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Learning and Growth. Given that employees are the basis for innovation, how can we
continue to improve and create value? The Balanced Scorecard identifies the
infrastructure that the organization must build on to create long-term growth and
improvement. Organizational learning and growth come from three principal sources:
people (stakeholders), systems and organizational procedures (process). The financial,
customer, and internal business process objectives will typically reveal large gaps
between existing capabilities of people, systems, and procedures and what will be
required to achieve breakthrough performance. To close these gaps, businesses will
have to invest in reskilling employees, enhancing information technology systems and
aligning organizational procedures and routines. In brief, three relevant categories are
recommended by Kaplan and Norton (1996) to be measured in this aspect: employee
capabilities, information technology, and motivation and alignment.
Internal Business Process. Skilled employees question existing processes, how can
we do improve it? In this aspect, management identifies the critical internal processes in
which trained employees must excel at. These processes enable to maximize the
benefits attributed from the training including shorter recruiting time, higher employee
retention, increased production, increased product quality, increased number of patents,
and fewer problem escalation requests. These are just few of the factors in monitoring
the internal business process that may affect or are affected by learning (training)
interventions in the workplace. The authors suggest measures of internal business
process by looking into the innovation and operation processes that bridges the
identification of internal and external customer needs and their satisfaction.
Customer Perspective. How do customers see us? Is there a need to improve
products, processes and services for customers? Kaplan and Norton suggest that
organizations must first identify the market segment that they aim to supply. For each
segment, they must focus on the type of measure that they use to fit the characteristics of
the company. The core outcome measures in this aspect are customer satisfaction,
customer retention, new customer acquisition, customer profitability, and market and
account share in targeted segments. Customer satisfaction can be defined in this study
as a degree to which customers are pleased with training products or services as
measured by (1) increased training demands or requests from customers, (2) frequency
of complaints about the training and (3) the extent to which the training met or exceed

'2
their expectations. By this concept, customers shall refer to managers and sponsors who
recommend the attendance and participation of employees a formal training course or
program. Kaplan and Norton also explained in this perspective the importance of image
and reputation as a dimension which reflects the intangible factors that attract customers
to a company. It enables company to proactively define itself for its customer.
Financial Perspective. How do our owners/shareholders see us? Happy customers are
loyal customers, the basis for long-term financial success. Financial performance
measures indicate whether a company’s training strategy, implementation, and execution
are contributing to bottom-line improvements. Financial objectives typically relate to
profitability-measured, for instance, by operating income, return-on-capital, or more
recently added economic value. Consequences of trainings may likewise affect future
decisions such as choices and course of actions to be made concerning the renewal and
creation of trainings, and the use of training outcomes to justify future budgets for
training.
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Input. At this stage, the elements that could be evaluated in terms of their potential
contribution to the overall effectiveness of a training program into categories are trainee
qualifications, instructor experience, and the availability of already tested instructional
materials, the types of equipment and training activities available, and the training
budget. Desimone et al. (2002) also mention that this stage seeks to answer the
question, “What goes into the training effort?” This stage includes (1) abilities of trainees,
also termed as trainability, is a concept that focuses on the trainee’s readiness to learn
combined with the level of previous knowledge, skills and work performance; (2) trainer
quality includes academic qualification, experience in the field of training, and possession
of trainer competencies. Trainer competencies shall mean the knowledge and varied
skills needed by the trainers to design and implement a training programs specifically the
ability to clearly communicate knowledge, use of varied instructional techniques, good
interpersonal skills and ability to motivate others to learn; (3) quality of training delivery
which refers to methods, strategies, facilities and activities utilized by the trainer in the
implementation of a training program; and (4) financial resources which account for
financial inputs such as annual financial allocations and actual expenditures from design,
delivery and evaluation of trainings.
Process. At the process stage, the evaluator needs to specify value adding factors such
as instructional objectives, development and design criteria, and the manner by which
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training materials are put together. It is also deemed important at this stage to collect
descriptive information regarding the following: (1) types of trainings
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according to purpose (compliance or developmental), source (in-house or outsourced)
and/or level (managerial, supervisory or rank and file); (2) trainees officially registered to
attend and participate
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a training course or program; and (3) Trainees’ perception on the
relevance of the training which considers their view on the trainings according to the
relationship between training contents and job context, relationship of trainings to future
career developments and the degree of applicability of training skills to job.
Output. This stage deals with the short-term benefits or effects of the training including
student reactions to training, knowledge and skills gained as a result of the training, and
improved performance on the job. Output stage is somehow comparable to Kirkpatrick’s
first three levels (Meyer and Elliot, 2003). Output includes concepts such as: (1) trainee
satisfaction which refers to the degree or level of meeting trainees’ expectations to trainer
performance, training contents and delivery. Trainer performance is measured through
the perception of trainees on how well a trainer has carried out her job and responded to
the needs of the trainees during the training delivery. Training contents are principles,
facts, information, skills which are determined by the subject-matter experts to meet the
objectives of training programs. Training methods refer to the means and strategies
employed by trainers in the learning process for each training course; (2) knowledge and
skills acquisition (learning achievement) which defines degrees which trainees achieve
training the objectives and acquire a certain level of learning consequent to his or her
attendance to trainings; and (3) Improved job performance (learning transfer or
application) as determined by the opportunity of trainees to perform training related
knowledge and skills and amount of support from work environment to apply new forms
of learning.
Outcome. This refers to the effect of the organization, including profits, productivity and
customer satisfaction. Bushnell explains the concepts such as profits, customer
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satisfaction and productivity as outcomes or long-term results of learning interventions
such as trainings. Profits may be construed as part and partial of organizational impact of
trainings, all of which the organization is trying to achieve specifically the frequency of
problems/deficiency after the training and contribution of trainings to annual
organizational targets. Additionally, this stage considers work motivation as an outcome
defined as a psychological process that causes the arousal, direction, persistence of
voluntary actions of employees after attending the training. It is characterized by, but not
limited to, their organizational commitment, frequency of absenteeism and turnover, and
willingness to render extra hours at work as a result of the training.
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Ability. The abilities that trainees possess are strongly believed to affect the outcomes of
an intervention. Holton mentions that well-known psychologists assert that general
cognitive ability has a significant impact on trainee success (Ree and Earls, 1991) and
interacts with motivation (Kanfer and Ackerman, 1989) to enhance outcomes. This
domain includes perceived content validity, transfer design, personal capacity to transfer
and opportunity to use training related knowledge, skills, behavior and attitudes. First,
perceived content validity refers to the extent to which trainees judge training contents to
accurately reflect job requirements. Second, transfer design is the degree to which (1)
training has been designed and delivered to give trainees the ability to transfer learning to
the job, and (2) training instructions match job requirements. Third, personal capacity for
transfer is the extent to which individuals have time, energy, and mental space in their
work lives to make changes required to transfer learning to the job. Lastly, opportunity to
use is the extent to which trainees are provided with or obtain resources and tasks on the
job enabling them to use training on the job.

"
Motivation. Motivation to transfer is defined as the direction, intensity, and persistence of
efforts towards utilizing knowledge and skills acquired from the training to the job. There
are two elements in this domain. First, transfer effort--performance expectations which is
described as the extent to which individuals believe that applying knowledge and skills
learned from the training will improve their performance, whether an individual believes
that investing efforts to utilize new skills has made a difference in the past or will affect
future productivity and effectiveness. Second, performance outcomes--expectations or
expectation that change in job performance will lead to valid outcomes. This scale
includes the extent to which organizations demonstrate the link between development,
performance, and recognition, clearly articulate performance expectations, recognize and
reward individuals when they comply with or exceed performance standards, and create
an environment which individuals feel good about performing well.
Work Environment. Research consistently shows that the work environment can be a
tremendous barrier to workers using their knowledge and expertise (Holton, 2000 and
Tracey et al., 1995). This domain includes scales such as (1) peer support, the extent to
which peers reinforce and support the use of training to the; (2) supervisor support, the
extent to which supervisor/managers support and reinforce the use of training to the job;
(3) resistance/openness to change, the extent to which prevailing group norms are
perceived by individuals to resist or discourage the use of knowledge and skills from the
training; (4) personal outcomes, the application or non-application of training-related skill
and knowledge comes in positive (such as increased productivity, personal satisfaction,
higher respect, salary and opportunity to advance) and negative (such as reprimand,
peer resentment, and heavy workloads but not getting any raise) forms; (5) and
supervisor sanctions, extent to which individuals perceive negative responses from
supervisors/managers when applying knowledge and skills from training.
Secondary Influences. Finally, Holton states that there two elements that affect
motivation, namely: (1) performance self-efficacy refers to the extent to which prevailing
group norms are perceived by individuals to resist or discourage the use of knowledge
and skills acquired from the training; and (2) learner readiness is the degree to which
individuals are prepared to enter and participate in training.
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