Chapter 06 - Training Evaluation
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
6-9
Practical Considerations in Determining Return on Investment
Training programs best suited for ROI analysis have clearly identified outcomes, are not one-
time events, are highly visible in the company, are strategically focused, and have effects that
can be isolated.
Success Cases and Return on Expectations
A. Return on expectations (ROE) refers to the process through which evaluation
demonstrates to key business stakeholders, such as top-level managers, that their
expectations about training have been satisfied.
B. Success cases refer to concrete examples of the impact of training that show how learning
has led to results that the company finds worthwhile and the managers find credible.
IX. Measuring Human Capital and Training Activity
A. Metrics are valuable for benchmarking purposes, for understanding the current amount of
training activity in a company, and for tracking historical trends in training activity.
B. The value of learning activities is best determined through the use of workforce analytics.
Workforce analytics refers to the practice of using quantitative methods and scientific
methods to analyze data from human resource databases, corporate financial statements,
employee surveys, and other datasources to make evidence-based decisions and show that
human resource practices (including training, development, and learning) influence
important company metrics.
C. Dashboards refer to a computer interface designed to receive and analyze the data from
departments within the company to provide information to managers and other
decisionmakers.
Chapter Summary
This chapter provides sound base of knowledge regarding training evaluation, the issues
surrounding it, and how to approach it. Reasons for evaluating training were described, and the
process of evaluating training was outlined. Kirkpatrick’s model of evaluation was explained, as
well as the five major categories of outcomes that can be measured to evaluate training
effectiveness. The six outcomes (reaction, cognitive, skill-based, affective, results, and ROI)
used in evaluating training programs were explained. Good training outcomes need to be
relevant, reliable, discriminate, and practical. Next, threats to both internal and external validity
were discussed. Various evaluation designs were explained with an emphasis on related costs,
time, and strength. Return on Investment (ROI) and cost-benefit analysis were explained, and
examples given. The chapter concluded with a listing of key terms, discussion questions, and
application assignments.