9B14C034
EYES OF JANUS: EVALUATING LEARNING AND DEVELOPMENT AT
TATA MOTORS
Debolina Dutta and Professor Mathew J. Manimala wrote this case solely to provide material for class discussion. The authors do
not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain
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Copyright © 2014, Richard Ivey School of Business Foundation
Version: 2014-07-28
It was January 2013, and the chief human resources officer (CHRO) of Tata Motors Limited (TML) had
just concluded a performance review with Vikram Bector, chief talent officer (CTO) and his learning and
development (L&D) team. The main focus of the L&D review was Tata Motors Academy (TMA), a
corporate university that TML had established at its Mumbai headquarters in early 2011. TMA was a
critical piece of the company’s newly formulated human capital strategy, whose overarching objective
was to transform TML into a world-class destination for top talent.
The CHRO was pleased that TMA’s programs had attracted participants from TML’s various
departments, many of whom wanted TMA to increase the number and variety of its programs. This was
an important endorsement. However, in his opinion, there were three main criteria for evaluating TMA’s
performance: 1) the number and quality of internal specialists TMA could attract as faculty for its
programs; 2) the self-learning and career development culture created by TMA’s interventions, especially
through its e-learning programs; and 3) the impact of TMA programs on leadership development and
performance improvement. While TMA’s performance regarding these criteria was commendable, the
CHRO was concerned about the queries from the top management regarding the financial returns on the
investments made in TMA. This was a question Bector would have to face during the forthcoming budget
meeting.
Closing the review, the CHRO said:
You know, in Roman mythology, Janus, the God of beginnings and transitions, was reputed to be
blessed with two sets of eyes, one set looking forward and the other set looking back. Today, Tata
Motors HR and L&D teams epitomize the change and the beginning of a new era. So, ladies and
gentlemen, the question for the Tata Motors Learning & Development team is: should the eyes of
Janus only look forward or is it time that the eyes also open and look back?”
Page 2
THE ORGANIZATION CONTEXT
9B14C034
1
Established in 1945 in pre-Independence India, Tata Motors Limited (then known as Tata Engineering
and Locomotive Company Limited or TELCO) was the oldest and largest automobile company in India,
with a wide range of products (see Exhibit 1) and a consolidated annual turnover of US$32.5 billion in
2011/12. Its first commercial vehicle was launched in 1954, in collaboration with Daimler-Benz AG.
Though this collaboration was terminated in 1969, there was a spate of other collaborations, which took
the company into many other countries such as South Korea, Spain, Brazil, Thailand, South Africa and
the United Kingdom. By 2010, TML had established itself as a multinational company (it had been listed
on New York Stock Exchange since September 2004) with an employee strength of around 49,000
employees. One of TML’s major strengths was its customer orientation, which was reflected not only in
its wide network of over 3,500 distributors and service centres but also in its enthusiasm for introducing
locally innovative products to cater to the emerging needs of the community.
In order to support the design and launch of innovative products for the local market, the company had set
up several research and development (R&D) centres — four in India and three abroad (one each in South
Korea, Spain and the United Kingdom). The growth of the company in terms of size, product range and
countries of operation had significantly increased the complexity of its activities. It was also necessary to
be internationally competitive by meeting (and preferably exceeding) the fast-changing technology and
quality standards of the industry. Under these circumstances, it became extremely important for the
company to have a renewed focus on developing and retaining talent under a new human capital strategy.
THE VISION OF CHANGE
The domestic market for automobiles had exploded (see Exhibit 2) due to high growth rates, greater
disposable income, low interest rates and easier financing arrangements, all of which equally supported
consumer demand and the growth of the Indian automobile industry. Notwithstanding this growth spurt,
TML witnessed a steep fall in profits, culminating in losses during financial year 2000/01, which was
attributed to the Asian financial crisis and increasing domestic competition. While the company overcame
the crisis quickly and recorded a sharp rise in profits from 2001/02 onwards, the year 2006/07 would
mark the beginning of another phase of stagnation and decline, which impacted its financial performance
(see Exhibits 3 and 4).
The need for transformation and change was evident. Subsequent to the losses in 2001, TML realized the
need to reorganize its business, not only to come out of the red but also to ensure that it once again
became a profitable, successful entity. TML embarked on a transformational strategy of disruptive
innovation to create new segments with innovative products by envisioning the future consumer demand.
The products that emerged from this strategy were the Tata Indica, which was initiated in 1998 and
launched in 2004, and the Tata Ace, India’s first mini truck and a game-changing product that
revolutionized the commercial vehicle industry by creating a new segment when TML launched it in May
2005. The challenge for the TML team was to work within the rigid constraints of cost minimization (less
than INR100,000), meeting regulatory and safety requirements and delivering on specified performance
guidelines (high fuel efficiency, durability and low maintenance costs), and to do all this within a short
period of time.
TML also introduced the “New Product Introduction” (NPI) group to establish knowledge sharing
mechanisms. An important process document for NPI was the “things gone right/things gone wrong”
1
www.tatamotors.com/, accessed January 30, 2014.
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(TGR/TGW) template, which documented the team’s learning from all important projects. The objective
was to ensure that the various TGRs and TGWs in any project were systematically mapped, documented
and made available for employees working across projects in TML. The process included data
documentation and sharing by the project lead at various stages in the project and through presentations in
divisional meetings, project reviews to the leadership team, gateway approval reviews and finally through
the company Intranet, “MyTataMotors.”
The products introduced as disruptive innovations were able to establish a strong foothold in the domestic
commercial and passenger vehicle market but saw only a modest acceptance in the international market.
There was an adverse impact on TML’s performance, with profits falling again sharply in 2007/08 (see
Exhibit 4). Despite the fall in profits, TML did not report any losses in the midst of the global financial
crisis in 2008/09 (see Exhibit 4). By financial year 2009/10, TML was able to halt the fall in profits and
increase its net revenue compared to 2008/09. However, its fluctuating performance was a clear call to
action.
TML’s employee base had grown over the years to around 49,000 employees. The company’s ambitious
vision of growth seemed feasible only if the organization looked at getting their employees updated, upskilled and equipped with the necessary competencies to face the challenges of increasing competition
and dynamic business conditions.
Apart from various initiatives on the business front, the organization placed a renewed focus on its human
resources agenda. In 2010, its CHRO spearheaded the development and adoption of TML’s human capital
strategy (see Exhibit 5). It was from this strategy that the vision of the talent management and learning
and development functions emerged (see Exhibit 6). The human capital strategy aimed to make TML a
world-class destination for best-in-class talent to achieve business success. The new human capital
strategy was guided by the company’s vision of being “[m]ost admired by our customers, employees,
business partners and shareholders for the experience and value they enjoy from being with us,” and its
mission “[t]o be passionate in anticipating and providing the best vehicles and experiences that excite our
customers globally.” 2
THE HUMAN CAPITAL STRATEGY
The objective of the new human capital strategy was to create a culture of high performance through a
program called ACES. 3 The four tenets of ACES were:
•
•
•
•
Accountability: Take personal ownership for results — yours, your team’s and Tata Motors’.
Customer and Product Focus: Create vehicles that customers aspire to buy, build brands they are
proud to own, and deliver an unmatched ownership experience.
Excellence: Desire to be on the winning team, not middle of the pack. Encourage the organization to
stretch.
Speed: Act swiftly and decisively to achieve results.
The three planks of the human capital strategy were “Talent and Leadership,” “Organizational Renewal”
and “Organizational Enablers,” aimed at building sustained customer satisfaction and business
performance (see Exhibit 5).
2
Internal documents provided by the company.
The acronym ACES was conceptualized by TML as an internal framework for easy understanding and acceptance of the
new cultural priorities.
3
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To realize the vision of the human capital strategy, the organization further strengthened and made
changes to the HR function. The purpose was to increase organization readiness for the changing business
context of increased competition. The underlying expectation from the new L&D team was that it would
catalyze the organization and bring about an urgently needed culture of change.
With a new vision and mission, it was clear that TML placed a huge emphasis on building a learning
culture and that L&D would be an important strategic partner in driving it.
TATA MOTORS ACADEMY (TMA)
Tata Motors Academy was conceived as a corporate university to realize the human capital strategy.
TMA had its own vision, logo and tagline, which were used to communicate its purpose and drive the
learning agenda. 4 The guiding principles of ACES helped each member of the L&D team live the cultural
values in their way of working and in delivering effective learning solutions to the business.
TMA was created to cater to the learning needs of all employees and other key stakeholders such as
dealers, vendors and contract employees. Learning programs were offered in four broad areas: functional
and technical skills, management skills, mandatory programs (such as new recruit induction, compliance
trainings, etc.) and global leadership skills. Accordingly, TMA was structured into six centres of
excellence (COE) focusing on target groups or types of activity. The major COEs were: Manufacturing
Excellence and Innovation, Operator Training, Commercial Training, Dealer Training, Corporate
Training and Behavioural Training (see Exhibit 6), some of which were further divided into sub-centres.
Additionally, the Learning Support Services (LSS) department provided common services to the COEs.
The COEs and LSS operated in a matrix structure, with the latter providing common services to the COEs
as and when required. Additionally, the COEs took help from the Tata Group-owned training centre, Tata
Management Training Centre, universities and business schools as well as consultants and trainers (see
Exhibit 6).
Nearly 60 to 70 per cent of TMA’s programs focused on developing functional and technical capabilities
and were designed and customized to local needs by the local L&D team, while the management and
global programs were designed centrally for the entire organization. All behavioural training programs
were aligned to the leadership and competency framework defined as the Tata Leadership Practice (TLP),
which was the common leadership and competency framework for all Tata Group companies.
Among the several programs designed and conducted by the various COEs of TMA, a popular one was
the six-month-long Executive Development Program (EDP) on Global Leadership, which was offered to
all employees promoted from within and freshly appointed to the executive grades (EG). Its evolution was
fairly illustrative of the process of program design and revision followed at TMA.
TMA launched this program in the conventional mode, and until mid-2012, offered it as a 14-day
residential program with nearly 100 per cent classroom training. However, the program was drastically
redesigned in 2012, based on feedback from participants of previous groups, and also with a view to
moving to online learning. The redesigned program was a judicious mix of e-learning, classroom-learning
and on-field internships. An important feature of the new design was a four-to-six day module on crossdomain orientation, during which the participants spent time with departments other than their own. The
net effect of all these reforms was that the course was able to deal with issues that were individual4
http://tatamotorsacademy.com/, accessed December 28, 2013.
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specific, company-specific and practice-oriented, as well as providing an understanding of other
departments. The process of redesign was guided by the “Six Disciplines of Learning” (6D) approach —
the ‘Define-Design-Deliver-Drive-Deploy-Document’ approach popularized by the U.S.-based Fort Hill
Company (see Exhibit 7). 5 The redesigned program (especially the cross-domain orientation) was very
well appreciated, as was evident from the feedback of participants.
Internal reviews by TMA attributed the success and broad-based acceptance of its programs within TML
to the following features:
•
•
•
•
•
Alignment of programs with the company’s needs and operating schedules.
Emphasis on company-specific and practice-oriented issues by having more internal faculty and fieldbased internships.
Flexibility for learners to access content of their choice at their own time and pace by creating a new
learning management system called TMA-Online and providing almost 50 per cent of the content
(even in formal programs) through this system.
Facilitating interaction among various departments to create a better understanding of one another and
a feeling of “One Team-One Vision.”
An inclusive vision of training, which not only included TMA’s own employees and external
stakeholders but also the larger community. In fact, TMA not only created a COE for operator
training aimed at blue-collar workers, but also extended the facility to others to promote the cause of
skill development in the country.
The inclusive vision of TMA’s training and the variety of groups, content and regions involved made it a
massive and complex operation. Quantifying the magnitude of the coverage required by TMA, Vikram
Bector, CTO, described the Herculean task before the TMA team in the following words:
With nearly 49,000 employees and 2,000 dealers having thousands of salesmen, creating an
impact through training is like trying to boil the ocean! With the industry changing rapidly and
higher levels of automation coming in, TMA needs to constantly redefine the content and reach to
match the ever expanding profile of learners. We need to ensure mass scale capability and
competency building and develop a culture of learning across the organization and our
stakeholders. Only if we do this, and do this fast, can we change as well as adapt to the
competitive environment.
It was a monumental task to ensure uniform implementation of business aligned learning programs for an
operation of this magnitude while at the same time catering to local needs and meeting the three criteria
for evaluation and improvement (efficiency, effectiveness and business outcomes). Hence, TMA felt it
was necessary to have a few guiding principles for its activities.
GUIDING PRINCIPLES OF TMA
TMA articulated and enforced the following eight principles with a view to addressing the L&D-related
concerns of all its stakeholders, both internal and external. These principles were focused on business
strategy, implementation, outcomes and evaluation.
5
www.forthillcompany.com/, accessed January 30, 2014.
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1. Alignment to Business Strategy
With a clear market leadership vision (TML was targeting second position in the passenger cars segment
in India while maintaining its market dominance in the commercial vehicles segment), it was imperative
that all learning investments work to help achieve this desired end result. To ensure this alignment, TML
created a governance structure through a Learning Advisory Council (LAC). The paradigm shift here was
that the training was to be driven by the business, rather than be the sole responsibility of the HR or L&D
team. The LAC jointly identified the areas of training, which could be technical, behavioural, managerial
or soft skills. The involvement of the LAC brought relevance, advocacy and credibility to TMA’s
programs, and was especially critical in designing and creating technical and functional training
programs.
An example of the alignment of training with the desired business goal was the institutionalization and
execution of the Autonova tx (technical excellence) program within the Manufacturing Excellence COE.
The program was born out of a joint effort by the learning teams and the business to understand and
address the top five areas of improvement in terms of product quality (from the perspective of customers)
in the commercial vehicles segment. Though it was in the early stages of implementation, the Autonova tx
project was showing positive results. As of 2012, over 3,297 employees were trained in this program.
TMA had developed a robust feedback-tracking mechanism (see Exhibit 8) based on the “context, input,
reaction and outcome” (CIRO) format, which included participant feedback collected immediately after
training and a knowledge gain test to measure the effectiveness of the training programs. For Autonova
tx, feedback was tracked on four aspects: content, implementation, opportunity to apply and trainer
feedback. To assess knowledge gain, participants were tested on various topics (sessions covered in the
program) before and after the classroom session. TMA tracked and published the knowledge gain (see
Exhibit 9) of the participants to the various stakeholders.
Learning from its own experience, TMA had changed its focus from doing a large number and variety of
training programs to doing fewer programs (in terms of variety) that were more relevant to the business,
with greater frequency. The intention of the L&D team was to change the team’s performance metrics
from capturing training hours to measuring business outcomes and translating the training inputs to
tangible and measurable improvements. However, while TMA had some yardsticks to track results (see
Exhibit 10), these changing metrics were still being evolved.
2. Leadership Involvement in TMA
TML hoped to enhance the involvement of its own leaders in the learning process by creating a culture of
“leaders as teachers.” With this idea, TMA launched the ‘iteach’ flagship program in 2011. This program
was built to develop internal trainers and subject matter experts, who would be trained on facilitation
skills with the help of an external partner. The “Train the Trainer” program looked at building rigour and
competency for ensuring excellence in training. The iteach trainers who received this certification were
considered an elite segment of trainers. For each hour of training they conducted, an iteach trainer
received 200 iteach reward points, which could be accumulated and exchanged for non-monetary rewards
such as tablets, laptops, etc, through TML’s tie-up with an external third-party gift vendor. However, the
primary driver remained the recognition accorded to iteach trainers within the organization.
The iteach program had been a huge success and the certification became both an aspirational and
motivational factor for employees. By November 2012, there were more than 300 certified iteach trainers
within TML. The company wanted at least 25 per cent of its iteach trainers to come from the senior
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executive grades (deputy general manager and above). With over 3,500 mid- to senior-level employees
retiring within the next five years, TML hoped to use this program to ensure that tacit knowledge was
disseminated and retained within the organization.
3. Efficiency in Training Delivery
TMA had brought about a shift in focus from the volume of training conducted to ensuring the efficient
delivery of training programs. The team collected “efficiency” data, an indicator of activity levels and
investment in learning and development. Examples of this included the number of participants, the
number of programs delivered, utilization rates and cost per participant. The team tracked this data for
centrally driven trainings and maintained a decentralized training budget and calendar customized to local
needs. To ensure that the learning programs were available to locations outside India, the team had made
a modest beginning by connecting their overseas locations through TMA-online and offering e-learning
courses. Overseas employees nominated for specific programs travelled to India for the flagship EDP
program and other leadership programs.
The centrally driven programs focused on global leadership, management development and induction
programs. This had resulted in a common dashboard used for all locations and business units (see Exhibit
10). This system had helped to ensure that the training programs were centrally managed and uniformly
disseminated, thereby facilitating the development of a common vision, objectives and culture. However,
the functional and technical programs, which accounted for nearly 60 to 70 per cent of the total offerings,
were conducted locally at the business unit level, albeit with the LAC’s approval. This combination of a
centralized and decentralized approach allowed TMA to efficiently address the training needs of
individual local units as well as the larger organization.
4. Training Effectiveness
Effectiveness measures were indicators of how impactful the learning programs were and whether they
were likely to improve business performance. L&D teams used five standard criteria to measure the
overall effectiveness of training: delivery quality, knowledge gain, application to job, business impact and
value. Business impact data were the key performance indicators linked to the desired outcomes of
investing in L&D (e.g., revenue, productivity and contribution of profit per employee). The idea was to
link the training to tangible performance improvements and business outcomes, which in TML’s case had
naturally led to the development of programs largely centred around the enhancement of functional and
technical skills (close to 60 per cent of programs).
The L&D team was in the initial stages of developing metrics to measure the impact of training programs
on business outcomes. Finding the right balance between efficiency and effectiveness would ensure that
TML’s learning and development investment had the optimal impact. One measure used for this was the
business outcome rating, which was usually a statistical link between the participants’ collective opinion
of the value of the program and its predictive impact on job performance. The Fort Hill Company also
provided a learning impact calculator 6 that could help with determining the effectiveness of the trainings.
The L&D team hoped that evidence of tangible and financial benefits would increase the credibility and
traction of the training programs.
6
www.forthillcompany.com/resources/calculate-your-impact/, accessed September 30, 2013.
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5. Appropriate L&D Investment
TML had substantially increased its investment in L&D from 2010 onwards. With close to 50 per cent of
the training done internally, TML had invested in dedicated training infrastructure across locations, and in
increasing the number of certified trainers and facilitators. It had been slowly increasing its investment in
certifying trainers for specific programs and “Train the Trainer” programs in a phased and prioritized
manner. It believed that inducting business HR colleagues into this methodology would help to build the
necessary traction for L&D investments and articulate important business priorities and outcomes that
ought to be considered when training programs were designed and delivered.
6. Broad-basing Learning Opportunities
TML explored all avenues to enhance the learning and knowledge levels within the company. Extending
beyond conventional classroom training, the company launched several initiatives for building a culture
of learning within the organization, such as establishing knowledge portals, creating a diverse portfolio of
e-learning modules, designing and implementing coaching and mentoring programs and developing
communities of practice (COPs).
One of the highlights of the project management module design was the creation of a “community of
project management practitioners” (COPMP), which was developed to sustain, appropriately apply,
capture and share project management practices across the group. COPMP was a real-time online tool
for participants to share ideas on projects, goals, interests, problems and approaches.
TMA made a focused investment to facilitate online learning with the development of the TMA online elearning platform. E-learning was especially useful for participants to get access to world-class content at
their own time and pace. This portal, launched in April 2012, had over 3,000 online courses, 18,000 ebooks and 750 videos to support self-learning, augment face-to-face training and help employees work on
their training gaps. The online portal also allowed TMA to collect feedback on training sessions as against
the conventional method of collecting pen and paper feedback after each session. Over 49,704 people,
including employees of TML and its subsidiaries as well as employees of its sales and service channel
partners, accessed TMA-online — a testimonial to its widespread adoption.
7. Competency of the Learning & Development team
To deliver on the promise and vision of TMA, it was imperative to develop a high-calibre L&D team that
delivered on quality and was available in the required quantity. TMA had made significant investments in
both infrastructure and learning resources. The team had undergone structured Learning Management
Solutions training to ensure it could support the smooth deployment of the TMA agenda. The team had
also attended focused programs on the 6D process, enhancing business acumen, and becoming better
facilitators under the iteach process; however, there still were large gaps between the investment made
and the investment needed in L&D for the effective delivery of the TMA charter. The challenge was to
secure this additional investment, given the tough business environment faced by TML.
8. Measurement of Training Outcomes
It was easy to see the outcome of the training investment at the organization level, as the change was
being felt by one and all. However, the TMA team struggled to develop metrics that could evaluate
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training effectiveness at the group and individual levels. Bector had developed internal metrics for the
L&D function (see Exhibit 10), but was this enough? Any future investment in L&D had to be clearly
justified to the senior management in terms of quantifiable business outcomes and metrics.
RECOGNITION
The journey that began in 2011 for the L&D team at TML had been an exciting one. Their efforts had
borne fruit. TML was recognized as the “Best Learning Organization-Asia (2011-12)” at the Best
Learning Organizations of Asia Seminar and Awards ceremony to honour best practices and innovative
ideas in the industry, in Mumbai on June 7, 2012. The evaluation criteria used by this independent body7
focused on how the organization defined its learning agenda, how it captured and managed discordant
information from its stakeholders, how it avoided the repetition of mistakes, how it managed the loss of
critical data due to employee attrition, and how it leveraged information it already had and used this to
proactively sense and create new product categories.
While external recognition was satisfying, it was far more rewarding for Bector to receive accolades from
skeptics within the organization. An email from the Assistant General Manager of the Auto Products Unit
at Pune was an example:
As we sit on the first anniversary of the Autonova initiative, I would be the first to admit to the
reservations I had on all of this. However, the perseverance your team exhibited in getting
together people who had some know-how and in systematically converting the intrinsic
knowledge they had into explicit and relevant training material was amazing. I never believed
that knowledge could be transferred in this way. Maybe the fear that “I may lose importance” was
also playing at the back of every person’s mind along with the fear of rejection by the audience.
Even after that, I still remained doubtful if the momentum could be sustained. Today, after a year,
I salute the perseverance of the entire team. The juggernaut has started and I can see the change!
TMA conducted an internal survey to gauge its impact on the capability development effort within the
organization. The results of the survey offered reassurance that it was on the right path and making a
positive difference. Seventy-four per cent of the respondents agreed or strongly agreed that the learning
programs increased their competency to do their work better and 79 per cent agreed or strongly agreed
that TMA provided ample opportunities for people to learn and grow.
PRESENT CHALLENGES
It was critical that the team continue to build and maintain the focus defined in its charter. In a large,
geographically dispersed, diverse and matrix-structured organization, it was important that the team focus
on mastering a few activities rather than spreading themselves too thin by taking up multiple initiatives,
for which they may not have the resources to deliver sustainably or which may dilute the focus of the
charter. Bector knew that the CHRO expected him to be able to demonstrate the return on investment of
key initiatives and report it on an ongoing basis.
7
The jury was chaired by Dr. T. V. Rao (commonly referred as "the Father of Indian HRD"), and included luminaries such
as Robert Whitman (Global Chairman and CEO, Franklin Covey, U.S.), Sarah Cook (author of the Essential Guide to
Employee Engagement, UK), Kishore Dash (Associate Professor of Global Studies, Thunderbird School of Global
Management, U.S.), Ganesh Natarajan (CEO, Zensar), and Adil Malia (Group President-HR, Essar Group, India).
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EXHIBIT 1: TATA MOTORS — THE PRODUCT PORTFOLIO
Source: Internal documents provided by the company.
EXHIBIT 2: AUTOMOBILE PRODUCTION TRENDS IN INDIA 2005-2012 (NUMBER OF VEHICLES)
Category
Passenger
Vehicles
Commercial
Vehicles
Three
Wheelers
Two
Wheelers
Grand Total
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
1,777,583
1,838,593
2,357,411
2,982,772
3,146,069
3,233,561
549,006
416,870
567,556
760,735
929,136
831,744
500,660
497,020
619,194
799,553
879,289
839,742
8,026,681
8,419,792
10,512,903
13,349,349
15,427,532
15,721,180
10,853,930
11,172,275
14,057,064
17,892,409
20,382,026
20,626,227
Source: Society of Indian Automobile Manufacturers (SIAM); www.siamindia.com/scripts/production-trend.aspx, accessed
January 30, 2014.
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EXHIBIT 3: TATA MOTORS SHARE PRICE MOVEMENT
Source: “Stock Quotes: Tata Motors Ltd,” The Economic Times, http://economictimes.indiatimes.com/tata-motorsltd/stocks/companyid-12934.cms, accessed January 30, 2014.
EXHIBIT 4: TATA MOTORS ABRIDGED PROFIT & LOSS
Industry :Autom obiles - LCVs/HCVs
(Rs in Millions)
Year
Mar 12(12) Mar 11(12) Mar 10(12) Mar 09(12) Mar 08(12) Mar 07(12) Mar 06(12) Mar 05(12) Mar 04(12) Mar 03(12)
INCOME :
Total Income
1,688,520
1,246,250
957,710
711,270
362,710
330,120
243,280
199,900
138,830
97,830
Raw Materials
1,120,030
808,450
626,440
472,320
243,760
223,730
162,590
134,890
88,080
60,180
Employee Cost
122,980
93,430
89,430
72,970
27,450
24,090
17,780
14,320
10,840
9,040
Other Manufacturing
Expenses
44,230
36,580
27,630
19,870
11,370
13,450
10,450
7,790
5,390
3,630
144,860
109,130
93,070
84,510
18,940
12,980
9,420
7,460
5,480
5,080
107,490
72,780
61,280
75,640
19,340
16,780
10,700
8,920
7,240
6,730
Total Expenditure
1,467,110
1,071,470
858,960
685,780
314,900
287,310
210,050
173,390
117,790
85,030
Operating Profit
221,410
174,780
98,750
25,480
47,810
42,810
33,230
26,520
21,040
12,800
Interest
29,820
23,850
24,650
21,710
9,130
4,650
3,100
2,360
2,280
3,540
Gross Profit
191,590
150,930
74,100
3,780
38,680
38,160
30,140
24,150
18,760
9,260
Depreciation
56,250
46,560
38,870
25,070
7,820
6,880
6,230
5,310
4,260
4,020
Profit Before Tax
135,340
104,370
35,230
-21,290
30,860
31,270
23,900
18,840
14,510
5,240
Tax
22,310
10,310
5,720
4,360
4,720
7,120
4,740
4,050
1,070
250
Net Profit
135,740
92,210
25,170
-24,650
22,350
22,440
17,500
13,940
9,200
2,980
Dividend
EXPENDITURE :
Selling and
Administration
Expenses
Miscellaneous
Expenses
12,810
12,740
8,590
3,120
5,780
5,780
4,980
4,520
2,820
1,280
Equity Dividend (%)
200
200
150
60
150
150
130
125
80
40
Book Value (Unit
Curr.)
104
300
141
113
225
200
159
122
103
69
Source: www.capitaline.com, accessed January 30, 2014.
Page 12
9B14C034
EXHIBIT 5: THE HUMAN CAPITAL STRATEGY
Source: Internal documents provided by the company.
EXHIBIT 6: THE TATA MOTORS ACADEMY VISION
Source: Internal documents provided by the company.
Page 13
9B14C034
EXHIBIT 7: THE SIX DISCIPLINES OF BREAKTHROUGH LEARNING
•
Define business outcomes: To achieve business success through improved performance,
companies invest in training and development.
•
Design the complete experience: Designing the complete experience and approaching training as
an ongoing process rather than just another event. It includes everything that is necessary to improve
performance.
•
Deliver for application: The way in which the training is delivered makes it easier or harder to
transfer work and apply on-the-job.
•
Drive follow through: A program design should include plans that ensure that learning is transferred
and applied on the job otherwise a higher proportion will be wasted as learning scrap. Follow through
is too important to be left to chance.
•
Deploy active support: Relevant, easily available performance support will help them persevere and
succeed in their learning transfer efforts.
•
Document results: Evaluation should be an integral part of every training initiative. Measuring
business outcomes is essential to demonstrate value and to support continuous improvement.
These six disciplines form a chain of value, which is only as strong as its weakest link. The six Ds have
proven to be a valuable mnemonic for reviewing programs and identifying opportunities to strengthen
even already strong initiatives.
Source: Internal documents provided by the company.
EXHIBIT 8: AUTONOVA TX — PARTICIPANT FEEDBACK
CIRO I Scores*
Content
Implementation
Opportunity
to Apply
Trainers
BIW
3.39
3.48
3.43
3.65
Paint & Sealing
3.56
3.53
3.50
3.65
Rubbers &
Plastics
3.55
3.53
3.43
3.74
Surface
Protection
3.43
3.53
3.46
3.63
Craftsmanship
3.52
3.48
3.44
3.63
*Scores are for programs conducted across CVBU locations in March 2013.
Source: Internal documents provided by the company.
Page 14
9B14C034
EXHIBIT 9: AUTONOVA TX — KNOWLEDGE GAIN SYNOPSIS (CONSOLIDATED CVBU)
Pre-test Scenario
Basic
Post-test Scenario
Intermediates
Basic
Intermediates
Experts
5.43% 55.99% 38.58%
Experts
58.53% 38.42% 3.05% autonova TX total
autonova TX total
5.40% 55.94% 38.67%
64.57% 33.45% 1.98%
Craftsmanship
Craftsmanship
1.50% 45.13% 53.37%
48.58% 46.18% 5.25%
Surface Protection
Surface Protection
67.29% 32.71% 0.00%
Rubber & Plastics
4.87% 63.34% 31.79%
Rubber & Plastics
14.58%
80.36% 17.86% 1.79%
70.83% 14.58%
Paint & Sealing
Paint & Sealing
44.83%
5.08% 54.47% 40.46%
50.61% 4.55%
BIW
BIW
0% 20% 40% 60% 80%100%
Source: Internal documents provided by the company.
0% 20% 40% 60% 80% 100%
4%
3%
Pantnagar
33%
40%
59%
88%
77%
37%
32%
68%
95%
65%
67%
Source: Internal documents provided by the company.
3
Yes
3
Yes
YTD Data
5.7
22%
10%
8.5
4%
26%
8%
15%
16%
56%
5.3
12%
9%
60%
4
96%
8.2
59%
68%
63%
Average EG
4.0
4.3
learning days
Average TM
3.5
5.4
learning days
Guiding
Principles of
Parameters
L&D
Alignment
No of LAC meetings held
Alignment Top L&D objectives defined
C Level
% of EGs facilitating
Involvement
Functional and technical
Efficiency
Training
Percentage of half yearly
Efficiency
L&D calendar fulfilled
Percentage of employees
Effectiveness
who accessed TMA
website
Percentage of budget
Appropriate
utilized (excluding
Investment
Dharwad)
34%
67%
4
Lucknow
Pune
CVBU
3
63%
93%
74%
60%
34%
4
Yes
6.5
3.1
Dharwad
(from July
2012)
1
24%
4%
15%
54%
62%
104%
72%
84%
56%
52%
4
Yes
5.3
2.3
Mumbai
CVBU
29%
4%
10%
43%
2
79%
89%
43%
71%
2
Yes
4.5
3.8
1
24%
3%
6%
63%
73%
72%
67%
71%
54%
34%
1
Yes
5.5
4.1
Pune
Sanand
PVBU
15%
3%
16%
65%
69%
3
TRAINING : LAC, BUDGET & DISTRIBUTION OF LEARNING
Dharwad
PantMumbai Pune
Jamshedpur Lucknow
(from
Sanand
nagar
CVBU
PVBU
July'12)
3
Pune
CVBU
72%
71%
45%
65%
37%
3
Yes
4.0
2.5
Mumbai
PVBU
24%
2%
17%
54%
79%
1
Mumbai
PVBU
1
17%
21%
54%
27%
IB
13%
23%
55%
72%
3
Mumbai
Corp
4%
11%
61%
65%
28
TML
74%
74%
77%
63%
40%
1
Yes
4.1
3.5
ERC
81%
58%
78%
54%
64%
1
Yes
2.9
1.6
IB
1 3
Yes Yes
4.6
3.7
28
Yes
9B14C034
70% 27% 73% 68%
68% 68% 77% 70%
83% 73% 80%
65% 54% 55% 61%
36% 48% 32% 37%
2
Yes
2.8
3.5
Mumbai
TML
Corporate
28% 56%
16% 24%
TRAINING : LEARNING DAYS
1%
6%
65%
65%
2
ERC
EXHIBIT 10: TATA MOTORS ACADEMY PERFORMANCE DASHBOARD
Jamshedpur
Parameters
No. of LAC meetings
(2012-13)
% consumption (of total
annual budget)
Functional/ technical
trainings (includes
certifications)
Management trainings
Global leadership
trainings
Mandatory trainings
Training Parameters
Page 15