AN INVESTIGATION OF THE EFFECT AND ECONOMIC UTILITY OF CORPORATE-WIDE TRAINING

This study describes a 4 year effort to investigate the effect and utility of managerial and sales/technical training. The effort relied upon quasi-experimental designs to investigate the effect of training programs, meta-analysis to summarize the effect of different types of training, and utility analysis to estimate the economic impact of training. The utilized multi-attribute utility analysis model, based on Raju, Burke, and Normand's 1990 (RBN) model, was modified and approved by the senior management of a Fortune 500 pharmaceutical company; it included a measure of criterion deficiency and corrected for differences due to alternative methods of calculating effect sizes (e.g., repeated measures ANOVA vs. ANCOVA). Results of 18 training program evaluations (range of N = 10 to 216), which were conducted in one company on the basis of supervisor, subordinate, or peer ratings, are reported. Great variation existed between the effectiveness of the programs (range of d = -.09 to 1.11), and managerial training was found to have less effect (d = .31) and utility (mean ROI = 45%) than sales/technical training (d = .64, mean ROI = 418%). In addition, the use of a 2-point performance scale in application of the RBN utility model as well as the role of management pre-approval of utility analysis are investigated.