E training Cost

Hi I would like to know the factors which effect the cost of courses which are offered online as well as the steps to keep the cost in check if possible?

[Kiran Chandar]

Managing a training department can be a difficult task in balancing act. On is expected to provide the volume of services required by the organisation to meet identified learning needs, to deliver those services effectively and to deliver them at an appropriate cost.

Three ways to improve cost effectiveness

Like any other manager, the person accountable for training in an organisation is always looking to improve cost-effectiveness. There are essentially 3 strategies that the training manager has to choose from, without allowing an imbalance to occur:
• reduce costs while maintaining current levels of effectiveness and volume
• improve effectiveness while maintaining current levels of cost and volume
• increase volumes while maintaining current levels of cost and effectiveness

There are many tactics that the training manager would employ to realise these strategies, but only 1 option that has the potential to crack all three nuts:
• cheaper learning (reducing cost)
• better learning (improving effectiveness)
• more learning (increasing volume)

Cheaper learning
How should costs be measured?

To see whether online learning can save money, one must account for costs at all stages in the project lifecycle:
• analysis
• design and development
• promotion
• administration
• delivery
• evaluation
It's also imperative to take account of indirect costs, which are nearly always the largest factor:
• internal salaries and benefits of trainers, administrators, etc.
• the use of internal facilities
• student time and expenses in travel and training
• the opportunity cost of student time

Better learning
How can effectiveness be measured?
Kirkpatrick (1975) recognized four levels at which the effectiveness of training could be measured:
• the reactions of learners to the training they have received
• the extent to which learning occurred in line with the objectives for the training
• the extent to which what was learned was applied back on the job
• the difference that the application of new learning made to business results

How is that these gains in effectiveness can occur? It appears to be a combination of four factors:
• individualisation
• immediate constructive feedback
• active learner involvement
• an appeal to multiple senses