Executive Summary A Study on Return on Investment of ... - Vikalpa

In some situations, programme participants are capable
of estimating the value of a soft data improvement. This
method seems appropriate when participants are capable
of providing estimates of the cost (or value) of the
unit of measure improved by applying the skills learned
in the programme. The advantage of this approach is
that the individuals closest to the improvements are also
often the ones most capable of providing the most reliable
estimates of its values.
Estimating Programme Costs
Most of the data relating to programme costs was available
from the Project Completion Reports of the programmes.
The only additional cost which has been
included is the cost of participants’ time which had not
been previously taken into account. This element has
been considered while trying to estimate programme
costs because this represents the time that the participants
have spent attending the programme which they
would have otherwise spent at the workplace. The CTC
(cost to company) of the participants represent an expense
that should be included. For situations where the
programme has been conducted, these costs can be estimated
using average or midpoint values for salaries in
typical job classifications (Tables 1 and 2).
Table 1: Costs Considered in the Threshold Programme at IOC
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Notes on Cost Evaluation
1) The cost of conducting needs assessment has been
excluded from the costs. This might include time of
staff members conducting the needs assessment, direct
fees and expenses for external consultants who
conduct the needs assessment and internal services
and supplies used in the analysis.
2) A final charge is the cost of overhead, the additional
costs in the training function not directly related to
any particular programme. Typical items might include
the cost of clerical support, the departmental
No. Cost Element Amount Consolidated Amount
(Rupee Value) (Rupee Value)
1 Faculty Honorarium:
Vedanta 7,500
Thomas Intl. 29,160
APTECH 12,900
Comp. Update 20,000
IIM-A 11,98,800 12,68,360
2 Stay @ Rs. 1,500/- per day/participant for 22 SMs/CMs and @
Rs. 2,400/- for 8 DGMs for 28 days
8,01,600
3 Catering @ Rs. 125/- per day/participant for 30 persons for 28 days 1,05,000
4 Photocopying 43,000
5 Stationary incl. Ties and Bags 18,220
6 Air Travel and Local Travel (If borne by IIPM) 5,000
7 Others: (Foreign Module)
a. Air Fare @ Rs. 35,726 for 31 people 11,07,506
b. Visa + Ins. @ Rs. 2,700 for 31 people 8,37,000
c. Foreign Allowance (27 people + 1 coordinator) 24,14,250 43,58,756
8 Cost of participants’ time @ Rs. 90,000 per participant
(assumed average CTC)
27,00,000
Total 92,999,36
Source: HR (Dept.), IOC.
Table 2: Costs Considered in the Excellence in Project
Management Programme at IOC
No. Cost Element Consolidated
Amount
(Rupee Value)
1 Faculty honorarium 19,200
2 Stay @ Rs. 1,500 per day/participant 1,68,000
3 Catering @ Rs. 125 per day/participant 14,875
4 Photocopying, stationary and brochure 27,500
5 Air and local travel 34,755
6 Photography and books 3,850
7 Cost of participants’ time @ Rs. 8,000
per participant (assumed average CTC)
2,40,000
Total 5,08,180
Source: HR (Dept.), IOC.
A STUDY ON RETURN ON INVESTMENT OF TRAINING PROGRAMME IN A GOVERNMENT ENTERPRISE IN INDIA