Measurement of Effectiveness of Training Programs

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MEASUREMENT OF EFFECTIVENESS OF TRAINING PROGRAMS IN INFORMATION TECHNOLOGY INDUSTRY

Submitted by J.R.VAISHNAVI PRASAD 7NBMD002 Under the guidance of MS. SHILPA KULKARNI

ICFAI NATIONAL COLLEGE, JP NAGAR, BANGALORE

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DECLARATION

I hereby declare that the Management Thesis entitled A STUDY ON MEASUREMENT OF EFFECTIVENESS OF TRAINING PROGRAMS IN INFORMATION TECHNOLOGY INDUSTRY submitted to ICFAI National College in partial fulfillment of the requirements for the award of degree of MASTER OF BUSINESS ADMISTRATION is a record of the original work carried out by me during the period of study at ICFAI National College and this work has not formed the basis for the award of any degree/diploma/associate ship/ fellowship of similar title to any candidate of any university.

Signature of the Faculty Guide

Signature of the student

Place: Date:

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TABLE OF CONTENTSACKNOWLEDGEMENT..............................................................................................................4 INTRODUCTION.......................................................................................................................9 Objectives............................................................................................................................9 Limitations.........................................................................................................................10 Research methodology......................................................................................................10 .........................................................................................................................................10 Measurement of training effectiveness..............................................................................12 Kirkpatricks training evaluation model..............................................................................13 INDUSTRY PROFILE................................................................................................................16 Information Technology industry........................................................................................16 COMPANIES PROFILE.............................................................................................................19 Cisco Systems Inc..............................................................................................................19 Aztecsoft............................................................................................................................21 Huawei Technologies.........................................................................................................23 Symphony Services............................................................................................................25 General Motors Technical Centre.......................................................................................26 DATA ANALYSIS.....................................................................................................................28 I PRE TRAINING PHASE.......................................................................................................28 II MEASUREMENT OF REACTIONS......................................................................................34 III MEASUREMENT OF LEARNING.......................................................................................35 IV MEASUREMENT OF BEHAVIOR........................................................................................37 V MEASUREMENT OF RESULTS...........................................................................................38 VI OVERALL TRAINING EFFECTIVENESS:.............................................................................40 Findings.............................................................................................................................45 Suggestions.......................................................................................................................46 Conclusion.........................................................................................................................47 REFERENCES.........................................................................................................................48 ANNEXURES.......................................................................................................................50

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ACKNOWLEDGEMENT'Gratitude is the memory of the heart' - Jean Baptiste Massieu, translated from French

I thank The Almighty for his immense grace and blessings showered throughout this period of management thesis preparation.

My sincere thanks to Ms. Shiny Samuel, Learning and Development Manager, Cisco Systems; Ms. Roopashri, HR Manager, Aztecsoft; Ms. Swathi shetty, Assistant Training Manager, Huawei Technologies; Ms. Swathi Srivastava, Assistant HR Manager, Symphony Services and Ms. Rituparna Dasgupta, Training Manager, GMTC; for their valuable information on training and development on which this report is based.

I extend my heartfelt gratitude to my Faculty Guide Ms. Shilpa Kulkarni for her expert guidance and encouragement in all my endeavors of preparing the management thesis. But for her keep interest and constructive criticism, this study would not have been as successful as it is now.

Finally, I would like to thank my family and friends for their constant support throughout the study.

J.R.VAISHNAVI PRASAD

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LIST OF ILLUSTRATIONSFigure 1 PURPOSE OF TRAINING EVALUATION......................................................................13 Figure 2 KIRKPATRICKS TRAINING EVALUATION MODEL......................................................14 Figure 3 LEVELS OF TRAINING NEEDS.................................................................................29 Figure 4 KIRKPATRICK MODEL FOR EVALUATING EFFECTIVENESS OF TRAINING PROGRAMS34 Figure 5 KIRKPATRICK'S 4 LEVELS OF EVALUATION AND PHILLIPS' ROI METHODOLOGY ..............................................................................................................................................39

LIST OF TABLESTable 1 EFFECTIVENESS OF REACTIONS IN MEASURING TRAINING SUCCESS.......................41 Table 2 EFFECTIVENESS OF LEARNING IN MEASURING TRAINING SUCCESS.........................41 Table 3 EFFECTIVENESS OF BEHAVIOR IN MEASURING TRAINING SUCCESS.........................41 Table 4 EFFECTIVENESS OF RESULTS IN MEASURING TRAINING SUCCESS...........................42

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SUMMARY

According to Planty, Cord M.C. and Efferson, Training is the continuous, systematic development among all levels of employees of that knowledge and those skills and attitudes which contribute to their welfare and that of the company. As organizations have started to realize the need for human resource development for the survival of the business in the ever changing competitive world, the importance of training and development has increased. Training makes a very important contribution to the development of an organizations human resources. To achieve the purpose of training, it has to be effectively managed so that the right training is given to the right people, in the right form, at the right time and at the right cost. Training is a systematic process which involves identification of training needs, formulation of training objectives, designing of training program, administration of training and evaluation of training effectiveness. The various resources of the organizations are put to use to train the employees. Therefore, justification of resource utilization has to be made by measuring the effectiveness of training programs to ensure achievement of desired results. This process of comparing the post training results to the objectives expected by administrators, trainers and trainees is known as training evaluation. Measurement of training effectiveness can be done by different methods. This study entitled Measurement of effectiveness of training programs in IT industry tries to understand the training effectiveness measurement in IT companies based on Kirkpatricks model. According to this model, effectiveness of training programs can be measured at four levels: reaction, learning, behavior and results.

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The present study is a qualitative research on training effectiveness through semi structured interviews with training and development managers of five IT organizations. The five IT organizations are into different facets of IT such as hardware, telecommunication solutions, software engineering services and research and development. The study attempts to explore the training and development function in IT industry with respect to measurement of training effectiveness.

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INTRODUCTION

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MEASUREMENT OF EFFECTIVENESS OF TRAINING PROGRAMS IN INFORMATION TECHNOLOGY INDUSTRY

INTRODUCTIONTraining is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance of employees. It can be considered as the systematic process which has its organizational purpose to impart and provide learning experience. The objectives of training include increase of productivity, improvement of quality, prevention of technological obsolescence and enhancement of employees personal growth. The project entitled Measurement of effectiveness of training programs in IT industry is an attempt to understand the process of training effectiveness evaluation followed by different companies in the Information Technology industry based on the Kirkpatricks model. 5 IT companies are studied for the management thesis.

ObjectivesThe following are the objectives of the study: To understand the prerequisites of training of various Information Technology companies To get a better insight on the training effectiveness measurement levels adopted by different Information Technology companies according to the Kirkpatricks model

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LimitationsThe limitations of the study are: The sample selected for the study might not be representative of the universe The study would be conducted from the perspective of the organization; employee perspective would not be considered The study covers the pre-training phase and post-training phase not considering the training phase.

Research methodologya) STATEMENT OF THE PROBLEM: As training has become imperative for the development of human resources in an organization, the study attempts to understand the parameters considered in designing a training program. The criteria for measuring training effectiveness across the IT industry are studied. b) DATA COLLECTION: The data is collected through primary and secondary sources. Semi structured interview method is used for data collection The secondary data sources include books and websites. c) TARGET POPULATION: The target population consists of Information technology companies, both hardware and software, in Bangalore. d) SAMPLING METHOD: Convenient sampling method is adopted for the study. The sample size is 5 and the sampling unit is an IT company.

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The process of training is as follows: Identification of training needs: The first step in the process of training is the identification of training needs. The need for training arises when there is a gap between expected performance and existing performance. The results of training needs analysis will highlight the content and scope of training. Development of training design: A training design is a blue print of a training program which outlines the training objectives, contents and methods. Stating the purpose of training and ways and means of achieving the purpose is of prime importance as they direct the entire training program. Selection of trainer: As the trainer acts as the medium for delivering the training content, trainer has to be selected after considering the participant profile, trainers proficiency and other similar factors. Administration of training: Training administration refers to the design and development of training programs. It includes various activities ranging from information dissemination of program availability to supporting training evaluation. Evaluation of training: Measuring the effectiveness of training so as to ensure that the training objectives have been met is the last step in the training process. Although different methods of evaluation are in existence, the purpose of training effectiveness measurement is to determine the level of success of the training program in terms of human resource development.

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Measurement of training effectivenessAs organizations have started to realize the importance of human resource development, the investments made on training the employees has increased. As a result, measuring the effectiveness of training programs has gained significance in the recent times.

Purposes of Training Evaluation The five main purposes of training evaluation are: Feedback: It helps in giving feedback to the candidates by defining the objectives and linking it to learning outcomes. Research: It helps in ascertaining the relationship between acquired knowledge, transfer of knowledge at the work place, and training. Control: It helps in controlling the training program because if the training is not effective, then it can be dealt with accordingly. Power games: At times, the top management (higher authoritative employee) uses the evaluative data to manipulate it for their own benefits. Intervention: It helps in determining that whether the actual outcomes are aligned with the expected outcomes.

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Figure 1

PURPOSE OF TRAINING EVALUATION

Source: www. traininganddevelopment.naukrihub.com/training-evaluation

Kirkpatricks training evaluation modelThe effectiveness of training programs can be evaluated by different means. One of the widely used models for measuring training effectiveness is the Kirkpatricks learning evaluation model proposed by Donald L Kirkpatrick in the year 1959. The model consists of four levels reaction, learning, behavior, results through which the effectiveness of training programs can be measured. Reaction: The reaction level evaluates the feelings of the participants towards the training program. Feedback can be obtained through various tools such as questionnaires on the training content, material, method, trainer style and facilities. The reaction of participants is a critical factor in the continuance of training programs. Most trainers feel that initial receptivity provides a good atmosphere for learning the material in the instructional program but not necessarily cause high levels of training.

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Learning: The increase in knowledge, skills, and attitude is measured in the learning level of Kirkpatricks model. Tests, surveys, interviews are the commonly used tools of evaluating learning. A before-and-after approach is usually used to trace learning to the training program. It is relatively easy to measure the learning that takes place in technical trainings rather than behavioral trainings. Behavior: At the behavior level, the transfer or application of learning through training is measured. A comparison of performance before and after training would help in understanding the behavioral changes that have taken place as a result of training. The behavioral implications are normally measured after a few months of the training. Control group studies are commonly used for measuring training effectiveness. Results: The impact of improved employee performance on the business environment is evaluated at the results level. Quality improvement, attrition ratio and organizational growth are some of the measures of evaluating training results. The challenge is to identify the degree of the trainee's input and influence on the results of the organization. Figure 2 KIRKPATRICKS TRAINING EVALUATION MODEL

Source: tryout.questionmark.com/learningcafe/1919374234/Assessments_and_Kirkpatrick_Model.ppt

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INDUSTRY PROFILE

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INDUSTRY PROFILE

Information Technology industryInformation technology is an integral part of nearly every major global industry. Unlike other common industries, the IT industry is knowledge-based. Efficient utilization of skilled labor forces in the IT sector can help an economy achieve a rapid pace of economic growth. The IT industry helps many other sectors in the growth process of the economy. Information Technology (IT), as defined by the Information Technology Association of America (ITAA), is "the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware." IT deals with the use of electronic computers and computer software to convert, store, protect, process, transmit, and securely retrieve information. Today, the term information technology encompasses many aspects of computing and technology, and the term is more recognizable than ever before. IT professionals perform a variety of duties that range from installing applications to designing complex computer networks and information databases. A few of the duties that IT professionals perform may include data management, networking, engineering computer hardware, database and software design, as well as the management and administration of entire systems. Information Technology (IT) is a general term that describes any technology that helps to produce, manipulate, store, communicate, and/or disseminate information. The Indian IT sector is growing at a very fast pace. In 2006, it has earned revenue of about US $ 40 billion with a growth rate of 30%. According to NASSCOM (National Association of Software and Service Companies) IT sector is expected to generate 2.3 million jobs by 2010.

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According to the recent review by Harvard Business Review, there is a direct link between training investment of the companies and the market capitalization. Those companies with higher training investment had higher market capitalization. It clearly indicates that the companies which have successfully implemented training programs have been able to deliver customer goals with effective results. It shows that good training results in enhancement of individual performance, which in turn, helps the organization in achieving its business goals. Training is a tool that can help in gaining competitive advantage in terms of human resource. With the growing investment by IT companies in the development of their employees many companies have now started their own learning centers. Accenture has Internet based tool by the name of My Learning that offers access to its vast learning resources to its employees. Companies are investing in both the technical training, which has always been an essential part in IT industry, as well as in managerial skills development. Companies now keep aside 3-5% of revenue for training programs. As an example, TCS has decided to allocate 4% of its revenue towards training of employees.

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COMPANIES PROFILE

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COMPANIES PROFILE

Cisco Systems Inc.

Cisco Systems, Inc. is the worldwide leader in networking for the Internet. Today, networks are an essential part of business, education, government and home communications, and Cisco Internet Protocol-based (IP) networking solutions are the foundation of these networks. Cisco hardware, software, and service offerings are used to create Internet solutions that allow individuals, companies, and countries to increase productivity, improve customer satisfaction and strengthen competitive advantage. The Cisco name has become synonymous with the Internet, as well as with the productivity improvements that Internet business solutions provide. Cisco was founded in 1984 by a small group of computer scientists from Stanford University. Since the company's inception, Cisco engineers have been leaders in the development of Internet Protocol (IP)-based networking technologies. This tradition of innovation continues with industry-leading products in the core areas of routing and switching, as well as advanced technologies in areas such as Home Networking, IP Telephony, Optical, Network Security, Storage Networking and Wireless LAN. The vision of Cisco is to change the way people work, live, play and learn. The organization has close to 65,225 employees worldwide John T. Chambers is the Chairman and Chief Executive Officer of Cisco Systems Inc. During the financial year 2007-2008, Cisco Systems posted a revenue of $39.5 billion. Cisco Systems India Pvt Ltd. commenced operations in 1995. India, as a region, is part of the APAC theater. APAC theater contributes to about 11 percent of the global revenue of Cisco Systems. It has 7 sales offices across the region in New Delhi, Mumbai, Bangalore, Chennai, Pune, Kolkata and Hyderabad. The headcount in India is over 4000, including R&D, sales and

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business support staff. Cisco Global Development Center in Bangalore is the largest outside of the US. The market share of Ciscos core technologies in India is as follows: Routers 81.1% Switches 74.4% Total LAN 81.6% Some of the key customers of Cisco Systems in India include Ford India, Dr. Reddys Laboratories, Tata Group, Mahindra & Mahindra, Larsen & Toubro, Gas Authority of India, Indian Oil Corporation, State Bank of India, Life Insurance Corporation, Future Group Infosys, Wipro, IBM, Adobe, Intel, Cognizant Technologies, Tata Consultancy Services and Texas Instruments.

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Aztecsoft

Aztecsoft is a 2,200 people strong software engineering services partner for software product companies. It provides full lifecycle product engineering, independent testing, professional services and sustained engineering services in various domains such as application and Infrastructure Software, new media and internet, financial services software and life sciences software. The company has developed and tested over 1600 products. It has its presence in Unites States of America, United Kingdom and Australia apart from India. Mission: We delight customers by engineering software solutions in a collaborative environment of innovation, growth and relentless execution. Vision: To be the fastest growing, most efficient and reliable global software engineering services company in the world. Values: Integrity, Passion for Excellence, Fairness, Teamwork, Transparency, Empowerment, Respect for the Individual. Aztecsoft provides 4 key advantages to its customers software engineering needs which are increased speed to market, improved quality, managing uncertainty, and access to specialists. Some of the awards and recognitions won by Aztecsoft are as follows:

'Best IT/Telecom Recruitment Advertisement' and 'Best use of Visuals in an Advertisement' at the Pink Slip Awards 2008 "Innovative Network Award 2007" from Airtel Enterprise Services21

22nd in Business World's list of Top 100 mid-size companies in India. Testing Leadership Award 2007" by QAI India Limited 28th in the Deloitte 2005 Technology Fast 50 India listing International Organization for Standardization (ISO) 27001:2005 certification for information security Assessed at Software Engineering Institute (SEI) Capability Maturity Model Integration Software (CMMI-SW) Version 1.1 Maturity Level 5 (the highest, Optimizing Level of Maturity)

A few customers of Aztecsoft include Microsoft, AOL, Fiberlink, Cadence, Simdesk technologies and Embarcadero technologies.

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Huawei Technologies

Huawei is a world-leading telecom solutions provider focused on building long-term partnerships with telecom operators. It has built up product portfolios including mobile network, broadband network, IP-based, optical network, telecom value-added service, and terminal. The products and solutions offered by Huawei are deployed in over 100 countries and serve over one billion users worldwide. In 2007, 72% of contract sales were from the international market, and the organization has set up more than 100 branch offices in order to provide quick services to our customers. It has established 12 R&D centers around the world. In addition, there are 31 training centers worldwide to help customers and local people to study advanced management, technologies and so on. Huawei believes in localizing its global operations, and makes it a point to hire local employees. This not only enhances understanding of the local market, but also contributes to the local economy by increasing employment, especially in less developed regions.

Vision: To enrich life through communication. Mission:

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To focus on our customers' market challenges and needs by providing excellent communications network solutions and services in order to consistently create maximum value for customers. Huawei Technologies has fulfilled the needs of 70% of the world's top 50 telecom companies. As a singular mark of recognition by the world's leading mobile operator, Vodafone awarded Huawei a 2007 Global Supplier Award citing delivery of highly competitive products and services across the group's network. Huawei was the only network equipment supplier to be awarded this specific accolade. According to the World Intellectual Property Organization (WIPO), Huawei moved up 9 places to become the 4th largest patent applicant under the WIPO Patent Cooperation Treaty (PCT), with 1,365 applications published in 2007. By the end of 2007, Huawei had deployed over 100,000 GSM green base stations, saving approximately 570 million kilowatt-hours (kWh) or 170,000 tons of coal. This effort Huawei technologies effort towards environmental protection and energy conservation shows its corporate social responsibility.

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Symphony Services

Symphony Services is a global provider of product engineering outsourcing services dedicated to helping clients compress time to market, achieve higher innovation yields and improve productivity to increase the value from their R & D investments. From strategic consulting guidance to complete product lifecycle capabilities, Symphony is distinguished by a singular focus on product development and collaborative, end-to-end solutions. Symphony Services was founded in 2002 with initial funding from Romesh Wadwhani, Chairman and CEO of Symphony Technology Group. In 2003 Symphony Services raised growth capital from TH Lee Putnam Ventures. There are 3500+ professionals presently working with Symphony Services. It has been recognized as #1 Software Engineering Services Provider and Top 50 Best Managed Companies for 2007 by Black Book of Outsourcing Mission To create unprecedented value for all stakeholders through Innovation, Collaboration and Operational Excellence in partnership with clients that embrace globalization to boost engineering and R&D performance and optimize value across the full product and service lifecycle. The values of Symphony Services are client delight, integrity, employee empowerment, esprit de corps, measurable value, innovation and entrepreneurial spirit.

Symphony Services has a delivery record of more than 1000 products released during 2007. It has witnessed a 48% growth year-over-year.

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Symphony Services has 150+ clients. Some of them are Avaya, AMD, Juniper Networks, Motorola, Qualcomm, Siemens, McGraw-Hill Companies and SUN Microsystems.

General Motors Technical Centre

General Motors Technical Centre - India (GMTC-I) is a 100% subsidiary of the automobile legend, General Motors Corporation USA. This centre at International Tech Park Ltd. (ITPL) Bangalore houses the R&D and Engineering Centre that provides Computer-Aided Design/Manufacturing/Engineering (CAD / CAM / CAE) and Electrical technology support to GMs global automotive engineering efforts. This organization adds to GMs engineering capability in Asia Pacific, complementing similar technical centres in Australia and China. General Motors India, incorporated in 1994 as a 50:50 joint venture company with the CK Birla Group of Companies, became a fully owned subsidiary of GM in 1999. The company was restructured in 1999 and was converted from a Public Limited company to a Private Limited company. General Motors Corporation, the world's largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 266,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 35 countries. General Motors India is now a wholly-owned subsidiary of General Motors Corporation, the largest automaker in the world. It offers products under the Chevrolet brand in the country. Introduced in India in 2003, under the banner For a special journey called life, Chevrolet has emerged as one of the fastest growing brand names in India. Today, the Chevrolet brand clearly

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is established for quality, reliability, safety, innovation, value for money proposition, environment-friendliness and customer care. There are 1658 employees working for General Motors Technical Centre in Bangalore. This centre provides research assistance to its internal customers by deploying technology

DATA ANALYSIS

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DATA ANALYSISAnalysis and interpretation of dataThe data for the study was collected by interviewing the training managers of 5 IT organizations. The following analysis of data is based on pre-determined dimensions of training and commonalities of answers obtained from the training managers. The dimensions considered for training evaluation analysis are pre training phase, measurement of reactions, measurement oflearning, measurement of behavioral changes, measurement of results and overall training

effectiveness based on Kirkpatricks levels.

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PRE TRAINING PHASE The first phase of training is the pre training phase which comprises of training needs identification, selection of participants and trainer, formulation of training strategy and training design. This stage is of utmost importance as it serves as the basis for successful training implementation and evaluation.1.

Frequency of training needs analysis: Training needs can be identified by deducting the existing skills from the job requirements. A training need exists when there is a gap between what is required of a person to perform his/her work competently and what he/she know. A training needs analysis is the method of determining if a training need exists and if it does, what training is required to fill the gap. Inferences: According to the study, it can be noted that in IT organizations, training needs analysis is conducted once in a year. However, the introduction of a new technology or assignment of a new project to a team might result in conducting a need-based training need analysis.

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2.

Sources of information for training needs analysis: There are three levels of training needs assessment organizational level, task level and individual level. Organizational level assesses the organizational effectives to determine training needs. Task level provided data on a particular job to identify the knowledge, skills and abilities required for optimum performance. Individual level assesses the performance of employees so as to determine the training needs. Figure 3 LEVELS OF TRAINING NEEDS

Source: www.traininganddevelopment.naukrihub.com

Inferences: Individual level: The study reveals that the performance appraisal of employees serves as the primary source of information to identify training needs. Cisco systems follow a systematic process of training needs assessment. At the beginning of every fiscal year, the employees draft their development plan after discussing with their respective supervisors. This is managed by an automated system known as E-Performance Management (EPM) which acts as an input for training design development.

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The competency assessment performed by Symphony Services and Aztecsoft also provides input to training needs identification. The skill metrics of GMTC is an important source of training needs analysis. On a scale of 5, an employee is supposed to score 3 and above failing which he/she will have to undergo training in the particular skill enhancement. Operational level: The business plan of Huawei Technologies is considered as a primary source of training needs assessment as the project demands for a specific skill has to be fulfilled through training. Organizational level: The training needs assessment of Aztecsoft includes surveillance of internal as well as the external environment. Aztecsoft conducts a market analysis to identify emerging technologies and the probable clients who might adopt those technologies. This acts as an input to train employees. 3. Basis of participant selection: Selection of participants is one of the steps in the pre-training phase. The question of participant selection arises due to ceiling on the number of participant for a training program. The urgency of training requirement is an important consideration in participant selection. Inferences: According to the study, the participants of training programs are selected based on the nominations given by managers. The employees might nominate themselves for the training which after being approved by the managers is taken forward by the training department. In GMTC, engineers within a team act as training coordinators who send nominations with the managers approval.

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4.

Mandatory training man days: Training mandays indicate the number of days an employee has to spend in a year on training. Training man days are determined after considering various factors such as the objectives of the organization, employees profile, job competencies and budget. Inferences: From the study, it is inferred that Cisco Systems and Huawei Technologies do not specify mandatory training man days to be completed by their employees during the fiscal year. Symphony Services and Aztecsoft has a training policy which makes it mandatory for its employees to undergo a minimum of 10 man days and 40 man days respectively. At GMTC, the number of hours an employee has to undergo training in a year is 2 for engineers and 6 for managers in addition to the 10 hours web-based mandatory training to be undergone by all employees.

5. Training design considerations: A training design is a blue print of a training event or exercise. It gives a detailed plan of what to do, why to do and how to do. The following are the steps involved in designing a training program: Choose a training strategy Break the general training objectives into constituent parts Mention the specifications of different training programs Decide on different training packages Design a training program with detailed training events and schedules Some of the factors considered in designing a training program are suitability of the training to meet identified training needs, availability of resources and expected quality standards. Inferences: Training objectives and participant profile form the basis of a training design according to the study. While the cost of training is also considered by Aztecsoft and Symphony31

Services, the feedback obtained from participants on previous trainings serve as an input of training design at GMTC.

6.

Classifications of trainings: Training programs can be classified into different kinds based on different factors. The nomenclatures used differ from one organization to another. Inferences: The study reveals that Cisco Systems and Aztecsoft classify their training into technical and behavioral trainings. The training programs at Huawei Technologies are classified into role-based trainings, project-based trainings, compulsory trainings and soft skills trainings. Compulsory trainings include induction, quality management and testing trainings. GMTCs trainings are classified under four heads which are functional, soft skills, process and mandatory trainings. Symphony Services classifies its trainings into technical and non-technical where non-technical trainings encompass soft skills, behavioral and people management trainings.

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Tools of trainings: Training methods differ depending upon the objective, participant profile, cost and time availability. The two classifications of training methods are on-the-job trainings and offthe-job trainings. While on-the-job trainings are used for technical trainings, off-the-job trainings are suitable for behavioral trainings. Inferences: On-the-job training tools are widely used by the organizations under study for technical trainings. Role plays and case studies are the commonly used tools of behavioral learning. Cisco believes that learning takes place through 3es: experience, exposure and education. Hence, it emphasizes on experiential learning. Self-learning programs form an integral part of the learning tools of Aztecsoft as the initiative of the employees indicates their interest towards learning.32

8. Hiring of external trainer: Trainer is one of the human factors that have a bearing on training effectiveness. The knowledge, skills and attitude of the trainer should suit the requirements of the training. Trainers can be internal to the organization or hired from outside. Inferences: The study reveals that non-availability of internal experts is the prime factor leading to hiring of external trainers. At Cisco Systems, all trainings are outsourced. Among the different vendors with whom Cisco deals, the best vendor for the particular training is chosen. Only 10% of the trainers are external at Aztecsoft. This is mainly due to the low cost factor inherent in trainings provided by internal experts.9.

Methods of ensuring similarity in training across branches: Organizations try to ensure quality standards in all its processes. Training is no exception. It is imperative for the organizations to ensure similarity in delivery of trainings across different branches. Inferences: It is inferred from the study that most of the times, the same training material for a particular training is used for trainings conducted at different branches of the organizations. Same trainers might also travel to the various branches of the organization to ensure similarity in delivery of training.

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II

MEASUREMENT OF REACTIONS

The training would be delivered after considering the various factors discussed above. The third phase of training involves training evaluation. According to Mathis and Jackson Evaluation of training compares the post-training results to the objectives expected by administrators, trainers and trainees. The process of examining a training program is called training evaluation. Training evaluation checks whether training has had the desired effect. Training evaluation ensures that whether candidates are able to implement their learning in their respective workplaces, or to the regular work routines. There are different models proposed to evaluate the effectiveness of training. The commonly used model is Kirkpatricks model. Donald Kirkpatrick developed the model of training evaluation in 1959. This 4-level model is considered to be simple, flexible and complete. The four levels of Kirkpatricks model are reaction, learning, behavior and results. Figure 4 KIRKPATRICK MODEL FOR EVALUATING EFFECTIVENESS OF TRAINING PROGRAMS

Level 4 Results Level 3 Behavior Level 2 Learning Level 1 Reaction

- What organizational benefits resulted from the training? To what extent did participants change their behavior back in the workplace as a result of the training? To what extent did participants improve knowledge and skills and change attitudes as a result of the training? How did participants react to the program?

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Source: www.businessperform.com

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1. Feedback on trainings: Level one of Kirkpatricks model measures the feelings of the participants towards the training program. The reactions of the participants can be measured by seeking feedback on the training. It is important to include closed-ended items (including rating scales) as well as open-ended items in the feedback form. Mentioning of names in the feedback forms can be made optional to avail the advantages of anonymity over confidentiality.

Inferences: According to the study, the organizations obtain feedback on all training programs. The usual way of obtaining feedback from participants is through questionnaires which might be in the paper form or electronic form. 2. Aspects covered in a feedback form: A questionnaire can identify what to keep, delete, or improve in a training program design. As a result, changes may be made in the areas of content, methods, media, trainer style, facilities and/or course materials. Inferences: The study reveals that the feedback questionnaires of organizations seek feedback on course content, trainer, facilities and training administration. The organizations are of the view that the participants reaction on the success of the training to meet its objectives is a prime factor to measure training effectiveness.

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MEASUREMENT OF LEARNING

The change in knowledge, skills and attitudes as a result of training is measured in level two of Kirkpatricks model. Learning evaluation is the measurement of the increase in knowledge or intellectual capability from before to after the learning experience. Interviews, tests, surveys and observations are a few methods of measuring learning.

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1. Trainings involving measurement of learning: The measurement of learning through training is restricted to a few trainings only. This is mainly because of the difficulty in measuring changes in attitude. Inferences: It is inferred from the study that learning through training is measured for technical trainings only. Learning resulting from behavioral training is usually not measured due to the complexity in measuring soft skills acquired and attitudinal changes. 2. Time of measuring learning: The time period of measuring learning is equally important. In order to find out the exact increase in knowledge, skills, attitude, a pre and post analysis is performed. Inferences: The study reveals that a pre and post training test is conducted by most of the organizations. Huawei Technologies conducts a test only after the training to assess the knowledge or skill level of the participants resulting from training.3.

Methods of measuring learning: There are different methods of measuring learning. Interviews, tests, surveys and observations are a few methods of measuring learning. Use of control groups enhances the accuracy of learning measurement. Inferences: Test is the commonly used method of measuring learning. The skill metrics of GMTC is used to assess the learning through training. On a scale of 5, an employee is supposed to score 3 and above for successful completion of training. Aztecsoft relies on feedback from managers on knowledge increase in employees who had undergone the training to measure learning through training.

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IV

MEASUREMENT OF BEHAVIOR Level three of Kirkpatricks model measures the transfer or application of learning on the job. The changes in the performance of the employees as a result of training are measured at this level. 1. Measurement of impact of training on performance: Impacts are an expression of the changes produced in a situation as a result of training activities undertaken with certain training objectives. The three possible impacts of training are i. ii. iii. Positive impacts in desirable direction Neutral or no impact in any direction Negative impact in the undesirable direction

The organizations objective is to create a positive impact on the performance of employees in the desirable direction through training. Inferences: It is inferred from the study that feedback from managers is obtained by most of the organizations to measure the transfer or application of training by employees. Aztecsoft conducts a 60 day assessment where the employees performance after 60 days of training is evaluated by the manager to assess the impact of training on performance. Huawei Technologies and Symphony Services are yet to implement level three of Kirkpatricks model.2.

Trainings involving measurement of behavior: Measurement of behavior is vital to assess the effectiveness of training. As the goal of the organization is to improve employee performance, the transfer of training to the real work environment has to be measured. However, it is difficult to trace the behavioral changes to training by eliminating other impacts. Therefore, organizations measure application of training only to a few training programs after considering the feasibility of measuring transfer of training on the job.37

Inferences: The study reveals that behavioral changes are measured for technical trainings. Due to the difficulty of attributing behavioral changes in managerial skills to training, level three evaluation is restricted to technical trainings.

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MEASUREMENT OF RESULTS Measurement of results tries to measure the contribution of training towards the bottomline results of the organization. Level four outcomes are either changes in financial outcomes (such as positive ROI or increased profits) or changes in variables that have a relatively direct effect on financial outcomes at some point in the future. Examples of different kinds of outcomes are increased quality of work, higher productivity, improved human relations, reduction in wastage of resources and increased profits. 1. Methods of measuring results: Results evaluation is the effect on the business or environment resulting from the improved performance of the trainee. Measures of results include key performance indicators in terms of volume or values, attrition rate, quality compliance and achievement of standards. Inferences: The study reveals that most of the organizations do not measure the results of training due to the difficulty involved in establishing firm evidence that a training program was the key or only source that produced the level four results or outcomes. Cisco Systems measures results of training by considering successful delivery of projects on time. Results or outcomes of training are measured at GMTC by calculating the project hours taken before and after the training and increase in productivity. The measurement of results is restricted to technical trainings.

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2. Measurement of ROI and its scope in the future: According to Som Mittal, President, NASSCOM, IT companies in India spend $5000 in training a fresh engineer and $3000 in training a fresh BPO employee. A study of 15 countries in the Organization for Economic Cooperation and Development found that the majority of enterprises believe employee training is responsible for "productivity improvements, greater workforce flexibility, savings on material and capital costs, improved quality of the final product or service and a more motivated workforce. However, many companies have not measured the benefits and the cost of training in a way that reveals the rate of return on a firm's investment. When organizations spend a significant amount of their revenues on training, it is imperative to measure the return on investment. The key proponent of training ROI is Jack Phillips. He expressed ROI as a ratio of net benefits to cost. It can be calculated using the following formula: %ROI = (Total benefits program costs/ Program costs) * 100 Figure 5 KIRKPATRICK'S 4 LEVELS OF EVALUATION AND PHILLIPS' ROI METHODOLOGY

Source: www.5leveltraining.com

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Inferences: It is inferred from the study that all the organizations are still in level three or four of Kirkpatricks model. A few of them opined that there is scope for measuring ROI in the future. However, considerable time would be required to devise a proper methodology for measuring training ROI.

VI

OVERALL TRAINING EFFECTIVENESS: Kirkpatricks model prescribes four levels of measuring training effectiveness. The ultimate objective of training evaluation is to find out if the training program had met its goals and was of benefit to the organization. The overall training effectiveness is measured by summing up the evaluation of training effectiveness under various levels. 1. Effectiveness of different levels of Kirkpatricks model: The four levels of Kirkpatricks model provide valuable information to the organization in evaluating training effectiveness. However, the organizations consider only a few levels as most effective in measuring the effectiveness of trainings. Inferences: The IT organizations surveyed have implemented Kirkpatricks model of training evaluation at different levels. Some organizations are yet to move to level three while some are experimenting on implementation of level four of Kirkpatricks model. The following table shows the effectiveness of the four levels of Kirkpatricks model in evaluating training success as perceived by the training managers:

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Table 1

EFFECTIVENESS OF REACTIONS IN MEASURING TRAINING SUCCESS ORGANIZATION Cisco Systems Aztecsoft Huawei Technologies Symphony Services GMTC EFFECTIVENESS Effective Very effective Effective Very effective Not so effective Source: Primary data

Table 2

EFFECTIVENESS OF LEARNING IN MEASURING TRAINING SUCCESS ORGANIZATION Cisco Systems Aztecsoft Huawei Technologies Symphony Services GMTC EFFECTIVENESS Effective Very effective Effective Not applicable Very effective Source: Primary data

Table 3

EFFECTIVENESS OF BEHAVIOR IN MEASURING TRAINING SUCCESS

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ORGANIZATION Cisco Systems Aztecsoft Huawei Technologies Symphony Services GMTC

EFFECTIVENESS Very Effective Effective Effective* Not applicable Effective Source: Primary data

* - If implemented on a full-fledged basis

Table 4

EFFECTIVENESS OF RESULTS IN MEASURING TRAINING SUCCESS ORGANIZATION Cisco Systems Aztecsoft Huawei Technologies Symphony Services GMTC EFFECTIVENESS Very Effective* Effective* Effective* Not applicable Very effective * Source: Primary data

* - If implemented on a full-fledged basis

As Symphony Services has not implemented levels two to four of Kirkpatricks model, the Assistant Training Manager opined that the effectiveness of levels two to four can be assessed only after implementation.

2. Measures taken if training objectives are not met: The first step in designing a training program is to define the training objectives. The other aspects of the training design are decided based on the training objectives. If the training objectives are not met at the end of the training, all the resources utilized for the42

training might go waste. Hence, the organizations should ensure that the objectives of the training are achieved. Inferences: It is inferred from the study that when the training objectives are not met, the organizations conduct a post training analysis to identify the cause of the problem. Refresher training course is the common solution to the problem. In case of critical trainings, the organizations repeat the training if training goals are not achieved. Changes in training design and hiring of external experts are other measures taken in such circumstances.

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FINDINGS AND SUGGESTIONS

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FINDINGS AND SUGGESTIONSThe study on measurement of effectiveness of training programs in Information Technology industry has revealed a lot of information on pre-requisites of training and training evaluation. The responses of various IT organizations represent the training practices of the Information Technology industry.

FindingsThe following are the important findings of the study:1.

In IT industry, training needs analysis is conducted annually. Performance appraisal is the important source of training needs analysis. The participants for trainings are usually nominated by the managers. The objective or purpose of the training acts as an important training design consideration.

2.

3.

4.

5.

Non-availability of internal expert compels IT organizations to hire external experts for a few trainings.

6.

To ensure similarity in the delivery of training across different branches, organizations in the IT industry make use of the same training material.

7.

At the end of all trainings, feedback is sought from participants on the course content, trainer and facilities.

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8. The learning through training is measured for all technical trainings. 9. Feedback from managers is obtained after a certain period of time to measure the behavioral changes or transfer of learning to training. 10. If the training objectives are found to have not met, the cause of the problem is identified and necessary steps are taken to rectify it.

Suggestions1.

Training needs analysis can be performed on a periodic basis so as to address critical training needs at the earliest. This would help the organizations gain an edge over competitors by responding to the environmental changes such as introduction of new technology, at the right time.

2.

Apart from questionnaires, focus group sessions can be conducted by the organizations to measure reactions to training.

3.

To measure the effectiveness of trainings in increasing knowledge and skills, a continuous assessment can be conducted during the training after each session apart from a pre and post training analysis.

4.

Learning through behavioral and soft skills trainings can be measured using psychometric tests and personality tests. A pre and post assessment might give an accurate picture of training effectiveness.

5.

In order to overcome subjectivity in assessing trainees on the job behavior, a 360 degree feedback can be obtained from the participants, supervisors, peers and subordinates.

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6.

To measure training return on investment for behavioral trainings, increased efficiency demonstrated in solving problems and decision making can be considered.

ConclusionIn the current business scenario of cut throat competition, the need of the hour is efficient utilization of resources to achieve optimum results. As human capabilities can be developed by trainings, organizations use human resources as a competitive advantage. By evaluating training effectiveness and ensuring achievement of training objectives, there is no doubt that organizations can emerge successful in their efforts to develop human resources.

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REFERENCES

Reddy,Rathan.B, Effective Human Resource Training and Development Strategy, Edition 2, Mumbai: Himalaya Publishing House, 2005 Lynton, R.P. and Pareek, U. Training for Development, 2 Vistaar Publication, 2002 Training and Development, The ICFAI University, 2006 www.traininganddevelopment.naukrihub.com www.msu.edu www.businessperform.com www.businessballs.com www.cisco.com www.aztecsoft.com www.huawei.com www.hinduonnet.comnd

Edition, New Delhi:

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ANNEXURES

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ANNEXURESSEMI STRUCTURED INTERVIEW QUESTIONS MEASUREMENT OF EFFECTIVENESS OF TRAINING PROGRAMS IN IT INDUSTRY

NAME: DESIGNATION: ORGANIZATION:I. PRE TRAINING PHASE:

1. What is the frequency of assessing employee training needs?2.

How do you assess training needs of employees? (source of TNA)

3. On what basis are the participants of training programs selected?4.

Is there a minimum and maximum ceiling on training programs (man days) an employee should attend? If yes, what are they?

5. Please name the different parameters considered in designing a training program. 6. What are the different kinds of training programs conducted in your organization? 7. Can you name some of the tools used for these training programs? 8. Under what circumstances do you hire external trainers?50

9. In case of generic training, how do you ensure similarity in training design across the different branches of the organization?

II. MEASUREMENT OF REACTIONS:

10. Do

you obtain feedback from participants for all training programs? If no, what are the training programs for which feedback is not sought? 11.How do you collect feedback from participants of training program? 12.What are the general aspects covered in the feedback collected from participants?II. MEASUREMENT OF LEARNING:

13.Which are the trainings for which learning gained through training Programs are measured?14. When

is the learning through training measured?

15.How is the learning gained through training program measured?

III. MEASUREMENT OF BEHAVIOURAL CHANGES:

16.Is the impact of training on the performance of the job measured? a) If yes, how? 17.What are the training programs for which the application or transfer of training on the job is measured?

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V. MEASUREMENT OF RESULTS:

18.Are the organizational benefits gained through training measured? If yes, how? 19.Do you measure the return on investment in training? a) If yes, how? b) If no, is there any scope for measuring return on investment in training?

VI. OVERALL TRAINING EFFECTIVENESS:20. Rate

the different levels of evaluating training programs according to its effectiveness VERY EFFECTIVE EFFECTIVE NOT EFFECTIVE

LEVEL Reaction Learning Behavior Results

21.If the training is found to have not met its objectives, what are the corrective steps taken?

THANK YOU

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ANALYSIS OF DATA

DIMENSIONS Pre training phase

Measurement of reactions Measurement of learning

THEMES Frequency of TNA Sources of TNA Basis of participants selection Mandatory training mandays Training design considerations Types of trainings Training methods/tools Circumstances leading to hiring of external trainers Method of ensuring similarity in generic training

Method of feedback collection Aspects covered in feedback form Trainings for which learning is measured Time of measuring learning through training Method of measuring learning through training Measurement of impact of training on performance

Measurement of behavior

Measurement of results

Trainings for which transfer of training is measured Measurement of organizational benefits through training Measurement of ROI and its scope in53

the future Overall training effectiveness Effectiveness of different levels of Kirkpatricks model Measures taken if training objectives are not met

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