Ranbaxy is one of India’s largest pharmaceutical companies. Japanese company Daiichi Sankyo gained majority control in 2008. Ranbaxy is an Rs. 4000crore company with a profit of s. 571. 98crore in 2010. Ranbaxy does not have a separate facility for conducting its training programs, but it has a separate department to deal with its training requirements – Global Organization and Training Department. The Kirkpatrick Model is one the most well-known and used model for measuring the effectiveness of training programs. This model analyses the impact of a training program on four progressive levels.
We have analyzed the metrics used by Ranbaxy to measure the impact of training on these four levels. Eg. : Level 1 we have used a feedback form that Ranbaxy uses to check the immediate response of the trainee after training. At level 2 Ranbaxy uses extended training sessions like calling the trainer for help with real time problems after the training is over. At level 3 the behavioral evaluation is tough to be talked about in numbers and hence at Ranbaxy for level 3 evaluation generally the trainees’ behavior is monitored for any changes.
At level 4, come the actual results, Ranbaxy uses various ratios like yield ratios for negotiations and sales, also uses timelines for HR department, sales, SLAs of shared services department. Ranbaxy Laboratories Limited: Ranbaxy is one of India’s largest pharmaceutical companies. Incorporated in 1961, Ranbaxy exports its products to 125 countries with ground operations in 46 and manufacturing facilities in seven countries. The company went public in 1973, and Japanese company Daiichi Sankyo gained majority control in 2008. Ranbaxy is an Rs. 4000crore company with a profit of Rs. 571. 98crore in 2010.
This was after a loss of Rs. 1044. 88crore last year. According to the financial report, the company is growing at a healthy 13% as compared to last year. For the year 2009, the Company recorded Global Sales of US $ 1519 Mn. The Company has a balanced mix of revenues from emerging and developed markets that contribute 54% and 39% respectively. In 2009, North America, the Company’s largest market contributed sales of US $ 397 Mn, followed by Europe garnering US $ 269 Mn and Asia clocking sales of around US $ 441 Mn. Training At Ranbaxy: Since Ranbaxy is in the pharmaceuticals business, training is a part of the fight for survival.
The company needs its employees to be on top of every change in its environment; be it a launch of new drugs by competitors or advent of new manufacturing technology or new methods for research and development etc; and for this they need constant upgradation of skills and knowledge, hence there is a lot of importance placed on training and development. Ranbaxy does not have a separate facility for conducting its training programs, but it has a separate department to deal with its training requirements – Global Organization and Training Department.
Ranbaxy does its training either in-house or if need be they call in experts to conduct programs. The training programs are conducted till the director level. The company’s HR department has adopted a two pronged approach towards training. They start from bottom and at the same time conduct programs for the top management too. The programs for top management are deemed as high risk high return, here the quality has to top end and once there is a buy in from them then there is a automatic buy in from their junior. The bottom tier does not require any customization.
The training needs at Ranbaxy are dealt with at two levels namely. 1. Global Organization Development And Training: This department as the name suggests looks after the training and development needs for the entire organization across the globe. They generally prepare a corporate training calendar, where they plan different programs keeping in mind the present and future organizational needs. These programs are generally attended by Ranbaxy employees from its different business centers across the globe. 2. Corporate Office Level:
The HR department of each corporate office looks after the training needs of the people in that office and ensure that they are met. They work along with the global team, check if they have something planned which the people can be benefited from or the HR team needs to do something on their own for the office only. The Training Pyramid: This pyramid gives us an idea as to how the training is conducted at Ranbaxy. The entire training needs and their respective programs are grouped into 5 tiers. Going bottom up: 1. IT Skills Training:
This is a training program targeted at the middle level and lower administrative staff. The skills included in this are EXCEL, POWERPOINT and sometimes ACCESS. These programs are generally not customized, but they are split into advanced and standard levels (based on proficiency). The program is generally outsourced as in outside experts are called into to conduct the program. A questionnaire is sent to prospective trainees, regarding the skills they possess, based on the answers they are segregated into groups defining the course they need (standard or advanced).
Here the pre training buzz is an important thing. 2. Corporate Training Calendar: This is the second level; this requires coordination with the Global Organizational Development and Training Department. This department develops a corporate training calendar, describing the various training programs that will be conducted through the year. The corporate HR team has already done the training needs analysis for the office knows who needs what training. They talk to the person and his superior check if he/she can be relieved from duty during the time that training program is being conducted.
If yes, then that person is nominated for program and a seat is booked for him on the program. 3. Customized Program: The third level is basically customized around the needs of a department. For instance the shared services center of the company, which has a lot of internal customer interaction, has not undergone customer orientation training in last two years, thus there is an urgent need to conduct such a program for them. So a specific program is designed for them i. e. it’s a customized program for the function. 4. Sponsored Training Programs; This is customization at an individual level.
This could include sending a supervisor to learn how to operate a new machine or sending a middle manager dealing with offshore business to a program which helps him deal with different currencies more efficiently and effectively. The HR comes into the picture here first by recognizing these training needs and then by keeping an eye out for programs being conducted around the globe which may answer these training requirements. 5. Leadership Programs: The highest tier of this pyramid deals with training programs organized for the top management. The training is imparted at Ranbaxy till the director level.
A program is created for specific leadership skills no functional or specialized technical skills are imparted at this level. The programs could be related to how to create leadership impact, communicate for action, behaviors required in a leader etc. This is done through a external expert but conducted in house. The Kirkpatrick Model The most well-known and used model for measuring the effectiveness of training programs was developed by Donald Kirkpatrick in the late 1950s. It has since been adapted and modified by a number of writers; however, the basic structure has well stood the test of time.
The basic structure of Kirkpatrick’s four-level model is shown here. Figure 1 – Kirkpatrick Model for Evaluating Effectiveness of Training Programs Level 4 – Results| | What organizational benefits resulted from the training? | | | | Level 3 – Behavior| | To what extent did participants change their behavior back in the workplace as a result of the training? | | | | Level 2 – Learning| | To what extent did participants improve knowledge and skills and change attitudes as a result of the training? | | | | Level 1 – Reaction| | How did participants react to the program? | An evaluation at each level answers whether a fundamental requirement of the training program was met. It’s not that conducting an evaluation at one level is more important that another. All levels of evaluation are important. In fact, the Kirkpatrick model explains the usefulness of performing training evaluations at each level. Each level provides a diagnostic checkpoint for problems at the succeeding level. So, if participants did not learn (Level 2), participant reactions gathered at Level 1 (Reaction) will reveal the barriers to learning.
Now moving up to the next level, if participants did not use the skills once back in the workplace (Level 3), perhaps they did not learn the required skills in the first place (Level 2). Kirkpatrick’s four levels of training evaluation This grid illustrates the basic Kirkpatrick structure at a glance: level| evaluation type (what is measured)| evaluation description and characteristics| relevance and practicability| 1| Reaction| Reaction evaluation is how the delegates felt about the training or learning experience. | Quick and very easy to obtain. Not expensive to gather or to analyze. 2| Learning| Learning evaluation is the measurement of the increase in knowledge – before and after. | Relatively simple to set up; clear-cut for quantifiable skills. Less easy for complex learning. | 3| Behaviour| Behaviour evaluation is the extent of applied learning back on the job – implementation. | Measurement of behaviour change typically requires cooperation and skill of line-managers. | 4| Results | Results evaluation is the effect on the business or environment by the trainee. | Individually not difficult; unlike whole organization. Process must attribute clear accountabilities. | Level 1
Reaction level questionnaire Reaction level questionnaire seeks to explore the reactions of the trainees to a capacity-building program. For this purpose at Ranbaxy data is gathered through the use of structured reaction questionnaires about how effective the participants believe the program has been in meeting their performance needs and how satisfied they were with the capacity-building event. It is normally undertaken through use of a highly structured self-complete questionnaire. A trainee will typically be asked to choose from a range of options, with one or two general open questions at the end.
Such questionnaires require little skill to design and usually question the extent to which trainee feels that the learning objectives have been met, the relevance of the program to the performance need and the competence of the instructors. In addition they might question the quality and usefulness of training and development materials, the effectiveness of the capacity building methods and the training and development. The reaction level evaluation is normally conducted at the end of a program however sometimes it may be conducted at various levels throughout the program.
The questions that are usually asked here include:- * How useful/relevant is the content to your job? * How was the balance between presentation, exercises, and discussion? * How clear and helpful were the training and development materials? * How competent was the instructor in the subject matter and how well did he/she facilitate participants’ learning? Feedback Questionnaire What is your reaction to this program? We would like to know. Your thoughts will help us provide the best possible modules. Your overall evaluation of the program: •Stimulating 4321 Boring •Useful for my work4321 Useless Good Discussions4321 Limited •Well conducted4321 Poorly conducted •Challenging4321 Patronized •Participative4321 No Participation •Learning for yourself4321No Learning Overall evaluation of the trainer: Very effective Good Not very effective Not effective •Knowledge 4 3 2 1 •Preparation 4 3 2 1 •Style & delivery 4 3 2 1 •Responsiveness to group 4 3 2 1 •Encouraged participation 4 3 2 1 Learning Climate 4 3 2 1 What is your learning from the program? Any changes would you like to implement in your working? •Short term: •Long term: Overall evaluation of the Venue: •Stay Arrangements Good4321Not good •Facilities Good4321Not good •Food Good4321Not good •Training accommodation Good4321Not good Suggestions for such Development Programs in future: Level 2 Learning Level This learning level of training evaluation measures the following metrics: 1. Amount of knowledge acquired during training program 2.
Improved level of skills and professionalism Various tools used for this kind of evaluation are exams, self-assessment, facilitator assessment, active testing including simulations, case studies, skill practices, and team assessments. It also helps in assessing the level and degree of participants acquired intended knowledge, skills, attitudes, confidence and commitment based on their individual participation in a training program. At this level of training, learning happens in the form of increased capability. Methods used at Ranbaxy for second level learning are: * Pre and post test results On-the-job assessment * Supervisor reports Pre and post results As illustrated by the General Manager HR, Ranbaxy, if the training has to start for improving IT skills i. e. MS-Excel and MS-Power point, employees are sent an announcement regarding the training program on IT Skills with tentative dates. Then employees are asked to send nominations for the same. Once the names of trainees are confirmed, training process does not start immediately. Next step is to send an attractive, simple to fill and easy questionnaire to get a rough idea of trainees IT skills level.
According to responses, trainees are segregated into various groups and training program is commenced thereafter. Once the training gets over, trainees are asked to fill a bit complex or same questionnaire which they were earlier unable to answer properly. Now the comparative results of pre-training and post-training are sent to employees to tell them the worth and value of such training. As said by the HR manager, “You need to market and sell your training to right people in right sense”. Initially a lot of effort needs to be put in to start such a program but for next time word-of-mouth works effectively.
On-the-job assessment Once the training program gets over for level two evaluation, employees being trained are kept under constant supervision and are evaluated frequently. When some trainee is being sponsored by Ranbaxy to some external training program, he is required to perform and show his learning in his work. E. g. a trainee sponsored for external training for FOREX transactions, is kept under a constant watch and is evaluated on the basis of what all he has acquired during the training by his peers and supervisor too. Sometimes the person may be asked to train his department employees for the same.
Supervisor reports During the appraisal session at Ranbaxy, Supervisors at each level are required to send evaluation figures and reports for their subordinates. This makes a lot of sense to the trainee as to consider the training in a serious way and hence show his learning through his works. Parameters on which the trainees are generally assessed are: * Did the trainees learn what intended to be taught? * Did the trainee experience what was intended for them to experience? * What is the extent of advancement or change in the trainees after the training, in the direction or area that was intended?
Typically assessments are done using the first approach of tests before and after the training. Interview or observations are also used before and after although this is time-consuming and sometimes becomes inconsistent too. Methods of assessment need to be closely related to the aims of the learning. Reliable, clear scoring and measurements need to be established, so as to limit the risk of inconsistent assessment. Various new assessment styles being used at Ranbaxy are: * Hard-copy * Electronic media * Online * Interview style assessments
Level two of evaluation is quite relevant and clear-cut for training as it is easily quantifiable and can be assessed on technical skills in a simple manner. But it is quite tough to use this level for complex trainings like attitudinal development. Special focus should be on system and process design as poorly designed systems lead to increase in work required to measure and analyze. Level 3 Behavior Level This kind of evaluation criteria focus on your learning during training to bring it into practice, are you able to use it in your work-life?
Are the skills and knowledge you acquired helping you or relevant to your work? Are trainees able to bring the learning into effect? At Ranbaxy they try to evaluate behavior of the trainees learning which cause change in the behavior of the employee, and it is very difficult to evaluate change in behavior and if it is soft skill it is even more difficult to evaluate. Unlike the reaction and learning evaluation it is difficult challenge, as it is very hard to quantify such kind of training evaluation.
Ranbaxy does level 3 evaluations by continuously observing the change in trainees’ behavior and whether they are able to apply the learning’s that they have acquired in the training. This evaluation event goes on till six months from training completion. They always believe that change in behavior requires time and it cannot be observed in one or two days. Among various training there is a “leadership training” which is generally for senior level or middle level managers. The evaluation of this kind of training is very difficult.
Still they try to evaluate by comparing their performances before and after six months of training. If the results are found satisfactory then they consider that an effective training has been completed successfully but as said by the HR manager, “It is very difficult to segregate and evaluate such kind of trainees and thus very tough to get the budget approval for the same from top management. ” The assessment requires a great amount of efforts as evaluator’s main focus is to reduce the subjectivity of the evaluation parameters which would lead to ambiguous results and will disrupt the whole process.
In such kind of training evaluation, support from various other departments is necessary and in this case Ranbaxy people feel themselves lucky to get full support from employees at all levels. The assessment can also be done via interviewing the training after six months of training but again here also the interviewer has to keep in mind that question must be quantifiable to get the best possible results. Ranbaxy uses 360 degree feedback which is one of the most useful tools for evaluation because peer ratings as well as subordinates ratings help a lot to HR manager to evaluate the effects of behavioral training.
Even the organization believes in self evaluation of trainees. In case, the trainee believes he needs further assistance to imbibe the learning into practices, the training process can be extended to fulfill the requirements. Although it is the most critical part of evaluation process but it is a very important too. It is useless even if the training provided has good reaction from trainees and even they had learnt from the training but are unable to bring required changes in their work life.
The main aspect of imbibing learning into practice is support from senior; peer as well as subordinates and at Ranbaxy the organization culture is such that they are able to apply their learning into practices in an effective manner. Level 4—Results Here the organization’s goal is to find out if the training program led to final results, especially business results that contribute to the “bottom line” (i. e. , business profits). Level four outcomes can include major results that contribute to the improved functioning of an organization. Level four includes any outcome that most people would agree is “good for the business. Level four outcomes are either changes in financial outcomes (such as positive ROI or increased profits) or changes in variables that should have a relatively direct effect on financial outcomes at some point in the future. Here are some aspects that Ranbaxy looks at: * Improved quality of work. * Higher productivity. * Reduction in turnover. * Reduction in wasted resources. * Improved quality of work life. * Improved human relations (e. g. , improved vertical and horizontal communication) * Increased sales. * Fewer quality complaints. * Lower absenteeism. * Higher worker morale. Fewer failures in R&D. * Greater job satisfaction. * Increased profits. Here Ranbaxy strictly follows what are Kirkpatrick’s recommendations for level four evaluation: 1. Use a control group if practical. In other words, use the strongest experimental design that is feasible. 2. Allow time for results to be achieved. In other words, many level four outcomes will take some time to occur. 3. Measure both before and after the program if practical. Again, use the strongest experimental design that is feasible. 4. Repeat the measurement at appropriate times. Repeated measurement (e. g. using the time-series design) can provide data on the long term pattern of results. 5. Consider costs versus benefits. You may not want to perform a level four evaluation if the costs of that evaluation are high in comparison to the potential benefits or impacts of the training program. According to our information from the person we spoke to, level four evaluation is difficult in the sense that it is quite difficult to establish firm evidence that a training program was the key or only source that produced the level four outcomes. For example, time has to elapse after the training program in order for these outcomes to occur.
Other factors may also occur during that time period. Second, it is hard to isolate the effect of the training program because there are usually many additional causal variables operating on the level four outcome variables (i. e. , the training event is just one of many potential causes). Level four outcomes are often more distal outcomes, rather than proximal outcomes of a training program. For these reasons, the evidence obtained from level four evaluation is usually weaker than the evidence obtained from lower level evaluations, especially levels one and two which are relatively easy to document.
For an example of distal, level four outcomes (increased productivity and profits) here is a potential outcome line that ends with the level four results: Program Reactions Learning Behavior Productivity Increased profits. Level four outcomes tend to fall far down outcome lines, which mean that many intervening factors must take place in order for the level four outcomes to take place. This means that we should not be overly optimistic in expecting large level four outcomes from single training programs.
A common design used in Ranbaxy for documenting level four outcomes is the interrupted time-series design, although the other experimental designs with control groups are also frequently called for, depending on the kinds of outcomes to be measured. For example, some data are frequently recorded at regular intervals (sales, turnover, R&D failures), making these variables easy to measure over time forming time-series data (you just have to get these secondary data). Other level four results will be more difficult to obtain because pre-training data may not be available (e. g. data on worker morale, quality of work life, improved communication). If pre-training data are not routinely recorded, we make sure the data are recorded at least once before the training event is implemented. What Ranbaxy is working on? As told by the contact person: “In general, we are trying to develop an impact theory to help us to understand the operation of level four outcomes. If you really want training program to have a positive level four outcome, it is probably wise to make the training program a component of a larger organizational performance program package that is designed to produce level four changes.
References: 1. http://en. wikipedia. org/wiki/Ranbaxy 2. http://www. ranbaxy. com/ 3. http://en. wikipedia. org/wiki/Training_and_development 4. http://en. wikipedia. org/wiki/Evaluation 5. http://en. wikipedia. org/wiki/Donald_Kirkpatrick 6. http://www. businessperform. com/workplace-training/evaluating_training_effectiven. html ——————————————– [ 1 ]. http://www. businessperform. com/workplace-training/evaluating_training_effectiven. html