LOTUS INSTITUTE OF MANAGEMENT
HUMAN RESOURCE MANAGEMENT
MARUTI UDYOG LIMITED
Submitted to Submitted by:
Mr.Gaurav Saxena TANVI AGARWAL
HR FACULTY PGDM_08_56
The goal was fixed, moves were calculated and I moved with full of
enthusiasm, vigor and keen interest.
There was a time when it proved to be on up hill task, the goal seeming
beyond my reach. But as work progressed my determination and will
power grew stronger and completion of this work further confined my
belief that, “WHERE THERE IS A WILL THERE IS A WAY”.
It’s a sheer pleasure for me to state with candidly that this entire project
is a heartily attempt to reach maximum accuracy. I therefore take this
opportunity top express my utmost gratitude and indebtness to all who
have contributed in some way.
I highly express my sincere thanks to MR. GAURAV SAXENA who
helped me throughout the project.
Last but not least I would like to pleasure a word of appreciation to my
family & friends who supported & helped me to make this project a
2) Objective of the study
3) Organization structure
4) Quick facts of MUL
5) Some successful stories of MUL
6) Vision ,values
7) Division and Departments
8) Organization chart
9) HR vision
10) HR initiative
11) Culture building initiative since Inception
12) Focus of effective management process since Inception
13) Induction and Succession
14) Matter usually discussed in the Induction program of MUL
15) Induction program
16) Meaning of Recruitment
17) Process of recruitment
a) for a particular city
b) for a particular dealership
c) depending on the availability of infrastructure
d) for a particular qualified person
18) Selection meaning
19) Selection process of MUL
20) Meaning of training
21) Importance of training
22) Sales and training department of MUL
23) Training process for sales executives
24) Training process for sales manager/general manager/branch
25) Training and Development of Dealers sales executives
26) Performance Appraisal in MUL
➢ To enhance my knowledge about Recruitment and
➢ To enhance my knowledge about Training &
➢ To convert my theoretical knowledge into practical
➢ 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.
FACTS OF MARUTI UDYOG LIMITED
Year of Establishment February 1981
"The Leader in The Indian Automobile Industry, Creating
Vision Customer Delight and Shareholder's Wealth; A pride of
Industry Automotive - Four Wheelers
Listings & its codes BSE - Code: 532500
NSE - Code: MARUTI
Joint Venture With Suzuki Motor Company, now Suzuki Motor
Corporation, of Japan in October 1982.
Registered & Corporate Office 11th Floor, Jeevan Prakash
25, Kasturba Gandhi Marg
New Delhi - 110001, India
Tel.: +(91)-(11)-23316831 (10 lines)
Fax: +(91)-(11)-23318754, 23713575
Telex: 031-65029 MUL IN
Works Palam Gurgaon Road
Tel.: +(91)-(124)-2340341-5, 2341341-5
Segment and 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
Awards & Accolades
• 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
• 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
• 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
• Business World ranked us the country's most respected automobile
• Voted Manufacturer of the year by CNBC.
• Voted one of India's Greenest Companies by Business Today-AC
SupportT eam Leader Service
Managerstaff:Staffstaff: Peons etc.
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Lobby Field CEO
Manager DSA Execs,
IT CCE Corporate
Vineeta Manager Loan
Lead and Facilitate continuous change towards organizational
excellence ; create a learning and vibrant organization with high
sense of pride amongst its members.
• Prepare MUL Strategic Business Plan-2000-2003; To achieve
the Vision & Goal
• Improve the performance Appraisal system - it’s process, skill
• Introduce a Potential Appraisal System
• Improvements in internal & external Training & it’s effective
utilization. Training need identification
• Systematic career planning ; Job Rotation ; Empowerment;
• Periodic communication meeting at various level; Roll out of
• 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 SINCE
• 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
• Declared organization structure Workers (Technical /
Assistant.), Supervisors, Executives, Managers
• Top Driven HR – MD is also Director HR
• HR’s 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
• 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 MARUTI
• Overview of Maruti and Suzuki
• Building understanding of the car market in India and various
• Understand MUL’s product range and positioning in each
• Understanding the basics in the automobile industry
• Role of financing as a sales tool and the various financing
• 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 a
customer to do need based selling
Objective: The objective of this program is to facilitate smooth
induction of the new DSEs into their place of work i.e. Maruti
dealerships. This program attempts to orient the new DSEs on a few
important parameters, which are listed below:
Overview of Maruti and Suzuki
Building understanding of the car market in India and various
Understand MUL’s 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
customer to do need based selling
Role of financing as a sales tool and the various financing options
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 the job. 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 a job vacancy, in a most timely and
cost effective manner
RECRUITMENT PROCESS OF MARUTI UDYOG LTD
The recruiting procedure at a Maruti dealership is as follows:
For a particular city
For a particular Dealership
The dealership should release an advertisement.
Depending on availability of infrastructure
Interview of shortlisted/ qualified personnel
MEANING OF SELECTION
It is the process of searching the potential candidate. It is negative in
nature in the 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, facts
may come light which may lead to the rejection of the applicant. It is a
series of successive hurdles or barriers which an applicant must cross.
These hurdles or screens are designed to eliminate an
unqualified candidate at any point in the selection process
There is no standards selection procedure to be used in all
organizations or for all jobs. The complexity of selection
procedures increases with the level and responsibility of the position
to be filled.
1} Preliminary Interview (screening applications)
Initial screening is done to weed out totally
undesirable/unqualified candidates at the outset. It is essentially a
sorting process in which prospective candidates are given the
necessary information about the nature of the job and the
organization, at the same time, the necessary information is also
elicited from the candidates about their education, skills,
experience, salary expected and the like. It helps to determine
whether it is worthwhile for a candidate to fill up the application
2} Application Form
Application form is a traditional and widely used device for
collecting information from candidates. It should provide all
the information relevant to selection, where reference for caste, religion,
birth place, may be avoided as it may be regarded an evidence of
Psychological tests are being increasingly used in employee
selection, where a test may involve some aspect of an individual’s
attitudes, behavior and performance. Tests are useful when the
number of applicants is large, as at best it reveals that the
candidates who scored above the predetermined cutoff points are
likely to be more successful than those scoring below the cutoff
4} Employment Interview
Interview is an essential element of selection and no selection
procedure is complete without one or more personal interviews,
where the information collected through application letter or
application forms and tests can be cross-checked in the interview,
where candidates demonstrates their capabilities and strength in
relevant to their academic credentials. selection in interview serves three
a) obtaining information about the background, education, training,
work history and interests of candidate
b) giving information to candidates about the company, the specific
job and human resource policies; and
c) establishing a friendly relationship between the employer and the
candidate so as to motivate the successful applicant to work for
However, in practice interview becomes a one-sided affair serving
only the first purpose.
5} Medical Examination
Applicants who have crossed the above stages are sent for a
physical examination either to the company’s physician or to
a medical officer approved for the purpose. Such examination serves
the following purposes:-
a) It determines whether the candidate is physically fit to
perform the job, where those who are physically unfit are
b) It reveals existing disabilities and provides a record of the
employee’s health at the time of selection. This record will
help in settling company’s liability under the workmen
compensation Act for claim for any injury.
c) It prevents the employment of people suffering from
d) It identifies candidates who are otherwise suitable but require
specific jobs due to physical handicaps and allergies.
6} Reference Checks
The applicant is asked to mention in his application form, the names
and addresses of two or more persons who know him well. These may
be his previous employers, heads of education institutions or public
figures. These people are requested to provide their frank
opinion about the candidate without incurring any liability. In
government and public sector organizations, candidates are generally
required to route their applications
through their present employers, if any. The opinion of referees can
be useful in judging the future behavior and performance of candidate,
but is not advisable to rely exclusively on the referees 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 if
he or she asked for a reference before an offer of a job
had been made and accepted.
(c) By the time an offer has been accepted, selection is over and the
reference is too late to affect it.
(d) An offer may be made ‘subject to satisfactory references’, but as
most references are received after the candidate has started work,
they can only be used to warn managers of possible faults in the
candidate which in serious cases may eventually lead to warnings
followed by dismissal.
(e) Employers giving references are usually extremely cautious; many
references merely state the job title, the date of employment, and
reasons for leaving.
(f) References are occasionally biased, giving a good reference
to hasten an employee’s 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. If
such a meeting cannot be arranged, telephoning is the next
7} Final Approval
In most of the organizations, selection process is carried out by the
human resource department, where the decisions of the department are
recommendatory. The candidates shortlisted by the department are
finally approved by the executive of concerned departments or units.
Employment is offered in the form of an appointment letter
mentioning the post, the rank, the salary grade, the date by which the
candidate should join and other terms and conditions in brief. In
some organizations, a contract of service is signed by both the candidate
and the representative of the organization. It is at this point where a
selected applicant is handled with a letter of offer for a job:
a) The wage or salary offered must not only be appropriate to the job
and attractive to the candidate but consistent with the earnings of
b) The job must be named and any special conditions stated,
for instance, the first year you will be under training at the head office,
then you will be transferred to up-country branches.
c) The candidate must know the essential conditions of employment,
such as hours of work, holidays, bonuses and fringe benefits.
d) Any provisos must be clearly stated, for example, your employment
will be subject to satisfactory references and medical examinations.
Appointment is generally made on probation of one or two years, where
upon satisfactory performance during this period, the candidate is finally
confirmed in the job on the terms employed with, whether permanent or
The process of receiving employees when they begin work,
introducing them to the company and to their colleagues, and informing
them of the activities, customs and traditions of the company is
called induction. At this juncture various induction
courses are done to new recruit in order to acclimatize them with the
new working environment.
10} Follow – up (Evaluation)
All selection should be validated by follow-up, it a stage where
employee is asked how he or she feels about progress to date
and the worker’s immediate supervisor is asked for
comments, which are compared with the notes taken at the
interview. If a follow-up is unfavourable it is probable that selection
has been a fault; the whole process from job specification to interview is
then reviewed to see if a better choice can be made next time.
Maruti arranges the training at several intervals. The training is
mandatory for all the employees. The training schedule of all employees
is maintained by the HR manager.
In the EDP Department following are managed:
➢ Post Sale Process is managed.
➢ Sales Analysis is done.
➢ Backup is taken time to time.
IMPORTANCE OF TRAINING
Optimum Utilization of Human Resources – Training and Development
helps in optimizing the utilization of human resource that further helps
the employee to achieve the organizational goals as well as their
• Development of Human Resources – Training and Development helps
to provide an opportunity and broad structure for the development of
human resources’ technical and behavioral skills in an organization. It
also helps the employees in attaining personal growth.
• Development of skills of employees – Training and Development helps
in increasing the job knowledge and skills of employees at each level. It
helps to expand the horizons of human intellect and an overall
personality of the employees
• Productivity – Training and Development helps in increasing the
productivity of the employees that helps the organization further to
achieve its long-term goal.
• Team spirit – Training and Development helps in inculcating the sense
of team work, team spirit, and inter-team collaborations. It helps in
inculcating the zeal to learn within the employees.
• Organization Culture – Training and Development helps to develop
and improve the organizational health culture and effectiveness. It helps
in creating the learning culture within the organization.
• Organization Climate – Training and Development helps building the
positive perception and feeling about the organization. The employees
get these feelings from leaders, subordinates, and peers.
• Quality – Training and Development helps in improving upon the
quality of work and work-life.
• Healthy work-environment – Training and Development helps in
creating the healthy working environment. It helps to build good
employee, relationship so that individual goals aligns with
• Health and Safety – Training and Development helps in improving the
health and safety of the organization thus preventing obsolescence.
• Morale – Training and Development helps in improving the morale of
the work force.
• Image – Training and Development helps in creating a better corporate
• Profitability – Training and Development leads to improved
profitability and more positive attitudes towards profit orientation.
• Training and Development aids in organizational development i.e.
Organization gets more effective decision making and problem solving.
It helps in understanding and carrying out organizational policies
• Training and Development helps in developing leadership skills,
motivation, loyalty, better attitudes, and other aspects that successful
workers and managers usually display.
The strength of any organization is its manpower. Each organization
would like to have executives who are well trained so that they can be
more productive. The vehicle manufacturers conduct several trainings so
that they can achieve their goals. In the Training master form, you can
enter the information about the training, which have been conducted
during a particular time period. We are also maintaining the information
regarding the attendance of the executives in a specific training. That is,
how many executives out of the given list have attended the training?
With the help of these training details we are generating various MIS
reports. The details provided here can help 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 of a particular training with just
one click over there.
SALES AND TRAINING DEPARTMENT OF MARUTI UDYOG
“Equipping MUL and Dealer Sales Fraternity with the requisite mindset,
knowledge and skills, and enhance the business value of our associates
to sustain our position of leadership and build customer loyalty to MUL”
To ensure multiple knowledge and skill development of DSEs
required selling cars and handling competition
Consultative Selling Approach.
Continuous Feedback and Performance monitoring.
To employ training as a tool to achieve customer delight and
Make DSEs as Car Advisors and be a single window interface with
The various training Programs are as follows:
TRAINING PROCESS For Sales Executives:
1.Induction - Aims to provide an understanding of the automobile
industry, MUL, its policies and products. (2 Days)
2.Product programs- Imparts complete knowledge on MUL product vis-
à-vis competition. Various programs are Segment A1, Segment A2,
Segment A3 and Versa, Grand Vitara XL 7. (2 Days)
3.Selling Skills/ Consultative Selling Process- Enables executives to
understand customer needs, sales processes etc and enables them to
apply learning 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 at helping one to build a positive attitude and better
interpersonal skills and to enable better customer handling. (3 Days)
5.Advisor for life program: In this changed competitive environment the
role of Dealer Sales Executive is seen more than a person who is selling
cars to the customers. He is expected to be the Customer's ' Car Advisor
for life' and make that one-time customer into his 'Customer for life'.
He has to be Single Window Interface with his customers on all
matters related to cars i.e. finance, insurance, Extended warranty, MGP,
MGA, service etc. (2 Days)This training trains the Sales Executives on
the concept of 'Advisor for Life' and helps them become a Single Point
Contact with the customer.
6.Program for Dealer sales Executives handling Corporate and
Institutional Sales. (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
factor structure for SSI. It not only focuses on the processes to be
followed for delivery 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
Training process for Sales Managers /General mangers/ Branch
1.Dealership Management Program: for second-generation dealers, and
GM’s and RO executives on how to manage entire Dealership
Operations. Financial Management, staff management, motivation, time
management, planning are covered. (2 Days)
2.Sales Managers/Team Leaders Program: The Training covers issues
like Sales Management (target setting and achievement, enquiry
management, resource and time management etc), Supervisory skills
(Performance management, leadership etc), Practical Coaching skills,
knowledge of Maruti Finance, Maruti Insurance Extended warranty,
MGA, True Value etc and Car Advisor for life concept. (2 Days)
3.Branch Managers Program: Many of our dealers have multiple outlets.
While the owners sit at any one outlet and control the others from there,
different branch heads that manages the day-to-day operations of the
outlets manages the other outlets. In order to ensure that they run their
respective outlets effectively we train them on the various aspects of
The training covers topics like -Making a business plan (for the
dealership as a whole- Not only for sales but also for other revenue
streams), Fundamentals of DBP, HR Management, Team Building and
Supervision skills, Ability to motivate the team and get a buy in on the
business plan, Time management/Prioritizing etc
Training and Development of dealer Sales Executives
Development and Updation of Training Modules
The Sales Training Department develops new modules along
with training agencies based on market requirements, specific
needs identified and feedback received
1. Conducting Training
• Annual Training Calendar is fixed based on:
➢ Number of Sales Executives in the sales network
➢ Training path requirement of Sales Executives
➢ Review of training programs done in the previous year
➢ Market Share/ Market situation/Focus areas and new product
• Training conducted regionally based on fixed monthly calendar.
• Training Path /Norms for all Dealer Sales persons are as follows:
➢ All Dealer Sales Executives need to attend Induction Training
before or within a month of joining the dealership (depending
on when the program is scheduled in the region)
➢ After Induction then the Sales executives needs to attend a
segment B program.
➢ They also should attend ‘ Car Advisor for life Program’ which
trains him to be a one point contact with the customers handling
all his car related needs like finance, insurance, extended
warranty, MGA etc and how to develop and maintain
relationship with customers
➢ After gaining experience, he can attend other courses like
segment C etc.
2. Monitoring and feedback:
Monitoring and Evaluation of Sales force is done on a continuous
basis. Pre-tests and post-tests are conducted during training. Feedback
is taken from participants on trainers and from trainers on
participants. Monitoring is also done through tests and audits at the
➢ Sales Training Department sends monthly Newsletter “Creating
Winners” to all DSE’s. It is a monthly communication
containing articles on various aspects of product knowledge,
selling skills, market etc .It is a forum for effective
communication of new ideas and strategies. It also provides
➢ An Annual Selling Skill Contest is organized to test the selling
skills of the sales executives. It is conducted at regional levels
and culminates 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. It helps
dealers recruit the right profile of people for their dealership. The
Regional Office will be involved throughout the implementation of
the MARS while recruiting Sales Persons. All Sales Executives need
to be registered with Maruti after recruitment through extranet. A
unique ‘Maruti Suzuki Personal Identification Number (MSPIN) is
being issued which the DSEs have to remember 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
It would seem that there is no corporate human
resources policy that has not had its share of
controversies for being biased. With an increasing
number of qualitative factors that affect employees at the
workplace, the performance appraisal process to make it
as fair as possible has been the dream of every HR
And now qualitative factors are not just at play in the
services sector, but also in manufacturing. With cubicles
giving way to open offices, the top-down approach to
employee performance appraisal is also on its way out.
One company that has set itself on course to further
demonstrating and opening up its employee evaluation
process is car market leader Maruti Udyog.
The company has introduced a unique 360-degree
feedback system, starting with its senior leadership. The
new system has been co-developed with Ernst & Young
and has been put in place recently.
Under the 360-degree feedback system, the employee is
rated not just by his superiors, but also by his peers and
"We are starting the 360-degree feedback process with
employees in the top management such as chief general
managers and general managers, whose performance will
now be assessed based on feedback from their peers and
junior management employees within the same
department. Till last year, their performance was being
appraised only by the Directors and the Managing
Director," says Maruti's Chief General Manager (HR), Mr
Ernst & Young, in consultation with Maruti, has listed a
set of leadership competencies that are expected in a
general manager. Based on that, it has prepared a
questionnaire to which peers and subordinates can
Although acknowledged as an effective tool for leadership
development in the West, Indian companies have been
shy of introducing such a feedback system for fear of
disturbing traditional hierarchical structures.
HR consultants feel that the critical issues in
implementing such a system include assuring
respondents that their feedback will remain confidential
and convincing the person receiving the feedback that
this is a development tool and not an appraisal tool.
Maruti has handled this by getting E&Y and other
consultants to make detailed presentations to the senior
management personnel before the process got under
way. The company has a committee of general managers,
called Human Resource Inter Divisional Committee
(HRIDC), which is consulted on all major HR issues.
The initiative has been unveiled with an e-mail by
Maruti's Managing Director, Mr Jagdish Khattar, asking
people to support the online questionnaire process. The
360-degree feedback system will also include a self-
appraisal by the general manager. At the end of the
process, he can compare his self-appraisal with the
assessment of his subordinates and peers.
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 has over 4,000 employees on
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
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
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.
THE STATEMENTS MADE BY CHIEF GENERAL MANAGER OF
MARUTI UDYOG LIMITED IN THE NEWS
Maruti Udyog, India's largest carmaker has been making
key investments in several human resource initiatives.
The company is currently working on a five-year people-
oriented strategy, apart from initiatives that are being
taken to make young 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 related issues.
As the head of HR in the country's largest automaker,
what are your main challenges?
For us there are two to three key areas. One of the
biggest is to bring about a 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, at Maruti, 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 their
aspirations 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's younger
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 a change. 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 and
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 we do
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, from
wherever they are coming in. There will be very senior
people to receive them at these places. That is the first
Secondly, most people find it difficult to find a place to
stay. They will be put up in a 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 for the new recruits. While it gives
them an opportunity to interact with the MD, it also acts
as a tremendous
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
Yes, this is unique to Maruti. It evolved from the
feedback we have been receiving for 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 for three
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
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 just typical
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, but quality 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
We also have initiatives for employees who have spent
two to three years in the company. 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 order to strengthen
internal communications. We have a senior level HR
consulting group and a junior level HR consulting group.
Policies are formulated based on the interactions with
these two groups and we try to give shape to a policy
that can impact lives.
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 conceptually cleared 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 decentralized manner. 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 over fresh 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 they organize 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 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
be aggregate 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 be a 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 be placed. 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 do with
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. They come 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 professionally thought
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 we recruit every year.
Have you recruited from the two ITIs you adopted
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
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 for many 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 senior person each is heading the
management councils at both the Gurgaon and Rohtak
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
all the four ITIs.
Has Suzuki picked up any HR initiative from Maruti?
Not really. We are two very distinct countries. The
moment I talk of people perspectives, 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 good complement 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 the leadership and HR fronts.
Is there any other initiative you plan this year?
When we talk of connect with people, there are formal
channels of internal communication 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'. A small 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.
What is the attrition rate at Maruti today?
We are currently experiencing an attrition rate of 9.5
percent, as against the industry (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 here means 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
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 Suzuki
Japan, 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 tough for 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 on gender.
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 willing to 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
Maruti has been the market leader in the passenger car segment for the
past several years and has been reaping the benefits of being the single
player in Indian Passenger Car Industry. This situation also led to having
good margins in the product sale and full capacity utilization of the plant
facilities. The market size also had been increasing continuously with
two digit percentage growths. However, with the Competition coming
in, and with the passenger car market itself not increasing in size,
Maruti’s market share, and margins and hence the profits from
manufacturing activity alone are under severe pressure. This is the
typical scenario globally also, wherein mature markets like USA and
Japan the manufacturing business, on a stand-alone business, is
undergoing severe pressures on bottom lines.
In this kind of a background, in order to maintain its supremacy in the
passenger car market and to increase its revenues and profits, Maruti
decided to venture into new service oriented businesses, which could be
developed as natural spin off from its core business of manufacturing. It
would also strengthen its 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 analysis by 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 equivalent portion. It found that global auto majors
successfully tap this potential in different ways in various markets. A
number of business options were generated and examined, leading to
selection four potential businesses for Maruti to venture into viz.
• Auto Finance
• Insurance Distribution
• Corporate Leasing and Fleet Management
• Pre-owned Cars Business