Question 1

You are given the following five pieces of information about a training program: training will have an impact on performance for two years; 10 employees will be trained; the effect size of the program is 2; the standard deviation of untrained employees in dollars is 100; and it costs $50 to train one employee.What is the dollar value of this training program

Accepted Answer

The first piece of information tells us that the impact of the training will last for two years. Therefore, we need to calculate the present value of the impact of the training over the two-year period.

The effect size of the program is given as 2, which means that the trained employees will perform two standard deviations better than the untrained employees. Since the standard deviation of untrained employees is given as $100, the impact of the training on the employees' performance will be $200 (2 x $100).

Next, we need to calculate the total impact of the training program. Since 10 employees will be trained, the total impact will be $2,000 ($200 x 10).

The cost of training one employee is given as $50, so the total cost of training 10 employees will be $500 ($50 x 10).

Therefore, the net value of the training program will be $1,500 ($2,000 - $500).

Option C is therefore the correct answer.

Question 2

After doing an evaluation of a training program,you determined the effect size of the training program was 50% less than expected.Assuming all other utility variables remain constant,what conclusion can you draw from this decrease in effect size

Accepted Answer

A decrease in effect size implies a decrease in utility, as the training program is not producing the intended results. The other options (increase in utility, no impact on utility, program cost increased) are not necessarily affected by a decrease in effect size.

Question 3

a)Briefly describe five things that can be done to increase the credibility of estimating the benefits of a training program.
b)Why have cost-effectiveness calculations been described as "part art and part science"

Accepted Answer

The answer of a)Briefly describe five things that can be...

Question 4

How is the utility of a training program defined

Accepted Answer

The answer of How is the utility of a training...

Question 5

If break-even occurs with an effect size of 2,what conclusion can you make about utility if the effect size changes to 2.5 (assume all other utility variables remain constant)

Accepted Answer

An effect size of 2 at break-even implies that the utility gained from the intervention is equal to the cost incurred to implement it. If the effect size increases to 2.5 while all other utility variables remain constant, this means that the intervention is now producing greater utility than before, resulting in an increase in overall utility. Therefore, the answer is A) utility will increase.

Question 6

You are given the following four pieces of information about a training program: training will have an impact on performance for two years; 10 employees will be trained; the standard deviation of untrained employees in dollars is 100; and it costs $50 to train one employee.What must be the effect size so as to allow the program to break even

Accepted Answer

To break even on the cost of training, the increase in performance due to training must cover the cost of training over a two-year period. Using the formula for effect size, which is (mean difference between trained and untrained groups) divided by (standard deviation of untrained group), we have:

Effect size = (Cost of training per employee) / (Standard deviation of untrained group)
Effect size = 50 / 100
Effect size = .5

This effect size represents the mean difference between the trained and untrained groups in terms of performance. To determine if this effect size is sufficient for the program to break even, we need to calculate the increase in performance for the trained group.

Increase in performance = (Effect size) x (Standard deviation of untrained group)
Increase in performance = .25 x 100
Increase in performance = 25

Since the program is training 10 employees, the total increase in performance over two years would be:

Total increase in performance = (Increase in performance per employee) x (Number of employees trained) x (Duration of impact of training)
Total increase in performance = 25 x 10 x 2
Total increase in performance = 500

If this increase in performance translates into a monetary benefit for the company that is greater than or equal to the cost of training 10 employees ($500), then the program will break even. Therefore, the required effect size is .25.

Question 7

Which of the following statements is NOT one of the steps needed to convert benefits to monetary values for the purpose of calculating the return on investment

Accepted Answer

The correct steps for converting benefits to monetary values typically include focusing on a single unit, determining a value for each unit, and determining the change in performance post-training. Multiplying an annual amount by the effect size is not a standard step in this process; instead, the focus is on quantifying benefits in monetary terms directly related to the improvement measures.

Question 8

An appropriate approach to costing a training program is to group costs according to the nature or kind of cost.Using one of the approaches described in the textbook,identify potential groupings of costs and provide at least two examples of cost that would naturally fit into each of the groups or categories.

Accepted Answer

The answer of An appropriate approach to costing a training...

Question 9

Explain the differences between cost-effectiveness evaluation and cost-benefit evaluation.

Accepted Answer

The answer of Explain the differences between cost-effectiveness evaluation and...

Question 10

What is the concept that fundamentally attempts to attach a dollar value to the effectiveness of a training initiative

Accepted Answer

Utility analysis is the concept that fundamentally attempts to attach a dollar value to the effectiveness of a training initiative by examining factors such as job performance, productivity, and employee retention. Cost-benefit analysis and benefit-cost analysis are related concepts but focus more broadly on weighing the costs and benefits of a project or investment. Break-even analysis is a financial tool used to determine the point at which revenue equals expenses.

Question 11

a)Briefly describe at least three reasons why many managers avoid the costing process when it comes to training.
b)What might senior management do to "encourage" training programs to include costing and some element of quantifiable benefits associated with specific training programs

Accepted Answer

The answer of a)Briefly describe at least three reasons why...

Question 12

When calculating utility,what is the concept that measures the true difference in performance between average trained and untrained employees in standard deviation units

Accepted Answer

The concept that measures the true difference in performance between average trained and untrained employees in standard deviation units is known as the effect size. It is a statistical measure that helps to determine the practical significance of a training program by comparing the performance of trained and untrained employees in terms of standard deviation units. The effect size is a more accurate and reliable measure than simply comparing means or percentages. Therefore, option C is the best choice.

Question 13

Define the term "return on investment" and explain how ROI on training is calculated.

Accepted Answer

The answer of Define the term "return on investment" and...

Question 14

What does it mean when the utility factor for a training program is zero

Accepted Answer

The answer of What does it mean when the utility...

Question 15

The textbook offers a few strategies to strengthen credibility of data.Which of the following strategies was NOT discussed in the textbook

Accepted Answer

The strategy of "do not adjust the data if the estimates appear too optimistic" was not discussed in the textbook.

Quiz 12: The Costs and Benefits of Training Programs

After doing an evaluation of a training program,you determined the effect size of the training program was 50% less than expected.Assuming all other utility variables remain constant,what conclusion can you draw from this decrease in effect size

a)Briefly describe five things that can be done to increase the credibility of estimating the benefits of a training program. b)Why have cost-effectiveness calculations been described as "part art and part science"