ROT

MEASUREMENT

Presented BY

AJAY YADAV (03526617516)

SOURABHKANT (03626617156) SUBMITTED TO

Miss. HENA LAL
6TH Semester
(LECTURER)
B.VOC (PDM)
 ROT Introduction

 ROT Formula

ROT Key Components

 Knowledge Generated and Applied

 Investment in Talent

 ROT Measurement

 Conclusion
 ROT INTRODUCTION
For decades, organizations have used key metrics like ROI
(return on investments) and ROA (return on assets) to determine
value. But, in the future, more organizations will use the
measurement of ROT. Current business measurement equations
merely measure the use of financial capital, but ROT measures
the return on human capital.
ROT measures the relationship between people and
productivity.
ROT measures payback from your investment in people.
 ROT Formula

To calculate ROT, you simply divide a valuation for

the knowledge generated and applied by your investment
in Talent.
Two Key Components of ROT

Key
Components
of ROT

Knowledge
Investment in
Generated
Talent
and Applied
 Knowledge Generated and Applied

Knowledge may be described as the “hidden” assets of an organization.

Knowledge measurement relates to several factors that directly relate to
business success—factors such as sales growth, profit growth, customer
satisfaction, service quality, customer loyalty, customer retention, new
product development.

Eg:- within the organization, generating knowledge doesn’t add much

value unless it is used in effective strategy formulation.
 Investment in Talent

Without investment in Talent, an organization becomes stagnant.

Organizations invest in technology, machines, and people. But in the
twenty-first century, the most valuable investment is the investment in
talented people. Management must invest in the right people, whose
capability must match the needs.
 ROT Measurements

ROT measures the payback from

investment in people. ROT shows
whether managers are hiring the
right people and how effectively they
use them to achieve business
success. ROT can be a quantitative or
qualitative measurement, based on
management’s viewpoint.
 Conclusion

High ROT leads to creative workforces, innovations,

smooth processes, continuous product
improvements, and improved communications. It
helps management to be flexible, to capitalize on
opportunities, and to keep pace with the changing
climate. Talented people influence those around
them, and their knowledge is shared over time.
THANK YOU