Tata Motor - Case Study Example

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TATA Motor Limited investing in Tata Academy expects a return from the academy either directly or indirectly. According to…
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number TATA ACADEMY initiative Any business organization that spends its resources it expects a return on its investment, regardless of the type of investment and possible outcome. TATA Motor Limited investing in Tata Academy expects a return from the academy either directly or indirectly. According to (Friedlob and Franklin, 57), the return from the investment is a verification of value of money is being recognized. Tata University was initiated in the early year 2011 and in that year the net profit jumped from Rupees 92,210,000,000 to Rupees 135,740,000,000 in 2012.
Return on investment= ((income-cost of investment)/cost of investment)* 100
(43,530,000,000/25,170,000,000)* 100= 173%
From the investment of TATA University, TATA Limited was able to have a return of 73%. This means in each Rupee TML used it gained Rupee 0.73.
TATA University was able to increase the efficiency and effectiveness of the employees this can be reflected in the pre and post test scenario on knowledge gain. The Academy enhanced the skills of employees performing craftsmanship, surface protection, rubber and plastics, paint and sealing and BIW. Prior the academy, most of the employees knew basic amounting to 58.53%, intermediates38.42%, and those who were experts amounted to 3.05%. One year after its launch there was tremendous change employees who were expert rose to 38.58%, intermediate employees rose to 55.99% while basic employees dropped to 5.43%. The enhancement of skills cannot go unnoticed on the number and quality of automobiles TML manufactured in that year. In the year 2011-2012 the number of automobiles manufactured in India rose from 17,892,409 to 20,382,026 units. The increased can be based on the expertise imparted by TATA University. With these improvements in the operations of TML then Mr. Bector will be at ease explaining to Chief Human Resource Officer.
Works Cited
Friedlob, G. Thomas, and Franklin James Plewa. Understanding Return on Investment. New York: Wiley, 1996 Read More
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