, How Does Organization Go About It ?
In Training and Development
Training need analysis is very useful in finding out the gap between required competencies,
and existing competencies of an individual for a specific job. If any gap is found then training
manager is being assigned to fill this gap through his/her customized training programs, and
continuous feedback is taken whether gap still exist or not. Training need analysis can be for
any level of job, and can be classified as present training needs, and future training needs.
Training need analysis usually occurs periodically, mainly when the new technology is being
introduced, and for newly joined employees. There is no fixed pattern when training need
analysis should occur or not it’s depends upon- organization’s strategic requirements.
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DESIHNING A TRAINING PROGRAM
Training need analysis: the first step in designing a training program is training need
analysis. Training need analysis finds out the gap between required performance and
existing performance for a specified job.
a) Individual Analysis :
After training need analysis the next step comes of individual analysis, In this analysis
experts try to find out individual’s learning abilities. This is because different individuals
have different learning abilities, some learns with slow pace and some learns with high
pace.
-Session objectives
The course programme must contain all the critical, essential and desirable contents for a
learner or in another sense what a learner must know, should know and could know.
e) Training evaluation:
Training evaluation is very necessary to find out whether training meets with its objectives
or not. Reaction of learner must take through questionnaires or interview to know the
training effectiveness, and the features of training liked or disliked by the learner.
f) Learner evaluation:
This is very important to see whether the gap that was found by training need analysis is
filled or not. Again job performance and competency levels should be measured
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Measuring the effectiveness of training programs consumes valuable time and resources. As
we know all too well, these things are in short supply in organizations today. Why should we
bother? Many training programs fail to deliver the expected organizational benefits. Having
a well-structured measuring system in place can help you determine where the problem
lies. On a positive note, being able to demonstrate a real and significant benefit to your
organization from the training you provide can help you gain more resources from
important decision-makers. Consider also that the business environment is not standing
still. Your competitors, technology, legislation and regulations are constantly changing.
What was a successful training program yesterday may not be a cost-effective program
tomorrow. Being able to measure results will help you adapt to such changing
circumstances.
The most well-known and used model for measuring the effectiveness of training programs
was developed by Donald Kirkpatrick in the late 1950s. It has since been adapted and
modified by a number of writers; however, the basic structure has well stood the test of
time. The basic structure of Kirkpatrick’s four-level model is shown here.
Level 1 -
How did participants react to the program?
Reaction
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program was met. It’s not that conducting an evaluation at one level is more important that
another. All levels of evaluation are important. In fact, the Kirkpatrick model explains the
usefulness of performing training evaluations at each level. Each level provides a diagnostic
checkpoint for problems at the succeeding level. So, if participants did not learn (Level 2),
participant reactions gathered at Level 1 (Reaction) will reveal the barriers to learning. Now
moving up to the next level, if participants did not use the skills once back in the workplace
(Level 3), perhaps they did not learn the required skills in the first place (Level 2).
The difficulty and cost of conducting an evaluation increases as you move up the levels. So,
you will need to consider carefully what levels of evaluation you will conduct for which
programs. You may decide to conduct Level 1 evaluations (Reaction) for all programs, Level
2 evaluations (Learning) for “hard-skills” programs only, Level 3 evaluations (Behavior) for
strategic programs only and Level 4 evaluations (Results) for programs costing over $50,000.
Above all else, before starting an evaluation, be crystal clear about your purpose in
conducting the evaluation.
How do you conduct a training evaluation? Here is a quick guide on some appropriate
information sources for each level.
Level 1 (Reaction)
Level 2 (Learning)
on-the-job assessments
supervisor reports
Level 3 (Behavior)
on-the-job observation
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Level 4 (Results)
financial reports
quality inspections
When considering what sources of data you will use for your evaluation, think about the
cost and time involved in collecting the data. Balance this against the accuracy of the source
and the accuracy you actually need. Will existing sources suffice or will you need to collect
new information?
Think broadly about where you can get information. Sources include:
direct observation
Once you have completed your evaluation, distribute it to the people who need to read it. In
deciding on your distribution list, refer to your previously stated reasons for conducting the
evaluation. And of course, if there were lessons learned from the evaluation on how to
make your training more effective, act on them!
Management appoints leaders, the managers, who influence the employees so that they
can make goal directed efforts to produce the desired results. They inspire the employees
for the accomplishment of organizational goals. They build up competencies and ethical
standards. They direct the employees towards defined objectives of the organization while
providing effective training and development programs. They enthuse and motivate them so
that the tasks can be carried out effectively and efficiently.
Before the training programs being implemented, the need of training is identified. It is
ensured whether training can serve the purpose. Depending upon the needs of various jobs,
different methods of training programs are conducted, such as, on-and-off the job methods,
special lectures, conferences and seminars. The purpose of on-the-job method is to involve
the employees in learning while they are at work, whereas through off-the-job training
program, the employees need to leave the work place so as to spend the required duration
in the learning process. Special lectures are meant to create the awareness of fundamental
knowledge. By way of arranging conferences, various discussions are held on the points of
common interest, in regard to the organization and various issues, ideas are collected and
experience is shared in order to deal with the problems. With critical discussions, the
participants of seminars study the various aspects and the complexities of particular jobs.
The sole purpose of training and development programs is to build the necessary skills of
the employees and to create positive feelings among them. It’s a fact and opposed to the
supposition that man can do things what he believes he can. Thus, a true leader is the most
influential person to build self-confidence of the employees. He is a source of inspiration to
his subordinates. He strives to instil the team spirit by making his members believe that they
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are capable of doing challenging tasks. This is how the employees learn many things and
develop their personalities while improving organizational competence under the healthy
environment of an organization.
A trained and skilled employee is far better than those untrained and unskilled. He becomes
competent and performs his assigned task independently. As an illustration, once an
untrained employee asked his friend who was trained, “After all what you learn by training
program? I don’t think it’s of any worth.” He replied jokingly, “We are trained even how to
ask questions and the art of effective communication which you seem to be lacking.” In fact,
it’s funny instance but it reveals the fact as training is all encompassing - it covers all
necessary skills of the employees required in the workplace while motivating them to work
in a desired and capable manner.
The major benefits of training and development programs are that the employees who are
trained need lesser supervision than those who are not. A trainee acquires new knowledge,
skills and attitudes and applies them in job situations. Training is a way to create the
confidence among the employees so that they can operate the tasks without any
obstruction with all efficiency and effectiveness. To conduct such programs is to save money
because a company is likely to bear heavy expenditure on hiring new employees. It is also
one of the best ways to expand the span of management.
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To measure training is one of the key components on how a business will succeed. If a
training program is proven to be effective, it will definitely yield to positive results, perhaps
more than what is desired by the company. However, measuring the effectiveness of
training is one of the biggest challenges of firms today. Training in itself is expensive and
adding more components to it may not be a good idea in terms of financial capacity.
What may help to reduces cost is to develop several tools which may be classified under
business intelligence. These tools will help the company evaluate training and consistently
improve its methodologies. This is critical since business needs change. The environment
and the type of people who get in the company also change. So how does one person
measure the effectiveness of training in a systematic way?
Once the trainees go live on production on the floor or operations, their performance will
significantly impact the overall achievement of the program. Lack of training or poor training
methodology always ends up with employees not able to fulfil their jobs. Metrics should be
used to see how effective the training was. It will not be wise say that a training curriculum
is good simply because the students or trainees passed the exam. What needs to be done is
to check the metrics of these employees and see if they are at par with the expectations of
the company.
Significantly, an in-depth analysis should be done here. Data per employee should be
available and this should not be very difficult to obtain with the kind of technology we have
right now. These data will then validate of the training was effective. Findings in the analysis
may say that there is a gap in the training system and that there is a need to revamp the
process or the curriculum.
Performance will significantly tell a lot about training. This does not only concern product
training but also job orientation. Many employees out there do not know how they should
perform because they do not know what is expected of them. Many employees break the
rules because they are not also aware of them. It is therefore wise to terrain employees
about the existing policies of the company so they know what is acceptable and not.
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During their more than 10 years as consultants to some of the world's largest organizations,
Jack and Patricia Phillips have developed a unique vantage point within the training and
development community. They have assisted hundreds of organizations with measurement
and evaluation to bring accountability to their workforce processes. As a result, they've
examined major training and development programs in all types of settings, conducted
impact studies using a comprehensive measurement and evaluation process and reviewed
the success (or lack thereof) of studies conducted by their clients. Of the more than 400
impact studies the Phillipses have conducted or reviewed over the years, some studies have
shown positive results while others yielded a negative return on investment. Along the way,
they have observed repeat patterns of issues that inhibit or enhance results. Even when a
program is successful, issues may stand in the way of more impressive results. Collectively
through their clients' impact studies, along with comprehensive evaluation, they have
identified 11 reasons why training and development fails and provide a prescription for
change.
A training program's payoff comes from the business measures that drive it. Simply put, if a
training program is not aligned or connected to a business measure, no improvement can be
linked to the program. Too often, training is implemented for the wrong reasons—a trend,
desire or perceived need that may not be connected to a business measure.
Initial training needs may be linked to the objectives and evaluation through the use of a
consistent four-level concept (See "Linking Needs Assessment" chart). If we accept this
evaluation framework, four corresponding levels of objectives and needs assessment exist
as well. Without the business connection at Level IV, the program will have difficulty in
credibly driving any business results.
One major telecom company in the United States faced this problem directly as it reviewed
its corporate university's major programs. A first step to check for business alignment was to
connect core courses to some business measure or need based on perceptions of the
corporate university staff. When the staff could not readily make the connection, they
determined the linkage did not exist. The company needed a more detailed up-front
analysis.
If the wrong solution is implemented, little or no payoff will result. Too often, training is
perceived as a solution for a variety of performance problems when training may not be an
issue at all.
A recent evaluation of a leading U.S. bank's major training program illustrated this problem.
In its training program, the bank attempted to prepare the commercial loan officers
(relationship managers) to sell products other than commercial loans, such as the bank's
capital market products and cash management services. But the training produced little
change in the managers' behavior. An impact study subsequently revealed that the culprit
30
was the compensation arrangement. When probed for a reason for the poor results, the
bankers clearly indicated that unless their compensation system changed to account for the
new product lines, their behavior would not change. They would continue to sell only the
products on which their commissions were based.
Attempting to solve job performance issues with training will not work when factors such as
reward systems, job design and motivation are the real issues. To overcome this problem,
training staffs must focus on methods to analyse performance rather than conduct
traditional training needs assessments—a major shift in performance improvement that has
been developing for many years. Up-front analysis should be elevated from needs
assessment, which is based on skills and knowledge deficiencies, to a process that begins
with business needs and works through to learning needs.
Training and development objectives should be developed at higher Kirkpatrick levels than
traditional learning objectives. These objectives correspond with six measures that lead to a
balanced approach to evaluating training's success. Most training programs should contain
objectives at multiple levels, ideally including those at levels III and IV.
When developed properly, these objectives provide important direction and focus for a
variety of stakeholders at different time frames. For designers and developers, the
objectives provide needed insight to focus on application and impact, not just learning. The
facilitators need detailed objectives to prepare individuals for the learning experience's
ultimate outcome: job performance change.
Participants need the direction provided by level III and IV objectives to clearly see how the
training program's outcome will actually help the organization. Sponsors of training and
development, the key clients who pay for the program and support it, require such
objectives to connect training with important business-unit measures. Finally, evaluators
use this type of direction to know what data to collect to determine whether the program
has been successful.
Recognizing the importance of multiple objective levels, including business impact, a vice
president of corporate training and development at a major package delivery company
recently posed an important question to the organization: "How can we expect our
management team to support a program when we cannot define the behavior expected
from participants and the subsequent business impact driven by the program?"
While not all programs should undergo such detailed up-front analysis, it is a critical issue
that needs more attention.
31
4. The Solution Is Too Expensive
Of course; a training and development program's ROI might ultimately fail to recoup its high
costs. It's important to note, however, that a negative ROI is not always a sign of failure.
Many programs might add enough perceived
Value through intangibles and significant short-term behavior change to overcome negative
ROI. If positive ROI is expected, however, then negative ROI shows failure and is
unacceptable.
One large bank's executive leadership development program, for example, offered an
impressive design from a learning perspective and included project assignments for
participants, mentors and learning coaches. Unfortunately, the program proved too
expensive for the monetary value that it added, even after multiple years of providing
benefits. When the full cost of conducting the four-week training sessions in major cities
around the world were tallied along with the costs of consultants, personal learning coaches
for each executive, and costs for the design, development and facilitation teams, the total
reached almost $100,000 per participant. The program was unable to deliver what
management expected.
This issue rises the question of what costs should be included in the analysis. Actual costs
are traditionally included in an impact study, although some of them are indirect and might
not be visible or contained in a particular cost statement. Too often there is a tendency to
use only direct costs or even to minimize them to a certain extent.
The good news is that many effective learning solutions can be implemented with
inexpensive processes and still drive business results. For example, a sexual harassment
prevention workshop conducted at a hospital network cost each participant (supervisor and
managerial level) $424. The ROI was 1,052 per cent. It is possible.
A positive business impact must come from an individual participant's behavior change, and
such change does not come easily. When training is considered a single event, such as
attending a two-day workshop for example, the odds of changing behaviour are slim.
Without behaviour change, training fails to generate business results.
One major physician malpractice insurance provider offered various training seminars to
help physicians adjust their approach and behaviour regarding certain medical procedures.
Traditionally, the programs were offered in four-hour or full-day programs, with no pre-
work and no follow-up reinforcement. Not surprisingly, the seminars changed few, if any,
32
behaviours.
Participants can succeed with training if they are properly motivated to do so and are held
accountable for their results, even with an unsupportive manager. Traditionally, the
participants' role in a training program has been limited to attendance—learning the skills
and knowledge being offered. At times, they may even be required to apply the newly
acquired skills on the job.
But participants should not only apply what is learned, they also should ensure that doing so
will reflect business results. While this creates additional expectations, the participants' role
is elevated from learning to actually achieving results and reporting them to the training and
development staff. This shift is accomplished by developing expectations into learning
solutions, providing hand outs that detail specific expectations and defining the roles of
employees in various handbooks, employee manuals and orientation sessions. Participants
must understand that the program's success rests largely with them, and disappointing
results may be their responsibility.
Regardless of what participants learn from a training program, without transferring it to the
33
job, performance will not change and the training program will fail. This training-transfer
problem has been an important issue in training and development for decades.
Unfortunately, studies continue to show that between 60 and 90 per cent of what
A recent impact study involving a technology firm based outside the United States revealed
that several learned isn't applied on the job. The reason this occurs is complex, involving
many different barriers (See "Barriers Of Transfer" chart), to which little attention is given
until it's too late. The result: Barriers kill the success of an otherwise successful program.
Barriers must be understood at the beginning of the process as part of needs assessment
and analysis. Identified early, inhibitors can be addressed in the solution's design,
development, delivery and implementation. Efforts to minimize, if not eliminate, the
barriers before the learning solution is implemented will pay off significantly.
Without management support, participants will rarely implement new skills and knowledge
in the workplace. The manager's role, therefore, is critical in the learning process. Most
studies have shown that the two most powerful opportunities for managerial input occur
during the interaction with the learner prior to the training solution and after the training
have been completed.
It's clear that managers usually don't realize their influence. This disconnect is most
frequently identified in follow-up surveys conducted as part of an impact study. More action
must be taken to ensure managers understand their impact and how they can make
changes.
At one major computer manufacturer, participants were asked specific questions regarding
the actions and performance of their managers following training. By using multiple-choice
responses, the survey essentially listed the same questions but reworded the choices from
the perspective of the group being surveyed. The results showed a tremendous disconnect.
Some 40 present of managers said they encouraged and coached th employees with the
training, while the participants indicated that 0 per cent actually provided encouragement
and coaching.
The problem often exists in managers' perceptions about reinforcement and support. Some
managers feel that since they created an empowered environment for employees, they
should not have to probe further into each learner's application of new skills or knowledge.
Learning new skills is a different situation. A new process implemented in the workplace,
particularly one involving a significant departure from previous approaches, requires the
immediate manager's support. A simple inquiry about the training program's success and
how it will be implemented into the work unit is often sufficient.
34
Organizations offering support have tackled this process by developing management
reinforcement modules for a particular program, defining managers' support roles,
conducting workshops to show managers their specific roles, holding managers accountable
through their own job descriptions and responsibilities, and rewarding managers for doing it
right.
Too often, training programs are conducted, business measures are monitored and
improvements are credited to the training process alone. The assumption is the training
program improved the business. Actually, other influences and processes may have
influenced the business measure. The challenge is to isolate the improvement directly
related to training. Failure to attempt to isolate training's contribution might cause some
training programs to be discarded as irrelevant. Such programs may actually bolster the
bottom line, but if there is no attempt to isolate their impact, executives and sponsors are
puzzled about the actual connection to business improvement. No doubt this is perhaps the
most challenging issue. The classical approach is to compare a group that has received
training to a group that has not, and let the difference in the two groups' performance
represent training's impact. We have attempted to use this technique often, yet only one-
third of our studies contain this type of arrangement. For the remaining studies, another
technique must be used to pinpoint training's impact. Recently, various techniques have
evolved to estimate the connection between the training and business improvement. The
good news is that at least one of these techniques identified in the chart will work in every
setting, and the issue can be addressed in every impact study. To show training's real value,
designers, developers and evaluators must accept the challenge to tackle this issue.
Without top executive commitment and involvement, training and development will be
ineffective and major programs will fall short of expectations. Commitment is critical, which
equates to resources being allocated to the training and development function and its
specific programs. Involvement includes the actual presence and actions of individual
executives in the process. Business literature is laced with examples of top executives taking
active roles. Andy Grove, chairman of Intel, sees training and development as one of his key
responsibilities. Jack Welch, former chairman of GE, devoted a prescribed number of days
per month at the GE management development canter in New York. Bill Gates Microsoft
chairman conducts a portion of the orientation for new employees as part of a rotating
assignment with senior executives. Active roles by senior managers are critical and can be
accomplished in many ways—ranging from minimal participation to increased involvement
in which specific days are allocated to teaching. When executives take a very visible role,
35
others will do the same. This attitude filters throughout the organization and makes a big
difference.
All stakeholders need feedback. Employees require feedback on their progress, developers
and designers need feedback on program design, facilitators need feedback to see if
adjustments should be made to delivery, and clients need feedback on a program's success.
Without such feedback, a program may not reach expectations. The challenge is to provide
a stream of information, as data are collected, to a variety of audiences (See "Common
Target Audiences" chart). Sharing evaluation data from Kirkpatrick's levels I-V can help
refine the training process. Reaction data and learning data can improve learning design and
facilitation. Application data should be provided to those individuals implementing the
programs so that adjustments can be made. And business impact data must be shared with
clients and others so that the entire group can understand the value. Most importantly, the
results may be used to make adjustments in the design, development and delivery of the
program. The routine communication of data serves as a process improvement in making a
successful program more successful.
LETARATURE REVIEW
36
According to Casse and Banahan (2007), the different approaches to training and
development need to be explored. It has come to their attention by their own preferred
model and through experience with large Organisations. The current traditional training
continuously facing the challenges in the selection of the employees, in maintaining the
uncertainty related to the purpose and in introducing new tactics for the environment of
work and by recognizing this, they advising on all the problems, which reiterates the
requirement for flexible approach. Usually the managers have the choice to select the best
training and development programme for their staff but they always have to bear in mind
that to increase their chances of achieve the target they must follow the five points
highlighted by Miller and Desmarais (2007). According to Davenport (2006), mentioned in
his recent studies that it’s easy to implement strategy with the internet supported software.
Some of the Training theories can be effective immediately on the future of the skill and
developments. The “content” and the “access” are the actual factors for the process. It is a
representation itself by the Access on main aspect what is effective to the adopted practice
in training development. As per the recent theories to access the knowledge is changing
from substantial in the traditional to deliver the knowledge for the virtual forms to use the
new meaning of information with electronic learning use. There is a survey confirmation for
using classroom to deliver the training would drop dramatically, (Meister, 2001).
Training and development is a vital part of HRM and is incomplete without proper
performance management. The article discusses the training and development in detail as
practiced at HSBC Bank in Pakistan. It is conducted in four steps. First Training need analysis
is done where the existing skills and knowledge of employees are evaluated and then
training requirements are assessed. Then in the second step appropriate program is
designed to fulfil the training requirements and in the third step that training is conducted.
In the fourth and last step the employees are again evaluated to check the effectiveness of
the program. The training program is usually divided into three parts. In the first past
employee is given orientation of the bank and the job. This is called induction training. In the
second part, employee is given job specific training and in the third part employees are
encouraged and groomed to achieve their personal development goals. The paper then
discusses performance management at HSBC and how it influences the several stages of the
training program. Also the relationship between training and development and performance
management is discussed. The paper argues that performance management should
coordinate with training and development. Both much complement each other rather then
contradict. This is what is observed in HSBC where performance management is practiced in
line with training and development. In the end, this paper discusses certain motivational
theories at work at HSBC Bank. The bank exercises these theories all over its global
operations. The paper concludes by giving emphasis on training and development and the
37
need to invest heavily in it, especially in Pakistan where educational standards are quite
negligent.
SkillSoft PLC has developed and released SkillSoft Dialogue, a web-based training and
development tool. The software offers employers a new and innovative way to develop
training courses and then transmit them directly to employees over the Internet or
corporate intranets. This new software tool also will allow users to blend computer-
generated and traditional classroom-and-lecture content to create educational sessions that
best fit their organization's training needs.
Plateau Systems Inc. has developed and released a new training and development software
tool, Plateau Analytics. The new software package is designed to help trainers and HR
professionals analyze training curriculum and more effectively align training programs with
their organization's strategic goals. The software is also designed to help employers better
understand the impact of specific training courses on business performance. For example,
organizations can ascertain the status of employee certification required by a regulatory
change and the percentage of employees who have competency gaps as defined by their job
requirements. By using Plateau Analytics, training professionals and HR managers can
measure instantly the success of various training initiatives and ensure that an organization
is getting the highest possible return on its training investments.
HR Classroom has added the new program "Respect in the Workplace" to its popular online
training courses for supervisors and staff. The new training program explores the benefits of
a respectful workplace, and provides real-life scenarios to train supervisors and employees
about topics such as respecting privacy, admitting mistakes, managing diversity and
communicating with others. The HR Classroom compliance training system delivers content
via a web browser directly to any computer with Internet access.
Vital Smarts LLC has developed and released a new training program called Crucial
Confrontations, a proven step-by-step management training program designed to help
improve work performance and enhance accountability. Crucial Confrontations training
combines 14 hours of classroom time with more than 100 original video clips and examples
of work situations that are managed both poorly and well.
38
The course pacing is active and engaging, with frequent role-playing, intense class
participation, personal reflection, and planning and follow-up resources. Crucial
Confrontations joins its award-winning counterpart, Crucial Conversations, to offer
employers focused training solutions for confronting chronic management and workforce
problems that tend to bog down organizations and keep workers from reaching their full
potential. The training programs are offered regularly as two-day courses, and VitalSmarts
also provides a "train the trainer" program so that in-house trainers can be certified to
conduct training courses within their organizations.
Trainer's Handbook: The AMA Guide to Effective Training (HR Magazine, July, 2005)
Use this quick desktop reference to help you solve specific training problems; fully
understand the objectives and structures of training; prepare a needs analysis to determine
the size and scope of a proposed training program; write training programs, prepare the
physical environment and carry out the actual training; make the best use of technology;
evaluate training effectiveness; and market the training function throughout your
organization. Garry Mitchell (468 pp., hardcover, 1997)
DATA ANALYSIS
Training provided
39
1.2
0.8
0.2
0
Parle Bank of Allahabad
Target Group
1
0.9
0.8 Top management
0.7 Middle
0.6 Jurior staff
New Staff
0.5 All All
0.4
New Staff
0.3
0.2 Jurior staff
0.1
Middle
0
Parle Top management
Bank of Allahabad
40
Bank of Allahabad
Nature of trainers
100
90 88
80
80
70
60
50 parle
Bank of Allahabad
40
30
20
20
12
10
0
Internal External
41
Method of ROI is there or not?
1
0.9
0.8
0.7
0.6 Bank of Allahabad
0.5 Parle
0.4
0.3
0.2
0.1
0
Yes No
Contribution towards
organisations goal
Bank of Allahabad
Parle
42
online training
Case Studies
Training Institutes
Job Rotation
Bank of Allahabad
Business Games Parle
External consultants
0 1 2 3 4 5 6 7 8 9 10
Cost Allocation
3-5
More than 5
More than 5
3-5
Bank of Allahabab
Parle
43
Reaction Feedback
Behavioral evaluation
learning measures
ROI ROI
learning measures
Behavioral evaluation
rle Reaction Feedback
Pa ad
hab
A lla
k of
n
Ba
Continuous evaluation
No
Bank of Allahabad
parle
44
45