Maruti Suzuki India Limited is changing its performance appraisal system to entirely link pay to productivity. Previously only 30% of compensation was performance-based, but now increments and basic salary will depend solely on annual performance. This new system will affect over 1,000 executives and managers. The company developed the new approach with consultant M.B. Athreya and has trained employees on goal setting and review processes. The changes aim to enhance managerial performance and help the company better assess costs and returns, as it looks to cut costs due to recent losses. Maruti has also proposed a voluntary retirement scheme for employees.

1. MARUTI SUZUKI INDIA LIMITED
To study various HR policies of Maruti Suzuki India Limited
SUBMITTED BY:Varun Kabaria -221061
Naman jain -221073
Nitish Batheyja – 221080
Pankhuri -221086
Rajat Gupta- 221112
Ranjeev Dutta-221115
1

2. TABLE OF CONTENTS
Acknowledgement
3
Introduction
4
Occupational and health policy
5
HR practices at Maruti Suzuki
6
Recruitment
7
Fraudulent policy at Maruti Suzuki
8
Selection
9
Training and Development
10
Training program for Sales Executives/ Branch
11
Heads
Performance Appraisal
13
Maruti adopts 360 appraisal system
14
Promotional policies
15
Surveys conducted
16
References
22
2

3. ACKNOWLEDGEMENT
The goal was fixed, moves theyre calculated and they moved with full enthusiasm, vigour and keen
interest.
It’s a sheer pleasure for us to state with candidly that this entire project is a heartily attempt to reach
maximum accuracy. They highly express our sincere thanks to Dr. Neetu Jain who helped us
throughout the project.
Last but not least I would like to pleasure a word of appreciation to our family and friends who
supported and helped us to make this project a success.
3

4. OBJECTIVES




To enhance our knowledge about Recruitment and Selection.
To enhance our knowledge about training and development.
To convert our theoretical knowledge to practical knowledge.
To study performance appraisal method and promotion policies follotheyd by the company.
INTRODUCTION
Maruti Suzuki India Limited, commonly referred to as Maruti and formerly known as Maruti
Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese automobile
and motorcycle manufacturer Suzuki .Maruti was incorporated in 1981 as a government company.
They started production in December 1983 with collaboration of Suzuki of Japan. Initially Suzuki
had 26% equity which has since increased to 40%.
As of November 2012, it had a market share of 37% of the Indian passenger car market. Maruti
Suzuki manufactures and sells a complete range of cars from the entry level Alto, to the hatchback
Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco,
Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara.
LIFE AT MSIL
The company that leads the Indian auto industry and defines the way India drives rides on the quality
and competence of its people. It’s a great place to discover all that you can be and maximize your
potential.
From a genuinely equal opportunity work culture, a sense of team spirit that goes right down to a
common lunchroom, to a feeling of oneness as senior managers and their teams sit together in an
open, wall-free environment, this is an uncommon place to work and excel.
MARUTI is fast and flexible, resilient and responsive, as theyll as decisive and responsible. It is a
place where your voice will be heard & valued.
Their people make them a company ready to meet the challenges of the dynamic auto market. They
value discipline and punctuality, and obsess over maintaining a safe & healthy work environment
.They like people who have an obsession to delight customers, and they leave them free to take
decisions in complex situations.
4

5. MARUTIANS




Innovation
Dedication
Responsibility
Ownership.
These are the virtues that connect a Marutian to the organization. Maruti Suzuki offers a unique
opportunity for professional and personal growth as part of a multi-faceted organization where all
work as one. To most Marutians, their colleagues have been part of an extended family.
With mix of generations and nationalities working together as one team, they provide the perfect
balance of energy, experience and exposure. At Maruti Suzuki, while excellence is an integral
part of our work culture, they are steadfast in an ethical approach in all its dimensions.
Marutians across the country are all united by a common bond. It’s not a workforce, but people
potheyr at work, an empotheyred team that is quite unlike any other.
OCCUPATIONAL AND HEALTH POLICY
Maruti Suzuki India Limited (MSIL) is committed to ensure a safe and healthy working environment
for all employees, visitors, contractors, vendors and persons present at MSIL sites by prevention of
work related injuries and illness.
To meet the responsibilities, they are maintaining a safe working environment and have an
Occupational Health and Safety Management System (OHSMS) in place to:
Manage Risks – by identifying all workplace hazards, undertaking assessments, internal &
external audits, and taking all necessary actions for prevention & control of injury, ill-health,
loss or damage by following safe work practices in operations as theyll as while procuring
new plant, machinery & equipment.
Comply with legal and other obligations – by ensuring that our business is managed in
accordance with relevant occupational health and safety legislations, standards and MSIL
occupational health and safety policies & procedures.
Establish targets and review mechanism - They shall manage our obligations using
coordinated occupational health and safety plans for each area and site, with challenging
targets to measure progress
5

6. HUMAN RESOURCE PRACTICES IN MARUTI SUZUKI
HR VISION
Lead and Facilitate continuous change towards organizational excellence ;create a learning and vibrant organization
with high sense of pride amongst its members.
HRINITIATIVES






Prepare MUL Strategic Business Plan to achieve the Vision & Goal
Improve the performance Appraisal system -its process, skill & usage
Improvements in internal & external Training & its effective utilization.
Systematic career planning; Job Rotation; Empotheyrment; Job enrichment
Periodic communication meeting at various levels; Roll out of Vision
Retention of Talent
WHISTLE BLOTHEYR POLICY
As a conscious and vigilant organization, Maruti Suzuki India Limited believes in the conduct of the
affairs of its constituents in a fair and transparent manner by adopting the highest standards of
professionalism, honesty, integrity and ethical behaviour.
In its endeavour to provide its employee a secure and a fearless working environment,
Maruti Suzuki India Limited has established the "Whistle Blotheyr Policy".
The purpose of the policy is to create a fearless environment for the employees to report any instance
of unethical behaviour, actual or suspected fraud or violation of the Company's code of conduct or
ethics policy to the Ombudsman. The framework of the policy strives to foster responsible and
secure whistle blowing.
This policy should be read in conjunction with applicable regulations & existing policies &
procedures of the Company. You can also contact the Secretarial & Legal Department if
you have any questions or need any clarifications.
6

7. RECRUITMENT FOR FRESHERS
They recruit fresh Graduates from premier T-Schools and B-Schools across the country in order to
build our future leadership talent pipeline. .
At MSIL, they give ample opportunities for learning & growth through hands-on experience &
rigorous training sessions. The young talent undergoes a structured induction, buddy & umbrella
mentoring sessions, periodic management inputs and cross functional exposure.
With their exciting career paths coupled with hard work & dedication from your end, they believe
that you will keep on creating success stories in MSIL.
Recruitment Process:
RECRUITMENT PROCESS FOR EXPERIENCED PRO
For the last three decades, they have established themselves as the Market Leader in Automobile
sector in India. They appreciate the Knowledge & expertise that the experienced professionals bring
with them, and they come from diverse backgrounds to strengthen the business pillars and explore
new horizons with us.
They invite applicants, who
Are excellent performers with enthusiasm for constant improvement
Have intense desire to be a member of the organization and its success with a constant yearn
to learn
Are star performers, put in extra effort & are committed to engage in work that contributes to
business success
Recruitment Process:
7

8. FRAUDULENT RECRUITMENT POLICY AT MARUTI
The company’s attention has been drawn by certain members of the public that they have received
communication through e-mails for job interviews in our Company wherein they are amongst other
things, demanding cash deposit(s) in certain specified bank(s) before the actual interviews. These
individuals/recruitment companies are also wrongfully using the company's registered trademark as
theyll as using the names of certain officials of the company to lure innocent members of the public
to fall into this trap.
They like to categorically state that these communications are purely made with intend to defraud the
public and the company has not authorized any person to require any payment /cash deposit to be
made by any candidate to our company and/or to any individuals in the recruitment process.
They urge the public not to be misled by such communications purportedly made by our company
including through e-mails. Should you require any further information about genuinity or otherwise
of such communications which you may receive, you are requested to please get in touch with our
official e-mail address: recruitment@maruti.co.in or our aforesaid address.
8

9. 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)
2} Application Form
3} Selection Test
4} Employment Interview
5} Medical Examination
6} Reference Checks
7} Final Approval
8} Employment
9} Induction
10} Follow – up (Evaluation)
9

10. TRAINING AND DEVELOPEMENT
Maruti have invested about Rs 12 crore in their training program .recently they took a decision to
establish a world class Maruti training centre which might come up on a 6-8 acre plot.
This kind of infrastructure will operate in decentralized manner. It will have a residential facility, an
e learning facility and will look at the perspective of developing our own technician level guys for
which campus recruitment take s place.
Maruti arranges training at several intervals. The training is mandatory for all the employees. The
training schedule is maintained by the Hr manager.
TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that randomness
is reduced and learning or behavioural change takes place in structured format.
TRADITIONAL
DEVLOPMENT
AND
MODERN
APPROACH
OF
TRAINING
AND
Traditional Approach – Most of the organizations before never used to believe in training. They are
holding the traditional view that managers are born and not made. There are also some views that
training is a very costly affair and not worth. Organizations used to believe more in executive
pinching. But now the scenario seems to be changing.
The modern approach of training and development is that Indian Organizations have realized the
importance of corporate training. Training is now considered as more of retention tool than a cost.
The training system in Indian Industry has been changed to create a smarter workforce and yield the
best results
Importance of training







Optimum utilization of resources
Development of human resources
Development of skills of employees
Productivity
Team spirit
Organization culture
Quality
 Health and safety
T&D aids in organizational development. Organization gets more effective in decision making and
problem solving. It helps in understanding and carrying out organizational policies.
T&D helps in developing leadership, motivation, loyalty, better attitude, and other aspect that
workers and mangers usually display.
10

11. TRAINING PROCESS FOR SALES EXECUTIVES.:INDUCTION: - aims to provide an understanding of the industry, MUL, Its policies and products
(2days).
PRODUCT PROGRAMS:-imparts complete knowledge on MU and its competitors. Various
programs are Segment A1, Segment A3.(2 days )
SELLING SKILLS/CONSULTIVE SELLING PROCESS: - enables understand customers needs,
sales processes etc and enables apply learning in actual selling (2 days )
CUSTOMER CARE: - appositive attitude and the ability to move is a pre requisite for excellent
performance in any world. Program aims at helping one to build a positive attitude and interpersonal
skills and to enable better customer handling.
ADVISOR FOR LIFE PROGRAM:-in this changed competitive environment, 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 for life .he has to be “single window interface” with his customers on all matters related
to cars, that is, finance , insurance , Extended warranty , service etc.( 2days ).
The training program on’ Delivery Process’ has been developed as delivery now has the maximum
the right age in the new factor structure. Delivery is not the end of a sale but a beginning of a
relationship.
TRAINING PROCESS FOR SALES MANAGERS /
GENERAL MANAGERS/ BRANCH HEADS
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, tie management planning are covered.
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 ,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 the dealers have multiple outlets. While the owners sit any
one outlet and control the others from there, different branch heads that managers the day to day
operations of the outlet manages the other outlets
4. The training covers topics like- making the business plan, 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.
11

12. MAT TER USUALLY DISCUSSED IN THE MARUTI
INDUCTION







Overview of Maruti Suzuki.
Building understanding of the car market in India and various segments.
Understand MUL.
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 options available.
Ensuring personal effectiveness.
12

13. PERFORMANCE APPRAISAL
 MUL to change gear on performance appraisal -- 100% link between pay, productivity
RENEWING its efforts at cutting costs and improving productivity, Maruti Udyog Ltd
(MUL) has drawn up a new human resources policy, which for the first time, entirely links
performance to pay packets for all its executives and managers. MUL has traditionally had a
performance-based component of about 30 percent in its compensation package for its
executives. But now it has gone the whole hog and decided that in addition to the hike in
individual perquisites, increments to even the basic salary will now depend on the employee’s
performance during the year. The new performance appraisal and compensation system is
likely to affect over 1,000 employees -- executives and senior and middle level managers.
Company officials said the changeover to a completely performance-based compensation
system has been under discussion amongst MUL's senior management and directors for
quite some time now. So, the new appraisal process has not come as a surprise for most of
the employees and has been accepted by them, the official said. Over the past, the
principle underlying the new system has been communicated at length throughout the
company and feedback has been obtained.
In the run-up to the new remuneration system, the company has also developed a new
performance measurement and development method along with the noted consultant, Mr
M.B. Athreya. The performance measurement process will complement the new
remuneration s ystem.MUL sources said rather than appraise employees through
confidential reports; the new performance measurement system involves an interactive
process of goal setting, review and counselling by managers throughout the year. It
incorporates qualitative aspects, along with quantitative targets. The employees are being
put through workshops to train them on the various aspects of the system developed with
Mr Athreya.
The new system will take effect from this year. The new system is expected to help
enhance managerial performance and skills, while making the organisation more capable
of assessing its costs and returns.MUL, which has been beleaguered by low margins and a
falling bottom line, has also been forced to take a hard look at its costs this year. For the
first time, MUL has slipped into the red and recorded a loss during the year 2000-01.
 MUL has also drawn up a voluntary retirement scheme (VRS) for its employees. The VRS
programme received in-principle approval from the board last month. While the VRS
proposal is yet to be formally notified and offered to the company's employees, it is expected
to apply equally to all the staff members, including the shop floor workers, company sources
said.
13

14. .MARUTI ADOPTS
“360 DEGREE” APPRAISAL SYSTEM
Maruti 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 subordinates Employee to be evaluated not just by the superiors
but also by the peers and subordinates.
It would seem that there is no corporate human resource policy that has not had its share of controversies for
being biased. With an increase in the number is qualitative factors that affect employee at the workplace, the
performance appraisal process to make it as fair as possible has been the dream of every manager.
Its initiative is to empower young people in terms of free and frank feedback to their seniors, to the people who
manage them. Each senior 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 profile versus self profiles.
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 360degreefeedback process is the sense of employment and importance felt by subordinates,
when they are asked to offer their feedback about their superiors. Maruti currently has over
4,000 employees on its rolls.
FINDINGS
They treat all employees equally
They tries their best to increase the efficiency of the employee by providing them with
different motivational programs
They make new recruits aware about the company and working conditions
Maruti focus on each and every department of the organization
Having different recruitment process for different departments of the organization
They provide different types of training to the different department according to the need of
the people
They talk feedback from there employee on regular basis
Maruti have adopted 360 degree method of performance appraisal for their employees
14

15. PROMOTIONAL POLICIES
Exit interviews, when employees quit, are common practice in many companies. But
automobile major Maruti Suzuki (MSIL) is using 'stay interviews' to cement a long-term tie
with its employees.
For the past three years, MSIL has regularly reached out to its employees to understand their
aspirations, problems and expectations. It has subsequently come up with several changes in
the performance ratings scale, career progression policy and employee referrals.
It makes sense to probe employee minds while they are still working in the company and take
their feedback for changes rather than asking for it after losing them to competition.
For the first time this year, for instance, it altered its performance ratings scale. The previous
four-grade rating scale, which was: excellent (top 10%), very good (next 30%), good (next
50%) and fair (last 10%), was revised to a five-grade scale: exceptional (top 10%), star
performer (next 25%), high performer (next 25%), performer (next 15%) and average (5%).
Employees perceived a 'good' rating as 'not-so-good', meaning, the rating's connotation was
not representative of performance. Also, adhering to the bell curve was becoming difficult
with ratings primarily being distributed only in the first three categories.
"Wording makes a lot of difference about how people feel. For instance, someone who gets
the grade 'exceptional' will think he has contributed a lot towards the firm's performance and
will continue to perform well," says Prateek Duhan, 28, manager, steering and suspension,
supply chain division.
"They made our employees happy by making an emotional connect and removing grades
such as 'good'," adds Mr Siddiqui. Based on the feedback, the company has also changed its
career progression policy last year. The company shortened career tracks by offering
promotions at the junior management level if employees notched up the topmost grade for
two, instead of three consecutive years.
15

16. SURVEYS CONDUCTED
Q Does Company conduct “EXIT INTERVIEW”?
Units
"EXIT INTERVIEWS"
9
10
8
6
4
2
0
1
Yes
9
Don't Know
1
No
0
0
INTERPRETATION:
>Yes, Company conduct “Exit Interview”.
Q What eligibility criterion is given preference by MUL for the selection of managers?
MANAGERS:
3
2.5
CA+MBA
2
B-Tech+Diploma
B-Com+MBA
1.5
Diploma/MBA
1
CA+Co. Secretary
0.5
MBA+Material Mgt
0
RATINGS
16

17. ELIGIBILITY
RATINGS
CA+MBA
2
B-Tech+Diploma
3
B-Com+MBA
1
Diploma/MBA
1
CA+Co. Secretary
1
MBA+Material Mgt
1
INTERPRETATION: Most preference is given to “B-Tech+Diploma”.
Q: Is it necessary to have work experience from a Manufacturing Company for applying to
MUL?
Don't
Know
3
30%
No
1
10%
"WORK EXPERIENCE"
Yes
6
60%
INTERPRETATION: ”Yes” it is necessary to have work experience from a manufacturing
company for applying to MUL.
17

18. Q: Which type of test is conducted in MUL?
8
7
6
Achievement
5
Personality
4
Interest
Intelligence
3
Aptitude
2
Others
1
0
Achievement
3
Personality
7
Interest
2
Intelligence
8
Aptitude
6
Others
5
INTERPRETATION:
>Most of the times “Intelligence Test” is conducted in MUL.
18

19. Q: Which methods are adopted for On-the-job and Off-the-job training?
Apprenticeship
4
Demonstration
10
Vestibule
10
Coaching
4
Lectures
6
Syndicate
5
Role-Play
9
Case Study
9
12
10
8
Apprenticeship
Demonstration
Vestibul
6
Coaching
4
Lectures
Syndicate
2
Role-Play
0
Case Study
INTERPRETATION:
>The most common methods of on-the-job and off-the-job training are:-“Demonstration” and
“Vestibul Training”.
19

20. Q: What type of incentives and allowances does company follows?
a) FINANCIAL:-
Ratings
"FINANCIAL INCENTIVES"
7
6
5
4
3
2
1
0
6
6
44
2
Incentives
Productivity
linked
Profit
Incentives
Stock
Opinion
Performance
Based
Retirement
Benefits
INTERPRETATION:
The company offers mostly:- “Productivity Linked” and “Retirement Benefits” to the employees
as incentives and allowances.
20

21. b) NON-FINANCIAL:-
"NON_FINANCIAL INCENTIVES"
Status
10
Ratings
8
9 9
8
6
4
2
Social work
importance
Responsibility
Participation
55
4
Job Security
3
Team Spirit
2
0
Promotion
Incentives
Informal work
groups
INTERPRETATION:
The company mostly provides: -“Social Work Importance” and “Job Security” to the employees
as incentives and allowances.
21

22. REFERENCES
http://www.marutisuzuki.com/whistle-blotheyr-policy.aspx
http://www.marutisuzuki.com/company-profile.aspx
http://www.marutisuzuki.com/fraudulent-recruitment.aspx
http://www.marutisuzuki.com/life-at-msil.aspx
http://www.marutisuzuki.com/current-openings.aspx
http://www.marutisuzuki.com/freshers.aspx
http://www.studymode.com/subjects/hr-policy-maruti-page1.html
http://www.financialexpress.com/news/to-improve-work-culture-maruti-suzuki-takes-union-leadersto-japan/1204341
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=theyb&cd=1&cad=rja&ved=0CCwQF
jAA&url=http%3A%2F%2Fedoqs.com%2Fdownload%2F24001e57b9b88e492738699ab95289c1&e
i=UhOjUvvFAYiGrQex9YCACw&usg=AFQjCNEHO5viFTrri84OSVWVgdFyhTIFoA&sig2=ejvja
fCPEPmFE53A6VmaBQ
http://www.scribd.com/doc/13491431/PROJECT-ON-HRM-STRATEGIES-OF-MARUTIUDYOG-LIMITED
http://articles.economictimes.indiatimes.com/2012-06-15/news/32254360_1_msil-hr-policiesemployees
22