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HR Best Practices @Lear

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Moving the Seat Forward™

At Lear, we bring our global customers industry-leading innovations delivered by the best go-to team in the industry. As a leader in vertical integration, our team has expertise with every element of the seat — from structure systems, head restraints, foam and adjusters, to leather and fabric

About Us……

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Powering Ideas that Deliver™

At Lear, our capabilities include wire harnesses, smart junction boxes, terminals, connectors and selected electronics — all designed to reduce weight, complexity and material costs while delivering outstanding performance. Whatever the vehicle application, we deliver the flexibility and speed required to manage continuous improvements, while maintaining consistency and reliability.

About Us……

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Innovation and Technology Get Connected

Our high quality connection options suit a great variety of applications including automobiles, appliances, industrial open-and-closed-loop controls, telecommunications, and home-entertainment electronics.

About Us……

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Lear Values

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Lear India History1996 - 1997Commenced Operations in India with facility at Halol for GM-India. JV in Chennai for Hyundai seating and interiors 1998 - 1999Signed contract with Mahindra for design, engineering and manufacture of Scorpio SUV complete interiorsIndia Engineering center established. Facilities in Mumbai and Nashik for seat supply to MahindraSOP in Chennai for seating and interiors supply to Hyundai2000 - 2004Added business with Ford, Mitsubishi, GM and HyundaiLaunched new facility in Nashik for Mahindra seating and interiorsAll locations certified ISO/TS16949 and ISO140012005Awarded new business with Hyundai, Mahindra, Renault, and GM2006Awarded new business with BMW, TATA Motors. New plant in Ambad2007New business from M&M Export SUV, GM Global Mini Car and BMW2008New business from M&M Export SUV, GM Global Mini Car and BMWEstablished first plant at Pune (Chakan)New Customer Nissan added with small car business award and new JV with Tachi-SMajor award from M&M for Global SUV. Entry into commercial truck seating (Mahindra Navistar)2009Bhosari facility established as corporate HQ, Engineering Center and JIT plant for TATA MotorsNew Customer Volkswagen India added with 250/251 award. Additional award from TATA Motors and BMWLaunched Lear Metals vertical integration facility with Tracks and Recliners at Pune2010New Business award added from Ford, Mahindra & Mahindra, BMW, GMI & NISSANNew Plant started at Chennai (TACLE) and Chakan (VW, GMI) , Metals additional facility started at Chennai2011Chakan-IV plant established as combined facility. Chakan-I and Chennai New JIT facility kicked offNew Business awards from Renault, First electric car seating (MREVA) award. VW and BMW Awards

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Lear India – Customers

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Lear Vehicle Line-up

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LEAR INDIA FOOTPRINT

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7th largest vehicle manufacturer in the world

4th largest exporter of cars in Asia

Passenger car market dominated by 3 Indian and 14 foreign OEM’s

Passenger Car Locations

MUMBAI

CHENNAI

DELHI

KOLKOTTA

Increasing entry of global OEM’s

PUNE

West

North

East

South

Sanand

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Lear Operations

Ambad

HalolChennai Plant

Chakan -3Chakan -2 Bhosari

TACLE Chennai

GondeChennai Plant Chennai Plant

Chakan - 4

Dymos Lear Dymos Lear

Lear Chennai I

Metals Trims JIT

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LEAR UPCOMING PLANTS

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Lear Upcoming plants in India (Renderings)

4 Acre plant in Chennai

Operational since Aug’12

19 Acre plant in Chakan, Pune

Operational by Oct’ 12

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Standards Documentation

Code of Business Conduct and Ethics Corporate Identity Standards Manual Computer User Handbook Delegation of Authority Global Procedure Manual (GPM) Information Technology Practices Manual (ITPM) LEAP Manual Plant Controllers Handbook Records Management Value Statements

Corporate Policies and Standards

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Bomb Threat Procedure Policy Compliance Policies Environmental, Health & Safety Policy Equal Employment Opportunity Policy Global Labor Standards Global Travel and Business Expense Reimbursement Policies IT Policies Minority Procurement Policy Quality Policy Vision / Mission Statement Weapons Policy

Corporate Policies

Corporate Policies and Standards

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Goals & Objectives 2012

Objectives Leader/Support Metric 2012 Target Long Term (2016)

Growth – CARG 18% over next 5 yearsMaintain & grow the current share of businessAdd new customers PSA, Mercedes & ProtonRoadmaps to enhance profitabilityImprove material-to-salesMargin enhancement through CTO

Uday / Rohit / AmarUday / AmarUday / AshwaniHariHari / Amit Shingi

Purchase Orders New AwardsRoadmap IRR & OIPurchase SavingsCTO Savings

$ 50M – New Sales

15% IRR1.3% of Sales0.3% of Sales

$ 228M – New Sales

>15% IRR1.5% of Sales0.8% of Sales

OperationsBest in class launch executionManagement operating SystemOperational ExcellenceShare & implement best practiceQuality – Supplier / Customer

Shrikant /Satish/Hari/SriShrikantShrikant Sri Prateek / Shrikant

On Time LaunchMOS - MetricsLPS / Six Sigma / LeanLPMP / PLMPPM / LQTS / SQTS

Zero DisruptionPlant GoalsProjectsProfile / PLM adherence 20 / 500

Zero DisruptionPlant GoalsProjectsProfile / PLM adherence 10 / 100

Vertical Integration Metals Expansion

Trim Expansion (Chennai & Chakan)

Foam Establishment (Nashik, Chennai & Chakan)

Shrikant / Nitin

Shrikant / Sudhir

Shrikant / Basant / Essakki

Implementation Dec 2012

Achieve $9 M OI through VI

Achieve $23 M OI through VI

PeopleSuccession plan for all key positionEmployee retention/development/reducing attritionTraining & team building initiativesStrengthen the organization & develop business leadersSafety

Samir / AmarSamirSamirSamir / AmarAll Plant Managers

Succession planReducing Attrition %Hours per employeeLeadership reviewMOS - Metrics

Quarterly mgmt review10%16 hrs/ EmployeeQuarterly mgmt reviewZero recordable

Quarterly mgmt review15%24hrs / EmployeeQuarterly mgmt reviewZero recordable

Joint Ventures and Mergers & AcquisitionsAward Maruti business through Minda JVAcquisition of Tool companyAcquire low cost mechanism companyExplore fabrics / Leather partnershipJV proposals on EPMS

Amit / Amar / RohitAmit Amit / AmarAmar Amit / Amar

Awards of Business Signing Agreements

Achieve $ 7M in new Sales

Achieve $35M in New Sales

Amar Arepalli Shrikant Chaudhari Uday Deshmukh Samir Kukade Ashwani Batra Satish DubulePrateek Kumar Amit SharmaHariprasad Rao Sri Thota

Stamping/Welding & Powder Coating Mechanism – ECO track and Mini recliner

Leather Expansion at Halol

HR Goals and Objectives for 2012

Human Resources

Talent Acquisition

Leadership Development &

Learning & Development

Compensation and Benefits

Industrial Relations

Administration

Environment, Health and

Safety

Employee Engagement

Corporate Sociality

Responsibility

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Goals and Objectives 2012Succession Planning andLeadership Development

Leadership Assessment

Leadership Development Initiatives

Employee Retention/ Development/ Reducing AttritionCompensation and Benefits

Employee Engagement

Corporate Social Responsibilities

Training and Team BuildingLearning and Development Initiatives

Talent Acquisition

SafetyEHS Management

Business Goals

HR Goals for 2012

HR Initiatives to support the business goals

HR Goals Alignment with Organizational Goals Goal

Alignment

HR Scorecard

Compensation and Benefits

Benchmarking of C&B data with Market Data Proposal worked out for various pay bands considering market equations Participation in Annual Salary surveys conducted by various agencies such as Mercer etc. Kicked off Project on Standardization of Job Descriptions for various Positions Streamline of Peoplesoft database Superannuation fund status made available online PF Tracking System for withdrawals and transfers is streamlined Confirmation Process is regularized

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L&D : Vision

To create a Comprehensive Talent Management System that develop leadership capability to –

produce and retain great talents, build great teams & to achieve great results.

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L & D : Mission

Align with business strategies and key initiatives for future growth & success

Boost sustainable leadership capability and competencies across teams to

meet its financial & business goals

Build a leadership culture of high performance and effective teamwork

Provide efficient training, effective learning

Learning & Development Key Focus Initiatives

Good At Basics

2012

2015 to 2016

Basic to Good

2013 to 2014

Good to Great

1 Strengthen LD Capabilities• Dedicated Country LD Managers• Set LD policies, processes, portal

Drive Leadership Development• Core leadership development modules for all managers• Core functional knowledge: Finance 101, HR 101

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Facilitate Organizational Effectiveness & Engagement• Establish effective onboarding processes and program• Build awareness of our Lear Values via communication and program

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Build Employee Capabilities• identify employee development needs through Learning Needs Analysis & Learning Plan• Develop functional competencies and learning roadmap: Finance, Sales, HR

22 Facilitate Career Development

• Career development framework • Career roadmaps for job functions• Individual development plans focusing on on-the-job learning

Grow Talent• Establish talent management process• Establish talent pool and leadership bench strength• Talent retention

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Foster A Culture of Learning• Enable e-learning• Establish core functional progs to address skills gaps• Upgrading of critical skills to support business strategies• Knowledge management

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Embed Learning Effectiveness . Tie to Performance Metrics . Direct / Indirect Impact to Business

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Leadership Development

VP, Directors, Senior Managers, Plant Managers

Unit / Department Managers

Supervisors

Leading Leaders to Inspire Others

Leadership Fundamentals for Managing & Motivating Teams

Leading Self : Habits of

Excellence

Coaching For Success

Problem Solving &

Decision Making

Leading Self & Others: Working Effectively With

Others

Coaching For Success2 Days

Leadership Development Intervention

6 Days

Leadership Greatness

3 Days

FINANCE 101 HUMAN RESOURCES 101

Core Functional Knowledge

External Facilitators

Country & Regional LD Managers

Leading Others: Working

Effectively With Others

Additional intervention For India (External)Leadership Development

program starting in this month

CDAP

Hourly emp Progression

Master

http://10.71.192.159/ld/Learning/Welcome.html

New in LD Portal: Monthly Learning Theme

2012 Learning Calendar

Learning and Development• Systematic approach on L&D • Preparation of Learning Calendar based on the Learning Needs Analysis• Adherence to Learning Calendar approx. 60%• Streamline the On boarding Process• Completion of Leadership Profiles• Leadership Development Programs are being planned for HIPOs and for development of

Successors• Launched Leadership: Great Leaders, Great teams,Great results program by Franklin Covey • Launched Mentoring Program by Pragati Leadership

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MSB - Training Plan

Training ProgramsConflict Management

Negotiation Skills

Communicate with Impact

Motivation

Talent AcquisitionThings moving in the right direction:• Streamline the Recruitment Process • Launch of Employee Referral Scheme• Stopped using Placement Consultants• Linking Recruitment with HC Forecast Month over month• Increased use of innovative Sources for Recruitments:

– Employee Referral Scheme– Job Fare – News Paper Advertisement– Online Portal– Walk in Interviews

• 100% Compliance with APO hiring guidelines and People soft requirements• Reduction in Hiring Lead Time

Lear_Onboarding Guide

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Recruitment and Selections

Competency based interviews. Maintained strong data base for reducing TAT ( Current TAT 40 Days ) Sourcing : Portal, Referral, Consultant, Lear intranet & others etc.

Portal Referral Consultant Other05

101520253035404550

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Plant Recruitment

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Company OverviewThe Lear Corporation is a Fortune 500 company with world-class products designed, engineered and manufactured by a diverse team of talented employees. As a leading supplier of automotive seating and electrical power management systems, Lear serves its customers with global capabilities while maintaining individual commitment. With headquarters in Southfield, Michigan, Lear maintains 207 locations in 35 different countries around the globe and employs approximately 98,000 employees. Lear is traded under the symbol [LEA] on the New York Stock Exchange .

Positions1 Sr.Engineer - Industrial Engineering 2 Sr. Engineer - Maintenance 3 Asst. Manager - Material Planning &

Logistics 4 Asst Manager - Production 5 Asst Manager - Quality 6 Asst Manager - Plant Engineering 7 Asst Manager - Indirect Purchase 8 Deputy Manager - SQA 9 Manager - Operations 10 Manager - Quality 11 Manager - Industrial Engineering

Job RequirementsRequirements include Bachelor’s of Engineering and relevant experience preferably in Automotive Industry (OEM/Tier 1).

LocationChakan, Pune

Bigger challenges. More opportunities. Greater rewards.Lear is looking for energetic, enthusiastic and talented individuals to join our global workforce. If you crave challenging work, ongoing opportunity for growth, and rewards that make it all worth while, we have the job you’re looking for.

Kindly send the profiles stating the position in the subject line to PunecorporateHR@lear.com

PUT YOUR SKILLSTO BETTER USE.

Seating

Electrical Power Management Systems

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शि�लाई सहकारी  

• कंपनीमध्ये शि�लाई सहकारी या पदाकरिरता सर्व� कम�चाराकडून संदर्भाा�द्वारे अर्ज� मागविर्वण्यात येत आहे. सदरचे अर्ज� छाननीनंतर पात्र उमेदर्वारांना मुलाखतीनंतर कंपनीच्या सेर्वेत टे्रनी / इपीपी म्हणून घेण्यात येईल.

• शि�क्षण: दहार्वी ; र्वय : १८ ते २४ र्वर्ष� • सदरचे टे्रनीने सहा मविहने पूण� केल्यानंतर संदर्भिर्भा7त कम�चाराल्या त्याबदल्यात संदर्भाा�प्रती बक्षी� म्हणून रु १०००/-

पगाराद्वारे देण्यात येतील. • सदरचे धोरण हे दिदनांक १६/०७/२०१२ पासून ३१/१२/२०१२ लागू राहील . • सदरचे अर्ज� स्र्वागतकक्षात उपहार / रे्जर्वणाच्या दरम्यान द्याव्यात.

काय�स्थळ : चाकण १, एम आय डी सी पुणे अर्ज� पाठर्वा cbhagwat@lear.com किक7र्वा सदरचे अर्ज� स्र्वागतकक्षात उपहार / र्जेर्वणाच्या दरम्यान द्याव्यात.

CAREERS @ LEARरेफरल प्रोग्राम

Industrial Relationship Management

Initiated Employee Engagement activities for Hourly employees Hourly employees Training Process started Started Bio Metric attendance and time office system for Hourly employees Skill Improvement training completed for Hourly employees Library for the Hourly employees Proactive measure /road map to stop the external union getting involved in Halol and Chennai

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Grievance and Compliant Process Lear’s intent to ensure that employees have the opportunity to have issues and disputes appropriately discussed and evaluated by management beyond their immediate supervisor if required. Employees are encouraged to utilize the Dispute Resolution Process to resolve any disputes that cannot be resolved between the employee and his/her immediate supervisor with the help of Legal Department. Harassment Free Workplace Code of Conduct Employee Counseling Mechanism Anti Bribery Gift and Entertainment Policy Whistle Blow : Raising Concern

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Environment Health and Safety

7 Key Elements –

a) Policy & Leadership b) Communication c) Hazard Assessment d) Training e) Feedback Systems f) Loss Management g) Continuous Improvement

LOTO – Lock Out /Tag Out Safety Walk/Safety Tracker Global Safety Report Predictive Maintenance – Infrared Scanning Preventive Maintenance

Employee Engagement• Each Month one Employee Engagement Activity in various areas:-

• Work hard Play hard :• Lear Cricket League • Indoor Sports Week

• Family Friendliness:• Employee Family Get-together• Newly Married Couple welcome• Employee Family Visit

• Communication:• Monthly / Quarterly Employee Communication Meets• Quarterly MD updates• Quarterly News Letter

• Health and Safety:• 7 Elements Training• EHS Training• World Environment Day Celebration• Safety Week Celebration

Employee Engagement is an individual’s sense of purpose, evident to others in the display of personal initiative, efforts and persistence directed towards organizational goals.

To achieve higher level of Employee engagement - • DEVELOP

Stretch capabilities. Provide Learning Environment .

• DEPLOY Identify their need, rooted skills, interests. Find their best fit in organization. Craft conditions to help them perform.

• CONNECT Build network to enhance Goal congruence. Improve interaction.

EMPLOYEE ENGAGEMENT

Right Employees in the Right Jobs

Exceptional Leadership

Organizational Systems and Strategies

ENGAGEMENT DRIVERS

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Aligned Effort and Strategy Empowerment Teamwork/Collaboration Growth and Development Support and Recognition

WORK ENVIRONMENT

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Greater Loyalty Enhanced Effort Committed to work Cares about future of organization Exceeds desired expectations Increased work satisfaction Goal Congruence achievement

ENGAGED EMPLOYEES

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Satisfied/Loyal Customers Increased Retention Higher Profits and Profitability Revenue Growth Sales Growth Greater Work Environment Low Attrition Increased Productivity

ORGANIZATIONAL SUCCESS

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ENGAGEMENT ACTIVITIES

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Employee Engagement Activities -Status & Responsibility

Sr No Category Activity description (Action) Current Status Responsibility Completion Date Remark

1 Monthly Celebration

Birthday Celebration In Process Unit HR

New Appointments on Board Introduction In Process Unit HR

Entertainment Activity (games) In Process Unit HR

Employee Reward & Recognition In Process Unit HR

2Rewards & Recognition

Star of the Quarter To be initiated Unit HR

Lear Hero In Process Corporate HR

Best Team Rewards To be initiated Unit HR

Beat Idea rewards To be initiated Unit HR

Best Supervisor Rewards To be initiated Unit HR

Recognition of long service In Process Unit HR

Diwali Rewards In Process Corporate HR

ENGAGEMENT ACTIVITIES

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Sr No Category Activity description (Action) Current Status Responsibility To be completed by Remark3 Sports Events

Cricket match (Intra/inter location) In Process Corporate HR

Indoor Games In Process Unit HR

4 Employee Involvement Activities

Employee Empowerment (committee formation) In Process Unit HR

Color your world In Process Unit HR Family Day In Process Unit HR Traditional Day In Process Unit HR Mismatch day In Process Unit HR Annual Picnic In Process Unit HR Diwali Dinner/Family get together In Process Unit HR Festival celebration In Process Unit HR Skip level Meeting In Process Unit HR is done at some location Employee engagement Survey In Process Corporate HR 5 Employer Branding Activities

Standard Employee orientation program To be initiated Corporate HR

Standard Employee orientation kit, To be initiated Corporate HR

Branding through job portals In process Corporate HR

Lear India website link on our global website To be initiated Corporate HR

Campus branding In Process Corporate HR

ENGAGEMENT ACTIVITIES

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Sr No Category Activity description (Action) Current Status Responsibility To be completed by Remark

6 Compensation & benefits

Industry specific market survey In Process Corporate HR

Benchmark HR best practices In Process Corporate HR

Hourly employee comp & benefits In Process Corporate HR

Benchmark local market labor wage settlement To be initiated Corporate HR

Brain storming session on managing labor cost To be initiated Unit HR

7 Succession Plan

Next level preparation for leaders In Process Corporate HR

Career Path for High pots In Process Corporate HR

8 Education Assistance

PG diploma, MBA for high pots In Process Corporate HR

9 IT integration

In Process Corporate HR

HRMS which will give user friendly access to Leave, Policies, FAQs, trainings, Payroll information, events and updates

Microsoft Office Excel Worksheet

Engagement Cal

KEY FINDINGS

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• We need to address the following areas :

Line manager interest in employee skills and career– Again employees find Lear difficult and demanding – Need training, coaching and mentoring

Competitive pay and benefits for demanding workload– Turnover prompt employee think they are higher paid than jobs

elsewhere – Employees feel they need more Rupees to compensate work

pressure

Key Feedback

Key Feedback

KEY FINDINGS

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• We need to address the following areas :

Work – life balance– Employees work long hours : overtime and week-end– Need to review resources in certain areas

Sense of achievement with recognition – Employees find Lear demanding and inflexible– Need more praise and award

Communication on company direction– Doing more is never enough– Within the Country and across Region

Key Feedback

Key Feedback

Key Feedback

ACTION PLAN

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Issues Action Status

Engaging

• Listening to employee feedback (Now)

– Develop action plans post-employee surveys.

– Roll out action plans post-skip level sessions.

– Continue lunch / birthday celebration / Lunch & Learn session.

Analyze employee surveys results.

– Develop proposals.– Socialize with management.– Communicate to employees.

• Making Lear a fun work-place (On-going)

– Organize sports eg cricket, TT– Celebrate festivities eg Diwali.– Traditional day, Mismatch day

etc– Engage families to Lear.– Annual Picnic

Intensify these activities– Develop plans and engage

employees in various engagement activities

– Make work more playful.

• Making Lear a good work-place

– Skip level meetings– Employee orientation– Branding

All activities are in process.

means started– means planned

ACTION PLAN

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Issues Action Status

Engaging

• Recognizing and praising employee for work done well

– Continue Lear Hero.– Continue engineering award.– Start Hero of the quarter– Best Team Rewards– Best Supervisor Rewards– Recognition of long service

– Work with management team.– Encourage more spot

recognition.

• Communicating with employee on regular basis (On-going)

– Continue news letter.– Every senior leader

communicate.– Team lunch

Intensify these activities.

means started– means planned

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Cricket League Chess Tournament

Carom Tournament Womens’ Day

Employee Engagement

Corporate Social Responsibility

Lear supports a wide range of non-profit organizations in the communities where we do business. The focus areas are education, health, human services, arts, and civic and community.

At Lear, we strive to do more for the community we work in. By giving back gifts of goods and services, volunteer hours, and financial support, we hope to enhance lives and preserve local neighborhoods for future generations.

• Structured Drive for CSR Activities

• Formation of CSR Team

• Tie up with local schools/ NGOs running for needy and under privilege children

• Donations of Stationary and other necessary items for the schools

• Blood Donation

Reaching out beyond Customers…Lear Donated Cow, Mats, Laboratory

equipments etc.

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Best Practice Initiatives In house Magazine: To keep updating the happenings all across the Lear, we have our magazine

called Lear Connect. Monthly MD Meeting- Interaction with Top most management gives a different kind of

motivation and it represents the open culture of the company. Fun @ Work celebrations- We do believe in celebrating every festival with much fervor and fun. A fun workplace add a bonus point to work environment. Lear is determined to make its work

places more enjoyable by implementing these initiatives Freaky Fridays- Once in a month we celebrate Fridays with lots of fun and some learning too. Random Acts- Be it best workstation award to Karaoke arrangements, we keep doing things to

surprise our employees. Service Providers Day – To ensure the desired level of services are demanded, monitored and

achieved. DOA – for better clarity and ease. Leadership Reviews – Year on Year for better succession planning ERM – Periodic review on Developing employees and Recruitment & Retention Marriage Gift – Marriage gift to Newly married employee. Medi claim/GPA/Life Insurance - Three Lakh floater / 96 times of monthly base/ Rs. 10 Lac/ 4

times of Annual Base

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Thank You