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In the world of training and development, the subject of measuring return on investment (ROI) is discussed frequently. It seems that everyone is searching for the perfect measurement system to increase organizational capabilities and link them with the business strategy. Human resource practitioners, OD consultants, training managers and senior managers realize that the training and development activities should eventually show a ROI and improve the bottom line. Otherwise, why even bother to have a training and development process?
Reasons for Measuring Training and Development Activities
Why should organizations measure the progress of their training and development curriculums? Here are a few reasons:
* To make sure the curriculum is taking the organization in the right direction.
* To determine whether the actions being taken or behavior changes resulting from the training align with the business case or the reasons for the change.
* To justify the costs of the training and development curriculum that was chosen to enhance change initiatives.
* To provide base-line measurements that can identify favorable or unfavorable trends with respect to the training curriculum and the organization's goals and objectives.
* Measurement information can help management identify gaps and give them the tools to decide whether to stay the course or change direction.
Levels of Evaluation
There has been considerable attention devoted to the levels of measuring training and development processes. The most noted model is Donald L. Kirkpatrick's four levels of evaluation. This model was developed in 1959 and since then, we have realized significant progress in our understanding of evaluation. For example, Jack Phillips has built upon Kirkpatrick's model by adding a fifth level that focuses specifically on ROI. Also, recent research by Kurt Kraiger and his colleagues (1993) has greatly enhanced our understanding of learning outcomes.
Level 1: Reactions and Planned Action
Question: How did participants respond to the training?
Reaction measures, also known as "smile sheets," are the most commonly used form of evaluation. Reaction measures assess how participants responded to the training class, event, or materials. Warr and Bruce (1995) describe three kinds of reactions that are measured:
* Enjoyment of training (emotional reaction"I found this training program to be enjoyable."
* Usefulness of training (perceived value) -"What level of value does the training content have...