Declaration

We hereby declare that the project work entitled Training & Development on Return on Investment submitted to the Calicut University in partial fulfillment of the requirements for the award of the Degree of Master Of Business Administration to LEAD College Of Management Dhoni, Palakkad , is a record of the original work done by we under the guidance of Mrs.Yasmin Samad, faculty lead college. During the academic year 2011-2013.

Submitted by :Akhila K S Neenu G

Preface
This Project Report has been prepared in partial fulfillment of the requirement for the Subject: Practical Studies of the programme M.B.A. in Human Resource Management in the academic year 2011-2013 .For preparing the Project Report, we have visited the Marico Company during the suggested duration for the period of 3 weeks, to avail the necessary information. The blend of learning and knowledge acquired during our practical studies at the company is presented in this Project Report .The rationale behind visiting the Marico company and preparing the Project Report is to study the basics, training and development of Marico kanjikode Limited services. The Project Report starts with the basic concepts of Training & Development history and also covers the general information of methods of training. The information presented in this Project Report is obtained from sources likeCompanyPersonnel, Company Websites, Other Webs ites, Company Reports, and Other Literature.

Objective of study
The study is to investigate the value of Return on Investment [ROI] when conducting Training & Development activities. The main objective of the study is first to gain the practical knowledge is regarding the functioning of Return on Investment which is very necessary to fully understand the primary functions & hence to fulfill the purpose of the summer Internship under MBA course.

Research Methodology
Research is a process of a systematic and indepth study or search of any particular topic ,subject or area of investigation backed by collection ,computation, presentation and interpretation of relevant data .According to Clifford Woody research comprises of defining and redefining problems formulating hypothesis ,collecting ,organizing ,and calculating data, making deductions and research conclusions to determine whether they fit the formulated hypothesis. Research methods, helps in arriving at solutions by relating the available data with unknown aspects of the problem .Methodology refers to the procedures by which the researcher goes about their work of describing, explaining and predicting phenomena .Methods are the way in which datas are collected, classified, hypothesis framed and laws formulated .The various methods used all quantitative methods ,experimental methods ,survey method.etc Research methodology is a science that provides various steps that can be adopted by the researcher in studying his research problem .The scope of research methodology is wider than that of research methods .Research methodology deals with the objective of research study ,the method of defining research problem, the type of hypothesis formulated ,the type of data collected , method used for collecting and analyzing data etc. The various steps that are necessary to carry out a research is known as research process .it include following steps: Identifying and formulating research problem:

The research problem A study on measuring of Training and Developmentwas identified because of personal interest and ready availability of data, with the assistance of a guide. Extensive literature survey: Both conceptual literature and empirical was examined. Conceptual literature includes all the theory relating to the study.Empirical literature contains facts,figures,etc observed in earlier studies. Limitations of study This study is limited with the inner boundary of the institute where the survey had been conducted and is not compared with the other institute.

The time given for the study is only 3 weeks .So it is not possible to collect response from the candidate of other courses.

Scope of the study

The present study is based upon the training and development activities of Marico Kanjikode Unit. The study is to evaluate the Return On Investment of training and development and its impact. Investment in training and development Return on investment Cost Benefit Analysis

Sources and Nature of Data

Literature review

Training & Development is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change take place in structured format. Training and Development is essential to the ongoing success of every organization. Although technology and the internet have enabled global collaboration and competition, people are the organizations competitive advantage. Employee training and development enables employees to develop skills and competencies necessary to enhance bottom-line results for their organization. Training & Development defined Training is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviours to enhance the performance of employees. Development - means a progression from a simpler or lower to a more advanced, mature, or complex form or stage. It is also defined as the gradual advancement or growth through a series of progressive changes. Development is a process, not a level. It is a path to achieve certain goals. TRAINING AND DEVELOPMENT OBJECTIVES The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to organization . In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal. Individual Objectives help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization. Organizational Objectives assist the organization with its primary objective by bringing individual effectiveness. Functional Objectives maintain the departments contribution at a level suitable

to the organizations needs. Societal Objectives ensure that an organization is ethically and socially responsible to the needs and challenges of the society.

COMPANY PROFILE
Marico is a leading Indian Group in Consumer Products & Services in the global Beauty and Wellness space. Maricos Products and Services in Hair care, Skin Care and Healthy Foods generated a Turnover of about Rs. 19.1 billion (about USD 477 Million) during 2007-08. Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Sundari, Aromatic, Camelia, Fiancee and HairCode. Maricos brands and their extensions occupy leadership positions with significant market shares in most categories- Coconut Oil, Hair Oils, Post wash hair care, Anti-lice Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Marico is present in the Skin Care Solutions segment through Kaya Skin Clinics (65 in India and The Middle East), the Sundari range of Spa skin care products (in the USA & other countries) and its soap franchise (in India and Bangladesh). Marico's branded products are present in Bangladesh, other SAARC countries, the Middle East, Egypt and South Africa. The Overseas Sales franchise of Maricos Consumer Products (whether as exports from India or as local operations in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded products and services. Marico was selected as one of the

eight Indian companies in S & Ps list of Challenger Companies from various nations, compiled globally by Standard & Poors in June 2007.

KANJIKODE UNIT OF MARICO:

The organization is located in New Industrial Development Area, Menopara Road, Kanjikode, Kerala. The Kanjikode unit was established in 1993; plant is located in 25 acres. The registered office is in Rang Shardha, K.C.Marg, Bandhra, and Mumbai. The products manufactured here in this unit are Parachute oil of Malabar and Uttam. In this plant whole process of extracting oil starting from copra till finished product, Packaging material like bottles, cartons are

bought from vendors. There are four sub contractors nearby this plant namely: Kairaley, Chavady plant, Poorna and Vianney. The plant has got different departments HR, systems, commercial, oil mill supply chain, filling supply chain, RM stores, PM stores, FG stores, Engineering stores. The products manufactured in this plant are Parachute oil , oil of Malabar and Uttam . Parachute is premium edible grade oil, a market leader in the category synonymous with pure coconut oil in the market; parachute is positioned on platform of vital nourishment today. From a loosely available commodity to a

path breaking brand Parachute pioneered the switch from coconut oil sold in tins to plastics. Parachute is also available in pouches to serve the rural sectors, increasing penetrations. The positioning of parachute has evolved over time. The coconut

From the initial stand of purity to that of clarity to the coconut dream theme, with a new look and logo to todays positioning of vital nourishment.

dream logo is seen as an opportunity to transform parachute from being the largest

coconut oil brand into a mega brand into a mega brand with several value added products under coconut goodness umbrella. The transformation of Marico from what was in 1990 to Present day is clearly evident from the fact that all the Management and Workers are clear towards their business direction i.e., What we would want to do where we would want to go Scale 2: Advanced Beginner They have demonstrated marginally acceptable performance; have coped with some real situations so that they realize a particular method or knowledge application is situation dependent .The advanced beginner should begin to formulate guiding principles that dictate actions based upon experience. However , they are weak at this, so need support in a controlled setting by a more advanced practitioner. Scale 3: Competent They have been practicing the skills for several years and thus have experience to see their actions in terms of long-term impacts and are becoming conscious of the strengths and weaknesses.The competent individual lacks the speed and flexibility of the proficient individual but does have a feeling of mastery and the ability to cope with contingencies coming from the unexpected. There is a conscious deliberate planning required to achieve efficiency and organized work. Scale 4: practitioner They perceive situations as wholes rather than as unique situations full of details to be understand alone and are not longer dominated by guidelines. They do this by seeing the meaning of a situation in terms of its long term implications.They quickly realize when a normal problem situation has become abnormal. The practitioner still uses guiding principles as guides, but a deep understanding of the situation is required before a maximis used.Maxims reflect what would appear to the competent as unintelligible nuances of the situation as they mean difference things at different times.However, only one with a deep understanding of the situation can allow a maxim to provide direction as to what needs to be taken in to consideration for a particular situation.

Scale 5:Expert They no longer rely on any simple analytic principle as they can connect their understanding of the situation directly-almost intuitively to the appropriate action. They have an intuitive grasp of each situation so that they can zero in on the key region of the problem without wasteful consideration for a large range of alteratives. Transferring and making explicit this insight is difficult as the expert operates from a deep understanding of each unique situation.Their challenge is to communicate this insight to others. Knowledge Gap is assessed through structured questioner; which is circulated to all the members and collect the scores. Post that the feedback from the concerned supervisors is also taken in to account. Scale 6 : Training calendar The skill gaps and the inputs from the PADP/ PDP process consolidated by the HR Head and a meeting is organized with the KMTs to finalize the Training calendar for the year.Marico generic competencies ,insights from various TPM pillars such as JH,PM,AND KK etc and key thrust areas of the plant is taken in to cossideration before finalizing the training programmes to be organized; which is prioritized based on the plant requirements. Scale 7: Responsibility Matrix The responsibility matrix appended below roles of explains the roles of Unit Head HR, Supervisor,Trainer and Trainee pre/post and during the training.
R O L E P L A Y E R

Before During After United Head HR Supervisor Trainer Trainee

Responsibility matrix Unit Head HR-Before Training Finalize the training budget and get it approved by works Head Involve supervisors in need analysis process Organize the skill and knowledge gap analysis Preparation calendar of Training Calendar Programme planning pre-quiz/post quiz/ effectiveness monitor/Hall arrangements/ refreshments Decide the mode of training in consultation with supervisor/ KMT Insight to the trainers on the organizations expectations Develop internal resources for training Explore the possibility of peer coaching wherever possible Monitor the performance standards at regular intervals Design the recognition plan to perform to motivate the trainees

Supervisor-Before Training Build transfer of training in to performance standards Collect baseline performance data Provide the insights from PADP/PDP[based on the trainees] Brief trainees on the relevance of training objective/ content/process/application on the job Review the course content and study materials provided by the trainer and the material should be vetted by the concerned KMT before delivering the training Motive the trainees to attend the session

Trainer- Before Training Align the training plan with the organizations expectations Systematically design instructions

 Provide proactive opportunities Plan opportunity [if possible] to the peers/senior in the team to share instances Follow up action plan/projects to get a continuity for the programme

Trainee-Before Training Attend the pre-quiz Actively explore the training options Pre preparations as instructed by the trainer[if any]

Unit Head HR-During Training

Start the session as per schedule. Adhere with the times lies. Context setting for the session. Monitor the attendance of the trainees and maintain the Attendance Register. Prevent interruptions during the training session. Convey the pre-quiz score to the trainees. Recognition to the trainees in between the session to keep them motivated. Review scheme to be formulated in consultation with the trainer.

Supervisor During Training

Participate in the context setting process. Ensure the availability of training aids/tools. Participate in the action planning. Involve in project allocation. Plan assessment of transfer of new skill to the job.

Trainer-During Training
Develop application oriented objectives,

Manage the unlearning process. Provide realistic work related tasks. Give individualized,

Trainee-During Training
Maintain an learning book TPM Diary. Participate actively. Plan for applications. Create behavioral contracts.

Unit Head HR After Training Communication to trainees to participate in the post quiz and Trainers evaluation. Recognition to the trainees and the trainer. Ensure that the ppt/training material is uploaded in the Josh portal for the reference. Support the supervisor in the project /reviews/action plans. Supervisor After Training
Provide opportunity to trainees to practice the new skills. Opportunity to participate in new projects. Give positive reinforcement. Reinforce mutual expectation for improvements. Suggest refresher sessions.

Trainer-After Training Provide follow-up support to trainees. Provide refresher/problem solving sessions. Training Tools
The commonly used training tools are:

1. In-House Training Programs

In-House Training: based on the topic :faculty may be invited externally or allotted to the internal trainers to handle the session. The communication on the same to the targeted group will be communicated minimum 4 days in advance to ready for the session. The training materials generated is forwarded to concerned KMT member for expert opinion. Associate key members are also invited for session.

1.1 Building Better Decision Making Bodies

Segment 1:
Effective Decision Making In this segment we discuss how to achieve excellence in decision-making. We help you make your group's decisions more proactive, visionary, smart, sustainable and inclusive. Specific topics include:
Measuring Board/Council effectiveness . Making knowledge-based decisions. Evaluating a Board. Roles of the Chair and each voting member. Roles of administrative staff, committees. Consensus vs Majority based decisions. Minority's duty to accept collective decisions. Placing collective interests ahead of narrow ones. Conflict of interest guidelines. Confidentiality guidelines ("in-camera meetings"). Preventing and dealing with team dysfunctions. Community and stakeholder involvement.

Segment 2:
Meetings & Rules of Order In this segment we present tools to make your meetings productive, timely, inclusive, and even enjoyable. We also discuss how to use rules of order sensibly and intelligently in formal meetings. Specific topics include:
Ten key ingredients of a successful meeting. Proactive and visionary planning of meetings. Chair's roles and member's roles in a meeting. Managing people, time and issues in a meeting. Keeping a meeting on track and on time. Handling counter-productive behaviours. Core principles of rules of order. Hierarchy of governing documents. Majority, tie votes, abstentions, quorum. Chair's debating and voting rights. Handling Main Motions, Amendments. Motions to postpone, refer, "table", others.

1.2 Making Meetings Work Better

In this workshop we discuss meeting dynamics. We give you tools to make your future meetings productive, timely, inclusive and even ... enjoyable. Specific topics include:
Ten key ingredients of a successful meeting. Proactive and visionary planning of meetings. Chair's roles and member's roles in a meeting. Managing people, time and issues in a meeting. Keeping a meeting on track and on time. Handling counter-productive behaviours during meetings. Asserting yoursefl in a meeting without getting angry. Making a meeting more varied, engaging, interesting and fun.

Dealing with contentious issues.

1.3 Rules of Order - Demystified & Humanized

In this workshop, learn to use procedures sensibly and intelligently. Specific topics include:
Shifting from technical rules to core principles. Making the rules of order more "user-friendly". Determining the significance (or lack thereof) of procedural violations (points of order). Majority, tie votes, abstentions, proxies, super-majorities (2/3 and 3/4 votes). Chair's debating and voting rights. Open and closed ("in-camera") meetings; Quorum. Handling main motions, amendments. Handling motions to postpone, refer, "table", and others.

Re-visiting adopted or defeated motions. 1.4 Community Consultation & Consensus Building

In this one day workshop we discuss minute taking standards and related issues, including how to work effectively with board and committee members. Specific topics include:
General principles for minute taking; How much of the discussion should be recorded; Making minutes more "reader-friendly; Recording motions, amendments, and other actions; De-personalizing the minutes; Minutes approval process and its impact; Impacts of freedom of information and privacy issues; Working effectively with decision-making team chair and members.;

General discussion of meetings and agenda design.

2 External Training Courses

2.1 The main advantage of using external trainers is that they are specialists.

The trainer may have spent years refining a training course. The trainer can bring you up to date with current best practice.

2.2 Training comes in a wide range of forms.

Lectures and conferences typically thrust a mass of information at a large audience. Seminars help people acquire knowledge in a more interactive way. Workshops give people information and let them practise working out problems. Distance learning may make use of workbooks, videos or DVDs, while e-learning is computer-based.

2.3 E-learning offers a number of key business benefits.

It is a powerful and cost-effective way of introducing new ideas and approaches. It can also be used to monitor progress and assess learning. It is especially useful when you need to train a large number of staff across different locations (eg to demonstrate compliance with health and safety regulations). Trainees progress at their individual pace.

The course can be completed at home or in the workplace. There are a wide range of courses available. Interactive courses are also available to support behavioural training.

2.4 External training can bring fresh ideas and energy into the learning process.

Mixing with trainees from other businesses can be an opportunity to discover how these other businesses do things. A good trainer may challenge the way your business currently operates.

2.5 Train to Gain Skills Brokers offer impartial advice to employers. They can help you identify and source the training you need to support your business objectives, increase productivity and improve overall performance (0800 015 55 45).

3 On the job training

On-the-job training (OJT) is a type of skill development where an worker learns how to do the work through hands-on experience. This is in contrast to skill formation that is purely cognitive or perceptual. OJT generally gives the trainee the opportunity to work in the same place and with the same equipment that will be used regularly which can make it an efficient approach to learning new things. It can also be a useful tool to helping unemployed people develop newjob skills. Poor OJT, however, can result in the trainee developing poor work habits. Unstructured and Structured Training Training an employee on the job can be one of the most effective teaching methods because it gives the worker practical experience with the tools and equipment he or she will be working with each day. As such, on-the-job training is one of the most common types of training used in the workplace, especially for vocational jobs, such as those in manufacturing. Often, this type of training is unstructured: the new employee is assigned to an experienced worker or supervisor, who demonstrates how the job is done. The trainee may shadow the other worker or workers for several shifts, while learning the steps that make up the job and how to use all of the required equipment. Training is usually conducted one-on-one, and the new worker generally has the opportunity to perform the different parts of the job with direct supervision.

Structured on-the-job training requires more organization, and often involves the creation of a lesson plan and set objectives, a clear estimation of how long the training should take, and a method of measuring how effective the training is. This type of program tends to be more uniform, with all employees who do a specific job being taught the same things in the same ways. It also requires that the coaches be chosen carefully and trained to work with new employees who have different levels of skill and knowledge.

Both types of training are used for a range of jobs, from manufacturing, to retail sales, to office work. Many times, companies start with unstructured training methods and adapt them as needed. Most training experts recommend structured plans, however, because they make it much more likely that trainees are taught all aspects of the job in a clear and unbiased way. Structured training is also designed to measure how effective the training is so that it can be changed if required.
Advantages

On-the-job training is often cost-effective for a business because no outside teachers or programs are needed, and the training is typically conducted as part of the actual work shifts. There is no need for the new worker to travel for the training, which could require paying for transportation. No extra equipment is needed either, as the new worker learns by using the tools that he or she will be using for the job. By training in the workplace, a new employee also has the chance to get to know the people and the environment earlier. He or she often gets a chance to interact closely with new co-workers and get practical advice about doing the job. Many times, the person who will be doing the training and evaluation is the new worker's supervisor or manager, so this also establishes job expectations from the very beginning. The feedback during on-the-job training is also immediate, so the new employee may experience faster growth in the job than he would in other types of training situations.

4. One-point Lesson: One-point Lesson

Sometimes we are so busy that we think we don't make time to develop the people around us. Instead we fight fires or give direct instructions. This might be effective in the short-term but inevitably small problems are missed. The greatest cost is being unable to teach others how to solve and prevent the problems that we are encountering. A simple countermeasure to this is the focused education and development method known as the one-point lesson. Originating as part of TPM (Total Productive Maintenance), the one-point lesson is intended to develop the knowledge and skills of the machine operators in Autonomous Maintenance. The basics of Autonomous Maintenance are daily checking and lubricating of machines. With increased knowledge and familiarity of their equipment the machine operators can detect abnormalities and early signs of failure. This leads naturally to problem solving skill development in collaboration with maintenance and engineering staff.

5 Yellow belt/green belt/six-sigma

As the ultimate owners of critical processes in a successful Six Sigma deployment, training for front line workers is critical to sustaining lasting cultural change. Yellow Belt Training is designed to provide a fundamental background in process management and fundamental problem solving. Participants will gain an understanding of the DMAIC process that will enable them to help move the organization toward achieving its broader goals and improving its financial results. Six Sigma Qualtecs Yellow Belt Certification Training provides the analytical tools and hard skills to bring results in both manufacturing and service environments, establishing grassroots accountability of front line operators for identifying and correcting problems. With a proven track record of Yellow Belts certified worldwide, Qualtec instructors provide focused training, emphasizing application of skills learned in classroom sessions to impact on-going process improvement.

5.1 Yellow Belt Program

Yellow Belt Certification is a 5-day course, taking candidates through a proven, step-by-step training course based on the transfer of knowledge and process skills. The result is improved project results through support of Black Belt andGreen Belt initiatives. Courses are designed to include sophisticated adult learning theory and no-nonsense evaluation of learning success, while supporting the framework for true cultural change within an organization.

6 Book rewiew
in the process, offers an array of important insights into work places and labor markets. This terrific book describes how employers think about hiring, firing, pay, and worker performance, and it tells a compelling story about how these ideas (and associated behaviors) influence labor market outcomes. This book reaches a number of important and, in some cases, surprising conclusions .it account the capacity of employees to identify with their firm and to internalize its objectives. This calls for material, moral and symbolic reciprocation from company leadership .it provides a spirited defense of primary qualitative
research, an approach that allows him to learn things that he could not have learned with another method. "It would be presumptuous to ignore the testimony of people who make economic decisions and observe and participate in economic life.

7 Induction manual
An AV induction manual is designed ;which explain in detail about the manufacturing process, PQA activities commercial and HR aspects of the plant.This also delivers an insight to the associate filling, blow moulding, crushing and refining operations.
To introduce employee with the new culture in the organization and help him to understand company policy and procedures

8 Ew- projects-

Exposure is provided to the staff members both on green filed, brown field, cross plant and improvement projects.

9 Cross plant ExposureStaff members are permitted to visit other marico plants and also other manufacturers to understand the good practices.

10 Associate operations inductionA presentation is designed in the local language basically to understand the GMP aspects to the shopfloor/line operators functioning at associate filling locations.

11 Josh-portal-off line portal designed to support the training.

It delivers information on Technical, process, Marketing, Commercial, HR,etc. This also delivers information on the key improvements projects done at KKD.

Effectiveness Monitor Model

ROI Results Impact Learning Satisfaction

Did the training invest pay off?

Did the impact of the training yield business results? Did the training deploy the learning on the content ? Did the trainees learn from the content ?

Did the trainees like the training programme ?

Satisfaction-Assessment through the structured questioner to assess the feedback on the training programme organized Also consider the ratings given to the trainer is also treated as an assessment factor. Learning-pre/post quiz and the quiz organized at quarterly will assess the learning of the trainees. Impact-Assessed based on the no. of abnormalities identified and closed and also on the number of Kaizens generated by the members. for instance zero accidents in an year is the great impact of the training provided on safety committee meet. Results-Business results delivered through improvement projects/green projects/6-sigma projects etc. ROI-used to determine the investment return from the training.

TRAINING EFFECTIVENESS MONITOR MODEL Return on investment

Return on investment (ROI) is one way of considering profits in relation to capital invested. Return on assets (ROA), return on net assets (RONA), return on capital (ROC) and return on invested capital (ROIC) are similar measures with variations on how investment is defined. The purpose of the "return on investment" is to measure per period rates of return invested in an economic entity. A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or ratio.

Observations: According to me Training and development is a very important part of the companys objectives. It also helps the organisation in shaping the career of its employees; hence the organisation can plan the training programme in such a manner wherein, the importance of the programme is made clear at its very beginning. It should be composed in such a manner, such as the programme, not only give learning outcomes but is a knowledge process to the employees through methods which can be effective. And to evaluate the outcomes of the training

programme, Kirkpatricks model of evaluation can be implied. The implication should be done with following method. The methods can be utilized in following manner; Reaction: The questionnaire that is built to assess the reaction should not be vague or biased. Before giving the questionnaire to the employees, the reason / motive / importance of the questionnaire has to be explained to them. Only then will an appropriate actual reaction can be seen. Learning: The learning can also be measured after the training is completed and implemented. It needs to shown how much of the knowledge or the learning an employee uses in the actual job process. Behaviour: To evaluate trainings effectiveness behavioral changes on the job is most important. It describes an approach whereby individuals can see how they have changed and quantify the amount of change. Outcome: The result of the training program may not be observed with immediate effect. There are chances there is no significant effect of the trainees effort on their actual learning outcome achieved from the training course. Hence here the result may vary from person to person and an appropriate approach towards the outcome should be applied. All this is possible only when the organizations evaluate the effectiveness of the existing training programs on performance improvement of the employees and thereafter make suitable changes in the training policy to bridge the performance gaps in the employees. Learning
At level 2, you measure what your trainees have learned. How much has their knowledge increased as a result of the training? When you planned the training session, you hopefully started with a list of specific learning objectives: these should be the starting point for your measurement. Keep in mind that you can measure learning in different ways depending on these objectives, and depending on whether you're interested in changes to knowledge, skills, or attitude. It's important to measure this, because knowing what your trainees are learning and what they aren't will help you improve future training.

Results
At this level, you analyze the final results of your training. This includes outcomes that you or your organization have determined to be good for business, good for the employees, or good for the bottom line.

Reaction
This level measures how your trainees (the people being trained), reacted to the training. Obviously, you want them to feel that the training was a valuable experience, and you want them to feel good about the instructor, the topic, the material, its presentation, and the venue. It's important to measure reaction, because it helps you understand how well the training was received by your audience. It also helps you improve the training for future trainees, including identifying important areas or topics that are missing from the training.

Behavior
At this level, you evaluate how far your trainees have changed their behavior, based on the training they received. Specifically, this looks at how trainees apply the information. It's important to realize that behavior can only change if conditions are favorable. For instance, imagine you've skipped measurement at the first two Kirkpatrick levels and, when looking at your group's behavior, you determine that no behavior change has taken place. Therefore, you assume that your trainees haven't learned anything and that the training was ineffective.

However, just because behavior hasn't changed, it doesn't mean that trainees haven't learned anything. Perhaps their boss won't let them apply new knowledge. Or, maybe they've learned everything you taught, but they have no desire to apply the knowledge themselves.

SKILL INVENTORY
Listing of abilities, capacities, qualifications, and career goals of the employees to identify suitable candidates for internal recruitment or promotion. Skills Inventory is a list of skills or competencies possessed by an individual. Skills inventories can identify skills gaps for employees and allow employers to budget for and determine appropriate training programs. Components Well defined classification system A consistent unit of measure An efficient measurement process A practical tracking and reporting system Skill gap analysis A method of comparing the actual skill level of an employee with a target level defined for a current job, a career path, or any other job in a company. This analysis helps to identify strengths and weaknesses in an employee's competence profile in relation to a job, and can be used to determine the appropriate competence development activities. Human resources departments undertake a skill gap analysis to help them determine whether employees have the skills needed to succeed in their roles. The analysis can be done on an individual employee or group basis and offers employees feedback on any necessary improvements. Human resources professionals can rely on a number of tools to aid in the skill gap analysis process.

A gap analysis is a common business tool used to assess the difference, or gap, between the current state and a future goal state. A skills gap analysis can be used by an individual to assess her skills and to identify areas for improvement.

Significance
o

A skills gap analysis can be a valuable tool because it allows an employee to identify what improvements he will need to make in order to advance in his career. Performing a skills gap analysis gives an individual an edge over other employees who do not assess their professional development needs.

Performing an Analysis
o

A skills gap analysis begins by identifying the goals that are needed for workplace advancement. Then, the individual measures her own skills. Finally, the individual measures the gaps between her current skills and the needed skills and makes a plan to close these gaps.

Effects
o

A successfully performed skills gap analysis will give the employee a clear path for professional improvement. If the employee is able to close the gaps, it should significantly improve his chances of a promotion.

Features

Skill gap analysis is a tool frequently used in human resources. Critically evaluating a the current skill set of a person or group and comparing that to the desired skill set is called a skill gap analysis. The resultant "gap" is where this type of analysis derives its name. A strategy is then developed to mitigate that gap. Skill gap analysis can be as simple as tallying how many people are unfamiliar with a certain software program or as complex as an evaluation of a person's management skills.

Monitor model

Reaction: Organisations evaluate the reaction level of trainees by conducting interviews or by administering questionnaires to the trainees. However, the immediate reaction may measure only how the people liked the training, rather than how it will benefit the trainees long-term. Learning: Organisations evaluate learning levels by measuring how well trainees have learned facts, ideas, concepts, theories and attitudes. Tests on the training material are commonly used for evaluating learning and can be given both before and after training to compare scores. In evaluating training courses at IBM, test results are used to determine how well the courses have provided employees the desired content. If test scores indicated learning problems, then instructors get feedback and the courses are redesigned so that the content can be delivered more effectively. Of course, learning enough to pass a test does not guarantee that the trainees can do anything with what was learned. Behaviour: Evaluating training at the behaviour level measures the effect of training on job performance through nterviews of training and their co-workers and observation of job performance. But behaviour is more difficult to measure than reaction and learning. Even if behaviours do change, the results that management desires may not occur. Results: Employers evaluate results by measuring the effect of training on the achievement of organisational objectives. Because results such as productivity, turnover, quality, time, sales, and costs are more concrete, this type of evaluation can be done by comparing records before and after training. The difficulty with the measurement is pinpointing whether training caused all the changes. Other factors may have had a major impact as well. Correlation does not imply causation. For example, a department manager for a shoe manufacturer has completed a supervisory training program. By comparing turnover in the department before and after the training, the company can obtain some measure of training effectiveness. But turnover is also dependent on the current economic situation, the demand for shoes, and the quality of employees being hired. Therefore, when evaluating results, managers should be aware of all issues involved in determining the exact effect of the training.