ERIC Number: ED394045
Record Type: RIE
Publication Date: 1996-May-20
Determining the Cost Effectiveness of Training (A Self-Contained Instructional Module).
Decker, Carol A.; Campbell, Clifton P.
This instructional module is designed to teach training managers how to calculate training costs, measure the effectiveness of training, and determine the cost effectiveness of training. It is organized in three parts. Part 1 points out why some training managers are reluctant to determine the cost effectiveness of training. It discusses the need to justify training with documented benefits and provides practical details and examples of how to calculate the direct, indirect, and full costs of training. Part 2 describes four levels of measurement used to determine the effectiveness of training. The need for a cause-and-effect link between a specific organizational problem and a performance deficiency is addressed. The selection of outcomes (benefits) to be baselined before training and tracked after training in order to determine the payback is discussed. Part 3 presents five methods for determining the cost effectiveness of training courses and problems: return on investment, internal rate of return, cost-benefit ratio, bottom-line evaluation, and payback period. In addition to providing details and examples for each of these methods, their advantages and disadvantages are identified and listed in a table. At the end of the module is a practical example to facilitate a skill check on the user's understanding and attainment of the learning objectives. (Contains 12 references.) (YLB)
Publication Type: Guides - Classroom - Learner
Education Level: N/A
Audience: Administrators; Practitioners
Authoring Institution: N/A