Return on
investment is a crucial and challenging issue for the fields of performance
improvement in the organizational sector and HRD (human resources development).
Return on investment (ROI) is a commonly discussed topic many research seminars
and conferences conducted on the topics of human resources development and
performance improvement areas. In HRD based international and national
journals, return on investment (ROI) is the most frequently discussed research
topic. In literature, several books are written and published on this research
topic with examples of the organizations that have successfully managed return
on investment related critical issues (Elnaga & Imran, 2013).
Return on
investment is a commonly used approach by the investor to evaluate and compare
the alternative option of investment while taking a decision about investing in
an investment project. Through the use of return on investment, strategy
investors can evaluate which investment opportunity has the highest value of
the benefit and which can cover the expected cost in a relatively short period.
Following the return on investment concept, the values of ROI positive and
higher indicate that investment product will easily cover its cost. During the
past few years, an asset purchasing approach had applied to the decision.
Investment opportunities available to the investors include go-no-go decisions
and traditional investment decisions. Some important go-no-go decisions relate
to recruiting, training and marketing. Moreover, traditional investment
decisions can be evaluated based on venture capital and stock portfolio
management (Phillips, 2011).
Benefits of ROI:
Contributions of measurement-From the HRD staff, it is possible to know the
important contributions on the selected numbers programs ROI makes it happens.
The benefits of the program have expressed in different terms. The
contributions of the outweigh are a good or bad investment.
Priorities
Setting-to develop high impact and ROI’s calculations in different areas such
programs are determined to contribute to the organizations.Results Focusing on-
To pay focus on the results of the programs, ROI’s measurements were based on results.
The process which is required to pay concentration on objects Measurements the
process that is required are facilitators, Instructions designer, and support
group. The process in all the training programs was add on behalf of its
effectiveness and improvement (Phillips,
Phillips, & Hodges, Making Training Evaluation Work: Show Value and
Communicate Results, Select the Right Model and Find Resources, Get Management
Buy-in and Overcome Resistance, 2004).
Training of
Perception Alter Management-the training management group applying the ROI’s
processing briefing and consistently, to convince the management that
investment is not so expensive. To increasing the functions of the objectives,
to improve their contributions to the objectives, the manager would see the
training. In Building partnership management, it is an important step. Process
of ROI-To develops essential elements of the ROI Many professional rises a
point that process model of ROI’s Provide very little information (Alhejji, Garavan, Carbery, O'Brien, & McGuire,
2016).
- Training
affected by isolation
- Data
converting into Monetary Values
Analysis Plan of
ROI: The continuity of data collection is the analysis plan for ROI. The
documented plan carry out pieces of information on many issues to create the
develop the original calculations of ROI. Main issues include as below:
- Training
and education programs use the effects of the isolating method
- For
monetary values, data converting method have used
- No cost
would be posted to prorated in the cost categories
- Benefits
of intangible anticipated
- To
receive the information we have communication Targets
- Program
implementation may have some other issues and events
To manage the
ROI’s process implementation successfully, these two planning documents are
necessary.
ROI process criteria for effectiveness:
For the effectiveness of the ROI process with input from thousands of
specialists, managers, and education places, the criteria below have created (Phillips, 2011).
- It should
be void from any complexity and must be simple.
- Without
required any additional resource to become capable in the daily routine
training should be economical
- Credible
techniques, assumption methodology would use.
- The
process should maintain a balance between practical, theoretical, sound,
and sensible approach based processes.
- Factors
that affect output variables must account in the process of ROI.
- For the
hard and soft data process of ROI should Applicable (Kirkpatrick, 2009).
References of about Return on Investment (ROI) of Training and Development in Ooredoo Qatar
Alhejji, H., Garavan, T., Carbery, R., O'Brien, F.,
& McGuire, D. (2016). Diversity training programme outcomes: A systematic
review. Human Resource Development Quarterly, 27(1), 95-149.
Elnaga, A., & Imran, A. (2013). The effect of
training on employee performance. The effect of training on employee
performance, 5(4), 137-147.
Kirkpatrick, D. L. (2009). Evaluating Training
Programs: The Four Levels: Easyread Edition. ReadHowYouWant.com.
Phillips, J. J. (2011). Return on investment in
training and performance improvement programs. Routledge.