“Various HR policies of Maruti Suzuki India Limited”

Submitted by: Chirag Agarwal

Class: BBA 6A

Human Resource Management III

Name of the Mentor – Anindita Bose

ILEAD

(Affiliated To WBUT)
 ACKNOWLEDGEMENT

Any fruitful work is incomplete without a word of thanks to those involved directly

or indirectly in its completion. With my sincere gratitude I would like to thanks

everyone who has supported me in my project.

I would like to thank Anindita Bose to provide us with opportunity to work and

expand our knowledge.

The help received from something without which the project would not have

been complete. Their insight as well as guidance helped me to understand the

essentials of the Project. I would like to thank them for their support.

I would also like to place on record my sense of gratitude to my parents and

friends for their support and encouragement, which has always guided me my

entire endeavoured.
 TO WHOM IT MAY CONCERN

This is to certify that Chirag Agarwal, a student of BBA

(Hons.), 3rd Year, of ILEAD has successfully completed the
project on “Various HR policies of Maruti Suzuki India
Limited” under the supervision and guidance of Anindita
Bose. The project being submitted is genuine and original
work to the best of my knowledge.

_____________________

Anindita Bose
ILead
Kolkata
 TABLE OF CONTENTS

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

2
 ACKNOWLEDGEMENT

The goal was fixed, moves theyre calculated and they moved with full enthusiasm, vigour and
keen interest.

It’s a sheer pleasure for us to state with candidly that this entire project is a heartily attempt to reach
maximum accuracy. They highly express our sincere thanks to Dr. Neetu Jain who helped us
throughout the project.

Last but not least I would like to pleasure a word of appreciation to our family and friends who
supported and helped us to make this project a success.

3
 OBJECTIVES

 To enhance our knowledge about Recruitment and Selection.

 
To enhance our knowledge about training and development.

 
To convert our theoretical knowledge to practical knowledge.
 
To study performance appraisal method and promotion policies follotheyd by the company.

INTRODUCTION
Maruti Suzuki India Limited, commonly referred to as Maruti and formerly known as Maruti
Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese automobile
and motorcycle manufacturer Suzuki .Maruti was incorporated in 1981 as a government
company. They started production in December 1983 with collaboration of Suzuki of Japan.
Initially Suzuki had 26% equity which has since increased to 40%.
As of November 2012, it had a market share of 37% of the Indian passenger car market. Maruti
Suzuki manufactures and sells a complete range of cars from the entry level Alto, to the hatchback
Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco,
Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara.

LIFE AT MSIL
The company that leads the Indian auto industry and defines the way India drives rides on the
quality and competence of its people. It’s a great place to discover all that you can be and maximize
your potential.

From a genuinely equal opportunity work culture, a sense of team spirit that goes right down to a
common lunchroom, to a feeling of oneness as senior managers and their teams sit together in an
open, wall-free environment, this is an uncommon place to work and excel.

MARUTI is fast and flexible, resilient and responsive, as theyll as decisive and responsible. It is
a place where your voice will be heard & valued.

Their people make them a company ready to meet the challenges of the dynamic auto market. They
value discipline and punctuality, and obsess over maintaining a safe & healthy work environment
.They like people who have an obsession to delight customers, and they leave them free to
take decisions in complex situations.

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 MARUTIANS

 Innovation

 
Dedication

 
Responsibility
 
Ownership.

These are the virtues that connect a Marutian to the organization. Maruti Suzuki offers a unique
opportunity for professional and personal growth as part of a multi-faceted organization where all
work as one. To most Marutians, their colleagues have been part of an extended family.

With mix of generations and nationalities working together as one team, they provide the
perfect balance of energy, experience and exposure. At Maruti Suzuki, while excellence is an
integral part of our work culture, they are steadfast in an ethical approach in all its dimensions.

Marutians across the country are all united by a common bond. It’s not a workforce, but
people potheyr at work, an empotheyred team that is quite unlike any other.

OCCUPATIONAL AND HEALTH POLICY

Maruti Suzuki India Limited (MSIL) is committed to ensure a safe and healthy working
environment for all employees, visitors, contractors, vendors and persons present at MSIL sites by
prevention of work related injuries and illness.

To meet the responsibilities, they are maintaining a safe working environment and have an
Occupational Health and Safety Management System (OHSMS) in place to:

Manage Risks – by identifying all workplace hazards, undertaking assessments, internal &
external audits, and taking all necessary actions for prevention & control of injury, ill-health,
loss or damage by following safe work practices in operations as theyll as while procuring
new plant, machinery & equipment.

Comply with legal and other obligations – by ensuring that our business is managed in
accordance with relevant occupational health and safety legislations, standards and
MSIL occupational health and safety policies & procedures.

Establish targets and review mechanism - They shall manage our obligations using
coordinated occupational health and safety plans for each area and site, with challenging
targets to measure progress

5
 HUMAN RESOURCE PRACTICES IN MARUTI SUZUKI

HR VISION

Lead and Facilitate continuous change towards organizational excellence ;create a learning and
vibrant organization with high sense of pride amongst its members.

HRINITIATIVES
  Prepare MUL Strategic Business Plan to achieve the Vision & Goal
  
Improve the performance Appraisal system -its process, skill & usage
  
Improvements in internal & external Training & its effective utilization.
  
Systematic career planning; Job Rotation; Empotheyrment; Job enrichment
  
Periodic communication meeting at various levels; Roll out of Vision
 
Retention of Talent

WHISTLE BLOTHEYR POLICY

As a conscious and vigilant organization, Maruti Suzuki India Limited believes in the conduct of
the affairs of its constituents in a fair and transparent manner by adopting the highest standards of
professionalism, honesty, integrity and ethical behaviour.

In its endeavour to provide its employee a secure and a fearless working environment,
Maruti Suzuki India Limited has established the "Whistle Blotheyr Policy".

The purpose of the policy is to create a fearless environment for the employees to report any instance
of unethical behaviour, actual or suspected fraud or violation of the Company's code of conduct or
ethics policy to the Ombudsman. The framework of the policy strives to foster responsible and
secure whistle blowing.

This policy should be read in conjunction with applicable regulations & existing policies
& procedures of the Company. You can also contact the Secretarial & Legal Department if
you have any questions or need any clarifications.

6
 RECRUITMENT FOR FRESHERS

They recruit fresh Graduates from premier T-Schools and B-Schools across the country in order
to build our future leadership talent pipeline. .

At MSIL, they give ample opportunities for learning & growth through hands-on experience &
rigorous training sessions. The young talent undergoes a structured induction, buddy & umbrella
mentoring sessions, periodic management inputs and cross functional exposure.

With their exciting career paths coupled with hard work & dedication from your end, they believe
that you will keep on creating success stories in MSIL.

Recruitment Process:

RECRUITMENT PROCESS FOR EXPERIENCED PRO

For the last three decades, they have established themselves as the Market Leader in Automobile
sector in India. They appreciate the Knowledge & expertise that the experienced professionals bring
with them, and they come from diverse backgrounds to strengthen the business pillars and explore
new horizons with us.

They invite applicants, who

Are excellent performers with enthusiasm for constant improvement

Have intense desire to be a member of the organization and its success with a constant yearn
to learn
Are star performers, put in extra effort & are committed to engage in work that contributes
to business success

Recruitment Process:

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 FRAUDULENT RECRUITMENT POLICY AT MARUTI

The company’s attention has been drawn by certain members of the public that they have received
communication through e-mails for job interviews in our Company wherein they are amongst other
things, demanding cash deposit(s) in certain specified bank(s) before the actual interviews. These
individuals/recruitment companies are also wrongfully using the company's registered trademark
as theyll as using the names of certain officials of the company to lure innocent members of the
public to fall into this trap.

They like to categorically state that these communications are purely made with intend to defraud
the public and the company has not authorized any person to require any payment /cash deposit to be
made by any candidate to our company and/or to any individuals in the recruitment process.

They urge the public not to be misled by such communications purportedly made by our company
including through e-mails. Should you require any further information about genuinity or
otherwise of such communications which you may receive, you are requested to please get in touch
with our official e-mail address: recruitment@maruti.co.in or our aforesaid address.

8
 SELECTION
It is the process of searching the potential candidate. It is negative in nature in the Indian context.
But it is positive in the US context.

Steps in Selection Process of Maruti Udyog ltd

Selection process consists of a series of steps, at each stage, facts may come light which may lead to
the rejection of the applicant. It is a series of successive hurdles or barriers which an applicant must
cross. These hurdles or screens are designed to eliminate an unqualified candidate at any point in the
selection process There is no standards selection procedure to be used in all organizations or for all
jobs. The complexity of selection procedures increases with the level and responsibility of the
position to be filled.

1} Preliminary Interview (screening applications)

2} Application Form

3} Selection Test

4} Employment Interview

5} Medical Examination

6} Reference Checks

7} Final Approval

8} Employment

9} Induction

10} Follow – up (Evaluation)

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 TRAINING AND DEVELOPEMENT
Maruti have invested about Rs 12 crore in their training program .recently they took a decision to
establish a world class Maruti training centre which might come up on a 6-8 acre plot.

This kind of infrastructure will operate in decentralized manner. It will have a residential facility, an
e learning facility and will look at the perspective of developing our own technician level guys for
which campus recruitment take s place.

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

TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that randomness

is reduced and learning or behavioural change takes place in structured format.

TRADITIONAL AND MODERN APPROACH OF TRAINING AND

DEVLOPMENT
Traditional Approach – Most of the organizations before never used to believe in training. They
are holding the traditional view that managers are born and not made. There are also some views that
training is a very costly affair and not worth. Organizations used to believe more in executive
pinching. But now the scenario seems to be changing.

The modern approach of training and development is that Indian Organizations have realized the
importance of corporate training. Training is now considered as more of retention tool than a cost.
The training system in Indian Industry has been changed to create a smarter workforce and yield
the best results

Importance of training
  Optimum utilization of resources
  
Development of human resources
  
Development of skills of employees
  
Productivity
  
Team spirit
  
Organization culture
  
Quality
 
Health and safety

T&D aids in organizational development. Organization gets more effective in decision making and
problem solving. It helps in understanding and carrying out organizational policies.

T&D helps in developing leadership, motivation, loyalty, better attitude, and other aspect
that workers and mangers usually display.

10
TRAINING PROCESS FOR SALES EXECUTIVES.:-
INDUCTION: - aims to provide an understanding of the industry, MUL, Its policies and products
(2days).

PRODUCT PROGRAMS:-imparts complete knowledge on MU and its competitors. Various

programs are Segment A1, Segment A3.(2 days )

SELLING SKILLS/CONSULTIVE SELLING PROCESS: - enables understand customers

needs, sales processes etc and enables apply learning in actual selling (2 days )

CUSTOMER CARE: - appositive attitude and the ability to move is a pre requisite for excellent
performance in any world. Program aims at helping one to build a positive attitude and interpersonal
skills and to enable better customer handling.

ADVISOR FOR LIFE PROGRAM:-in this changed competitive environment, role of dealer sales
executive is seen more than a person who is selling cars to the customers. He is expected to be the
customer’s for life .he has to be “single window interface” with his customers on all matters related
to cars, that is, finance , insurance , Extended warranty , service etc.( 2days ).

The training program on’ Delivery Process’ has been developed as delivery now has the
maximum the right age in the new factor structure. Delivery is not the end of a sale but a
beginning of a relationship.

TRAINING PROCESS FOR SALES MANAGERS /

GENERAL MANAGERS/ BRANCH HEADS

1. Dealership Management Program: -For second generation dealers, and GM’s and Ro executives
on how to manage entire Dealership Operations. Financial Management, staff management ,
motivation, tie management planning are covered.

2. Sales Managers/Team Leaders Program: The Training covers issues like Sales management(
target setting and achievement, enquiry management, resource and time management etc),
Supervisory skills ,Practical Coaching skills, knowledge of Maruti Finance, Maruti Insurance
Extended warranty, MGA, True value etc and car advisor for life concept.(2 days )

3. Branch managers Program: many of the dealers have multiple outlets. While the owners sit any
one outlet and control the others from there, different branch heads that managers the day to day
operations of the outlet manages the other outlets

4. The training covers topics like- making the business plan, Fundamentals of DBP, Hr
management, Team building and supervision skills, ability to motivate the team and get a buy in on
the business plan , time management/ prioritizing etc.

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 M AT T E R US UALLY DISCUSSED IN
THE MARUTI INDUCTION

 Overview of Maruti Suzuki.

 
Building understanding of the car market in India and various segments.

 
Understand MUL.

 
Product range and positioning in each segment.

 
Understanding the basics in the automobile industry.

 
Role of financing as a sales tool and the various financing options available.
 
Ensuring personal effectiveness.

12
 PERFORMANCE APPRAISAL

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

13
.MARUTI ADOPTS “360 DEGREE” APPRAISAL SYSTEM

Maruti has introduced a unique 360-degree feedback system, starting with its senior
leadership. The new system has been co-developed with Ernst & Young and has been put in
place recently. Under the 360-degree feedback system, the employee is rated not just by his
superiors, but also by his peers and subordinates Employee to be evaluated not just by the
superiors but also by the peers and subordinates.
It would seem that there is no corporate human resource policy that has not had its share of controversies for
being biased. With an increase in the number is qualitative factors that affect employee at the workplace, the
performance appraisal process to make it as fair as possible has been the dream of every manager.
Its initiative is to empower young people in terms of free and frank feedback to their seniors,
to the people who manage them. Each senior gets a sample feedback from a group of 12-14
people, out of which 5-6 would be juniors , 5-6 colleagues and 2-3 their superiors.
This is done through an online process to maintain confidentiality. The person also evaluates himself.
After that, profiles would emerge. Based on this, there would be aggregate profile versus self profiles.
The 360-degree feedback system will also include a self-appraisal by the general manager. At
the end of the process, he can compare his self-appraisal with the assessment of his
subordinates and peers. One of the benefits that Maruti is hoping to get out of the 360-
degreefeedback process is the sense of employment and importance felt by subordinates,
when they are asked to offer their feedback about their superiors. Maruti currently has over
4,000 employees on its rolls.

FINDINGS
They treat all employees equally
They tries their best to increase the efficiency of the employee by providing them
with different motivational programs
They make new recruits aware about the company and working conditions
Maruti focus on each and every department of the organization
Having different recruitment process for different departments of the organization
They provide different types of training to the different department according to the need
of the people
They talk feedback from there employee on regular basis
Maruti have adopted 360 degree method of performance appraisal for their employees

14
 PROMOTIONAL POLICIES

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

15
 SURVEYS CONDUCTED

Q Does Company conduct “EXIT INTERVIEW”?

"EXIT INTERVIEWS"

10 9
8
Units

6
4
2 10
0

Yes 9
Don't Know 1
No 0

INTERPRETATION:

>Yes, Company conduct “Exit Interview”.

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

MANAGERS:

2.5
CA+MBA
2 B-Tech+Diploma

1.5 B-Com+MBA
Diploma/MBA
1
CA+Co. Secretary
0.5 MBA+Material Mgt
0
RATINGS

16
ELIGIBILITY RATINGS

CA+MBA 2

B-Tech+Diploma 3

B-Com+MBA 1

Diploma/MBA 1

CA+Co. Secretary 1

MBA+Material Mgt 1

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

Q: Is it necessary to have work experience from a Manufacturing Company for applying to

MUL?

Don't "WORK EXPERIENCE"

Know
3
30%

Yes
No 6
1 60%
10%

INTERPRETATION: ”Yes” it is necessary to have work experience from a

manufacturing company for applying to MUL.

17
Q: Which type of test is conducted in MUL?

8
7
6
Achievement
5 Personality
4 Interest
Intelligence
3
Aptitude
2 Others
1
0

Achievement 3

Personality 7

Interest 2

Intelligence 8

Aptitude 6

Others 5

INTERPRETATION:

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

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

Apprenticeship 4

Demonstration 10

Vestibule 10

Coaching 4

Lectures 6

Syndicate 5

Role-Play 9

Case Study 9

12

10 Apprenticeship
Demonstration
8
Vestibul
6 Coaching
Lectures
4
Syndicate
2 Role-Play
0 Case Study

INTERPRETATION:

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

19
Q: What type of incentives and allowances does company follows?

a) FINANCIAL:-

"FINANCIAL INCENTIVES"

7 6 6 Productivity
6 linked
5 Profit
44 Incentives
4
Ratings

Stock
3
2 Opinion
2 Performance
1 Based
0 Retirement
Incentives Benefits

INTERPRETATION:

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

20
 b) NON-FINANCIAL:-

"NON_FINANCIAL INCENTIVES"
Status
10 9 9 Social work
8 importance
8 Responsibility

Participation
6
Ratings

55
4 Job Security
43
Team Spirit
2
2
Promotion

0 Informal work
Incentives groups

INTERPRETATION:

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

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 REFERENCES

http://www.marutisuzuki.com/whistle-blotheyr-policy.aspx

http://www.marutisuzuki.com/company-profile.aspx

http://www.marutisuzuki.com/fraudulent-recruitment.aspx

http://www.marutisuzuki.com/life-at-msil.aspx

http://www.marutisuzuki.com/current-openings.aspx

http://www.marutisuzuki.com/freshers.aspx

http://www.studymode.com/subjects/hr-policy-maruti-page1.html

http://www.financialexpress.com/news/to-improve-work-culture-maruti-suzuki-takes-union-leaders-
to-japan/1204341

http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=theyb&cd=1&cad=rja&ved=0CCwQF
jAA&url=http%3A%2F%2Fedoqs.com%2Fdownload%2F24001e57b9b88e492738699ab95289c1&e
i=UhOjUvvFAYiGrQex9YCACw&usg=AFQjCNEHO5viFTrri84OSVWVgdFyhTIFoA&sig2=ejvja
fCPEPmFE53A6VmaBQ

http://www.scribd.com/doc/13491431/PROJECT-ON-HRM-STRATEGIES-OF-MARUTI-
UDYOG-LIMITED

http://articles.economictimes.indiatimes.com/2012-06-15/news/32254360_1_msil-hr-
policies-employees

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