Page 180 - DMGT518_TRAINING_AND_DEVELOPMENT_SYSTEM

Unit 10: Training Evaluation

2. What is the total of training to the organisation? Notes
3. How many trainees/training days can the organisation afford?
4. What is worth of the training manager/trainer, where could he be placed in the
organisational hierarchy?
5. What is the cost of training in relation to production/service cost?
The training department cannot get away without having their costs analysed. Some are
scrutinized annually or once in two/three years. Even if the training costs are not looked at with
rigour, the training manager would like to know the worth of his function.

Calculating Costs

Costs are charges incurred for training and can be divided thus:

 The fees charged to the organization by the trainer
 The cost of travelling and accommodation involved
 Costs incurred, conceptually and actually, by the organisation’s staff in connection with
arrangements for the trainee’s attendance

 The trainee’s time
 Loss of production as a result of the trainee’s absence.
In cases of in-house training conducted by company trainers, for company trainees, in company
time and premises, exact costs are difficult to calculate and only a reasonable estimate can be
made.
In order to assess values, one must be able to attribute a cost to everything design, development
and delivery stage of training in terms of:

Fixed Cost

These include the costs which are reasonably permanent and regular and fixed over a period of
time, say a year. They can comprise:

1. Salaries, insurance and pension, contributions for all the people involved in the training
function including any guest speakers (or at least a proportion of their costs related to
their input to the training).
2. Cost of the training accommodation, water rates, capital equipment (e.g. furniture, cabinets,
etc.) and cleaning and regular maintenance costs. The accommodation would include any
office accommodation allocated to training and of course accommodation used for training.

Supportive Cost

They are the expenditure items for which costs are incurred for: (i) The trainers and (ii) The
learners.

They are the more occasional items than the fixed costs and can include:
(i) External accommodation costs for the training and the trainer’s training room hire,
equipment hire, bedroom and meals costs for the trainers in hotels and conference centres;

Travelling and out of pocket subsistence costs for the trainers;
Equipment, books and aids purchase and other provision and maintenance.

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