A Study On Measuring Model For Evaluating Return On Investment In Enterprise Training

As an essential human capital investment, training has been rendered important by stockholders, managers as well as the trainees. Early training evaluation theories are mainly qualitative. Now, however, people are not satisfied by only learning about the changes of the trainees' opinions, attitudes and behaviors. Rather, they are more concerned about the financial results of trainings, say, how much value does the expensive training add to the organization and what does the investment bring along?The training effectiveness evaluation embraces two aspects: the evaluation of one specific training program and the evaluation of all the trainings that the organization undertakes as a whole. The former leads to better designs of the training program ,and a more effective employment of the capital input while the latter results in an objective evaluation of the training programs and the balance between the organizations' material capital investments and human capital investments.The key of evaluating a specific training program lies in the evaluation of the return of the program. There are two practical problems in precise evaluation of the outcomes: the first is how to learn about and control the added values that training brings along; the second is how to dispel the influences on the outcome by the other factors other than training. This thesis provides an in-depth research into evaluation of a single training program, which is centered on the previous two questions. Based on an analysis of the profit-generating factors, the thesis put forwards the value chain of training programs and a clear picture of the influences that training exercises on those profit-generating factors as well as a detailed description of the value-adding process of those training programs. Training value chain not only exposes how training creates value for the organization but also serves as the guide of developing training programs for the organizations. The author delves into every link of the value chain, works on the measurement indicators of every link and points out the connections and arrangement of all the links; moreover, the author puts forwards the equation of each program evaluation based on the economical connotation of every single outcome. The profits evaluation based on outcomes, however, usually has within itself the influences of other factors, such as the increase of the labor input by the employees, the technological innovation, the improvement of the facilities, and the changes of the external market environment, which all serve as influences on the accurate evaluation. A scientific evaluation system needs to wipe out the influences of those un-training-related factors. This thesis puts forwards such experimental analysis methods as forward test + backward test and test group + contrast group. Evaluating the return on investment in organizations' training programs as a whole poses more difficulties than the one with a single training program. The enterprise is complicated technological system, whose outputs are the results of the coordinated factors, training being only one among them. Furthermore, the lack of a clear understanding of the technological relationships between all the profit-generating factors give rise to the difficulty of differentiating form all the factors the contributions of training. This thesis starts with an analysis of the factors that contribute to the output and goes on to explore into the influences of material capital investment, human capital investment, motivation and supervision, which explains well the components of outputs.The newly added value of an organization consists of the contributions of the material capital as well as the contributions of the human capital, respectively named the added value of material capital and the added value of the human capital. Researches on human capital investments reveals that as an important method for the organizations to conduct human capital investment, training changes the quantity and quality of the human capital structure, and t...