Company Profile

Tata Motors Limited is an automobile company. The Company is engaged in the

business of automobile products consisting of all types of commercial and passen
ger
vehicles, including financing of the vehicles sold by the Company.

Its operating segments include automotive operations and all other operations. I
ts
automotive segment operations include all activities relating to the development
,
design, manufacture, assembly and sale of vehicles, including vehicle financing,
as
well as sale of related parts and accessories.

Its automotive operations are further subdivided into Tata and other brand vehic
les
(including vehicle financing) and Jaguar Land Rover. It s all other operations
segment includes information technology services, and machine tools and factory
automation solutions.

Its commercial and passenger vehicles are marketed in countries in Europe, Afric
a,
the Middle East, South East Asia, South Asia, South America, Australia,
Commonwealth of Independent States and Russia.
Human Resource Development
(Measuring the impact of Training in Tata Motors)
Objective of the study

. To understanding how to Measure the Effectiveness of Training Program.

. To clear concept regarding Measuring Return on Investment of Training.

. To studying on how practical implication of Enhancing the Effectiveness and

ROI of Training at Tata Motors
Please give us your frank reactions and comments. They will help us to evaluate
this program and improve future programs.
Program :
Facilitator :
1. How do you rate the subject (interest, benefit, etc)
a. Excellent
b. Very Good
c. Good
d. Fair
e. Poor
2. How do you rate the facilitator? (knowledge, ability to deliver and communica
te?)
a. Excellent
b. Very Good
c. Good
d. Fair
e. Poor
3. How do you rate the facilities? (comfort, convinience, etc)
a. Excellent
b. Very Good
c. Good
d. Fair
e. Poor
4. What would have improved the program?

Measuring the impact of Training in Tata Motors

TATA MOTORS adopted 3 Ways to measuring ROI of Training

A. Measuring the Effectiveness of Training Program
B. Measuring Return on investment of training
C. Enhancing the Effectiveness and ROI of Training

A. Measuring the Effectiveness of Training Program

The Four Levels of Evaluation

Level 1 - Reaction
Evaluate trainees reactions to the program: Did they like the program?
Did they like the facilitators?
Did they like the training accommodation and facilities?
Sample of Reaction For
Experimental GroupControl GroupPre Test Score4546Post Test Score5548Gain102
Level 2 - Learning
Measuring learning means determining one or more of the
following:
What knowledge was learned?
What skills were developed or improved?
What attitudes were changed?

Pretest and Posttest Scores on Change Management Training

Level 3 Behavior Application

The frequency of application of new skills/knowledge/ attitudes (on the job)
The effectiveness of the skills/knowledge/ attitudes (as applied on the job)

Instruction:
The objective of this questionnaire is to determine the extent to which those
who attended the recent program on Leadership have applied the principles
and techniques that they learned there to the job.
Circle the answer that you consider appropriate for each question.
5 = Much more 4 = More 3 = Same 2 = Less 1 = Much less
Understanding and Motivating1. Trying to understand my subordinates 543212. List
ening to my subordinates543213. Praising good work543214. Talking with subordina
tes about
their family and personal interests5. Asking my subordinates for their ideas5432
16. Applying "Management by Walking Around"54321Time and energy spent after the
prgram
compared to time and energy spent before
the program54321

Level 4 Performance Results

Indicate the extent to which you think this program has influenced each of
these measures in your work unit, department, or business unit:
Productivity
Quality
Customer Response Time
Cost Control
Employee Satisfaction
Customer Satisfaction
Other

1st Program: TQM Training

Results after 3 months of training, number of defects dropped to 80 units/day
120
80
0
20
40
60
80
100
120
140
Before training
after training
Series 1
Series 1
20
30
0
5
10
15
20
25
30
35
before training
after training
Series 1
Series 1
2nd Program Sales Training:-
Results after 3 months training, number of sales per salesman
increase to 30 units/month.
B. Measuring Return on investment of training

Return on Investment of Training

Benefits of ROI of Training
Measure contribution
Set priorities
Focus on results
Alter management perceptions of training

ROI of Training Model

Collect Data
Convert data
to monetary
values

Isolate the
Effects of
Training

Calculate ROI
of Training

Tabulate
Program costs
1.
1. Collecting Data
. Identify appropriate performance indicators
. Develop a collection plan

Some performance results after training program:

. Rejections were reduced from 11 % to 7.4 %
. Absenteeism was reduced from 7 % to 3.25 %
. The annual turnover rate was reduced from 30 % to 16 %
. Customer complaints were reduced by 65 %

2. Isolating the Effects of Training

Trend Lines: - Trend lines are used to project the values of specific output
variables if training had not been undertaken.
The projection is compared to the actual data after training, and the difference
represents the estimate impact of training.

Actual Sales performance

The Difference
Represents The
Estimate
Impact Of
Training

Jan Feb Mar Apr May Jun July Aug

At the beginning of May , a
sales training program
session was held
Trend Projection
3. Converting Data to Monetary Values
Steps to Convert Data to Monetary Values
. Focus on a unit of improvement
. Determine a value of each unit
. Calculate the change in performance data
. Determine an annual amount of change
. Calculate the annual value of improvement

Step:-1. Determine a value of each unit

Using internal experts, the cost of an average grievance was estimated to be
Rs,500 when considering time and direct costs

Step:-2. Calculate the change in performance data

. Six months after the program was completed, total grievances per month
reaching step two declined by ten.
. Seven of the then grievance reductions were related to the program as
determined by supervisors (isolating the effects of training)

Step:-3. Determine an annual amount for the change

. Using the six month value, seven per month (grievance reductions), yields an
annual improvement of 84 (7 x 12 months)

Step:-4. Calculate the annual value of improvement

Annual value = 84 x Rs500 = Rs42,000

4. Practical :- Calculate ROI of Training

ROI = Net Program Benefits

Program Costs X 100
Example:

Costs per program (25 participants) Rs 88,500

Benefits per program (1st year) Rs 230,625
ROI = Rs 230,625 88,500
X 100
Rs 88,500

ROI = 161 %

5. Tabulating cost of the program

Cost components that should be included are :

. Travel, lodging, and meal costs for the participants
. Salaries, plus employee benefits of the participants who attend the training
. Administrative and overhead costs of the training function, allocated in some
convenient way

C. Enhancing Training Effectiveness

Trainee

Trainee recognizes need for new skills

Trainer

Trainee

Trainer designs and/or delivers learning

experiences

Trainer
Trainee

Manager supports lerning and

Manager

Application on the job

After Training

Manager

. Plan trainees reentry

. Provide opportunities to practice new skills
. Have trainees participate in transfer-related decisions
. Reduce job pressures initially
. Give positive reinforcement
. Schedule trainee briefings for co-workers
. Set mutual expectations for improvement
. Arrange proactive (refresher) sessions
. Provide and support the use of job aids

After Training
Trainer

. Provide follow-up support

. Conduct evaluation surveys and provide feedback
. Develop and administer recognition system
. Provide refresher/problem-solving sessions
After Training
Trainee

. Practice self-management
. Review training content and learned skills
. Develop a mentoring relationship
. Maintain contact with training buddies
Conclusion

With a robust Learning Management System and carefully tailored training

programs, the Tata Motors Academy offers a world-class learning experience. The
Academy ensures efficient transfer of knowledge through its team of experienced
trainers who are sensitive to individual learning capabilities.

From this project we can conclude that TATA Motors Strongly give attention behin
d
training cost to effective implication of training programme which ultimate help
to
employees for their career succession planning.
Strategic Human Resource Management
(Voluntary Retirement Scheme)
Objective of The Study

. To understand the Voluntary Retirement Scheme concept relate to the

prevailing conditions of the organisation.

. To study the Voluntary Retirement Scheme in Tata Motor s.

. To clear concept regarding how organisation communicate VRS to the

affected personnel.

. Easy to understanding theoretical concept with practical implication as per th

e
Hr Polices of the Organisation.
Introduction of Voluntary Retirement Scheme

Definition: Voluntary retirement scheme is a method used by companies to reduce

surplus staff. This mode has come about in India as labour laws do not permit di
rect
retrenchment of unionized employees.
Description: VRS applies to an employee who has completed 10 years of service or
is above 40 years of age. It should apply to all employees (by whatever name
called), including workers and executives of a company or of an authority or of
a co-
operative society, excepting directors of a company or a co-operative society.
WHY VRS?
There are several reasons for organizations to introduce VRS. The most common
among them are to:
Improve efficiency
Respond to decline in sales and increase in cost
Reduce overhead costs
Protect long-term interests of the organization
Achieve technological advancement that reduces the requirement for
manpower
Restructure the organization.

Improving efficiency:

Twenty organizations stated that they were not able to survive in the global bus
iness
environment and were unable to face fierce competition without improving their
efficiency. Reduction of employees and wage bill was one of the measures taken t
o
attain these objectives. Results indicated that only five of them improved their
performance. Responding to decline in sales and increase in cost: Seven
organizations stated that they were offering VRS because business had become
unviable due to decline in sales and increase in cost. Only two of them improved
their performance.
Reducing overhead costs:
Only two of the 13 organizations that stated this objective improved their
performance. All three above stated objectives were reactions to the changes in
external environment through VRS. Most of these organizations responded through
VRS once they got into a difficult situation. Their VRS was frequently not coupl
ed
with strategic reorientation. Consequently, these organizations were unable to
improve their performance after VRS.

Protecting long-term interests of the organization:

The organizations that took a long-term view of VRS and coupled it with strategi
c
change management initiatives have performed better. Two of the three
organizations that stated the purpose of VRS to serve the long-term interest of
the
organization improved their performance after VRS.

Achieving technological advancement:

Three organizations stated advancement of technology as a reason for manpower
reduction. None of them could improve performance. This result is to be taken wi
th
care as in adequate project implementation could have led to decline in
performance.

Restructuring the organization:

Restructuring was cited as areas on for downsizing in five organizations. This i
s in
line with the literature (Freeman, 1994) that major hierarchical changes drive
downsizing. However, such firms are frequently unable to anticipate appropriate
structure to improve their performance in a dynamic business environment.
Consequently, only one of these five organizations improved its performance. A
careful examination of the VRS objectives shows that organizations that had
improved their performance were candid in their communication with employees.
VRS schemes announced by Tata motors

Struggling with mounting losses in its domestic operations, Tata Motors today
announced voluntary retirement scheme for workers as it tries to overcome the
impact of depressed growth in commercial vehicle and passenger car businesses.
The company said it is undertaking a slew of new initiatives, including producti
vity
benchmarking, cost optimisation and job enrichment, for a more effective and
efficient organisational structure aligned to market demand, Tata Motors said in
a
statement.
"As a part of these initiatives, the company has announced a Voluntary Retiremen
t
Scheme (VRS), presently intended for the workmen," it said.
When contacted, a company spokesperson said currently there were about 16,000
workers on the company's rolls. The company, however, did not share how much
money it has earmarked for the VRS.

Elaborating on the scheme, the company said: "Generous benefits package will be
offered to employees who opt for the scheme, including a monthly payout (Basic D
A)
that begins at the date of separation till the employee turns 60 years of age, t
hus
ensuring an assured monthly income as opposed to just a one-time payment of a
single amount."
The other provisions under the scheme would entail a medical insurance cover for
a
period of 10 years post separation, it added.
Tata Motors has been struggling in its domestic operations due to prolonged sale
s
slump both in passenger and commercial vehicles segment.
It reported a net loss of Rs 2,122.72 crore on a standalone basis for the third
quarter
ended December 31, as against a net profit of Rs 1,251.4 crore in the same perio
d a
year ago.
For the April-December period, the company posted a standalone net loss of Rs
3,575 crore, against a profit of Rs 1,151 crore during the same period of previo
us
fiscal.

It's overall profitability has been driven by its British arm Jaguar Land Rover
(JLR)
but in the quarter ended December 31, 2014 its consolidated net profit dipped by
25.5 per cent drop at Rs 3,581 crore dragged by the loss in domestic business an
d a
marginal dip in JLR's profit.

Tata Motors said its "people initiatives" will extend to all categories of emplo
yees,
including workmen and the managerial cadres.
"Key focus areas will include productivity benchmarking, cost optimisation and j
ob
enrichment, for a more effective and efficient organisational structure aligned
to
market demand," it added.

Tata Motors said the initiatives will complement the strong product portfolio it
has
announced till 2020, including the launch every year of two new products for its
passenger vehicle business, and several new products and variants for its
commercial vehicles business.
The company's shares ended at Rs 575.50 apiece on the BSE, up 2.73 per cent
from previous close.
Implementation of VRS

We had extensive discussions with senior managers, employees, union leaders, and
civil authorities in four organizations which had improved their performance
significantly and had achieved significant manpower reduction through VRS.
The key characteristics of VRS Implementation in this case are:
. Transparent and proactive communication of managerial intent to reduce
manpower.
. Active exploration of other alternatives to manpower reduction by managers.
. Involvement of multiple stakeholders in VRS implementation process.
. Developing trust among employees regarding fairness, honesty, and
commitment of manager s towards organization and its employees.

. Transparent and proactive communication:

The CEOs and other senior managers communicated with employees well before
the announcement of VRS regarding the health of the organization and the need fo
r
manpower reduction. The CEO in one of the organizations stated:
They had a meeting with all the heads of functions in which they collectively de
cided
to remain honest and transparent to their employees about their intent to overco
me
difficult times. Slowly, union leaders, government authorities, and workers real
ized
that there was no option other than VRS. They could effectively reduce more than
60
per cent of our workforce without attractive payments. We could not pay well as
we
lacked financial resources. However, they remain in touch with their retired
employees through their welfare schemes for them like health, education, housing
,
etc.
. Active exploration of other alternatives:

In all the four cases, attempts had been made to explore the possibilities of
expansion of activities of the organization to retain the employees productively
. In
one of the organizations, nearly five new products were developed and launched t
o
retain employees. One of the directors of the organization said, They were makin
g
huge losses but were willing to invest in new product development so that They
could survive in the competitive environment without reducing their manpower.
However, none of their new product launches was effective and they had no option
but to reduce their recurring expenses on employees through VRS.
. Involvement of multiple stakeholders in VRS implementation process:

In all the cases, management communicated extensively with other agencies like
government authorities, trade union leaders, and civil authorities. This
communication was helpful to overcome difficulties of VRS implementation. One of

the CEOs of the organizations stated:

They did not have funds to meet VRS obligations. In such difficult times, banks
helped them on assurance of the government who is the owner of the organization.
In all four cases, the organizations belonged to either a large business house o
r the
government. The owners of the organizations supported the managerial initiatives
of
manpower reduction to enhance the performance of the organizations.
In another case, the management sought government s permission to close the plant
after convincing them that there was no other alternative to closure. Such grant
of
permission by the government left no option to the workers than to accept the VR
S
or else get retrenched. The organization could effectively reduce more than 60pe
r
cent workforce. The organization tried to provide alternative employment by hiri
ng
the services of potentially capable, voluntarily retired employees in activities
like
transportation, maintenance, etc. The organization also provided for health,
vocational training, free education for children, and housing facility for volun
tarily
retired employees. In this organization, there was very little feeling of guilt
among the
retained employees though the cash payment to voluntarily retired employees was
one of the lowest by an organization in India in the recent past.
. Developing trust among employees regarding fairness:

Honesty and commitment: In all the four cases, clear guidelines were issued to
decide the acceptance of application for voluntary retirement. In one of the
organizations, all employees of one plant were targeted. The plant was to be clo
sed
down. In the second case, all the low performers in the organization were identi
fied
to accept VRS. The CEO of the organization stated:
They believe in Selective Retirement Scheme (SRS) and not in VRS. We could
identify all the low performers and trouble creators in the organization who wer
e later
targeted in our VRS. In another organization, all the employees who met age and
minimum service conditions were open to seek VRS. The implementation of these
different criteria was extremely honest that helped to build confidence among
employees regarding the fairness of the scheme.
Conclusion

The study attempted to find relationship between the contents of the VRS of the
organizations and improvement in their performance. It is found that no fixed patt
ern
has evolved for VRS among Indian organizations. All the organizations had some
unique characteristics in their VRS.
No specific sector of organizations has fully benefited from VRS. The ownership
of
the organization did not differentiate in the success of VRS. Organizations that
unequivocally stated their objectives of VRS performed better than others. These
organizations laid emphasis on communicating the actual situation to their
employees even before going for manpower reduction. This helped them to build
trust among the employees opting for VRS and the survivors who perceived the
process to be transparent.
Limitation

. Limited time period utilize for the completion of this project.

. This project totally depends on secondary Data for respective Company.

. Preparation and Representation is limited as per the guidelines of the GTU.

Bibliography (SHRM)

Books List
. Pulak Das (2015), Strategic Human Resource Management.
CENGAGE Learning.

. Randall S.Schuler, Susan E. Jackson (2015), Strategic Human

Resource Management , , Tata McGraw-Hill Education.

Websites
http://www.tcs.com/about/Pages/default.aspx
https://www.linkedin.com/title/learning-and-development-at-tcs

Bibliography (HRD)

Books List
. John M .Werner, Randy L.Desimone (2015), Human Resource
Development. CENGAGE Learning.

. John P Wilson (2014), Human Resource Development, Tata McGraw-

Hill Education.

Websites
http://www.tcs.com/about/Pages/default.aspx
https://www.linkedin.com/title/learning-and-development-at-tcs