Issues: Learning and development; training return on investment; learning culture; human capital strategy; India

Disciplines: Organizational Behaviour/Leadership, International

Industries: Manufacturing
Setting: India, Large, 2013
Length: 15 pages
Intended Audience: Undergraduate/MBA
Publication Date: July 28, 2014
Abstract:
Tata Motors, a leading automobile manufacturer in India, pro-actively responded to the changing competitive
environment and redesigned its human capital strategy. As part of the new strategy, huge investments were
made in revamping the learning and development function for Tata Motors employees. Multiple initiatives were
launched to promote a learning culture, which also earned the company international recognition in the learning
and development community. The challenge for Tata Motors is to evaluate the effectiveness of these initiatives in
terms of their relative advantages and their ability to develop a learning culture in the organization. Effectively
capturing and measuring these parameters is crucial for justifying future investments in learning and
development.
Learning Objective:
To highlight:

The need for aligning human resource strategy with the business and corporate strategies of the
organization.
The issues involved in building a learning and development function and encouraging its acceptance
by the larger organization as a value-adding function.
The challenges of measuring the short-term and long-term benefits of learning and development
investment, with a view to continuously improving the system.

Measuring ROI of Training ?

Challenges

Learning and Development functions struggle to answer if it is possible to

calculate ROI on training investment? Is it the right approach for evaluating the
initiatives for building a learning culture? How does the organization compare
various initiatives? Effectively capturing and measuring these parameters
becomes important for justifying future investments in L&D.