Project Report on

“Human Resource Practice in Maruti Suzuki”

Presented By:
Gyan Prakash Gupta
PGDM-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.
 Cont…

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.

 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.
 FACTS OF MARUTI UDYOG LIMITED
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: 532500
NSE - Code: MARUTI

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

Registered & Corporate 11th Floor, Jeevan Prakash

Office 25, Kasturba Gandhi Marg
New Delhi - 110001, India

Works Palam Gurgaon Road

Gurgaon -122015
Haryana, India

Website www.marutisuzuki.com
Revenue US$ 4.8 billion (2009)
Employees 6,903 approx
 MD & CEO
Mr. Shinzo Nakanishi

Chairperson
Mr. R.C. Bhargava
 MILESTONES

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.

 Cont…
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.

 World ranking of manufactures
Motor vehicle production, 2008
Rank Company Production

1. Toyota 92,37,780
2. GM 82,82,803
3. Volkswagen 64,37,414
4. Ford 54,07,000
5. Honda 39,12,700
6. Nissan 33,95,065
7. PSA 33,25,407
8. Hyundai 27,77,137
9. Suzuki 26,23,567
10. Fiat 25,24,325
11. Renault 24,17,351
12. Daimler AG 21,74,299
13. Chrysler 18,93,068
14. BMW 14,39,918
15. Kia 13,95,324
16. Mazda 13,49,274
17. Mitsubishi 13,09,231
18. Avtovaz 8,01,563
19. Tata 7,98,265
20. FAW 6,37,720
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
 Some Awards
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

 Products

ZEN SWIFT WAGON-R

(LAUNCHED - 2006) (LAUNCHED - 2005) (LAUNCHED - 2002)

ALTO GRAND VITARA ALTO K10

(LAUNCHED - 2000) (LAUNCHED - 2004) (LAUNCHED - 2010)
Cont…

SWIFT DZIRE SX4

(LAUNCHED - 2008)
(LAUNCHED - 2007)

Ritz - (LAUNCHED - 2009)

Cont…

EECO
OMNI GYPSY
(LAUNCHED - 2010)
(LAUNCHED - 1984) (LAUNCHED - 1985)

A-STAR MARUTI 800

(LAUNCHED - 2008) (LAUNCHED - 1983)
 NEW INITIATIVES IN MARUTI SUZUKI

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.
 Satyam Motors Strategies
3 “G” 3 “k”

Go to the spot immediately What has been decided

See the actual problem Must be followed
Take appropriate counter measures As per standard

4 “M” Men, Machine, Material, Method

Rating System
Please Rate Us

10 9 8 7 6 5 4 3 2 1

Excellent Good Average Unacceptable

 social initiatives

NATIONAL ROAD SAFETY MISSION

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

The various training Programs in Maruti Suzuki are as

follows:
-:Training process for Sales Executives:-
1. Induction
2. Product programs
3. Selling Skills/ Consultative Selling Process
4. Customer care
5. Advisor for life program
6. Delivery Process
-:Training process for Sales Managers /General Managers/ Branch
Heads:-

1. Dealership Management Program

3. Branch Managers Program
2.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 Life
Show Room Ambience
Customer 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.
 
Delivery
Customer Care
A customer feedback form by the Maruti is also filled.
Customer Care Manager (CCM)
Plant (GUNGAON)
Maruti Suzuki introduces next generation CNG technology
 FINDINGS

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.
 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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