Maruti Manesar- Case Study, Subject : Organization Behavior and HRM.

1. The Maruti Manesar Crisis

2. Background
On 18th July 2012, auto factory workers in Maruti's Manesar plant attacked
supervisors and started a fire that killed a company official and injured 100
managers, including two Japanese expatriates.
The attack was allegedly influenced by:
i. A caste slur (later discredited) by a supervisor against a worker
ii. Failed negotiations about employee regularization
The company has faced several incidents of employee protest, but never of
such scale and violence.
The incident is the worst-ever for Suzuki since the company began
operations in India in 1983.

3. The event has had the following
repercussions:
Bad Indian and international press for Maruti
created by reportage of:
•Damage to the Manesar plant
•Maruti’s alleged unethical practices
•Damage to Maruti’s profits

4. What Maruti Did
Covering the the extortionate demands levied upon
Maruti management, including 1 lakh rupee monthly salary.
Address the new mob violence
perception of Manesar plant
Provide interviews to show that
Maruti Manesar was a planned
conspiracy, and not a spontaneous
attack that can suddenly happen
again
Legal action on accused:
show that proactive
action is being taken
against any violations of
law.
Management also as
victims: to generate
sympathy and give a human
face to the violence
Demands included:
five-fold increase in basic salary
a monthly conveyance allowance of Rs.10,000
a laundry allowance of Rs. 3,000
a gift with every new car launch
a house for every worker who wants one /cheaper home
loans.
75 days of leave
Personal apology from Maruti MD: to show a
human touch to corporate management
The PR by Maruti has not been proactive.
Instead, it has been reactionary.

5. Diverting
Attention: Position
the Haryana’s
Government
Inaction on Labour
Laws
Demonstrate that the
work policies at Maruti
Manesar were in
accordance with state
labour policies, and
further, that this is a
volatile situation that
Indian industry needs to
address.
Further, addressing the
lack of an adequate
number of police
personnel to manage
such crises
Identify a credible
spokesperson
Unlike previous Maruti
leaders (R.C. Bhargava, J.
Khattar), who were also
industry leaders, a
lacking credible
spokesperson cannot
build media gravitas.
Possible option for
spokesperson:
SIAM President Mr. S.
Sandilya,
Condemned the attack,
stating that it tainted
India’s image as a
manufacturing base, as
an investment
destination
Rebuild Maruti’s
India-Connect
Mentions of
increasingly
Japanese
management at
Maruti was raised
during reportage. A
campaign to
associate Maruti’s
traditional image
with India will foster
unity amongst
employees
Maruti CSR
campaign
A Maruti grassroots
CSR campaign that
undertakes
fundraising for
education and
healthcare of labour
families, to prevent
further grassroots
support for planned
violence or mutiny
What Maruti Could have Done
Video: A Day in
the Life Of a
Maruti Worker
Due to conflicting
reported versions of
labour conditions at
Maruti, Maruti
should authorize a
video documentary
on improved work
conditions at the
plant.