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CONTENT

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

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18) Selection meaning

19) Selection process of MUL

20) Meaning of training

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/branchmanager

25) Training and Development of Dealers sales executives26) Performance Appraisal in MUL

27) Major findings

28) Conclusion

29)Appendices

30) Bibliography

31) webliography

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Obj ectives

To enhance my knowledge about Recruitment andSel ection.

To enhance my knowledge about Training &Deve lopment.

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To convert my theo r et ical know ledge i nto p racticalknowledge.

To p r epa r e myself as a H.R. pe rson who can easilyidenti fy the t rai ning need thr ough his e x pe r ien c ewhi ch is very essential quality of a H.R. Person & for the or ga n ization as well.

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Orga ni z a tion structu r e

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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: 532500 NSE - Code: MARUTIBloomber g: MUL@ I NReuters: MRTI.BO

Joint Venture With Suzuki Motor Company, now Suzuki M otor Corpora t io n , of Japan in October 1982.

Registered & Corporate Office 11th Floor, Jeevan Prakash25, Kasturba Gandhi Marg

New Delhi - 110001, IndiaTel.: +(91)-(11)-23316831 (10 lines)Fax: +(91)-(11)-23318754, 23713575

Telex: 031-65029 MUL INWorks Palam Gurgaon Road

Gurgaon -122015Haryana, IndiaTel.: +(91)-(124)-2340341-5, 2341341-5

Website htt p ://ww w . mar u tiu d y o g.c o m/

mailto:MUL@INhttp://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.marutiudyog.com/http://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://www.marutiudyog.com/mailto:MUL@IN

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Segment and Brands

Products Brands

Four Wheelers Maruti 800 Maruti Alto Maruti BalenoMaruti Esteem Maruti Grand V it ara XL-7 Maruti G y p s y KingMaruti Omni Maruti Suzuki SX4 Maruti S wiftMaruti V e r sa Maruti Vitara Maruti W agon - 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 onlycar to win it so many times.

M800, WagonR and Swift topped their segments in the TNS TotalCustomer Satisfaction Study Leadership in the JD Power InitialQuality Study - Alto number one in its segment for the 2nd time ina 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 Power APEALstudy.

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 respectedcompanies in India-Oct 04.

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

2004 Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in SalesSatisfaction No.1 in Product Quality (Esteem and Alto) and No. 1in Product 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.

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.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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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 Nielson ORG-MARG.

ORGANIS A TION C H A R T

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Ahaadmhiar M. Khan

Manager Loan

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HR V ISION

Lead and Facilitate continuous change towards organizationalexcellence ; create a learning and vibrant organization with highsense of pride amongst its members.

HR INITIATIVES

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

Improve the performance Appraisal system - its process, skill

& usage

Introduce a Potential Appraisal System

Improvements in internal & external Training & its effectiveutilization. Training need identification

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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

CULTURE BUIL DING INITIATIVES SINCE IN CEPTI ON

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

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FOCUS OF E FFECT I VE M ANAGEMENT P ROCESS SI N CEINCEPTION

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 unionizedstaff.

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 SUCC ESSION

Transparent Recruitment & Selection process

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Recruitment on an All India Basis no sector or regionspecific.

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.

M A T T ER U SUAL L Y DIS C USSED IN THEMARUTI IN D UCTION

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 financingoptions 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 acustomer to do need based selling

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Induct ion program

Objective: The objective of this program is to facilitate smoothinduction of the new DSEs into their place of work i.e. Marutidealerships. This program attempts to orient the new DSEs on a fewimportant parameters, which are listed below:

Overview of Maruti and Suzuki Building understanding of the car market in India and

various segments

Understand MULs product range and positioning in eachsegment

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

customer to do need based selling

Role of financing as a sales tool and the various financingoptions available

Ensuring personal effectiveness Understand the attributes of a good DSE

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ME A NING OF R E C RUITMENT

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 withinor outside of an o r ga n izatio n ) for a job vacan cy, in a most timely and

cost e f fe c tive manner

R E CRUITMENT PRO C ESS OF M AR U TI U DYOG L TD

The recruiting procedure at a Maruti dealership is as follows:

For a part icular city

For a part icular Dealership

The dealership should release an advertisement.

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Depending on avai lability of infrastructure

Interview of shortlisted/ quali fied personnel

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MEANING OF SELEC TION

It is the process of searching the potential candidate. It is negative innature in the Indian context. But it is positive in the US context.

Steps in Selection Process of Maruti ud yog 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 anunqualified 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 positionto be filled.

.

1} Preliminary Interview (screening applications)

Initial screening is done to weed out totally

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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 expectedand 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 allthe 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

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attitudes, behavior and performance. Tests are useful when the

number of applicants is large, as at best it reveals that thecandidates 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 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

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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

physical examination either to the companys physician or toa 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.

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

employees health at the time of selection. This record willhelp 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

and addresses of two or more persons who know him well. These may be his previous employers, heads of education institutions or publicfigures. These people are requested to provide their frank opinion about the candidate without incurring any liability. Ingovernment and public sector organizations, candidates are generally

required to route their applicationsthrough 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 becausethey are generally biased in favor of the candidate.

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(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,

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

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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 thehuman 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.

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. Insome organizations, a contract of service is signed by both the candidateand 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

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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 employment

will 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

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 iscalled induction. At this juncture various induction

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courses are done to new recruit in order to acclimatize them with thenew working environment.

10} Follow up (Evaluation)

All selection should be validated by follow-up, it a stage whereemployee is asked how he or she feels about progress to dateand the worker s immediate supervisor is asked for

comments, which are compared with the notes taken at theselection

interview. If a follow-up is unfavourable it is probable that selectionhas been a fault; the whole process from job specification to interview isthen reviewed to see if a better choice can be made next time.

Train ing

Maruti arranges the training at several intervals. The training ismandatory for all the employees. The training schedule of all employees

is maintained by the HR manager.EDP

In the EDP Department following are managed:

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

IMPORTANCE OF TRAINING

O p ti m u m Utilization of H u man R esourc e s Training and Developmenthelps in optimizing the utilization of human resource that further helpsthe employee to achieve the organizational goals as well as their individual goals.

D evelo p m ent of Hu m an Resources Training and Development helpsto provide an opportunity and broad structure for the development of human resources technical and behavioral skills in an organization. Italso helps the employees in attaining personal growth.

D evelo p m ent of skills of e m p lo y ees Training and Development helpsin increasing the job knowledge and skills of employees at each level. Ithelps to expand the horizons of human intellect and an overall

personality of the employees. Produc t ivi ty Training and Development helps in increasing the

productivity of the employees that helps the organization further toachieve its long-term goal.

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T e a m sp i r i t Training and Development helps in inculcating the senseof team work, team spirit, and inter-team collaborations. It helps ininculcating the zeal to learn within the employees.

O r ganiz a tion Culture Training and Development helps to developand improve the organizational health culture and effectiveness. It helpsin creating the learning culture within the organization.

O r ganiz a tion Cl i mate Training and Development helps building the

positive perception and feeling about the organization. The employeesget these feelings from leaders, subordinates, and peers.

Qual i ty Training and Development helps in improving upon thequality of work and work-life.

Healt h y w ork - enviro n me n t Training and Development helps increating the healthy working environment. It helps to build goodemployee, relationship so that individual goals aligns withorganizational goal.

Health and Safe ty Training and Development helps in improving thehealth and safety of the organization thus preventing obsolescence.

Mor a le Training and Development helps in improving the morale of

the work force.

I mage Training and Development helps in creating a better corporateimage.

Pro f itabili ty Training and Development leads to improved

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profitability and more positive attitudes towards profit orientation.

Training and Development aids in organizational development i.e.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 successfulworkers and managers usually display.

Train ing Detai ls

The strength of any organization is its manpower. Each organizationwould like to have executives who are well trained so that they can bemore productive. The vehicle manufacturers conduct several trainings so

that they can achieve their goals. In the Training master form, you canenter the information about the training, which have been conductedduring a particular time period. We are also maintaining the informationregarding 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 MISreports. The details provided here can help the management to find outan efficient person for a special task. Searching facility is also available,

so you can find out the total information of a particular training with justone click over there.

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SALES A ND T R AINING DE P A R TM E NT OF M ARUTI U D YOG

V is ion

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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 andcustomer 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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T R AINING PRO C ESS For Sales E xecu t ives:

1.Induction - Ai m s to provide an understanding of the automobileindustry, MUL, its policies and products. (2 Days)

2.Product progr a m s- 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.Se l ling Skills/ Consu l tative Selling Proce s s- Enables executives tounderstand customer needs, sales processes etc and enables them toapply learning in actual selling. (2 Days)

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4. Cust o mer 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.Advisorfor l ifeprogr a m : In this changed competitive environment therole 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 Advisorfor life' and make that one-time customer into his 'Customer for life' .He has to be Single Window Interface with his customers on allmatters related to cars i.e. finance, insurance, Extended warranty, MGP,MGA, service etc. (2 Days)This training trains the Sales Executives onthe concept of 'Advisor for Life' and helps them become a Single PointContact with the customer.

6.Progr a m for D eal e r sales Executives hand l ing C orpor a te andIn s titution a l Sales. (2 Days)

7.Delive r y Proce s s : The training program on 'Delivery Process' has been developed as delivery now has the maximum weight age in the newfactor structure for SSI. It not only focuses on the processes to befollowed for delivery but also makes the DSE realize the importance of agood delivery (delivery is not the end of a sale but a beginning of arelationship)

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T rai n ing p r ocess f or Sales Managers /General m a ngers/ BranchHeads

1.Dealers h ip Manag e me n t Progr a m : for second-generation dealers, andGMs and RO executives on how to manage entire DealershipOperations. Financial Management, staff management, motivation, timemanagement, planning are covered. (2 Days)

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2.Sales Manage r s / T e a m Leaders Progr a m : The Training covers issueslike Sales Management (target setting and achievement, enquirymanagement, 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.BranchManagersProgr a m: 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 theoutlets 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 revenuestreams), Fundamentals of DBP, HR Management, Team Building andSupervision skills, Ability to motivate the team and get a buy in on the

business plan, Time management/Prioritizing etc

T rai n ing and Develo p m ent of dealer Sales E xecutives

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

They also should attend Car Advisor for life Program whichtrains him to be a one point contact with the customers handlingall his car related needs like finance, insurance, extendedwarranty, MGA etc and how to develop and maintainrelationship 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. C om m u nic a tion:

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

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containing articles on various aspects of product knowledge,selling skills, market etc .It is a forum for effectivecommunication of new ideas and strategies. It also providestwo-way communication.

An Annual Selling Skill Contest is organized to test the sellingskills of the sales executives. It is conducted at regional levelsand culminates in an all India level contest.

Recru it ment of Sal e s 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 aptitudeand reasoning and is a pre- interview shortlist device. It helpsdealers recruit the right profile of people for their dealership. TheRegional Office will be involved throughout the implementation of the MARS while recruiting Sales Persons. All Sales Executives needto be registered with Maruti after recruitment through extranet. Aunique Maruti Suzuki Personal Identification Number (MSPIN) isbeing issued which the DSEs have to remember and use in all

communications like Trainings, reward schemes etc

Maruti adopts `360 degree' appraisal s y stemEmployee to be evaluated not just by superiors, but alsoby peers, subordinates

It would seem that there is no corporate humanresources policy that has not had its share of controversies for being biased. With an increasingnumber of qualitative factors that affect employees at theworkplace, the performance appraisal process to make it

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as fair as possible has been the dream of every HRmanager.And now qualitative factors are not just at play in theservices sector, but also in manufacturing. With cubiclesgiving way to open offices, the top-down approach toemployee performance appraisal is also on its way out.One company that has set itself on course to furtherdemonstrating and opening up its employee evaluation

process is car market leader Maruti Udyog.The company has introduced a unique 360-degreefeedback system, starting with its senior leadership. Thenew system has been co-developed with Ernst & Youngand has been put in place recently.Under the 360-degree feedback system, the employee israted not just by his superiors, but also by his peers and

subordinates."We are starting the 360-degree feedback process withemployees in the top management such as chief generalmanagers and general managers, whose performance willnow be assessed based on feedback from their peers and

junior management employees within the samedepartment. Till last year, their performance was beingappraised only by the Directors and the ManagingDirector," says Maruti's Chief General Manager (HR), MrS.Y. Siddiqui.

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Ernst & Young, in consultation with Maruti, has listed aset of leadership competencies that are expected in ageneral manager. Based on that, it has prepared aquestionnaire to which peers and subordinates canrespond online.Although acknowledged as an effective tool for leadershipdevelopment in the West, Indian companies have beenshy of introducing such a feedback system for fear of

disturbing traditional hierarchical structures.HR consultants feel that the critical issues inimplementing such a system include assuringrespondents that their feedback will remain confidentialand convincing the person receiving the feedback thatthis 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 seniormanagement personnel before the process got underway. 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 byMaruti's Managing Director, Mr Jagdish Khattar, asking

people to support the online questionnaire process. The360-degree feedback system will also include a self-appraisal by the general manager. At the end of theprocess, he can compare his self-appraisal with theassessment of his subordinates and peers.

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One of the benefits that Maruti is hoping to get out of the360-degree feedback process is the sense of empowerment and importance felt by subordinates, whenthey are asked to offer their feedback about theirsuperiors. Maruti currently has over 4,000 employees onits rolls.

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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 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 UDYOGLIMITED & 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 S T A TEMENTS M A DE BY C HIEF GENERAL M A NAGER O FMA R U TI U D YOG LIM I TED IN THE N EWS

Maruti Udyog, India's largest carmaker has been makingkey investments in several human resource initiatives.The company is currently working on a five-year people-oriented strategy, apart from initiatives that are beingtaken to make young recruits understand the philosophy,

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culture and best practices within the company. Specialemphasis 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 worldoutside and its employees in high demand, rather thanmerely 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 thebiggest is to bring about a change, where we are

acceptable to a dynamic global business scenario. Thesecond big challenge is to bring in the best HR practices,policies and systems from the global perspectives, whilebeing attuned to local requirements. We, at Maruti, arevery clear that we need to have a proper balance of global and local best practices.

The third big challenge is about the young people, onwhom our future is going to depend. They are verystrong in terms of career aspirations. Understanding theiraspirations and blending that with the company'saspirations, where talent management and retention

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comes in, constitutes this challenge.

Young peo p le today d o have h igh expectations,How do you a ddress t h at?

They are competent and very confident. So, obviouslythey are strong in their career aspirations. What earlierwas a benchmark of say 15-20 years, today's youngercrowd wants to achieve in, may be 10 years. They arevery aggressive and patience is almost irrelevant tothem. We are consciously aware of such a change. ForMaruti, which is expanding rapidly and has been in theleadership position for over two decades, these are bigchallenges. You will have competent and confident peopleand as a company, one has to keep them happy and

engaged.

How do you d o it in M aruti?

It is not a single factor theory. It is a kind of policyperspective on which a whole lot of initiatives have comeinto 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

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do several things to make them feel special. We evenpick them up from railway stations or airports, fromwherever they are coming in. There will be very seniorpeople to receive them at these places. That is the firsttouch.

Secondly, most people find it difficult to find a place tostay. They will be put up in a hostel for a year supportedby the company. They should have all the facilities,including food, Internet, phone, doctor, gymnasium andshould be close to the factory. Even the security will bemanaged by us, and not the owner.

Third, the Managing Director of the company throws awelcome dinner party for the new recruits. While it gives

them an opportunity to interact with the MD, it also actsas a tremendous

confidence booster for young people. The other importantinitiative is that of a buddy and a mentor. A three-year-old employee in the company will be a buddy to a newemployee for the first three months.

Is this buddy system unique t o Maruti? How didthis evolve?

Yes, this is unique to Maruti. It evolved from the

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feedback we have been receiving for the past 4-5 yearsfrom the youngsters. The buddy will always be a linkbetween us and the boys for the first three months. Afterthe completion of three months, a senior person of thelevel of a functional head becomes the mentor for threeto four youngsters, who can guide them on mattersrelated to their progress. The mentor has to prepare theyoungster to settle into an executive role in Maruti. Webegan this initiative three years ago and the feedbackhas been very good.

Is this system h e lping you improve your r etentionlevel?

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

I am looking at building relationships and establishing abond between employees and this more than just typicalnumbers. We at Maruti, led by our MD look at thequalitative aspects of our inputs rather than quantitative.The number of man-days is not important, but quality of training is more important. Moreover, post-trainingfeedback is important.

We are clear in our minds that this is helping retention.In many corporations, workers in the first three to sixmonths tend to be the highest casualties. Youngsters aremostly unsure of a lot of things - like all typical

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

We also have initiatives for employees who have spenttwo to three years in the company. Instead of making theHuman Resources department the sole policy maker, wehave decentralized HR into different people forums. Wehave tremendous support coming from corporatecommunications, for example, in order to strengtheninternal communications. We have a senior level HRconsulting group and a junior level HR consulting group.Policies are formulated based on the interactions withthese two groups and we try to give shape to a policythat can impact lives.

We also have a cross-functional team of youngmanagers, who come to say how that particular policycan be put in perspective. People orientation has got toppriority in the past seven years or so.

What is M aruti's tr aining philosophy?

We see to investment in both our business and people.We have a training budget, which stands at about Rs 12crores today. Recently, we took a decision to establish aworld-class Maruti training centre in two years' time. Thismight come up at the Manesar facility on a 6-8 acre plot.

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The idea has been conceptually cleared and we are in thefinal phase of planning. This centre will have a kind of infrastructure for a central umbrella for training but willoperate in a decentralized manner. We will have aresidential facility, an e-learning facility and will look atperspectives of developing our own technician level guysfor which campus recruitment can take place.

How do you n ormally go about recruiting them?

At the moment, we are going to different ITIs. We alsogive preference to people who may have worked with ustemporarily in the past three years or may have donetheir apprenticeship with us. They stand to gain a slightpreference over fresh ITI graduates. There will also be a

slight preference for those from Haryana.

Has there ever been an i ssue with f i nding t he rightquality of people?

No, we have never faced such a situation. One is, wehave professional enablers in place and have

relationships with engineering colleges, good MBAinstitutes, ITIs and external environment. We alsoparticipate in various kinds of activities they organize intheir institutes. So, we involve ourselves into relationshipbuilding all through the year.

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Can you describe a ny speci f ic initiative you aretaking th is year?

One initiative is to empower young people in terms of free and frank feedback to their seniors, to the peoplewho manage them. We have a 360 degree feedbackexercise. Each senior person gets a sample feedbackfrom a group of 12-14 people, out of which 5-6 would be

juniors, 5-6 colleagues and 2-3 their superiors. This isdone through an online process to maintainconfidentiality. The person also evaluates himself. Afterthat, profiles would emerge. Based on this, there wouldbe aggregate profiles versus self-profiles. These are ondefined leadership competencies. Structured designs

emerge. The plan is to have a workshop where we givethem the methods to initiate self-development action.

Would thi s be done i n-house?

For the first year, we have picked up Ernst & Young todo 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 andadapted them for India?

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We used to get graduate engineers and place them invarious functional divisions as per the manpowerrequirement of that particular functional division.However, there was a gap in the expectations of theyoung guy as to where he wanted to be placed. Thiscould 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 shopfloor straightaway to handle production and workersbecause this is a job they would be least fit to do withtheir level of maturity. On the other hand, they would befit to do technical related work because they would have

just come out of engineering colleges. They come withfresh minds and they are given fresh projects. After six

months, they assess the guy and then decide where he isbest suited to work.

They also suggested a routing as to how a person is putinto an area first and then gradually inducted into otherareas. This routing process was professionally thoughtabout after several years of experiments. We adopted

these changes in 2005. Earlier, we used to put all freshrecruits in the shop floor. The worst feedback used tocome from those 28-30 year old guys, out of the 100 orso we recruit every year.

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Have you re c ruited f rom the two ITIs you a doptedin January?

The first group will be maturing in July this year whereour semi-contribution can be seen. We have looked at atemporary change in the layout of machines andequipment in four of them- two managed by us directly

and the other two by our JV partners Jay Bharat Marutiand Sona Koyo. We manage two ITIs at Gurgaon andRohtak. A lot of expensive machineries in these ITIs havebeen left unused for many years and have been pressedinto use now.

A new course curriculum has already been put in place.

The NTTF is an excellent agency down south inBangalore, who manage these ITI. They call it the modelITI. We have hired them to run the ITIs for us. They arethe consultants. A senior person each is heading themanagement councils at both the Gurgaon and RohtakITIs.

Our first complete contribution will be realised in July2008, when all our initiatives will be out in place. Acentre for excellence model can be seen in July 2008 inall the four ITIs.

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Has Suz u ki picked u p any HR i nitiative f r om Marut i ?

Not really. We are two very distinct countries. Themoment I talk of people perspectives, it will have abackdrop of the social ethos, culture and other factors.We are poles apart in that sense. However, whateverwedo is quite global in HR perspective. In that sense, Suzukiis trying to open up very fast. One good complement forus here is that Suzuki is very keen on understanding thechanges 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 formalchannels of internal communication like newsletters orquarterly communication meetings, which is addressedby the MD. There are meetings where I, as the head of HR, talk to people.

There is another very powerful initiative we have startedcalled 'Tea with MD'. A small group of 18-20 peopleinteract with the managing director over some tea andcookies. It is an open forum for all. This is a monthlyexercise and selection is random. Feedback can be drawnfrom such meetings and worked accordingly.

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What is the attrition rate at Maruti t oday?

We are currently experiencing an attrition rate of 9.5percent, as against the industry (manufacturing sector)rate of 19.5 percent. In the young population, we aretouching 12 percent, which is about 22 percent in theindustry. Young here means in terms of age, experience,and his stay in the company. These young employeesconstitute about 30 percent of the total workforce.

Is there a Suzuki cult u re today? How w ill youdefine i t?

The Suzuki culture has been a tremendous gain forMaruti for the last 25 years. It was a judicious mix in theJV relationship. The typical capabilities were with SuzukiJapan, not with us. Similarly, facets of marketing, salesand HR were with the locals. Contributions from both thepartners were used to the optimum levels.

Las t l y , what is Marut i 's pol icy on empl o y ing wome n ?

There were jobs in the automotive industry that werehistorically considered tough for women, especially in theshop floor, marketing, sales, and engineering. Over the

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last four years, we have taken a call in the HR consultinggroup that recruitments will be made based oncompetencies and attitudes, and not based on gender.We go to engineering colleges that are specifically forgirls. We have made it very clear in our presentations toall educational institutes that if a girl is willing to make acareer with us, we will provide her that with thatopportunity, provided she is found competent. We are not

keeping a tab on numbers; we recruit based onprofessional competencies. We broke that barrier

consciously four years ago .

PROJ E CT V IS T A AR R EL A TED WITH SE L ECTIONAND ORIEN T A TION

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 havinggood margins in the product sale and full capacity utilization of the plantfacilities. The market size also had been increasing continuously withtwo digit percentage growths. However, with the Competition comingin, and with the passenger car market itself not increasing in size,

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Marutis market share, and margins and hence the profits frommanufacturing activity alone are under severe pressure. This is thetypical scenario globally also, wherein mature markets like USA andJapan the manufacturing business, on a stand-alone business, isundergoing severe pressures on bottom lines.

In this kind of a background, in order to maintain its supremacy in the passenger car market and to increase its revenues and profits, Marutidecided to venture into new service oriented businesses, which could bedeveloped as natural spin off from its core business of manufacturing. It

would also strengthen its brand image as a provider of completemobility 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 fromMaruti, indicated that Maruti captures a limited portion of the vehiclelife cycle spend towards only sale of car, with a potential to captureanother almost equivalent portion. It found that global auto majorssuccessfully tap this potential in different ways in various markets. Anumber of business options were generated and examined, leading toselection four potential businesses for Maruti to venture into viz.

Auto Finance

Insurance Distribution

Corporate Leasing and Fleet Management

Pre-owned Cars Business

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BIBLIOGRAPHY

1} Aswahthappa

2}VSP RAO

1} Maruti udyog.com

2}Google.com

W E BLOGR A PHY

3} Management paradise.com

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