To study various HR policies of Maruti Udyog Limited

MARUTI UDYOG LIMITED

Submitted in partial fulfillment of the requirement of graduate diploma in international business (GDIB- GNDU)

JAGANNATH INSTITUTE OF MANAGEMENT SCIENCES, DELHI

Faculty Supervisor                                 SUBMITTED BY:

SESSION: 2008 – 2011

JAGANNATH INSTITUTE OF MANAGEMENT SCIENCES

DELHI

4. FACULTY GUIDE CERTIFICATE

This is to certify that group number 03 of BBA 1 year has completed this project report under my supervision.

The work done by them is original and satisfactory.

3. GROUP MEMBRS                                FACULTY INCHARGE

ACKNOWLEDGEMENT

The goal was fixed, moves were calculated and we moved with full enthusiasm, vigor and keen interest.

There was a time when it proved to be on up hill task, the goal seeming beyond our reach. But as worked progressed our determination and will power grew stronger and completion of this work further confined our belief that, “where there is a will there is a way.  

It’s a sheer pleasure for us to state with candidly that this entire project is a heartily attempt to reach maximum accuracy. I highly express our sincere thanks to Mrs. Sunita Dahiya 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.                                            

                 EXECUTIVE SUMMARY

Maruti was incorporated in 1981 as a Government company. They started production in December 1983 with collaboration from Suzuki of Japan. Initially Suzuki had 26% equity which has since increased to 40%.

The original model was replaced in the 2nd year itself with a new streamlined model with more leg room and better fuel efficiency. A van (now called Omni) in two types of roof and a Jeep type vehicle Gypsy, were also introduced in quick succession.

The various cars proved extremely popular and production has already crossed 100,000 nos. which is 60% of the total production of passenger car. The company has an up to date manufacturing facility and absorbed the technology successfully. The foreign equity and presence of a number of Japanese experts has helped in the stabilisation

of production.

In the initial stages Maruti set up a limited R&D department for absorbing the technology that was being imported. Even at this stage Maruti made certain modifications in the imported technology on market considerations e.g. Application engineering to develop special bodies for school van,taxi, delivery van, executive van, ambulance.

Improved suspension and seating for OMNI, which was used more as a car than a commercial vehicle. Modifications in Gypsy and Maruti 800 to meet export requirements

of various countries.

5. CONTENTS

CHAPTER: 1-Introduction                                               6-27

• Automobile industry                                                  6
• Company Profile                                                         10
• S.W.O.T. Analysis                                                          16
• Competitors Information                                            26

 CHAPTER: 2- Research Methodology                             28

• Research Objectives                                          28
• Research design                                                 28

• Data Sources                                                     28
• Questionnaire Design/ Formulation                 28
• Sample Design                                                 29
• Limitations of the research                              29

 CHAPTER: 3- Conceptual Discussion                              30

 CHAPTER: 4- Data analysis and Interpretation                 38-58

CHAPTER: 5- Conclusions/ Findings                               59

CHAPTER: 6- Recommendations                                     60

CHAPTER: 7- Annexure                                                  61

CHAPTER: 8- Bibliography/ References                         66

CHAPTER:-1

INTRODUCTION

AUTOMOBILE INDUSTRY

Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising tenth position in the entire world with being # 2 in two wheelers and # 4 in commercial vehicles. Withstanding a growth rate of 18% per annum and an annual production of more than 2 million units, it may not be an exaggeration to say that this industry in the coming years will soon touch a figure of 10 million units per year.

Reasons of Growth
Economic liberalization, increase in per capita income, various tax relief policies, easy accessibility of finance, launch of new models and exciting discount offers made by dealers all together have resulted in to a stupendous growth of India automobile industry.

MARKET SHARE
Automobile industry of India can be broadly classified under passenger vehicles, commercial vehicles, three wheelers and two wheelers, with two wheelers having a maximum market share of more than 75%. Automobile companies of India, Korea, Europe and Japan have a significant hold on the Indian market share. Tata Motors produces maximum numbers of mid and large size commercial vehicles, holding more that 60% of the market share. Motorcycles top the charts of two wheelers with Hero Honda being the key player. Bajaj by far is the number one manufacturer of three wheelers in India.

Passenger vehicle section is majorly ruled by the car manufacturers capturing over 82% of the total market share. Maruti since long has been the biggest car manufacturer and holds more that 50% of the entire market.

Global recession has impacted, the Indian automobile industry also and can be seen clearly in the sales figures of the last financial year. Even then this industry has high hopes in 2009-2010, as banks have reduced loan interest rates and the major chuck of automobile customers belong to the middle income group who are becoming economically stronger with every passing day.

• The first automobile in India rolled in 1897 in Bombay.
• India is being recognized as potential emerging auto market.
• Foreign players are adding to their investments in Indian auto industry.
• Within two-wheelers, motorcycles contribute 80% of the segment size.
• 2/3rd of auto component production is consumed directly by OEMs.
• India is the largest three-wheeler market in the world.
• India is the largest two-wheeler manufacturer in the world.
• India is the second largest tractor manufacturer in the world.
• India is the fifth largest commercial vehicle manufacturer in the world.
• The number one global motorcycle manufacturer is in India.
• India is the fourth largest car market in Asia - recently crossed the 1 million mark.

SEGMENT KNOW HOW

Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers.
Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer

MISCELLANEOUS.

Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the country by the second half of 2008. It would be set up by city-based Prajay Engineers Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for automobile financing institutions and insurance services to create a complete range of services required for both auto companies and customers. It will also have a multi-purpose convention centre for auto fairs and product launches.

Cars by Price Range

The segregation is made on Ex-Showroom price of base models.

The following links will give you the complete picture of Indian Auto Industry:

COMPANY PROFILE

Maruti Udyog Ltd. (MUL) is the first automobile company in the world to be honoured with an ISO 9000:2000 certificate. The company has a joint venture with Suzuki Motor Corporation of Japan. It is said that the company takes only 14 hours to make a car. Few of the popular models of MUL are Alto, Baleno, Swift, Wagon-R and Zen.

QUICK FACTS

1. Current sales of automobiles

Maruti Estilo

1. Maruti 800: Launched - 1983  
2. Maruti Omni: Launched - 1984
3. Maruti Gypsy: Launched - 1985
4. Maruti Alto: Launched - 2000
5. Maruti Wagon-R: Launched - 2002
6. Maruti Versa: Launched - 2003
7. Maruti Grand Vitara Launched - 2004
8. Maruti Suzuki Swift: Launched - 2005
9. Maruti Suzuki SX4: Launched - 2007
10. Maruti Swift Dzire: Launched - 2008
11. Maruti Suzuki A-STAR: Launched - 2008
12. Maruti Suzuki Ritz: Launched - 2009
13. Maruti Suzuki Estilo: Launched – 2009

Company overview

Maruti Udyog Limited (MUL), established in 1981, had a prime objective to meet the growing demand of a personal mode of transport, which is caused due to lack of efficient public transport system. The incorporation of the company was through an Act of Parliament.

Suzuki Motor Company of Japan was chosen from seven other prospective partners worldwide. Suzuki was due not only to its undisputed leadership in small cars but also to commitments to actively bring to MUL contemporary technology and Japanese management practices (that had catapulted Japan over USA to the status of the top auto manufacturing country in the world). at Maruti Udyog Ltd.

A license and a Joint Venture agreement were signed between Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The objectives of MUL, then are as cited below:

• Modernization of the Indian Automobile Industry.
• Production of fuel-efficient vehicles to conserve scarce resources.
• Production of large number of motor vehicles which was necessary for economic growth.

In 2001, MUL became one of the first automobile companies, globally, to be honoured with an ISO 9000:2000 certificate. The production/ R&D is spread across 297 acres with 3 fully-integrated production facilities. The MUL plant has already rolled out 4.3 million vehicles. The fact says that, on an average two vehicles roll out of the factory in every single minute. The company takes approximately 14 hours to make a car. N[edit] ot only this, with range of 11 models in 50 variants, Maruti Suzuki fits every car-buyer's budget and any dream.

Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. 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.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries.

The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades.

It’s manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually.

More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on December 14, 1983.

Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, Grand Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient.

Maruti is clearly an “employer of choice” for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners.

The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for nine years in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Maruti’s mission to motorise India.

 MARUTI TRUE VALUE :-

Maruti True service offered by Maruti Udyog to its customers. It is a market place for used Maruti Vehicles. One can buy, sell or exchange used Maruti vehicles with the help of this service in India

3. COMPETITORS INFORMATION :-

MARUTI UDYOG LIMITED – Managing competition successfully

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzuki’s equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices.

Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss.

COMPETITIVE FORCES IN INDIAN PASSENGER CAR MARKET

Critical Issues and Future Trends

The critical issue facing the Indian passenger car industry is the attainment of break-even volumes. This is related to the quantum of investments made by the players in capacity creation and the selling price of the car. The amount of investment in capacities by passenger car manufacturers in turn depends on the production

Threat from the new players: Increasing

·  Most of the major global players are present in the Indian market; few more are expected to enter.

   Financial strength assumes importance as high are required for building capacity and maintaining adequacy of    working capital.

   Access to distribution network is important.

    Lower tariffs in post WTO may expose Indian companies to threat of imports.

Rivalry within the industry: High

·         There is keen competition in select segments. (compact and mid size segments).

·         New multinational players may enter the market.

Market strength of suppliers: Low

A large number of automotive components suppliers.

Automotive players are rationalizing their vendor base to achieve consistency in quality.

Market strength of consumers: Increasing

·         Increased awareness among consumers has increased expectations. Thus the ability to innovate is critical.

·         Product differentiation via new features, improved performance and after-sales support is critical.

COMPETITOR ANALYSIS

HYUNDAI MOTOR INDIA LIMITED

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India . HMIL presently markets over 25 variants of passenger cars in six segments. The Santro in the B segment, and Getz in the B+ segment.

HYUNDAI SANTRO

We are mainly going to concentrate on the various marketing and positioning strategies of Hyundai Santro as against  that of Maruti Zen and Alto and Hyundai Getz as against Maruti Swift.

POSITIONING OF SANTRO

The old positioning of the Santro was that pf a ‘family car’, this positioning strategy was changed in around 2002 and Santro was repositioned as to that of ‘a smart car for young people.’ The target age group for the car had now shifted from 30-35 years to 25-30 years. The repositioning followed the face-lifts the car has been getting from time to time in the form of engine upgradation, new power steering, automatic transmission, etc, to keep the excitement around it alive in the highly competitive small car market. The repositioning also comes ahead of the possible launch of a new design Santro, and the super B-segment car ‘Getz’, sometime in 2003.

The Santro  was given a fresh new positioning — from a ‘complete family car’ to a ‘sunshine car’ denoting a fresh new attitude and a ‘changing your life’ positioning.As the average age of a car owner has declined from around 30-35 three years ago to 25-30, primarily because of changing lifestyles, cheap and easily available finance, etc. the company thought that instead of promoting the Santro as a family car, it should be promoted as a car that can change the life of a young person since many of the buyers were young buyers.

HYUNDAI’S PRICING STRATEGY

With the launch of  Maruti Swift recently  a price war was expected to kick in . Immediately after maruti raised prices on its debutante Hyundai Motor India hit back  with a Rs 16,000-19,000 markdown on three new variants of Santro Xing.

The company has introduced the XK and XL variants at a lower tag of Rs 3,26,999 and Rs .3,45,999 respectively.The new price variants are likely to give Maruti’s existing B-segment models, Zen and WagonR a run for their money. Hyundai has also launched a new non-AC variant of the Santro at Rs 2.79 lakh, a tad higher than what the existing non-Ac Santro costs. The next offensive is due from Maruti. With the Santro’s new price positioning, Zen and particularly WagonR may be due for a correction, or at least a limited-period subvention. If that happens the domino effect will kick in across the B-segment.

Hyundai is positioning its new variants on the tech platform. Strapped with 1.1 litre engine with eRLX Active Intelligence technology, the new variants also come with new colour-coordinated interiors, a new front grill and a 4-speed AC blower that makes the air conditioning more efficient.

TATA MOTORS

Established in 1945, Tata Motors is India's largest and only fully integrated automobile company. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany.

TATA INDICA – Tata motors flagship brand

The company's passenger car range comprises the hatchback Indica, the Indigo sedan and the Marina, its station wagon variant, in petrol and diesel versions.The Tata Indica, India's first indigenously designed and manufactured car, was launched by Tata Motors in 1999 as part of its ongoing effort towards giving India transport solutions that were designed for Indian conditions. Currently, the company's passenger cars and multi-utility vehicles have a 16-per cent market share.

POSITIONING OF INDICA

Tata has positioned Indica as `more car per car'. The new car offers more space, more style, more power and more options. Emphasizing the delivery of world class quality. They have tried to redefine the small car market as it has been understood in India.True to its "More car per car" positioning, the Indica CNG offers all the core benefits of the Indica combined with the advantage of CNG. One of the most popular advertisements on television currently, is the one where the guy portrayed as the ‘loveable liar’, gets socked everytime he lies ; but not when he speaks about the Indica thus implying- “ must be true”. Elaborating on the campaign, the new ad was launched with the intention of giving the Indica V2 brand a touch of youthfulness.

TATA’S PRICING STRATEGY

After the price war being triggered off by Hyundai being  the first company to introduce what came to be known as, pricing based on customer's value perceptions , all others followed suit.Telco's Indica came in the range of Rs 2.56 lakh to Rs 3.88 lakh with 4 models. The price-points in the car market were replaced by price-bands. The width of a price-band was a function of the size of the segment being targeted besides the intensity of competition. The thumb rule being 'the higher the intensity, the wider the price-band.'

B) CURRENT STRATEGIES FOLLOWED BY MUL

I.       PRICING STRATEGY - CATERING TO ALL SEGMENTS

Maruti caters to all segment and has a product offering at all price points. It has a car priced at Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers who earlier had owned a Maruti car. Their pricing strategy is to provide an option to every customer looking for up gradation in his car. Their sole motive of having so many product offering is to be in the consideration set of every passenger car customer in India. Here is how every price point is covered.

II. OFFERING ONE STOP SHOP TO CUSTOMERS OR CREATING DIFFERENT REVENUE STREAMS

Maruti has successfully developed different revenue streams without making huge investments in the form of MDS, N2N, Maruti Insurance and Maruti Finance. These help them in making the customer experience hassle free and helps building customer satisfaction.

Maruti Finance: In a market where more than 80% of cars are financed, Maruti has strategically entered into this and has successfully created a revenue stream for Maruti. This has been found to be a major driver in converting a Maruti car sale in certain cases. Finance is one of the major decision drivers in car purchase. Maruti has tied up with 8 finance companies to form a consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide, ICICI Bank, HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab and IndusInd Bank Ltd.( erstwhile-Ashok Leyland Finance).

Maruti Insurance : Insurance being a major concern of car owners. Maruti has brought all car insurance needs under one roof. Maruti has tied up with National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram to bring this service for its customers. From identifying the most suitable car coverage to virtually hassle-free claim assistance it's your dealer who takes care of everything. Maruti Insurance is a hassle-free way for customers to have their cars repaired and claims processed at any Maruti dealer workshop in India.

True Value – Initiative to capture used car market

Another significant development is MUL's entry into the used car market in 2001, allowing customers to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car, by paying the difference. They are offered loyalty discounts in return.This helps them retain the customer. With Maruti True Value customer has a trusted name to entrust in a highly unorganized market and where cheating is rampant and the biggest concern in biggest driver of sale is trust. Maruti knows its strength in Indian market and has filled this gap of providing trust in Indian used car market. Maruti has created a system where dealers pick up used cars, recondition them, give them a fresh warranty, and sell them again. All investments for True Value are made by dealers. Maruti has build up a strong network of 172 showrooms across the nation. The used car market has a huge potential in India. The used car market in developed markets was 2-3 times as large as the new car market.

N2N: Car maintenance is a time-consuming process, especially if you own a fleet. Maruti’s N2N Fleet Management Solutions for companies, takes care of the A-Z of automobile problems. Services include end-to-end backups/solutions across the vehicle’s life: Leasing, Maintenance, Convenience services and Remarketing.

Maruti Driving School (MDS): Maruti  has established this with the goal to capture the market where there is inhibition in buying cars due to inability to drive the car. This brings that customer to Maruti showroom and Maruti ends up creating a customer.

III. REPOSITIONING OF MARUTI PRODUCTS

Whenever a brand has grown old or its sales start dipping Maruti makes some facelifts in the models. Other changes have been made from time to time based on market responses or consumer feedbacks or the competitor moves. Here are the certain changes observed in different models of Maruti.

Omni has been given a major facelift in terms of interiors and exteriors two months back. A new variant called Omni Cargo, which has been positioned as a vehicle for transporting cargo and meant for small traders. It has received a very good response from market. A variant with LPG is receiving a very good response from customers who look for low cost of running.

Versa prices have been slashed and right now the lowest variant starts at 3.3 lacs. They decreased the engine power from 1600cc to 1300cc and modified it again considering consumers perception. This was a result of intensive survey done all across the nation regarding the consumer perception of Versa.

Esteem has gone through three facelifts. A new look last year has helped boost up the waning sales of Esteem.

Baleno was launched in 1999 at 7.2 lacs. In 2002 they slashed prices to 6.4 lacs. In 2003 they launched a lower variant as Baleno LXi at 5.46 lacs. This was to reduce the price and attract customers.

Wagon-R was perceived as dull boxy car when it was launched. This made it a big failure on launch. Then further modifications in engine to increase performance and a facelift in the form of sporty looking grills on the roof. Now it’s of the most successful models in Maruti stable.

Zen has been modified four times till date. They had come up with a limited period variant called Zen Classic. That was limited period offer to boost short term sales.

Maruti 800 has so far been facelifted two times. Once it came with MPFi technology and other time it came up with changes in front grill, head light, rear lights and with round curves all around.

C) MAJOR FUTURE STRATEGIES

I. PHASING OUT ZEN IN 2007

The launch of Swift and phasing out Zen is a strategic move. Alto was launched keeping in mind that it will take over Maruti 800 market in future. Perhaps being the flagship product phasing out of Maruti 800 faced lots of resistance from dealers all over. Another reason behind not phasing out Maruti 800 was the fear of brand shift of customers to other competitor’s product. Swift was launched in May, 2005 in the price band starting from 4 lacs. Before launch of Swift Maruti management had decided that they will phase out Zen since it had already came up with two modifications. The major reason behind this decision was cannibalization of Wagon R and Swift due to overlapping of price band. It is a rational decision to kill a product before it starts facing the decline stage in product cycle. Maruti is offering Rs. 3000.00 more margins to dealer on the sale of Wagon-R as compared to Zen. This is to let dealer push Wagon R instead of Zen.

II. MARUTI PLANS FOR A BIG DIESEL FORAY

The new car manufacturing company, called Maruti Suzuki Automobiles India Limited, will be a joint venture between Maruti Udyog and Suzuki Motor Corporation holding a 70 per cent and 30 per cent stake respectively.  The Rs1,524.2 crore plant will have a capacity to roll out 1 lakh cars per year with a capacity to scale up to 2.5 lakh units per annum. The new car manufacturing plant will begin commercial production by the end of 2006.

Maruti would set up a diesel engine plant at Gurgaon in line with its plan to become a major player in diesel vehicles in a couple of years. This has been done in the wake of major competition from Tata Indica and meets the growing demand of diesel cars in India. While the annual growth in the diesel segment was 13 per cent in the last three years, it was 19-20 per cent in the first quarter (April-June) of the current fiscal. Maruti has currently an insignificant presence in diesel vehicle. It will manufacture new generation CRDI (common rail direct injection) engines in collaboration with Fiat-GM Opel and engines will be of 1200 cc. The plant with a capacity to produce one lakh diesel engines would be operational in 2006. At present, Peugeot of France, supplies diesel engines for Maruti's Zen and mid-sized Esteem models. This will further reduce the imported component in Maruti vehicles, making them more competitive in the Indian market.

III. MARUTI PLANS FOR A NEW ENGINE AND TRANSMISSION PLANT

The engine and the transmission plant will be owned by Suzuki Powertrain India Limited in which Suzuki Motor Corporation would hold 51 per cent stake and Maruti Udyog holding the balance. The ultimate total plant capacity would be three lakh diesel engines. However, the initial production would be 1 lakh diesel engines, 20,000 petrol engines and 1.4 lakh transmission assemblies. Investment in this facility will be Rs.1,747.7 crore. The commercial production will start by the end of 2006.

FUTURE CHALLENGES

Ø  Maruti has always been identified as a traditional carmaker producing value-for-money cars and right now the biggest hurdle Maruti is facing is to shed this image. Maruti wants to change it for a more aggressive image. Maruti Baleno has failed due to one of the major reasons being that customers could not identify Maruti with a car as sophisticated as Maruti Baleno. Maruti is looking forward to bring about a perception change about the company and its cars. Maruti started the exercise with the new-look Zen, and Suzuki's decision to pick India as one of the first markets for this radically different-looking car gave this endeavor a new thrust. Maruti has also changed its logo at the front grill. It has replaced the traditional Maruti logo on grill ‘stylish ‘M’ with S’. The major thrust in the facelift endeavour is with the launch of 1.3 litre Swift. It’s a style statement from Maruti to Indian market.

Ø  The next threat Maruti faces is the growing competition in compact cars. Companies like Toyota, Ford, Honda and Fiat are planning to come out with small segment cars in near future.Ford is launching Focus and Fiesta, GM is launching Aveo in 2006, Chevrolet is launching Spark in 2006, Hyundai is launching its new compact car in 2006, Honda is launching Jazz in 2006, GM is has reduced prices of its Corsa, Fiat is coming up with Panda and new Fiat Palio, Skoda is launching Fabia. All this will pose a major threat to Maruti leadership in compact cars.

Ø  New emission norms like Bharat Stage 3 which has come into effect from April 2005 has increased car prices by Rs.20000 and Bharat Stage 4 which is coming into force in 2007 will contribute in increasing car prices further. This could be of concern to Maruti which is low cost provider of passenger cars.

Ø  Rise in petrol prices and growing popularity of other substitute fuels like CNG will be another threat to Maruti. There is also a threat to Suzuki from R&D investment by Toyota and Honda in Hybrid cars. Hybrid cars could run on both petrol and gaseous fuels.

Ø  There is a threat to Maruti models ageing. Maruti models like Maruti 800 which is in market for the last twenty years and others like Zen and Esteem which have also entered the decline phase are the other threats. Maruti is planning phasing out Zen in 2007 and there were rumors of phasing out Maruti 800 also. This all makes Suzuki to replace these brands with new launches . As Swift and Wagon R are replacing the Zen market. Maruti will have to keep on making modifications in its present models or its models will face extinction

.

S.W.O.T. ANALYSIS OF THE COMPANY

Company’s Portfolio:
Maruti Udyog Limited (MUL),INDIA’s finest and Asia’s largest automobile industry was established in 1981 by an act of parliament.MUL, the first automobile company in the world to be honored with an ISO 9000:2000 certificate, is a subsidiary of Suzuki Motor Corp (holds a 54% equity stake). The Government of India remains a significant equity stakeholder (10%).With its early mover advantage in Indian market; Maruti retains a dominant Market share despite increasing competition.

Business Portfolio:
The Group's principal activity is to manufacture, purchase and sale of Motor Vehicles and Spare parts. The other activities of the Group comprises of facilitation of Pre-Owned Car Sales, Fleet Management and Car Financing. The Group also provides services like framing of customized car policies, economical leasing of cars, maintenance management, registration and insurance management, emergency assistance and accident management. The product range includes ten basic models with more than 50 variants. The Group has operations in over 100 cities with more than 150 outlets and also exports cars to other countries.

Vision:
Visions of any company are those values on which company works. As the MUL is started by Governmental initiatives it tends to be more consumer oriented and hence cost effective, but on the other hand Suzuki’s participation ensures not only need of the profit, but of the need of maximum profit. The only way for this Nora’s dilemma of selecting principals for company’s working vision ,was to maximize profit and reducing cost by maximizing output and sales Hence MUL declared its Vision as-
“The Leader in the Indian Automobile Industry, Creating Customer Delight1 and Shareholder's Wealth2; eventually become a pride of India”
Customer Delight1 is making sure that performance, after sales service and customer support are best and beyond expectation. Shareholder’s wealth2 is the prime concern for running business smoothly.MUL knows this and understands “customer is king”, he can change the fortune of any company, hence goes company’s brand line: COUNT ON US!

Mission:
Mission is the statement of an organization’s purpose, what it want to accomplish in the larger environment and its goals which are specific, realistic and motivating. Missions are described over visions and visions demand certain objectives. The main objectives/Missions of MUL are:
- Modernization of the Indian Automobile Industry.
- Developing cars faster and selling them for less.
- Production of fuel-efficient vehicles to conserve scarce resources.
- Production of large number of motor vehicles which was necessary for economic growth.

- Market Penetration, Market Development Similarly Product Development and Diversification.
- Partner relationship management, Value chain, Value delivery network .

SWOT ANALYSIS: Consists of analysis of internal environment (Strength and weakness) and external environments
(Opportunity and Threat).

STRENGTH: Contemporary technology. Japanese Management practices (that had      captured Japan over USA to the status of top Auto manufacturing country in the world) Early mover advantages. Recruitment is done in very tedious manner
ensuring talent and best professionals, Working culture, after sale services , distribution, diversification,

Sell directly to consumers

Keep costs below competitors’ costs

WEAKNESS: Still depends upon SUZUKI COPORATION, Japan For tech. support, 10% components are manufactured outsideIndia. Though MUL has launched luxury cars as well it’s still considered as poor man’s brand. Diversification is not
supported with all India presence of Manufacturing Units. Bureaucracy, Technological disadvantages, Decades of isolation, inertia and subservience to the whims of government bureaucrats have made MUL unaccustomed to international standards or keen competitors

No strong relationships with computer retailers

OPPURTUNITY: first company to roll out suitably designed cars before 2008 as per Govt.’s Proposal of new ethanol (renewable)
mixed fuel. Other companies’ lacks economy of scale, so market is still open. Importing new technology is controlled by Govt. so there is plenty of untapped market and with increase in Income scale, Demand is rising.

Consumer desire for one-stop shopping

 Consumers know what they want to buy

 Internet could be a powerful marketing tool

THREAT: Numbers of new Technology driven players and manufactures are in market. Govt .reducing support and cutting down the Gas supply quota. (TOI, New Delhi, 11th june, 07).

Competitors have stronger brand names

 Competitors have strong relationships with computer retailers.

CHAPTER:-2

RESEARCH METHODOLOGY

RESEARCH OBJECTIVES

• To study the various HR policies of Maruti Udyog Limited

• To study recruitment given to employees whether internal or external.
• To study how selection is being is done in maruti  Udyog limited.
• To enhance my knowledge about training and development.
• To study how placement and induction take place in maruti Udyog limited.
• To study whether the employees are being satisfied with the plans, policies and procedures in maruti udyog limited.
• To study how orientation takes place in maruti udyog limited.
• To study which types of interview are conducted in maruti udyog limited.

RESEARCH DESIGN

Research design is descriptive as the information is collected through the method of surveys and questionnaires and the objective is to describe market characteristics and the characteristics are prior formulation of hypothesis. It has planned structured design.

DATA SOURCES

The information collected about Maruti Udyog limited is a combination of both primary and secondary data. We have collected the information by conducting the interviews of company employees, through questionnaire survey, and the information is also gathered from libraries books, newspapers, and net.

QUESTIONNAIRE DESIGN/ FORMULATION

Questions being used in questionnaires are both open ended and close ended questions.

SAMPLE DESIGN

• Sample element/ Sample unit

Our sample consists of HR department employees of Maruti Udyog Limited.

• Sample Extent: - MUL, Gurgaon.

• Time Frame: - 20 Days

• Sampling Technique:-non-probability-Convenience and judgmental sampling.

• Sample Size: - 10 employees of MUL. Gurgaon.

                    LIMITATIONS OF THE RESEARCH

• Less Availability of time limit.
• Some of the employees were unwilling to fill the questionnaires.
• Information was confidential.

CHAPTER:-3

Conceptual Discussion

RECRUITMENT

Recruitment is an important part of an organization’s human resource planning and their competitive strength. Competent human resources at the right positions in the organisation are a vital resource and can be a core competency or a strategic advantage for it.

The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organisation to achieve its goals and objectives. With the same objective, recruitment helps to create a pool of prospective employees for the organisation so that the management can select the right candidate for the right job from this pool.

Recruitment acts as a link between the employers and the job seekers and ensures the placement of right candidate at the right place at the right time. Using and following the right recruitment processes can facilitate the selection of the best candidates for the organisation.

In this is competitive global world and increasing flexibility in the labour market, recruitment is becoming more and more important in every business. Therefore, recruitment serves as the first step in fulfilling the needs of organisations for a competitive, motivated and flexible human resource that can help achieve its objective

                               INTERNAL SOURCES OF RECRUITMENT

1. TRANSFERS

The employees are transferred from one department to another according to their efficiency and experience.

2. PROMOTIONS
The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.

3. Others are Upgrading and Demotion of present employees according to their performance.

4. RETIRED AND RETRENCHED EMPLOYEES may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures.

5. The dependents and relatives of deceased employees and disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.

                   EXTERNAL SOURCES OF RECRUITMENT

1. PRESS ADVERTISEMENTS

Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.

2. EDUCATIONAL INSTITUTES

 Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment.

 3. PLACEMENT AGENCIES

Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing)

4. EMPLOYMENT EXCHANGES

Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.

5. LABOUR CONTRACTORS

Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labour for construction jobs.

6. UNSOLICITED APPLICANTS

Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization.

7. EMPLO YEE REFERRALS/ RECOMMENDATIONS

Many organisations have structured system where the current employees of the organisation can refer their friends and relatives for some position in their organisation. Also, the office bearers of trade unions are often aware of the suitability of candidates. Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.

8. RECRUITMENT AT FACTORY GATE

Unskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.

                                      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)

Initial   screening   is   done   to   weed   out   totally undesirable/unqualified candidates at the outset.  It is essentially a sorting   process   in   which   prospective   candidates   are   given   the necessary   information   about   the   nature   of   the   job   and   the organization,  at   the same  time,   the necessary  information  is also elicited   from   the   candidates   about   their   education,   skills, experience,   salary   expected   and   the   like.   It   helps   to   determine whether   it   is worthwhile for a candidate to fill up the application form.

2} Application Form

Application form  is a  traditional and widely used device  for collecting   information   from  candidates.   It   should   provide   all the information relevant to selection, where reference for caste, religion, birth place, may be avoided as it may be regarded an evidence of discrimination.

3}Selection Test

Psychological   tests are being  increasingly used  in employee selection, where a test may involve some aspect of an individual’s attitudes,   behavior   and   performance.   Tests   are   useful  when   the number   of   applicants   is   large,   as   at   best   it   reveals   that   the candidates who scored above the predetermined cutoff  points are likely  to be more  successful   than  those  scoring below  the cutoff point.

4} Employment Interview

Interview is an essential element of selection and no selection procedure   is   complete without  one   or  more  personal   interviews, where   the   information   collected   through   application   letter   or application forms and tests can be cross-checked  in the  interview, where candidates  demonstrates   their   capabilities  and  strength  in relevant to their academic credentials. selection in interview serves three purposes:

1. obtaining information about the background, education, training, work history and interests of candidate.

2. giving information to candidates about the company, the specific job and human resource policies; and

3. establishing a friendly relationship between the employer and the candidate so as to motivate the successful     applicant to work for the organization.

However,   in practice  interview becomes a one-sided affair serving only the first purpose.

5} Medical Examination

Applicants who have crossed the above stages are sent for a physical   examination   either   to   the   company’s   physician   or   to a medical officer approved for the purpose. Such examination serves the following purposes:-

a) It   determines   whether   the   candidate   is   physically   fit   to perform  the   job,  where   those  who   are  physically  unfit   are rejected.

b) It   reveals existing disabilities and provides a record of   the employee’s  health at   the time of   selection.  This  record will help   in   settling   company’s   liability   under   the   workmen compensation Act for claim for any injury.

c) It   prevents   the   employment   of   people   suffering   from contagious diseases.

d) It identifies candidates who are otherwise suitable but require specific jobs due to physical handicaps and allergies.

6} Reference Checks

The applicant is asked to mention in his application form, the names and addresses of two or more persons who know him well. These may be his previous employers, heads of education institutions or public figures. These   people   are   requested   to   provide   their   frank opinion   about   the candidate without incurring any liability. In government and public sector organizations, candidates are generally required to route their applications through  their present  employers,   if  any.  The opinion of  referees can be useful in judging the future behavior and performance of candidate, but is not   advisable   to   rely   exclusively   on   the   referees   because they   are generally biased in favor of the candidate.

(a)Most candidates are employed at the time of their application, and do not wish their employers to know they are looking elsewhere.

(b) Because   of  a   prospective   employer   would   be   breaking   a confidence if he or she asked for a reference before an offer of a job had been made and accepted.

(c) By the time an offer has been accepted, selection  is over and the reference is too late to affect it.

(d) An offer may be made  ‘subject   to satisfactory references’,  but  as most references are received after the candidate has started work, they can only be used to warn managers of possible faults  in the candidate which  in serious cases may eventually  lead to warnings followed by dismissal.

(e) Employers giving references are usually extremely cautious;  many references merely state the job title, the date of employment, and reasons for leaving.

(f) References   are   occasionally   biased,   giving   a   good   reference to hasten an employee’s departure or a poor one because of a grudge.

Therefore, the best references are obtained in person, where there is a chance to see whether nonverbal behavior matches what is said. If such   a  meeting   cannot   be   arranged,   telephoning   is   the   next best alternative.

7} Final Approval

In most of the organizations, selection process is carried out by the human resource department, where the decisions of the department are recommendatory. The candidates shortlisted by the department are finally approved by the executive of concerned departments or units.

8} Employment.

Employment   is   offered   in   the   form   of   an   appointment   letter mentioning the post,  the rank,  the salary grade,  the date by which the candidate should  join and other   terms and conditions  in brief.   In some organizations, a contract of service is signed by both the candidate and the representative of the organization.  It is at this point where a selected applicant is handled with a letter of offer for a job:

a) The wage or salary offered must not only be appropriate to the job and attractive to the candidate but consistent with the earnings of present employees.

b) The   job  must   be   named   and   any   special   conditions   stated, for instance, the first year you will be under training at the head office, then you will be transferred to up-country branches.

c) The candidate must know the essential  conditions of employment, such as hours of work, holidays, bonuses and fringe benefits.

d) Any provisos must be clearly stated, for example, your employment will be subject to satisfactory references and medical examinations. Appointment is generally made on probation of one or two years, where upon satisfactory performance during this period, the candidate is finally confirmed in the job on the terms employed with, whether permanent or contractual basis.

9} Induction.

The   process   of   receiving   employees   when   they   begin   work, introducing them to the company and to their colleagues, and informing them of   the activities,  customs and  traditions of   the company  is called induction.   At   this   juncture   various   induction

courses are done to new recruit in order to acclimatize them with the new working   environment.

10} Follow – up (Evaluation) 

All  selection should be validated by  follow-up,  it   a  stage  where employee  is   asked how he or   she  feels  about  progress   to   date and   the  worker’s   immediate   supervisor   is   asked   for comments,  which are  compared with  the notes   taken at   the selection interview.   If a  follow-up  is  unfavourable  it  is probable that selection has been a fault; the whole process from job specification to interview is then reviewed to see if a better choice can be made next time.

Training

Maruti arranges the training at several intervals. The training is mandatory for all the employees. The training schedule of all employees is maintained by the HR manager.

EDP

In the EDP Department following are managed:

• Post Sale Process is managed.
• Sales Analysis is done.
• Backup is taken time to time.

IMPORTANCE OF TRAINING

Optimum Utilization of Human Resources-Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals.

• Development of Human Resources-Training and Development helps to provide an opportunity and broad structure for the development of human resources’ technical and behavioral skills in an organization. It also helps the employees in attaining personal growth.

• Development of skills of employees-Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons of human intellect and an overall personality of the employees.

• Productivity-Training and Development helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal.

• Team spirit-Training and Development helps in inculcating the sense of team work, team         spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the employees.

• Organization Culture -Training and Development helps to develop and improve the organizational health culture and effectiveness. It helps in creating the learning culture within the organization.

• Organization Climate-Training and Development helps building the positive perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers.

• Quality -Training and Development helps in improving upon the quality of work and work-life.

• Healthy work-environment-Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal.

.• Health and Safety-Training and Development helps in improving the health and safety of the organization thus preventing obsolescence.

• Morale-Training and Development helps in improving the morale of the work force.

• Profitability-Training and Development leads to improved profitability and more positive attitudes towards profit orientation

• Training and Development aids in organizational development i.e. Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organizational policies.

• Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.

5. Training And Development

Human Resource Management (HRM), a relatively new term, that emerged during the 1930s. Many people used to refer it before by its traditional titles, such as Personnel Administration or Personnel Management. But now, the trend is changing. It is now termed as Human Resource Management (HRM). Human Resource Management is a management function that helps an organization select, recruit, train and develops.

HUMAN RESOURCE MANAGEMENT

Human Resource Management is defined as the people who staff and manage organization. It comprises of the functions and principles that are applied to retaining, training, developing, and compensating the employees in organization. It is also applicable to non-business organizations, such as education, healthcare, etc Human Resource Management is defined as the set of activities, programs, and functions that are designed to maximize both organizational as well as employee effectiveness…………… ……………………

Scope of HRM without a doubt is vast. All the activities of employee, from the time of his entry into an organization until he leaves, come under the horizon of HRM.

The divisions included in HRM are Recruitment, Payroll, Performance Management, Training and Development, Retention, Industrial Relation, etc. Out of all these divisions, one such important division is training and development.

TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format.

TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT

Traditional Approach – Most of the organizations before never used to believe in training. They were holding the traditional view that managers are born and not made. There were 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

TRAINING AND DEVELOPMENT OBJECTIVES

The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal.

Individual Objectives – help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization.

Organizational Objectives – assist the organization with its primary objective by bringing individual effectiveness.

Functional Objectives - maintain the department’s contribution at a level suitable to the organization’s needs.

Societal Objectives – ensure that an organization is ethically and socially responsible to the needs and challenges of the society.

CHAPTER:-4

Comparisions - Data analysis  and interpretation

Q1 What kind of Recruitment source does Company adopts?

A:

INTERPRETATION:

Most of the times Company gives preference to “Campus Interviews”.

 Q2 Is Company maximum time going for outsourcing?

A:

INTERPRETATION:

“Yes” Company is going for outsourcing.

Q3 Does Maruti Suzuki pay for any interview expenses?

A:

INTERPRETATION:

There is a parallel response between “Yes” and “Don’t Know

Q4 Does Company conduct “EXIT INTERVIEW”?

A:

INTERPRETATION:

>Yes, Company conduct “Exit Interview”.

Q5 What eligibility criterion is given preference by MUL for the selection of managers?

 MANAGERS:

INTERPRETATION:

Most preference is given to “B-Tech+Diploma”.

Q6: Is it necessary to have work experience from a Manufacturing Company for applying to MUL?

A:

INTERPRETATION:

“Yes” it is necessary to have work experience from a manufacturing company for applying to MUL.

Q7: Which type of test is conducted in MUL?

A:

INTERPRETATION:

>Most of the times “Intelligence Test” is conducted in MUL.

Q8: What type of culture does MUL follows?

A:

INTERPRETATION:

>MUL follows “Formal” culture.

Q9: How many months / days of initial training is given to:-

A:    a)WORKERS:

INTERPRETATION:

Maximum 5 months training and minimum 1 month training is given to the workers.

  b) MANAGERS:

INTERPRETATION:

Maximum 5 months training and minimum 1 month training is given to the workers.

Q10: Is company going for Job Rotation and Job Enrichment?

A:

INTERPRETATION:

“Yes” company is going for Job Rotation and Job Enrichment.

Q11: Does training help in Morale Boosting and increase in efficiency of the employees?

A:

INTERPRETATION:

“Yes” training help in Morale boosting and increase in efficiency of the employees.

Q12: Which methods are adopted for On-the-job and Off-the-job training?

A:

INTERPRETATION:

>The most common methods of on-the-job and off-the-job training are:-“Demonstration” and “Vestibul Training”.

Q13: What type of organizational structure does company follows?

A:    

INTERPRETATION:

The company follows “Divisional” type of organizational structure.

Q14: What type of communication channel does it follows?

A:

INTERPRETATION:

The company follows “Horizontal” type of communication channel.

Q15: What type of incentives and allowances does company follows?

A:

a) FINANCIAL:-

INTERPRETATION:

The company offers mostly:- “Productivity Linked” and “Retirement Benefits” to the employees as incentives and allowances.

 b) NON-FINANCIAL:-

INTERPRETATION:

The company mostly provides: -“Social Work Importance” and “Job Security” to the employees as incentives and allowances.

Q16: Does MUL adopt Participative Management Style?

A:  

INTERPRETATION:

“Yes” MUL adopts Participative Management Style.

Q17: “Our HR team views an employee as an ‘internal customer’ and strives to deliver maximum satisfaction to him through transparent sensitive and innovative HR practice”, are you satisfied with this statement?

A:

INTERPRETATION:-

Most of the employees of the company are “Satisfied” with this statement.

Q18: Are you agree or disagree with the following:-

“MUL introduced a 360 degree Feedback System starting with its Senior Leadership”.

A:

FEEDBACK SYSTEM

INTERPRETATION:

Most of the employees are “Satisfied” with this statement.

3. CHAPTER-5

4. CONCLUSION

While preparing this project report we learnt many concepts of “HUMAN RESOURCE MANAGEMENT” like-Recruitment,Selection,Training,Motivation etc.

We have done this project with reference to MARUTI UDYOG LIMITED and we find that many facts while working on this project which has added a valuable experience in my life.

Some of the valuable facts and experiences are as follows:-

• For Recruitment sources most of the times company give preference to “CAMPUS INTERVIEWS”.

• MUL is also going for “OUTSOURCING”.
• Co. also pays for “INTERVIEW EXPENSES” to the candidates.
• Co. also conduct “EXIT INTERVIEWS” at the time when any employee is leaving the organization.In this he is free to say anything what he/she feels like about the organization and its members.
• MUL adopts the eligibility criteria of 6 months for workers and B-Tech+Diploma for the managers.
• It is necessary to have work experience from a Manufacturing Firm for applying to MUL.
• Most of the times co. go for “INTELLIGENCE TEST”.
• MUL follows “FORMAL” culture in the organization.
• Initial training given to workers is of approx. 2-3 months and for managers 1 month.
• Co. is also going for Job-Rotation and Job- Enrichment.
• Training also helps in Morale-Boosting and increase in efficiency of employees.
• The most common methods of On-the-job and Off-the-job training are-“DEMONSTRATION” and “VESTIBUL TRAINING”.
• Co. follows “DIVISIONAL” type of organizational structure.
• It follows “HORIZONTAL” type of communication channel.
• In Financial Incentives co. offers-“PRODUCTIVITY LINKED” and “RETIREMENT BENEFITS”.
• In Non-Financial Incentives co. offers “SOCIAL WORK IMPORTANCE” and “JOB SECURITY”.
• MUL adopts “PARTICIPATIVE MANAGEMENT STYLE”.
• Most of the employees are satisfied with the the “360 degree Feedback System”.

CHAPTER-6

RECOMENDATION

We had done our research with full enthusiasm and had learned many things. This research helps us to know about various policies which are used by the MARUTI UDYOG COMPANY to increase their sales performance. It is good to get the knowledge about it.

But through our research we had concluded that the company is giving only 1-5 months training to the employers before selecting them for the job. But we think that the should give atleast 6 months training to the employees so that they easily coop up with their jobs.

The company follows the exit interviews before the employee leaves the job; it is the better way to improve the various problems occurring in the company. But the company should conduct the interviews where the employers can discuss their problems and the problem of leaving the job will not occur. So time to time interviews with employees is also a necessity.

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.

The company should give promotion to employees, it can help in increasing their morale.

LIMITATIONS

   LESS AVAILABILITY OF TIME LIMIT.

• SOME OF THE EMPLOYEES WERE UNWILLING TO FILL THE QUESTIONNAIRES.

• INFORMATION WAS CONFIDENTIAL.

9. CHAPTER-7

2. ANNEXURE

5. MARUTI UDYOG LIMITED

NAME:

ADDRESS/PH. NO.:

SEX:  Female                                    Male

JOB DESCRIPTION:

DEPARTMENT:

                                      [QUESTIONS]

Q: What kind of recruitment source does company adopts?

>: a) INTERNAL:-                                       b) EXTERNAL:-

       1) Transfer                                               1) Campus Interviews

       2) Promotion

                                                                         2) Lateral applicants (3years

       3) Demotion                                                      experience)    

                                                                        3) Good academic track?(min.

                                                                               60%)

                                                                        4) Advertisement

                                                                        5) Labour unions

                                                                        6) Deputation

Q: Is company going for outsourcing?

>: a) Yes                            b) No                             c) Don’t know

Q: Does Maruti Suzuki pay for any interview expenses?

>: a) Yes                            b) No                             c) Don’t know

Q: Does company conducts EXIT INTERVIEW?

>: a) Yes                            b) No                              c) Don’t know

Q: What eligibility criteria does MUL adopt for the following: -

>: a) WORKERS-

    b) MANAGERS-

Q: Is it necessary to have work experience from a manufacturing company      

     For applying to MUL?

>: a) Yes                            b) No                              c) Don’t know

Q: Which type of test is conducted in MUL?

>: a) Achievement Test                                  b) Intelligent Test

    c) Personality Test                                     d) Aptitude Test

    e) Interest Test                                           f) Others

Q: What type of culture does company follows?

>: a) Formal                      b) Informal                       c) Both

Q: How many days of initial training is given to:-

>: a) WORKERS-

    b) MANAGERS-

Q: Is company going for Job Rotation and Job Enrichment?

>: a) Yes                            b) No                                 c) Don’t know

Q: Does training help in Morale Boosting and increase in Efficiency of  

     Employees?

>: a) Yes                          b) No

Q: From the following, which methods are adopted for On-the-job and Off -

     the-job training?

>: a) Apprenticeship                                   b) Demonstration

    c) Vestibule Training                                d) Coaching/Understudy

    e) Lectures/Conferences                          f) Syndicate

    g) Role-Play                                             h) Case-Study

    i) All                                                         j) None

Q: What type of organizational structure does company follows?

>: a) Line                                                       b) Line and Staff

    c) Matrix                                                    d) Functional

    e) Divisional                                              f) Project

    g) Free Form                                              h) None

    i) All                                                      

Q: What type of Communication channel does company follows?

>: a) Horizontal                                              b) Vertical

    c) Upward                                                   d) Downward

    e) All                                                           f) None

Q: What type of incentives and allowances does company follows?

>: a) FINANCIAL:-

     -(Individual):                                               -(Collective):    

    1) Productivity linked                                   1) Profit Incentives  

    2) Performance based pay                            2) Stock Opinion

                                                                          3) Retirements benefits

 b) NON-FINANCIAL:-

     -(Individual):                                               -(Collective):

     1) Status                                                       1) Social work importance                                                    

     2) Responsibility                                          2) Participation

     3) Job Security                                              3) Team Spirit

     4) Promotion                                                 4) Informal work groups

Q: Does MUL adopt Participative Management Style?

>: a) Yes                                                               b) No

Q: “Our HR team views an employee as an ‘internal customer’ and strives to

     deliver maximum satisfaction to him through transparent sensitive and

     innovative HR practice”, are you satisfied with this statement?

     -(S.D-strongly disagreed, A-agreed, D-disagreed, and S.A-strongly agreed)

>: a) S.D                               b) A                           c) S.A.D

    d) S.A                               e) N.D,N.A

Q: Are you agreed or disagreed with the following: -

    “MUL introduced a 360 degree Feedback System starting with its senior

      Leadership”.

>:

1. CHAPTER-8

1. BIBLOGRAPHY

• BOOKS USED: -

         => PRASAD, L.M., PAGE NO.- 25- 55

• INTERNET WEBSITES USED: -

           =>www.wikiswot.com

           =>www.dogpill.com

           =>www.google.com