Project Report on “Human Resource Practice in Maruti Suzuki”

Presented By:Gyan Prakash GuptaPGDM-CIIM, IV Term.

INTRODUCTION

Maruti Suzuki India Limited is a leading four - wheeler automobile manufacturer in South Asia. It is largely credited for having brought in an automobile revolution to India.

It was the first company in India to mass-produce and sell more than a million cars.

It is largely credited for having brought in an automobile revolution to India.

It is the market leader in India and on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800.

Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

Currently 4 plants spread over 3.2 million square meters.

Producing one car every 26 seconds.

Cont…

History (SMC)

Suzuki motor corporation (smc) a 100-year-old company is currently the

ninth largest carmaker in the world. Having started off as a loom maker for Japan's silk industry, Suzuki

diversified into making motorized bicycles in 1952, when the textile

market collapsed.

History (MUL)

The company was incorporated as Maruti Motors Limited on 4 June 1971,

and Sanjay Gandhi took full advantage of his position, acquiring land in

Gurgaon, where a factory was built and operations started.

After Sanjay Gandhi death Indira Gandhi decided to revive Maruti. Maruti

Udyog Limited was incorporated on 24 Feb. 1981, and

V.Krishnamurthy(formerly of BHEL), R.C. Bhargava(from the IAS) and

D.S.Gupta (also ex-BHEL) were tasked with the job of launching India’s

people’s car once again.

Year of Establishment February 1981

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

Industry Automotive - Four Wheelers

Listings & its codes BSE - Code: 532500NSE - Code: MARUTI

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

Registered & Corporate Office

11th Floor, Jeevan Prakash25, Kasturba Gandhi MargNew Delhi - 110001, India

Works Palam Gurgaon RoadGurgaon -122015Haryana, India

Website www.marutisuzuki.comRevenue US$ 4.8 billion (2009)

Employees 6,903 approx

FACTS OF MARUTI UDYOG LIMITED

MD & CEOMr. Shinzo Nakanishi

ChairpersonMr. R.C. Bhargava

1981 · Maruti Udyog Ltd. was incorporated.

1982 · Steped into a JV with SMC of Japan.

1983 · Maruti 800, a 796 cc hatchback, India's first affordable car was produced.

1984 · Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in production.

1985 · Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).

1986 · Produced 100,000 vehicles (cumulative production).

1987 · Exported first lot of 500 cars to Hungary.

1988 · Installed capacity increased to 100,000 units.

1992 · SMC increases its stake to 50 per cent.

1994 · Produced the 1 millionth vehicle since the commencement of production.

MILESTONES

1995 · Second plant launched, the installed capacity reached 200,000 units.

1996 · Launch of 24-hour emergency on-road vehicle service.

1997 · Produced the 2 millionth vehicle since the commencement of production.

2000 · IDTR (Institute of Driving Training and Research) launched jointly with Delhi

government to promote safe driving habits.

2001 · Launch of customer information centers in Hyderabad, Bangalore, and Chennai.

2002 · SMC increases its stake to 54.2 per cent.

·Start of Maruti True value in Mumbai.

2003 · Production of 4 millionth vehicle.

2004 · Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the

highest ever since the company began operations 20 years ago.

2005 · The fiftieth lakh car rolls out in April, 2005.

Cont…

Rank Company Production

1. Toyota 92,37,7802. GM 82,82,8033. Volkswagen 64,37,4144. Ford 54,07,0005. Honda 39,12,7006. Nissan 33,95,0657. PSA 33,25,4078. Hyundai 27,77,137

9. Suzuki 26,23,56710. Fiat 25,24,32511. Renault 24,17,35112. Daimler AG 21,74,29913. Chrysler 18,93,06814. BMW 14,39,91815. Kia 13,95,32416. Mazda 13,49,27417. Mitsubishi 13,09,23118. Avtovaz 8,01,56319. Tata 7,98,26520. FAW 6,37,720

Motor vehicle production, 2008World ranking of manufactures

Maruti-Suzuki ranked no.1 in customer satisfaction 9th time in a row…

“Our Mission… Customer delight”Source:- J.D.Power Asia Pacific 2008 India customer satisfaction index (CSI) study

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

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

No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto). Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003“ etc.

2000 2001 2002 2003 2004 2005 2006 2007

JD Power CSI Awards achieved during the time period of 2000-2007

Some Awards

ALTO (LAUNCHED - 2000)

ALTO K10 (LAUNCHED - 2010)

ZEN (LAUNCHED - 2006)

SWIFT (LAUNCHED - 2005)

GRAND VITARA (LAUNCHED - 2004)

WAGON-R (LAUNCHED - 2002)

Products

Ritz - (LAUNCHED - 2009)

SWIFT DZIRE(LAUNCHED - 2008)

SX4(LAUNCHED - 2007)

Cont…

Cont…

A-STAR(LAUNCHED - 2008)

EECO(LAUNCHED - 2010)GYPSY

(LAUNCHED - 1985)OMNI

(LAUNCHED - 1984)

MARUTI 800 (LAUNCHED - 1983)

MARUTI FINANCE

Maruti Finance offers the best finance packages to consumers across the entire Maruti range. The service is being extended across the country in a phased manner.

NEW INITIATIVES IN MARUTI SUZUKI

Go to the spot immediately See the actual problemTake appropriate counter measures

What has been decidedMust be followedAs per standard

Men, Machine, Material, Method

3 “G” 3 “k”

4 “M”

Rating System Please Rate Us

1010 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1

Excellent Good Average Unacceptable

Satyam Motors Strategies

Maruti Suzuki considers road safety to be an integral part of its social

initiatives. Taking forward its commitment to road safety, Maruti

Suzuki has adopted a National Road Safety Mission launched in Dec

2008 under which 500000 people will be trained in road safety in

the next three years. This will be done through the two channels -

Institute of Driving Training and Research (IDTR) and the Maruti

Driving Schools spread across the country. Of the 500,000 people to

be trained, at least 100,000 will be people from underprivileged

section of society, who are keen to take driving as a profession.

NATIONAL ROAD SAFETY MISSION

social initiatives

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.

HR INITIATIVES • 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; Empowerment; Job enrichment• Periodic communication meeting at various levels; Roll out of Vision• Retention of Talent 

 

CULTURE BUILDING INITIATIVES SINCE INCEPTION

Japanese Management philosophy of Team Spirit• Common uniform• Open office• Common Canteen• Communication and decision making• Morning Meetings• Morning Exercises

INDUCTION AND SUCCESSION • Transparent Recruitment & Selection process• Recruitment on an All India Basis – no sector or region specific.• Engineers, MBAs / PGDM – CAMPUS • ALL-INDIA TEST• CAs - Rank Holders• Lateral Entry for Experienced Professionals.

MATTER USUALLY DISCUSSED IN THE MARUTI INDUCTION • Overview of Maruti and Suzuki• Building understanding of the car market in India and various segments• Understand MUL’s 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

RECRUITMENT PROCESS OF MARUTI UDYOG LTD. •For a particular city.•For a particular Dealership.

RECRUITMENT OF SALES EXECUTIVES :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 (Maruti Recruitment System) while recruiting Sales Persons.

STEPS IN SELECTION PROCESS OF MARUTI UDYOG LTD.

1. Preliminary Interview (screening applications)2. Application Form3. Selection Test4. Employment Interview5. Medical Examination6. Reference Checks7. Final Approval8. Employment9. Induction10. Follow – up (Evaluation)

The various training Programs in Maruti Suzuki are as follows:

-:Training process for Sales Executives:-1. Induction 2. Product programs3. Selling Skills/ Consultative Selling Process4. Customer care 5. Advisor for life program 6. Delivery Process

 

-:Training process for Sales Managers /General Managers/ Branch Heads:-

1. Dealership Management Program3. Branch Managers Program2.Sales Managers/Team Leaders Program

Maruti create values in following ways –

Feedback Form System.Customer Complaint Handling System.Customer Complaints received by dealer are through.E-mail Internal Feedback Forms Direct Telephone Letter Consumer Forum / Legal Notices  

Steps to be followed after receiving a customer complaint CCM give a control number to all complaints received & record the same in the customer complaints control register.  

CCM get in touch with the customer on the phone & express regret on the inconvenience faced by the customer.  

Take immediate action to ensure that the customer complaint is resolved. Write a letter of apology to the customer

Send a copy of the letter & the satisfaction note to MUL and also file a copy of the same in Customer complaints Register/File(for complaints received from MARUTI.)

Discuss all customer complaints in the weekly meeting of GM (Sales) on SSI with the entire showroom staff. Necessary counter measures should be taken to ensure that such. 

Review of Customer Care Activities.Customers for LifeShow Room AmbienceCustomer Meets

Reception and Lobby Manager The lobby manager takes care of the customers coming to the showroom. ➢She asks the purpose of their coming and sends them to the concerned executive.

➢ Takes care of the car polishing & showroom decorating. ➢ Updates the magazines regularly. ➢ Records the enquires and distributes them to the concerned persons. ➢ Displays car delivery schedule on daily basis. ➢ Offers test-drive.

 DeliveryCustomer CareA customer feedback form by the Maruti is also filled.Customer Care Manager (CCM)

Plant (GUNGAON)

Maruti Suzuki introduces next generation CNG technology

1) They treat all the employees equally 2) They try their 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.

FINDINGS

RECOMMENDATIONS

Almost 18 years the 800 is on its last stage. So Maruti should think a replacement of this model or should improve this model, otherwise it will face a tough competition from the TATA NANO.

Home delivery servicing process.

The company should give freedom to employees to form the informal groups, it can help the company to know about the thinking of the employees easily through rumors.

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