HRD Intervention and an Appropriate Evaluation - Research Paper Example

? HRD intervention and an appropriate evaluation This paper generally analyzes HRD interventions, and discusses the most appropriate evaluation types. One of the models discussed is the process model, which is extensively analyzed in Phillips (1997) book. This model mostly focuses on the inputs that come from different forces, during the course of the process. Another model discussed is the return on investment model (ROI), which in this case, focuses on increasing training activities and organizations’ education budgets. This continues to increase on daily basis, hence increasing accountability related issues. Also, the paper extensively discusses the issues facing Sycamore Technology of America (STA), which revolve around recruitment and retention of employees, and low motivation levels among others. Key words: Process model, Return on Investment model, Sycamore Technology of America (STA), Organizational development Question 1 The process model, explained in Phillips (1997), focuses on the inputs from different forces – throughout the time frame of the process, on the basis of a number of measures, these including: reaction and contentment; application and execution; learning, business impact, return on investment and the area of intangible benefits. The model, also focuses on the techniques of isolating the effects of the program – from the effect of other influences. The need for the usage of ROI models centers around the increasing training and education budgets of organizations, which continues to rise day after day; increasing accountability issues; and the increasing internal rivalry resulting from the inflating budgets (Philips, 1997). Second, there is also the need for continuous process and quality management. The criteria for an effective Return on Investment model include that; the model should be simple and devoid of complex formulations; the process must be economical; the formulations must be credible; the model must be theoretically proper and based on acceptable practices; the process must account for other factors, show appropriate application to a number of programs and flexibility (Gerber, 1994). The ROI model adopted must be applicable to all kinds of data – hard and soft, cover costs and offer a realistic track record of the venture. In building an effective model, these key areas must be included: an evaluation framework, the ROI process replica, the operating philosophy and standards, the implementation of the ROI framework, and the case practice and applications exercise (Broad, 1999). There are four elements given focus during the selection of the data collection methods, these including assessment purposes, the instruments under usage, the levels of application, and the timing for the implementation of the process. The data collection modules available for the model include surveys, questionnaires, interviews, observations, program tasks, focus groups, performance contracts, action plans, performance monitoring, supervisor estimates, and training information. During the calculation of ROI, the cost/ benefit ratio as a percentage is generated – using the net benefits, which are derived from subtracting the costs from the program benefits. The cost/benefit ratio is derived as follows: BCR= Program benefits/ Program costs. ROI= Net Program Benefits/ Program Costs X 100 (Philips, 1997). ROI calculations, which are used by many organizations, are used, towards meeting the demands of high-ranking stakeholders. The process centers on the creation of value-added contribution of training and education – through a model that is preferred by the different parties within the framework – these including executives and administrators (Phillips, 1994). Though the model presents a hard-felt dilemma for most organizations, there is an imminent need for ROI – which answers questions on accuracy, appropriateness, and necessity (Kimmerling, 1993). Further, the process must be applied on the basis of a sound framework – through a model that provides a step-by-step credible methodologies and procedures. ROI Calculation can be developed in a reliable manner through careful planning, logical and realistic analysis, and methodical procedures. Through the generation of ROI models from such an approach, accuracy and reliability for any type of training and education program can be realized (Kirkpatrick, 1974). Question 2 The issues facing Sycamore Technology of America (STA) are centered on the areas of recruiting and the retention of workers; low motivation levels among the workers, as well as the poor outlook of the company from the people living at the area surrounding the company. In addressing these issues, the managerial team as well all other staff at STA include, an awareness of the need for change and the direction the change should take. This includes how to change the personnel practices to induce retention and effective recruitment, favorable motivation among the different personnel at the company, as well as those to be recruited. There is also, the empowerment for change – which is effected through imparting relevant attitudes, ideas, skills, and knowledge. In this area, the appraisal for change should address the areas that will improve the recruitment and retention practices of STA, and increase employee motivation – which can be done through increased involvement and offering motivation models. There is also, planning for the change, where the training program should center on the cultivation of change among the personnel practices of the company, as well as the personnel-company relations. During the implementation of change, the imparted knowledge should be applied – in realizing the desired changes in personnel-company practices and the sense of significance among the workers. Lastly, there is the refreezing of the change – to encourage the adoption of the created personnel practices and motivation models (Argyris, 1977). The areas to be offered central significance throughout the change training and change cultivation program – for STA will include improving personnel recruitment and retention, enhance proper supervision of workers – from a knowledgeable point of view; creating employee involvement models and appraisal structures – which will help raise their motivation levels and sense of importance at the company. Lastly, from realizing operational harmony at STA, the changed outlook can be transmitted to the surrounding area through public relations, institutional campaigns, and community involvement in the issues of the Indiana region (Agrawal, 1996). The intervention programs to be used include employee training, development and organizational development. The programs will be coordinated through instructional frameworks design appraisal and train-the-trainer courses. At the organizational level, organizational and job restructuring, and reward structure redesign will be applied. The programs will be coordinated and facilitated through the involvement of the entire employee structure at STA. In evaluating level 4, results will be measured against set goals and targets – which will be quantified to get the net benefits resulting from the training expenses, to derive the ROI percentage. Evaluation instruments will include unit measurement, value of each unit and change in performance data; methods will include data evaluation, and questionnaires; evaluation timing and levels will center on before the training and after the training evaluation. In converting the units into monetary values – the expense, indirect and direct costs will be amounted (these including complaint costs), estimating the training costs and the value drawn from the resultant input (these including value of improvements from training) will be evaluated. From the generated values, ROI = Net program benefits/ program costs X 100%. The intangible benefits include formulation of better organizational relations, employee fulfillment, customer service, team efficiency, and eliminating employee withdrawal (Bryan, 2007). Question 3 The ROI Process Model Application Step 1: The ROI model Application The data collection plan: The objectives include identifying the employee recruitment and retention deficiencies; address the supervisory deficits; increase employee involvement; improve employee motivation and the relations between the company and the Indiana region. Evaluation methods include observation and surveying the different levels of workers – top to bottom. The members to be surveyed include junior and senior staff – like supervisors, as well as subordinate staff. Data collection will be carried out within one week, before the training and one week after the training. The data collection will be carried out by identified junior and senior staff – as this will help avoid employee level biases (Philips, 1997). The ROI analysis plan: (Level 4 and 3) to be drawn from organizational performance data: benefit factors include, the value of enhancement resultant from the training, the cost of the reduced complaints and direct and indirect costs resulting from improper employee actions. The cost factors include, the cost of complaints – these including direct and indirect costs, the time lost due to improper supervision and the revenues and customers lost due to ineffective employee actions. In isolating the effects of the learning program, data will be collected from the different lines of Client leadership, program developers and analysts, participants and the participating supervisors. In converting data to numerical values, the average cost per complaint and employee will be established. Direct and indirect costs in this case amount to USD 447. The intangible benefits include: staff satisfaction, team efficacy, customer service improvement, and employee involvement (Agrawal, 1996). Step 2: Data collection The evaluation seeks to uncover the ineffectiveness of personal recruitment and retention, the underlying causes for poor supervision, establish how to encourage employee involvement, and ways to improve employee morale levels. The evaluation instruments include observation, survey and the review of records. In the current case, pre-training and post-training analysis will be carried – out to fully identify the skill changes between levels 2, 3, and 4. The data for the study will also be collected at this stage, for stages 1-4 (Agrawal, 1996). Step 3: Isolating the effects of the training Control groups – comparing change between the trained and the untrained groups. Trend lines – follow the performance trends, these compared to actual pre-training measurements. Mathematical forecasting – these from the change in sales and marketing expenditure – these used to predict the expected changes. Participant approximations regarding the impacts realized. Senior management estimates on overall expenditure for the training programs for the business, including other minor factors (Agrawal, 1996). Step 4: Converting data to monetary value Reflection from output data converted into cost savings and profits. The cost of quality converted into cost savings or profits. Cost savings from salaries and overheads due to decrease in time for effecting projects. External expert’s estimation of performance developments and the estimates of participants regarding the cost savings or the value realized from the increased productivity (Phillips, 1994). Step 5: Calculation of the ROI BCR: Benefits/ Expenses ratio = Program benefits/ program expenses. For example, if the company gains USD 1 M in 12 months and the expenses of education and training are USD 250,000, the BCR ratio is – 1m: 250,000, which can be simplified as – 4:1. ROI: Return on Investment = Net program returns/ Program expenses X 100 From the previous example, the net proceeds are USD 1m – USD 250,000 = 750,000 ROI = 750,000/ 250,000 X 100 = 300% Question 4 In the case of STA, returns are generated as annual revenues – as a percentage of the return for each unit investment of the original investment. In the case of STA, the provisionary investment is USD 10 Million, therefore the rate of return is 750,000/ 10 Million X 100 = 7.5 %. The income in this question has been earned in two different ways: one is the income created by the investment, in the current case, due to the training and education program. Second, is the gain on the investment, for example the accrual resulting from the investment of 10 Million. In the current case, the profit – calculable after the deduction of the investment costs, these including the cost for the training program (McLagan, 1989). Taking the standard deviation for the Return on Venture of STA as (+1 or -1) of the realized amount, it may be derived, that from the 7.5% Return on investment – the rate may vary to 7.5 – 1 to get to 6.5% or 7.5% + 1 to get to 8.5%. The standard of deviation percentage defines the brackets within which the Return on venture for STA for previous and coming years will most likely lie. Also, in further increasing the possibility of future ROI, for the venture, the investors and the management of the company may expand the scope of the deviation, for example to 2% (Philips, 1997, p. 245). Taking a provisionary track record of the income realized by STA for the three years preceding 2011, which was the year – during which the training and education program was carried out. Year 2007 2008 2009 2010 2011 Per annum Return (USD) 430,000 380,000 400,000 450,000 750,000 Investment (USD) (M) 10 10 10 10 10 From the table, the mean average of return may be calculated by summing up the returns for the different years, divided by the number of years. The per annum amount given in the table is representative of hard data, these including budget variances, unit costs, fixed costs, operating costs, product defect costs, Inventory adjustments, and fixed expenses and costs (Philips, 1997, p. 242). Mean per annum return = (430,000+380,000+400,000+450,000+ 750,000) / 5 = USD 482,000 The soft data quantified and qualified towards the derivation of these rations include absenteeism, violation of rules, use of new skills, frequency of use of new skills and the responsiveness of employees in adjusting to organizational changes (Philips, 1997, P. 243) Question 5 Table showing Per annum Returns for the years 2007-2011 References Agrawal, N. (1996). Optimizing Training Effectiveness: From Classroom to Work Place. IIM B Management Review, 8 (3/4), 20-30. Argyris, C. (1977). Double loop learning in organizations. Harvard Business Review, Sep/Oct, 55(5), pp. 115-125. Broad, M. (1999). Transferring Learning to the Workplace. Alexandria, VA: American Society for Training and Development. Bryan, L. (2007). The new metrics of corporate performance: profit per employee. The McKinsey Quarterly, 3 (4), 20-40. Geber, B. (1994). A Clean Break for Education at IBM. Training, 33-36. Gilley, J., & Eggland, S. (1989). Principles of Human Resource Development. New York: Addison-Wesley. Kimmerling, G. (1993). Gathering Best Practices. Training and Development, 47 (3), 28-36. Kirkpatrick, D. (1974). Techniques for Evaluating Training Programs. Alexandria, VA: ASTD. McLagan, P. (1989). Models for HRD Practice. Training and Development Journal, 49-59. Phillips, J. (1994). In Action: Measuring Return on Investment. Alexandria, VA: American Society for Training and Development. Philips, J. (1997). Handbook of Training Evaluation and Measurement Methods. Houston: Gulf Professional Publishing. Read More