Page 183 - DMGT518_TRAINING_AND_DEVELOPMENT_SYSTEM

Training and Development System

Notes Feasibility of Cost-Benefit Analysis

Analysing the worth of training investment in terms of its ultimate value is no doubt desirable
if not essential. Its feasibility decreases with:
(i) Increasing organisational hierarchy: It is easier to carry out such R.O.I. analysis for worker
than for managerial training.
(ii) Increasing generally of the training programme e.g. skill training, computer training,
vis-a-vis general management training.
(iii) Increasing level of evaluation: It is easy to carry out cost-benefit analysis at the department
level than at the organisational and the corporate level, i.e. the assessment becomes more
and more difficult with the complexity of the functions.
Systematically quantifying the worth of training and contribution to stakeholders is gaining
significance. Some approaches like the Balanced Scorecard system designed by Robert Kaplan
and David Norton* has steadily gained support. This approach strives to balance financial
indicators with learning and process efficiency.
Some users of scorecard have replaced the latter with more general ‘People’ element. David
Norton himself says in his foreword to Becker, Huselid and Ulrich’s Human Resources Scorecard*
“...the asset that is most important is the least understood, and least prone to measurement and
hence least susceptible to management.” Ulrich designed Human Resources Scorecard to balance
the twin H.R imperatives of cost control and value creation. The four components of the Scorecard
lists many possible measures of trainee outcome.

The expense of cost-benefit evaluation must be justified by its results. Use of tangible economic
indices for evaluating training can definitely strengthen the hands of the trainers and in turn
improve the organisational commitment to its human resource development.

Task Develop a plan to convert the HRD department of an organization from expense
based to a profit center concept using the concept of Training Evaluation.

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Caselet Achieving Work-life Balance: The TCS Way

At TCS, HR managers strive to make work a joyful experience and encourage work-life
balance through "Maitree", a unique platform for all employee engagement activities.
Different clubs like Theatre Club, Bibliophile Club, Adventure and Trekking Club, Fitness
Club, Sanctuary Club, Music Club and Community Services Club, among others facilitate
fun at work. These clubs organise various activities like yoga, dance lessons, music
competitions, trekking expeditions, sports activities, regular visits to NGOs, among other
activities for TCS employees." We also extend employee engagement to families of our
employees. For example, on Family Day, employees can bring their families to TCS and
take them around the workplace. Similarly, we organise fun activities like painting lessons,
games, movies, etc for children of TCS employees. This creates a bond not just between the
employee and the organisation but also with the family and drives retention. "TCS offers
a flexible work environment where employees are given the option to work part-time or
work from home under special circumstances. We offer adoption leave to the parent
irrespective of the gender. If some of our female associates choose to discontinue work for
Contd...

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