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ACKNOWLEDGEMENT
The goal was fixed, moves were calculated and I moved with full ofenthusiasm, vigor and keen interest.
There was a time when it proved to be on up hill task, the goal seemingbeyond my reach. But as work progressed my determination and will powergrew stronger and completion of this work further confined my belief that,
WHERE THERE IS A WILL THERE IS A WAY.
Its a sheer pleasure for me to state with candidly that this entire project is aheartily attempt to reach maximum accuracy. I therefore take this opportunitytop express my utmost gratitude and indebtness to all who have contributed
in some way.
I highly express my sincere thanks toMR. GAURAV SAXENA who helpedme throughout the project.
Last but not least I would like to pleasure a word of appreciation to myfamily & friends who supported & helped me to make this project a success.
CONTENT
1) Acknowledgement2) Objective of the study3) Organization structure4) Quick facts of MUL
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5) Some successful stories of MUL6) Vision ,values7) Division and Departments8) Organization chart9) HR vision
10) HR initiative11) Culture building initiative since Inception12) Focus of effective management process since Inception13) Induction and Succession14) Matter usually discussed in the Induction program of MUL15) Induction program16) Meaning of Recruitment17) Process of recruitmenta) for a particular city
b) for a particular dealershipc) depending on the availability of infrastructured) for a particular qualified person18) Selection meaning19) Selection process of MUL20) Meaning of training21) Importance of training22) Sales and training department of MUL23) Training process for sales executives24) Training process for sales manager/general manager/branch manager25) Training and Development of Dealers sales executives26) Performance Appraisal in MUL27) Major findings28) Conclusion29)Appendices30) Bibliography31) webliography
Objectives
To enhance my knowledge about Recruitment and
Selection.
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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 need through his experience which is
very essential quality of a H.R. Person & for the
organization as well.
Organization structure
DIVISION HEADS
FACTS OF MARUTI UDYOG LIMITED
Quick Facts
Year of Establishment February 1981
Vision"The Leader in The Indian Automobile Industry, CreatingCustomer Delight and Shareholder's Wealth; A pride of India."
Industry Automotive - Four Wheelers
Listings & its codes BSE - Code: 532500NSE - Code: MARUTIBloomberg: MUL@INReuters: MRTI.BO
Joint Venture With Suzuki Motor Company, now Suzuki Motor Corporation, ofJapan in October 1982.
Registered & Corporate Office 11th Floor, Jeevan Prakash25, Kasturba Gandhi MargNew Delhi - 110001, IndiaTel.: +(91)-(11)-23316831 (10 lines)
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Fax: +(91)-(11)-23318754, 23713575Telex: 031-65029 MUL IN
Works Palam Gurgaon RoadGurgaon -122015Haryana, IndiaTel.: +(91)-(124)-2340341-5, 2341341-5
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 consecutive year.
Number one in JD Power CSI for the sixth time in a row - the only car towin it so many times.
M800, WagonR and Swift topped their segments in the TNS TotalCustomer Satisfaction Study Leadership in the JD Power Initial QualityStudy - Alto number one in its segment for the 2nd time in a row, Esteemnumber one in its segment for the 3rd year in a row, Swift number one inthe premium compact segment.
WagonR and Esteem top their segments in the JD Power APEAL study.
TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study(#1 in Auto sector)-Feb 05.
Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC (2nd time in a row)-Feb 05.
First Indian car manufacturer to reach 5 million vehicles sales.
Business World ranks Maruti among top five most respected companiesin India-Oct 04.
Maruti ranked among top ten (Rank7) greenest companies in India byBusiness Today - Sep '04
2004 Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales
http://www.marutiudyog.com/http://www.surfindia.com/automobile/maruti-800.htmlhttp://www.surfindia.com/automobile/maruti-alto.htmlhttp://www.surfindia.com/automobile/maruti-baleno.htmlhttp://www.surfindia.com/automobile/maruti-grand-vitara.htmlhttp://www.surfindia.com/automobile/maruti-gypsy-king.htmlhttp://www.surfindia.com/automobile/maruti-suzuki-sx4.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.marutiudyog.com/http://www.surfindia.com/automobile/maruti-800.htmlhttp://www.surfindia.com/automobile/maruti-alto.htmlhttp://www.surfindia.com/automobile/maruti-baleno.htmlhttp://www.surfindia.com/automobile/maruti-grand-vitara.htmlhttp://www.surfindia.com/automobile/maruti-gypsy-king.htmlhttp://www.surfindia.com/automobile/maruti-suzuki-sx4.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.html -
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Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 inProduct Appeal (Esteem and Wagon R).
No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto).
Business World ranked us among the country's five most respectedcompanies.
Business World ranked us the country's most respected automobilecompany.
Voted Manufacturer of the year by CNBC.
Voted one of India's Greenest Companies by Business Today-AC NielsonORG-MARG.
ORGANISATION CHART
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Team LeaderManager Sales-Bharat Salwan
Sales ConsultantSales ConsultantLobby Manager-Vineeta
Support staff: Drivers,Peons etc.Manager CorporateSales-
Sales Consultant
(CorporateSales)Sales Consultant(Corporate Sales)
Delivery
Manager-Support staff: Billing, ServiceAdvisor etc.
Manager
Accessories-Aamir M.
Khan
Accessories salesstaff:Counter, Channel etc.
Manager MI &Call Centre
MI staff: Field Execs,
Telecallers etc.GM(Sales)CEOCCM-
SupreetChadha
CCEManager DSA
Sales-SunilArora
IT SupportStaff
HR- mgnrMudra Mehra
ManagerLoan
Mr ALoa
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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
CULTURE BUILDING INITIATIVES SINCE INCEPTION
Japanese Management philosophy of Team Spirit
Common uniform
Open office
Common Canteen
Open Office Easy accessibility, Speedy
Communication and decision making
Morning Meetings
Morning Exercises
FOCUS OF EFFECTIVE MANAGEMENT PROCESS SINCEINCEPTION
Management Committee Meetings every Tuesday
Single unaffiliated Union
Excellent Industrial Relation scenario
No loss of monday due to strike/lockout etc. in past 5 yrs.
Maruti Udyog Sahyog Samiti a forum for non unionized staff.
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Declared organization structure Workers (Technical / Assistant.),Supervisors, Executives, Managers
Top Driven HR MD is also Director HR
HRs role of a facilitator
Line managers as HR Managers
Year of the Customer
HR Internal Customer Focus
Focus on Internal & External Customer.
INDUCTION AND SUCCESSION
Transparent Recruitment & Selection process
Recruitment on an All India Basis no sector or region specific.
Engineers CAMPUS - IITs/RECs/Rorkee /HBTI
ALL-INDIA TEST
MBAs IIMs/XLRI
CAs - Rank Holders
India Exam & Apprenticeship In MUL
Lateral Entry for Experienced Professionals.
MATTER USUALLY DISCUSSED IN THE MARUTIINDUCTION
Overview of Maruti and Suzuki
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Building understanding of the car market in India and varioussegments
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 optionsavailable
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 acustomer to do need based selling
Induction program
Objective: The objective of this program is to facilitate smooth induction ofthe new DSEs into their place of work i.e. Maruti dealerships. This programattempts to orient the new DSEs on a few important parameters, which arelisted below:
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
Overview of each Maruti model and the MUL Advantage
Overview of the selling process and how to uncover needs of a customerto do need based selling
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Role of financing as a sales tool and the various financing optionsavailable
Ensuring personal effectiveness
Understand the attributes of a good DSE
MEANING OF RECRUITMENT
It is the process of searching the potential candidate and offers him or her thejob. 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 ajob vacancy, in a most timely and costeffective manner
RECRUITMENT PROCESS OF MARUTI UDYOG LTDThe recruiting procedure at a Maruti dealership is as follows:
For a particular city
For
a particular Dealership
The dealership should release an advertisement.
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/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.html -
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Depending on availability of infrastructure
Interview of shortlisted/ qualified personne l
MEANING OF SELECTION
It is the process of searching the potential candidate. It is negative in nature inthe 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, factsmay come light which may lead to the rejection of the applicant. It is aseries of successive hurdles or barriers which an applicant must cross.These hurdles or screens are designed to eliminate an unqualifiedcandidate at any point in the selection processThere 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 filled..1} Preliminary Interview (screening applications)
Initial screening is done to weed out totallyundesirable/unqualified candidates at the outset. It is essentially a
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sorting process in which prospective candidates are given thenecessary information about the nature of the job and theorganization, at the same time, the necessary information is alsoelicited 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 applicationform.
2} Application Form
Application form is a traditional and widely used device forcollecting information from candidates. It should provide all theinformation 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 employeeselection, where a test may involve some aspect of an individualsattitudes, behavior and performance. Tests are useful when thenumber of applicants is large, as at best it reveals that thecandidates who scored above the predetermined cutoff points arelikely to be more successful than those scoring below the cutoff
point.
4} Employment Interview
Interview is an essential element of selection and no selection 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 inrelevant to their academic credentials. selection in interview serves three
purposes:
a) obtaining information about the background, education, training,work history and interests of candidate
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b) giving information to candidates about the company, the specificjob and human resource policies; and
c) establishing a friendly relationship between the employer and thecandidate so as to motivate the successful applicant to work for
the organization.
However, in practice interview becomes a one-sided affair servingonly the first purpose.
5} Medical Examination
Applicants who have crossed the above stages are sent for a physical examination either to the companys physician or to a
medical officer approved for the purpose. Such examination servesthe following purposes:-
a) It determines whether the candidate is physically fit to perform the job, where those who are physically unfit arerejected.
b) It reveals existing disabilities and provides a record of theemployees health at the time of selection. This record willhelp in settling companys liability under the workmencompensation Act for claim for any injury.
c) It prevents the employment of people suffering fromcontagious diseases.
d) It identifies candidates who are otherwise suitable but requirespecific jobs due to physical handicaps and allergies.
6} Reference Checks
The applicant is asked to mention in his application form, the namesand 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
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candidate without incurring any liability. In government and public sectororganizations, candidates are generally required to route their applicationsthrough their present employers, if any. The opinion of referees can beuseful in judging the future behavior and performance of candidate, but is notadvisable 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, and do not
wish their employers to know they are looking elsewhere.
(b) Because of(a) a prospective employer would be breaking a confidence ifhe or she asked for a reference before an offer of a jobhad been made and accepted.
(c) By the time an offer has been accepted, selection is over and thereference is too late to affect it.
(d) An offer may be made subject to satisfactory references, but asmost references are received after the candidate has started work,they can only be used to warn managers of possible faults in thecandidate which in serious cases may eventually lead to warningsfollowed by dismissal.
(e) Employers giving references are usually extremely cautious; manyreferences merely state the job title, the date of employment, andreasons for leaving.
(f) References are occasionally biased, giving a good reference tohasten 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. Ifsuch a meeting cannot be arranged, telephoning is the next bestalternative.
7} Final Approval
In most of the organizations, selection process is carried out by thehuman resource department, where the decisions of the department are
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recommendatory. The candidates shortlisted by the department are finallyapproved by the executive of concerned departments or units.
8} Employment.
Employment is offered in the form of an appointment lettermentioning the post, the rank, the salary grade, the date by which thecandidate should join and other terms and conditions in brief. In someorganizations, a contract of service is signed by both the candidate and therepresentative of the organization. It is at this point where a selected applicantis handled with a letter of offer for a job:
a) The wage or salary offered must not only be appropriate to the joband attractive to the candidate but consistent with the earnings of
present employees.
b) The job must be named and any special conditions stated, forinstance, 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, whereupon satisfactory performance during this period, the candidate is finallyconfirmed in the job on the terms employed with, whether permanent orcontractual basis.
9} Induction.
The process of receiving employees when they begin work,introducing them to the company and to their colleagues, and informingthem of the activities, customs and traditions of the company is calledinduction. At this juncture various inductioncourses are done to new recruit in order to acclimatize them with the newworking environment.
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Development of skills of employees Training and Development helps inincreasing the job knowledge and skills of employees at each level. It helps toexpand the horizons of human intellect and an overall personality of theemployees
. Productivity Training and Development helps in increasing theproductivity of the employees that helps the organization further to achieve itslong-term goal.
Team spirit Training and Development helps in inculcating the sense ofteam work, team spirit, and inter-team collaborations. It helps in inculcatingthe zeal to learn within the employees.
Organization Culture Training and Development helps to develop andimprove the organizational health culture and effectiveness. It helps increating the learning culture within the organization.
Organization Climate Training and Development helps building thepositive perception and feeling about the organization. The employees getthese feelings from leaders, subordinates, and peers.
Quality Training and Development helps in improving upon the quality ofwork and work-life.
Healthy work-environment Training and Development helps in creatingthe healthy working environment. It helps to build good employee,relationship so that individual goals aligns with organizational goal.
Health and Safety Training and Development helps in improving thehealth and safety of the organization thus preventing obsolescence.
Morale Training and Development helps in improving the morale of thework force.
Image Training and Development helps in creating a better corporateimage.
Profitability Training and Development leads to improved profitability and
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more positive attitudes towards profit orientation.
Training and Development aids in organizational development i.e.Organization gets more effective decision making and problem solving. Ithelps 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 andmanagers usually display.
Training Details
The strength of any organization is its manpower. Each organization wouldlike to have executives who are well trained so that they can be more
productive. The vehicle manufacturers conduct several trainings so that theycan achieve their goals. In the Training master form, you can enter theinformation about the training, which have been conducted during a particulartime period. We are also maintaining the information regarding the attendanceof the executives in a specific training. That is, how many executives out ofthe given list have attended the training? With the help of these trainingdetails we are generating various MIS reports. The details provided here canhelp 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 ofa particular training with just one click over there.
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SALES AND TRAINING DEPARTMENT OF MARUTI UDYOG
Vision
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1.Induction - Aims to provide an understanding of the automobile industryMUL, its policies and products. (2 Days)
2.Product programs- Imparts complete knowledge on MUL product vis--viscompetition. Various programs are Segment A1, Segment A2, Segment A3and Versa, Grand Vitara XL 7. (2 Days)
3.Selling Skills/ Consultative Selling Process- Enables executives tounderstand customer needs, sales processes etc and enables them to applylearning 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 athelping one to build a positive attitude and better interpersonal skills and toenable better customer handling. (3 Days)
5.Advisor for life program : In this changed competitive environment the roleof Dealer Sales Executive is seen more than a person who is selling cars to thecustomers. He is expected to be the Customer's ' Car Advisor for life' andmake that one-time customer into his 'Customer for life'. He has to be SingleWindow Interface with his customers on all matters related to cars i.efinance, insurance, Extended warranty, MGP, MGA, service etc. (2 Days)Thistraining trains the Sales Executives on the concept of 'Advisor for Life' andhelps them become a Single Point Contact with the customer.
6.Program for Dealer sales Executives handling Corporate and InstitutionalSales. (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 factorstructure for SSI. It not only focuses on the processes to be followed fordelivery 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 f or Sales Managers /General mangers / Branch Heads
1.Dealership Management Program: for second-generation dealers, and GMsand RO executives on how to manage entire Dealership Operations. FinancialManagement, staff management, motivation, time management, planning arecovered. (2 Days)
2.Sales Managers/Team Leaders Program: The Training covers issues likeSales Management (target setting and achievement, enquiry management
resource and time management etc), Supervisory skills (Performancemanagement, leadership etc), Practical Coaching skills, knowledge of MarutiFinance, Maruti Insurance Extended warranty, MGA, True Value etc and CarAdvisor for life concept. (2 Days)
3.Branch Managers Program: Many of our dealers have multiple outletsWhile 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 outletsmanages the other outlets. In order to ensure that they run their respectiveoutlets effectively we train them on the various aspects of dealership.
The training covers topics like -Making a business plan (for the dealership asa whole- Not only for sales but also for other revenue streams), Fundamentalsof DBP, HR Management, Team Building and Supervision skills, Ability tomotivate the team and get a buy in on the business plan, Timemanagement/Prioritizing etc
Training and Development of dealer Sales Executives
Development and Updation of Training Modules
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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.
2. Communication:
Sales Training Department sends monthly Newsletter CreatingWinners to all DSEs. It is a monthly communication containingarticles on various aspects of product knowledge, selling skillsmarket etc .It is a forum for effective communication of new ideasand strategies. It also provides two-way communication.
An Annual Selling Skill Contest is organized to test the selling skillsof the sales executives. It is conducted at regional levels andculminates in an all India level contest.
Recruitment of Sales Executives:
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. Ithelps dealers recruit the right profile of people for their dealership. The Regional Office will beinvolved throughout the implementation of the MARS while recruiting Sales Persons. All SalesExecutives need to be registered with Maruti after recruitment through extranet. A uniqueMaruti Suzuki Personal Identification Number (MSPIN) is being issued which the DSEs have toremember and use in all communications like Trainings, reward schemes etc
Maruti adopts `360 degree' appraisal system
Employee to be evaluated not just by superiors, but also by peers, subordinates
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One of the benefits that Maruti is hoping to get out of the 360-degree feedback
process is the sense of empowerment and importance felt by subordinates, when
they are asked to offer their feedback about their superiors. Maruti currently hasover 4,000 employees on its rolls.
FINDINGS
1) They treat all the employees equally
2) 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 working pattern 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 different departments 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 LIMITEDIN THE NEWS
Maruti Udyog, India's largest carmaker has been making key investments inseveral human resource initiatives. The company is currently working on a five-
year people-oriented strategy, apart from initiatives that are being taken to makeyoung recruits understand the 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 relatedissues.
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
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change, where we are acceptable to a dynamic global business scenario. 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, atMaruti, 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 theiraspirations and blending that with the company's aspirations, where talent
management and retention comes in, constitutes 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'syounger 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 achange. 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 andengaged.
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 wedo on campus recruit is to make sure we offer a relationship. This is a relationship
that is built on confidence and a way that signifies that we care.
In our case, the induction phase is the most critical. We do several things to make
them feel special. We even pick them up from railway stations or airports, fromwherever 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 ina 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 forthe new recruits. While it gives them an opportunity to interact with the MD, it also
acts as a tremendous
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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 receivingfor 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. After the completion of three
months, a senior person of the level of a functional head becomes the mentor forthree 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 justtypical 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, butquality 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 correct decisions.
We also have initiatives for employees who have spent two to three years in thecompany. 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 orderto strengthen internal communications. We have a senior level HR consulting
group and a junior level HR consulting group. Policies are formulated based on theinteractions with these two groups and we try to give shape to a policy that can
impact lives.
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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 conceptuallycleared and we are in the final phase of planning. This centre will have a kind of
infrastructure for a central umbrella for training but will operate in a decentralizedmanner. We will have a residential facility, an e-learning facility and will look at
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 overfresh 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 theyorganize 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 feedback to
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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 beaggregate 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 bea 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 as to where he wanted to beplaced. 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 dowith 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. Theycome 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 professionallythought 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 werecruit 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 layout of machines and
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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 formany 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 seniorperson 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 allthe four ITIs.
Has Suzuki picked up any HR initiative from Maruti?
Not really. We are two very distinct countries. The moment I talk of peopleperspectives, it will have a backdrop of the social ethos, culture and 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 goodcomplement for us here is that Suzuki is very keen on understanding the changes
that have been brought into Maruti in the last 6-7 years, ore specifically on theleadership and HR fronts.
Is there any other initiative you plan this year?
When we talk of connect with people, there are formal channels of internalcommunication 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'. Asmall 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.
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What is the attrition rate at Maruti today?
We are currently experiencing an attrition rate of 9.5 percent, as against theindustry (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 heremeans in terms of age, experience, and his stay in 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 SuzukiJapan, 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 toughfor 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 ongender. 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 willingto make a career with us, we will provide her that with that opportunity, provided
she is found competent. We are not keeping a tab 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 beenreaping the benefits of being the single player in Indian Passenger Car Industry. This situation also led tohaving good margins in the product sale and full capacity utilization of the plant facilities. The marketsize also had been increasing continuously with two digit percentage growths. However, with theCompetition coming in, and with the passenger car market itself not increasing in size, Marutis marketshare, and margins and hence the profits from manufacturing activity alone are under severe pressureThis is the typical scenario globally also, wherein mature markets like USA and Japan themanufacturing 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 toincrease its revenues and profits, Maruti decided to venture into new service oriented businesses, whichcould be developed as natural spin off from its core business of manufacturing. It would also strengthenits 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 analysisby 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 equivalentportion. It found that global auto majors successfully tap this potential in different ways in variousmarkets. A number of business options were generated and examined, leading to selection four potentialbusinesses for Maruti to venture into viz.
Auto Finance
Insurance Distribution
Corporate Leasing and Fleet Management
Pre-owned Cars Business
BIBLIOGRAPHY
1} Aswahthappa
2}VSP RAO
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WEBLOGRAPHY
1} Maruti udyog.com
2}Google.com
3} Management paradise.com