Evaluating training effectiveness in hrm

Chapter Six

Training Evaluation

Objectives

After reading this chapter, you should be able to

1. Explain why evaluation is important.

2. Identify and choose outcomes to evaluate a training program.

3. Discuss the process used to plan and implement a good training evaluation.

4. Discuss the strengths and weaknesses of different evaluation designs.

5. Choose the appropriate evaluation design based on the characteristics of the company and the importance and purpose of the training.

6. Conduct a cost-benefit analysis for a training program.

7. Explain the role of Big Data workforce analytics and dashboards in determining the value of training practices.

Evaluation Helps Ensure Guests Find Paradise on Hawaii’s North Coast

Turtle Bay Resort is located on the stunning coastline of Oahu, Hawaii. Guests can choose many activities while enjoying the beautiful surroundings at the at the resort including dining on farm-to-table meals, enjoying the ocean while surfing and paddling, relaxing with a massage, or taking an invigorating horseback ride. New management made a $40 million investment and renovations to revitalize the resort and inspire its guests to make them part of the local community. They recognized that the physical changes to the resort were necessary and important. But they also believe that investing in training leads to happier and more engaged employees, and, in turn, leads to satisfied guests. Training at Turtle Bay includes classroom learning, role-plays, and social learning. All training incorporates Turtle Bay’s 6 Values that provide the standard by which employees work and serve guests. The values relate to time (Manawa), goodness (Pono), caring for others (Malama), support of family (Hanai), Aloha (kindness), and local engagement and culture (Kama’aina). The values include underlying behaviors and practices such as greeting guests promptly (Manawa), hold others accountable (Malama), demonstrating interest in peers (Hanai), engage guests and peers (Aloha), and treat locals as guests and guests as246locals (Kama’aina). Every employee is required to attend a training program that focuses on the values. Managers are asked to complete an individual development plan based on their self-rating as well as ratings from employees, peers, and their manager on how well they applied these values at work. Employees also complete a self-assessment and personal improvement plan based on the values.

Laulima (many hands working together), a service quality training program, is an extension of the values. The program includes modules on greeting guests, service delivery, service recovery, and knowledge of service, food and beverages, history, and culture. The program was developed using input from employees who were chosen as the best service providers at Turtle Bay. Each module has a workbook that guides employees through a series of exercises. New employees attend a scavenger hunt to help them understand the property and its plants and animals. Managers are expected to help teach employees and reinforce what they learn. Employees also have to learn how to use Guidepost, a lobby experience center that provides concierge and guest services in an interactive space. Guidepost includes iPads and touchscreen panels for viewing activities and reviewing, learning about, and booking local activities.

To reinforce delightful customer service and emphasize the importance of training, Turtle Bay has several rewards programs. The Ho’ohana Awards recognize employees for exceptional service for guest and employees. Ali’i and llima Awards for exceptional service are given each quarter to a manager and two other employees. The Best of the Best Award is given to outstanding employees who continuously demonstrate exceptional service.

Turtle Bay collects several different types of data to determine the success of training. The most important measure is guest satisfaction, which includes using social media tools like TripAdvisor, Revinate, and Market Metrix. A values feedback system is used to determine how well employees are applying the Value practices. This data is evaluated for employees, managers, department, and functional areas. Occupancy rates, market share, sales performance, internal promotions, and turnover are used as financial measures. To assess employee engagement, two surveys are conducted each year.

Source: L. Freifeld, “Turtle Bay turnaround,” training (January/February 2015): 120–123.

INTRODUCTION

As the opening vignette illustrates, Turtle Bay Resort wants to show that the time, money, and effort devoted to training makes a difference. That is, the training function was interested in assessing the effectiveness of training programs. Training effectiveness refers to the benefits that the company and the trainees receive from training. Benefits for trainees may include learning new skills or behaviors. Benefits for the company may include increased sales and more satisfied customers. A training evaluation measures specific outcomes or criteria to determine the benefits of the program. Training outcomes or criteria refer to measures that the trainer and the company use to evaluate training programs. To determine the effectiveness of training, an evaluation needs to occur. Training evaluation247refers to the process of collecting the outcomes needed to determine whether training is effective. For Turtle Bay, the outcomes included engagement, guest satisfaction, and financial measures such as occupancy rates. Although not discussed in the vignette, Turtle Bay also has to be confident that the data its information-gathering process is providing accurate data for making conclusions about the effectiveness of its training programs. The evaluation design refers to the collection of information—including what, when, how, and from whom—that will be used to determine the effectiveness of the training program. Any organization that evaluates training has to be confident that training—rather than same other factor—is responsible for changes in the outcomes of interest (e.g., turnover, productivity). The degree of confidence that any changes in the outcomes of interest is due to training depends on the type of evaluation design that is used.

Recall the Instructional Systems Design model shown in Figure 1.1 and the topics covered in Chapters Two through Five . The information from the needs assessment, the characteristics of the learning environment, and the steps taken to ensure transfer of training should all be used to develop an evaluation plan. In order to identify appropriate training outcomes, a company needs to look at its business strategy, its organizational analysis (Why are we conducting training? How is it related to the business?), its person analysis (Who needs training?), its task analysis (What is the training content?), the learning objectives of the training, and its plan for training transfer.