Using the analytic hierarchical process to investigate the impact of training on KPIs in an SME: A case study in the printing industry

Rosa Elizabeth Galleguillos-Pozo; Pablo Rial-González

doi:10.61089/abej.2024.2.86

Authors

Rosa Elizabeth Galleguillos-Pozo https://orcid.org/0000-0003-1316-5835
Pablo Rial-González https://orcid.org/0000-0001-9088-8901

DOI:

https://doi.org/10.61089/abej.2024.2.86

Abstract

This paper proposes an AHP and BSC based approach for evaluating the impact of training investments on KPIs in a manufacturing SME in Chile. The analytic hierarchy is structured in three steps: initial analysis (economic factors), organisational analysis (observation) and the impact of training investment on the economic factors in the initial analysis, in terms of the key performance indicators in each step. The aim of this study is to serve as a first stage in the development of an integrated approach linking key performance indicators (KPIs) to training plans, in order to obtain a working process that can be used to determine the weighted impact of training on KPIs, with a view to calculating the return on training investment in a future second stage of research. This paper integrates a theoretical approach with analytic hierarchical process (AHP) methodology. This new approach has been called hierarchical participatory action analysis (APAJ) and is carried out in five steps. APAJ was found to be a more realistic tool for assessing the cost-effectiveness of training in an organisation. A case study focusing on an SME operating within the printing sector is provided to demonstrate the practical application of the proposed methodology.

Metrics

Metrics Loading ...

References

Abelha, M., Fernandes, S., Mesquita, D., Seabra, F., & Ferreira-Oliveira, A. T. (2020). Graduate Employability and Competence Development in Higher Education—A Systematic Literature Review Using PRISMA. Sustainability, 12(15), 5900. https://doi.org/10.3390/su12155900

Aragón-Sánchez, A., Barba-Aragón, I., & Sanz-Valle, R. (2003). Effects of training on business results1. The International Journal of Human Resource Management, 14(6), 956-980. https://doi.org/10.1080/0958519032000106164

Álvarez Pérez, C., Rodríguez Montequín, V., Ortega Fernández, F., & Villanueva Balsera, J. (2017). Integrating analytic hierarchy process (AHP) and balanced scorecard (BSC) framework for sustainable business in a software factory in the financial sector. Sustainability, 9(4), 486. https://doi.org/10.3390/su9040486

Asadullah, M. A., Peretti, J. M., Ghulam Ali, A., & Bourgain, M. (2015). Firm size, ownership, training duration and training evaluation practices. European Journal of Training and Development, 39(5), 429-455. https://doi.org/10.1108/EJTD-10-2014-0072

Bahl, A., & Dietzen, A. (Eds.). (2019). Work-based Learning as a Pathway to Competence-based Education. A UNEVOC Network Contribution. https://doi.org/10.3390/su12155900

Barrows, H. S., & Tamblyn, R. M. (1980). Problem-based learning: An approach to medical education (Vol. 1). Springer Publishing Company.

Brahmana, R. K., Brahmana, R. K., & Fei Ho, T. C. (2018). Training and development policy, corporate governance, and firm performance. Gadjah Mada International Journal of Business, 20(1), 59-87. https://search.informit.org/doi/10.3316/informit.569434992657313

Castillo Sarabia, J. C., & Villalpando Cadena, P. (2019). El papel de las competencias laborales en el ámbito educativo: una perspectiva de reflexión e importancia. Revista Daena (International Journal of Good Conscience), 14(1). http://www.spentamexico.org/v14-n1/A3.14(1)30-51.pdf

Chochard, Y., & Davoine, E. (2011). Variables influencing the return on investment in management training programs: a utility analysis of 10 Swiss cases. International Journal

of Training and Development, 15(3), 225-243. https://doi.org/10.1111/j.1468-2419.2011.00379.x

Clares, P. M., Lorente, C. G., & Quintela, N. R. (2019). Competencias para la empleabilidad: un modelo de ecuaciones estructurales en la Facultad de Educación. Revista de Investigación Educativa, 37(1), 57-73. https://doi.org/10.6018/rie.37.1.343891

Curado, C., & Bernardino, G. (2018). Training programs’ return on investment in the Portuguese railway company: A fuzzy‐set qualitative comparative analysis. International Journal of Training and Development, 22(4), 239-255. https://doi.org/10.1111/ijtd.12136

Devarakonda, S. (2019). Calculating the Economic Viability of Corporate Trainings (Traditional & eLearning) using Benefit-Cost Ratio (BCR) and Return On Investment (ROI). International Journal of Advanced Corporate Learning (iJAC), 12(1), 41-57. https://doi.org/10.3991/ijac.v12i1.9735

Dolmans, D.H., De Grave, W., Wolfhagen, I. H., & van der Vleuten, C. P. (2005). Problem-based learning: future challenges for educational practice and research. Medical education, 39(7), 732-41. https://doi.org/10.1111/j.1365-2929.2005.02205.x

Domènech-Casal, J. (2019). Contexto y modelo en el aprendizaje basado en proyectos. Alambique Didáctica de las Ciencias Experimentales, núm. 98, 71-76.

Dwivedi, R., Prasad, K., Mandal, N., Singh, S., Vardhan, M., & Pamucar, D. (2021). Performance evaluation of an insurance company using an integrated Balanced Scorecard (BSC) and Best-Worst Method (BWM). Decision Making: Applications in Management and Engineering, 4(1), 33-50.

Elmoutanna, N., & Motii, N. (2022). Soft skills from university to workplace: A literature review. International Journal of Accounting, Finance, Auditing, Management and Economics, 3(5-1), 187-198. https://www.ijafame.org/index.php/ijafame/article/view/734

Evensen, D. H., Hmelo, C. E., & Hmelo-Silver, C. E. (2000). Problem-based learning: A research perspective on learning interactions. Routledge.

Fregonese, C., Caputo, A., & Langher, V. (2018). Italian translation of the questionnaire for professional training evaluation. International Journal of Training and Development, 22(1), 34-50. https://doi.org/10.1111/ijtd.12117

Galleguillos, R., Altamirano, S., García, M. V., Pérez, F., & Marcos, M. (2017, 12-17 September). Low cost CPPs for industrial control under FAHP algorithm. 22nd IEEE International Conference on Emerging Technologies and Factory Automation (ETFA). Limassol, Cyprus. https://doi.org/10.1109/ETFA.2017.8247775

García Govea, E. M, Escalate Domínguez, M., & San Agustín, Y. Q. (2012). Importancia del clima laboral en los resultados de una empresa y la competitividad. Contribuciones a la Economía, (2012-11). https://www.eumed.net/ce/2012/clima-laboral-empresa-competitividad.html

Gómez Lega, J. L. (2022). Modelo de cálculo del ROI de la formación en el área de desarrollo de competencias y su repercusión en la organización empresarial. [Tesis doctoral, Universidad a Distancia de Madrid]. Repositorio Institucional de la Universidad a Distancia de Madrid (UDIMA). http://hdl.handle.net/20.500.12226/1164

Grohmann, A., & Kauffeld, S. (2013). Evaluating training programs: development and correlates of the Questionnaire for Professional Training Evaluation. International Journal of Training and Development, 17(2), 135-155. https://doi.org/10.1111/ijtd.12005

Karim, M. M., Choudhury, M. M., & Latif, W. B. (2019). The impact of training and development on employees’ performance: an analysis of quantitative data. Noble International Journal of Business and Management Research, 3(2), 25-33.

Kopp, T., Kinkel, S., Schäfer, T., Kieslinger, B., & Brown, A. J. (2020). Measuring the impact of learning at the workplace on organizational performance. International Journal of Productivity and Performance Management. https://www.emerald.com/insight/content/doi/10.1108/IJPPM-12-2018-0443/full/html

Kucherov, D., & Manokhina, D. (2017). Evaluation of training programs in Russian manufacturing companies. European Journal of Training and Development, 41(2), 119-143. https://doi.org/10.1108/EJTD-10-2015-0084

Lechhab, N., Iordanova, I., & Forgues, D. (2022, May). Evaluation of the return on investment of BIM—the case of an architectural firm. In S. Walbridge, M. Nik-Bakht, K. Tsun Wai Ng, M. Shome, M. S. Alam, A. el Damatty, & G. Lovegrove (Eds.), Proceedings of the Canadian Society of Civil Engineering Annual Conference 2021, (pp. 43-443). Springer Nature Singapore. https://doi.org/10.1007/978-981-19-1029-6_33

Lorente, Bilbao, J.I., Doblas Pozo, P., & Zaldumbide Amezaga, I. (2011). La competencia en comunicación en el aprendizaje orientado a proyectos (PBL). DUGiDocs. https://dugi-doc.udg.edu/bitstream/handle/10256/3716/296.pdf?sequence=1&isAllowed=y

Mardani, A., Jusoh, A., & Zavadskas, E. K. (2015). Fuzzy multiple criteria decision-making techniques and applications – Two decades review from 1994 to 2014’, Expert Systems with Applications. Elsevier Ltd, 42(8), pp. 4126–4148. https://doi.org/10.1016/j.eswa.2015.01.003

Massingham, R., Massingham, P. R., & Dumay, J. (2018). Improving integrated reporting: a new learning and growth perspective for the balanced scorecard. Journal of Intellectual Capital, 20(1), 60-82. https://doi.org/10.1108/JIC-06-2018-0095

Matia Portilla, V. (2016). Formación profesional y formación para el empleo en España: del aprendizaje de tareas al desarrollo de competencias. [Tesis doctoral, Universidad de Valladolid]. Repositorio documental de la Universidad de Valladolid. https://doi.org/10.35376/10324/22300

Meade, L. M., & Sarkis, J. (1999). Analyzing organizational project alternatives for agile manufacturing processes: an analytical network approach. International Journal of Production Research, 37(2), 241-261. https://doi.org/10.1080/002075499191751

Murtazin, K., Shvets, O., & Piho, G. (2020, 21-24 October). Literature review on work-based learning. 2020 IEEE Frontiers in Education conference (FIE), Uppsala, Sweden. https://doi.org/10.1109/FIE44824.2020.9274264

Pereira Pessoa, M. V. (2023). Guidelines for teaching with ill-structured real-world engineering problems: insights from a redesigned engineering project management course. European Journal of Engineering Education, 48(4), 1-18. https://doi.org/10.1080/03043797.2023.2194850

Perusso, A., & Wagenaar, R. (2022). The state of work-based learning development in EU higher education: learnings from the WEXHE project. Studies in Higher Education, 47(7), 1423-1439. https://doi.org/10.1080/03075079.2021.1904233.

Phillips, J. J., & Phillips, P. P. (2016). Handbook of training evaluation and measurement methods. Routledge. https://doi.org/10.4324/9781315757230

Quezada, L., Palominos, P., Galleguillos, R., & Olmedo, A. (2014) A method for generating strategy maps using ANP. Journal of Manufacturing Technology Management, 25(8), 1090-1104. https://doi.org/10.1108/JMTM-06-2014-0081.

Rial, P. G. (2016). El marketing aplicado a la formación en la empresa: propuesta para la promoción de la formación entre los empleados a través de "lifelong learning”. [Tesis doctoral, Universidad de Santiago de Compostela]. Minerva – Repositorio Institucional de la USC. https://minerva.usc.es/xmlui/handle/10347/14634

Saaty, T. L. (1980). The analytic hierarchy process. McGrew-Hill.

Salimian, F. (2021). Measuring the return on investment of training modules of electrical protection and uninterruptible power supply (UPS) using the corrective and AHP approaches. Mathematical Problems in Engineering, 2021, (Article ID 2635761), 1-10. https://doi.org/10.1155/2021/2635761

Sreehari, P. (2021). Essential Soft Skills for Workplace Success. Revista Gestão Inovação e Tecnologias, 11(4), 2648-2654. http://revistageintec.net/old/wp-content/uploads/2022/03/2306.pdf

Subramanian, K. S., Sinha, V., & Gupta, P. D. (2012). A study on return on investment of training programme in a government enterprise in India. Vikalpa: The Journal for Decision Makers 37(1), 31-48. https://doi.org/10.1177/0256090920120103

Savery, J. R. (2006). Overview of Problem-based Learning: Definitions and Distinctions. Interdisciplinary Journal of Problem-Based Learning, 1(1), 9-20. https://doi.org/10.7771/1541-5015.1002

Tan, O. S. (2021). Problem-based learning innovation: Using problems to power learning in the 21st century. Gale Cengage Learning.

Tonhäuser, C., & Seeber, S. (2014). Assessing the Return on Investments in Human Resource Development: Theory and Practice. In Andresen, M., Nowak, C. (Eds). Human Resource Management Practices: Assessing Added Value (pp. 69-87). Springer, Cham. https://doi.org/10.1007/978-3-319-08186-1_5

Urbancová, H., Vrabcová, P., Hudáková, M., & Petrů, G. J. (2021). Effective training evaluation: The role of factors influencing the evaluation of effectiveness of employee training and development. Sustainability, 13(5), 1-14. https://doi.org/10.3390/su13052721

Van der Klink, M., Schlusmans, K., & Boon, J. (2007). Designing and implementing views on competencies. In M. Sicilia (Ed.), Competencies in organizational e-learning: Concepts and tools (pp. 221-233). IGI Global. https://doi.org/10.4018/978-1-59904-343-2.ch010

Van Rooij, S. W., & Merkebu, J. (2015). Measuring the business impact of employee learning: A view from the professional services sector. Human Resource Development Quarterly, 26(3), 275-297. https://doi.org/10.1002/hrdq.21211

Zahedi, F. (1986). The analytic hierarchy process—a survey of the method and its applications. Interfaces, 16(4), 96-1. https://www.jstor.org/stable/25060854