Cost value relationship in training


General observation should be overlooked as a means of training evaluation. The immediate supervisor is often a good judge of the skill level of his subordinates. For on-the-job training programs, the supervisor is, in effect, the judge of his or her own efforts.

If the supervisor is treated as a part of the professional management of the organization and is properly selected and trained, this self-analysis and appraisal can be quite accurate and objective. The efficient supervisor observes accurately the level of skill and knowledge acquired by the trainee during the training programs. He also observes how effectively the trainees apply the acquired skill and knowledge to the present and future jobs.

Human resources factors:

Training program can also be evaluated on the basis of employee satisfaction which in turn can be viewed on the basis of:

1. Decrease in employee turnover.
2. Decrease in absenteeism.
3. Decrease in number and severity of accidents.
4. Betterment of employee morale.
5. Decrease in grievance and disciplinary cases.
6. Reduction in time to earn piece rates.
7. Decrease in number of discharge or dismissals.

Cost of training includes cost of employing trainers, and trainees, providing the means to learn, maintenance and running of training centers, wastage, low level of production, opportunity cost of trainers and trainees etc. The value of the training includes increased value of human resources of both the trainee and trainer and their contribution to raise production, reduce wastage, breakage, minimization of time requirement etc.

Cost-value relationship of a training program or a training technique is helpful in: (a) determining the priorities for training (for present and potential managers, age structure of the trainees etc) , (b) matching the employee and job through training, (c) determining the work of management sacrifices like time taken by training program, non-availability of staff for production during training period etc (d) choosing the right training method.

Any one of the possible combination of the methods of training evaluation listed below can be used by an organization for evaluation depending upon the need and convenience. The various methods of training evaluation are:

1. Immediate assessment of trainees’ reaction to the pro-gram.

2. Trainees’ observation during training program.

3. Knowing trainees’ expectations before the training program and collecting their views regarding the attainment of the expectations after training.

4. Seeking opinion of trainee’s superior regarding his/her job performance and behavior before and after training.

5. Evaluation of trainee’s skill level before and after training program.

6. Measurement of improvement in trainees on the job behavior.

7. Examination of testing system before and after sometime of the training program.

8. Measurement of trainee’s attitudes after training program.

9. Cost-benefit analysis of the training program.

10. Seeking opinion of trainee’s colleagues regarding his/her job performance and behavior.


In the immediate sense, the specific course of training can be evaluated in terms of written and performance teats. The test is supported by a sample of what the trainee knows or can do. Successful accomplishment of the tests would indicate successful training. But the true test is whether or not has been learned in training is successfully transferred and applied to the job. It is dangerous to rely upon tests alone to demonstrate the true value of training. Performance appraisal on the job before and after training may be supplemented to the tests. Cost-Value
Relationship must also be taken into account to assess the effectiveness of the training. Cost factor in training should be taken into consideration in evaluating the training effectiveness. Cost of various techniques of training and their value in the form of reduced learning time, improved learning and higher performance can be taken into account.

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