Case Study 2
Embry Riddle Aeronautical University
An HRD evaluation is a collection of data that allows a judgement to be made on a training program. This evaluation provides the necessary information for selection, adoption, value and modification of instructional activities “Werner, 2012, p.226). In this case a large manufacturing plant is determining whether it is worth implementing a training program to train employees and cross-training to team members so that employees could conduct multiple tasks in their teams. In this case study we focus on the cost-effectiveness analysis and the return on investment (ROI) to determine if the financial results are worth it. In this study, the focus group is 30 trained members and 30 untrained members. At $2,000 per ...view middle of the document...
The change in utility is being used as the results of implementing the training. Using the ROI formula we determined that the ROI is 2.5 or 250%. Given this percent, I would say that the organizations projected ROI is worth implementing the training.
Example 2Return on Investment = Results/Training Cost = $150,000/$60,000 = 2.5 or 250% |
In Example 3 we look at the average productivity from a daily, weekly and annual perspective for the number of units the trained and untrained employees are able to complete per day. As the chart below demonstrates, the difference in production between the trained and untrained members is an average of 3.5 units per member per day, this equates to a total of 780 units produced by the trained members and 675 units produce by the untrained. At the end of the year this number changes from 202,800 units produced by the trained and 175,500 units produced by the untrained. Together on an annual basis the 60 members are able to produce 378,300 units, with 53% of this total being accounted for by the trained. If all 60 members are trained the production average would rise to 405,600 units, increasing the annual total by 7%.
Employees Productivity Average | Per Day | Weekly (40hr) | Annual (52 Wks) |
30 Trained Members (26 units per person) | 780 | 3,900 | 202,800 |
30 Untrained Members (22.5 units per person) | 675 | 3,375 | 175,500 |
DIFFERENCE 3.5 units per person, per day | 105 | 525 | 27,300 |
*Difference – Annual difference in number of units per day for trained and untrained members 27,300
Werner, J. & DeSimone, R. (2012). Human resource development (6th ed.). Mason, OH: Cengage Learning.