Master of Business Administration

2019-2021

ORGANIZATION STRUCTURE TRAINING

HONDA COMPANY

Submitted By:

Jaffin John

(19221013)
 INDEX
1. History of the organization
2. Profile of the product (s)/services
3. Mission, objective and strategies of the organization
4. Organization chart-design & structure
5. Policies and procedure followed
6. Functions of various departments
7. SWOT analysis of the organization
8. Key result areas (KRAs) of the organization
9. Significant factors for success
10. Systems of accounting followed
11. Product promotional measures
12. Career planning and promotion policy of employees
13. Training measures
14. Systems followed for purchase of materials
15. IT systems used with some details
16. HRD measures(include welfare measures)
17. Manpower planning
18. Performance appraisal system
19. Financial highlights of the organization during the last three
years
20
Future plans for growth of the organization
21 Views of managers at various levels and non-managerial staff
22 Advantages and drawbacks of the organization structure
23 Recommendations to overcome the drawbacks.
24 Modifications to organization structure
 HISTORY OF THE ORGANIZATION

The Honda Motor Company was founded by Soichiro Honda in October 1946. He was

very interested in automobiles from a small age so he used to tune cars and enter them
into races using his friend's garage. As he grew up he decided to be in the automobile
industry.
Soichiro Honda established research institute in Hamamastu, Japan. He there developed
and produced small 2-cycle motorbikes engines. Later on, in 1946, Honda Motor
Company was created. Then in 1959, Honda established its first store front in Los
Angeles. By 1962, Honda moved into the truck and automobile sales. By then they
controlled 65% of Japanese motorcycle market. During the 60’s, America opened doors
for Honda to manufacture motorcycles for millions of Americans.

 Honda is well known worldwide due to its various models of cars, motorcycle,
power equipment, marine engines and automobile engines.

 Honda is now the 8th largest auto manufacture in the world. Honda is known to be
of one of the world’s biggest motorcycle and manufacturer of internal combustion
engines measured by volume, producing more than 14 million internal combustion
engines each year, since 1959. Within 5 years, it became the largest motorcycle
distributors in the market at that time.

 Honda was the first Japanese automobile manufacturer to release a dedicated

luxury brand, Acura, in 1986.

 Since 1986, Honda has been involved with artificial intelligence/robotics research
and released their ASIMO robot in 2000. They have also ventured into aerospace
with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420
Honda Jet, which began production in 2012. Honda has three joint-ventures in
China (Honda China, Dongfeng Honda, and Guangqi Honda).
  Honda became the second-largest Japanese automobile manufacturer in 2001.

 In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues in research
and development. Also in 2013, Honda became the first Japanese automaker to be
a net exporter from the United States, exporting 108,705 Honda and Acura
models, while importing only 88,357.

Honda is the world’s largest manufacturer of two Wheelers , Recognized the world over
as the symbol of Honda two wheelers , the ‘Wings’ arrived in India as Honda
Motorcycle and Scooter India Pvt. Ltd. (HMSI).

PROFILE OF THE PRODUCTS

MOTORCYCLE SCOOTER SUPER BIKES NAVI
1. CB Hornet 160R 1. Activa 4G 1. Gold Wing 1. NAVI
2. CB Unicorn 160 2. Dio 2. CBR 1000RR
3. CB Unicorn 3. Aviator 3. CBR 1000R
4. CB Shine SP 4. Activa I 4. CBR 650F
5. CB Shine 5. Activa 125 5. Africa Twin
6. Livo 6. CLIQ
7. Dream Yuga
8. Dream Neo
9. CD 110 Dream

HMSI, Tapukara plant manufacture three products:

1. Activa 4G
2. Activa I
3. Activa 125
4. Dio
 5. CB Shine
6. CB Shine SP
 MISSION, OBJECTIVES & STRATEGIES OF THE
ORGANIZATION

HONDA VISION

The Honda vision consists of Fundamental Beliefs (including "Respect for the
Individual" and "The Three Joys"), the Company Principle, and Management Policies.
This philosophy is not only shared by all associates, but also forms the basis for all
company activities and sets the standard for the conduct and decision-making of all
associates throughout the Honda Group. Driven by its dreams and reflecting its values,
Honda will continue taking on challenges to share joys and excitement with customers
and communities around the world to strive to become a company society wants to exist.

MISSION

Maintaining a global viewpoint, we are dedicated to supplying products of the highest

quality, yet at a reasonable price for worldwide customer satisfaction.

OBJECTIVES

Maintaining an international viewpoint. Honda is dedicated to supplying products of the

highest efficiency, yet at reasonable prices, for worldwide customer satisfaction.
In making the organization grow, Honda does not expect only to bring well-being to
ourselves as employees and to our stockholders.
Honda seeks to provide good products to make the customers happy and to help their
affiliated companies prosper. Furthermore, Honda seeks to raise the technological level
of Japanese industry and to make a greater contribution to society. These are the purpose
for Honda’s existence.
STRATEGIES

 Initiative
Initiative means not to be bound by preconceived ideas, but to think creatively and act
on your own initiative and judgment, while understanding that you must take
responsibility for the results of those actions.

 Equality
Equality means to recognize and respect individual differences in one another and
treat each other fairly. Our company is committed to this principle and to creating
equal opportunities for each individual. An individual's race, gender, age, religion,
national origin, educational background, social or economic status has no bearing on
the individual's opportunities.

 Trust
The relationship among associates at Honda should be based on mutual trust. Trust is
created by recognizing each other as individuals, helping out where others are
deficient, accepting help where we are deficient, sharing our knowledge, and making a
sincere effort to fulfill our responsibilities.
ORGANIZATION CHART – DESIGN & STRUCTURE

CEO/President
Board of Directors

Operating
Head
Head
S.R. Vice
President

Vice President

General Manager

Division Head
Division Head

Deputy General
Deputy General
Manager
Manager
Asst General
Asst General
manager
manager

Senior
Senior Manager
Manager

Departmental
Departmental
Manager
Manager

Manager
Deputy
Manager
Section
Manager
Asst
Manager
S.R. Executive

Unit Leader

Executive
Team Member

Asst Executive
Jr. Executives
Staff
Staff
 POLICIES & PROCEDURES FOLLOWED

1. POLICY ON HOME (LOAN INTEREST SUBSIDY) POLICY

a) LINE ASSOCIATES

Policy on Home (Loan Interest Subsidy) is drawn to extend financial support in the
form of subsidy to Line Associates, who are willing to avail home loan and have
availed it.

SCOPE

Only to line associates, completed 5 years, inclusive of training.

PROCEDURE

i. Documents should be submitted along with the request form.

ii. Eligible associates to apply to “IR Help Desk” with all relevant documents on
or before 10th of every month to set payment along with monthly salary.

iii. IR help desk will send all complete home loan documents verified to finance
department. After checking finance department sends it to Associates and
Social Relation (A & SR) division to prepare cheque required for payment by
20th of every month.

iv. False declaration would lead to disciplinary action and termination.

b) JE & ABOVE LEVEL

i. To support JE and above level associates working in all plants of HMSI for
housing of subsidizing the interest on Home Loan taken by them.
 ii. Applied to those who have completed 5 years of service, inclusive of
training and probation period, if any, and have availed the home loan from
any scheduled bank/ recognized financial institution.

PROCEDURE

i. The eligible associate shall apply to the A & SR division with all relevant
documents of housing loan.

ii. A & SR verify the documents and forward the application for extending subsidy as
per norms to the operating head-general and corporate affairs.

iii. After approval, A & SR division shall advice the finance department and arranges
to pay the interest subsidy with the monthly salary payment.

iv. In case of closure of loan or repayment, the associate shall immediately inform
the A & SR division for discontinuation.

2. POLICY ON ASSOCIATES FAMILY VISIT TO PLANT

OBJECTIVES

HMSI always striving to become a company that society want to exist. With this
viewpoint associate’s family visit to company is proposed. Visits by family members of
associates create an overall awareness about the company and in return develop a sense
of immense pride amongst the associates, create strong sense of belongings and bonding.

GUIDELINES

1) Request for visit

i. The associates will have to apply for the visit in the prescribed request
form.

ii. Request should be given 2 weeks in advance.

 iii. Request to be routed through department head.

iv. Final approval given by division head.

v. Request form can be collected from a deposited IR helpdesk.

vi. The approval status and schedule of the visit will be displayed on the notice
board.

2) Day & Time to Visit

Second Saturday of the month: 10:30am – 1:30pm

3) Number of Visitors

Maximum 4 per family and maximum 40 visitors on any day.

4) Number of visits

 Once in financial year.

 Priority to first time visitors.

5) Coordinators

 Chief Coordinators from general affairs.

 Representative of General Affairs,

 Representative of manufacturing department.

6) Before the Visit

 Chief coordinator will provide the family visit schedule to administration, security
& manufacturing coordinator.

 On the day of visit, a company bus will pick up the families of associates from a
common meeting point.

7) At the time of Visit

 Chief coordinator will make arrangement in the HR training room.

  Security will receive the visitors at the main gate and escort the team.

 Welcome drinks will be served along with snacks.

 A senior associate ( division head or above) will give the welcome speech.

 Presentation on Honda.

Visit Route

 Machine shop

 Engine assembly

 Vehicle quality

 Logistics dock

 Hr training room

8) After Plant Visit

 Family photo & gift, review’ lunch

9) Provision for Leave

 1 day leave if the associate wish to

 Prior Approval

3. DOMESTIC TRAVEL – POLICY DOCUMENT

Objective

To provide guidelines for domestic travel, accommodation and related expenses during
business travel.

Applicability

Applicable to all HMSI associates, for business travel in INDIA & NEPAL.
Regulations

1) Should be only undertaken if necessary & cannot be ascertained without personal visit.

2) Travel should be on the most economical basis. Travel by air to any destination should
be authorized considering the overall benefit.

3) Official tour as far as possible should not be preceded, succeeded or coincide with
leave or personal work at destination stations except with prior written sanctions.

4) Arrival/ departure at destination should be arranged so that weekly/ public holidays are
avoided, as far as possible.

5) Should maintain the code of conduct.

6) Ensure safety of self and colleagues.

7) Avoid usage of hotel resources like taxi, phone etc; due to high cost.

8) In case of theft/ missing items,

 approach to nearest police station and fill an FIR

 copy of FIR

 Submit the copy of FIR to the SIS & finance department immediately on return
from the tour.

 Finance department files claims with insurance company.

9) During business travel, if an associate has lunch/dinner with his team /company and
the associate pays the bill, cannot be claimed under policy.

TICKET BOOKINGS

Admin department shall arrange the booking of tickets for air & train travel. Only in case
of emergency or where it is different from administration department to arrange the
travels tickets, associates may book own tickets.
ENTITLEMENT

TRAVEL ENTITLEMENT (Up to deputy manager)

TYPE OF TRAVEL DISTANCE MODE OF TRANSPORT

Intra-city Up to 125km Bus/Train/Taxi/Auto

Inter-City 125-500kms Bus/Train

Above 500kms Bus/Train/Air

Staff/ JE/ AE may be allowed to travel by air in case they are travelling with senior level
associates (senior manager & above) for the same purpose.

4. FORMATION OF WORKS COMMITTEE

As HMSI business plans are expanding- number of associates are also increasing.
Therefore, to maintain informal interaction and one to one relationship with the
associates it is a platform to discuss day to day issues, in context to the provision of the
Industrial Disputes Act 1947 and Rajasthan Rules.

NEEDS & OBJECTIVE

 To build harmonious relation between management & the workmen/trainee.

 Measure to achieve good relation.

 To create works committee, wherein lies an equal opportunity for the associates to
discuss their issues.

RESPONSIBILITY & SCOPE

 To promote secure, health & productive work environment.

 To discuss & suggest counter measures for arising issues.

  Minutes of the meeting shall be recorded and report to be given to top
management.

COMPOSITION

 Management: 5 (Junior executive & above)

 Trainee/workmen: 5

TERMS OF OFFICE

 1 year period Works committee and shall continue till new Works
Committee is formed.

 Shall meet once in 3 months.

PROCEDURE FOR SELECTION

 Junior Executive and above

Nominated by the management on the basis of representatives from across

sections and functions.

 For Trainee/workmen

 Nomination invited from various sections.

 A & SR screen and finalize nominations.

 Parameters: Eligibility

 Track record

 Attitude
STRUCTURE OF WORKS COMMITTEE

Headed by CHAIRMAN
(To be nominated by Management)

Co-ordinator
(Nominated by the management)

Management Representative
( 5persons)

Trainee/Workmen
(5 persons)

5. POLICY ON ORGANIZATION & RECRUITMENT OF JUNIOR

EXECUTIVE & ABOVE LEVEL
The policy is applicable to JE & above level.

OBJECTIVES

 Acquire best talent from internal and external sources to achieve business
objectives and goals of the company.

 Build an employer brand to attract the best talent available in the industry.
RECRUITMENT FLOW FOR CRITICAL POSITIONS

A critical vacancy should be filled as per the below mentioned flow:-

PROCESS FLOW RESPONSIBILITY BY WHEN

Job Requisition to HR Functional Department Nth day

Manager

Job Evaluation HR & FM N + 2nd

Issue of man-power requisition HR N + 3rd

Soaring & Screening HR N + 10th

Short-listing & resumes FDM N + 13th

Organizing & Conducting interview HR & FDM N + 21st

Pre joining medical exam HR & Medical Officer N + 25th

Document collection, reference check, HR N + 26th

salary negotiation

Compensation proposal & Issuance of HR N + 30th

LOI (Letter of intent)

GUIDELINES FOR QUALIFICATION AND EXPERIENCE

ITI Academic Diploma Professional

ZONE LEVEL Age Exp Age Exp. Age Exp. Age Exp.

E0 Junior 23-27 5-11 21-24 0-3 18-22 0-2 N/A N/A

Executive

E1 Assistant 28-32 6-9 25-28 3-7 23-25 2-5 N/A N/A

Executive

E2 Executive N/A N/A 29-32 7-11 26-28 5-8 22-24 1-3

E3 Senior N/A N/A 33-36 11-15 29-32 8-12 25-27 3-6

Executive

M1 Assistant N/A N/A 37-40 15-19 33-36 12-16 28-30 6-9

Manager

M2 Deputy N/A N/A 41-45 19-23 37-40 16-20 31-33 9-12

manager

M3 Manager N/A N/A 46-50 23-27 41-44 20-25 34-36 12-15

GUIDELINES

 For sourcing the resumes, HR may use the services of placement agencies,
newspaper or job portal advertisement, employee referrals, internal job posting,
rehire and social networking sites etc. The list of sources of recruitment shall be
annually reviewed and approval shall be taken from Operating Head – General and
Corporate affairs.

 The functional department manager shall shortlist the resumes for interview based
on the job description.

 The positioning of the candidate in the company’s salary structure shall be

negotiated with the candidate by HR, based on his/ her qualifications, experience
and comparative positioning of the existing associates within the company.
  Background verification will be performed for selected candidates as per
background verification process.

 And candidates selected or kept on hold for future position and if not issued Letter
of Intent within 3 months from the date of selection will need an approval from
concerned operating head before issuing Letter of Intent.

 HR shall keep a track of each vacancy and prepare Management information

System indicating clearly the reason for vacancies pending for more than 75 days
and to be shared with concerned functional department manager.

 Candidates to be selected on the basis of eligibility and competency of or a

position.

 Aptitude Test will be conducted for selecting candidates as per the applicability of
process.

 All rehiring cases and recruitment of Family members of existing associates –

clearance from operating head – GCA & director- General Affairs.

 HR department will prepare a list of no poach companies on annual basis and get
it approved from OH – GCA and director – General Affairs.

 Any deviation from HMSI fitment criteria will require the approval of OH – GCA.

INTERVIEW PANEL

PANEL HR FUNCTIONAL HR FUNCTIONAL HR FUNCTION

MEMBERS AL

LEVEL 1ST ROUND 2ND ROUND 3RD ROUND

TM to SM T/S/DM DM TM/SM/DM DH T/S/DM OH

DM ” D/OH DM/DH OH DH/OH OH/Director

DH ’’ OH DM/DH/OH OH/Director

TM: Team Manager

SM: Senior Manager

DM: Deputy Manager

DH: Division Head

OH: Operation Head

6. POLICY ON COMPANY PRODUCT SCHEME

Supports associates financially to own company products. Scheme is applicable for all
our scooter/motorcycle models and associates can avail interest free loan amount upto
maximum of from ₹40000/- (all scooters), ₹44000/- (Twister), ₹45000/- (shine) and
₹50000/- (all motorcycle) if the cost of motorcycle is more than ₹50000/-.

PROVISIONS ARE BEING ADDED IN THE ABOVE POLICY

SCOOTER MOTORCYCLE

Activa & Aviator 40000 Dream Yuga, Dream Neo, Twister 45000

Activa & Dio 45000 Shine & Trigger 50000

Activa 125 (Any Model) 50000 Stunner (Any Model) 55000

Over and above if cost of motorcycle is more than 60000/- then loan amount will be
60000/-
  The recovery permission for loan: maximum 3years

 Loan recovered 36 equal installments from associates salary every month

subsequent to disbursement of loan.

 Not allowed to take the facility again till the time earlier loan has not been repaid.

7. POLICY ON FINANCIAL ASSISTANCE FOR EDUCATION OF

ASSOCIATES CHILDREN

 The policy has been introduced in view of the rising cost of education. In view of
extending financial support of Junior executive and above level associates’
children.

 4 years of service completed.

TERMS & CONDITIONS

 The policy shall come in force w.e.f. 1st March’14.

 HMSI shall pay ₹15000/- per child (limited to maximum 2 children)

 Assistance only once during education period.

 Child age 3years – 25 years.

 Income tax liability on the above amount ( if any) shall be borne by the concerned
associate.

PROCEDURE

 Company shall reimburse the amount subject to submission of the proofs and
limits. Associate shall submit duly filled application form along with required
documents to A & SR division.

 After verifying, prepare an advisory note to F & A for release of payment along
with salary.
  Advisory note shall be approached by OH – GCA or director General &
Corporative Affairs will be submitted to the F & A for payment.

 A & SR should keep proper record of eligibility and payment.

 Disciplinary action to be taken in case of false declaration.

 Management reserves the right to amend/ review or withdraw the policy at any
point of time.

8. NEW JOINEE EXPENSE REIMBURSEMENT (OUSTATION

CANDIDATE)
Joining expense reimbursement is applicable for all new joiners who have joined HMSI
and have relocated more than 200km from current job location to HMSI.

WHAT IS COVERED

Boarding & Lodging: 7days & 6nights hotel stay + 7days D.A associate only.

TRAVEL FARE

One way for associates and his family. Family includes- in case of married associate
spouse and kids, in case of unmarried associate mother and father.

SWOT ANALYSIS

STRENGTH
 Diversification

Honda is best known for its cars and trucks, the company actually started out in
the motorcycle business. Through competing in this business, Honda developed a
unique ability to build small and reliable engines. When executive decided to
diversify into the automobile industry, Honda was successful in part because it
leveraged this ability within its new business.
  Quality and customer satisfaction

Honda believes to materialize the quality; this surpasses the expectations of the
customers.

 Strong Brand

Honda is one of the famous and favorite brands of the customers. Because of its
strong brand it leads to more customers. The success has been due to the strong
legacy of the Honda brand.

 Strong Revenue

Solid sales of its motorcycles and weakness in the yen provided Honda’s earnings
with a boost in the first quarter and have prompted the vehicle maker to lift its full
year forecast.

 Market Share

Due to its manufacturing advantage, Honda has a major market share in most of
the products that it manufactures.

WEAKNESSES
 Dependence on North America to generate most of the Revenue

Honda depends on North America region, which mainly includes the U.S. and
Canada, to generate 55.6% of the company’s total revenue. At the moment, North
America is the main driver behind company’s growth where the motorcycle
revenue grew 20% and the automobile revenue grew by 19%.

 Low Investment in R & D Leading to Fewer Innovative Products

Honda has spent US$ 5.4 Billion for R & D in 2015. This amounted to 4.5% of the
company’s total revenue. Low investment in R & D leads to fewer innovative
 products and significantly undermines the company’s ability to compete in the
future.

 High Costs and Prices

Naturally, with a high investment in R & D and into the latest technology, the cost
of the product goes high and the pricing to end customer is high as well. This
might be a weakness of Honda but it needs to have this weakness, because it
cannot reduce its brand equity by lowering the prices.

 Hero Honda separation in India

At least in India, Honda motors suffered badly when Hero and Honda were
separated. As a result, Honda has had to re-plan its presence in India.

OPPORTUNITY

 Automobile Increasing

The number of automobiles across the world is increasing. One of the reasons is
the increase in buying power of individuals, another is that is the social norm now
to have a motorcycle or car. Thus consumption is at an all time high.

 Expansion in Developing Countries

Because of the rise in buying power, and the easy automobile loads provided by
banks, the purchases of automobiles are rising especially in developing countries.
Honda needs to take full advantage of this upswing in demand and capture the
market swiftly.

 Product Expansion

Adding more products in the portfolio and making more variants to increase the
product line are two tactics commonly used by automobile manufacturers. There
 are many considerations to be undertaken before launching a new model.
However, product expansion is the key to grow in a competitive world.

THREATS
 Competition

Competition from local and regional or national players in each of the countries it
is present in is denting the revenues of Honda.

 Fuel Prices

Although people have more funds now for buying cars, the rising cost of fuel is
troubling everyone and is one of the reasons that many people are still hesitant to
buy cars, because later on the fuel cost paid is more than the car.

 Rising Transportation and other Costs

One of the aspects plaguing all automobile manufacturers is the transportation as

well as the manufacturing and labor costs. With inflation, these costs are always
on the rise and hence are a point of concern.

KEY RESULT AREA OF THE ORGANIZATION

 DON’T GLOBALIZE, LOCALIZE

Honda is not a top-down company, controlled by headquarters. Instead, Honda

manufacturing subsidiaries virtually everywhere around the world operate as
autonomous companies, designing and producing vehicles based on local
conditions and consumer behavior. Virtually all industrial companies keep R&D
and other technical and design functions close to home, where they can be
 managed by executives who are miles removed from local preferences and
circumstances.

 EFFICIENCY FACTOR
Improve labor productivity, labor flexibility, good working conditions and capital
efficiency.

 RESOURCE AVAILABILITY
Availability of quality manpower availability, raw material and improvement in
infrastructure.

 EFFECTIVE COST CONTROLS

Close relationship with suppliers and goods distribution channels.

 ESTABLISHMENT OF EXPORT MARKETS

Growth of export markets is a not her key factor of the organization.

 SUCCESSFUL INDUSTRIAL RELATIONS POLICY

Ethical and tactical industrial relations.

 ACCESS TO THE LATEST AVAILABLE AND MOST EFFICIENT

TECHNOLOGY AND TECHNIQUES
The degree of investment in technological improvements and product
development.

SIGNIFICANT FACTORS FOR SUCCESS

 HMSI has achieved what was once considered almost unthinkable- its flagship
scooter, Activa, has beaten Hero Moto Corp’s all time global best seller, the
 motorcycle Splendor, in sales for all six months of 2016, five years after Hero and
Honda called off their joint venture Hero Honda.

 The CB unicorn 160 is the Honda’s fifth attempt in the class of motorcycles that
garnered some success for the company.

SYSTEM OF ACCOUNTING FOLLOWED

The accounting system of HMSI is supported by German software system SAP. It builds
service orientation directly into its solutions through a technology called as SAP Net
Weaver. The system carries out FIFO valuation method. FIFO (First In First Out)
valuation is a method to evaluate the enterprise stock of a single or multiple materials as
realistically as possible. FIFO method to facilitates to be carried out inventory
movements on first stocks of material to be received are first to be consumed. The value
of the stocks is therefore calculated based on the lasts stock received .

The main advantage of SAP system is that, this system enables the users to get to know
the full details of an employee right from the day of his/her arrival in the organization.
Pay role is processed using SAP. Even if an employee is absent, that will be also marked
in his profile using SAP. Finally, when an employee salary is computed, the SAP will
calculate his/her salary depending upon the number of leaves taken. This will help the
organization into reducing its human effort.

PRODUCT PROMOTIONAL MEASURES

MARKETING OBJECTIVES

Honda Company has maintained its strategy to introduce the two wheelers in the market
with some strategic initiatives. The company is also going to establish new
manufacturing plant to enhance its production capacity and provides the motorcycles in
the market in huge numbers. The company will tap the new markets, from where they can
get good revenue over their motorcycles and get good market share of their products.

MARKET SEGMENTATION

The company is providing such products, which are good for every segment of society.
These vehicles have good reputation and millions of motor bikes are sold every year
across the world. The latest models of this vehicle will grab the attention of its clients and
there are different features of the vehicles in every new model, which are great fun for the
motorcycle lovers.

TARGET MARKET

The motorcycles are not only good for the city but also for the rural areas due to its strong
and sustainable designs and structure. The people living in remote areas will prefer to buy
this motorcycle to cover long distances on this two wheeler motor bike and it will be
target market for this vehicle. Honda is the popular brand name and it has created good
image among its users.

PRODUCT DIFFERENTITION AND POSITIONING

Honda has a vast range of motorcycle models as this brand has been preparing the latest
models of motorcycles every year. Various new features are added in the new models to
make them vibrant and sophisticated. The brand has prepared the unique and innovative
styles of the vehicles, which can help them to meet their requirements. The brand is
leader in the automobile market and it can get attention of its clients.

TRAINING MEASURES

 Regular Training to line associates.

  On job and Off-Job Training for their development.

 Soft skills, behavioral, technical, self management, computer skills training

organization on regular interval.

SYSTEM FOLLOWED FOR PURCHASE OF MATERIALS

The materials are also purchased on the basis of the data notified by SAP. The software
intimates the respective department / purchase managers about the minimum stocks to
keep, stock level, materials to be purchased, the units from where purchases are made
nationally etc.

HUMAN RESOURCE WELFARE

 UNIFORM FACILITY
 2 pair of uniform per year.
 Safety shoes for safety of associates.
 Winter jacket for winter season.
 Locker facility.

 CANTEEN FACILITY
 Subsidized meal to all associates.
 Major portion of meal borne by company.
 Tea and snacks served in 2 breaks.
  Special food on festival.
 Special arrangement of food during navratras for associates who are
on fast.
 Neat, clean and hygienic food served in air conditioned canteen.

 OCCUPATIONAL HEALTH CENTER

 Well equipped medical room
 Qualified Doctors and qualified attendants.
 Ambulance is available to manage any emergency situation.
 Round the clock operational.
 All primary medical available.
 Routine health check of all the associates
 Hazardous area special annual health check up.

 INSURANCE (MEDICLAIM)
 All associates including family members are covered under
mediclaim policy.
 Personal Accident insurance all associates covered under.
 Benevolent fund associates in case death of any associate.

 HOME LOAN INTEREST SUBSIDY

 Home loan amount of 12 lac., HMSI shall reimburse 50% of the
interest based on applicable SBI home loan base rate (floating link).

 FINANCIAL ASSISTANCE FOR EDUCATION ASSISTANCE

CHILD
 Pay ₹10000/- per child ltd. to maximum of 2 children.
  PRODUCT LOAN SCHEME
 Interest free product loan provide to associates company two
wheelers.
 Flexible repayment upto 3 years.

 DIWALI GIFT
 Amount paid in salary ₹5100/- as on occasion of diwali festival.
 1kg dry fruits for all associates.

 FOUNDATIONAL/ ANNUAL DAY CELEBRATION

 A full day event for associates and their family member.
 Family member are invited and transport provided by company to
designated stop.
 Cultural entertainment and fun event.

MANPOWER PLANNING

Man power in HONDA MOTORCYCLE AND SCOOTER INDIA PVT. LTD. currently
is 3,858. The requirement of manpower is sent by the functional department manager to
the HR. The HR then suggest some resumes as per the requirement and the Functional
manager shortlist as per the job description. Then an interview is conducted.

FUTURE PLANS FOR GROWTH OF THE ORGANIZATION

HMSI AIM

To become an enterprise holding INDIA’s No.1 market share.

FUTURE PLANS

UNIT VOLUME 372 450

SHARE 24% 29%

OPERATING PROFIT (’00 Millions) 91.4 106.3

PROFIT RATIO 5.9 % 6.2 %

SALE / SERVICE NETWORK 1802 / 2788 2392 / 3727

YEAR 2020 VISION

 Honda’s main vision for the year 2020 is to hold 1st position in market share.

 To establish top-brand, firm on sociality / advancement / volume. Maintaining

competitive – strength of Asia, to utilize for the world.

 To lead as the No.1 motorcycle company, leaving behind Hero.

 Increase sale Volume (including export) to 4.5 million unit

 Increase sale amount to180 Billion INR

 Increase the business profit ratio to10.6 Billion INR (5.9%)

VIEWS OF MANAGER
  “HR is one such domain where you have to deal with different and diverse culture
people. In HONDA we provide with trainings so that the associates could work in
the HONDA culture. If any problem arises the HR has to reported and we have to
find the solution to it. Because it is HR who is responsible at first.

We have to find the best human sources to work in the organization. Sometimes its
possible that we shortlist 10 candidates but none of them is fit for the HONDA
work culture.

Improvements that I would like to bring are, to improve the relations with other
associates. Because if the HR’s amongst they are not in peace then the whole
organization will be disturbed.”

ADVANTAGES & DRAWBACKS OF THE ORGANIZATION

STRUCTURE

ADVANTAGES

 There is a narrow span of control i.e. each manager has a small number
of employees under their control. This means that employees can be
closely supervised.

 There is a clear management structure.

 The function of each layer will be clear and distinct. There will be clear
lines of responsibility and control.

 Clear progression and promotion ladder.

DISADVANTAGES
 Tall structures tend to centralize decisions, while flat organizations favor
decentralized decision-making. However, nothing prevents a company from using both,
depending on the circumstances.

 Slow Decision Making

Decision making is usually slow in tall structures because of centralized decision

making. This delay reduces operational flexibility, which could mean losing out to
agile competitors.

 Higher Costs

Higher compensation and administrative costs for different management layers.

This additional management overhead reduces net income and cash flows.

RECOMMENDATIONS TO THE ORGANIZATION

 Strengthen Human Resource Development & Talent Management

 Improve Industrial Relation situation.
 Review policies and Human Resource system.
 Strengthen Corporate Governance System and legal compliances.
 Improve quality and admin services.
 Strengthen security and vigilance system.