A systems approach to measuring return on investment for HRD interventions

Abstract

Return on investment (ROI) in human resource development (HRD) has been a hot issue pursued by many HRD researchers, practitioners, and organizations during the past decade (Phillips, 1997b). Current approaches to ROI measurement in HRD are rooted in and center around an accounting model developed by the DuPont company in 1919 for decentralized financial control (Koontz, O'Donnell, and Weihrich, 1984;Nikbakht and Groppelli, 1990). HRD intervention is a process much more complex than accounting because the former involves dynamic human behaviors. Benefits derived from HRD intervention often tangle with the impact of other organizational variables. HUMAN RESOURCE DEVELOPMENT QUARTERLY, vol. 13, no. 2, Summer 2002 Copyright © 2002 Note: The authors are grateful to seven anonymous reviewers for their many constructive comments and suggestions on earlier versions of this article. We also wish to thank the twelve hundred members of ROInet, an Internet forum dedicated to this subject, especially Dean Spitzer, Fred Nickols, Phillip Rutherford, Terje Tonsberg, and Matt Barney, for their many thought-provoking online discussions over the past two years.

An Empirical Analysis of the Relationship between Characteristics and Formative Evaluation of Training

“…In this respect, findings of this study provide evidence of partial mediation in case of all TC supporting the previous studies (e.g. Wang et al, 2002;Leskiw and Singh, 2007;Tian et al, 2007).…”

“…Hence, reaction partially mediates the relationships between each TC and Learning. These results partially substantiate the predicted intervention of reaction in relationships between TC and Learning that further supports Wang et al (2002), who maintain that levels of Kirkpatrick model are causally linked.…”

“…In addition, consistent with previous literature (e.g. Wang et al, 2002), it also analyzes the intervening role of reaction in the relationship between TC and learning. Following are the research hypotheses:…”

“…This is because, for better understanding of the benefits of training programs, a systematic evaluation at all levels of Kirkpatrick's model is needed (Oostrom and van Mierlo, 2008). Velada and Caetano (2007) maintain that formative TE is an antecedent of summative TE (especially transfer) because all four levels of Kirkpatrick model are causally linked (Wang et al, 2002). This is because each prior level serves as a basis for the next one, and each successive level increases the rigor and thoroughness of the evaluation (Leskiw and Singh, 2007;Tian et al, 2007).…”

HRM-performance research: under-theorized and lacking explanatory power

“…Incidentally, we use "meta-theory" as a portmanteau term to include philosophy of science, methodology, ontology, epistemology and causality. Wang, Dou, Ning, 2002;and Wright, Gardner & Moynihan 2003. 4 See also Becker & Gerhart, 1996;Guest, 1997Guest, , 2001Guest, Michie, Conway, Dewe 2004;Laursen 2002;Wright, Gardner & Moynihan 2003;Toulson & Dewe 2004.…”