8/3/2019 MUKESH 9587147119

1/38

8/3/2019 MUKESH 9587147119

2/38

ACKNOWLEDGEMENT

The goal was fixed, moves were calculated and I moved with full ofenthusiasm, vigor and keen interest.

There was a time when it proved to be on up hill task, the goal seemingbeyond my reach. But as work progressed my determination and will powergrew stronger and completion of this work further confined my belief that,

WHERE THERE IS A WILL THERE IS A WAY.

Its a sheer pleasure for me to state with candidly that this entire project is aheartily attempt to reach maximum accuracy. I therefore take this opportunitytop express my utmost gratitude and indebtness to all who have contributed

in some way.

I highly express my sincere thanks toMR. GAURAV SAXENA who helpedme throughout the project.

Last but not least I would like to pleasure a word of appreciation to myfamily & friends who supported & helped me to make this project a success.

CONTENT

1) Acknowledgement2) Objective of the study3) Organization structure4) Quick facts of MUL

8/3/2019 MUKESH 9587147119

3/38

5) Some successful stories of MUL6) Vision ,values7) Division and Departments8) Organization chart9) HR vision

10) HR initiative11) Culture building initiative since Inception12) Focus of effective management process since Inception13) Induction and Succession14) Matter usually discussed in the Induction program of MUL15) Induction program16) Meaning of Recruitment17) Process of recruitmenta) for a particular city

b) for a particular dealershipc) depending on the availability of infrastructured) for a particular qualified person18) Selection meaning19) Selection process of MUL20) Meaning of training21) Importance of training22) Sales and training department of MUL23) Training process for sales executives24) Training process for sales manager/general manager/branch manager25) Training and Development of Dealers sales executives26) Performance Appraisal in MUL27) Major findings28) Conclusion29)Appendices30) Bibliography31) webliography

Objectives

To enhance my knowledge about Recruitment and

Selection.

8/3/2019 MUKESH 9587147119

4/38

To enhance my knowledge about Training &

Development.

To convert my theoretical knowledge into practical

knowledge.

To prepare myself as a H.R. person who can easily

identify the training need through his experience which is

very essential quality of a H.R. Person & for the

organization as well.

Organization structure

DIVISION HEADS

FACTS OF MARUTI UDYOG LIMITED

Quick Facts

Year of Establishment February 1981

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

Industry Automotive - Four Wheelers

Listings & its codes BSE - Code: 532500NSE - Code: MARUTIBloomberg: MUL@INReuters: MRTI.BO

Joint Venture With Suzuki Motor Company, now Suzuki Motor Corporation, ofJapan in October 1982.

Registered & Corporate Office 11th Floor, Jeevan Prakash25, Kasturba Gandhi MargNew Delhi - 110001, IndiaTel.: +(91)-(11)-23316831 (10 lines)

http://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://www.surfindia.com/automobile/suzuki-motor-corporation.html

8/3/2019 MUKESH 9587147119

5/38

Fax: +(91)-(11)-23318754, 23713575Telex: 031-65029 MUL IN

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

Website http://www.marutiudyog.com/

Segment and Brands

Products Brands

Four Wheelers Maruti 800 Maruti Alto Maruti Baleno

Maruti Esteem Maruti Grand Vitara XL-7 Maruti Gypsy King

Maruti Omni Maruti Suzuki SX4 Maruti Swift

Maruti Versa Maruti Vitara Maruti Wagon-R

Maruti Zen

Awards & Accolades

2005 Number one in JD Power SSI for the second consecutive year.

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

M800, WagonR and Swift topped their segments in the TNS TotalCustomer Satisfaction Study Leadership in the JD Power Initial QualityStudy - Alto number one in its segment for the 2nd time in a row, Esteemnumber one in its segment for the 3rd year in a row, Swift number one inthe premium compact segment.

WagonR and Esteem top their segments in the JD Power APEAL study.

TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study(#1 in Auto sector)-Feb 05.

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

First Indian car manufacturer to reach 5 million vehicles sales.

Business World ranks Maruti among top five most respected companiesin India-Oct 04.

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

2004 Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales

http://www.marutiudyog.com/http://www.surfindia.com/automobile/maruti-800.htmlhttp://www.surfindia.com/automobile/maruti-alto.htmlhttp://www.surfindia.com/automobile/maruti-baleno.htmlhttp://www.surfindia.com/automobile/maruti-grand-vitara.htmlhttp://www.surfindia.com/automobile/maruti-gypsy-king.htmlhttp://www.surfindia.com/automobile/maruti-suzuki-sx4.htmlhttp://www.surfindia.com/automobile/maruti-swift.htmlhttp://www.surfindia.com/automobile/maruti-versa.htmlhttp://www.surfindia.com/automobile/maruti-wagonr.htmlhttp://www.surfindia.com/automobile/maruti-zen.htmlhttp://www.marutiudyog.com/http://www.surfindia.com/automobile/maruti-800.htmlhttp://www.surfindia.com/automobile/maruti-alto.htmlhttp://www.surfindia.com/automobile/maruti-baleno.htmlhttp://www.surfindia.com/automobile/maruti-grand-vitara.htmlhttp://www.surfindia.com/automobile/maruti-gypsy-king.htmlhttp://www.surfindia.com/automobile/maruti-suzuki-sx4.htmlhttp://www.surfindia.com/automobile/maruti-swift.htmlhttp://www.surfindia.com/automobile/maruti-versa.htmlhttp://www.surfindia.com/automobile/maruti-wagonr.htmlhttp://www.surfindia.com/automobile/maruti-zen.html

8/3/2019 MUKESH 9587147119

6/38

Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 inProduct Appeal (Esteem and Wagon R).

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

Business World ranked us among the country's five most respectedcompanies.

Business World ranked us the country's most respected automobilecompany.

Voted Manufacturer of the year by CNBC.

Voted one of India's Greenest Companies by Business Today-AC NielsonORG-MARG.

ORGANISATION CHART

8/3/2019 MUKESH 9587147119

7/38

Team LeaderManager Sales-Bharat Salwan

Sales ConsultantSales ConsultantLobby Manager-Vineeta

Support staff: Drivers,Peons etc.Manager CorporateSales-

Sales Consultant

(CorporateSales)Sales Consultant(Corporate Sales)

Delivery

Manager-Support staff: Billing, ServiceAdvisor etc.

Manager

Accessories-Aamir M.

Khan

Accessories salesstaff:Counter, Channel etc.

Manager MI &Call Centre

MI staff: Field Execs,

Telecallers etc.GM(Sales)CEOCCM-

SupreetChadha

CCEManager DSA

Sales-SunilArora

IT SupportStaff

HR- mgnrMudra Mehra

ManagerLoan

Mr ALoa

8/3/2019 MUKESH 9587147119

8/38

8/3/2019 MUKESH 9587147119

9/38

Periodic communication meeting at various level; Roll out of Vision

Raise cost consciousness for cost control and reduction

Exposure on Brand Strategy to all non- marketing staff

Retention of Talent

CULTURE BUILDING INITIATIVES SINCE INCEPTION

Japanese Management philosophy of Team Spirit

Common uniform

Open office

Common Canteen

Open Office Easy accessibility, Speedy

Communication and decision making

Morning Meetings

Morning Exercises

FOCUS OF EFFECTIVE MANAGEMENT PROCESS SINCEINCEPTION

Management Committee Meetings every Tuesday

Single unaffiliated Union

Excellent Industrial Relation scenario

No loss of monday due to strike/lockout etc. in past 5 yrs.

Maruti Udyog Sahyog Samiti a forum for non unionized staff.

8/3/2019 MUKESH 9587147119

10/38

Declared organization structure Workers (Technical / Assistant.),Supervisors, Executives, Managers

Top Driven HR MD is also Director HR

HRs role of a facilitator

Line managers as HR Managers

Year of the Customer

HR Internal Customer Focus

Focus on Internal & External Customer.

INDUCTION AND SUCCESSION

Transparent Recruitment & Selection process

Recruitment on an All India Basis no sector or region specific.

Engineers CAMPUS - IITs/RECs/Rorkee /HBTI

ALL-INDIA TEST

MBAs IIMs/XLRI

CAs - Rank Holders

India Exam & Apprenticeship In MUL

Lateral Entry for Experienced Professionals.

MATTER USUALLY DISCUSSED IN THE MARUTIINDUCTION

Overview of Maruti and Suzuki

8/3/2019 MUKESH 9587147119

11/38

Building understanding of the car market in India and varioussegments

Understand MULs product range and positioning in each segment

Understanding the basics in the automobile industry

Role of financing as a sales tool and the various financing optionsavailable

Ensuring personal effectiveness

Understand the attributes of a good DSE

Overview of each Maruti model and the MUL Advantage

Overview of the selling process and how to uncover needs of acustomer to do need based selling

Induction program

Objective: The objective of this program is to facilitate smooth induction ofthe new DSEs into their place of work i.e. Maruti dealerships. This programattempts to orient the new DSEs on a few important parameters, which arelisted below:

Overview of Maruti and Suzuki

Building understanding of the car market in India and various segments

Understand MULs product range and positioning in each segment

Understanding the basics in the automobile industry

Overview of each Maruti model and the MUL Advantage

Overview of the selling process and how to uncover needs of a customerto do need based selling

8/3/2019 MUKESH 9587147119

12/38

Role of financing as a sales tool and the various financing optionsavailable

Ensuring personal effectiveness

Understand the attributes of a good DSE

MEANING OF RECRUITMENT

It is the process of searching the potential candidate and offers him or her thejob. It is positive in nature in the Indian context.

Process of identifying and hiring best-qualified candidate (from within or

outside of an organization) for ajob vacancy, in a most timely and costeffective manner

RECRUITMENT PROCESS OF MARUTI UDYOG LTDThe recruiting procedure at a Maruti dealership is as follows:

For a particular city

For

a particular Dealership

The dealership should release an advertisement.

http://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/candidate.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/job.htmlhttp://www.businessdictionary.com/definition/cost.htmlhttp://www.businessdictionary.com/definition/effective.htmlhttp://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/candidate.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/job.htmlhttp://www.businessdictionary.com/definition/cost.htmlhttp://www.businessdictionary.com/definition/effective.html

8/3/2019 MUKESH 9587147119

13/38

Depending on availability of infrastructure

Interview of shortlisted/ qualified personne l

MEANING OF SELECTION

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

Steps in Selection Process of Maruti udyog ltd

Selection process consists of a series of steps, at each stage, factsmay come light which may lead to the rejection of the applicant. It is aseries of successive hurdles or barriers which an applicant must cross.These hurdles or screens are designed to eliminate an unqualifiedcandidate at any point in the selection processThere is no standards selection procedure to be used in all

organizations or for all jobs. The complexity of selection procedures increases with the level and responsibility of the position to be filled..1} Preliminary Interview (screening applications)

Initial screening is done to weed out totallyundesirable/unqualified candidates at the outset. It is essentially a

8/3/2019 MUKESH 9587147119

14/38

sorting process in which prospective candidates are given thenecessary information about the nature of the job and theorganization, at the same time, the necessary information is alsoelicited from the candidates about their education, skills,experience, salary expected and the like. It helps to determine

whether it is worthwhile for a candidate to fill up the applicationform.

2} Application Form

Application form is a traditional and widely used device forcollecting information from candidates. It should provide all theinformation relevant to selection, where reference for caste, religion,

birth place, may be avoided as it may be regarded an evidence of

discrimination.

3}Selection Test

Psychological tests are being increasingly used in employeeselection, where a test may involve some aspect of an individualsattitudes, behavior and performance. Tests are useful when thenumber of applicants is large, as at best it reveals that thecandidates who scored above the predetermined cutoff points arelikely to be more successful than those scoring below the cutoff

point.

4} Employment Interview

Interview is an essential element of selection and no selection procedure is complete without one or more personal interviews,where the information collected through application letter or

application forms and tests can be cross-checked in the interview,where candidates demonstrates their capabilities and strength inrelevant to their academic credentials. selection in interview serves three

purposes:

a) obtaining information about the background, education, training,work history and interests of candidate

8/3/2019 MUKESH 9587147119

15/38

b) giving information to candidates about the company, the specificjob and human resource policies; and

c) establishing a friendly relationship between the employer and thecandidate so as to motivate the successful applicant to work for

the organization.

However, in practice interview becomes a one-sided affair servingonly the first purpose.

5} Medical Examination

Applicants who have crossed the above stages are sent for a physical examination either to the companys physician or to a

medical officer approved for the purpose. Such examination servesthe following purposes:-

a) It determines whether the candidate is physically fit to perform the job, where those who are physically unfit arerejected.

b) It reveals existing disabilities and provides a record of theemployees health at the time of selection. This record willhelp in settling companys liability under the workmencompensation Act for claim for any injury.

c) It prevents the employment of people suffering fromcontagious diseases.

d) It identifies candidates who are otherwise suitable but requirespecific jobs due to physical handicaps and allergies.

6} Reference Checks

The applicant is asked to mention in his application form, the namesand addresses of two or more persons who know him well. These may be his

previous employers, heads of education institutions or public figures. These people are requested to provide their frank opinion about the

8/3/2019 MUKESH 9587147119

16/38

candidate without incurring any liability. In government and public sectororganizations, candidates are generally required to route their applicationsthrough their present employers, if any. The opinion of referees can beuseful in judging the future behavior and performance of candidate, but is notadvisable to rely exclusively on the referees because they are

generally biased in favor of the candidate.(a) Most candidates are employed at the time of their application, and do not

wish their employers to know they are looking elsewhere.

(b) Because of(a) a prospective employer would be breaking a confidence ifhe or she asked for a reference before an offer of a jobhad been made and accepted.

(c) By the time an offer has been accepted, selection is over and thereference is too late to affect it.

(d) An offer may be made subject to satisfactory references, but asmost references are received after the candidate has started work,they can only be used to warn managers of possible faults in thecandidate which in serious cases may eventually lead to warningsfollowed by dismissal.

(e) Employers giving references are usually extremely cautious; manyreferences merely state the job title, the date of employment, andreasons for leaving.

(f) References are occasionally biased, giving a good reference tohasten an employees departure or a poor one because of a grudge.Therefore, the best references are obtained in person, where there

is a chance to see whether nonverbal behavior matches what is said. Ifsuch a meeting cannot be arranged, telephoning is the next bestalternative.

7} Final Approval

In most of the organizations, selection process is carried out by thehuman resource department, where the decisions of the department are

8/3/2019 MUKESH 9587147119

17/38

recommendatory. The candidates shortlisted by the department are finallyapproved by the executive of concerned departments or units.

8} Employment.

Employment is offered in the form of an appointment lettermentioning the post, the rank, the salary grade, the date by which thecandidate should join and other terms and conditions in brief. In someorganizations, a contract of service is signed by both the candidate and therepresentative of the organization. It is at this point where a selected applicantis handled with a letter of offer for a job:

a) The wage or salary offered must not only be appropriate to the joband attractive to the candidate but consistent with the earnings of

present employees.

b) The job must be named and any special conditions stated, forinstance, the first year you will be under training at the head office,then you will be transferred to up-country branches.

c) The candidate must know the essential conditions of employment,such as hours of work, holidays, bonuses and fringe benefits.

d) Any provisos must be clearly stated, for example, your employmentwill be subject to satisfactory references and medical examinations.Appointment is generally made on probation of one or two years, whereupon satisfactory performance during this period, the candidate is finallyconfirmed in the job on the terms employed with, whether permanent orcontractual basis.

9} Induction.

The process of receiving employees when they begin work,introducing them to the company and to their colleagues, and informingthem of the activities, customs and traditions of the company is calledinduction. At this juncture various inductioncourses are done to new recruit in order to acclimatize them with the newworking environment.

8/3/2019 MUKESH 9587147119

18/38

8/3/2019 MUKESH 9587147119

19/38

Development of skills of employees Training and Development helps inincreasing the job knowledge and skills of employees at each level. It helps toexpand the horizons of human intellect and an overall personality of theemployees

. Productivity Training and Development helps in increasing theproductivity of the employees that helps the organization further to achieve itslong-term goal.

Team spirit Training and Development helps in inculcating the sense ofteam work, team spirit, and inter-team collaborations. It helps in inculcatingthe zeal to learn within the employees.

Organization Culture Training and Development helps to develop andimprove the organizational health culture and effectiveness. It helps increating the learning culture within the organization.

Organization Climate Training and Development helps building thepositive perception and feeling about the organization. The employees getthese feelings from leaders, subordinates, and peers.

Quality Training and Development helps in improving upon the quality ofwork and work-life.

Healthy work-environment Training and Development helps in creatingthe healthy working environment. It helps to build good employee,relationship so that individual goals aligns with organizational goal.

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

Morale Training and Development helps in improving the morale of thework force.

Image Training and Development helps in creating a better corporateimage.

Profitability Training and Development leads to improved profitability and

8/3/2019 MUKESH 9587147119

20/38

more positive attitudes towards profit orientation.

Training and Development aids in organizational development i.e.Organization gets more effective decision making and problem solving. Ithelps in understanding and carrying out organizational policies

Training and Development helps in developing leadership skills, motivation,loyalty, better attitudes, and other aspects that successful workers andmanagers usually display.

Training Details

The strength of any organization is its manpower. Each organization wouldlike to have executives who are well trained so that they can be more

productive. The vehicle manufacturers conduct several trainings so that theycan achieve their goals. In the Training master form, you can enter theinformation about the training, which have been conducted during a particulartime period. We are also maintaining the information regarding the attendanceof the executives in a specific training. That is, how many executives out ofthe given list have attended the training? With the help of these trainingdetails we are generating various MIS reports. The details provided here canhelp the management to find out an efficient person for a special task.Searching facility is also available, so you can find out the total information ofa particular training with just one click over there.

8/3/2019 MUKESH 9587147119

21/38

SALES AND TRAINING DEPARTMENT OF MARUTI UDYOG

Vision

8/3/2019 MUKESH 9587147119

22/38

8/3/2019 MUKESH 9587147119

23/38

1.Induction - Aims to provide an understanding of the automobile industryMUL, its policies and products. (2 Days)

2.Product programs- Imparts complete knowledge on MUL product vis--viscompetition. Various programs are Segment A1, Segment A2, Segment A3and Versa, Grand Vitara XL 7. (2 Days)

3.Selling Skills/ Consultative Selling Process- Enables executives tounderstand customer needs, sales processes etc and enables them to applylearning in actual selling. (2 Days)

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

pre-requisite for excellent performance in any work area. The program aims athelping one to build a positive attitude and better interpersonal skills and toenable better customer handling. (3 Days)

5.Advisor for life program : In this changed competitive environment the roleof Dealer Sales Executive is seen more than a person who is selling cars to thecustomers. He is expected to be the Customer's ' Car Advisor for life' andmake that one-time customer into his 'Customer for life'. He has to be SingleWindow Interface with his customers on all matters related to cars i.efinance, insurance, Extended warranty, MGP, MGA, service etc. (2 Days)Thistraining trains the Sales Executives on the concept of 'Advisor for Life' andhelps them become a Single Point Contact with the customer.

6.Program for Dealer sales Executives handling Corporate and InstitutionalSales. (2 Days)

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

developed as delivery now has the maximum weight age in the new factorstructure for SSI. It not only focuses on the processes to be followed fordelivery but also makes the DSE realize the importance of a good delivery(delivery is not the end of a sale but a beginning of a relationship)

8/3/2019 MUKESH 9587147119

24/38

Training process f or Sales Managers /General mangers / Branch Heads

1.Dealership Management Program: for second-generation dealers, and GMsand RO executives on how to manage entire Dealership Operations. FinancialManagement, staff management, motivation, time management, planning arecovered. (2 Days)

2.Sales Managers/Team Leaders Program: The Training covers issues likeSales Management (target setting and achievement, enquiry management

resource and time management etc), Supervisory skills (Performancemanagement, leadership etc), Practical Coaching skills, knowledge of MarutiFinance, Maruti Insurance Extended warranty, MGA, True Value etc and CarAdvisor for life concept. (2 Days)

3.Branch Managers Program: Many of our dealers have multiple outletsWhile the owners sit at any one outlet and control the others from there,different branch heads that manages the day-to-day operations of the outletsmanages the other outlets. In order to ensure that they run their respectiveoutlets effectively we train them on the various aspects of dealership.

The training covers topics like -Making a business plan (for the dealership asa whole- Not only for sales but also for other revenue streams), Fundamentalsof DBP, HR Management, Team Building and Supervision skills, Ability tomotivate the team and get a buy in on the business plan, Timemanagement/Prioritizing etc

Training and Development of dealer Sales Executives

Development and Updation of Training Modules

8/3/2019 MUKESH 9587147119

25/38

8/3/2019 MUKESH 9587147119

26/38

Monitoring and Evaluation of Sales force is done on a continuous basis.

Pre-tests and post-tests are conducted during training. Feedback is taken

from participants on trainers and from trainers on participants. Monitoring

is also done through tests and audits at the dealerships.

2. Communication:

Sales Training Department sends monthly Newsletter CreatingWinners to all DSEs. It is a monthly communication containingarticles on various aspects of product knowledge, selling skillsmarket etc .It is a forum for effective communication of new ideasand strategies. It also provides two-way communication.

An Annual Selling Skill Contest is organized to test the selling skillsof the sales executives. It is conducted at regional levels andculminates in an all India level contest.

Recruitment of Sales Executives:

SAT has developed a CD based Test for recruitment as a part of Maruti Recruitment System(MARS). The test checks sales aptitude and reasoning and is a pre- interview shortlist device. Ithelps dealers recruit the right profile of people for their dealership. The Regional Office will beinvolved throughout the implementation of the MARS while recruiting Sales Persons. All SalesExecutives need to be registered with Maruti after recruitment through extranet. A uniqueMaruti Suzuki Personal Identification Number (MSPIN) is being issued which the DSEs have toremember and use in all communications like Trainings, reward schemes etc

Maruti adopts `360 degree' appraisal system

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

8/3/2019 MUKESH 9587147119

27/38

8/3/2019 MUKESH 9587147119

28/38

One of the benefits that Maruti is hoping to get out of the 360-degree feedback

process is the sense of empowerment and importance felt by subordinates, when

they are asked to offer their feedback about their superiors. Maruti currently hasover 4,000 employees on its rolls.

FINDINGS

1) They treat all the employees equally

2) They tries there best to increase the efficiency of the employees by providing them different

motivation programs.

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

4) They focus on each and every department of the organization.

5) Having different recruitment process for different departments of the organization.

6) They provide different types of training to the different departments according to the need of the

people.

7) They take feedback from there employees on regular basis.

8) They adopts 360 degree method of performance appraisal for there employees.

8/3/2019 MUKESH 9587147119

29/38

CONCLUSION

While preparing this project report i learnt many concepts of Human resource management like

recruitment, selection, training, motivation, etc.

I have done this project with reference to MARUTI UDYOG LIMITED & i find out that many facts

while working on this project which has added a valuable experience in my life.

8/3/2019 MUKESH 9587147119

30/38

APPENDICES

THE STATEMENTS MADE BY CHIEF GENERAL MANAGER OF MARUTI UDYOG LIMITEDIN THE NEWS

Maruti Udyog, India's largest carmaker has been making key investments inseveral human resource initiatives. The company is currently working on a five-

year people-oriented strategy, apart from initiatives that are being taken to makeyoung recruits understand the philosophy, culture and best practices within the

company. Special emphasis has also been placed on training.

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

fact, envious of the corporate world outside and its employees in high demand,rather than merely having high retention levels. We spoke to Chief General

Manager (Human Resources Development), SY Siddiqui on a host of HR relatedissues.

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

challenges?

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

8/3/2019 MUKESH 9587147119

31/38

change, where we are acceptable to a dynamic global business scenario. The

second big challenge is to bring in the best HR practices, policies and systems

from the global perspectives, while being attuned to local requirements. We, atMaruti, are very clear that we need to have a proper balance of global and local

best practices.

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

depend. They are very strong in terms of career aspirations. Understanding theiraspirations and blending that with the company's aspirations, where talent

management and retention comes in, constitutes this challenge.

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

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

career aspirations. What earlier was a benchmark of say 15-20 years, today'syounger crowd wants to achieve in, may be 10 years. They are very aggressive

and patience is almost irrelevant to them. We are consciously aware of such achange. For Maruti, which is expanding rapidly and has been in the leadership

position for over two decades, these are big challenges. You will have competent

and confident people and as a company, one has to keep them happy andengaged.

How do you do it in Maruti?

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

lot of initiatives have come into play. One most important things we do when wedo on campus recruit is to make sure we offer a relationship. This is a relationship

that is built on confidence and a way that signifies that we care.

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

them feel special. We even pick them up from railway stations or airports, fromwherever they are coming in. There will be very senior people to receive them at

these places. That is the first touch.

Secondly, most people find it difficult to find a place to stay. They will be put up ina hostel for a year supported by the company. They should have all the facilities,

including food, Internet, phone, doctor, gymnasium and should be close to the

factory. Even the security will be managed by us, and not the owner.

Third, the Managing Director of the company throws a welcome dinner party forthe new recruits. While it gives them an opportunity to interact with the MD, it also

acts as a tremendous

8/3/2019 MUKESH 9587147119

32/38

confidence booster for young people. The other important initiative is that of a

buddy and a mentor. A three-year-old employee in the company will be a buddy to

a new employee for the first three months.

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

Yes, this is unique to Maruti. It evolved from the feedback we have been receivingfor the past 4-5 years from the youngsters. The buddy will always be a link

between us and the boys for the first three months. After the completion of three

months, a senior person of the level of a functional head becomes the mentor forthree to four youngsters, who can guide them on matters related to their progress.

The mentor has to prepare the youngster to settle into an executive role in Maruti.We began this initiative three years ago and the feedback has been very good.

Is this system helping you improve your retention level?

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

relationships and establishing a bond between employees and this more than justtypical numbers. We at Maruti, led by our MD look at the qualitative aspects of our

inputs rather than quantitative. The number of man-days is not important, butquality of training is more important. Moreover, post-training feedback is

important.

We are clear in our minds that this is helping retention. In many corporations,workers in the first three to six months tend to be the highest casualties.

Youngsters are mostly unsure of a lot of things - like all typical youngsters- and

are often need help to take the correct decisions.

We also have initiatives for employees who have spent two to three years in thecompany. Instead of making the Human Resources department the sole policy

maker, we have decentralized HR into different people forums. We have

tremendous support coming from corporate communications, for example, in orderto strengthen internal communications. We have a senior level HR consulting

group and a junior level HR consulting group. Policies are formulated based on theinteractions with these two groups and we try to give shape to a policy that can

impact lives.

8/3/2019 MUKESH 9587147119

33/38

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

that particular policy can be put in perspective. People orientation has got top

priority in the past seven years or so.

What is Maruti's training philosophy?

We see to investment in both our business and people. We have a training budget,which stands at about Rs 12 crores today. Recently, we took a decision to

establish a world-class Maruti training centre in two years' time. This might come

up at the Manesar facility on a 6-8 acre plot. The idea has been conceptuallycleared and we are in the final phase of planning. This centre will have a kind of

infrastructure for a central umbrella for training but will operate in a decentralizedmanner. We will have a residential facility, an e-learning facility and will look at

perspectives of developing our own technician level guys for which campus

recruitment can take place.

How do you normally go about recruiting them?

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

who may have worked with us temporarily in the past three years or may have

done their apprenticeship with us. They stand to gain a slight preference overfresh ITI graduates. There will also be a slight preference for those from Haryana.

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

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

place and have relationships with engineering colleges, good MBA institutes, ITIs

and external environment. We also participate in various kinds of activities theyorganize in their institutes. So, we involve ourselves into relationship building all

through the year.

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

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

8/3/2019 MUKESH 9587147119

34/38

their seniors, to the people who manage them. We have a 360 degree feedback

exercise. Each senior person gets a sample feedback from a group of 12-14

people, out of which 5-6 would be juniors, 5-6 colleagues and 2-3 their superiors.This is done through an online process to maintain confidentiality. The person also

evaluates himself. After that, profiles would emerge. Based on this, there would beaggregate profiles versus self-profiles. These are on defined leadership

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

we give them the methods to initiate self-development action.

Would this be done in-house?

For the first year, we have picked up Ernst & Young to do it for us. There has to bea feeling of confidentiality. We can start doing it ourselves once the system

mature.

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

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

as per the manpower requirement of that particular functional division. However,

there was a gap in the expectations of the young guy as to where he wanted to beplaced. This could lead to de-motivation, lack of interest and in fact, the person

may leave the organization.

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

handle production and workers because this is a job they would be least fit to dowith their level of maturity. On the other hand, they would be fit to do technical

related work because they would have just come out of engineering colleges. Theycome with fresh minds and they are given fresh projects. After six months, they

assess the guy and then decide where he is best suited to work.

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

gradually inducted into other areas. This routing process was professionallythought about after several years of experiments. We adopted these changes in

2005. Earlier, we used to put all fresh recruits in the shop floor. The worst

feedback used to come from those 28-30 year old guys, out of the 100 or so werecruit every year.

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

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

be seen. We have looked at a temporary change in the layout of machines and

8/3/2019 MUKESH 9587147119

35/38

equipment in four of them- two managed by us directly and the other two by our

JV partners Jay Bharat Maruti and Sona Koyo. We manage two ITIs at Gurgaon

and Rohtak. A lot of expensive machineries in these ITIs have been left unused formany years and have been pressed into use now.

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

agency down south in Bangalore, who manage these ITI. They call it the model

ITI. We have hired them to run the ITIs for us. They are the consultants. A seniorperson each is heading the management councils at both the Gurgaon and Rohtak

ITIs.

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

will be out in place. A centre for excellence model can be seen in July 2008 in allthe four ITIs.

Has Suzuki picked up any HR initiative from Maruti?

Not really. We are two very distinct countries. The moment I talk of peopleperspectives, it will have a backdrop of the social ethos, culture and other factors.

We are poles apart in that sense. However, whatever we do is quite global in HR

perspective. In that sense, Suzuki is trying to open up very fast. One goodcomplement for us here is that Suzuki is very keen on understanding the changes

that have been brought into Maruti in the last 6-7 years, ore specifically on theleadership and HR fronts.

Is there any other initiative you plan this year?

When we talk of connect with people, there are formal channels of internalcommunication like newsletters or quarterly communication meetings, which is

addressed by the MD. There are meetings where I, as the head of HR, talk to

people.

There is another very powerful initiative we have started called 'Tea with MD'. Asmall group of 18-20 people interact with the managing director over some tea

and cookies. It is an open forum for all. This is a monthly exercise and selection is

random. Feedback can be drawn from such meetings and worked accordingly.

8/3/2019 MUKESH 9587147119

36/38

What is the attrition rate at Maruti today?

We are currently experiencing an attrition rate of 9.5 percent, as against theindustry (manufacturing sector) rate of 19.5 percent. In the young population, we

are touching 12 percent, which is about 22 percent in the industry. Young heremeans in terms of age, experience, and his stay in the company. These young

employees constitute about 30 percent of the total workforce.

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

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

was a judicious mix in the JV relationship. The typical capabilities were with SuzukiJapan, not with us. Similarly, facets of marketing, sales and HR were with the

locals. Contributions from both the partners were used to the optimum levels.

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

There were jobs in the automotive industry that were historically considered toughfor women, especially in the shop floor, marketing, sales, and engineering. Over

the last four years, we have taken a call in the HR consulting group that

recruitments will be made based on competencies and attitudes, and not based ongender. We go to engineering colleges that are specifically for girls. We have made

it very clear in our presentations to all educational institutes that if a girl is willingto make a career with us, we will provide her that with that opportunity, provided

she is found competent. We are not keeping a tab on numbers; we recruit based

on professional competencies. We broke that barrier consciously four years ago.

PROJECT VISTAAR RELATED WITH SELECTION AND ORIENTATION

Maruti has been the market leader in the passenger car segment for the past several years and has beenreaping the benefits of being the single player in Indian Passenger Car Industry. This situation also led tohaving good margins in the product sale and full capacity utilization of the plant facilities. The marketsize also had been increasing continuously with two digit percentage growths. However, with theCompetition coming in, and with the passenger car market itself not increasing in size, Marutis marketshare, and margins and hence the profits from manufacturing activity alone are under severe pressureThis is the typical scenario globally also, wherein mature markets like USA and Japan themanufacturing business, on a stand-alone business, is undergoing severe pressures on bottom lines.

8/3/2019 MUKESH 9587147119

37/38

In this kind of a background, in order to maintain its supremacy in the passenger car market and toincrease its revenues and profits, Maruti decided to venture into new service oriented businesses, whichcould be developed as natural spin off from its core business of manufacturing. It would also strengthenits brand image as a provider of complete mobility solution for its customers.

To develop this idea, Maruti engaged M/s A.T. Kearney as consultants (Phase I). Preliminary analysisby A.T. Kearney, with support from Maruti, indicated that Maruti captures a limited portion of the

vehicle life cycle spend towards only sale of car, with a potential to capture another almost equivalentportion. It found that global auto majors successfully tap this potential in different ways in variousmarkets. A number of business options were generated and examined, leading to selection four potentialbusinesses for Maruti to venture into viz.

Auto Finance

Insurance Distribution

Corporate Leasing and Fleet Management

Pre-owned Cars Business

BIBLIOGRAPHY

1} Aswahthappa

2}VSP RAO

8/3/2019 MUKESH 9587147119

38/38

WEBLOGRAPHY

1} Maruti udyog.com

2}Google.com

3} Management paradise.com