Page 64 - DMGT518_TRAINING_AND_DEVELOPMENT_SYSTEM

Unit 4: Training Design

CTI = cost of TNI, Notes
CS = cost of programme scheduling
CSO = share overhead of the department
Similarly, the formulae can be derived for:
Cost of TNI/TNA = Cost of diagnosis + Cost of appraisal (Initial) + Share of
overhead + Cost of interview survey.

Cost of programme = Cost of design + Cost of testing + Cost of retesting + Cost of
conducting + Cost of facilities + Cost of evaluation/ feedback.
Cost of conducting = Cost of course material + Hire charges of place + Cost of the
programme facilities + Cost of TA/DA + Cost of
refreshment/lunch etc. + Cost of stationery.
In all the above formulae factor for efficiency and to cover indirect cost like cost of motivation,
cost to develop climate or working conditions, etc. must also be incorporated. This factor may
vary from organisation to organisation and its accuracy depends on expertise of the T & D
specialists.

Cost Effectiveness

As pointed out above, the cost effectiveness will depend on invisible factors like:

(a) Cost of not learning: When trainee has no interest and does not perform to the desired
level of efficiency.
(b) Cost of motivation to: When the above exist and measures are inspired learning taken to
break the inspire learning barriers.
(c) Cost of organisational climate development: As above (b).
(d) Cost of learning: When employee is learning by trial & error method.

Evaluating the cost effectiveness process is one of the critical jobs of a HRD manager as amongst
the variables, the invisible costs as referred above has variables which are influenced by structure
of HRD organisation, behaviour of employees, organisational environment and various
unforeseen situations. Hence for cost effectiveness, a careful study of variable must be done and
suitable constants for above factors influencing the cost effectiveness must be suitably derived.

Cost Evaluation

Cost per trainee can be thus worked out by the following formula:
All the cost as discussed above*
CT = ...(2)
Personnel to be trained
KP (Knowledge after T&D)
Knowledge change (KC) = ...(3)
KB Knowledge before Training
This will require pre-evaluation and post evaluations of the employees:

SP Skill after T&D (SP) Post Evaluations
Skill Change (SC) = = ...(4)
SB Skill before T&D Pre Evaluation

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