A Study on Corporate Training Effectiveness Vidya Nandagopal

Chapter I: Training Effectiveness - An Overview

1.1 The Training Scenario and Shifting Paradigms

In recent times an increasing concern for job satisfaction has developed into an awareness of
organizational climate and subsequently organizational culture. There is a move from a
narrow focus on training to a broader concern for development. Even the worGWUDLQLQJLV
coming to be slowly replaced by the word /HDUQLQJ DQG 'HYHORSPHQW  A bottom line
contribution to organizational effectiveness is today being viewed as more important than
cost cutting. Organizational expectations from training have shifted dramatically with a
strong emphasis on the need to justify the cost of training based on ROI as well as its impact
on organizational effectiveness in the post training period. However even now, most studies
on evaluation still depend on immediate after training results. The figure 1.1 below shows the
ideal steps for the training process that should be followed.

Fig: 1.1 - The Training Process

Step 1
Identify the
Needs

Step 4
Evaluate the Step 2
Training Design the
Training

Step 3
Implement the
Training

Fig 1.1 Source: Naik, Pandu.G.(2007), Training and Development-Text Research and Cases, New Delhi,
Excel Books.

Doctoral Thesis SNDT Womens University, MUMBAI 1

A Study on Corporate Training Effectiveness Vidya Nandagopal

As is evident from fig 1.1 , the training process is incomplete without the evaluation
component. A wide gamut of issues and events that take place before, during and some much
after the training contribute either directly or indirectly to training effectiveness. The term
HRM has gained increasing currency in the eighties in organizations and business schools in
the US where the concept and practice are widely held to have developed out of Personnel
Administration. The work of Mahoney and Deckop identify the following distinctive features
of HRM:

x Concern for job satisfaction has developed into an awareness of organizational

climate and subsequently organizational culture.
x A bottom line contribution to organizational effectiveness is viewed as more
important than cost cutting.
x There is a move from a narrow focus on training to a broader concern for
development. Organizations are now more concerned about effectiveness than cost
cutting and there is a move from mere training to a concern for development. Thus it
LV H[SHFWHGWKDWLQ IXWXUHWKHUHZLOOEHPRUHIRFXV RQRXWFRPHEDVHGWUDLQLQJDQG
use of metrics that can help measure outcomes.

A 1988 ASTD poll found that only 20% of American companies evaluated in terms of
training outcome to the organization. Similarly a National survey in UK showed that only
19% of the respondents attempted to assess the benefits of their training and an even lower
percent did cost benefit analysis. (Source: Sloman Martyn, 1996, A Handbook of Training
Strategy) Training programs are probably the most passive and subtle and yet the most
effective method for cultivating new values and introducing change among employees. The
most pressing need of the hour is the development of effective strategies for evaluating the
training programs and thus ensure their contribution to organizational success.

The current decade is seeing deep changes in the HR area. Team work alliances and mergers
are the buzz words. Training also will need to fall in place with these emerging changes.
Today we are moving towards flatter organizations with taskforces and informal work
culture. We are seeing executive and upper management levels disappear. We see more
management coalitions, more teams and frontline decision making. Leveraging the
complementary skills of culturally diverse and multidisciplinary teams will make training a
complex and necessary activity in the years to come.

Doctoral Thesis SNDT Womens University, MUMBAI 2

A Study on Corporate Training Effectiveness Vidya Nandagopal

We will slowly but surely move towards the creation of learning organization. Also now
training is seen to be playing a major role in the strategy of the organization. Today the
ability to apply knowledge is in itself considered a competitive advantage as much as product
or branding. Today training has moved from satisfying trainees to improving organizational
performance. Thus evaluating the training becomes a critical component in this new scenario.
(Source: Nilson Carolyn. D, 2003, How to manage Training: A Guide to Design and
Delivery for High Performance)

While in the 1800s US was largely an agrarian economy, today almost 2/3rds of US
employees collect, process produce and sell information products and services. The shift from
an agrarian to an industrial society to an information society has had a significant impact on
training and development. Where trainers were at one time primarily concerned with helping
WUDLQHHV GHYHORS KDUG VNLOOV RU PHFKDQLFDO RU PDQXIDFWXULQJ skills today they are
LQFUHDVLQJO\ KHOSLQJ WUDLQHHV GHYHORS VRIW VNLOOV needed to support the information and
service oriented economy. Rest of the world is also following the US in this trend.
Throughout the business community, organizations are becoming both smaller and flatter,
with fewer clear lines of command. We are becoming comfortable with coalition problem
solving, the influence of networks, and with a kind of business culture that values group
effort through work teams, ad hoc taskforces, and advisory groups. In training management
especially, we are finding a wide diversity of managerial titles and job responsibilities, more
management coalitions and advisors, more teams, and front-line decision making. (Source:
Sloman Martyn, 1996, A Handbook of Training Strategy)

Today in some technologically fast paced areas training is becoming learner centric and
usage of multiple approaches to training is becoming common. These could include self
paced learning, e-learning, coaching, mentoring etc. This is pushing such organizations to
become learning organizations. Consider some of the turn of the century findings from a
study conducted by Forrester Research and John Caroll University in 2001:

x We send 1.1 trillion email messages worldwide annually

x We send 3 billion email messages daily
x We spend on an average 50 minutes reading emails
x We spend on an average 60 minutes replying to those emails.

Doctoral Thesis SNDT Womens University, MUMBAI 3

A Study on Corporate Training Effectiveness Vidya Nandagopal

Face to face customer service transactions are a thing of the past. Another changing trend in
the training business is in the way that training is being delivered. Traditionally trainers
worked with trainees in real time and space by being face to face with the trainees. Today we
also have mediated forms of learning like e learning, teleconferencing, teletraining etc. The
ASTD reports that today teletraining or e-training accounts for 10.5% of all training.

Most HR professionals view themselves as people changers and not business improvers. Thus
training has tended to be menu driven i.e. dependent on provider capability rather than
organizational needs. We must understand the new adage that all of Training and
Development activities exist to make the organization more effective. Both HR departments
and line managers need to keep this focus in mind. Particularly HR professionals are being
pushed by the economic conditions to be more and more business driven in recent times than
they have ever been in the past. Organizations today understand the need to put training as an
organization centered activity rather than a trainer centered activity that it used to be in the
past.

Today as a corollary to the above mentioned changes, top management commitment to the
purpose of training and their contribution in developing training strategies especially those
linked to results are getting to be recognized as one of the necessary ingredients for the
success of training initiatives. Training is no longer the reserve of the HR department alone.
It is slowly inching towards the boardroom and becoming an organization centered activity.
Due to a number of research studies carried out on this topic, degree of organizational support
along with individual readiness are being touted as some of the key factors on which training
success depends. These two factors have a bearing on the processes before, during and after
the training event and thus the outcomes from the event. Today it is also being believed that
organizations that encourage risk taking and afford opportunity to learn by making mistakes
will benefit most from training

Doctoral Thesis SNDT Womens University, MUMBAI 4

A Study on Corporate Training Effectiveness Vidya Nandagopal

1.2 Current Challenges

x A National survey in UK showed, only 19% of respondents attempted to assess
the benefits of training they undertook. Although US practices seem more
advanced, it is worth noting that a report by Carnesville and Schulz for the
American Society of Training and Development (ASTD) on the ROI of training
also painted a bleak picture. A 1988 ASTD poll found that only 20% evaluated in
WHUPVRIWUDLQLQJVHFRQRPLFHIIHFWRQWKHRUJDQL]DWLRQEven in a global sense we
have a long way to go in the area of outcome based evaluation of training.

x The orientation of the HR professionals towards more subjective ways of doing

things rather than work with metrics is perceived as a major obstacle. This is
further compounded by lack of long term perspective among professionals in the
UAE.. Metrics rely on information and history of data thereby requiring long term
commitment by the organization and HR professionals.

x Even in a global sense we have a long way to go in the area of outcome based
evaluation of training. Line managers do not often view Training & Development
as a means of improving their business performance as much as they look at
technology, systems design and resource planning.

x Most trainers and training organizations in the UAE are busy making the training
happen. Mostly no pre training evaluation is done thus making it difficult to know
if the changes are indeed due to training or some other reasons like a change in
management policy, or individual attitude etc.

x With so much being spoken about the need to align training with business
outcomes and the advent of outcome based training, there comes a need to have a
more proactive approach towards developing the training assessment or the TNA.
7UDLQLQJLQWRGD\VVFHQDULRQHHGVWREHFROODERUDWLYHO\GHVLJQHGDQGVWUDtegically
aligned to the business needs and outcomes and this calls for a fresh new approach
towards developing TNA. Ultimately the seeds of training effectiveness are sown
in the stage of TNA development and hence we need to start right at the beginning
of the training process to get our act right.

Doctoral Thesis SNDT Womens University, MUMBAI 5

A Study on Corporate Training Effectiveness Vidya Nandagopal

1.3 The Training Environment

Figure 1.2 below depicts the training cycle elaborating on the steps involved. All these are
performed essentially by the triad, namely the trainer, the organization and the trainee as
mentioned below:

Fig:1.2 - Training Cycle

Identification of Training Needs

Develop Training Objectives

Design Training
Measure Curriculum
Training Results

Design/ Select
Training

Conduct Training Design Training

Programme Methodology

Source: Rao, P.L,2008,Enriching Human capital through training and development, New Delhi.

a) The Trainer: The trainer indeed plays a critical role in ensuring training
effectiveness. He needs to keep in mind among other things the overriding culture of
the organization against which the training has to be conducted. Thus the choice of
content and process as related to the culture needs to be researched by the trainer so as
to achieve training outcomes. The trainer can literally make or break the event as he
has a majority of the factors under his umbrella to work on.

b) The Trainee: Trace, Bruce and Michael, Cornell and their team conducted interviews
with 21 training and HR professionals from 10 diverse service sector organizations of
varying size to find out what were the external factors that affected training. They
came upon 2 main factors viz. Individual characteristics and Work environment.

Doctoral Thesis SNDT Womens University, MUMBAI 6

A Study on Corporate Training Effectiveness Vidya Nandagopal

,W VHHPV REYLRXV WKDW WKH WUDLQHHV DWWLWXGH ZRXOG DIIHFW KLV SUHSDUHGQHVV IRU D
particular program and the rewards and incentive system may to some extent
influence the learning transfer process. It is also important to assess whether the
employees have the personal characteristics (ability, beliefs and motivation) necessary
to learn the program content.
c) The Organization: Although managers are not often trainers, they play an important
role in influencing employee readiness for training.Managers can support the training
initiative by laying stress on the application of training content to their jobs and
ensuring that employee motivation to learn is as high as possible.. Literature supports
the view that the greater the level of support from the manager, the more likely that
transfer of training will occur.

1.4 Related HR Processes and Status of Training

Tichy et al. (1982) define HRM as the process by which individuals are recruited into the
organization to perform a specific task such as performance must be monitored, and rewards
must be given to keep individuals productive. According to the authors, there are four
dimensions of HR, including selection, appraisal, rewards, and development.

Gupta and Singhal (1993) conceptualize HRM practices along four dimensions, including
human resource planning, performance appraisal, reward systems and career management. In
order to improve the quality of human capital, the importance of human resource
management (HRM) strategies cannot be ignored. Hence, how organizations establish mature
HRM systems becomes an important issue in the contemporary business environment.

Doctoral Thesis SNDT Womens University, MUMBAI 7

A Study on Corporate Training Effectiveness Vidya Nandagopal

1.5 The Role of TNA and its Current Status (Globally v/s UAE)
For training to be effective, it is necessary to discern not only the training needs of the
individual and the group but also how their needs fit the overall organizational objectives.
Researchers and commentators globally doubt whether managerial hierarchies recognize the
importance of the relationships in training initiatives and doubt whether they have the will or
ability to carry it out.
Fig: 1.3 - The Needs Assessment Process

Person Analysis
x Person Characteristics
x Input
x Output
x Consequences
x Feedback

Organizational Analysis
x Strategic Direction
x Support of Managers, Do We Want to Devote Time
Peers, and Employees for and Money for Training
Training Activities
x Training Resources

Task Analysis or Competency

Model
x Work Activity (Task)
x Knowledge, Skill, Ability,
Personal Capability
(Competency), Conditions
under Which Task are
Performed

(Source: Noe, A. Raymond,2008, Employee Training and Development, Tata Mc Graw Hill, Sp. Indian
Edition.)
An integral part of analyzing training needs is recognizing what will fit the company culture
as well as company strategy and objectives. The training scheme that suits any one company
may not be suitable for another. It has been observed that the more detailed the TNA, the
more effective the training is likely to be. Since training plays a very crucial role in
developing Knowledge, skills and attitudes of the employees, the identification of what has to
be learnt cannot be left to chance. (Source: Dalziel Stuart, 1996, Handbook of Training
and Development)

Doctoral Thesis SNDT Womens University, MUMBAI 8

A Study on Corporate Training Effectiveness Vidya Nandagopal

Nowadays a TNA needs to do more than just describe what should be learnt. It should also
identify and assess the wider factors that have a bearing on training effectiveness like for eg.
Characteristics and circumstances of the learners as well as the opportunities and constraints
present in the work environment. It has been observed that the more detailed the TNA, the
more effective the training is likely to be. Needs Assessment typically involves:

x Organizational Analysis
x Person Analysis
x Task Analysis

Fig: 1.4 - Cause and Outcomes of Needs Assessment

Reasons or 3UHVVXUH3RLQWV What is the Context? Outcomes
x What Trainees Need to
x Legislation
Learn
x Lack of Basic Skills
Organization
x Who Receives Training
x Poor Performance Analysis
Task In What Do x Type of Training
x New Technology
Analysis They Need
x Frequency of Training
x Customer Requests Training?
x Buy versus Build Training
x New Products
Person Decision
x Higher Performance Analysis
x Training versus Other HR
Standards
Options such as Selection or
x New Jobs
Job Redesign
Who Needs Training? x How Training Should be
Evaluated

(Source: Noe, A. Raymond,2008, Employee Training and Development, Tata Mc Graw Hill, Sp. Indian
Edition.)

The above figure 1.4 clearly delineates the causes and outcomes of Needs Assessment. The
outcomes cover a wide range of decisions w.r.t training including the issue of whether
training is the right HR intervention or do you need some other HR initiative.

2UJDQL]DWLRQDO DQDO\VLV H[DPLQHV EURDG IDFWRUV VXFK DV RUJDQL]DWLRQV FXOWXUH PLVVLRQ
business climate, long and short term goals and structure. The purpose of this is to identify
both overall organizational needs and the level of support for training.

Doctoral Thesis SNDT Womens University, MUMBAI 9

A Study on Corporate Training Effectiveness Vidya Nandagopal

This analysis reveals information that plays a major role in determining whether training will
be offered and if yes what type of training will be appropriate under the given circumstances
e.g. ,IODFNRIUHVRXUFHVSUHYHQWIRUPDOWUDLQLQJWKHQDPHQWRULQJSURJUDPFDQEHXVHGLQLWV
place. (Source: Managing Human Resources, Mejia, Gomes Luis. R; Balkin, David;
Candy, Robert. L)

In organizational analysis, managers need to consider the strategic direction that the company
is taking, the training resources at hand and the support of managers and peers required to do
the training. Person Analysis is a process for determining whether employees need training,
who needs training and whether employees are ready for training, It involves determining
whether performance deficiencies result from lack of knowledge /skill/ability or from a
motivational or work design issue. Sometimes training may not be the real answer to the
issue. Training can improve performance only when the trainee is the source of the
performance deficiency, e.g. If declining sales is due to a poor product or high prices or a
faltering economy then sales training will not help.

Task Analysis is an examination of the job to be performed. It focuses on the duties and tasks
of job throughout the organization to determine which jobs require training. These duties and
tasks are then used to identify the knowledge, sNLOOVDQGDELOLWLHV.6$VUHTXLUHGWRSHUIRUP
the job adHTXDWHO\7KHQWKH.6$VDUHXVHGWRGHWHUPLQHWKHNLQGRIWUDLQLQJQHHGHGIRUWKH
job.

According to Gomez R Luis, Balkin David et al (2004), LQWKHLUERRNManaging Human

5HVRXUFHV, the needs assessment phase should typically provide a set of objectives for any
training program that might be developed following the assessment. Each objective should
UHODWHWRRQHRUPRUHRIWKH.6$VLGHQWLILHGLQWKHWDVNDQDO\VLVDQGVKRXOGEHFKDOOHQJLQJ
precise, achievable and understood by all e.g. Booz, Allen and Hamilton map the
competencies needed from entry level to senior management positions to a suite of training
courses. This step also helps determine the employee readiness for training. TNA often stops
at identifying what training needs to be undertaken. Similarly in Pfizer Inc the training is
geared to the competencies that it has identified for jobs from entry level to senior
management. They also mention that whenever possible objectives should be stated in
behavioural terms and the criteria for judgement should be derived from these objectives.

Doctoral Thesis SNDT Womens University, MUMBAI 10

A Study on Corporate Training Effectiveness Vidya Nandagopal

For eg. Supposing that the cause of poor performance is poor interpersonal sensitivity then
LQFUHDVLQJ LQWHUSHUVRQDO VHQVLWLYLW\ does become an imperative. This concept is well
explained in figure 1.5 the training context refers to linkage between training design and
organizational requirement on one hand and environmental factors on the other. The figure
also shows that training context must address the gap between existing KSAs of the employee
and KSAs required for the job at hand.

Fig: 1.5 - Context of Training Design

Organizational
Strategies and Needs

Existing
Knowledge,
Knowledge,
Skills and
Training Skills and
Attitudes
Attitudes of
Required Context
the
for the Job
Employee

Environmental
Compliance and
Competition

Fig 1.3 Source: Naik, Pandu.G. (2007), Training and Development-Text Research and Cases, New Delhi,
Excel Books.

The focus of TNA so far is mostly on the content. However in reality the process of training
also needs to be controlled to get training effectiveness. Relevant and effective learning
arrangements must take into account the needs of learner and the constraints of workplace. In
RWKHUZRUGVDSDUDGLJPVKLIWLVUHTXLUHG:HQHHGWRPRYHIURPZKDWKDVWREHOHDUQWWR
Doctoral Thesis SNDT Womens University, MUMBAI 11
A Study on Corporate Training Effectiveness Vidya Nandagopal

KRZWKHOHDUQLQJFDQEHDFKLHYHG Both in UAE and elsewhere, there is a long way to go in

developing effective TNAs.

1.6 The .LUNSDWULFNV Model for Evaluating Training Effective

Donald Kirkpatrick set out the general principles in 1956 in an article +RZ WR VWDUW DQ
REMHFWLYH HYDOXDWLRQ RI WUDLQLQJ +H EDVLFDOO\ DUJXHG WKDW WKHUH VKRXOG EH  OHYHOV RI
evaluation:

a) Reaction
b) Learning
c) Behavior
d) Results

First at the end of the L & D event, participants should be asked their views on the
effectiveness of the learning experience. According to Kirkpatrick, the happy sheets equate to
/HYHO  RI HYDOXDWLRQ RI WKH .LUNSDWULFNV PRGHO +RZHYHU /HYHO  RQO\ WHOOV XV KRZ WKH
participants felt about the learning event. It is also equally important to establish what was
learnt. Hence both knowledge and skills that were taught need to be tested. One effective way
is a before /after testing of the skills and/ knowledge before and after the event. This achieves
level 2 of the model.

Sometimes people may do well in a learning situation but when they return to their normal
work area, they revert to their usual behaviour and forget to use the new learning that has
RFFXUUHG )URP WKH RUJDQL]DWLRQV SHUVSHFWLYH WKLV LV D ZDVWH VR LW LV LPportant to know
whether transfer of learning has taken place. This according to Kirkpatrick, can be achieved
through questionnaires or interviews with the line manager a few weeks after training .This
UHIHUV WR /HYHO  RI WKH .LUNSDWULFNV PRGHO 7KLV DLPV to test whether the learning that
occurred has been successfully transferred to the work situation. In other words it aims to
PHDVXUHFKDQJHVLIDQ\LQMREEHKDYLRXU)LQDOO\.LUNSDWULFNVth level of evaluation relates
to whether the Learning & Development activity has finally made any impact on the bottom
line of the organization. To achieve this level in evaluation, it maybe necessary to examine
organizational statistics to see for example whether sales targets are met or say customer
service levels have been improved etc depending on the type of training being carried out.

Doctoral Thesis SNDT Womens University, MUMBAI 12

A Study on Corporate Training Effectiveness Vidya Nandagopal

One of the things that has changed since the time of Kirkpatrick is the emphasis that is
nowadays being placed on the reason for evaluating. It is generally being held that if you
know why you are doing something, it becomes easier to do so. CIPD states that there are 4
key reasons why L & D should be evaluated viz.

x Prove the value of training

x Improve the quality of training offered
x Evaluate as a contribution to the learning process.
x Evaluate as a control over the training process.

Kirkpatrick feels that the 4 levels developed by him serve more than the obvious purpose of
evaluating training. They are serving many a times as a model for developing programs. The
business consulting model for training deserves mention here. Many training departments
within organizations offer a wide variety of courses. Instead of developing a coaching
intervention or training based on what they think the need is, they conduct needs assessment,
in which they focus on the need, problem or opportunity. This in turn acts to align the
learning exercise with the actual business need.$OWKRXJKDWRQHWLPH.LUNSDWULFNVPRGHOZDV
one of the only models for evaluating training, today many gaps are perceived by the training
fraternity after using this model almost over the last 4-5 decades. One of the main drawbacks
mentioned is that this model emphasizes the role of the trainer whereas in recent times the
focus is on the learner. Also, the presence of many variables in real life makes the use of
control groups impractical. As a result very often you end up measuring input rather than
output.

)XUWKHUPRUHWKHILUVWOHYHORIPHDVXUHPHQWLQWKLVPRGHOZKLFKLV5HDFWLRQLVRIWHQIODZHG
as it is based on the likes and dislikes of the trainees. Level 2 is worth measuring as it helps
us know if the training objectives have been met. Level 3 which reflects application of
learning is a bit controversial as it happens outside the realm of the trainer. This measurement
can happen only if there is close coordination between the training dept, and the line
management. The fourth measure i.e. the financial impact of training is even more difficult to
measure. It requires establishing benchmarks, commitment from the HR to measuring
performance and presence of historical data.

Doctoral Thesis SNDT Womens University, MUMBAI 13

A Study on Corporate Training Effectiveness Vidya Nandagopal

1.7 Other Models For Evaluating Training

While training has not yet been able to find its pride of place in the organizational setup,
today stakeholders demand a better linkage of training to business needs. It is being felt that
by measuring the results of a program, it can be thus improved to give proven value to
stakeholders and long term value to the organization. Training evaluation whilst being an
often neglected area, can really enhance the status of the HR profession if performed `well.
Several models of training evaluation are enumerated in the table below:

Table 1.1: Models for Training Evaluation

S. No Author and Year Evaluation Criteria

Kirkpatrick (1967, 1987,

1 Four Levels; Reaction, Learning, Behavior and Results
1994)

2 CIPP (Galvin, 1983) Four levels; Context, input, Process and Product

3 CIRO (Warr, 1970) Context, Input, Reaction and Outcomes

Six Stages: goal setting, program design, program

4 Brinkerhoff (1987) implementation, immediate outcomes, intermediate or
usage outcomes, and impacts and worth

Four sets of activities: Inputs, Process, Outputs and

5 Bushnell (1990)
Outcomes

Kraiger, Ford and Salas Three categories of learning outcomes: Cognitive, skill
6
(1993) based and affective.

Five levels: Enabling and reaction, acquisition,

7 Kaufman and Keller (1994) application, organizational inputs and societal
outcomes

Five levels: Reaction and Planned action, Learning,

8 Phillips (1996) applied learning on the job, Business results, return on
investment

Source: Naik, Pandu .G.(2007), Training and development-Text Research and Cases. New Delhi, Excel
Books.

Doctoral Thesis SNDT Womens University, MUMBAI 14

A Study on Corporate Training Effectiveness Vidya Nandagopal

1.8 Gaps between Learning and Practice

Line management in most organizations is often too busy and under too much pressure to
meet deadlines and produce business results, thus the focus gets shifted to short term
performance and results as against long term implementation of training standards. In the
UAE particularly, a number of training initiatives are underway and these tend to force
organizations especially in the public sector to implement those standards.
However this is in sharp contrast to the private sector where performance is the key factor
and the focus is on short term results and performance .According to Martin, Harry. J. ,
(2008), It has been estimated that only anywhere between 10 40 percent of the training gets
never used on the job. Thus the wastage element in training seems pretty high. One of the
main reasons cited for this is the anxiety associated with change.Here the culture of the
organization can play a definitive role in helping and encouraging the person to apply what
he learnt. Another connected issue is the time elapsed between the training event and the time
when the person gets an opportunity to apply it. Many trainers of the opinion that if too much
time elapses the person may forget to use that knowledge or skill that he acquired. Thus it
seems that many workplace issues are instrumental in aiding or hindering the application of
training. A franchise company wanted to use customer service as a competitive advantage
DQG KHQFH RIIHUHG D FRPSUHKHQVLYH WUDLQLQJ RQ &XVWRPHU 6HUYLFH WR LWV IUDQFKLVHHV
However in reality it was seen that only some stores benefited from the training. The reasons
for failure of some were traced as follows: many of the stores were managed by owners who
KDGJURZQXSLQWKHEXVLQHVV+HQFHWKH\KDGWKHLURZQWUDGLWLRQDOZD\VRIGRLQJWKLQJV
and tended to resist changes that training was bringing about e.g. they provided no time for
their teams to meet up or even discuss issues. On the contrary another group of stores within
the same organization experienced dramatic improvement after the program. In these stores,
the owners saw training as an opportunity to bring about change by involving their
employees. They formed and supported teams to work on all processes that affected
customers. They used training to analyse problems and plan long term solutions. In this
connection it is worth noting that training needs to have two distinct perspectives, viz,
x Immediate Requirement
x Long Range Requirement

Doctoral Thesis SNDT Womens University, MUMBAI 15

A Study on Corporate Training Effectiveness Vidya Nandagopal

The figure 1.6 below illustrates the need to differentiate between immediate and long range
training needs. Organizations need to have immediate and long range training plans to take
care of these two distinct requirements.

Fig: 1.6 - Defining Immediate /Long range Training Needs

Current desired level of

performance

Discrepancy Reveals Immediate training needs

Actual level of
performance

Long range training

Discrepancy Reveals needs

(Projected)
desired level of
performance

Fig 1.4 Source: Rao, P.l, 2008, Enriching Human Capital through Training and development, New Delhi.

Transfer of training refers to on the job use of knowledge, skills and behaviours learned in
training. Transfer of training is influenced by the climate for transfer, manager support, peer
support, opportunity to use learned capabilities, technology support, and self-management
skills). Bridging the gap ePSOR\HHVSHUFHSWLRQRIWZRLPSRUWDQWZRUNHQYLURQPHQWIHDWXUHV
KDYHDEHDULQJRQWKHWUDLQHHV motivation to learn. They are situational constraints and Social
Support. The former includes lack of proper equipment, materials, supplies, budgetary
support etc. 6RFLDO VXSSRUW UHIHUV WR PDQDJHUV DQG SHHUV\ willingness to provide feedback
and reinforcement. 7RHQVXUHWKDWWKHZRUNHQYLURQPHQWHQKDQFHVWKHWUDLQHHVPRWLYDWLRQWR
learn, managers need to:

x Provide materials, time, information and work aids necessary for the employee
x Speak positively about the training event to the employees
x Praise employees when they practice skills learnt

Doctoral Thesis SNDT Womens University, MUMBAI 16

A Study on Corporate Training Effectiveness Vidya Nandagopal

x Give employees time and opportunity to practice and apply new skills or behaviour
learnt to their work setting.
2QH ZD\ WR WKLQN DERXW WKH ZRUN HQYLURQPHQWV LQIOXHQFH RQ WUDQVIHU RI WUDLQLQJ LV WR
consider the overall climate of transfer. Climate of transfer includes characteristics that
facilitate or inhibit the use of trained skills or behavior. These characteristics include manager
and peer support, opportunity to use skills, and the consequences of using learned
capabilities.

What Managers should do to support training?

x Understand the content of training

x Know how training relates to what you need employees to do
x In performance appraisals, evaluate employees on how to apply training to their jobs
x 6XSSRUWHPSOR\HHVXVHRIWUDLQLQJZKHQWKH\UHWXUQWRZRUN
x Ensure that employees have the equipment and technology needed to use training
x Prior to training discuss with employees how they plan to use training
x Recognize newly trained employees who use training content
x Give employees release time from their work to attend training
x Explain to employees why they have been asked to attend training
x Give employees feedback related to skills or behaviour they are trying to develop
x If possible be a trainer
Source: Based on A. 5RVHWW7KDWZDVDJUHDWFODVVEXW Training and Development, July 1997, P. 21

1.9 Benefits of Evaluating Training

We need to evaluate the program for 3 reasons;

a) To justify the existence and budget of the training department

b) To decide whether to continue with the program
c) To gain information on how to improve the program. Examining the outcomes of a
program helps in evaluating its effectiveness. These outcomes should be related to
the program objectives.
Examining the outcomes of a program helps in evaluating its effectiveness. These outcomes
should be related to the program objectives, which help trainees understand the purpose of

Doctoral Thesis SNDT Womens University, MUMBAI 17

A Study on Corporate Training Effectiveness Vidya Nandagopal

program. Training outcomes can be categorized as cognitive outcomes, skill- based

outcomes, results, and return on investment.
Often when there is a lot of material and data to sift through while training, learners may not
have a grip or be sure of what they have learnt. Evaluating training makes them reflect on
what they have learnt and may even help them to consolidate the learning.
Source: Mc Farlane A Donovan, 2006.

1.10 Challenges in Evaluating Training

It is difficult to quote a golden rule for the design of the evaluation process other than the fact
that it must be congruent with the type of training and development to be evaluated. Too
often one form of evaluation is used with every type of training, whether it is relevant or not.
The basic principle behind any evaluation design is that the process must approach the
training and learning objectives with a view to confirming whether they have been achieved
RU QRW 7KH &,3'V / ' DQQXDO VXUYH\ UHSRUW  LGHQWLILHV WZR PDLQ EDUULHUV WR
evaluation of learning outcomes as lack of resources (76%) and lack of time (67%). They also
feel that learning can deliver more value than it demonstrates. They feel that L & D
professionals are too busy making the training event happen .Very often the difficulty in
evaluating training is due to the lack of clearly stated outcomes and business outcomes with
which to compare and benchmark results. +HUH WKH UROH RI WKH +5 GHSDUWPHQW DQG LWV
initiative in developing training plans is tested amply.

Not all programs lend themselves to evaluation easily. The more abstract the content, the
more difficult the measurement, e.g. It may be easy to measure the effectiveness of a
technical SURJUDP 8QGHUVWDQGLQJ (OHFWULFDO VZLWFKERDUG RSHUDWLRQV WKDQ LW ZRXOG EH WR
HYDOXDWH D SURJUDP RQ VD\ /HDGHUVKLS DQG &KDQJH 0DQDJHPHQW Also if organizations
think that they can use the same approach to evaluate different types of programs they will be
VDGO\PLVWDNHQ7KHDWWLWXGHRIRQHVL]HILWVDOO GRHVQW work here.* Limited research that
has taken place on this topic shows that the more customised the approach, the more
successful it would be. Each type of training needs to be studied for the desired outcomes
and analysed and fitted with the best ways of evaluating it keeping in mind the type of
training, type of organization, and type of people being trained. Too often one form of
evaluation is used with every type of training, whether it is relevant or not. Usually the
evaluation form in these cases is neither relevant nor valid. The basic principle behind any

Doctoral Thesis SNDT Womens University, MUMBAI 18

A Study on Corporate Training Effectiveness Vidya Nandagopal

evaluation design is that the process must approach the training and learning objectives with a
view to confirming whether they have been achieved or not.
An absolute essential for any training program must be the determination of terminal
objectives sought from the program. Otherwise the evaluators will not know what they are
supposed to evaluate and which methods of evaluation will show if the program has been
successful. It is only when this information is available that an evaluation format can even be
considered. In training and development the starting and finishing points are the setting and
achieving of objectives: evaluation is inexorably linked to these, and in fact, extends beyond
them by continuing beyond the training into the workplace. The basic principle behind any
evaluation design is that the process must approach the training and learning objectives with a
view to confirming whether or not they have been achieved, and subsequently implemented
in an effective manner.

Here the orientation of HR professionals towards rather subjective ways of doing things is
being viewed as a major obstacle. There is lack of knowledge as well as interest and to some
extent attitude in working with metrics. Most evaluation is currently mostly at the reaction
level i.e. Checking the reaction of respondents towards the training event. Most HR
professionals see themselves as people changers rather than business improvers. Thus the
concept of measuring payback GRHVQW sit easy on their shoulders. T & D tends to be menu
driven rather than being based on real organizational needs. Also line managers do not still
give that importance to L & D activities as they give to issues like technology, systems and
resource planning. In order to evaluate training effectiveness the HR and line management
may need to put in joint efforts. First of all they may have to start with defining the
benchmarks/ criteria against which the training effectiveness will be measured. In order to do
higher level evaluations, considerable time, energy and resources need to be committed. In
reality the L & D Teams in organizations seem to be busy just making the event happen.For
years we have evaluated training by focusing on the trainer. Thus organizations continue to
EHVWXFNEHWZHHQ/HYHOVDQGRIWKH.LUNSDWULFNVPRGHO. They need to move to levels 3
and 4 if they are to go for outcome based approach.
Source: Flynn, Gillian.(1998),The Nuts and Bolts of Valuing Training.

Doctoral Thesis SNDT Womens University, MUMBAI 19

A Study on Corporate Training Effectiveness Vidya Nandagopal

1.11 Methods for Measuring Training Effectiveness

Source: Campbell and Clifton P, (1995), A Primer on determining the effectiveness of training - Part 2.

x ROI METHOD: This method is probably most appealing to higher management as

they are accustomed to think in terms of ROI. In this method you have to first
calculate the direct and indirect costs associated with the program. Then gather
baseline measures of the outcomes before training and after training. Next analyze the
effect of training on these outcomes. Once the outcomes are analyzed the ROI can be
established.ROI method is suitable only if it is possible to quantify outcomes and
baseline measures can be gathered before and after training. This method appeals to
higher management and makes training look like a value added service to them.

x COST BENEFIT RATIO: In this method the line managers are asked to provide an
informed estimate of the annual operational savings they expect for their dept. They
are also asked to rate their level of confidence that the training will be responsible for
the savings. The estimated operational savings are then multiplied by the confidence
percentage to obtain a prediction of the total cost savings from training. This method
shows whether the training will be worthwhile before the training is developed and
delivered.

x BOTTOM LINE EVALUATION: In this method the value added by training to

HDFK WUDLQHHV SURGXFWLYLW\ LV GHWHUPLQHG DQG WKH total value is also calculated. The
total value added to the organization is compared to the full cost of training to
determine if training was a worthwhile investment. The bottom line evaluation
method uses job analysis along with % of time spent on those tasks in order to
calculate per task compensation. This method also appeals to higher management as it
links job task performance with their productivity.

x PAYBACK PERIOD METHOD: 7KLVPHWKRGDQVZHUVWKHTXHVWLRQKRZORQJZLOO

it take for the training to pD\IRULWVHOI"+RZHYHUWKLVPHWKRGLVUHFRPPHQGHGRQO\
as an initial screening tool. If the payback period is short then another method like
ROI or cost benefit or bottom line evaluation must be used to examine the value of
training and its worth and merit to the organization.

Doctoral Thesis SNDT Womens University, MUMBAI 20

A Study on Corporate Training Effectiveness Vidya Nandagopal

1.12 Role of Individual Characteristics in Measuring Training

Effectiveness
Although managers are often not trainers they play an important role in influencing employee
readiness for training. Various research studies have shown that motivation is related to
knowledge gain, behavior change or skill acquisition in training programs. Managers need to
ensure that employees motivation to learn is as high as possible. They can do this by ensuring
HPSOR\HHVself-efficacy, make sure that they understand the benefits of training and by being
aware of the training needs, career interests and goals of the employees.

Self-efficacy is the HPSOR\HHV belief that they can successfully learn the content of the
training program. The training environment may be potentially threatening if the area of
training is new to the employee and outside his domain area. Managers can increase self-
efficacy by providing as much information about the program and educating the trainee on
the purpose of the program prior to the actual event. They could also cite examples of success
VWRULHVRIWKHLUSHHUVZKRDWWHQGHGVLPLODUSURJUDPV(PSOR\HHVPRWLYDWLRQWROHDUQFDQDOVR
be increased by communicating to them the job related, personal and career benefits that arise
out of going for that program. 0DQDJHUVQHHGWRHQVXUHWKDWHPSOR\HHVPRWLYDWLRQWROHDUQLV
DV KLJK DV SRVVLEOH 7KH\ FDQ GR WKLV E\ HQVXULQJ HPSOR\HHV self-efficacy. Managers can
increase self-efficacy by providing as much information about the program and educating the
WUDLQHH RQ WKH SXUSRVH RI WKH SURJUDP SULRU WR WKH DFWXDO HYHQW (PSOR\HHV PRWLYDWLRQ WR
learn can also be increased by communicating to them the career benefits that arise out of
going for that program.

1.13 Role of Ethnicity and Culture on Training Effectiveness

Organizations spend as much as US$200 billion annually on training and development;
however, much of this investment appears squandered on ill-conceived or poorly
implemented interventions. Culture has been described as "one of the most powerful and
stable forces operating in organizations" (Schein, 1996, p. 231). Definitions of culture vary
but typically include concepts such as shared beliefs, values, and assumptions that are
reflected in attitudes and behavior (Kopelman, Brief, & Guzzo, 1990). There has been scant
scholarly attention to the influence of organization culture on training effectiveness (Palthe
& Kossek, 2003).

Doctoral Thesis SNDT Womens University, MUMBAI 21

A Study on Corporate Training Effectiveness Vidya Nandagopal

1.14 How does Adult Learning Differ

Malcolm Knowles who was considered the father of Adult Education popularized the term
$QGUDJRJ\Andragogy is a term coined by Malcolm Knowles, a leading author in the field
of adult education. Andragogy is the science and art of teaching adults. An Anagogical
approach is self-directed and is based on the Greek word DQHU ZKLFK PHDQV DGXOW In
FRQWUDVW3HGDJRJ\LVWKHDUWDQGVFLHQFHRIWHDFKLQJFKLOGUHQ,Q*UHHN3DLGPHDQVFKLOG
At a time when adult educators were in search for a theory exclusive to themselves, Knowles
described 4 basic assumptions about adult learners that distinguish them from children as
under:

i. Adult learners need to know why they are learning something.

ii. Adult learners bring many years of learning and experience to the class room.
iii. Adults seem to be self or internally motivated to learn.
iv. Adults know their own deficiencies and they know what to learn in order to be
successful. Adults need relevant learning. Adult learners in other words need to know
why they are learning something. It needs to be relevant and related to them. Children
on the contrary often learn for learning sake. With adult learners, the trainers assume
prior knowledge of things as they bring their prior skills and experience to the table.
The third assumption relates to motivation. Adult learners are internally motivated
because of a personal sense of satisfaction or accomplishment. They often want to
learn so as to enrich their lives or to make it more meaningful. Adults are self-directed
learners. They return to the classroom to cope with life changing events like a new
job, a new position, a promotion or sometimes a loss of job. Also adult learning is
problem centred or application oriented.

Doctoral Thesis SNDT Womens University, MUMBAI 22

A Study on Corporate Training Effectiveness Vidya Nandagopal

Table 1.2: Andragogy and Training Applications

Conduct a needs assessment, train employees for
1 Adults need relevant training
their in- baskets
Adults bring experience into the Recognize trainees work experiences, Give them the
2
classroom opportunity to train less experienced trainees
Set realistic expectations
Adults are internally motivated to
3 Use the momentum to pull adult learners through
learn
obstacles that they face while learning
Adults know what they need to Encourage self-directed learning
4
learn Make training learner centered
Ask trainees to forward problems they would like
5 Adult learning is problem centered
the training to address

The Knowles theory of andragogy stirred up much debate among educators. Some teachers
even started to feel that children learnt better the andragogical way. According to Sharon
0HULDPDSURIHVVRURI$GXOW(GXFDWLRQ,IDQLQVWUXFWRU goes into a learning situation with
adults and has some notion of what Knowles is talking about the encounter is going to be
PRUHEHQHILFLDOWRWKHOHDUQHUVDVZHOODVWRWKHLQVWUXFWRU

According to Harrison, Rosemary (2006) in the last decades of the 20th century, much
research into adult learning in work organizations began to make itself felt in the industry
drawing attention to the fact that to train is not essentially to achieve learning. In other words
only a learner can learn. It is now being understood that learners are influenced by not just
internal cognitive processes but also by relationships with others. It is being understood that
the ever changing outcome of learning is itself an on-going stimulus for learning. Knowledge
and learning are thus viewed as dynamically interactive processes Social interactions are a
part of our daily experience and many psychologists are focused on that experience as being
central to the individual learning process.

David Kolb stated that for true learning to take place, we need to have an experience, reflect
upon that experience, make sense of it and finally apply the theories to our lives by planning
what we would do next time we are in a similar situation. The 4 stages are depicted in figure
1.7 below. Planned development processes involve bringing all the four stages into
consciousness and ensuring that the process of learning is completed. Learning is said to be
inhibited when a learner misses any one of the 4 stages.

Doctoral Thesis SNDT Womens University, MUMBAI 23

A Study on Corporate Training Effectiveness Vidya Nandagopal

Fig.1.7 - )RXU6WDJHVRI.ROEV&\cle

Experiencing

Applying Processing

Generalizaing

Source: Rao, P.L , Enriching Human Capital through Training and Development, 2008, New Delhi.

Arising out of his research Kolb developed the learning style inventory which is a diagnostic
instrument that identifies one of the four learning style preferences viz.

x Divergers
x Assimilators
x Convergers
x Accomodators

Divergers: These people prefer observing a situation rather than taking action. They tend to
be imaginative, innovative and concerned with personal relevance. They need to know how
new information relates to their prior experiences before they are receptive to learning new
information.

Assimilatos: These people value sequential thinking and trust expert opinion. They enjoy
collecting data and then organizing and assimilating it into a concise and logical form. These
SHRSOH DUH OHVV LQWHUHVWHG LQ OHDUQLQJ IURP RWKHUV H[SHULHQFHV EXW DUH PRUH LQWHUHVWHG LQ
learning from experts who have done their actual work.

Convergers: These people are always looking for utility in ideas and theories. They approach
learning from a problem solving perspective> they prefer analysing problems and testing
theories to find solutions to problems.

Doctoral Thesis SNDT Womens University, MUMBAI 24

A Study on Corporate Training Effectiveness Vidya Nandagopal

Accomadators: These people learn primarily by trial and error and hands on field
experience. They rely more on their gut instincts and their own technical analysis when
solving a problem. These people are also likely to seek others for their opinions and
knowledge.

All these theories collectively can help the trainer in planning their training to help the learner
learn better and retain more of what is learnt. Today the challenge is mainly in these areas.
Today we have clearly understood that training effectiveness is a result of many things being
done right. Trainers would have to stop assuming that everyone learns he way they do. We
RIWHQKDYHDWHQGHQF\WRWUDLQ RWKHUV LQ ZD\V WKDW ZHSUHIHUWR OHDUQ'RQWDVVXPHWKDWDOO
learners learn the way you do. Trainers need to be careful especially not to imitate ineffective
trainers who may have trained them. They need to use a variety of training techniques and
methods to tap into different learning styles.

There are 3 possible techniques suggested that can help the trainer use learning style to take
care of learner differences in learning style viz.

x Matching: Here trainees are instructed in their own learning styles. This requires
prior knowledge of learner preferences by the trainer
x Bridging: Here trainers instruct trainees using their own preferred style but when an
LQGLYLGXDO VWXGHQW KDV D SUREOHP 7KH WUDLQHU DFFRPPRGDWHV WKDW VWXGHQWV OHDUQLQJ
style
x Style flexing: The teacher teaches trainees in their own learning styles as well as
challenges them to learn in ways different from their preferred style

Doctoral Thesis SNDT Womens University, MUMBAI 25

A Study on Corporate Training Effectiveness Vidya Nandagopal

Table 1.3: Training Applications and Learning Styles

Learning Style Definition Training Application

Learning by observing rather than Use Buzz Words, conduct
Divergent Learner
taking action Brainstorming sessions
Present traditional lectures.
Assimilating Learner Learning by listening to experts.
Invite Guest speakers
Introduce new problem
Learning by doing the work solving processes, Use
Convergent Learner
themselves problem based learning
methods
Learning by doing and by working Conduct experiments, Place
Accommodating
in the field with others, solving trainees in the field, organize
Learner
problems based on gut instinct internships
Source: Training and Development, Beebe, Steven; Mottet, Timothy; Roach, David; Pearson Education
Inc, 2004, Chapter 2 , pg 42

Terence Jackson, (2004) LQ KLV ERRN  International HRM- $ FURVV FXOWXUDO DSSURDFK
talking of transferability across cultures quotes Weiner Hughes, (1986) who qualifies the
learning process described by David Kolb which emphasises four aspects viz.

x Concrete experience-Due to different backgrounds and experience for people from

different cultures, their readiness for classroom learning maybe different
x Reflective Observation Due to different behaviour patterns and socialization, people
from different societies and cultures acquire different bodies of knowledge.
x Abstract Conceptualization-Because people from different cultures tend to have
different cognitive frameworks, this may lead them to misinterpret info or focus on
irrelevant information.
x Active Experimentation-Behaviour differences between cultures may lead to
misinterpretations and misattributions of the meaning of such behaviour outside of the
cultural context. Thus leading to confusion and frustration. However no empirical
verification of these observations was offered by Hughes Weiner. However Allison
and Hayes (1988) undertook a cross cultural study using the Honey and \Mumford
instrument and identified cross cultural differences between the British, Indian and
East African Managers in a broad learning style. However this study fails to provide
adequate working explanation of these learning differences. It is perhaps unfortunate
that the experimental model largely reflects approaches to management education and
training accepted in the Anglo Saxon world.

Doctoral Thesis SNDT Womens University, MUMBAI 26

A Study on Corporate Training Effectiveness Vidya Nandagopal

This is based largely on the concept of the independent learner, the instructor as
facilitator and the value of interactive and experiential methods of education. In this
context the author talks of the work undertaken by Traindis, Brislin and Hui (1988)
which seems to challenge the Anglo Saxon approach to training on the basis of cross
cultural differences between collectivism and individualism in Western cultures.

1.15 Status and Nature of HR Practices in the UAE

In general most HR practices have just begun to be seen or practiced in recent times in UAE.
Even then there are some glaring differences that are worth mentioning here. In general there
is a marked difference in the role, content and process of training between private and public
sector. There is also a difference in the way training is conducted in public sector
organizations vis a vis private sector organizations as well as between MNCs and small
trading organizations. Training often is a just in time activity in response to some
organizational crisis to be done and forgotten until the next crisis happens. Mostly there is
hardly any follow up activity post training and almost no pre training preparation .This is
mainly being attributed to lack of time and resources and above all the necessary attitude and
commitment required to carry out such follow up activities.

1.16 Status of Training Measurement Practices in the UAE

Most of the trainers and training organizations in the UAE are too busy in making the training
event happen. Mostly no pre training evaluation is undertaken thus making it difficult to
know if the changes brought about by training are indeed due to training or some other factor
like a change in management policy or individual attitude due to factors outside of the
training event .In any case most evaluations stop at level 1 or maximum level 2 of the
.LUNSDWULFNVPRGHO7KXVLWVHHPVOLNHUAE in general has a long way to go in the area of
outcome based assessment.

Doctoral Thesis SNDT Womens University, MUMBAI 27