Validating The Effectiveness Of The Training In Practice



Oxford Business & Economics Conference

June 24-26, 2007,Oxford University, UK

Validating the effectiveness of the training in practice

Authors:

Anna Czarczynska, PhD

Affiliations: Leon Koźmiński Academy of Entrepreneurship and Management, Poland

Witold Rychlowski

Affiliations: SBS Exp Sp. z o.o., Poland

ABSTRACT

Nowadays, in the Information Age, Knowledge Capital is not only one of the crucial assets of the organization but also an important field of investment. The Knowledge Capital is being continuously increased by both modern e-learning and traditional training. Although e-learning seemed to be a sort of panaceum to the modern education model problems still the real efficiency of traditional training due to its’ results characteristics proves to be highly valuable.

It is widely believed that this sort of investment brings huge returns. There is even at least a couple of known methods on calculating the prospect return on investment in Knowledge Capital.

However, the possibility is there, the methodology of estimating possible return on investment (ROI) in case of professional trainings with the positive outcome of such a calculation do not create an important factor while deciding upon taking a specified training.

Our research proves that although the ROI calculating process is well known its’ implementation seems to be very limited.

Basing our research on current business and academic trainings we will deliver the detailed score of the ROI in Human Capital key factors.

Having obtained the aim of our research we will deliver the hard evidence of the ROI methodology and Intellectual Capital Efficiency index (ICE) application in decision making process in regard of continuous investment in Knowledge Capital.

We believe that this research result will encourage HC Managers to use this model in planning future investments in trainings.

Key words: ROI, training, ICE, Intellectual Capital,

Literature

Barrett, A. and O'Connell, P.J. (April 2001). Does Training Generally Work? The Returns to In-Company Training. Industrial and Labor Relations Review, 54(3). pp. 647-662.

Bartel, A.P. (July 2000). Measuring the Employer's Return on Investments in Training: Evidence from the Literature. Industrial Relations, 39(3). pp. 502-524.

Bassi, L.J. and Van Buren, M.E. (1999). Valuing investments in intellectual capital. International Journal of Technology Management, 18(5/6/7/8). pp. 414-432.

Bassi, L.J.; Gallagher, A.L. and Schroer, E. (1996). The ASTD Training Data Book. American Society for Training and Development. Alexandria, VA.

Edvinsson, L. and Malone, M.S. (1997). Intellectual Capital: Realizing Your Company's True Value by Finding its Hidden Brainpower. Harper Business. New York, NY.

Fitz-enz, J (2000), The ROI of Human Capital, Amacom, New York, NY., .

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