ORGANIZATION OVERVIEWMaruti Suzuki India Limited is a publicly listedautomaker inIndia. It is a leading four-wheeler automobile manufacturer inSouth Asia.Suzuki Motor Corporationof Japan holds a majority stake in the company. It was the first company in India to mass-produce andsell more than a million cars. It is largely credited for having brought in an automobilerevolution to India. It is the market leader in India and on17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The company headquarter is inGurgaon, Haryana(near Delhi).PROFILEMaruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Untilrecently, 18.28% of the company was owned by the Indian government, and 54.2% bySuzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10,2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on theSuzuki Alto kei car which at the time was the only modern car available in India, its' only competitors- theHindustanAmbassador andPremier Padminiwere both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India andvarious several other countries, depending upon export orders. Cars similar to Marutis (butnot manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries.The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually.Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Al to tops the sales chartsand Maruti Swift is the largest selling in A2 segment. More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned bythe public and financial institutions. It is listed on the Bombay Stock Exchange and NationalStock Exchange in India.

COMPANY ANALYSIS REPORTMaruti Suzuki was born as a government company, with Suzuki as a minor partner tomake a people's car for middle class India. Over the years, the product range has widened,ownership has changed hands and the customer has evolved. What remains unchanged, thenand now, is Marutis mission to motorise India.Partner For The Joint VenturePressure started mounting on Indira and Sanjay Gandhi to share the details of the progress on the Maruti Project. Since country's resources were made available by mother toher son's pet project. A delegation of Indian technocrats was assigned to hunt acollaborator for the project. Initial rounds of discussion were held with the giants of theautomobile industry inJapanincludingToyota,NissanandHonda.SuzukiMotor Corporation was at that time a small player in the four wheeler automobile sector and had major share in the twowheeler segment. Suzuki's bid was considered negligible.MARUTI SUZUKI INDIA LTD.Maruti Suzuki India Limited (MSIL) is primarily in the business of manufacture, purchase and sale of motor vehicles and spare parts (automobiles). The other activities of the Company consist of facilitation of pre-owned car sales, fleet management and car financing. The Company offers a range of cars across different segments. It offers 14 models with over 200 variants across the industry segments like Passenger cars, utility vehicles and vans. The Company has five plants in the Gurgaon and Manesar areas of Haryana equip Maruti Suzuki with a production capability of 1.55 million units per annum. The Company passenger car include Alto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift DZire and Kizashi. During the fiscal year ended March 31, 2012 (fiscal 2012), the Company sold over 1.13 million vehicles, including 127,379 units of exports. The Company is a subsidiary of Suzuki Motor Corporation.Maruti Suzuki India Limited commonly referred to as Maruti and formerly known as Maruti Suzuki Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki. As of November 2012[update], it had a market share of 37% of the Indian passenger car market. Maruti Suzuki manufactures and sells a complete range of cars from the entry level Alto, to hatchback Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara. The company's headquarters are on Nelson Mandela Road, New D If youve gone from here to there or just about anywhere in India, chances are youve driven with us. For over 3 decades now, weve been going places with India 1982. Gurgaon, Haryana. Little did this quiet suburb of New Delhi know that it was to become the seat of Indias automobile revolution, at the Maruti Suzuki factory.In 1982, India turned out just 40,000 cars every year. The Maruti 800 rolled out and a new chapter began. Ours was a story of an obsession with customer delight, unheard of until then. It was about a commitment to create value. Of innovation, quality, creativity, partnerships, openness and learning. It was a new story of leadership. Today, Maruti Suzuki alone makes 1.5 million cars every year. Thats one car every 12 seconds. Head and shoulders above the rest, which includes every major global auto company. It was also the story of a motoring revolution-cars that delivered great performance, efficiency and environment friendliness with low cost of ownership. A story built on Suzukis belief in small cars for a big future. One that enabled millions of Indians to make driving a way of life. Indians, and India, got into the drivers seat, and we were happy to drive with them in the fast lane.So what drives us? Our relationship with the millions of Indians who drive us. Our team of over 9000 dedicated and passionate professionals. That turn out 16 cars with over 150 variants. Backed by a nationwide service network spanning 1440 Cities & towns and Sales network spread across 840 cities. 2 state-of-the-art factories, at Manesar and Gurgaon. A diesel engine plant with capacity upped. To turn out 7 lakh diesel cars a year. And a commitment to road safety that is making Indias roads safer.But millions of miles later, our driving inspiration comes from one place. Indias hopes, dreams and aspirations. Its been a great journey so far. And it feels like weve only just begun. In February 2012, the company sold its ten millionth vehicle in India.

OBJECTIVES Recruiting and Staffing. Organizational development planning Performance management Organization development Employment and compliance to regulatory concerns regarding employees. Emplyee on boarding, development, need, assessment and training Policy development and documentation Employee relationsCompany Wide Committee Facilation Company employee and community communication Compensation and benefitsEmployee safety, welfare Charitable giving Employee Services and counseling

HISTORYOriginally, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of May 2007[update], the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Suzuki. Maruti Suzuki Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to those made by Maruti in India, albeit not assembled or fully manufactured in India or Japan are sold by Pak Suzuki Motors in Pakistan.The company exports more than 50,000 cars annually and has domestic sales of 730,000 cars annually.[citation needed] Its manufacturing facilities are located at two facilities Gurgaon and Manesar in Haryana, south of Delhi. Maruti Suzukis Gurgaon facility has an installed capacity of 900,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 550,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 14,50,000 units annually.About 35% of all cars sold in India are made by Maruti. The company is 54.2% owned by the Japanese multinational Suzuki Motor Corporation per cent of Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange of India.During 2007 and 2008, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983. Maruti Suzuki offers 15 models, Maruti 800, Alto, Maruti Alto 800, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, Kizashi and the newly launched Ertiga. Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant. The company is believed to be moving towards introduction of a new version of Maruti 800 by November 2012, which will be more fuel efficient, though slightly costlier than Alto and existing Maruti 800. The Suzuki Motor Corporation, Maruti's main stakeholder, is a global leader in mini and compact cars for three decades. Suzukis strategy is to utillise light-weight, compact engines with stronger power, fuel-efficiency and performance capabilities. Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.[13] Maruti Suzuki will be introducing new 800cc model by Diwali in 2012.The model is supposed to be fuel efficient, hence more expensive.INDUSTRIAL RELATIONSSince its founding in 1983, Maruti Udyog Limited experienced few problems with its labour force. The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing process. In 1997, there was a change in ownership, and Maruti became predominantly government controlled. Shortly thereafter, conflict between the United Front Government and Suzuki started. Labour unrest started under management of Indian central government. In 2000, a major industrial relations issue began and employees of Maruti went on an indefinite strike, demanding among other things, major revisions to their wages, incentives and pensions. Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In parallel, after elections and a new central government led by NDA alliance, India pursued a disinvestments policy. Along with many other government owned companies, the new administration proposed to sell part of its stake in Maruti Suzuki in a public offering. The worker's union opposed this sell-off plan on the grounds that the company will lose a major business advantage of being subsidised by the Government, and the union has better protection while the company remains in control of the government. The standoff between the union and the management continued through 2001. The management refused union demands citing increased competition and lower margins. The central government prevailed and privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog Limited. MANESAR VIOLENCE JULY 2012On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at one of its auto factories attacked supervisors and started a fire that killed a company official and injured 100 managers, including two Japanese expatriates. The violent mob also injured nine policemen. The company's General Manager of Human Resources had both arms and legs broken by his attackers, unable to leave the building that was set ablaze, and was charred to death. The incident is the worst-ever for Suzuki since the company began operations in India in 1983. Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a monthly conveyance allowance of 10,000, a laundry allowance of 3,000, a gift with every new car launch, and a house for every worker who wants one or cheaper home loans for those who want to build their own houses.Initial reports claimed wage dispute and a union spokesman alleged the incident may be caste-related. According to the Maruti Suzuki Workers Union a supervisor had abused and made discriminatory comments to a low-caste worker. These claims were denied by the company and the police. The supervisor alleged was found to belong to a tribal heritage and outside of Hindu caste system; further, the numerous workers involved in violence were not affiliated with caste either. Maruti said the unrest began, not over wage discussions, but after the workers' union demanded the reinstatement of a worker who had been suspended for beating a supervisor.The workers claim harsh working conditions and extensive hiring of low-paid contract workers which are paid about $126 a month, about half the minimum wage of permanent employees. Maruti employees currently earn allowances in addition to their base wage. Company executives denied harsh conditions and claim they hired entry-level workers on contracts and made them permanent as they gained experience. It was also claimed that bouncers were deployed by the company. India Today claimed that its interviews of witnesses present at the plant confirms the dispute was over the suspended worker. The management insisted that they must wait for completion of inquiry underway before they can take any action on the employee suspended for beating up his supervisor. The management was then told, "you will be beaten up after we get a signal." Thereafter, the workers broke up into groups, went on to set the shop floor as well as all offices afire. They searched for management officials and proceeded with a barbaric beating of the officials at the site with iron rods.The police, in its First Information Report (FIR), claimed on 21 July that Manesar violence may be the result of a planned violence by a section of workers and union leaders. The report claimed the worker's action was recorded on close circuit cameras installed within the company premises. The workers took several managers and high ranked management officials hostage. The responsible Special Investigative Team official claimed, "some union leaders may be aware of the facts, so they burnt down the main servers and more than 700 computers." The recorded CCTV footage has been used to determine the sequence of events and people involved. Per the FIR, police have arrested 91 people and are searching for 55 additional accused. Maruti Suzuki in its statement on the unrest, announced that all work at the Manesar plant has been suspended indefinitely. A Suzuki spokesman said Manesar violence won't affect the auto maker's business plans for India. The shut down of Manesar plant is leading to a loss of about Rs 75 crore per day. On 21 July 2012, citing safety concerns, the company announced a lockout under The Industrial Disputes Act, 1947 pending results of an inquiry the company has requested of the Haryana government into the causes of the disorder. Under the provisions of The Industrial Disputes Act for wages, the report claimed, employees are expected to be paid for the duration of the lockout. On 26 July 2012, Maruti announced employees would not be paid for the period of lock-out in accordance with Indian labour laws. The company further announced that it will stop using contract workers by March 2013. The report claimed the salary difference between contract workers and permanent workers has been much smaller than initial media reports - the contract worker at Maruti received about 11,500 per month, while a permanent worker received about 12,500 a month at start, which increased in three years to 21,000-22,000 per month. In a separate report, a contractor who was providing contract employees to Maruti claimed the company gave its contract employees the best wage, allowances and benefits package in the region. Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this kind of violence has never happened in Suzuki Motor Corp's entire global operations spread across Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and the Philippines. Mr. Nakanishi went to each victim apologising for the miseries inflicted on them by fellow workers, and in press interview requested the central and Haryana state governments to help stop such ghastly violence by legislating decisive rules to restore corporate confidence amid emergence of this new 'militant workforce' in Indian factories. He announced, "we are going to de-recognise Maruti Suzuki Workers Union and dismiss all workers named in connection with the incident. We will not compromise at all in such instances of barbaric, unprovoked violence." He also announced Maruti plans to continue manufacturing in Manesar, that Gujarat was an expansion opportunity and not an alternative to Manesar. Labour disputes are endemic in the auto industry of India and have affected other manufacturers. India has strict labour laws, but their application is widely sidestepped by hiring low-wage contract workers. Manesar violence adds to India's recent incidents of labour disputes turning to violence. Analysts claim recent incidents like Manesar violence suggest a need for urgent reform of archaic Indian labour laws, the rigid rules on hiring and layoffs, which harm the formal sector and discourage investment in India. Government mandated procedures for labour dispute resolution are currently very slow, with tens of thousands of cases pending for years. The government of India is being asked to recognise that incidents such as Manesar violence indicate a structural sickness which must be solved nationally.The company dismissed 500 workers accused of causing the violence and re-opened the plant on 21 August, saying it would produce 150 vehicles on the first day, less than 10% of its capacity. Analysts said that the shutdown was costing the company 1 billion rupees ($18 million) a day and costing the company market share.The previous week company officials had announced that Maruti would scrap the practice of hiring contract workers and that the workers currently on temporary contracts would be made permanent. It would begin the process of hiring new workers on a permanent basis from 2 September 2012. In July 2013, the workers went on hunger strike to protest the continuing jailing of their colleagues and launched an online campaign to support their demands.Joint venture related issuesRelationship between the Government of India, under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media until Suzuki Motor Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992. In 1982 both the venture partners had entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director will have a tenure of five yearsR.C. Bhargava was the initial managing director of the company since the inception of the joint venture. Till today he is regarded as instrumental for the success of Maruti Suzuki. Joining in 1982 he held several key positions in the company before heading the company as Managing Director. Currently he is on the Board of Directors. After completing his five-year tenure, Mr. Bhargava later assumed the office of Part-Time Chairman. The Government nominated Mr. S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr. Bhaskarudu had joined Maruti Suzuki in 1983 after spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited as General Manager. In 1987 he was promoted as Chief General Manager. In 1988 he was named Director, Productions and Projects. The next year (1989) he was named Director of Materials and in 1993 he became Joint Managing Director.Suzuki did not attend the Annual General Meeting of the Board with the reason of it being called on a short notice. Later Suzuki Motor Corporation went on record to state that Bhaskarudu was "incompetent" and wanted someone else. However, the Ministry of Industries, Government of India refuted the charges. Media stated from the Maruti Suzuki sources that Bhaskarudu was interested to indigenise most of components for the models including gear boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for the Government and would not let it increase its stake in the venture. If Maruti Suzuki would have been able to indigenise gear boxes then Maruti Suzuki would have been able to manufacture all the models without the technical assistance from Suzuki. Till today the issue of localization of gear boxes is highlighted in the press.

NameDesignation

Ajay SethChief Financial Officer

Amal GanguliDirector

Davinder Singh BrarDirector

I V RaoSr. Managing Executive Officer

Kazuhiko AyabeManaging Executive Officer

Kazuhiko AyabeDirector

Keiichi AsaiManaging Executive Officer

Keiichi AsaiDirector

Kenichi AyukawaCEO

Kenichi AyukawaManaging Director & CEO

Kinji SaitoDirector

M M SinghSr. Managing Executive Officer

Mayank PareekManaging Executive Officer

O SuzukiDirector

Pallavi ShroffDirector

R C BhargavaChairman

R P SinghInd. Non-Executive Director

S Ravi AiyarExe. Officer (Legal) & Company Secretary

S Ravi AiyarSecretary

S Y SiddiquiSr. Managing Executive Officer

Sudam MaitraSr. Managing Executive Officer

T HashimotoExecutive Officer

Toshiaki HasuikeManaging Director

Tsuneo OhashiManaging Executive Officer

ORGANIZATION STRUCTURE

BOARD OF DIRECTORS

DIVISION HEADS

FACTS OF MARUTI SUZUKI LIMITEDQuick FactsYear of EstablishmentFebruary 1981

Vision"The Leader in The Indian Automobile Industry, Creating Customer Delight and Shareholder's Wealth; A pride of India."

IndustryAutomotive - Four Wheelers

Listings & its codesBSE - Code: 532500NSE - Code: MARUTI Bloomberg: MUL@IN Reuters: MRTI.BO

Joint VentureWith Suzuki Motor Company, now Suzuki Motor Corporation, of Japan in October 1982.

Registered & Corporate Office11th Floor, Jeevan Prakash25, Kasturba Gandhi MargNew Delhi - 110001, India Tel.: +(91)-(11)-23316831 (10 lines)Fax: +(91)-(11)-23318754, 23713575 Telex: 031-65029 MUL IN

WorksPalam Gurgaon Road Gurgaon -122015 Haryana, India Tel.: +(91)-(124)-2340341-5, 2341341-5

Websitehttp://www.marutiSuzuki.com/

Segment and BrandsProductsBrands

Four WheelersMaruti 800Maruti AltoMaruti Baleno

Maruti EsteemMaruti Grand Vitara XL-7Maruti Gypsy King

Maruti OmniMaruti Suzuki SX4Maruti Swift

Maruti VersaMaruti VitaraMaruti Wagon-R

Maruti Zen

Awards & Accolades2005 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 to win it so many times. M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in the premium compact segment. WagonR and Esteem top their segments in the JD 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 companies 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 Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R). No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto). Business World ranked us among the country's five most respected companies. Business World ranked us the country's most respected automobile company. Voted Manufacturer of the year by CNBC. Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG.

ORGANISATION CHART

Team LeaderManager Sales-Bharat SalwanSales ConsultantSales ConsultantLobby Manager-Vineeta Support staff: Drivers, Peons etc.Manager DSA Sales-Sunil AroraManager Corporate Sales-Sales Consultant (Corporate Sales)Sales Consultant (Corporate Sales)Delivery Manager- Support staff: Billing, Service Advisor etc.Manager Accessories-Aamir M. KhanAccessories sales staff: Counter, Channel etc.Manager MI & Call CentreMI staff: Field Execs, Telecallers etc.IT Support StaffHR- mgnr Mudra MehraGM (Sales)CEOCCM- Supreet ChadhaCCEManager Loan Manager Auto LoanSunil Arora

PRODUCTS AND SERVICESCURRENT AUTOMOBILES1. Omni (Launched 1984)2. Gypsy (launched 1985)3. WagonR (Launched 1999)4. Alto (Launched 2000)5. Swift (Launched 2005)6. Estilo (Launched 2006)7. SX4 (Launched 2007)8. Swift DZire (Launched 2008)9. A-star (Launched 2008)10. Ritz (Launched 2009)11. Eeco (Launched 2010)12. Alto K10 (Launched 2010)13. Maruti Ertiga(Launched 2012), seven seater MPV R3 designed and developed in India, will compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012, Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car. 14. Maruti XA Alpha based compact SUV to compete with the Ford EcoSport & Renault Duster will be launched in the year 201415. Maruti Alto 800(Launched 2012), Maruti Alto 800 is finally out with a price tag of Rs.2.44 lakh (ex-showroom New Delhi). Maruti has rolled out four Petrol variants-Alto 800 STD, Alto 800 LX, Alto 800 LXI and Alto 800 VXI and three CNG variants -Alto 800 CNG STD,Alto 800 CNG LX and Alto 800 CNG LXi. The 0.8 litre of petrol engine is very fuel efficient and pushes the car to produce high class mileage of 17 to 22km per litre. The 48 ps @ 6000 rpm (Petrol) and 41 ps @ 6000 rpm (CNG)of peak power produced by the engine is also successful on road by delivering top-notch performance.

IMPORTED AUTOMOBILES1. Grand Vitara (Launched 2007)2. Kizashi (Launched 2011)DISCONTINUED AUTOMOBILES1. 1000 (19902000)2. Zen (19932006)3. Esteem (19942008)4. Baleno (19992007)5. Versa (20012010)6. Grand Vitara XL7 (20032007)7. 800 (1983-2012)8. Alto (2000-2012)MANUFACTURING FACILITIESMaruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities have a combined production capacity of 14,50,000 vehicles annually. During a recent meeting of the Gujarat chief minister with Suzuki Motor Corp chairman & CEO Osamu Suzuki,the Chairman had said that the work on car manufacturing plant at Mandal near Ahmedabad would be started soon. Maruti Suzuki to set up second plant in Gujarat; acquires 600 acresGurgaon manufacturing facilityThe Gurgaon manufacturing facility has three fully integrated manufacturing plants and is spread over 300 acres (1.2km2). All three plants have an installed capacity of 350,000 vehicles annually but productivity improvements have enabled it to manufacture 900,000 vehicles annually. The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-house. The Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy, and Eeco.

MANESAR MANUFACTURING FACILITYThe Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600 acres (2.4km2). Initially it had a production capacity of 100,000 vehicles annually but this was increased to 300,000 vehicles annually in October 2008. The production capacity was further increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The Manesar Plant produces the A-star, Swift, Swift DZire, SX4, Ertiga and Ritz.On 25 June June 2012, Haryana State Industries and Infrastructure Development Corporation demanded Maruti Suzuki to pay an additional Rs 235 crore for enhanced land acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to pay the amount would lead to further proceedings and vacating the enhanced land acquisition. SALES AND SERVICE NETWORKAs of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states and union territories of India. It has 2,946 service stations (inclusive of dealer workshops and Maruti Authorised Service Stations) in 1,395 towns and cities throughout India. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India.Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle. MARUTI INSURANCELaunched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. LimitedThis service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception. MARUTI FINANCETo promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003 Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India. Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti claims that its finance program offers most competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the market ratesMARUTI TRUEVALUEMaruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this service in India. As of 31 March 2010 there are 341 outlets.N2N FLEET MANAGEMENTN2N is the short form of End to End Fleet Management and provides lease and fleet management solution to corporates. Clients who have signed up of this service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Sona Steering, Doordarshan, Singer India, National Stock Exchange and Transworld. This fleet management service include end-to-end solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience services and Remarketing. ACCESSORIESMany of the auto component companies other than Maruti Suzuki started to offer components and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These products are sold through dealer outlets and authorized service stations throughout India. MARUTI DRIVING SCHOOLAs part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India as well. These schools are modelled on international standards, where learners go through classroom and practical sessions. Many international practices like road behaviour and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators. A the launch ceremony for the school Jagdish Khattar stated "We are very concerned about mounting deaths on Indian roads. These can be brought down if government, industry and the voluntary sector work together in an integrated manner. But we felt that Maruti should first do something in this regard and hence this initiative of Maruti Driving Schools." ISSUES AND PROBLEMSOn 24 February 2010, Maruti Suzuki India announced recalling of 100,000 A-Star hatchbacks to fix a fuel leakage problem, for which the company will replace the gaskets. EXPORTSMaruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it does not operate in the domestic Indian market. The first commercial consignment of 480 cars were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects government was keen to encourage. Every political party expected Maruti Suzuki to earn foreign currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports.AWARDS AND RECOGNITIONThe Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki in the seventh position in 2011 and the sixth position in 2012 among the brands researched in India. Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car Company in their Reputation Benchmark Study conducted for the Auto (Cars) Sector which launched in April 2012.RAW MATERIALS Raw materials primarily comprises steel coils , aluminum and paints. Imported components are mainly purchased from Suzuki Buy more parts locally to offset any adverse impact of foreign currency fluctuations vendors work in close coordination with MSIL MSIL has a delivery instruction system MANPOWER It contains 7525 employees 4,000 service technicians 730 engineers in R & DFINANCE As of May 10 2007, Govt. of India sold its complete share to Indian financial institutions. MSIL has a good network of internal resources to finance the companys operations, expansion plans as well as capital investments.

TECHNOLOGY The IT applications of MSIL runs are mostly enterprise wide. Systems at the shop floor is connected to the central database . To ensure reliability, MSIL chose a meshed network. MSIL has also implemented an enterprise management system, called Unicenter TNG. CRM provides centralized access to the dealers and provides the best service network. RESEARCH AND DEVELOPMENT The basic objective of the R&D facility is to provide for full vehicle development and designing of vehicles to suit the specific needs of the Indian customer and component durability testing and performance evaluation. R & D centre is getting ready to develop the first dual fuel engine. The test course would provide for high-speed evaluation and will also be used for conducting acceleration tests.SIZE Maruti has half of the market share in passenger car market It has 600 outlets spread over 393 towns and cities. It has 500 dealers with strong network. 2,744 workshops across 1,139 cities.Culture Japanese culture imbibed in the employees like same uniform, common canteen etc., Unique identity to its employees, equal rights for decision making. Environment Threats from the new players Threat from substitutes: Low to medium Government policies TECHNOLOGY Recently, the company has introduced a peppy k series engine for its new car, Maruti Suzuki A-star. It is planning to develop hybrid, electrical, and multi-fuel engines. Manufacturing Global cars that is fuel-efficient and lower on CO2 emissions. TRANSFORMATION PROCESSSrategies Followed By Msil Pricing strategy - catering to all segments Offering one stop shop to customers or creating different revenue streams Repositioning of maruti products Customer centric approach Committed to motorizing IndiaMANAGEMENT The Company has a multi-tier management structure, comprising the Board of Directors at the top and followed by Managing Executive Officers, Executive Officers and Divisional Heads. MSIL divided management into three levels they are1. Division2. Department3. Section Japanese management techniques and cooperation with Suzuki motor corporation provides a different platform and exposure altogether. Fun element in MSIL TRANSFORMATION PROCESSMarketing Marutis marketing objective is To continually offer the customer new products and services that Reduce the customers cost of ownership of our cars; and Anticipate and address the customers needs and preferences in all aspects and stages of car ownership, to provide what MSIL refer to as the 360 degree customer experience.

TRANSFORMATION PROCESS

Sales network Dealer distribution networkMSIL has the largest network of dealers amongst car manufacturers in India more than 3,500 sales executives .Sales network is linked through the secure extranet-based information network. Dealers agreement Enhancing dealer performanceAfter sales service network

Creating value to each of the customers Authorized Service StationsService is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti trains the local staff. Maruti InsuranceLaunched in 2002 Maruti provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram Maruti FinanceMaruti had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan Maruti True ValueOne can buy, sell or exchange used Maruti vehicles with the help of this service in India. Accessories Maruti Driving School

SOCIAL RESPONSIBILITY National Road Safety Mission launched - a nation-wide Social responsibility (CSR) initiative to train 500,000 people in safe driving in three years. Targets reducing fresh water consumption and implement rain water harvesting. The company is moving towards making its entire fleet of cars green with advanced and efficient technologies. Promoting energy conservation.

RESEARCH METHODOLOGYSince the study undertaken by me is related to the study of mutual fund in India, the means adopted for collection of various facts and data were in the form of personal observation, officials documents, and directly interacting with the officers concerned and also directly interacting with the existing customers as well as new customer formed. It was an exploratory research. Work is mainly emphasized on the primary data. Primary data are gathered form prescribed questionnaire and by personal interview and the secondary data are collected from different books and magazines.Research refers to the systematic method consisting of defining the problem, forming the hypothesis, collecting the facts and reaching certain conclusion in the form of solution towards concerned problems. Research Methodology may be understood as a science of studying how research is done scientifically. In this we study various steps that are taken up by the researcher in his research problem along with the logic behind them. It has the wider scope as compared to research methods that is we also considered the logic behind the methods we used in the research study and explain why we are using a particular method and we are not using the other. RESEARCH DESIGNA research design is a framework or a blue print for conducting the research project. It gives details of the procedure necessary to for obtaining the information needed to solve the research problem in hand. In this way a research design lays the foundation for conducting a research product. It involves the following tasks: Defining the information needed. Designing the exploratory, descriptive and casual phases of research. Specify the measurement and scaling procedures. Constructing and pretesting the questionnaire. Specifying the sampling process and sample design as well as size.

DATA COLLECTIONThere are two sorts of data available: Primary Data Secondary DataPRIMARY DATAPrimary data are the data collected to solve a problem or take advantage of any opportunities on which a decision is depending. These data are basically observed and recorded by the researcher for the first time.SECONDARY DATASecondary data are those which are not originally collected by the investigator himself but are obtained from any published or unpublished source already existing. Secondary data are those which are already in existence and which have been collected for some other purpose than the answering of the question in hand.

ROLE OF THE HUMAN RESOURCE MANAGEMENT IN COMPANY GROWTH"Human resource" and "Manpower" redirect here. For other uses, seeHuman resource (disambiguation)andManpower (disambiguation). Human Resourcesare the set of individuals who make up theworkforceof anorganization,business sectoror aneconomy. "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view; i.e., the knowledge the individuals embody and can contribute to an organization. Likewise, other terms sometimes used include "manpower", "talent", "labor" or simply "people". The professional discipline and business function that oversees an organization's human resources is calledHuman Resource Management(HRM, or simply HR).Human Resource Management (HRM or simply HR) is the management of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will typically also serve as the company's primary liaison with the employees' representatives.HR is a product of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce. The function was initially dominated by transactional work such as payroll and benefits administration, but due to globalization, company consolidation, technological advancement, and further research, HR now focuses on strategic initiatives like mergers and acquisitions, talent management, succession planning, industrial and labor relations, and diversity and inclusion.To develop a software application that supports the application specific to the HR automation in an intranet specific to a company there by allowing the integration of all the employees pertaining to that organization. To keep track of all the other departments related to that organization such as marketing, development etc.To allow the HR of an organization to update the employee details when ever there is a change in the employee profile pertaining to that organization. To bring onto a string the employee specific suggestions and make them free to post their requirements to the HR thus bringing the organization more specific regarding the maintenance of the organization.We often hear the term Human Resource Management,Employee Relations andPersonnel Managementused in the popular press as well as by Industry experts. Whenever we hear these terms, we conjure images of efficient managers busily going about their work in glitzy offices. In this article, we look at the question what is HRM ? by giving a broad overview of the topic and introducing the readers to the practice of HRM in contemporary organizations. Though as with all popular perceptions, the above imagery has some validity, the fact remains that there is much more to the field of HRM and despite popular depictions of the same, the art and science of HRM is indeed complex. We have chosen the term art and science as HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and rigorous application of theory that is required.As outlined above, the process of defining HRM leads us to two different definitions.The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance management, change management and taking care of exits from the company to round off the activities. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was used earlier.

The second definition of HRM encompasses the management of people in organizations from a macro perspectivei.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the employment relationship fulfilling for both the management and employees.These definitions emphasize the difference between Personnel Management as defined in the second paragraph and human resource management as described in the third paragraph. To put it in one sentence,personnel management is essentially workforce centered whereas human resource management is resource centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control.Whatever the definition we use the answer to the question as to what is HRM? is that it is all about people in organizations. No wonder that some MNCs (Multinationals) call the HR managers as People Managers, People Enablers and the practice as people management. In the 21st century organizations, the HR manager or the people manager is no longer seen as someone who takes care of the activities described in the traditional way. In fact, most organizations have different departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager is responsible for managing employee expectations vis--vis the management objectives and reconciling both to ensure employee fulfillment and realization of management objectives.In conclusion, this article has briefly touched upon the topic of HRM and served as an introduction to HRM. We shall touch upon the other topics that this field covers in other articles.

PROCESSES IN HUMAN RESOURCE MANAGEMENTEach organization works towards the realization of one vision. The same is achieved by formulation of certain strategies and execution of the same, which is done by the HR department. At the base of this strategy formulation lie various processes and the effectiveness of the former lies in the meticulous design of these processes. But what exactly are and entails these processes? Lets read further and explore.The following are the various HR processes:1.Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation, Evaluation, Promotion and Layoff).2.Employee remuneration and Benefits Administration3.Performance Management.4.Employee Relations.The efficient designing of these processes apart from other things depends upon the degree of correspondence of each of these. This means that each process is subservient to other. You start from Human resource Planning and there is a continual value addition at each step. To exemplify, the PMS (performance Management System) of an organization like Infosys would different from an organization like Walmart. Lets study each process separately.TYPICAL FUNCTIONS OF A HUMAN RESOURCE MANAGERIntroduction: The Typical Functions of a HR Manager Until now, we have discussed how the HRM function in organizations works and the role of the function in organizational processes. We have also discussed the changing nature of the HRM function in recent years and how with the introduction of enterprise software, an entirely new dimension has been added to these functions.This article discusses the typical functions of a HR manager and analyzes how he or she can make a positive contribution to the organization and add value to the process. First, the HR manager has to juggle between hiring, training, appraisals, and payroll among other things. This means that a typical function of the HR manager would encompass the end to end management of the employee people lifecycle which means that the HR manager would have to take care of everything that is concerned with the people aspect right from the time the employee enters the organization till the time the employee quits or retires from the organization. Hence, the lifecycle of an employees time in an organization has to be managed and this means that the HR manager is responsible for the hiring, training, appraisals, payroll, and exit interviews.ENTRY TO EXIT: MANAGING THE EMPLOYEE LIFECYCLEIf we take each of these activities in turn, we find that hiring is done in conjunction with the line managers who put out their requirements periodically on the kind of recruits they want and the number of recruits they want. Once the request reaches the HR manager, he or she has to scour the market for potential recruits. Usually, the HR manager does not personally do this and outsources this function to a placement consultancy. The next step is the interview stage after the shortlists are done and this is an activity where the HR manager either delegates the task of assessing the potential recruits to the staffing team or does the job personally. In large organizations like Fidelity and Microsoft, there are dedicated teams for each of these activities and this is something we would be discussing in detail in subsequent articles. After the interview stage is over, the important task of fixing the salary and benefits of the successful candidates has to be done. This is usually the time when the HR manager plays a critical role as he or she has to determine the fit between the role and the candidate and decide on the quantum of salary and benefits that is appropriate to the role and after examining the budgets for the same.After these activities, the HR manager is also involved in conducting the last stage of appraisals or evaluating the appraisals. In recent years, the trend is more towards the latter where the HR manager in charge of the business unit evaluates the appraisals instead of participating in the process directly. This is done in a manner to determine the quantum of pay hike or bonuses keeping in mind the same principles that were discussed in the hiring activity. What this means is that the HR manager has to work closely with the line managers to get this done. In many organizations, employees can take their grievances to the HR managers in case they are not satisfied with their pay hikes or the quantum of benefits. They can also complain against their managers in a confidential and private manner. The last activity that the HR manager is involved in is conducting the exit interviews when employees leave the organizations. This is usually done on the last day of the employees stay in the organization and this process consist of a free and frank discussion on what the employee feels about the organization and why he or she is leaving the organization. The exit interviews offer valuable sources of insights into organizational behavior as the employees can vent their feelings on what works and what does not work in organizations.STAFFING ROLE OF THE HR MANAGER: STRATEGIC WORKFORCE PLANNINGStaffing and Recruiting during the Boom Years One of the key areas that the HRM unit works with is the staffing function. Hiring and on boarding of employees remains a critical activity that many HR managers are yet to master. This is mainly because of the unevenness of the demand and supply in the market for talent. For instance, during the heady years of the IT boom in the early years of the last decade, it was common for many division heads and line managers to walk into the HR managers office and give him or her target of employees to be recruited over the next three months in the quarter. In the US, the situation was that many HR managers were asked to take in as many H1B or temporary workers to the country on board to meet the critical shortage in staff. In Asia, because of this very reason where many techies had headed to the US and Europe, hiring became a challenge for even the most seasoned HR professionals. The implications for the HR manager are many as his or her appraisal depends on a number of targets including how many they have recruited over the last quarter or the year.THE APPRAISAL PROCESS AND THE EXIT INTERVIEWSStrategies to Deal with Shortage of Talent during the Boom YearsThe way to deal with such a situation was to ensure that the number of people being taken in was based on current and future demand scenarios and identify gaps and surpluses in key skill sets. For instance, in the US, the shortage of those with Java skills was so huge that anyone with an elementary knowledge of the skill was immediately taken in the companies. This meant that the HR unit was simply filling up positions without any strategic planning. Hence, many organizations realized that hiring people without the requisite skills just to fill up positions would do more harm than good to the companies and hence, a conscious decision was taken by the HR managers in conjunction with the line managers to have forecasts of how many employees they would need over a quarter. The point here is that the constant bickering between the HR managers and the line managers took a toll on organizational efficiency and hence, this compromise was arrived at wherein the demand for specific skill sets had to be forecasted by the line managers and the HR managers would then deal with hiring accordingly. The third aspect of the staffing and hiring activity is that many HR managers during the boom years advised the line managers to find employees from other divisions who wanted a change in their job profiles and roles. This internal filling up of positions by inter-division and intra company movement was effective in many companies like Fidelity. Further, overtime by key resources and hiring temporary workers were the norm in many companies. Of course, the overtime work was adequately compensated and employees who were doing so were given additional benefits.STAFFING STRATEGIES DURING THE ONGOING RECESSIONWith the boom years over, the HR managers in recent years are breathing easy as they no longer have to run around trying to meet recruitment targets. Of course, the current challenge before the HR managers to manage the downturn and smoothen the downsizing underway in many organizations. To ensure these objectives in these economically harsh times, HR managers are resorting to passive measures as the first line of action wherein they indicate to the employees that they are on PIP or Performance Improvement Plans and this usually results in natural attrition. Next, instead of downsizing, the HR managers are reducing recruitment so that they do not have to fire employees and instead, these employees can be accommodated elsewhere in the organization. These are some of the aspects of the strategic workplace planning within the hiring and staffing activity that some respected companies follow.

ROLE OF HUMAN RESOURCE MANAGEMENT (HRM) IN LEADERSHIP DEVELOPMENTLEADERSHIP DEVELOPMENT IN SUCCESSFUL COMPANIESThe previous articles have discussed how the HRM function is now seen as a critical and crucial component of the organizational support functions. In particular, we have analyzed how effective people management goes a long way in ensuring better economic performance. Among the components of people, management that the HRM function does is the aspect related to leadership development. Research into the HRM practices of successful companies has shown that these companies significantly outperform their peers in terms of economic profitability by following the leadership development practices discussed in this article. By successful companies, we mean those companies in the Fortune 100 list that have managed to retain their position in the firms over a decade. To put this in perspective, it needs to be remembered that many companies that were in the Fortune 100 list for a few years failed to retain their positions in subsequent years and hence, the fact that these companies have managed to stay in the hunt means that they have outperformed their peers and competitors.THE COMPONENTS OF LEADERSHIP DEVELOPMENTThe leadership development programs in these companies follow the philosophy of grounding them in value, the expected contributions from the leaders are defined, and the organizational culture geared towards inspiring leaders. Next, the performance management system in these companies is tied to the companys business strategy and it includes talent development activities and leadership objectives that are articulated clearly and succinctly. In other words, promotions are based on individual performance as well as people development activities and these in turn are linked to the business strategy and objectives. These companies also have a leadership pipeline, which means that the leadership development is embedded in their strategic workforce planning which is comprehensive, and longer term oriented. These companies also ensure that they divide their workforce into job families and the potential leaders are identified and groomed for higher roles and responsibilities. In many of these companies, it is common to find lists of potential leaders known as high potentials who are earmarked for fast track career progression based on the organizational assessment of the skills and capabilities of these leaders. Further, the recruitment and training of new employees is based on longer-term analysis of demand and supply patterns, which ensure that newer generation of leaders, are hired into the company to replace those who have made it to the higher levels.Collaboration between the HRM Function and Senior ManagementThe HRM functions in these companies work on a collaborative model with their potential leaders which means that the job of people development is not left to the HRM function or the leaders alone. Instead, the potential leaders are identified and then their performance is linked to the enabling and empowerment of others to move up the chain. In other words, the ability to spot talent and identify leaders for the future is done by both the HRM function and the senior management who work in tandem in this effort. Research into these successful companies has shown that the people management in these companies is world class and the contributing factor that differentiates these companies from others is that the HRM function plays a critical role throughout the employee lifecycle and not at the recruitment and training phase alone. The other factor is that the leaders in these companies are expected to have skill sets that match the need for adapting to the challenges of the 21st century business landscape. In other words, these companies groom the leaders of the future right from the middle management level.Closing ThoughtsFinally, leadership is a combination of natural abilities and the organizational nurturing of the employees with those skills. Hence, this interplay between nature and nurture is what determines the success or otherwise of the HRM function and the senior management efforts to develop leadership in these companies.

ROLE OF HR MANAGER IN PEOPLE ENABLING AND PEOPLE EMPOWERMENTPeople Enabling and People EmpowermentUntil now, we have discussed the role of an HR manager in various processes related to the HR function. The emphasis was on a general overview and a description of the various activities instead of specific details. This article discusses a couple of the crucial functions that an HR manager has to perform and those are related to enabling employees to perform to their potential and empowering the employees to lead fulfilling careers. In the earlier decades, organizational theory and practice limited itself to ensuring that employees are well paid and their benefits and other perks taken care of. There was little by way of ensuring personal fulfillment and job satisfaction. This was because of the predominance of manufacturing in the economies of the 1970s and the 1980s which meant that the workforce was to be treated as cogs in the machine instead of assets that the modern day HRM theory and practice follows. With the advent of the services sector, a branch of HRM known as SHRM or Strategic Human Resource Management grew in response to the changing profiles of employees and this approach when combined with the systems approach of management thought meant that the enabling of employees and the empowerment of employees were the buzzwords for HR managers.Specific Aspects of the Twin ObjectivesConcomitant with this trend, the HR managers in most firms these days focus on these aspects by constantly seeking feedback, suggesting improvements, and providing people support to the employees. in multinational companies, it is usually the case that the employees above the team leader level have one-on-ones with the HR staff where all the issues concerning them are discussed threadbare. These meetings also provide the employees with an opportunity to articulate concerns and point to any grievances that they might have with regards to their jobs, work, or the organization in general. The team members are usually assigned a people manager who performs these tasks and ensures that the employees are performing to their potential. Moreover, the HR function in conjunction with the line managers conduct periodic trainings in soft skills like communication, personal relations, and leadership. Indeed, many organizations like Fidelity have established a set protocol for employees to attend leadership development trainings that bring out the leaders in them and groom them as future managers and future CEOs. Hence, the twin objectives of people empowerment and people enabling are thus met in this paradigm.How this works in the Real WorldOf course, this does not mean that the whole situation resembles utopia where employees and the managers along with the HR staff are one big happy family. On the contrary, in most real world settings, the HR managers have a tough time convincing the employees that the organization means well for them and that they ought to look on the bright side of things instead of complaining and being bitter about issues and grievances all the time. This is where the HR managers skills and personality come into the picture as the ability to persuade, enlighten, and if necessary wield the stick play a crucial role in people management. in other words, the HR manager has to tread a fine line between giving in to the employees and following the organizational mandate. This means that a variety of strategies are usually employed by the HR managers that include some of the skills listed above in addition to the personal equations that the HR manager has with the employees.TALENT MANAGEMENT BY SUCCESSFUL COMPANIES: INSIGHTS FROM RECENT RESEARCHTalent Management by Successful CompaniesThe previous articles discussed how successful companies develop and nurture leaders and groom them for higher roles as their career progresses. The role of the HRM function is critical, as there needs to be excellence all around and not just in one area. In other words, it is not enough if a company has a brand image in the market that attracts top quality talent but is not doing well once this talent starts working in the company. Take for instance, the Indian IT behemoth, Infosys. Though working there is a dream come true for many graduates, in recent months, the company has been hit with astounding attrition, as the company is not doing well in terms of retaining and nurturing talent. On the other hand, companies like Microsoft, Google, and Apple not only attract the best talent in the market but also manage them well leading to their practices becoming a model for other companies to follow.This article analyzes the best talent management practices of successful companies and the role of the HRM function in nurturing and grooming talent.Some Aspects in Talent ManagementThe first aspect for global companies is to not be parochial in their hiring practices and instead, welcome diversity by recruiting international talent, employees from different backgrounds, and in general diversify the employee base. Next, is the identification and grooming of high potentials that would give the organization a pool of leaders from which they can draw upon when faced with a situation where leaders are needed. Though this is a practice that is followed in many companies, the successful companies also identify emerging leaders and not only those who have established themselves. The point here is that successful talent management needs the HRM staff and the senior management to draw up a list of potential leaders at both ends of the talent development chain. In other words, these companies start from the lower levels and go on till the middle and senior management levels. The third aspect of successful talent management is the provision of both vertical and horizontal job opportunities for the existing employees. This means that the employees are provided with a menu of career options that would enable them to shift role and find fulfillment in the role of their choice. The reason why this aspect is very important is that often many companies stifle their employees by not providing change of job functions or roles leading to widespread dissatisfaction among the employees.Creating a Fulfilling Work CultureThe fourth aspect of successful talent management is that these companies provide their employees with a change of work location where the reason for such a move is not to simply move talent to locations where there are shortfalls but also the need for the employees personal development is taken into consideration. The point here is that successful talent management requires that employees feel privileged working for the company and their needs for self-actualization and fulfillment be taken care of by the company. Indeed, successful companies often have people first policies where the focus is on creating a stimulated and fast-paced environment that encourages and fosters individual growth and the work environment is much more engaging than a workplace that is solely concerned with profits.MANAGEMENT OF CONTRACTORSIn recent times, there has been a marked movement towards outsourcing positions within the organization to vendors who would supply resources for the said jobs. These positions and roles are deemed to be those that can be done by resources from outside. And it is here that the contractors step in to do the job that has been outsourced. The phenomenon of using contractors for regular positions is gaining traction by the day and it is common to see many of these temporary workers doing the work that would have otherwise been done by resources employed full time by the organization. The examples of organizations using contractors as a significant portion of their workforce range from the US Defense Department to Microsoft and in India, many IT organizations like IBM employ contractors to get the job done.Historical Precedent for TempsTill recently, the practice of hiring contractors or temps was restricted to the Administrative and Support functions like HR and Infrastructure management. However, it now encompasses the areas of regular work like project delivery and execution.

The reasons for using contractors range from less overheads to filling a temporary demand that does not need hiring permanent employees. The organization need not provide health benefits and pension benefits to the contractors and hence these costs can be saved. Further, on completion of the project, the contractors can be reverted to their parent organization or the vendor. This means that the hiring organization is not burdened with excess staff.Issues with Hiring ContractorsThere are several issues that pertain to hiring and management of contractors. Many IT companies hold significant bench strength as a means of having a buffer when new projects come their way. However, for many mid-sized and small-sized organizations, maintaining bench strength is often a luxury. So, if they anticipate new projects being entrusted to them, they immediately ask the vendor to supply them with the resources that are needed for the new projects. Of course, in reality, there is often a lag between the request for new resources and the resources actually coming on board because of the time taken to screen the contractors and time taken to bring them up to speed regarding the work that needs to be done.Managing the VendorsSome issues that need to be considered before going in for contractors pertain to the way in which the liability arising out of non-performance of the contractors is handled, the extent of control that the managers have over vendors and the payment terms and conditions that organizations have with the vendors. It has been found in studies and surveys that contractors and vendors operate in the grey areas of the employer-employee relationship and hence managers need to be on their guard when dealing with vendors. Liabilities and punitive actions aimed at vendors usually end up being unresolved because of the way in which the contracts are worded. Hence, it becomes imperative for the organizations to do their due diligence before hiring vendors.To conclude, the practice of hiring vendors is expected to increase and hence there is a need for both sides to sit down and discuss the modalities of the contractual relationship before committing themselves to the same. In this way, disputes over responsibility and accountability can be amicably resolved if the contracts are worded in such a way that there is little room for ambiguity.MANAGING EMPLOYEE PERFORMANCEIntroductionManaging employee performance is one of the key drivers for organizational success in the present context of firms trying to adopt a resource centered view of the organizational. We have seen elsewhere that integrating HRM practices with those of organizational goals and strategy increases the competitive advantages for the firm. Similarly, managing employee performance within the larger framework of organizational goals is critical for organizations that count people among their key assets. As we have been mentioning throughout, firms in the service sector that lay a lot of emphasis on people need to ensure that employee performance is managed in a holistic manner.A Two Way StreetWhen we talk about employee performance, we need to remember that it is a two way process that tie in the manager and the employee with the HR manager playing the role of a mediator. For instance, any discussion about employee performance has to include the manager and the employee or the manager and the managed. Hence, it is imperative that both parties to this transaction realize their responsibilities and work together to ensure that the process is smoothened. In the succeeding sections, we discuss the role of the manager and the employee and how organizational focus on managing employee performance can play a role as well.The Role of the ManagerThe manager has a duty to ensure that his or her management of the employees is free of biases and prejudices. Its been the case across industries and verticals where the employees feel discriminated against leading to attrition, lower employee morale and in the extreme cases, lawsuits against the company. Hence, the manager has to walk the talk and not simply pay lip service to the companys policies on employee performance. During the course of working together as a team, there are bound to be instances where friction between the manager and the team and within the team manifests itself. It is incumbent upon the manager to ensure that this does not morph into a corrosive effect that threatens the very existence of the team.The Role of the EmployeeThe above section looked at the role of the manager. The manager has a duty to manage the team effectively and so does the employee have corresponding responsibilities as well. Absenteeism, Shirking Work, A negative attitude and a blas approach to work are some things that the employee must avoid. It is helpful to the employee to know that once he or she is categorized as having an attitude problem, then it would be difficult for the employee to break the perception and perform effectively. This does not mean that the employee has to take whatever comes his or her way. The point here is that the employee must use the channels available for redressal instead of sulking at work if he or she has grievances about the manager.Organizational FocusThough the role of the HR manager and the organization seems to be relatively small, it is a fact that organizational goals and culture play a very important part in ensuring that employee performance is managed to the benefit of the organization. Most of us have read about or heard the benefits of working for MNCs (Multinational Companies) in India. The reason why they are highly talked about is the perception among potential and aspiring employees that these companies treat their people well. Though the point here is not to belittle Indian companies, the objective of this section is to highlight the ways in which organizations can shape the treatment of people in theory and practice.THE HRM FUNCTION AND ITS ROLE IN RECESSIONARY TIMESThe Case for the Importance of the HRM Function even in Recessionary TimesIn these recessionary times, it is tempting for the companies to cut the budgets of the HRM function and focus on cost control and trimming as a means of profitability. Further, with the squeeze on hiring by many companies, one of the key activities of the HRM function, which is the hiring, and on boarding activity remains frozen. Therefore, there is more the case for pruning the HR budgets. However, companies need to realize that there is a strong correlation between people management and economic performance that has been conclusively proved in recent research by the consulting firm, Boston Consulting Group or BCG. The research that focused on how companies that do well on talent management, leadership development, and performance management have been shown to have significantly higher economic performance. What adds to this research is the anecdotal evidence from many multinationals that seems to prove the hypothesis that excellent HR policies makes for a well-motivated workforce that can ramp up their performance to match the increased expectations of companies during recessions. The implications are that in case organizations want to do more at the same cost, they must focus on Processual cost cutting instead of on HR budgets alone.

Handling Laid off Employee SeparationsThe second aspect of the HRM function during recessionary times is that it is often the case that the HRM staff are asked to handle the involuntary separations. These exits that are otherwise known colloquially as pink slips have to be handled with grace and respect for the employee instead of condescension and arrogance. The point here is that when employees are asked to leave, the HR managers and the HR staff have the unenviable task of making sure that the message is communicated to those employees who are being asked to leave and to handle their exits in a structured manner. With the pressure on the HR staff growing with the increased incidence of layoffs, it is not easy for the HR managers not to get affected and take things personally. However, the key aspect here is that the HR managers have to perform well under pressure and ensure that the outgoing employees are offered assistance with their job hunts for alternative jobs by giving them the use of the office space and the facilities for a week or so after their last day at work. The point here is that gestures like these go a long way in convincing the other employees that the company is not an opportunistic employer who is a fair-weather friend to them.Managing the Motivation Levels of EmployeesTalking about the impact of layoffs on the employees who have remained in the organization, the HR staff also has the challenging task of keeping these employees motivated and not making them look over their shoulders periodically to check whether they are next in line to be laid off. Indeed, this is a delicate and often-diplomatic exercises that must be carried out with finesse in the same manner exits are handled. The other aspect of the recessionary times is that more often than not, companies do not hand out pay hikes and bonuses and hence, there tends to be a slack in morale among the employees. This is another of those tasks that the HRM function has to manage in recessionary times. Given the fact that many companies are struggling to stay afloat and which leads to resignations from key employees who do not see a future for themselves in the companies, it is important to remember that the HRM function must be bolstered rather than cut down to handle these unpleasant tasks.IMPORTANCE OF HRM FOR ORGANIZATIONAL SUCCESSWe have discussed the basic concept of HRM and the ways in which it helps the organization meet its goals. In this article, we discuss the reasons for organizations to have a HRM strategy as well as the business drivers that make the strategy imperative for organizational success. It is a fact that to thrive in the chaotic and turbulent business environment, firms need to constantly innovate and be ahead of the curve in terms of business practices and strategies. It is from this motivation to be at the top of the pack that HRM becomes a valuable tool for management to ensure success.The Evolving Business ParadigmOne of the factors behind organizations giving a lot of attention to their people is the nature of the firms in the current business environment. Given the fact that there has been a steady movement towards an economy based on services, it becomes important for firms engaged in the service sector to keep their employees motivated and productive. Even in the manufacturing and the traditional sectors, the need to remain competitive has meant that firms in these sectors deploy strategies that make effective use of their resources. This changed business landscape has come about as a result of a paradigm shift in the way businesses and firms view their employees as more than just resources and instead adopt a people first approach.Strategic Management and HRMAs discussed in the articles on modern day HRM practices, there is a need to align organizational goals with that of the HR strategy to ensure that there is alignment of the people policies with that of the management objectives. This means that the HR department can no longer be viewed as an appendage of the firm but instead is a vital organ in ensuring organizational success. The aims ofstrategic managementare to provide the organization with a sense of direction and a feeling of purpose. The days when the HR manager was concerned with administrative duties is over and the current HRM practices in many industries are taken as seriously as say, the marketing and production functions.Importance of HRM for Organizational SuccessThe practice of HRM must be viewed through the prism of overall strategic goals for the organization instead of a standalone tint that takes a unit based or a micro approach. The idea here is to adopt a holistic perspective towards HRM that ensures that there are no piecemeal strategies and the HRM policy enmeshes itself fully with those of the organizational goals. For instance, if the training needs of the employees are simply met with perfunctory trainings on omnibus topics, the firm stands to lose not only from the time that the employees spend in training but also a loss of direction. Hence, the organization that takes its HRM policies seriously will ensure that training is based on focused and topical methods.In conclusion, the practice of HRM needs to be integrated with the overall strategy to ensure effective use of people and provide better returns to the organizations in terms of ROI (Return on Investment) for every rupee or dollar spent on them. Unless the HRM practice is designed in this way, the firms stand to lose from not utilizing people fully. And this does not bode well for the success of the organization.

SCOPE OF HUMAN RESOURCE MANAGEMENTHuman resources are undoubtedly the key resources in an organization, the easiest and the most difficult to manage! The objectives of the HRM span right from the manpower needs assessment to management and retention of the same. To this effect Human resource management is responsible for effective designing and implementation of various policies, procedures and programs. It is all about developing and managing knowledge, skills, creativity, aptitude and talent and using them optimally.Human Resource Management is not just limited to manage and optimally exploit human intellect. It also focuses on managing physical and emotional capital of employees. Considering the intricacies involved, the scope of HRM is widening with every passing day. It covers but is not limited to HR planning, hiring (recruitment and selection), training and development, payroll management, rewards and recognitions, Industrial relations, grievance handling, legal procedures etc. In other words, we can say that its about developing and managing harmonious relationships at workplace and striking a balance between organizational goals and individual goals.

The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it concisely. However, we may classify the same under following heads: HRM in Personnel Management:This is typically direct manpower management that involves manpower planning, hiring (recruitment and selection), training and development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity. The overall objective here is to ascertain individual growth, development and effectiveness which indirectly contribute to organizational development.It also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, traveling policies and procedures and other related courses of actions. HRM in Employee Welfare:This particular aspect of HRM deals with working conditions and amenities at workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services. It also covers appointment of safety officers, making the environment worth working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits.It also relates to supervision, employee counseling, establishing harmonious relationships with employees, education and training. Employee welfare is about determining employees real needs and fulfilling them with active participation of both management and employees. In addition to this, it also takes care of canteen facilities, crches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. HRM in Industrial Relations:Since it is a highly sensitive area, it needs careful interactions with labor or employee unions, addressing their grievances and settling the disputes effectively in order to maintain peace and harmony in the organization. It is the art and science of understanding the employment (union-management) relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behavior and maintaining work relations, collective bargaining and settlement of disputes.The main aim is to safeguarding the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on organization. It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management.The scope of HRM is extremely wide, thus, can not be written concisely. However, for the sake of convenience and developing understanding about the subject, we divide it in three categories mentioned above.

THE DIFFERENCE BETWEEN A PEOPLE MANAGER AND A PROJECT MANAGERIn recent times, there has been a trend in multinational companies to have a people manager apart from the project manager for employees in teams and units. This division of responsibilities between the people manager and the project manager has been necessitated because of the importance being given to employee enabling and employee empowering strategies. The key aspect here is thatthe people manager is responsible for the personal and professional development of the employee and the project manager is responsible for work and project related activities. Further, the appointment of a people manager distinct from the project manager is being done because of the need felt by the organizations to develop the employees in a more rounded manner and to let them actualize their potential. For instance, while the project manager looks after the project deliverables and associated work related aspects, the people manager concentrates on the personal development of skills, soft attributes, and how far the employee is fulfilled in his or her current role. The post of people manager is akin to the HR manager who is responsible for the unit but differs in the respects of having a functional individual be the people manager who can understand the functional and operational aspects as well as contribute to the personality development of the employee.How the Different Roles work in PracticeIn many multinational organizations like Fidelity and IBM, the people manager is designated from the pool of project managers and is usually responsible for two or three project teams. The additional responsibilities vested in the people manager run concurrent to their core responsibilities of looking after their own teams project deliverables. The idea here is to have an independent individual separate and distinct from the project manager to introduce objectivity and to provide an unbiased perspective to the employee and his or her needs for personal development and actualization. Further, some multinationals have also experimented with having a people manager who does not have any project related responsibilities so that the person can fully focus and concentrate on the people side of project management. The key aspect here is that the