Human resource management (HRM) involves recruiting, managing, and directing employees within an organization in a strategic manner. It aims to manage workplace culture and the people within it. The document then discusses areas of HRM implementation like recruitment, selection, training, and rewards systems. It focuses on the industrial relations issues at Maruti Suzuki between employees and management, including demands for increased pay and benefits, abuse of lower-caste workers, and use of contract labor. This led to violence in 2012 where the HR manager was killed, resulting in arrests, plant closure, and losses of over $100 million daily. Management took action by firing workers involved and discontinuing the union. The plant later reopened with regularized contract workers and

2. What is HRM???
• Human Resource Management (HRM) is the
function within an organization that focuses on
recruitment of, management of, and providing
direction for the people who work in the
organization
• It is also a strategic and comprehensive
approach to managing people and the
workplace culture and environment.

3. Areas of Implementation of HRM

4. Recruitment

5. Selection

6. Employment Legislation

7. Discipline

8. Development

9. Training

10. Rewards Systems

11. Trade Unions

12. Productivity

13. Industrial Relation
• Industrial Relation is the relation between 2
parties:– Employer & Employee connected with industrial
activity.
– Management and Employees and vice-versa.
Industrial
Relations
Industrial
Conflicts
Industrial
Peace

14. Industrial Relations of Maruti
• Maruti Udyog Ltd was founded in 1983. Later on it
merged with Suzuki Motor’s in 1982.
• In 1997, there was a change in ownership, where it
became Government controlled.
• Conflict between United Front Government & Suzuki
Motors.
• From 2000 onwards, there were many strikes and
lockouts which have continued till date.

15. Manesar Violence – 18th July,2012
What exactly happened on
this fateful day???

17. Incident
• Workers started a fire, that killed the HR Manager and 100
injured.
• 2 Japanese officials were injured.
• The violent mob injured 9 policemen.
• The hands & legs of the HR General Manager Awanish
Kumar Dev were broken, as a result he could not move, &
the building was set ablaze and was charred to death.
• Factory building and many cars were burnt.

18. Cause of this violence - Demands not
met of the workers.
Manesar Union had demanded the following:
1.
2.
3.
4.
5.
6.
7.
A five-fold increase in basic salary
A monthly conveyance allowance of Rs 10,000
A laundry allowance of 3,000
A gift with every new car launch
A house for every worker who wants one or
cheaper home loans for those who want to build
their own houses.
4 paid weeks of vacation be increased to 7 weeks
Each worker have 40 days allowance of sick and
casual leave - for a total of 75 days.

19. Other Causes of Violence
• A supervisor had abused and made discriminatory
comments to a low-caste worker.
• Workers union demanded the reinstatement of a
worker who had been suspended for beating a
supervisor.
• Harsh working conditions and extensive hiring of
low-paid contract workers.

20. After Effects of the Violence
• An FIR was filed with the police.
• 91 employees were arrested & 55 accused were searched.
• The recorded CCTV footage has been used to determine the
sequence of events and people involved.
• All work at Manesar plant was suspended indefinitely.
• Lockout was called & payment for 2000 employees working at the
plant.
• The shut down of Manesar plant is leading to a loss of about Rs
90crore per day.
• Rs 3183cr decline in market due to failing confidence of investor.
• 5,50,000 No. of vehicle produced at plant every year.

21. Action taken by the Management
• S. Nakanishi, managing director and chief executive of Maruti
Suzuki India declared a lockout saying that safety is more
important than business.
• Mr. Nakanishi went to each victim apologizing for the miseries
inflicted on them by fellow workers.
• He said that he will de-recognize Maruti Suzuki Workers’
Union and dismiss all workers named in connection with the
incident.
• He also announced Maruti plans to continue manufacturing in
Manesar.

22. Latest News
• Maruti also made a slogan “count on us” to emphasize its
reliability.
• New Swift launch delayed due to strike but now it launched.
• Manesar plant reopened on 21/8/12.
• Contract worker regularization was done in October 2012 but
still re-evaluation is needed.
• According to the manufacturing plan, they plan to manufacture
850cars a day.

23. 4 Industrial Relations insights from the
Maruti Suzuki Strike
Insight 1: Contract Labour is just indicative
of larger issues
Insight 2: The need to use a mature
approach to Industrial Relations
Insight 3: Industrial Relations requires
proactive management
Insight 4: The ability to handle and resolve
a conflict is a business requirement