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Human Resource Training Evaluation

Author(s): Vilmantė Kumpikaitė

Journal: Engineering Economics
ISSN 1392-2785

Volume: 5;
Start page: 29;
Date: 2007;
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Keywords: Human resource training | human resource training evaluation | human resource training costs | returns on investment

This paper draws on prior research on human resourcetraining evaluation, including its models, criteria,tangible and intangible benefits of training and return oninvestment.Human resource management (HRM) is the recognitionof the importance of an organization’s workforce asvital human resources contributing to the goals of theorganization, and the utilization of several functions andactivities to ensure that they are used effectively andfairly for the benefit of the individual, the organization,and society. Today human resource management has aunique and timely opportunity to improve productivity.Increasingly, however, improving productivity does notmean just increasing output. In addition, evaluation ensuresthat programs are accountable and are meeting theparticular needs of employees in a cost-effective manner.This is especially important today, as organizations attemptto cut costs and improve quality in their firms.Without evaluation, it is very difficult to show that trainingwas the reason for any improvements. Human resourcetraining may safeguard productivity as well assupporting it, insulating firms from skills shortages bypreparing employees for current and future jobs.Evaluation involves identifying the appropriate outcomesto measure. The outcomes used in evaluatingtraining programs include trainees’ satisfaction with thetraining program, learning of knowledge or skills, use ofknowledge and skills on the job, and results such as sales,productivity, or accident prevention. Evaluation may alsoinvolve comparing the costs of training to the benefitsreceived (return on investment). Outcomes used in trainingevaluation help to determine the degree to which theprogram resulted in both learning and transfer of training.Training evaluation provides a way to understand theinvestments that training produces and provides informationneeded to improve training. If the company receivesan inadequate return on ist investment in training, thecompany will likely reduce its investment in training orlook for training providers outside the company who canprovide training experiences that improve performance,productivity, customer satisfaction, or whatever otheroutcomes the company is interested in achieving. Trainingevaluation provides the data needed to demonstratethat training does provide benefits to the company.This paper is organized as follows. First the purposeof human resource training evaluation is shown.Next, analysis of human resource training evaluationmodels is provided. Third, human resource training’sevaluation process is shown. Fourth and fifth, evaluating of human resource training costs and returns of investmentsare discussed. Sixth hard and soft data in trainingevaluation is described. Later, costs of training inLithuanian companies are demonstrated. Finally, conclusionsof this paper are given.
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