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)
AGA!!ATH I!"TITUTE O# MA!AGEME!T "$IE!$E"% DELHI
#aculty "upervisor "U&MITTED &Y:
Ms' "u(ita Da)iya ")*eta ai(
"ara+preet ,aur
Geeti-a ")arma
!e)a .erma
"idd)a(t ,alra


1
"E""IO!/ 0112 3 0144
AGA!!ATH I!"TITUTE O# MA!AGEME!T "$IE!$E"
DELHI
#A$ULTY GUIDE $ERTI#I$ATE
his is to !ertif" that group number #$ of BB% 1 "ear has
!ompleted this pro&e!t report under m" super'ision(
he )or* done b" them is original and satisfa!tor"(
GROU5 MEM&R" #A$ULTY I!$HARGE
")*eta ai(
"ara+preet ,aur Ms' "u(ita Da)iya
Geeti-a ")arma
!e)a .erma
"idd)a(t ,alra
+
A$,!O6LEDGEME!T
he goal )as fi,ed- mo'es )ere !al!ulated and )e mo'ed )ith full enthusiasm- 'igor
and *een interest(
here )as a time )hen it pro'ed to be on up hill tas*- the goal seeming be"ond our rea!h(
But as )or*ed progressed our determination and )ill po)er gre) stronger and
!ompletion of this )or* further !onfined our belief that- .)here there is a )ill there is a
)a"(

It/s a sheer pleasure for us to state )ith !andidl" that this entire pro&e!t is a heartil"
attempt to rea!h ma,imum a!!ura!"( I highl" e,press our sin!ere than*s to 0rs( Sunita
Dahi"a )ho helped us throughout the pro&e!t(

1ast but not least I )ould li*e to pleasure a )ord of appre!iation to our famil" and
friends )ho supported and helped us to ma*e this pro&e!t a su!!ess(
$
E7E$UTI.E "UMMARY
0aruti )as in!orporated in 1231 as a Go'ernment !ompan"( he" started produ!tion in
De!ember 123$ )ith !ollaboration from Su4u*i of 5apan( Initiall" Su4u*i had +67 equit"
)hi!h has sin!e in!reased to 8#7(
he original model )as repla!ed in the +nd "ear itself )ith a ne) streamlined model )ith
more leg room and better fuel effi!ien!"( % 'an (no) !alled 9mni) in t)o t"pes of roof
and a 5eep t"pe 'ehi!le G"ps"- )ere also introdu!ed in qui!* su!!ession(
he 'arious !ars pro'ed e,tremel" popular and produ!tion has alread" !rossed 1##-###
nos( )hi!h is 6#7 of the total produ!tion of passenger !ar( he !ompan" has an up to
date manufa!turing fa!ilit" and absorbed the te!hnolog" su!!essfull"( he foreign equit"
and presen!e of a number of 5apanese e,perts has helped in the stabilisation
of produ!tion(
In the initial stages 0aruti set up a limited :;D department for absorbing the te!hnolog"
that )as being imported( <'en at this stage 0aruti made !ertain modifi!ations in the
imported te!hnolog" on mar*et !onsiderations e(g( %ppli!ation engineering to de'elop
spe!ial bodies for s!hool 'an-ta,i- deli'er" 'an- e,e!uti'e 'an- ambulan!e(
Impro'ed suspension and seating for 90NI- )hi!h )as used more as a !ar than a
!ommer!ial 'ehi!le( 0odifi!ations in G"ps" and 0aruti 3## to meet e,port requirements
of 'arious !ountries(
8
$O!TE!T"
$HA5TER/ 48I(troductio( 980:
%utomobile industr" 6
=ompan" >rofile 1#
S(?(9(( %nal"sis 16
=ompetitors Information +6
$HA5TER/ 08 Researc) Met)odology 02
:esear!h 9b&e!ti'es +3
:esear!h design +3
Data Sour!es +3
@uestionnaire DesignA Bormulation +3
Sample Design +2
1imitations of the resear!h +2
$HA5TER/ ;- =on!eptual Dis!ussion $#
$HA5TER/ <8 Data anal"sis and Interpretation ;28=2
$HA5TER/ =8 =on!lusionsA Bindings C2
$HA5TER/ 98 :e!ommendations 6#
$HA5TER/ :- %nne,ure 61
$HA5TER/ 2- Bibliograph"A :eferen!es 66

C
$HA5TER/84
IN:9DU=I9N
AUTOMO&ILE I!DU"TRY
Indian automobile industr" has gro)n leaps and bounds sin!e 1323- a time )hen a !ar
had tou!hed the Indian streets for the first time( %t present it holds a promising tenth
position in the entire )orld )ith being D + in t)o )heelers and D 8 in !ommer!ial
'ehi!les( ?ithstanding a gro)th rate of 137 per annum and an annual produ!tion of
more than + million units- it ma" not be an e,aggeration to sa" that this industr" in the
!oming "ears )ill soon tou!h a figure of 1# million units per "ear(
Reaso(s of Gro*t)
<!onomi! liberali4ation- in!rease in per !apita in!ome- 'arious ta, relief poli!ies- eas"
a!!essibilit" of finan!e- laun!h of ne) models and e,!iting dis!ount offers made b"
dealers all together ha'e resulted in to a stupendous gro)th of India automobile industr"(
MAR,ET "HARE
%utomobile industr" of India !an be broadl" !lassified under passenger 'ehi!les-
!ommer!ial 'ehi!les- three )heelers and t)o )heelers- )ith t)o )heelers ha'ing a
ma,imum mar*et share of more than EC7( %utomobile !ompanies of India- Forea-
<urope and 5apan ha'e a signifi!ant hold on the Indian mar*et share( ata 0otors
produ!es ma,imum numbers of mid and large si4e !ommer!ial 'ehi!les- holding more
that 6#7 of the mar*et share( 0otor!"!les top the !harts of t)o )heelers )ith Gero
Gonda being the *e" pla"er( Ba&a& b" far is the number one manufa!turer of three
)heelers in India(
>assenger 'ehi!le se!tion is ma&orl" ruled b" the !ar manufa!turers !apturing o'er 3+7
of the total mar*et share( 0aruti sin!e long has been the biggest !ar manufa!turer and
holds more that C#7 of the entire mar*et(
Global re!ession has impa!ted- the Indian automobile industr" also and !an be seen
!learl" in the sales figures of the last finan!ial "ear( <'en then this industr" has high
hopes in +##2-+#1#- as ban*s ha'e redu!ed loan interest rates and the ma&or !hu!* of
automobile !ustomers belong to the middle in!ome group )ho are be!oming
e!onomi!all" stronger )ith e'er" passing da"(

6
he first automobile in India rolled in 132E in Bomba"(
India is being re!ogni4ed as potential emerging auto mar*et(
Boreign pla"ers are adding to their in'estments in Indian auto industr"(
?ithin t)o-)heelers- motor!"!les !ontribute 3#7 of the segment si4e(
+A$rd of auto !omponent produ!tion is !onsumed dire!tl" b" 9<0s(
India is the largest three-)heeler mar*et in the )orld(
India is the largest t)o-)heeler manufa!turer in the )orld(
India is the se!ond largest tra!tor manufa!turer in the )orld(
India is the fifth largest !ommer!ial 'ehi!le manufa!turer in the )orld(
he number one global motor!"!le manufa!turer is in India(
India is the fourth largest !ar mar*et in %sia - re!entl" !rossed the 1 million mar*(
"EGME!T ,!O6 HO6
%mong the t)o-)heeler segment- motor!"!les ha'e ma&or share in the mar*et( Gero
Gonda !ontributes C#7 motor!"!les to the mar*et( In it Gonda holds 867 share in
s!ooter and HS ma*es 3+7 of the mopeds in the !ountr"(
8#7 of the three-)heelers are used as goods transport purpose( >iaggio holds 8#7 of the
mar*et share( %mong the passenger transport- Ba&a& is the leader b" ma*ing 637 of the
three-)heelers(
=ars dominate the passenger 'ehi!le mar*et b" E27( 0aruti Su4u*i has C+7 share in
passenger !ars and is a !omplete monopol" in multi purpose 'ehi!les( In utilit" 'ehi!les
0ahindra holds 8+7 share(
In !ommer!ial 'ehi!le- ata 0otors dominates the mar*et )ith more than 6#7 share(
ata 0otors is also the )orldIs fifth largest medium ; hea'" !ommer!ial 'ehi!le
manufa!turer
MI"$ELLA!EOU"'
G"derabad- the Gi-e!h =it"- is going to !ome up )ith the first automobile mall of the
!ountr" b" the se!ond half of +##3( It )ould be set up b" !it"-based >ra&a" <ngineers
S"ndi!ate in area of more than $C a!res( his I%utopolisI )ould ha'e fa!ilities for
automobile finan!ing institutions and insuran!e ser'i!es to !reate a !omplete range of
E
ser'i!es required for both auto !ompanies and !ustomers( It )ill also ha'e a multi-
purpose !on'ention !entre for auto fairs and produ!t laun!hes(
$ars +y 5rice Ra(ge
U(der Rs' ; La-)s 0aruti 3##- 0aruti %lto- 9mni
:e'a
ata Nano
Rs' ;8= La-)s %mbassador
=he'rolet %'eo U-H%- =he'rolet
Spar*- =he'rolet 9pel =orsa
Biat >alio- Biesta- Bord I!on
G"undai Santro- G"undai i1#-
G"undai Get4
0aruti Jen- 0aruti ?agon :-
0aruti Hersa- 0aruti <steem-
0aruti G"ps"- 0aruti Su4u*i %-
Star- 0aruti Su4u*i Jen <stilo-
0aruti Su4u*i S)ift- 0aruti
Su4u*i :it4 Ne)- 0ahindra 1ogan
Indigo K1- Indigo 0arina
ata Indi!a- o"ota @ualis- ata Indigo =S
Rs' =841La-)s =he'rolet S)ing- =he'rolet %'eo-
=he'rolet a'era- =he'rolet 9ptra
0agnum
Biat 1inea- Biat %d'enture- Biat
Grande >unto- Bord Busion
G"undai %!!ent- G"undai <lantra-
G"undai i+#- G"undai Herna-
G"undai Sonata <mbera- Gonda
=it" JK- Gonda 5a44 Ne)
0aruti Baleno- 0aruti Su4u*i S,8-
0aruti Su4u*i S)ift D4ire-
0ahindra S!orpio- 0itsubishi
1an!er- 0itsubishi =edia-
0ahindra Bolero
o"ota Inno'a- ata Sumo Hi!ta-
ata Sumo Grande- ata Safari
3
S*oda Babia
4184= La-)s =he'rolet BoresterBord 0ondeo ;
Bord <ndea'our- Bord Bo!us
Gonda =i'i!
S*oda 9!ta'ia ; =ombi
o"ota =orolla- o"ota =orolla
%ltis
Hol*s)agen 5etta
Rs' 4=8;1 La-)s %udi %8
=he'rolet =apti'a
Gonda =:-H- Gonda =:H +##3-
Gonda =i'i! G"brid- Gonda
%!!ord- G"undai Santa Be Ne)
0aruti Su4u*i Grand Hitara-
0itsubishi >a&ero- 0er!edes =
=lass
Ne) S*oda Superb Ne)
9pel He!tra
S*oda 1aura
o"ota =amr"- Bord <ndea'our
hunder >lus- erra!an ; u!son-
o"ota Bortuner Ne)
;18>1Hol*s)gen >assat - Hol*s)agen 5etta
Rs' ;18<=La-)s %udi %6- %3 ; %udi - %UDI
@E
B0? KC- C Series ; E Series
0itsubishi 0ontero- 0er!edes
Ben4 S-=lass- 0er!edes < =lass-
S =lass- S1F- S1 ; =1S-=lass
>ors!he Bo,ster- =a"enne- 211
=arrera ; =a"man S
o"ota >rado
Hol'o K!2#- Hol'o S3#
A+ove Rs' 4 $rore Bentle" %rnage- Bentle"
=ontinental G ; Bl"ing Spur-
0a"ba!h
:olls :o"!e >hantom
he segregation is made on <,-Sho)room pri!e of base models(
2
T)e follo*i(g li(-s *ill give you t)e complete picture of I(dia( Auto I(dustry/
Industr" Gro)th
he passenger !ar and motor!"!le
segment in Indian auto mar*et is gro)ing
b" 3-2 per !ent( he t)o-)heeler segment
)ill !lo!* 11(C7 rise b" +##E(
=ommer!ial 'ehi!le to gro) b" C(+ per
!ent(
Hehi!le >rodu!tion
India is the 11th largest >assenger =ars
produ!ing !ountries in the )orld and 8th
largest in Gea'" ru!*s( 0aruti Ud"og
1td( is the leading 8-)heelers
manufa!turer( Gero Gonda is the leading
+-)heelers manufa!turer(
$OM5A!Y 5RO#ILE
0aruti Ud"og 1td( (0U1) is the first automobile !ompan" in the )orld to be honoured
)ith an IS9 2###:+### !ertifi!ate( he !ompan" has a &oint 'enture )ith Su4u*i 0otor
=orporation of 5apan( It is said that the !ompan" ta*es onl" 18 hours to ma*e a !ar( Be)
of the popular models of 0U1 are %lto- Baleno- S)ift- ?agon-: and Jen(
?UI$, #A$T"
Lear of <stablishment Bebruar" 1231
Hision Mhe 1eader in he Indian %utomobile
Industr"- =reating =ustomer Delight and
ShareholderIs ?ealthN % pride of India(M
Industr" %utomoti'e - Bour ?heelers
1istings ; its !odes BS< - =ode: C$+C##
NS< - =ode: 0%:UI
Bloomberg: 0U1OIN
:euters: 0:I(B9
5oint Henture ?ith Su4u*i 0otor =ompan"- no) Su4u*i
1#
0otor =orporation- of 5apan in 9!tober
123+(
:egistered ; =orporate 9ffi!e 11th Bloor- 5ee'an >ra*ash
+C- Fasturba Gandhi 0arg
Ne) Delhi - 11###1- India
el(: P(21)-(11)-+$$163$1 (1# lines)
Ba,: P(21)-(11)-+$$13EC8- +$E1$CEC
ele,: #$1-6C#+2 0U1 IN
?or*s >alam Gurgaon :oad
Gurgaon -1++#1C
Gar"ana- India
el(: P(21)-(1+8)-+$8#$81-C- +$81$81-C
?ebsite )))(marutiud"og(!om
0I1<S9N<S
1231
0aruti Ud"og 1td( )as in!orporated(
123+ Steped into a 5H )ith S0= of 5apan(
123$ 0aruti 3##- a E26 !! hat!hba!*- IndiaIs first affordable !ar )as
produ!ed(
1238 Installed !apa!it" rea!hed 8#-### units( 9mni- a E26 !! 0UH
)as in produ!tion(
123C 1aun!h of 0aruti G"ps" (2E#!!- 8?D off-road 'ehi!le)(
1236 >rodu!ed 1##-### 'ehi!les (!umulati'e produ!tion)(
123E <,ported first lot of C## !ars to Gungar"(
1233 Installed !apa!it" in!reased to 1##-### units(
122+ S0= in!reases its sta*e to C# per !ent(
1228 >rodu!ed the 1 millionth 'ehi!le sin!e the !ommen!ement of
produ!tion(
122C Se!ond plant laun!hed- the installed !apa!it" rea!hed +##-###
units(
1226 1aun!h of +8-hour emergen!" on-road 'ehi!le ser'i!e(
122E >rodu!ed the + millionth 'ehi!le sin!e the !ommen!ement of
11
produ!tion(
1223 1aun!h of )ebsite as part of =:0 initiati'es(
1222 1aun!h of 0aruti - Su4u*i inno'ati'e traffi! beat in Delhi and
=hennai as so!ial initiati'es(
+### ID: (Institute of Dri'ing raining and :esear!h) laun!hed
&ointl" )ith Delhi go'ernment to promote safe dri'ing habits(
+##1 1aun!h of !ustomer information !enters in G"derabad-
Bangalore- and =hennai(
+##+ S0= in!reases its sta*e to C8(+ per !ent(
1aun!h of 0aruti Binan!e )ith 1# finan!e !ompanies in
0umbai(
Start of 0aruti rue 'alue in 0umbai(
+##$ >rodu!tion of 8 millionth 'ehi!le(
1isted on BS< and NS< after a publi! issue o'ersubs!ribed 1#
times(
+##8 0aruti !losed the finan!ial "ear +##$-#8 )ith an annual sale
of 8E+1++ units- the highest e'er sin!e the !ompan" began
operations +# "ears ago(
+##C he fiftieth la*h !ar rolls out in %pril- +##C(
$urre(t sales of automo+iles
1+
Maruti Estilo
1( 0aruti 3##: 1aun!hed - 123$
+( 0aruti 9mni: 1aun!hed - 1238
$( 0aruti G"ps": 1aun!hed - 123C
8( 0aruti %lto: 1aun!hed - +###
C( 0aruti ?agon-:: 1aun!hed - +##+
6( 0aruti Hersa: 1aun!hed - +##$
E( 0aruti Grand Hitara 1aun!hed - +##8
3( 0aruti Su4u*i S)ift: 1aun!hed - +##C
2( 0aruti Su4u*i SK8: 1aun!hed - +##E
1#( 0aruti S)ift D4ire: 1aun!hed - +##3
11( 0aruti Su4u*i %-S%:: 1aun!hed - +##3
1+( 0aruti Su4u*i :it4: 1aun!hed - +##2
1$( 0aruti Su4u*i <stilo: 1aun!hed Q +##2
$ompa(y overvie*
0aruti Ud"og 1imited (0U1)- established in 1231- had a prime ob&e!ti'e to meet the
gro)ing demand of a personal mode of transport- )hi!h is !aused due to la!* of effi!ient
publi! transport s"stem( he in!orporation of the !ompan" )as through an %!t of
>arliament(
Su4u*i 0otor =ompan" of 5apan )as !hosen from se'en other prospe!ti'e partners
)orld)ide( Su4u*i )as due not onl" to its undisputed leadership in small !ars but also to
!ommitments to a!ti'el" bring to 0U1 !ontemporar" te!hnolog" and 5apanese
management pra!ti!es (that had !atapulted 5apan o'er US% to the status of the top auto
manufa!turing !ountr" in the )orld)( at 0aruti Ud"og 1td(
% li!ense and a 5oint Henture agreement )ere signed bet)een Go'ernment of India and
Su4u*i 0otor =ompan" (no) Su4u*i 0otor =orporation of 5apan) in 9!t 123+(
1$
he ob&e!ti'es of 0U1- then are as !ited belo):
0oderni4ation of the Indian %utomobile Industr"(
>rodu!tion of fuel-effi!ient 'ehi!les to !onser'e s!ar!e resour!es(
>rodu!tion of large number of motor 'ehi!les )hi!h )as ne!essar" for e!onomi!
gro)th(
In +##1- 0U1 be!ame one of the first automobile !ompanies- globall"- to be honoured
)ith an IS9 2###:+### !ertifi!ate( he produ!tionA :;D is spread a!ross +2E a!res )ith
$ full"-integrated produ!tion fa!ilities( he 0U1 plant has alread" rolled out 8($ million
'ehi!les( he fa!t sa"s that- on an a'erage t)o 'ehi!les roll out of the fa!tor" in e'er"
single minute( he !ompan" ta*es appro,imatel" 18 hours to ma*e a !ar( NReditS ot onl"
this- )ith range of 11 models in C# 'ariants- 0aruti Su4u*i fits e'er" !ar-bu"erIs budget
and an" dream(
0aruti Su4u*i is one of IndiaIs leading automobile manufa!turers and the mar*et leader
in the !ar segment- both in terms of 'olume of 'ehi!les sold and re'enue earned( Until
re!entl"- 13(+37 of the !ompan" )as o)ned b" the Indian go'ernment- and C8(+7 b"
Su4u*i of 5apan( he Indian go'ernment held an initial publi! offering of +C7 of the
!ompan" in 5une +##$( %s of 0a" 1#- +##E- Go't( of India sold its !omplete share to
Indian finan!ial institutions( ?ith this- Go't( of India no longer has sta*e in 0aruti
Ud"og(
0aruti Ud"og 1imited (0U1) )as established in Bebruar" 1231- though the a!tual
produ!tion !ommen!ed in 123$ )ith the 0aruti 3##- based on the Su4u*i %lto *ei !ar
)hi!h at the time )as the onl" modern !ar a'ailable in India- itsI onl" !ompetitors- the
Gindustan %mbassador and >remier >admini )ere both around +C "ears out of date at
that point( hrough +##8- 0aruti has produ!ed o'er C 0illion 'ehi!les( Marutis are sold
in India and 'arious se'eral other !ountries- depending upon e,port orders( =ars similar
to 0arutis (but not manufa!tured b" 0aruti Ud"og) are sold b" Su4u*i and manufa!tured
in >a*istan and other South %sian !ountries(
he !ompan" annuall" e,ports more than C#-### !ars and has an e,tremel" large
domesti! mar*et in India selling o'er E$#-### !ars annuall"( 0aruti 3##- till +##8- )as
the IndiaIs largest selling !ompa!t !ar e'er sin!e it )as laun!hed in 123$( 0ore than a
million units of this !ar ha'e been sold )orld)ide so far( =urrentl"- 0aruti %lto tops the
sales !harts and 0aruti S)ift is the largest selling in %+ segment(
Due to the large number of 0aruti 3##s sold in the Indian mar*et- the term M0arutiM is
!ommonl" used to refer to this !ompa!t !ar model( ill re!entl" the term M0arutiM- in
popular Indian !ulture- )as asso!iated to the 0aruti 3## model(
0aruti Su4u*i India 1imited- a subsidiar" of Su4u*i 0otor =orporation of 5apan- has
been the leader of the Indian !ar mar*et for o'er t)o de!ades(
18
It/s manufa!turing fa!ilities are lo!ated at t)o fa!ilities Gurgaon and 0anesar south of
Ne) Delhi( 0aruti/s Gurgaon fa!ilit" has an installed !apa!it" of $C#-### units per
annum( he 0anesar fa!ilities- laun!hed in Bebruar" +##E !omprise a 'ehi!le assembl"
plant )ith a !apa!it" of 1##-### units per "ear and a Diesel <ngine plant )ith an annual
!apa!it" of 1##-### engines and transmissions( 0anesar and Gurgaon fa!ilities ha'e a
!ombined !apabilit" to produ!e o'er E##-### units annuall"(
0ore than half the !ars sold in India are 0aruti !ars( he !ompan" is a subsidiar" of
Su4u*i 0otor =orporation- 5apan- )hi!h o)ns C8(+ per !ent of 0aruti( he rest is o)ned
b" the publi! and finan!ial institutions( It is listed on the Bomba" Sto!* <,!hange and
National Sto!* <,!hange in India(
During +##E-#3- 0aruti Su4u*i sold E68-38+ !ars- of )hi!h C$-#+8 )ere e,ported( In all-
o'er si, million 0aruti !ars are on Indian roads sin!e the first !ar )as rolled out on
De!ember 18- 123$(
0aruti Su4u*i offers 1+ models- 0aruti 3##- 9mni- %lto- Hersa- G"ps"- % Star- ?agon :-
Jen <stilo- S)ift- S)ift D4ire- SK8- Grand Hitara( S)ift- S)ift d4ire- % star and SK8 are
maufa!tured in 0anesar- Grand Hitara is imported from 5apan as a !ompletel" built unit
(=BU)- remaining all models are manufa!tured in 0aruti Su4u*iIs Gurgaon >lant(
Su4u*i 0otor =orporation- the parent !ompan"- is a global leader in mini and !ompa!t
!ars for three de!ades( Su4u*i/s te!hni!al superiorit" lies in its abilit" to pa!* po)er and
performan!e into a !ompa!t- light)eight engine that is !lean and fuel effi!ient(
0aruti is !learl" an .emplo"er of !hoi!eT for automoti'e engineers and "oung managers
from a!ross the !ountr"( Nearl" EC-### people are emplo"ed dire!tl" b" 0aruti and its
partners(
he !ompan" 'ou!hes for !ustomer satisfa!tion( Bor its sin!ere efforts it has been rated
(b" !ustomers)first in !ustomer satisfa!tion among all !ar ma*ers in India for nine "ears
in a ro) in annual sur'e" b" 5 D >o)er %sia >a!ifi!(
0aruti Su4u*i )as born as a go'ernment !ompan"- )ith Su4u*i as a minor partner to
ma*e a peopleIs !ar for middle !lass India( 9'er the "ears- the produ!t range has
)idened- o)nership has !hanged hands and the !ustomer has e'ol'ed( ?hat remains
un!hanged- then and no)- is 0aruti/s mission to motorise India(
@A MARUTI TRUE .ALUE /8
1C
0aruti rue ser'i!e offered b" 0aruti Ud"og to its !ustomers( It is a mar*et
pla!e for used 0aruti Hehi!les( 9ne !an bu"- sell or e,!hange used 0aruti
'ehi!les )ith the help of this ser'i!e in India
$OM5ETITOR" I!#ORMATIO! /8
MARUTI UDYOG LIMITED Managing competition successfully
Maruti Udyog Limited BMULC )as established in Beb 1231 through an %!t of
>arliament- to meet the gro)ing demand of a personal mode of transport !aused b" the
la!* of an effi!ient publi! transport s"stem( It )as established )ith the ob&e!ti'es of -
moderni4ing the Indian automobile industr"- produ!ing fuel effi!ient 'ehi!les to !onser'e
s!ar!e resour!es and produ!ing indigenous utilit" !ars for the gro)ing needs of the
Indian population( % li!ense and a 5oint Henture agreement )ere signed )ith the Su4u*i
0otor =ompan" of 5apan in 9!t 123$- b" )hi!h Su4u*i a!quired +67 of the equit" and
agreed to pro'ide the latest te!hnolog" as )ell as 5apanese management pra!ti!es( Su4u*i
)as preferred for the &oint 'enture be!ause of its tra!* re!ord in manufa!turing and
selling small !ars all o'er the )orld( here )as an option in the agreement to raise
Su4u*i/s equit" to 8#7- )hi!h it e,er!ised in 123E( Bi'e "ears later- in 122+- Su4u*i
16
further in!reased its equit" to C#7 turning 0aruti into a non-go'ernment organi4ation
managed on the lines of 5apanese management pra!ti!es(
0aruti !reated histor" b" going into produ!tion in a re!ord 1$ months( 0aruti is the
highest 'olume !ar manufa!turer in %sia- outside 5apan and Forea- ha'ing produ!ed o'er
C million 'ehi!les b" 0a" +##C( 0aruti is one of the most su!!essful automobile &oint
'entures- and has made profits e'er" "ear sin!e in!eption till +###-#1( In +###-#1-
although 0aruti generated operating profits on an in!ome of :s 2+(C billion- high
depre!iation on ne) model laun!hes resulted in a boo* loss(
$OM5ETITI.E #OR$E" I! I!DIA! 5A""E!GER $AR MAR,ET
$ritical Issues a(d #uture Tre(ds
he !riti!al issue fa!ing the Indian passenger !ar industr" is the attainment of brea*-e'en
'olumes( his is related to the quantum of in'estments made b" the pla"ers in !apa!it"
!reation and the selling pri!e of the !ar( he amount of in'estment in !apa!ities b"
passenger !ar manufa!turers in turn depends on the produ!tion
T)reat from t)e (e* players/ I(creasi(g
U 0ost of the ma&or global pla"ers are present in the Indian mar*etN fe) more are
e,pe!ted to enter(
Binan!ial strength assumes importan!e as high are required for building !apa!it" and
maintaining adequa!" of )or*ing !apital(
%!!ess to distribution net)or* is important(
1o)er tariffs in post ?9 ma" e,pose Indian !ompanies to threat of imports(
Rivalry *it)i( t)e i(dustry/ Hig)
U here is *een !ompetition in sele!t segments( (!ompa!t and mid si4e segments)(
U Ne) multinational pla"ers ma" enter the mar*et(
Mar-et stre(gt) of suppliers/ Lo*
% large number of automoti'e !omponents suppliers(
%utomoti'e pla"ers are rationali4ing their 'endor base to a!hie'e !onsisten!" in qualit"(
Mar-et stre(gt) of co(sumers/ I(creasi(g
1E
U In!reased a)areness among !onsumers has in!reased e,pe!tations( hus the abilit"
to inno'ate is !riti!al(
U >rodu!t differentiation 'ia ne) features- impro'ed performan!e and after-sales
support is !riti!al(
U (
$OM5ETITOR A!ALY"I"
HYU!DAI MOTOR I!DIA LIMITED
G"undai 0otor India 1imited (G0I1) is a )holl" o)ned subsidiar" of G"undai 0otor
=ompan"- South Forea and is the se!ond largest and the fastest gro)ing !ar manufa!turer
in India ( G0I1 presentl" mar*ets o'er +C 'ariants of passenger !ars in si, segments( he
Santro in the B segment- and Get4 in the BP segment(
HYU!DAI "A!TRO
?e are mainl" going to !on!entrate on the 'arious mar*eting and positioning strategies of
G"undai Santro as against that of 0aruti Jen and %lto and G"undai Get4 as against
0aruti S)ift(
5O"ITIO!I!G O# "A!TRO
13
he old positioning of the Santro )as that pf a Vfamil" !ar/- this positioning strateg" )as
!hanged in around +##+ and Santro )as repositioned as to that of Va smart !ar for "oung
people(/ he target age group for the !ar had no) shifted from $#-$C "ears to +C-$#
"ears( he repositioning follo)ed the fa!e-lifts the !ar has been getting from time to time
in the form of engine upgradation- ne) po)er steering- automati! transmission- et!- to
*eep the e,!itement around it ali'e in the highl" !ompetiti'e small !ar mar*et( he
repositioning also !omes ahead of the possible laun!h of a ne) design Santro- and the
super B-segment !ar VGet4/- sometime in +##$(
he Santro )as gi'en a fresh ne) positioning W from a Dcomplete family carE to a
Dsu(s)i(e carE denoting a fresh ne) attitude and a V!hanging "our life/ positioning(%s
the a'erage age of a !ar o)ner has de!lined from around $#-$C three "ears ago to +C-$#-
primaril" be!ause of !hanging lifest"les- !heap and easil" a'ailable finan!e- et!( the
!ompan" thought that instead of promoting the Santro as a famil" !ar- it should be
promoted as a !ar that !an !hange the life of a "oung person sin!e man" of the bu"ers
)ere "oung bu"ers(
HYU!DAIE" 5RI$I!G "TRATEGY
?ith the laun!h of 0aruti S)ift re!entl" a pri!e )ar )as e,pe!ted to *i!* in (
Immediatel" after maruti raised pri!es on its debutante G"undai 0otor India hit ba!*
)ith a :s 16-###-12-### mar*do)n on three ne) 'ariants of Santro King(
he !ompan" has introdu!ed the KF and K1 'ariants at a lo)er tag of :s $-+6-222 and
:s ($-8C-222 respe!ti'el"(he ne) pri!e 'ariants are li*el" to gi'e 0aruti/s e,isting B-
segment models- Jen and ?agon: a run for their mone"( G"undai has also laun!hed a
ne) non-%= 'ariant of the Santro at :s +(E2 la*h- a tad higher than )hat the e,isting
non-%! Santro !osts( he ne,t offensi'e is due from 0aruti( ?ith the Santro/s ne) pri!e
positioning- Jen and parti!ularl" ?agon: ma" be due for a !orre!tion- or at least a
limited-period sub'ention( If that happens the domino effe!t )ill *i!* in a!ross the B-
segment(
G"undai is positioning its ne) 'ariants on the te!h platform( Strapped )ith 1(1 litre
engine )ith e:1K %!ti'e Intelligen!e te!hnolog"- the ne) 'ariants also !ome )ith ne)
!olour-!oordinated interiors- a ne) front grill and a 8-speed %= blo)er that ma*es the air
!onditioning more effi!ient(
TATA MOTOR"
<stablished in 128C- ata 0otors is IndiaIs largest and onl" full" integrated automobile
!ompan"( ata 0otors began manufa!turing !ommer!ial 'ehi!les in 12C8 )ith a 1C-"ear
!ollaboration agreement )ith Daimler Ben4 of German"(
TATA I!DI$A 3 Tata motors flags)ip +ra(d
12
he !ompan"Is passenger !ar range !omprises the hat!hba!* Indi!a- the Indigo sedan and
the 0arina- its station )agon 'ariant- in petrol and diesel 'ersions(he ata Indi!a- IndiaIs
first indigenousl" designed and manufa!tured !ar- )as laun!hed b" ata 0otors in 1222
as part of its ongoing effort to)ards gi'ing India transport solutions that )ere designed
for Indian !onditions( =urrentl"- the !ompan"Is passenger !ars and multi-utilit" 'ehi!les
ha'e a 16-per !ent mar*et share(
5O"ITIO!I!G O# I!DI$A
ata has positioned Indi!a as Fmore car per carG( he ne) !ar offers more spa!e- more
st"le- more po)er and more options( <mphasi4ing the deli'er" of )orld !lass qualit"(
he" ha'e tried to redefine the small !ar mar*et as it has been understood in India(rue to
its M0ore !ar per !arM positioning- the Indi!a =NG offers all the !ore benefits of the
Indi!a !ombined )ith the ad'antage of =NG( 9ne of the most popular ad'ertisements on
tele'ision !urrentl"- is the one )here the gu" portra"ed as the Vlo'eable liar/- gets so!*ed
e'er"time he lies N but not )hen he spea*s about the Indi!a thus impl"ing- . must be
trueT( <laborating on the !ampaign- the ne) ad )as laun!hed )ith the intention of gi'ing
the Indi!a H+ brand a tou!h of "outhfulness(
TATAE" 5RI$I!G "TRATEGY
%fter the pri!e )ar being triggered off b" G"undai being the first !ompan" to introdu!e
)hat !ame to be *no)n as- pri!ing based on !ustomerIs 'alue per!eptions - all others
follo)ed suit(el!oIs Indi!a !ame in the range of :s +(C6 la*h to :s $(33 la*h )ith 8
models( he pri!e-points in the !ar mar*et )ere repla!ed b" pri!e-bands( he )idth of a
pri!e-band )as a fun!tion of the si4e of the segment being targeted besides the intensit"
of !ompetition( he thumb rule being Ithe higher the intensit"- the )ider the pri!e-band(I
B) CURRENT STRATEGIES F!!"E# B$ MU!
I' 5RI$I!G "TRATEGY 8 $ATERI!G TO ALL "EGME!T"
0aruti !aters to all segment and has a produ!t offering at all pri!e points( It has a !ar
pri!ed at :s(1-3E-###(## )hi!h is the lo)est offer on road( 0aruti gets E#7 business
from repeat bu"ers )ho earlier had o)ned a 0aruti !ar( heir pri!ing strateg" is to
pro'ide an option to e'er" !ustomer loo*ing for up gradation in his !ar( heir sole moti'e
of ha'ing so man" produ!t offering is to be in the !onsideration set of e'er" passenger
!ar !ustomer in India( Gere is ho) e'er" pri!e point is !o'ered(
II' O##ERI!G O!E "TO5 "HO5 TO $U"TOMER" OR $REATI!G
DI##ERE!T RE.E!UE "TREAM"
0aruti has su!!essfull" de'eloped different re'enue streams )ithout ma*ing huge
in'estments in the form of 0DS- N+N- 0aruti Insuran!e and 0aruti Binan!e( hese help
+#
them in ma*ing the !ustomer e,perien!e hassle free and helps building !ustomer
satisfa!tion(
Maruti #i(a(ce/ In a mar*et )here more than 3#7 of !ars are finan!ed- 0aruti has
strategi!all" entered into this and has su!!essfull" !reated a re'enue stream for 0aruti(
his has been found to be a ma&or dri'er in !on'erting a 0aruti !ar sale in !ertain !ases(
Binan!e is one of the ma&or de!ision dri'ers in !ar pur!hase( 0aruti has tied up )ith 3
finan!e !ompanies to form a !onsortium( his !onsortium !omprises =iti!orp 0aruti-
0aruti =ountr")ide- I=I=I Ban*- GDB= Ban*- Fota* 0ahindra- Sundaram Binan!e-
Ban* of >un&ab and IndusInd Ban* 1td(( erst)hile-%sho* 1e"land Binan!e)(
Maruti I(sura(ce / Insuran!e being a ma&or !on!ern of !ar o)ners( 0aruti has brought
all !ar insuran!e needs under one roof( 0aruti has tied up )ith National Insuran!e
=ompan"- Ba&a& %llian4- Ne) India %ssuran!e and :o"al Sundaram to bring this ser'i!e
for its !ustomers( Brom identif"ing the most suitable !ar !o'erage to 'irtuall" hassle-free
!laim assistan!e itIs "our dealer )ho ta*es !are of e'er"thing( 0aruti Insuran!e is a
hassle-free )a" for !ustomers to ha'e their !ars repaired and !laims pro!essed at an"
0aruti dealer )or*shop in India(
True .alue 3 I(itiative to capture used car mar-et
%nother signifi!ant de'elopment is 0U1Is entr" into the used !ar mar*et in +##1-
allo)ing !ustomers to bring their 'ehi!le to a I0aruti rue HalueI outlet and e,!hange it
for a ne) !ar- b" pa"ing the differen!e( he" are offered lo"alt" dis!ounts in return(his
helps them retain the !ustomer( ?ith 0aruti rue Halue !ustomer has a trusted name to
entrust in a highl" unorgani4ed mar*et and )here !heating is rampant and the biggest
!on!ern in biggest dri'er of sale is trust( 0aruti *no)s its strength in Indian mar*et and
has filled this gap of pro'iding trust in Indian used !ar mar*et( 0aruti has !reated a
s"stem )here dealers pi!* up used !ars- re!ondition them- gi'e them a fresh )arrant"-
and sell them again( %ll in'estments for rue Halue are made b" dealers( 0aruti has build
up a strong net)or* of 1E+ sho)rooms a!ross the nation( he used !ar mar*et has a huge
potential in India( he used !ar mar*et in de'eloped mar*ets )as +-$ times as large as the
ne) !ar mar*et(
!0!/ =ar maintenan!e is a time-!onsuming pro!ess- espe!iall" if "ou o)n a fleet(
0aruti/s N+N Bleet 0anagement Solutions for !ompanies- ta*es !are of the %-J of
automobile problems( Ser'i!es in!lude end-to-end ba!*upsAsolutions a!ross the 'ehi!le/s
life: 1easing- 0aintenan!e- =on'enien!e ser'i!es and :emar*eting(
Maruti Drivi(g "c)ool BMD"C/ 0aruti has established this )ith the goal to !apture the
mar*et )here there is inhibition in bu"ing !ars due to inabilit" to dri'e the !ar( his
brings that !ustomer to 0aruti sho)room and 0aruti ends up !reating a !ustomer(
III' RE5O"ITIO!I!G O# MARUTI 5RODU$T"
+1
?hene'er a brand has gro)n old or its sales start dipping 0aruti ma*es some fa!elifts in
the models( 9ther !hanges ha'e been made from time to time based on mar*et responses
or !onsumer feedba!*s or the !ompetitor mo'es( Gere are the !ertain !hanges obser'ed in
different models of 0aruti(
Om(i has been gi'en a ma&or fa!elift in terms of interiors and e,teriors t)o months ba!*(
% ne) 'ariant !alled 9mni =argo- )hi!h has been positioned as a 'ehi!le for transporting
!argo and meant for small traders( It has re!ei'ed a 'er" good response from mar*et( %
'ariant )ith 1>G is re!ei'ing a 'er" good response from !ustomers )ho loo* for lo)
!ost of running(
.ersa pri!es ha'e been slashed and right no) the lo)est 'ariant starts at $($ la!s( he"
de!reased the engine po)er from 16##!! to 1$##!! and modified it again !onsidering
!onsumers per!eption( his )as a result of intensi'e sur'e" done all a!ross the nation
regarding the !onsumer per!eption of Hersa(
Esteem has gone through three fa!elifts( % ne) loo* last "ear has helped boost up the
)aning sales of <steem(
&ale(o )as laun!hed in 1222 at E(+ la!s( In +##+ the" slashed pri!es to 6(8 la!s( In +##$
the" laun!hed a lo)er 'ariant as Baleno 1Ki at C(86 la!s( his )as to redu!e the pri!e
and attra!t !ustomers(
6ago(8R )as per!ei'ed as dull bo," !ar )hen it )as laun!hed( his made it a big
failure on laun!h( hen further modifi!ations in engine to in!rease performan!e and a
fa!elift in the form of sport" loo*ing grills on the roof( No) it/s of the most su!!essful
models in 0aruti stable(
He( has been modified four times till date( he" had !ome up )ith a limited period
'ariant !alled Jen =lassi!( hat )as limited period offer to boost short term sales(
Maruti 211 has so far been fa!elifted t)o times( 9n!e it !ame )ith 0>Bi te!hnolog" and
other time it !ame up )ith !hanges in front grill- head light- rear lights and )ith round
!ur'es all around(
C) MA%R FUTURE STRATEGIES
I' 5HA"I!G OUT HE! I! 011:
he laun!h of S)ift and phasing out Jen is a strategi! mo'e( %lto )as laun!hed *eeping
in mind that it )ill ta*e o'er 0aruti 3## mar*et in future( >erhaps being the flagship
produ!t phasing out of 0aruti 3## fa!ed lots of resistan!e from dealers all o'er( %nother
reason behind not phasing out 0aruti 3## )as the fear of brand shift of !ustomers to
other !ompetitor/s produ!t( S)ift )as laun!hed in 0a"- +##C in the pri!e band starting
from 8 la!s( Before laun!h of S)ift 0aruti management had de!ided that the" )ill phase
++
out Jen sin!e it had alread" !ame up )ith t)o modifi!ations( he ma&or reason behind
this de!ision )as !annibali4ation of ?agon : and S)ift due to o'erlapping of pri!e band(
It is a rational de!ision to *ill a produ!t before it starts fa!ing the de!line stage in produ!t
!"!le( 0aruti is offering :s( $###(## more margins to dealer on the sale of ?agon-: as
!ompared to Jen( his is to let dealer push ?agon : instead of Jen(
II' MARUTI 5LA!" #OR A &IG DIE"EL #ORAY
he ne) !ar manufa!turing !ompan"- !alled 0aruti Su4u*i %utomobiles India 1imited-
)ill be a &oint 'enture bet)een 0aruti Ud"og and Su4u*i 0otor =orporation holding a
E# per !ent and $# per !ent sta*e respe!ti'el"( he :s1-C+8(+ !rore plant )ill ha'e a
!apa!it" to roll out 1 la*h !ars per "ear )ith a !apa!it" to s!ale up to +(C la*h units per
annum( he ne) !ar manufa!turing plant )ill begin !ommer!ial produ!tion b" the end of
+##6(
0aruti )ould set up a diesel engine plant at Gurgaon in line )ith its plan to be!ome a
ma&or pla"er in diesel 'ehi!les in a !ouple of "ears( his has been done in the )a*e of
ma&or !ompetition from ata Indi!a and meets the gro)ing demand of diesel !ars in
India( ?hile the annual gro)th in the diesel segment )as 1$ per !ent in the last three
"ears- it )as 12-+# per !ent in the first quarter (%pril-5une) of the !urrent fis!al( 0aruti
has !urrentl" an insignifi!ant presen!e in diesel 'ehi!le( It )ill manufa!ture ne)
generation =:DI (!ommon rail dire!t in&e!tion) engines in !ollaboration )ith Biat-G0
9pel and engines )ill be of 1+## !!( he plant )ith a !apa!it" to produ!e one la*h diesel
engines )ould be operational in +##6( %t present- >eugeot of Bran!e- supplies diesel
engines for 0arutiIs Jen and mid-si4ed <steem models( his )ill further redu!e the
imported !omponent in 0aruti 'ehi!les- ma*ing them more !ompetiti'e in the Indian
mar*et(
III' MARUTI 5LA!" #OR A !E6 E!GI!E A!D TRA!"MI""IO! 5LA!T
he engine and the transmission plant )ill be o)ned b" Su4u*i >o)ertrain India 1imited
in )hi!h Su4u*i 0otor =orporation )ould hold C1 per !ent sta*e and 0aruti Ud"og
holding the balan!e( he ultimate total plant !apa!it" )ould be three la*h diesel engines(
Go)e'er- the initial produ!tion )ould be 1 la*h diesel engines- +#-### petrol engines and
1(8 la*h transmission assemblies( In'estment in this fa!ilit" )ill be :s(1-E8E(E !rore( he
!ommer!ial produ!tion )ill start b" the end of +##6(
#UTURE $HALLE!GE"
X 0aruti has al)a"s been identified as a traditional !arma*er produ!ing 'alue-for-
mone" !ars and right no) the biggest hurdle 0aruti is fa!ing is to shed this image(
+$
0aruti )ants to !hange it for a more aggressi'e image( 0aruti Baleno has failed due to
one of the ma&or reasons being that !ustomers !ould not identif" 0aruti )ith a !ar as
sophisti!ated as 0aruti Baleno( 0aruti is loo*ing for)ard to bring about a pe&ception
c'ange about the !ompan" and its !ars( 0aruti started the e,er!ise )ith the ne)-loo*
Jen- and Su4u*iIs de!ision to pi!* India as one of the first mar*ets for this radi!all"
different-loo*ing !ar ga'e this endea'or a ne) thrust( 0aruti has also !hanged its logo at
the front grill( It has repla!ed the traditional 0aruti logo on grill Vst"lish V0/ )ith S/( he
ma&or thrust in the fa!elift endea'our is )ith the laun!h of 1($ litre S)ift( It/s a st"le
statement from 0aruti to Indian mar*et(
X he ne,t threat 0aruti fa!es is the g&o(ing competition in compact ca&s( =ompanies
li*e o"ota- Bord- Gonda and Biat are planning to !ome out )ith small segment !ars in
near future(Bord is laun!hing Bo!us and Biesta- G0 is laun!hing %'eo in +##6- =he'rolet
is laun!hing Spar* in +##6- G"undai is laun!hing its ne) !ompa!t !ar in +##6- Gonda is
laun!hing 5a44 in +##6- G0 is has redu!ed pri!es of its =orsa- Biat is !oming up )ith
>anda and ne) Biat >alio- S*oda is laun!hing Babia( %ll this )ill pose a ma&or threat to
0aruti leadership in !ompa!t !ars(
X Ne) emission no&ms li*e Bharat Stage $ )hi!h has !ome into effe!t from %pril +##C
has in!reased !ar pri!es b" :s(+#### and Bharat Stage 8 )hi!h is !oming into for!e in
+##E )ill !ontribute in in!reasing !ar pri!es further( his !ould be of !on!ern to 0aruti
)hi!h is lo) !ost pro'ider of passenger !ars(
X Rise in pet&ol p&ices an) g&o(ing popula&ity of ot'e& su*stitute fuels li*e =NG )ill
be another threat to 0aruti( here is also a threat to Su4u*i from :;D in'estment b"
o"ota and Gonda in G"brid !ars( G"brid !ars !ould run on both petrol and gaseous
fuels(
X here is a threat to 0aruti models ageing( 0aruti models li*e 0aruti 3## )hi!h is in
mar*et for the last t)ent" "ears and others li*e Jen and <steem )hi!h ha'e also entered
the de!line phase are the other threats( 0aruti is planning phasing out Jen in +##E and
there )ere rumors of phasing out 0aruti 3## also( his all ma*es Su4u*i to repla!e these
brands )ith ne) laun!hes ( %s S)ift and ?agon : are repla!ing the Jen mar*et( 0aruti
)ill ha'e to *eep on ma*ing modifi!ations in its present models or its mo)els (ill face
e+tinction
+8
(
"'6'O'T' A!ALY"I" O# THE $OM5A!Y
$ompa(yEs 5ortfolio/
0aruti Ud"og 1imited (0U1)-INDI%/s finest and %sia/s largest automobile industr"
)as established in 1231 b" an a!t of parliament(0U1- the first automobile !ompan"
in the )orld to be honored )ith an IS9 2###:+### !ertifi!ate- is a subsidiar" of
Su4u*i 0otor =orp (holds a C87 equit" sta*e)( he Go'ernment of India remains a
signifi!ant equit" sta*eholder (1#7)(?ith its earl" mo'er ad'antage in Indian mar*etN
0aruti retains a dominant 0ar*et share despite in!reasing !ompetition(
&usi(ess 5ortfolio/
he GroupIs prin!ipal a!ti'it" is to manufa!ture- pur!hase and sale of 0otor Hehi!les
and Spare parts( he other a!ti'ities of the Group !omprises of fa!ilitation of >re-
9)ned =ar Sales- Bleet 0anagement and =ar Binan!ing( he Group also pro'ides
ser'i!es li*e framing of !ustomi4ed !ar poli!ies- e!onomi!al leasing of !ars-
maintenan!e management- registration and insuran!e management- emergen!"
assistan!e and a!!ident management( he produ!t range in!ludes ten basi! models
)ith more than C# 'ariants( he Group has operations in o'er 1## !ities )ith more
than 1C# outlets and also e,ports !ars to other !ountries(
+C
.isio(/
Hisions of an" !ompan" are those 'alues on )hi!h !ompan" )or*s( %s the 0U1 is
started b" Go'ernmental initiati'es it tends to be more !onsumer oriented and hen!e
!ost effe!ti'e- but on the other hand Su4u*i/s parti!ipation ensures not onl" need of
the profit- but of the need of ma,imum profit( he onl" )a" for this Nora/s dilemma
of sele!ting prin!ipals for !ompan"/s )or*ing 'ision -)as to ma,imi4e profit and
redu!ing !ost b" ma,imi4ing output and sales Gen!e 0U1 de!lared its Hision as-
.he 1eader in the Indian %utomobile Industr"- =reating =ustomer Delight1 and
ShareholderIs ?ealth+N e'entuall" be!ome a pride of IndiaT
=ustomer Delight1 is ma*ing sure that performan!e- after sales ser'i!e and !ustomer
support are best and be"ond e,pe!tation( Shareholder/s )ealth+ is the prime !on!ern
for running business smoothl"(0U1 *no)s this and understands .!ustomer is *ingT-
he !an !hange the fortune of an" !ompan"- hen!e goes !ompan"/s brand line:
=9UN 9N USY
Missio(/
0ission is the statement of an organi4ation/s purpose- )hat it )ant to a!!omplish in
the larger en'ironment and its goals )hi!h are spe!ifi!- realisti! and moti'ating(
0issions are des!ribed o'er 'isions and 'isions demand !ertain ob&e!ti'es( he main
ob&e!ti'esA0issions of 0U1 are:
- 0oderni4ation of the Indian %utomobile Industr"(
- De'eloping !ars faster and selling them for less(
- >rodu!tion of fuel-effi!ient 'ehi!les to !onser'e s!ar!e resour!es(
- >rodu!tion of large number of motor 'ehi!les )hi!h )as ne!essar" for e!onomi!
gro)th(
- 0ar*et >enetration- 0ar*et De'elopment Similarl" >rodu!t De'elopment and
Di'ersifi!ation(
- >artner relationship management- Halue !hain- Halue deli'er" net)or* (
"6OT A!ALY"I": =onsists of anal"sis of internal en'ironment (Strength and
)ea*ness) and e,ternal en'ironments
(9pportunit" and hreat)(
"TRE!GTH/ =ontemporar" te!hnolog"( 5apanese 0anagement pra!ti!es (that had
!aptured 5apan o'er US% to the status of top %uto manufa!turing !ountr" in the )orld)
<arl" mo'er ad'antages( :e!ruitment is done in 'er" tedious manner
ensuring talent and best professionals- ?or*ing !ulture- after sale ser'i!es - distribution-
di'ersifi!ation-
Sell dire!tl" to !onsumers
Feep !osts belo) !ompetitors/ !osts
6EA,!E""/ Still depends upon SUJUFI =9>9:%I9N- 5apan Bor te!h( support-
1#7 !omponents are manufa!tured outsideIndia( hough 0U1 has laun!hed lu,ur" !ars
as )ell it/s still !onsidered as poor man/s brand( Di'ersifi!ation is not
+6
supported )ith all India presen!e of 0anufa!turing Units( Bureau!ra!"- e!hnologi!al
disad'antages- De!ades of isolation- inertia and subser'ien!e to the )hims of go'ernment
bureau!rats ha'e made 0U1 una!!ustomed to international standards or *een
!ompetitors
No strong relationships )ith !omputer retailers
O55URTU!ITY/ first !ompan" to roll out suitabl" designed !ars before +##3 as per
Go't(/s >roposal of ne) ethanol (rene)able)
mi,ed fuel( 9ther !ompanies/ la!*s e!onom" of s!ale- so mar*et is still open( Importing
ne) te!hnolog" is !ontrolled b" Go't( so there is plent" of untapped mar*et and )ith
in!rease in In!ome s!ale- Demand is rising(
=onsumer desire for one-stop shopping
=onsumers *no) )hat the" )ant to bu"
Internet !ould be a po)erful mar*eting tool
THREAT/ Numbers of ne) e!hnolog" dri'en pla"ers and manufa!tures are in mar*et(
Go't (redu!ing support and !utting do)n the Gas suppl" quota( (9I- Ne) Delhi- 11th
&une- #E)(
=ompetitors ha'e stronger brand names
=ompetitors ha'e strong relationships )ith !omputer retailers(
$HA5TER/80
+E
:<S<%:=G 0<G9D919GL
:<S<%:=G 9B5<=IH<S
o stud" the 'arious G: poli!ies of 0aruti Ud"og 1imited
o stud" re!ruitment gi'en to emplo"ees )hether internal or e,ternal(
o stud" ho) sele!tion is being is done in maruti Ud"og limited(
o enhan!e m" *no)ledge about training and de'elopment(
o stud" ho) pla!ement and indu!tion ta*e pla!e in maruti Ud"og limited(
o stud" )hether the emplo"ees are being satisfied )ith the plans- poli!ies
and pro!edures in maruti ud"og limited(
o stud" ho) orientation ta*es pla!e in maruti ud"og limited(
o stud" )hi!h t"pes of inter'ie) are !ondu!ted in maruti ud"og limited(
:<S<%:=G D<SIGN
:esear!h design is des!ripti'e as the information is !olle!ted through the method of
sur'e"s and questionnaires and the ob&e!ti'e is to des!ribe mar*et !hara!teristi!s and the
!hara!teristi!s are prior formulation of h"pothesis( It has planned stru!tured design(
DATA "OUR$E"
he information !olle!ted about 0aruti Ud"og limited is a !ombination of both primar"
and se!ondar" data( ?e ha'e !olle!ted the information b" !ondu!ting the inter'ie)s of
!ompan" emplo"ees- through questionnaire sur'e"- and the information is also gathered
from libraries boo*s- ne)spapers- and net(
?UE"TIO!!AIRE DE"IG!I #ORMULATIO!
@uestions being used in questionnaires are both open ended and !lose ended questions(
"AM5LE DE"IG!
+3
"ample eleme(tI "ample u(it
9ur sample !onsists of G: department emplo"ees of 0aruti Ud"og 1imited(
"ample EJte(t/ - 0U1- Gurgaon(
Time #rame/ 8 +# Da"s
"ampli(g Tec)(iKue/8non-probabilit"-=on'enien!e and &udgmental
sampling(
"ample "iLe/ 8 1# emplo"ees of 0U1( Gurgaon(
LIMITATIO!" O# THE RE"EAR$H
1ess %'ailabilit" of time limit(
Some of the emplo"ees )ere un)illing to fill the questionnaires(
Information )as !onfidential(
$HA5TER/8;
+2
$o(ceptual Discussio(
RE$RUITME!T
:e!ruitment is an important part of an organi4ation/s human resour!e planning and their
!ompetiti'e strength( =ompetent human resour!es at the right positions in the
organisation are a 'ital resour!e and !an be a !ore !ompeten!" or a strategi! ad'antage
for it(
he ob&e!ti'e of the re!ruitment pro!ess is to obtain the number and qualit" of emplo"ees
that !an be sele!ted in order to help the organisation to a!hie'e its goals and ob&e!ti'es(
?ith the same ob&e!ti'e- re!ruitment helps to !reate a pool of prospe!ti'e emplo"ees for
the organisation so that the management !an sele!t the right !andidate for the right &ob
from this pool(
:e!ruitment a!ts as a lin* bet)een the emplo"ers and the &ob see*ers and ensures the
pla!ement of right !andidate at the right pla!e at the right time( Using and follo)ing the
right re!ruitment pro!esses !an fa!ilitate the sele!tion of the best !andidates for the
organisation(
In this is !ompetiti'e global )orld and in!reasing fle,ibilit" in the labour mar*et-
re!ruitment is be!oming more and more important in e'er" business( herefore-
re!ruitment ser'es as the first step in fulfilling the needs of organisations for a
!ompetiti'e- moti'ated and fle,ible human resour!e that !an help a!hie'e its ob&e!ti'e
I!TER!AL "OUR$E" O# RE$RUITME!T
4' TRA!"#ER"
he emplo"ees are transferred from one department to another a!!ording to their
effi!ien!" and e,perien!e(
0' 5ROMOTIO!"
he emplo"ees are promoted from one department to another )ith more benefits and
greater responsibilit" based on effi!ien!" and e,perien!e(
;' 9thers are Upgradi(g a(d Demotio( of present emplo"ees a!!ording to their
performan!e(
<' RETIRED A!D RETRE!$HED EM5LOYEE" ma" also be re!ruited on!e again
in !ase of shortage of qualified personnel or in!rease in load of )or*( :e!ruitment su!h
people sa'e time and !osts of the organi4ations as the people are alread" a)are of the
organi4ational !ulture and the poli!ies and pro!edures(
=' he dependents and relati'es of de!eased emplo"ees and disabled emplo"ees are also
done b" man" !ompanies so that the members of the famil" do not be!ome dependent on
the mer!" of others(

E7TER!AL "OUR$E" O# RE$RUITME!T
4' 5RE"" AD.ERTI"EME!T"
$#
%d'ertisements of the 'a!an!" in ne)spapers and &ournals are a )idel" used sour!e of
re!ruitment( he main ad'antage of this method is that it has a )ide rea!h(
0' EDU$ATIO!AL I!"TITUTE"
Harious management institutes- engineering !olleges- medi!al =olleges et!( are a good
sour!e of re!ruiting )ell qualified e,e!uti'es- engineers- medi!al staff et!( he" pro'ide
fa!ilities for !ampus inter'ie)s and pla!ements( his sour!e is *no)n as =ampus
:e!ruitment(
;' 5LA$EME!T AGE!$IE"
Se'eral pri'ate !onsultan!" firms perform re!ruitment fun!tions on behalf of !lient
!ompanies b" !harging a fee( hese agen!ies are parti!ularl" suitable for re!ruitment of
e,e!uti'es and spe!ialists( It is also *no)n as :>9 (:e!ruitment >ro!ess 9utsour!ing)
<' EM5LOYME!T E7$HA!GE"
Go'ernment establishes publi! emplo"ment e,!hanges throughout the !ountr"( hese
e,!hanges pro'ide &ob information to &ob see*ers and help emplo"ers in identif"ing
suitable !andidates(
=' LA&OUR $O!TRA$TOR"
0anual )or*ers !an be re!ruited through !ontra!tors )ho maintain !lose !onta!ts
)ith the sour!es of su!h )or*ers( his sour!e is used to re!ruit labour for
!onstru!tion &obs(
9' U!"OLI$ITED A55LI$A!T"
0an" &ob see*ers 'isit the offi!e of )ell-*no)n !ompanies on their o)n( Su!h !allers
are !onsidered nuisan!e to the dail" )or* routine of the enterprise( But !an help in
!reating the talent pool or the database of the probable !andidates for the
organi4ation(
:' EM5LO YEE RE#ERRAL"I RE$OMME!DATIO!"
0an" organisations ha'e stru!tured s"stem )here the !urrent emplo"ees of the
organisation !an refer their friends and relati'es for some position in their
organisation( %lso- the offi!e bearers of trade unions are often a)are of the suitabilit"
of !andidates( 0anagement !an inquire these leaders for suitable &obs( In some
organi4ations these are formal agreements to gi'e priorit" in re!ruitment to the
!andidates re!ommended b" the trade union(
2' RE$RUITME!T AT #A$TORY GATE
$1
Uns*illed )or*ers ma" be re!ruited at the fa!tor" gate these ma" be emplo"ed )hene'er
a permanent )or*er is absent( 0ore effi!ient among these ma" be re!ruited to fill
permanent 'a!an!ies(

SELECTION
It is the pro!ess of sear!hing the potential !andidate( It is negati'e in nature in the Indian
!onte,t( But it is positi'e in the US !onte,t(
Steps in Sele!tion >ro!ess of 0aruti ud"og ltd
Sele!tion pro!ess !onsists of a series of steps- at ea!h stage- fa!ts ma" !ome light )hi!h
ma" lead to the re&e!tion of the appli!ant( It is a series of su!!essi'e hurdles or barriers
)hi!h an appli!ant must !ross( hese hurdles or s!reens are designed to
eliminate an unqualified !andidate at an" point in the sele!tion pro!ess here is no
standards sele!tion pro!edure to be used in all organi4ations or for all &obs(
he !omple,it" of sele!tion pro!edures in!reases )ith the le'el and responsibilit"
of the position to be filled( (
4M 5relimi(ary I(tervie* Bscree(i(g applicatio(sC
Initial s!reening is done to )eed out totall" undesirableAunqualified !andidates at
the outset( It is essentiall" a sorting pro!ess in )hi!h prospe!ti'e !andidates are
gi'en the ne!essar" information about the nature of the &ob and the
organi4ation- at the same time- the ne!essar" information is also eli!ited from the
!andidates about their edu!ation- s*ills- e,perien!e- salar" e,pe!ted and the
li*e( It helps to determine )hether it is )orth)hile for a !andidate to fill up the
appli!ation form(
0M Applicatio( #orm
%ppli!ation form is a traditional and )idel" used de'i!e for !olle!ting information
from !andidates( It should pro'ide all the information rele'ant to sele!tion- )here
referen!e for !aste- religion- birth pla!e- ma" be a'oided as it ma" be regarded an
e'iden!e of dis!rimination(
;M"electio( Test
>s"!hologi!al tests are being in!reasingl" used in emplo"ee sele!tion- )here a test
ma" in'ol'e some aspe!t of an indi'idual/s attitudes- beha'ior and performan!e(
ests are useful )hen the number of appli!ants is large- as at best it
re'eals that the !andidates )ho s!ored abo'e the predetermined !utoff points are
li*el" to be more su!!essful than those s!oring belo) the !utoff point(
<M Employme(t I(tervie*
Inter'ie) is an essential element of sele!tion and no sele!tion pro!edure is !omplete
)ithout one or more personal inter'ie)s- )here the information !olle!ted
through appli!ation letter or appli!ation forms and tests !an be !ross-!he!*ed in the
inter'ie)- )here !andidates demonstrates their !apabilities and strength in rele'ant
to their a!ademi! !redentials( sele!tion in inter'ie) ser'es three purposes:
$+
a) obtaining information about the ba!*ground- edu!ation- training- )or* histor" and
interests of !andidate(
b) gi'ing information to !andidates about the !ompan"- the spe!ifi! &ob and human
resour!e poli!iesN and
!) establishing a friendl" relationship bet)een the emplo"er and the !andidate so as
to moti'ate the su!!essful appli!ant to )or* for the organi4ation(
Go)e'er- in pra!ti!e inter'ie) be!omes a one-sided affair ser'ing onl" the first
purpose(
=M Medical EJami(atio(
%ppli!ants )ho ha'e !rossed the abo'e stages are sent for a ph"si!al e,amination
either to the !ompan"/s ph"si!ian or to a medi!al offi!er appro'ed for the
purpose( Su!h e,amination ser'es the follo)ing purposes:-
a) It determines )hether the !andidate is ph"si!all" fit to perform the &ob-
)here those )ho are ph"si!all" unfit are re&e!ted(
b) It re'eals e,isting disabilities and pro'ides a re!ord of the emplo"ee/s health at
the time of sele!tion( his re!ord )ill help in settling !ompan"/s liabilit"
under the )or*men !ompensation %!t for !laim for an" in&ur"(
!) It pre'ents the emplo"ment of people suffering from !ontagious diseases(
d) It identifies !andidates )ho are other)ise suitable but require spe!ifi! &obs due to
ph"si!al handi!aps and allergies(
6M Refere(ce $)ec-s
he appli!ant is as*ed to mention in his appli!ation form- the names and addresses of
t)o or more persons )ho *no) him )ell( hese ma" be his pre'ious emplo"ers-
heads of edu!ation institutions or publi! figures( hese people are requested to
pro'ide their fran* opinion about the !andidate )ithout in!urring an" liabilit"( In
go'ernment and publi! se!tor organi4ations- !andidates are generall" required to
route their appli!ations through their present emplo"ers- if an"( he opinion of
referees !an be useful in &udging the future beha'ior and performan!e of !andidate-
but is not ad'isable to rel" e,!lusi'el" on the referees be!ause the" are
generall" biased in fa'or of the !andidate(
(a)0ost !andidates are emplo"ed at the time of their appli!ation- and do not )ish
their emplo"ers to *no) the" are loo*ing else)here(
(b) Be!ause of a prospe!ti'e emplo"er )ould be brea*ing a !onfiden!e if he
or she as*ed for a referen!e before an offer of a &ob had been made and a!!epted(
$$
(!) B" the time an offer has been a!!epted- sele!tion is o'er and the referen!e is too
late to affe!t it(
(d) %n offer ma" be made Vsub&e!t to satisfa!tor" referen!es/- but as most
referen!es are re!ei'ed after the !andidate has started )or*- the" !an onl" be used to
)arn managers of possible faults in the !andidate )hi!h in serious !ases ma"
e'entuall" lead to )arnings follo)ed b" dismissal(
(e) <mplo"ers gi'ing referen!es are usuall" e,tremel" !autiousN man" referen!es
merel" state the &ob title- the date of emplo"ment- and reasons for lea'ing(
(f) :eferen!es are o!!asionall" biased- gi'ing a good referen!e to hasten an
emplo"ee/s departure or a poor one be!ause of a grudge(
herefore- the best referen!es are obtained in person- )here there is a !han!e to see
)hether non'erbal beha'ior mat!hes )hat is said( If su!h a meeting !annot be
arranged- telephoning is the ne,t best alternati'e(
:M #i(al Approval
In most of the organi4ations- sele!tion pro!ess is !arried out b" the human resour!e
department- )here the de!isions of the department are re!ommendator"( he
!andidates shortlisted b" the department are finall" appro'ed b" the e,e!uti'e of
!on!erned departments or units(
2M Employme(t'
<mplo"ment is offered in the form of an appointment letter mentioning
the post- the ran*- the salar" grade- the date b" )hi!h the !andidate should &oin and
other terms and !onditions in brief( In some organi4ations- a !ontra!t of ser'i!e is
signed b" both the !andidate and the representati'e of the organi4ation( It is at this
point )here a sele!ted appli!ant is handled )ith a letter of offer for a &ob:
a) he )age or salar" offered must not onl" be appropriate to the &ob and attra!ti'e to
the !andidate but !onsistent )ith the earnings of present emplo"ees(
b) he &ob must be named and an" spe!ial !onditions stated- for instan!e-
the first "ear "ou )ill be under training at the head offi!e- then "ou )ill be transferred
to up-!ountr" bran!hes(
!) he !andidate must *no) the essential !onditions of emplo"ment- su!h as hours of
)or*- holida"s- bonuses and fringe benefits(
d) %n" pro'isos must be !learl" stated- for e,ample- "our emplo"ment )ill be sub&e!t
to satisfa!tor" referen!es and medi!al e,aminations( %ppointment is generall" made
on probation of one or t)o "ears- )here upon satisfa!tor" performan!e during this
period- the !andidate is finall" !onfirmed in the &ob on the terms emplo"ed )ith-
)hether permanent or !ontra!tual basis(
$8
>M I(ductio((
he pro!ess of re!ei'ing emplo"ees )hen the" begin )or*- introdu!ing
them to the !ompan" and to their !olleagues- and informing them of the a!ti'ities-
!ustoms and traditions of the !ompan" is !alled indu!tion( %t this &un!ture
'arious indu!tion
!ourses are done to ne) re!ruit in order to a!!limati4e them )ith the ne) )or*ing
en'ironment(
41M #ollo* 3 up BEvaluatio(C
%ll sele!tion should be 'alidated b" follo)-up- it a stage )here emplo"ee is
as*ed ho) he or she feels about progress to date and the )or*er/s immediate
super'isor is as*ed for !omments- )hi!h are !ompared )ith the notes ta*en at
the sele!tion inter'ie)( If a follo)-up is unfa'ourable it is probable that sele!tion
has been a faultN the )hole pro!ess from &ob spe!ifi!ation to inter'ie) is then
re'ie)ed to see if a better !hoi!e !an be made ne,t time(
Trai(i(g
0aruti arranges the training at se'eral inter'als( he training is mandator" for all the
emplo"ees( he training s!hedule of all emplo"ees is maintained b" the G: manager(
<D>
In the <D> Department follo)ing are managed:
>ost Sale >ro!ess is managed(
Sales %nal"sis is done(
Ba!*up is ta*en time to time(
IM5ORTA!$E O# TRAI!I!G
9ptimum Utili4ation of Guman :esour!es-raining and De'elopment helps in
optimi4ing the utili4ation of human resour!e that further helps the emplo"ee to
a!hie'e the organi4ational goals as )ell as their indi'idual goals(
Z De'elopment of Guman :esour!es-raining and De'elopment helps to pro'ide an
opportunit" and broad stru!ture for the de'elopment of human resour!es/ te!hni!al
and beha'ioral s*ills in an organi4ation( It also helps the emplo"ees in attaining
personal gro)th(
Z De'elopment of s*ills of emplo"ees-raining and De'elopment helps in in!reasing
the &ob *no)ledge and s*ills of emplo"ees at ea!h le'el( It helps to e,pand the
hori4ons of human intelle!t and an o'erall personalit" of the emplo"ees(
$C
Z >rodu!ti'it"-raining and De'elopment helps in in!reasing the produ!ti'it" of the
emplo"ees that helps the organi4ation further to a!hie'e its long-term goal(
Z eam spirit-raining and De'elopment helps in in!ul!ating the sense of team )or*-
team spirit- and inter-team !ollaborations( It helps in in!ul!ating the 4eal to learn
)ithin the emplo"ees(
Z 9rgani4ation =ulture -raining and De'elopment helps to de'elop and impro'e the
organi4ational health !ulture and effe!ti'eness( It helps in !reating the learning
!ulture )ithin the organi4ation(
Z 9rgani4ation =limate-raining and De'elopment helps building the positi'e
per!eption and feeling about the organi4ation( he emplo"ees get these feelings from
leaders- subordinates- and peers(
Z @ualit" -raining and De'elopment helps in impro'ing upon the qualit" of )or*
and )or*-life(
Z Gealth" )or*-en'ironment-raining and De'elopment helps in !reating the health"
)or*ing en'ironment( It helps to build good emplo"ee- relationship so that indi'idual
goals aligns )ith organi4ational goal(
(Z Gealth and Safet"-raining and De'elopment helps in impro'ing the health and
safet" of the organi4ation thus pre'enting obsoles!en!e(
Z 0orale-raining and De'elopment helps in impro'ing the morale of the )or* for!e(
Z >rofitabilit"-raining and De'elopment leads to impro'ed profitabilit" and more
positi'e attitudes to)ards profit orientation
Z raining and De'elopment aids in organi4ational de'elopment i(e( 9rgani4ation
gets more effe!ti'e de!ision ma*ing and problem sol'ing( It helps in understanding
and !arr"ing out organi4ational poli!ies(
Z raining and De'elopment helps in de'eloping leadership s*ills- moti'ation- lo"alt"-
better attitudes- and other aspe!ts that su!!essful )or*ers and managers usuall" displa"(
Trai(i(g A(d Developme(t
Guman :esour!e 0anagement (G:0)- a relati'el" ne) term- that emerged during the
12$#s( 0an" people used to refer it before b" its traditional titles- su!h as >ersonnel
%dministration or >ersonnel 0anagement( But no)- the trend is !hanging( It is no)
termed as Guman :esour!e 0anagement (G:0)( Guman :esour!e 0anagement is a
management fun!tion that helps an organi4ation sele!t- re!ruit- train and de'elops(
$6
HUMA! RE"OUR$E MA!AGEME!T
Guman :esour!e 0anagement is defined as the people )ho staff and manage
organi4ation( It !omprises of the fun!tions and prin!iples that are applied to retaining-
training- de'eloping- and !ompensating the emplo"ees in organi4ation( It is also
appli!able to non-business organi4ations- su!h as edu!ation- health!are- et! Guman
:esour!e 0anagement is defined as the set of a!ti'ities- programs- and fun!tions that are
designed to ma,imi4e both organi4ational as )ell as emplo"ee effe!ti'eness[[[[[
[[[[[[[[
S!ope of G:0 )ithout a doubt is 'ast( %ll the a!ti'ities of emplo"ee- from the time of
his entr" into an organi4ation until he lea'es- !ome under the hori4on of G:0(
he di'isions in!luded in G:0 are :e!ruitment- >a"roll- >erforman!e 0anagement-
raining and De'elopment- :etention- Industrial :elation- et!( 9ut of all these di'isions-
one su!h important di'ision is training and de'elopment(
TRAI!I!G A!D DE.ELO5ME!T is a subs"stem of an organi4ation( It ensures that
randomness is redu!ed and learning or beha'ioral !hange ta*es pla!e in stru!tured
format(
TRADITIO!AL A!D MODER! A55ROA$H O# TRAI!I!G A!D
DE.LO5ME!T
Traditio(al Approac) Q 0ost of the organi4ations before ne'er used to belie'e in
training( he" )ere holding the traditional 'ie) that managers are born and not made(
here )ere also some 'ie)s that training is a 'er" !ostl" affair and not )orth(
9rgani4ations used to belie'e more in e,e!uti'e pin!hing( But no) the s!enario seems to
be !hanging(
he moder( approac) of training and de'elopment is that Indian 9rgani4ations ha'e
reali4ed the importan!e of !orporate training( raining is no) !onsidered as more of
retention tool than a !ost( he training s"stem in Indian Industr" has been !hanged to
!reate a smarter )or*for!e and "ield the best results
TRAI!I!G A!D DE.ELO5ME!T O&E$TI.E"
he prin!ipal ob&e!ti'e of training and de'elopment di'ision is to ma*e sure the
a'ailabilit" of a s*illed and )illing )or*for!e to an organi4ation( In addition to that- there
are four other ob&e!ti'es: Indi'idual- 9rgani4ational- Bun!tional- and So!ietal(
I(dividual O+Nectives Q help emplo"ees in a!hie'ing their personal goals- )hi!h in turn-
enhan!es the indi'idual !ontribution to an organi4ation(
Orga(iLatio(al O+Nectives Q assist the organi4ation )ith its primar" ob&e!ti'e b"
bringing indi'idual effe!ti'eness(
$E
#u(ctio(al O+Nectives - maintain the department/s !ontribution at a le'el suitable to the
organi4ation/s needs(
"ocietal O+Nectives Q ensure that an organi4ation is ethi!all" and so!iall" responsible to
the needs and !hallenges of the so!iet"(
$3
=G%><::-8
$omparisio(s 8 Data a(alysis a(d i(terpretatio(
?4 ?hat *ind of :e!ruitment sour!e does =ompan" adopts\
A:
I!TER5RETATIO!/
0ost of the times =ompan" gi'es preferen!e to .$ampus I(tervie*sT(
$2
?0 Is =ompan" ma,imum time going for outsour!ing\
A:
"OUTSOURCING"
4
2
4
0
1
2
3
4
5
Outsourcing
Units
Yes 4
No 2
Don't Kno 4
I!TER5RETATIO!/
.YesT =ompan" is going for outsour!ing(
8#
?; Does 0aruti Su4u*i pa" for an" inter'ie) e,penses\
A/
I!TER5RETATIO!/
here is a parallel response bet)een .YesT and .Do(Et ,(o*
81
?< Does =ompan" !ondu!t .<KI IN<:HI<?T\
A:
I!TER5RETATIO!:
]Les- =ompan" !ondu!t .EJit I(tervie*T(
?= ?hat eligibilit" !riterion is gi'en preferen!e b" 0U1 for the sele!tion of managers\
0%N%G<:S:
8+
0
0!5
1
1!5
2
2!5
3
R"TINGS
C"#$%"
%&Tec'#Di()o*+
%&Co*#$%"
Di()o*+,$%"
C"#Co! Secret+r-
$%"#$+teri+) $gt
ELIGI&ILITY RATI!G"
=%P0B% +
B-e!hPDiploma $
B-=omP0B% 1
DiplomaA0B% 1
=%P=o( Se!retar" 1
0B%P0aterial 0gt 1
I!TER5RETATIO!:
0ost preferen!e is gi'en to .&8Tec)ODiplomaT(

?9: Is it ne!essar" to ha'e )or* e,perien!e from a 0anufa!turing =ompan" for appl"ing
to 0U1\
A:
8$
I!TER5RETATIO!:
PYesQ it is ne!essar" to ha'e )or* e,perien!e from a manufa!turing !ompan" for
appl"ing to 0U1(
?:: ?hi!h t"pe of test is !ondu!ted in 0U1\
88
A:
0
1
2
3
4
5
.
/
0
"c'ie1e*ent
2erson+)it-
Interest
Inte))igence
"(titu3e
Ot'ers

%!hie'ement $
>ersonalit" E
Interest +
Intelligen!e 3
%ptitude 6
9thers C
I!TER5RETATIO!/
]0ost of the times .I(tellige(ce TestT is !ondu!ted in 0U1(
?2: ?hat t"pe of !ulture does 0U1 follo)s\
A:
8C
I!TER5RETATIO!:
]0U1 follo)s .#ormalT !ulture(
?>: Go) man" months A da"s of initial training is gi'en to:-
A: a)?9:F<:S:

86
I!TER5RETATIO!:
0a,imum C months training and minimum 1 month training is gi'en to the )or*ers(

b) 0%N%G<:S:

8E
I!TER5RETATIO!:
0a,imum C months training and minimum 1 month training is gi'en to the )or*ers(
?41: Is !ompan" going for 5ob :otation and 5ob <nri!hment\
A:

83
"4O% ROT"TION,4O%
5NRIC6$5NT"
7
1
0
2
4
.
0
10
R
+
t
i
n
g
s
Yes 7
No 1
I!TER5RETATIO!:
.YesT !ompan" is going for 5ob :otation and 5ob <nri!hment(
82
?44: Does training help in 0orale Boosting and in!rease in effi!ien!" of the emplo"ees\
A:

"$OTI8"TION 2O9ICY"
7
1
0
2
4
.
0
10
R
+
t
i
n
g
s
Yes 7
No 1
I!TER5RETATIO!:
.YesT training help in 0orale boosting and in!rease in effi!ien!" of the emplo"ees(
?40: ?hi!h methods are adopted for 9n-the-&ob and 9ff-the-&ob training\
A:
C#
%pprenti!eship 8
Demonstration 1#
Hestibul 1#
=oa!hing 8
1e!tures 6
S"ndi!ate C
:ole->la" 2
=ase Stud" 2
I!TER5RETATIO!:
]he most !ommon methods of on-the-&ob and off-the-&ob training
are:-.Demo(stratio(T and ..esti+ul Trai(i(gT(
?4;: ?hat t"pe of organi4ational stru!ture does !ompan" follo)s\
A:
C1

0
1
2
3
4
5
.
/
0
7
9ine
$+tri:
Di1ision+)
;ree ;or*
9ine < St+==
;unction+)
2ro>ect
"))
I!TER5RETATIO!:
he !ompan" follo)s .Divisio(alT t"pe of organi4ational stru!ture(
?4<: ?hat t"pe of !ommuni!ation !hannel does it follo)s\
A:
1ine +
0atri, 6
Di'isional 2
Bree Borm E
1ine ; Staff E
Bun!tional 8
>ro&e!t 1
%ll 1
C+

0
1
2
3
4
5
.
/
6ori?ont+)
U(+r3
8ertic+)
Don+r3
"))
Gori4ontal E
Up)ard +
Herti!al 8
Do)n)ard 1
%ll +
I!TER5RETATIO!:
he !ompan" follo)s .HoriLo(talT t"pe of !ommuni!ation !hannel(
C$
?4=: ?hat t"pe of in!enti'es and allo)an!es does !ompan" follo)s\
A:

a) BIN%N=I%1:-

";IN"NCI"9 INC5NTI85S"
.
4
2
4
.
0
1
2
3
4
5
.
/
Incenti1es
R
+
t
i
n
g
s
2ro3ucti1it-
)in@e3
2ro=it
Incenti1es
Stoc@ O(inion
2er=or*+nce
%+se3
Retire*ent
%ene=its
I!TER5RETATIO!:
he !ompan" offers mostl":- .5roductivity Li(-edT and .Retireme(t &e(efitsT to the
emplo"ees as in!enti'es and allo)an!es(

C8
b) N9N-BIN%N=I%1:-

"NONA;IN"NCI"9 INC5NTI85S"
3
7
55
7
0
2
4
0
2
4
.
0
10
Incenti1es
R
+
t
i
n
g
s
St+tus
Soci+) or@
i*(ort+nce
Res(onsiBi)it
-
2+rtici(+tion
4oB Securit-
Te+* S(irit
2ro*otion
In=or*+)
or@ grou(s
I!TER5RETATIO!:
he !ompan" mostl" pro'ides: -."ocial 6or- Importa(ceT and .o+ "ecurityT to the
emplo"ees as in!enti'es and allo)an!es(
CC
?49: Does 0U1 adopt >arti!ipati'e 0anagement St"le\
A:

I!TER5RETATIO!:
.YesT 0U1 adopts >arti!ipati'e 0anagement St"le(
C6
?4:: .9ur G: team 'ie)s an emplo"ee as an Vinternal !ustomer/ and stri'es to deli'er
ma,imum satisfa!tion to him through transparent sensiti'e and inno'ati'e G: pra!ti!eT-
are "ou satisfied )ith this statement\
A:

I!TER5RETATIO!:-
0ost of the emplo"ees of the !ompan" are ."atisfiedT )ith this statement(
CE
?42: %re "ou agree or disagree )ith the follo)ing:-
.0U1 introdu!ed a $6# degree Beedba!* S"stem starting )ith its Senior 1eadershipT(
A:
B<<DB%=F SLS<0

%G:<<D 3
DIS%G:<<D +
0
1
2
3
4
5
.
/
0
"GR55D
DIS"GR55D
I!TER5RETATIO!:
0ost of the emplo"ees are ."atisfiedT )ith this statement(
C3
$HA5TER8=
$O!$LU"IO!
?hile preparing this pro&e!t report )e learnt man" !on!epts of .HUMA!
RE"OUR$E MA!AGEME!TT li*e-
:e!ruitment-Sele!tion-raining-0oti'ation et!(
?e ha'e done this pro&e!t )ith referen!e to MARUTI UDYOG LIMITED
and )e find that man" fa!ts )hile )or*ing on this pro&e!t )hi!h has added a
'aluable e,perien!e in m" life(
Some of the 'aluable fa!ts and e,perien!es are as follo)s:-
Bor :e!ruitment sour!es most of the times !ompan" gi'e preferen!e
to .$AM5U" I!TER.IE6"T(
0U1 is also going for .OUT"OUR$I!GT(
=o( also pa"s for .I!TER.IE6 E75E!"E"T to the !andidates(
=o( also !ondu!t .E7IT I!TER.IE6"T at the time )hen an"
emplo"ee is lea'ing the organi4ation(In this he is free to sa" an"thing
)hat heAshe feels li*e about the organi4ation and its members(
0U1 adopts the eligibilit" !riteria of 6 months for )or*ers and B-
e!hPDiploma for the managers(
It is ne!essar" to ha'e )or* e,perien!e from a 0anufa!turing Birm
for appl"ing to 0U1(
0ost of the times !o( go for .I!TELLIGE!$E TE"TT(
0U1 follo)s .#ORMALT !ulture in the organi4ation(
Initial training gi'en to )or*ers is of appro,( +-$ months and for
managers 1 month(
=o( is also going for 5ob-:otation and 5ob- <nri!hment(
raining also helps in 0orale-Boosting and in!rease in effi!ien!" of
emplo"ees(
he most !ommon methods of 9n-the-&ob and 9ff-the-&ob training
are-.DEMO!"TRATIO!T and ..E"TI&UL TRAI!I!GT(
=o( follo)s .DI.I"IO!ALT t"pe of organi4ational stru!ture(
It follo)s .HORIHO!TALT t"pe of !ommuni!ation !hannel(
In Binan!ial In!enti'es !o( offers-.5RODU$TI.ITY LI!,EDT and
.RETIREME!T &E!E#IT"T(
In Non-Binan!ial In!enti'es !o( offers ."O$IAL 6OR,
IM5ORTA!$ET and .O& "E$URITYT(
0U1 adopts .5ARTI$I5ATI.E MA!AGEME!T "TYLET(
C2
0ost of the emplo"ees are satisfied )ith the the .;91 degree #eed+ac- "ystemT(
$HA5TER89
RE$OME!DATIO!
?e had done our resear!h )ith full enthusiasm and had learned man" things( his
resear!h helps us to *no) about 'arious poli!ies )hi!h are used b" the 0%:UI
UDL9G =90>%NL to in!rease their sales performan!e( It is good to get the *no)ledge
about it(
But through our resear!h )e had !on!luded that the !ompan" is gi'ing onl" 1-C months
training to the emplo"ers before sele!ting them for the &ob( But )e thin* that the should
gi'e atleast 6 months training to the emplo"ees so that the" easil" !oop up )ith their
&obs(
he !ompan" follo)s the e,it inter'ie)s before the emplo"ee lea'es the &obN it is the
better )a" to impro'e the 'arious problems o!!urring in the !ompan"( But the !ompan"
should !ondu!t the inter'ie)s )here the emplo"ers !an dis!uss their problems and the
problem of lea'ing the &ob )ill not o!!ur( So time to time inter'ie)s )ith emplo"ees is
also a ne!essit"(
he !ompan" should gi'e freedom to emplo"ees to form the informal groups- it !an help
the !ompan" to *no) about the thin*ing of the emplo"ees easil" through rumors(
he !ompan" should gi'e promotion to emplo"ees- it !an help in in!reasing their morale(
6#
!IMITATINS

1<SS %H%I1%BI1IL 9B I0< 1I0I(
S90< 9B G< <0>19L<<S ?<:< UN?I11ING 9 BI11 G<
@U<SI9NN%I:<S(
INB9:0%I9N ?%S =9NBID<NI%1.
$HA5TER8:
A!!E7URE
MARUTI UDYOG LIMITED
!AME/
ADDRE""I5H' !O'/
"E7/ Bemale 0ale
O& DE"$RI5TIO!/
DE5ARTME!T/

R?UE"TIO!"S
61
@: ?hat *ind of re!ruitment sour!e does !ompan" adopts\
]: a) IN<:N%1:- b) <K<:N%1:-
1) ransfer 1) =ampus Inter'ie)s

+) >romotion
+) 1ateral appli!ants ($"ears
$) Demotion e,perien!e)

$) Good a!ademi! tra!*\(min(
6#7)
8) %d'ertisement
C) 1abour unions
6) Deputation

@: Is !ompan" going for outsour!ing\
]: a) Les b) No !) Don/t *no)
@: Does 0aruti Su4u*i pa" for an" inter'ie) e,penses\
]: a) Les b) No !) Don/t *no)
@: Does !ompan" !ondu!ts <KI IN<:HI<?\
]: a) Les b) No !) Don/t *no)
@: ?hat eligibilit" !riteria does 0U1 adopt for the follo)ing: -
]: a) ?9:F<:S-
b) 0%N%G<:S-
6+
@: Is it ne!essar" to ha'e )or* e,perien!e from a manufa!turing !ompan"
Bor appl"ing to 0U1\
]: a) Les b) No !) Don/t *no)
@: ?hi!h t"pe of test is !ondu!ted in 0U1\
]: a) %!hie'ement est b) Intelligent est
!) >ersonalit" est d) %ptitude est
e) Interest est f) 9thers
@: ?hat t"pe of !ulture does !ompan" follo)s\
]: a) Bormal b) Informal !) Both
@: Go) man" da"s of initial training is gi'en to:-
]: a) ?9:F<:S-
b) 0%N%G<:S-
@: Is !ompan" going for 5ob :otation and 5ob <nri!hment\
]: a) Les b) No !) Don/t *no)
@: Does training help in 0orale Boosting and in!rease in <ffi!ien!" of
<mplo"ees\
]: a) Les b) No
6$
@: Brom the follo)ing- )hi!h methods are adopted for 9n-the-&ob and 9ff -
the-&ob training\
]: a) %pprenti!eship b) Demonstration
!) Hestibule raining d) =oa!hingAUnderstud"
e) 1e!turesA=onferen!es f) S"ndi!ate
g) :ole->la" h) =ase-Stud"
i) %ll &) None
@: ?hat t"pe of organi4ational stru!ture does !ompan" follo)s\
]: a) 1ine b) 1ine and Staff
!) 0atri, d) Bun!tional
e) Di'isional f) >ro&e!t
g) Bree Borm h) None
i) %ll
@: ?hat t"pe of =ommuni!ation !hannel does !ompan" follo)s\
]: a) Gori4ontal b) Herti!al
!) Up)ard d) Do)n)ard
e) %ll f) None
68
@: ?hat t"pe of in!enti'es and allo)an!es does !ompan" follo)s\
]: a) #I!A!$IAL/8
-(Indi'idual): -(=olle!ti'e):
1) >rodu!ti'it" lin*ed 1) >rofit In!enti'es

+) >erforman!e based pa" +) Sto!* 9pinion
$) :etirements benefits


b) !O!8#I!A!$IAL:-
-(Indi'idual): -(=olle!ti'e):
1) Status 1) So!ial )or* importan!e

+) :esponsibilit" +) >arti!ipation
$) 5ob Se!urit" $) eam Spirit
8) >romotion 8) Informal )or* groups
@: Does 0U1 adopt >arti!ipati'e 0anagement St"le\
]: a) Les b) No
@: .9ur G: team 'ie)s an emplo"ee as an Vinternal !ustomer/ and stri'es to
deli'er ma,imum satisfa!tion to him through transparent sensiti'e and
inno'ati'e G: pra!ti!eT- are "ou satisfied )ith this statement\
-(S(D-strongl" disagreed- %-agreed- D-disagreed- and S(%-strongl"
agreed)
]: a) S(D b) % !) S(%(D
6C
d) S(% e) N(D-N(%
@: %re "ou agreed or disagreed )ith the follo)ing: -
.0U1 introdu!ed a $6# degree Beedba!* S"stem starting )ith its senior
1eadershipT(
]:

$HA5TER82
&I&LOGRA5HY
&OO," U"ED/ 8

@A >:%S%D- 1(0(- >%G< N9(- +C- CC



I!TER!ET 6E&"ITE" U"ED/ 8
66
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