Chapter 6, Problem 5AA BookmarkShow all steps: ON Problem Cablevision developed

Question

Chapter 6, Problem 5AA BookmarkShow all steps: ON Problem Cablevision developed an e-learning course that taught salespersons how to increase the number of cable television subscribers, thereby increasing revenue. The company wants to know if salespersons will increase upselling of cable television services (e.g., premium channels) and will try to sell other products (e.g, e-mail and web access). The company also wants to know the ROl of this training program. a. What training outcomes should the company collect? From whom should the outcomes be collected? b. What evaluation design would you recommend? Defend your recommendation c. Show how Cablevision can conduct an ROI analysis. Describe the information that the company should collect and how it should be collected. Emplo Trainin 7th Editic View all: Step-by-step solution sab

Explanation / Answer

1a. Training outcome is good if the training objective is met satisfactorily. The training outcomes to be collected by company:

The pre and post test can be collected from the e-learning portal. The sales figures can be taken from the marketing department.

b. Kirkpatrick model for training evaluation must be used as it gives a holistic data view, measuring the training impact. There are 4 levels of training evaluation:

c. The ROI of training can be analyzed on the following criteria:

2.a.   Training cost per employee= 35*80= $2800

       Total training cost= Training cost of total employees + other costs

                                    = (2800*100)+170000=$450000

Therefore average training cost per employee=$4500

Given average turnover rate=23%

So, in 100 employees, employees who leave=23

The cost of hiring 23 employees=23*56625=$1302375

This is equal to total cost of turnover

b. New turnover rate post training=15%

Total turnover cost post training=15*56625=$849375

Therefore, financial benefit of training program= 1302375-849375=$453000

c. ROI of training= (Total saving-Total expenditure)/expenditure= 453000-450000=$3000/450000=0.6%

d. ROI of training should become>=1 so that the training program can show a benefit.

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