Article1997

AN INVESTIGATION OF THE EFFECT AND ECONOMIC UTILITY OF CORPORATE‐WIDE TRAINING

Charley C. Morrow · M. QUINTIN JARRETT · Melvin T. Rupinski

140 citations0/0 files storedPersonnel Psychology

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Human Resource Development and Performance Evaluation Evaluation and Performance Assessment Competency Development and Evaluation

Abstract

This study describes a 4 year effort to investigate the effect and utility of managerial and sales/technical training. The effort relied upon quasi‐experimental designs to investigate the effect of training programs, meta‐analysis to summarize the effect of different types of training, and utility analysis to estimate the economic impact of training. The utilized multi‐attribute utility analysis model, based on Raju, Burke, and Normand's 1990 (RBN) model, was modified and approved by the senior management of a Fortune 500 pharmaceutical company; it included a measure of criterion deficiency and corrected for differences due to alternative methods of calculating effect sizes (e.g., repeated measures ANOVA vs. ANCOVA). Results of 18 training program evaluations (range of N= 10 to 216), which were conducted in one company on the basis of supervisor, subordinate, or peer ratings, are reported. Great variation existed between the effectiveness of the programs (range of d= ‐.09 to 1.11), and managerial training was found to have less effect (d= .31) and utility (mean ROI= 45%) than sales/technical training (d= .64, mean ROI= 418%). In addition, the use of a 2‐point performance scale in application of the RBN utility model as well as the role of management pre‐approval of utility analysis are investigated.

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References

1988TRANSFER OF TRAINING: A REVIEW AND DIRECTIONS FOR FUTURE RESEARCH 19779: Integrating Findings: The Meta-Analysis of Research 1989KIRKPATRICK'S LEVELS OF TRAINING CRITERIA: THIRTY YEARS LATER 1986A cumulative study of the effectiveness of managerial training.1995Age discrimination in simulated employment contexts: An integrative analysis.1982ASSESSING THE ECONOMIC IMPACT OF PERSONNEL PROGRAMS ON WORKFORCE PRODUCTIVITY 1993BEYOND FORMAL EXPERIMENTAL DESIGN: TOWARDS AN EXPANDED VIEW OF THE TRAINING EVALUATION PROCESS 1994THE FUTILITY OF UTILITY ANALYSIS

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