13491431 Project on Hrm Strategies of Maruti Udyog Limited

7/31/2019 13491431 Project on Hrm Strategies of Maruti Udyog Limited

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LOTUSINSTITUTEOFMANAGEMENT

PROJECT

OF

HUMAN RESOURCE MANAGEMENT

ON

MARUTI UDYOG LIMITED

Submitted to Submitted by:

Mr.Gaurav Saxena TANVI AGARWAL

HR FACULTY PGDM_08_56


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ACKNOWLEDGEMENT

The goal was fixed, moves were calculated and I moved with full of enthusiasm,

vigor and keen interest.

There was a time when it proved to be on uphill task, the goal seeming beyond my

reach. But as work progressed my determination and will power grew stronger and

completion of this work further confined my belief that, WHERE THERE IS A

WILL THEREIS A WAY.

Its a sheer pleasure for me to state with candidly that this entire project is a

heartily attempt to reach maximum accuracy. I therefore take this opportunity top

express my utmost gratitude and indebtness to all who have contributed in some

way.

I highly express my sincere thanks toMR.(incharge) who helped me throughout

the project.

Last but not least I would like to pleasure a word of appreciation to my family &

friends who supported & helped me to make this project a success.


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CONTENTS

1) Acknowledgement

2) Objective of the study

3) Organization structure

4) Quick facts of MUL

5) Some successful stories of MUL

6) Vision ,values

7) Division and Departments

8) Organization chart

9) HR vision

10) HR initiative

11) Culture building initiative since Inception

12) Focus of effective management process since Inception

13) Induction and Succession

14) Matter usually discussed in the Induction program of MUL

15) Induction program

16) Meaning of Recruitment

17) Process of recruitment

a) for a particular city

b) for a particular dealership

c) depending on the availability of infrastructure

d) for a particular qualified person

18) Selection meaning

19) Selection process of MUL

20) Meaning of training


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21) Importance of training

22) Sales and training department of MUL

23) Training process for sales executives

24) Training process for sales manager/general manager/branch manager

25) Training and Development of Dealers sales executives

26) Performance Appraisal in MUL

27) Major findings

28) Conclusion

29)Appendices

30) Bibliography

31) webliography


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Objectives

To enhance my knowledge about Recruitment and Selection. To enhance my knowledge about Training & Development.

To convert my theoretical knowledge into practical knowledge.

To prepare myself as a H.R. person who can easily identify the training needthrough his experience which is very essential quality of a H.R. Person & for

the organization as well.


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Organization structure

DIVISION HEADS

1 BOARD OF DIRECTORS

2 DIVISION HEADS

3 DEPARTMENT HEADS


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FACTS OF MARUTI UDYOG LIMITED

Quick Facts

Year of Establishment February 1981

Vision

"The Leader in The Indian Automobile Industry,

Creating Customer Delight and Shareholder's

Wealth; A pride of India."

Industry Automotive - Four Wheelers

Listings & its codes BSE - Code: 532500

NSE - Code: MARUTI

Bloomberg: MUL@IN

Reuters: MRTI.BO

Joint Venture With Suzuki Motor Company, now Suzuki Motor

Corporation, of Japan in October 1982.

Registered & Corporate

Office

11th Floor, Jeevan Prakash

25, Kasturba Gandhi Marg

New Delhi - 110001, India

Tel.: +(91)-(11)-23316831 (10 lines)

Fax: +(91)-(11)-23318754, 23713575

Telex: 031-65029 MUL IN

Works Palam Gurgaon Road

Gurgaon -122015

Haryana, India

Tel.: +(91)-(124)-2340341-5, 2341341-5
http://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://www.surfindia.com/automobile/suzuki-motor-corporation.html


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Website http://www.marutiudyog.com/

Segment and Brands

Products Brands

Four Wheelers Maruti 800 Maruti Alto Maruti Baleno

Maruti Esteem Maruti Grand Vitara XL-7 Maruti Gypsy King

Maruti Omni Maruti Suzuki SX4 Maruti Swift

Maruti Versa Maruti Vitara Maruti Wagon-R

Maruti Zen

Awards & Accolades

2005 Number one in JD Power SSI for the second consecutiveyear.

Number one in JD Power CSI for the sixth time in a row -the only car to win it so many times.

M800, WagonR and Swift topped their segments in theTNS Total Customer Satisfaction Study Leadership in the

JD Power Initial Quality Study - Alto number one in its

segment for the 2nd time in a row, Esteem number one in

its segment for the 3rd year in a row, Swift number one in

the premium compact segment.

WagonR and Esteem top their segments in the JD PowerAPEAL study.

TNS ranks Maruti 4th in the Corporate Reputation
http://www.marutiudyog.com/http://www.marutiudyog.com/http://www.surfindia.com/automobile/maruti-800.htmlhttp://www.surfindia.com/automobile/maruti-800.htmlhttp://www.surfindia.com/automobile/maruti-alto.htmlhttp://www.surfindia.com/automobile/maruti-alto.htmlhttp://www.surfindia.com/automobile/maruti-baleno.htmlhttp://www.surfindia.com/automobile/maruti-baleno.htmlhttp://www.surfindia.com/automobile/maruti-grand-vitara.htmlhttp://www.surfindia.com/automobile/maruti-grand-vitara.htmlhttp://www.surfindia.com/automobile/maruti-gypsy-king.htmlhttp://www.surfindia.com/automobile/maruti-gypsy-king.htmlhttp://www.surfindia.com/automobile/maruti-suzuki-sx4.htmlhttp://www.surfindia.com/automobile/maruti-suzuki-sx4.htmlhttp://www.surfindia.com/automobile/maruti-swift.htmlhttp://www.surfindia.com/automobile/maruti-swift.htmlhttp://www.surfindia.com/automobile/maruti-versa.htmlhttp://www.surfindia.com/automobile/maruti-wagonr.htmlhttp://www.surfindia.com/automobile/maruti-zen.htmlhttp://www.surfindia.com/automobile/maruti-zen.htmlhttp://www.surfindia.com/automobile/maruti-wagonr.htmlhttp://www.surfindia.com/automobile/maruti-versa.htmlhttp://www.surfindia.com/automobile/maruti-swift.htmlhttp://www.surfindia.com/automobile/maruti-suzuki-sx4.htmlhttp://www.surfindia.com/automobile/maruti-gypsy-king.htmlhttp://www.surfindia.com/automobile/maruti-grand-vitara.htmlhttp://www.surfindia.com/automobile/maruti-baleno.htmlhttp://www.surfindia.com/automobile/maruti-alto.htmlhttp://www.surfindia.com/automobile/maruti-800.htmlhttp://www.marutiudyog.com/


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Strength (CSR) study (#1 in Auto sector)-Feb 05.

Maruti bagged the "Manufacturer of the year" award fromAutocar-CNBC (2nd time in a row)-Feb 05.

First Indian car manufacturer to reach 5 million vehiclessales.

Business World ranks Maruti among top five mostrespected companies in India-Oct 04.

Maruti ranked among top ten (Rank7) greenest companiesin India by Business Today - Sep '04

2004 Maruti Suzuki was No. 1 in Customer satisfaction, No. 1in Sales Satisfaction No.1 in Product Quality (Esteem and

Alto) and No. 1 in Product Appeal (Esteem and Wagon

R).

No. 1 in Total Customer Satisfaction (Maruti 800, Zen andAlto).

Business World ranked us among the country's five mostrespected companies.

Business World ranked us the country's most respectedautomobile company.

Voted Manufacturer of the year by CNBC. Voted one of India's Greenest Companies by Business

Today-AC Nielson ORG-MARG.


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HR VISION

Lead and Facilitate continuous change towards organizational excellence create a

learning and vibrant organization with high sense of pride amongst its members.

HR Initiatives

Prepare MUL Strategic Business Plan-2000-2003; To achieve the Vision &Goal

Improve the performance Appraisal system - its process, skill & usage Introduce a Potential Appraisal System Improvements in internal & external Training & its effective utilization.

Training need identification

Systematic career planning ; Job Rotation ; Empowerment; Job enrichment Periodic communication meeting at various level; Roll out of Vision Raise cost consciousness for cost control and reduction Exposure on Brand Strategy to all non- marketing staff Retention of Talent


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Culture building initiative since inception

Japanese Management philosophy of Team Spirit

Common uniform Open office Common Canteen Open OfficeEasy accessibility, Speedy Communication and decision making Morning Meetings

Morning Exercises


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FOCUS OF EFFECTIVE MANAGEMENT PROCESS SINCE

INCEPTION

Management Committee Meetingsevery Tuesday Single unaffiliated Union Excellent Industrial Relation scenario No loss of monday due to strike/lockout etc. in past 5 yrs. Maruti Udyog Sahyog Samitia forum for non unionized staff. Declared organization structure Workers (Technical / Assistant.),

Supervisors, Executives, Managers

Top Driven HRMD is also Director HR HRs role ofa facilitator Line managers as HR Managers Year of the Customer HR Internal Customer Focus

Focus on Internal & External Customer.


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INDUCTION AND SUCCESSION

Transparent Recruitment & Selection process Recruitment on an All India Basisno sector or region specific. EngineersCAMPUS - IITs/RECs/Rorkee /HBTI ALL-INDIA TEST MBAsIIMs/XLRI CAs - Rank Holders India Exam & Apprenticeship In MUL Lateral Entry for Experienced Professionals.

MATTER USUALLY DISCUSSED IN THE MARUTI

INDUCTION

Overview of Maruti and Suzuki Building understanding of the car market in India and various segments Understand MULs product range and positioning in each segment Understanding the basics in the automobile industry Role of financing as a sales tool and the various financing options available Ensuring personal effectiveness Understand the attributes of a good DSE Overview of each Maruti model and the MUL Advantage Overview of the selling process and how to uncover needs of a customer to

do need based selling


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MEANING OF RECRUITMENT

It is the process of searching the potential candidate and offers him or her

the job. It is positive in nature in the Indian context. Process of identifying and

hiring best-qualified candidate (from within or outside of an organization) for a job

vacancy, in a most timely and cost effective manner

RECRUITMENT PROCESS OF MARUTI UDYOG LTD

The recruiting procedure at a Maruti dealership is as follows:

For a particular city

RO will consolidate requirement of dealerships ofthe region.

On this basis, a joint advertisement would bereleased in that city

Applicants would be asked to appear for the test.

The test would be available both on CD and as apaper and pen test. (The CD is available with theRO regional officer)

RO person should be present during test

The Candidates who pass the test will be shortlisted for interview
http://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/candidate.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/job.htmlhttp://www.businessdictionary.com/definition/cost.htmlhttp://www.businessdictionary.com/definition/effective.htmlhttp://www.businessdictionary.com/definition/effective.htmlhttp://www.businessdictionary.com/definition/cost.htmlhttp://www.businessdictionary.com/definition/job.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/candidate.htmlhttp://www.businessdictionary.com/definition/process.html


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For a particular Dealership

The dealership should release an advertisement.

Test would be conductedfor applicants on a fixed

date.

Test could be conducted whena RO person visits the

dealership.

The test could also beheld for any walk-in

candidate.

Dates etc to be fixed incoordination with therespective RO.

The Candidates who pass the testwill be short listed for interview.


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Depending on availability of infrastructure

Interview of shortlisted/ qualified personnel

The software wouldautomatically generatethe lists of qualifiedcandidates

1

If conducted physically,the answers could be fedinto the computer andthe results would comeout immediately.

2

1

Interview tobeconducted

jointly by ROpersonneland thedealershipexecutive.

2

RO will thenconsolidatethe list ofcandidatesrecruited inthe regionand send itto the SalesTrainingDepartmentfor

registration.

3

AnInductionprogram willthen befixed for theregion.

4

AfterInduction,candidate iseligible to

join thedealership.


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MEANING OF SELECTION

It is the process of searching the potential candidate. It is negative in nature in the

Indian context. But it is positive in the US context.

Steps in Selection Process of Maruti udyog ltd

Selection process consists of a series of steps, at each stage, facts may come

light which may lead to the rejection of the applicant. It is a series of successive

hurdles or barriers which an applicant must cross. These hurdles or screens

are designed to eliminate an unqualified candidate at any point in the

selection process There is no standards selection procedure to be used

in all organizations or for all jobs. The complexity of selection

procedures increases with the level and responsibility of the position to be

flled.

.

FOLLOWUP

INDUCTION

EMPLOYMENTTEST

FINAL APPROVAL

REFERENCE TEST

MEDICAL TEST

EMPLOYMENT INTERVIEW

SELECTION TEST

Application Form

Preliminary Interview (screening applications)


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1} Preliminary Interview (screening applications)

Initial screening is done to weed out totally undesirable/unqualified

candidates at the outset. It is essentially a sorting process in which prospective

candidates are given the necessary information about the nature of the

job and the organization, at the same time, the necessary information is

also elicited from the candidates about their education, skills, experience,

salary expected and the like. It helps to determine whether it is

worthwhile for a candidate to fill up the application form.

2} Application Form

Application form is a traditional and widely used device for collecting

information from candidates. It should provide all the information relevant to

selection, where reference for caste, religion, birth place, may be avoided as it may

be regarded an evidence of discrimination.

3}Selection Test

Psychological tests are being increasingly used in employee selection,

where a test may involve some aspect of an individuals attitudes, behavior and

performance. Tests are useful when the number of applicants is large, as at best it

reveals that the candidates who scored above the predetermined cutoff points are

likely to be more successful than those scoring below the cutoff point.

4} Employment Interview

Interview is an essential element of selection and no selection


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procedure is complete without one or more personal interviews,

where the information collected through application letter or

application forms and tests can be cross-checked in the interview,

where candidates demonstrates their capabilities and strength in

relevant to their academic credentials. selection in interview serves three

purposes:

a) obtaining information about the background, education, training,

work history and interests of candidate

b) giving information to candidates about the company, the specific

job and human resource policies; and

c) establishing a friendly relationship between the employer and the

candidate so as to motivate the successful applicant to work for

the organization.

However, in practice interview becomes a one-sided affair serving

only the first purpose.

5} Medical Examination

Applicants who have crossed the above stages are sent for a


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physical examination either to the companys physician or to

a medical officer approved for the purpose. Such examination serves

the following purposes:-

a) It determines whether the candidate is physically fit to

perform the job, where those who are physically unfit are

rejected.

b) It reveals existing disabilities and provides a record of the

employees health at the time of selection. This record will

help in settling companys liability under the workmen

compensation Act for claim for any injury.

c) It prevents the employment of people suffering from

contagious diseases.

d) It identifies candidates who are otherwise suitable but require

specific jobs due to physical handicaps and allergies.

6} Reference Checks

The applicant is asked to mention in his application form, the names


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and addresses of two or more persons who know him well. These may

be his previous employers, heads of education institutions or public

figures. These people are requested to provide their frank

opinion about the candidate without incurring any liability. In

government and public sector organizations, candidates are generally

required to route their applications

through their present employers, if any. The opinion of referees can

be useful in judging the future behavior and performance of candidate,

but is not advisable to rely exclusively on the referees because

they are generally biased in favor of the candidate.

(a) Most candidates are employed at the time of their application, anddo not wish their employers to know they are looking elsewhere.

(b) Because of(a) a prospective employer would be breaking a confidence if

he or she asked for a reference before an offer of a job

had been made and accepted.

(c) By the time an offer has been accepted, selection is over and the

reference is too late to affect it.

(d) An offer may be made subject to satisfactory references, but as

most references are received after the candidate has started work,


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they can only be used to warn managers of possible faults in the

candidate which in serious cases may eventually lead to warnings

followed by dismissal.

(e) Employers giving references are usually extremely cautious; many

references merely state the job title, the date of employment, and

reasons for leaving.

(f) References are occasionally biased, giving a good reference

to hasten an employees departure or a poor one because of a grudge.

Therefore, the best references are obtained in person, where there

is a chance to see whether nonverbal behavior matches what is said. If

such a meeting cannot be arranged, telephoning is the next

best alternative.

7} Final Approval

In most of the organizations, selection process is carried out by the

human resource department, where the decisions of the department are

recommendatory. The candidates shortlisted by the department arefinally approved by the executive of concerned departments or units.

8} Employment.


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Employment is offered in the form of an appointment letter

mentioning the post, the rank, the salary grade, the date by which the

candidate should join and other terms and conditions in brief. In

some organizations, a contract of service is signed by both the candidate

and the representative of the organization. It is at this point where a

selected applicant is handled with a letter of offer for a job:

a) The wage or salary offered must not only be appropriate to the job

and attractive to the candidate but consistent with the earnings of

present employees.

b) The job must be named and any special conditions stated,

for instance, the first year you will be under training at the head office,

then you will be transferred to up-country branches.

c) The candidate must know the essential conditions of employment,

such as hours of work, holidays, bonuses and fringe benefits.

d) Any provisos must be clearly stated, for example, your employmentwill be subject to satisfactory references and medical examinations.

Appointment is generally made on probation of one or two years, where

upon satisfactory performance during this period, the candidate is finally


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confirmed in the job on the terms employed with, whether permanent or

contractual basis.

9} Induction.

The process of receiving employees when they begin work,

introducing them to the company and to their colleagues, and informing

them of the activities, customs and traditions of the company is

called induction. At this juncture various induction

courses are done to new recruit in order to acclimatize them with the

new working environment.

10} Followup (Evaluation)

All selection should be validated by follow-up, it a stage where

employee is asked how he or she feels about progress to date

and the workers immediate supervisor is asked for

comments, which are compared with the notes taken at the selection

interview. If a follow-up is unfavourable it is probable that selection

has been a fault; the whole process from job specification to interview isthen reviewed to see if a better choice can be made next time.


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Training

Maruti arranges the training at several intervals. The training is

mandatory for all the employees. The training schedule of all employees

is maintained by the HR manager.

EDP

In the EDP Department following are managed:

Post Sale Process is managed.Sales Analysis is done.Backup is taken time to time.

IMPORTANCE OF TRAINING

Optimum Utilization of Human ResourcesTraining and Development

helps in optimizing the utilization of human resource that further helps

the employee to achieve the organizational goals as well as their

individual goals.

Development of Human ResourcesTraining and Development helps


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to provide an opportunity and broad structure for the development of

human resources technical and behavioral skills in an organization. It

also helps the employees in attaining personal growth.

Development of skills of employeesTraining and Development helps

in increasing the job knowledge and skills of employees at each level. It

helps to expand the horizons of human intellect and an overall

personality of the employees

.

ProductivityTraining and Development helps in increasing the

productivity of the employees that helps the organization further to

achieve its long-term goal.

Team spiritTraining and Development helps in inculcating the sense

of team work, team spirit, and inter-team collaborations. It helps in

inculcating the zeal to learn within the employees.

Organization CultureTraining and Development helps to develop

and improve the organizational health culture and effectiveness. It helps

in creating the learning culture within the organization.

Organization ClimateTraining and Development helps building the

positive perception and feeling about the organization. The employees


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get these feelings from leaders, subordinates, and peers.

QualityTraining and Development helps in improving upon the

quality of work and work-life.

Healthy work-environmentTraining and Development helps in

creating the healthy working environment. It helps to build good

employee, relationship so that individual goals aligns with

organizational goal.

Health and SafetyTraining and Development helps in improving the

health and safety of the organization thus preventing obsolescence.

MoraleTraining and Development helps in improving the morale of

the work force.

ImageTraining and Development helps in creating a better corporate

image.

ProfitabilityTraining and Development leads to improvedprofitability and more positive attitudes towards profit orientation.

Training and Development aids in organizational development i.e.


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Organization gets more effective decision making and problem solving.

It helps in understanding and carrying out organizational policies

Training and Development helps in developing leadership skills,

motivation, loyalty, better attitudes, and other aspects that successful

workers and managers usually display.

Training Details

The strength of any organization is its manpower. Each organization

would like to have executives who are well trained so that they can be

more productive. The vehicle manufacturers conduct several trainings so

that they can achieve their goals. In the Training master form, you can

enter the information about the training, which have been conducted

during a particular time period. We are also maintaining the information

regarding the attendance of the executives in a specific training. That is,

how many executives out of the given list have attended the training?

With the help of these training details we are generating various MIS

reports. The details provided here can help the management to find out

an efficient person for a special task. Searching facility is also available,so you can find out the total information of a particular training with just

one click over there.


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SALES AND TRAINING DEPARTMENT OF MARUTI UDYOG

Vision

Equipping MUL and Dealer Sales Fraternity with the requisite mindset,

knowledge and skills, and enhance the business value of our associates

to sustain our position of leadership and build customer loyalty to MUL

Objectives

To ensure multiple knowledge and skill development of DSEsrequired selling cars and handling competition

Consultative Selling Approach. Continuous Feedback and Performance monitoring. To employ training as a tool to achieve customer delight and

customer loyalty

Make DSEs as Car Advisors and be a single window interface withthe customer

The various training Programs are as follows:


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TRAINING PROCESS For Sales Executives:

INDUCTION

PRODUCT

PROGRA

SELLINGSKILLS

CUSTOMER CARE

AVISORSFOR LIFEPROGRA

M

PROGRAM FOR

DEALINGSALES

EXECUTIV

ESHANDLIN

GCORPORA

TE ANDINSTITUTI

ONALSALES

DELIVERYPROCESS


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1.Induction - Aims to provide an understanding of the automobile

industry, MUL, its policies and products. (2 Days)

2.Product programs- Imparts complete knowledge on MUL product vis-

-vis competition. Various programs are Segment A1, Segment A2,

Segment A3 and Versa, Grand Vitara XL 7. (2 Days)

3.Selling Skills/ Consultative Selling Process- Enables executives to

understand customer needs, sales processes etc and enables them to

apply learning in actual selling. (2 Days)

4. Customer care - A positive attitude and the ability to motivate oneself

is a pre-requisite for excellent performance in any work area. The

program aims at helping one to build a positive attitude and better

interpersonal skills and to enable better customer handling. (3 Days)

5.Advisor for life program: In this changed competitive environment the

role of Dealer Sales Executive is seen more than a person who is selling

cars to the customers. He is expected to be the Customer's ' Car

Advisor for life' and make that one-time customer into his 'Customerfor life'. He has to be Single Window Interface with his customers on

all matters related to cars i.e. finance, insurance, Extended warranty,

MGP, MGA, service etc. (2 Days)This training trains the Sales


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Executives on the concept of 'Advisor for Life' and helps them become a

Single Point Contact with the customer.

6.Program for Dealer sales Executives handling Corporate and

Institutional Sales. (2 Days)

7.Delivery Process : The training program on 'Delivery Process' has

been developed as delivery now has the maximum weight age in the new

factor structure for SSI. It not only focuses on the processes to be

followed for delivery but also makes the DSE realize the importance of a

good delivery (delivery is not the end of a sale but a beginning of a

relationship)


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Training process for Sales Managers /General mangers/ Branch

Heads

1.Dealership Management Program: for second-generation dealers, and

GMs and RO executives on how to manage entire Dealership

Operations. Financial Management, staff management, motivation, time

management, planning are covered. (2 Days)

DEALERSHIPMANAGEMENTPROGRAM

SALES

MANAGERS/TEAMLEADERS

PROGRAM

BRANCHMANAGERPROGRAM


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2.Sales Managers/Team Leaders Program: The Training covers issues

like Sales Management (target setting and achievement, enquiry

management, resource and time management etc), Supervisory skills

(Performance management, leadership etc), Practical Coaching skills,

knowledge of Maruti Finance, Maruti Insurance Extended warranty,

MGA, True Value etc and Car Advisor for life concept. (2 Days)

3.Branch Managers Program: Many of our dealers have multiple outlets.

While the owners sit at any one outlet and control the others from there,

different branch heads that manages the day-to-day operations of the

outlets manages the other outlets. In order to ensure that they run their

respective outlets effectively we train them on the various aspects of

dealership.

The training covers topics like -Making a business plan (for the

dealership as a whole- Not only for sales but also for other revenue

streams), Fundamentals of DBP, HR Management, Team Building and

Supervision skills, Ability to motivate the team and get a buy in on the

business plan, Time management/Prioritizing etc

Training and Development of dealer Sales Executives


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Development and Updation of Training Modules

Training and

Development of dealerSales Executives

CONDUCTINGTRAINING

Development andUpdation of Training

Modules


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The Sales Training Department develops new modules along

with training agencies based on market requirements, specific

needs identified and feedback received

1. Conducting Training

Annual Training Calendar is fixed based on:

Number of Sales Executives in the sales networkTraining path requirement of Sales ExecutivesReview of training programs done in the previous yearMarket Share/ Market situation/Focus areas and new product

launches

Training conducted regionally based on fixed monthly calendar. Training Path /Norms for all Dealer Sales persons are as follows:

All Dealer Sales Executives need to attend Induction Trainingbefore or within a month of joining the dealership (depending

on when the program is scheduled in the region)

After Induction then the Sales executives needs to attend asegment B program.


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They also should attend Car Advisor for life Program whichtrains him to be a one point contact with the customers handling

all his car related needs like finance, insurance, extended

warranty, MGA etc and how to develop and maintain

relationship with customers

After gaining experience, he can attend other courses likesegment C etc.

2. Monitoring and feedback:Monitoring and Evaluation of Sales force is done on a continuous

basis. Pre-tests and post-tests are conducted during training. Feedback

is taken from participants on trainers and from trainers on

participants. Monitoring is also done through tests and audits at the

dealerships.

3. Communication:

Sales Training Department sends monthly Newsletter CreatingWinners to all DSEs. It is a monthly communication

containing articles on various aspects of product knowledge,

selling skills, market etc .It is a forum for effective


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communication of new ideas and strategies. It also provides

two-way communication.

An Annual Selling Skill Contest is organized to test the sellingskills of the sales executives. It is conducted at regional levels

and culminates in an all India level contest.

Recruitment of Sales Executives:


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SAT has developed a CD based Test for recruitment as a part of

Maruti Recruitment System (MARS). The test checks sales aptitude

and reasoning and is a pre- interview shortlist device. It helps

dealers recruit the right profile of people for their dealership. The

Regional Office will be involved throughout the implementation of

the MARS while recruiting Sales Persons. All Sales Executives need

to be registered with Maruti after recruitment through extranet. A

unique Maruti Suzuki Personal Identification Number (MSPIN) is

being issued which the DSEs have to remember and use in allcommunications like Trainings, reward schemes etc

Maruti adopts `360 degree' appraisal system

Employee to be evaluated not just by superiors, but also by peers,

subordinates

It would seem that there is no

corporate human resources policy that has not had its share of

controversies for being biased. With an increasing number of qualitative

factors that affect employees at the workplace, the performance


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appraisal process to make it as fair as possible has been the dream of

every HR manager.

And now qualitative factors are not just at play in the services sector, but

also in manufacturing. With cubicles giving way to open offices, the top-

down approach to employee performance appraisal is also on its way

out.

One company that has set itself on course to further demonstrating and

opening up its employee evaluation process is car market leader Maruti

Udyog.

The company has introduced a unique 360-degree feedback system,

starting with its senior leadership. The new system has been co-

developed with Ernst & Young and has been put in place recently.

Under the 360-degree feedback system, the employee is rated not just by

his superiors, but also by his peers and subordinates.

"We are starting the 360-degree feedback process with employees in the

top management such as chief general managers and general managers,

whose performance will now be assessed based on feedback from their

peers and junior management employees within the same department.

Till last year, their performance was being appraised only by the

Directors and the Managing Director," says Maruti's Chief General

Manager (HR), Mr S.Y. Siddiqui.


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Ernst & Young, in consultation with Maruti, has listed a set of

leadership competencies that are expected in a general manager. Based

on that, it has prepared a questionnaire to which peers and subordinates

can respond online.

Although acknowledged as an effective tool for leadership development

in the West, Indian companies have been shy of introducing such a

feedback system for fear of disturbing traditional hierarchical structures.

HR consultants feel that the critical issues in implementing such a

system include assuring respondents that their feedback will remain

confidential and convincing the person receiving the feedback that this is

a development tool and not an appraisal tool. Maruti has handled this by

getting E&Y and other consultants to make detailed presentations to the

senior management personnel before the process got under way. The

company has a committee of general managers, called Human Resource

Inter Divisional Committee (HRIDC), which is consulted on all major

HR issues.

The initiative has been unveiled with an e-mail by Maruti's Managing

Director, Mr Jagdish Khattar, asking people to support the online

questionnaire process. The 360-degree feedback system will also include

a self-appraisal by the general manager. At the end of the process, he can

compare his self-appraisal with the assessment of his subordinates and

peers.


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FINDINGS

1)They treat all the employees equally2)They tries there best to increase the efficiency of the employees by

providing them different motivation programs.

3)They make new recruits aware about the company and workingpattern of the company.

4)They focus on each and every department of the organization.5)Having different recruitment process for different departments of

the organization.

6)They provide different types of training to the differentdepartments according to the need of the people.

7)They take feedback from there employees on regular basis.8)They adopts 360 degree method of performance appraisal for there

employees.


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CONCLUSION

While preparing this project report i learnt many concepts of

Human resource management like recruitment, selection,

training, motivation, etc.

I have done this project with reference to MARUTI UDYOG

LIMITED & i find out that many facts while working on this

project which has added a valuable experience in my life.


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APPENDICES

THE STATEMENTS MADE BY CHIEF GENERAL MANAGER OF

MARUTI UDYOG LIMITED IN THE NEWS

Maruti Udyog, India's largest carmaker has been making key

investments in several human resource initiatives. The company is

currently working on a five-year people-oriented strategy, apart from

initiatives that are being taken to make young recruits understand the


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philosophy, culture and best practices within the company. Special

emphasis has also been placed on training.

The company believes it is worthwhile being in a position, where people

are in fact, envious of the corporate world outside and its employees in

high demand, rather than merely having high retention levels. We spoke

to Chief General Manager (Human Resources Development), SY

Siddiqui on a host of HR related issues.

As the head of HR in the country's largest automaker, what are your

main challenges?

For us there are two to three key areas. One of the biggest is to bring

about a change, where we are acceptable to a dynamic global businessscenario. The second big challenge is to bring in the best HR practices,

policies and systems from the global perspectives, while being attuned to

local requirements. We, at Maruti, are very clear that we need to have a

proper balance of global and local best practices.

The third big challenge is about the young people, on whom our future is

going to depend. They are very strong in terms of career aspirations.

Understanding their aspirations and blending that with the company's

aspirations, where talent management and retention comes in, constitutes


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this challenge.

Young people today do have high expectations, How do you address

that?

They are competent and very confident. So, obviously they are strong in

their career aspirations. What earlier was a benchmark of say 15-20

years, today's younger crowd wants to achieve in, may be 10 years. They

are very aggressive and patience is almost irrelevant to them. We are

consciously aware of such a change. For Maruti, which is expanding

rapidly and has been in the leadership position for over two decades,

these are big challenges. You will have competent and confident people

and as a company, one has to keep them happy and engaged.

How do you do it in Maruti?

It is not a single factor theory. It is a kind of policy perspective on which

a whole lot of initiatives have come into play. One most important things

we do when we do on campus recruit is to make sure we offer a

relationship. This is a relationship that is built on confidence and a waythat signifies that we care.

In our case, the induction phase is the most critical. We do several things


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to make them feel special. We even pick them up from railway stations

or airports, from wherever they are coming in. There will be very senior

people to receive them at these places. That is the first touch.

Secondly, most people find it difficult to find a place to stay. They will

be put up in a hostel for a year supported by the company. They should

have all the facilities, including food, Internet, phone, doctor,

gymnasium and should be close to the factory. Even the security will be

managed by us, and not the owner.

Third, the Managing Director of the company throws a welcome dinner

party for the new recruits. While it gives them an opportunity to interact

with the MD, it also acts as a tremendous

confidence booster for young people. The other important initiative is

that of a buddy and a mentor. A three-year-old employee in the company

will be a buddy to a new employee for the first three months.

Is this buddy system unique to Maruti? How did this evolve?

Yes, this is unique to Maruti. It evolved from the feedback we have been

receiving for the past 4-5 years from the youngsters. The buddy will

always be a link between us and the boys for the first three months.


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After the completion of three months, a senior person of the level of a

functional head becomes the mentor for three to four youngsters, who

can guide them on matters related to their progress. The mentor has to

prepare the youngster to settle into an executive role in Maruti. We

began this initiative three years ago and the feedback has been very

good.

Is this system helping you improve your retention level?

I am not looking at everything to give a statistical result. I am looking at

building relationships and establishing a bond between employees and

this more than just typical numbers. We at Maruti, led by our MD look

at the qualitative aspects of our inputs rather than quantitative. The

number of man-days is not important, but quality of training is more

important. Moreover, post-training feedback is important.

We are clear in our minds that this is helping retention. In many

corporations, workers in the first three to six months tend to be the

highest casualties. Youngsters are mostly unsure of a lot of things - like

all typical youngsters- and are often need help to take the correctdecisions.

We also have initiatives for employees who have spent two to three


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years in the company. Instead of making the Human Resources

department the sole policy maker, we have decentralized HR into

different people forums. We have tremendous support coming from

corporate communications, for example, in order to strengthen internal

communications. We have a senior level HR consulting group and a

junior level HR consulting group. Policies are formulated based on the

interactions with these two groups and we try to give shape to a policy

that can impact lives.

We also have a cross-functional team of young managers, who come to

say how that particular policy can be put in perspective. People

orientation has got top priority in the past seven years or so.

What is Maruti's training philosophy?

We see to investment in both our business and people. We have a

training budget, which stands at about Rs 12 crores today. Recently, we

took a decision to establish a world-class Maruti training centre in two

years' time. This might come up at the Manesar facility on a 6-8 acre

plot. The idea has been conceptually cleared and we are in the finalphase of planning. This centre will have a kind of infrastructure for a

central umbrella for training but will operate in a decentralized manner.

We will have a residential facility, an e-learning facility and will look at


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perspectives of developing our own technician level guys for which

campus recruitment can take place.

How do you normally go about recruiting them?

At the moment, we are going to different ITIs. We also give preference

to people who may have worked with us temporarily in the past three

years or may have done their apprenticeship with us. They stand to gain

a slight preference over fresh ITI graduates. There will also be a slight

preference for those from Haryana.

Has there ever been an issue with finding the right quality of

people?

No, we have never faced such a situation. One is, we have professional

enablers in place and have relationships with engineering colleges, good

MBA institutes, ITIs and external environment. We also participate in

various kinds of activities they organize in their institutes. So, we

involve ourselves into relationship building all through the year.

Can you describe any specific initiative you are taking this year?

One initiative is to empower young people in terms of free and frank


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feedback to their seniors, to the people who manage them. We have a

360 degree feedback exercise. Each senior person gets a sample

feedback from a group of 12-14 people, out of which 5-6 would be

juniors, 5-6 colleagues and 2-3 their superiors. This is done through an

online process to maintain confidentiality. The person also evaluates

himself. After that, profiles would emerge. Based on this, there would be

aggregate profiles versus self-profiles. These are on defined leadership

competencies. Structured designs emerge. The plan is to have a

workshop where we give them the methods to initiate self-development

action.

Would this be done in-house?

For the first year, we have picked up Ernst & Young to do it for us.

There has to be a feeling of confidentiality. We can start doing it

ourselves once the system mature.

Have you taken initiatives from Suzuki of Japan and adapted them for

India?

We used to get graduate engineers and place them in various functional

divisions as per the manpower requirement of that particular functional

division. However, there was a gap in the expectations of the young guy


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as to where he wanted to be placed. This could lead to de-motivation,

lack of interest and in fact, the person may leave the organization.

At Suzuki Japan, young recruits are never put in the shop floor

straightaway to handle production and workers because this is a job they

would be least fit to do with their level of maturity. On the other hand,

they would be fit to do technical related work because they would have

just come out of engineering colleges. They come with fresh minds and

they are given fresh projects. After six months, they assess the guy and

then decide where he is best suited to work.

They also suggested a routing as to how a person is put into an area first

and then gradually inducted into other areas. This routing process was

professionally thought about after several years of experiments. We

adopted these changes in 2005. Earlier, we used to put all fresh recruits

in the shop floor. The worst feedback used to come from those 28-30

year old guys, out of the 100 or so we recruit every year.

Have you recruited from the two ITIs you adopted in January?

The first group will be maturing in July this year where our semi-

contribution can be seen. We have looked at a temporary change in the


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layout of machines and equipment in four of them- two managed by us

directly and the other two by our JV partners Jay Bharat Maruti and

Sona Koyo. We manage two ITIs at Gurgaon and Rohtak. A lot of

expensive machineries in these ITIs have been left unused for many

years and have been pressed into use now.

A new course curriculum has already been put in place. The NTTF is an

excellent agency down south in Bangalore, who manage these ITI. They

call it the model ITI. We have hired them to run the ITIs for us. They are

the consultants. A senior person each is heading the management

councils at both the Gurgaon and Rohtak ITIs.

Our first complete contribution will be realised in July 2008, when all

our initiatives will be out in place. A centre for excellence model can be

seen in July 2008 in all the four ITIs.

Has Suzuki picked up any HR initiative from Maruti?

Not really. We are two very distinct countries. The moment I talk of

people perspectives, it will have a backdrop of the social ethos, cultureand other factors. We are poles apart in that sense. However, whatever

we do is quite global in HR perspective. In that sense, Suzuki is trying to

open up very fast. One good complement for us here is that Suzuki is


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very keen on understanding the changes that have been brought into

Maruti in the last 6-7 years, ore specifically on the leadership and HR

fronts.

Is there any other initiative you plan this year?

When we talk of connect with people, there are formal channels of

internal communication like newsletters or quarterly communication

meetings, which is addressed by the MD. There are meetings where I, as

the head of HR, talk to people.

There is another very powerful initiative we have started called 'Tea

with MD'. A small group of 18-20 people interact with the managing

director over some tea and cookies. It is an open forum for all. This is a

monthly exercise and selection is random. Feedback can be drawn from

such meetings and worked accordingly.

What is the attrition rate at Maruti today?

We are currently experiencing an attrition rate of 9.5 percent, as againstthe industry (manufacturing sector) rate of 19.5 percent. In the young

population, we are touching 12 percent, which is about 22 percent in the

industry. Young here means in terms of age, experience, and his stay in


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the company. These young employees constitute about 30 percent of the

total workforce.

Is there a Suzuki culture today? How will you define it?

The Suzuki culture has been a tremendous gain for Maruti for the last 25

years. It was a judicious mix in the JV relationship. The typical

capabilities were with Suzuki Japan, not with us. Similarly, facets of

marketing, sales and HR were with the locals. Contributions from both

the partners were used to the optimum levels.

Lastly, what is Maruti's policy on employing women?

There were jobs in the automotive industry that were historically

considered tough for women, especially in the shop floor, marketing,

sales, and engineering. Over the last four years, we have taken a call in

the HR consulting group that recruitments will be made based on

competencies and attitudes, and not based on gender. We go to

engineering colleges that are specifically for girls. We have made it very

clear in our presentations to all educational institutes that if a girl is

willing to make a career with us, we will provide her that with that

opportunity, provided she is found competent. We are not keeping a tab


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on numbers; we recruit based on professional competencies. We broke

that barrier consciously four years ago.

PROJECT VISTAAR RELATED WITH SELECTION AND

ORIENTATION

Maruti has been the market leader in the passenger car segment for the

past several years and has been reaping the benefits of being the single

player in Indian Passenger Car Industry. This situation also led to having

good margins in the product sale and full capacity utilization of the plant

facilities. The market size also had been increasing continuously with

two digit percentage growths. However, with the Competition coming

in, and with the passenger car market itself not increasing in size,

Marutis market share, and margins and hence the profits from

manufacturing activity alone are under severe pressure. This is the

typical scenario globally also, wherein mature markets like USA and

Japan the manufacturing business, on a stand-alone business, is

undergoing severe pressures on bottom lines.


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In this kind of a background, in order to maintain its supremacy in the

passenger car market and to increase its revenues and profits, Maruti

decided to venture into new service oriented businesses, which could be

developed as natural spin off from its core business of manufacturing. It

would also strengthen its brand image as a provider of complete mobility

solution for its customers.

To develop this idea, Maruti engaged M/s A.T. Kearney as consultants

(Phase I). Preliminary analysis by A.T. Kearney, with support from

Maruti, indicated that Maruti captures a limited portion of the vehicle

life cycle spend towards only sale of car, with a potential to capture

another almost equivalent portion. It found that global auto majors

successfully tap this potential in different ways in various markets. A

number of business options were generated and examined, leading to

selection four potential businesses for Maruti to venture into viz.

Auto Finance Insurance Distribution Corporate Leasing and Fleet Management Pre-owned Cars Business

BIBLIOGRAPHY


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1} Aswahthappa

2}VSP RAO

WEBLOGRAPHY

1} Maruti udyog.com

2}Google.com

3} Management paradise.com


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Documents

13491431 Project on Hrm Strategies of Maruti Udyog Limited