2. 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
3. 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?
4. 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 home
b. the workplace
c. open learning centres
d. meeting rooms
e. dedicated training rooms
f. hotels
g. sport centres and social clubs, and
h. residential training centres
5. 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
6. - 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
7. – 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
8. 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
9. 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
10. 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
11. b. Identify Cost of Budget
Items
• 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
13. 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
14. 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
15. 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
16. – 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
17. 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
18. c. Cost/Benefit - Some Conclusion
Can 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
19. 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
20. • 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
21. • 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