A development appraisal from the management viewpoint of the use of cost-benefit analysis in in-company training situations

Abstract

The thesis takes the economist's concept of cost-benefit analysis and subjects it to a ‘developmental appraisal', from the management viewpoint and in respect of ‘in-company training'. In so doing it seeks to explore the contribution that the broad concept, when applied to training evaluation, can make to management decision making. The thesis concludes from an appraisal of the cost-benefit concept that differences when it is applied to in-company training compared with the economists traditional 'macro' usage, merit a different label, 'investment appraisal' of training. The place of the concept in training evaluation is then explored and in use it is shown to be subject to a great many constraints. The thesis proposes that these constraints be translated as opportunities within a 'new' framework which seeks to consider training evaluation from the management viewpoint. This framework proposes a twin role for evaluation: the conventional one of feedback to the trainer and organisation; and an additional one of identification of the key 'supportive' systems needed to meet the objectives of a particular programme. To test these roles a dichotomy is proposed between Programmed and non-Programmed training decisions, within which a classification of types of training is suggested. The investment appraisal concept is then applied to evaluations within each of these decision categories. The non-Programmed decision evaluation is conducted in an operative training situation in a rolling mill in the steel industry; the Programmed Decision evaluation is applied to a junior operative training programme in several steel companies. The thesis concludes from the results of the experiments that a useful methodology has been devised and that the major contribution of the application of the concept in practice is the opportunity it gives both for the identification of line management contribution to the success of training and obtaining of their involvement.