KMS2014: Design & Management of Training Programs

Unit 9:

Training Management

Objectives:

At the end of this unit, you will be able to:• Identify the various type of learning environment where

training program can be conducted• Identify the location where the training program will be

conducted• Carry out a site survey to make sure the training location is

suitable to your needs• Source equipments that are needed to run the training

program• Compare the costs, suitability and availability of a training

location• Identify budget items and the cost of those items• Revise the training budget

Introduction

The next decisions on T&D that you have to make are: Where to run the program? What is the best learning situation? Where you are going to obtain the

equipment and materials? What will be the budget like?

Determine the Type of Learning Environment Factors that affect your choice of learning

environment: Costs The facilities you need - off-site or on-site Type of instruction Whether students need to be separated

1. The choices of learning environment can cover:a. the homeb. the workplacec. open learning centresd. meeting roomse. dedicated training roomsf. hotelsg. sport centres and social clubs, andh. residential training centres

2. Identify Potential Location To identify a number of potential training locations

May already have a number in mind Look at the telephone directory or yellow pages May already have your own training centres Ask some colleagues or friends

3. Carry Out Site Survey To make sure the training location is suitable To know the place well

Talk to the people in charge and explore the buildings Use the checklist:

– Location– Parking

- Reception- Contact- Delivery arrangement- Staff- Access to training room- Size and shape of training room

• Size: allow 80 cm of desk space per person• Shape: an ideal shape for a training room is a

square • Distance: try to limit the distance between the

screen or flip chart and the student

- Heating and ventilation

– Lighting– Power sockets

Have a maximum of four power sockets available at the front of the room

– Light switches– Acoustics– Toilets– Food– Meal and break arrangements– Bedrooms– Leisure facilities– Security

4. Source Equipment Hand over a precise specification of your

requirements Training on your own premises - buying the

equipment Expensive equipments - more economical to hire

5. Compare Costs, Suitability, & Availability Results of the site survey will allow you to compare

the suitability of the alternative training venues Understand what the rate includes The golden rule is to ask for a written summary of

what is included in the price

6. Preparation of Budget “How much will the training cost?” Difficult in decide what should be included in the costs The golden rule is to be consistent and make your

assumptions clear One of the many ways of preparing a budget:

– Identify budget items– Identify cost of budget items– Negotiate and revise budget

a. Identify Budget Items

Various items that can be included in a training budget: Cost of external courses; Purchase and hire of equipment, books, and videos; Production of training materials; Training staff wages/salaries; Training staff overheads; Hire of training venues; Trainee accommodation costs; Student travel costs, and; Trainers wages/salaries/overheads

The rule of thumb is to include everything that will be charged to the training department’s budget during the financial year

How much does a trainer cost? Cost of the wages - plus other costs and

overheads Here is an example of the cost of items:

Name of Program: Quality Training

Type of training Non-residential

Duration (days) 3

Number of trainee 12

Number of trainer 1

Type of trainer own

Location off-site

b. Identify Cost of Budget Items

• Additional rooms 1• Trainer cost/day RM300• Materials/trainee RM40• Seminar room hire RM50• Accommodation/trainee RM49• Equipment hire/day RM50

____________________________________• Total Cost RM3591• Cost/Trainee RM299• Cost/Trainee/Day RM100

c. Negotiate and Revise Budget

The figure is always larger than your allocated budget

Need to negotiate for a larger budget The use of “benchmarking” Benchmarking is a process by which you

compare yourself with the best competitors with the aim of exceeding or surpassing their performance in all aspects

The most common difference in a training budget is the inclusion or exclusion of trainees’ wages

As a rule of thumb, inclusion of wages doubles the cost of training

7. Cost-Benefit Analysis No easy formula to determine cost Must have a thorough understanding of:

Everything that is going on in training The cost and financial elements

The main rule - must understand the physical and organizational processes and activities

a. Costs There are 3 major category of costs for training:

– Establishment costs– Marginal expenditure– Interference costs

1. Establishment Costs Costs of training organization within the company

Comprises the following elements:– Salaries, insurance, etc – Cost of the space occupied and services used– Support costs allocated to the training function

2. Marginal Expenditure Additional money which has to be spent The more typical instances are:

– External course fees– Outside lecturers’ fees and expenses

– Books, materials, equipment hire– External accommodation costs– Personal expenditure

3. Interference Costs Refers to when a person gives time and effort to

training, and thus ceases to be occupied in his/her main task - there is interference with the output with which he is primarily concerned

Interference cost is not that person’s wage or salary over the time of involvement in training

b. Benefits• Benefits from training are varied, which may

include: - Improvement in performance

- Machine runs efficiently

- Saving in maintenance cost

- Reduction in labour wastage

- Sales increase- System development

• Benefits from training is not easily measured

c. Cost/Benefit - Some ConclusionCan conclude with a few points:

1. Estimates versus actual Taking estimate more seriously than the

measurement of actual cost and actual benefit

2. Short, medium and long term benefits Benefits has to be measured not only in the

short term, but also medium and long term Problem - When exactly should measurement be

done? Short, medium and long - Be sufficiently well

defined

3. The hidden benefit Learning experience produces some interest

and personal satisfaction Training also helps the person to grow and

develop in knowledge and outlook - better equipped

Personal growth and development is more difficult to analyse and evaluate

4. Approximation methods Do an approximation of benefits through

guessing when difficulties of setting up the correct model

Possible to guess at the order of savings and benefits and at the probability of these occurring

5. The cost and benefit of the training function

Training costs should be considered in light of:– The total value of processes and products– The total value of plant, equipment, etc.– The extent to which the efficient management and

handling of the above (1 & 2) depends on human skill, knowledge and motivation

Value of 1 & 2 above would mean that a higher training cost may be justifiable

Assessment of benefits contains training’s contribution to the financial well-being of the company

Also include the achievements in human development and in raising the quality of industrial life