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A Detailed and Analytical Study of Trainning and Development in Maruti Suzuki Ltd

A Detailed and Analytical Study of Trainning and Development in Maruti Suzuki Ltd

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  • FINDINGS AND ANALYSIS
  • SUMMARY, CONCLUSION AND SUGGESTIONS

Training And Development

Acknowledgement

Michael Hammer once said ‘acknowledgements are the most difficult part of
a book to write; it’s hard to know where to start and even harder to know
where to stop’.
Luckily for us we do not face this predicament. This is because the entire
team at Maruti Suzuki India Ltd. and Indian institute of planning and
management – Delhi has helped us in every way possible to make this
project trimester a roaring success.
We would like to thank Mr. Amit Thakur our Mentor at Maruti Suzuki for
the confidence he has in us. He gave us an opportunity to work on numerous
projects which gave us tremendous exposure. The learning on the job and
interaction with him is invaluable for which we shall be thankful forever.
We must express our appreciation to Mr. S.P. Sharma for continually
challenging us to improve and refine and extend our thinking.
.
A special thanks goes out to Mr Satish. Kumar, Faculty Indian institute of
planning and management – Delhi without whose guidance and support this
project would not have been a success.
Lastly, Family and Friends significantly contributed to the development of
ideas. Thank you.
Once again we thank you all.

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Training And Development

TRAINING & DEVELOPMENT
IN
MARUTI SUZUKI INDIA LTD

The essential elements in any commercial enterprise are materials,

equipment and human resource. Training allied to the other human resource

specializations within management, ensures a pool of manpower of the

required level of expertise at the right time.

MARUTI SUZUKI understands it very well and trains its employees

accordingly so that they are always ahead of their competitors. In our study

we have tried to understand the methods adopted by MARUTI SUZUKI for

training its employees and evaluate their effectiveness.

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Training And Development

Table of Contents

Topic Page no

Section I: Introduction 5

Section II: Objectives of the project 9

Section III: Theory of Training 10

Section IV: Research Methodology 27

Section V: Industry & Company Profile 29

Section VI Findings and Analysis 36

: Summary , Conclusion and Suggestions 52

Annexure 56

Bibliography 65

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Training And Development

INTRODUCTION

Every organization needs to have experienced and well-trained employees to perform the
activities. Rapid changes in the environment have not only made the jobs more complex
but have also created increased pressures for the organizations to re-adapt the products
and services offered to compete in this fast changing world. Therefore, in a rapidly
changing society training is an activity, which is must for maintaining a viable and
knowledgeable work force.

Success of any training programme largely depends upon proper identification of training
needs. Training needs are felt by the managers when they discover/perceive deviation
between standard performance and actual performance of its employees. It is not that
only workers need training. Simultaneously supervisors, managers and executives need to
be trained and developed to grow and acquire maturity of thought and action. Many
organizations invest considerable resources in training and development but never really
examine how and where this can most effectively promote organizational objectives and
individual growth. The failure to analyze training needs within the organization will lead
to lesser of benefits and huge investment in the training programme of the institute.
Hence it would be pertinent to analyze training needs first and then impart training
accordingly.

Training is a long term investment in HR using the equation given below:

Performance = ability x motivation

Training can have an impact on both these factors. It can heighten the skills and abilities
of the employees and their motivation by increasing their sense of commitment and
encouraging them to develop and use new skills.

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Training And Development

Specifically, the need for training arises due to the following reasons:-

1. To match the employee specification with the job requirements and
organizational needs: -

Management finds deviations employee’s present specifications and the job requirements
and organizational needs. Training is needed to fill these gaps by developing and molding
the employer’s skill, knowledge, attitude, behavior etc .to the tune of job requirements
and organizational needs.

2. Organizational Viability and the Transformation Process:-
The primary goal of most of the organization is that their viability is continuously
influenced by environmental pressure. If the organization does not adapt itself to the
changing factors in the environment, it will lose its market share. If the organization does
not adapt to these changes, first it has to train the employees, it will lose its market share,
skills, knowledge in order to enable them to contribute to organizational efficiency and to
cope with the changing environment.

3. Technological advances:-

Every organization in order to survive and to be effective should adopt the latest
technology i.e. mechanization, automation, computerization. Adoption of latest
technology means and methods will not be complete until they are manned by the
employees possessing skills to operate them .So, the organization should train the
employees to enrich them in the areas of changing technical skills and knowledge from
time to time.

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Training And Development

4. Organizational Complexity:-

With the employee of increased mechanization and automation, manufacturing of
multiple products and by the products or dealing in services of diversified lines, extension
of operations to the various regions of the country or in overseas countries, organization
of most of the companies has become very complex.
This creates the complex problems of co-ordination and integration of activities adaptable
to the expanding and diversifying situations. This situation calls for training in the skills
of co-ordination, integration and adaptability to the requirements of growth,
diversification and expansion.

5. Human relations:-

Trends in approach towards personnel management has changed from commodity
approach to the partnership approach, crossing the human relations approach. So toady,
management of the most of the organizations has to maintain human relations besides
maintaining sound relations although hitherto the managers are accustomed to deal with
the workers accordingly .So, training in human relations is necessary to deal with the
human problems (including with the alienation ,interpersonal ,and group conflicts.) and to
maintain human relations .etc.

6. Change in job assignment:-

Training is also necessary with the existing employee is promoted to the higher level in
the organization and when there is some new job or occupation due to transfer. Training
is also necessary to equip old employees with the advanced disciplines, techniques and
technology.

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Training And Development

The need for training also arises to:

• Increase productivity

• Improve the quality of the product.

• Help a company to fulfill its future personnel needs.

• Improve organizational climate.

• Improve health and safety.

• Prevent obsolescence.

• Effect personal growth.

• Minimize the resistance to change.

• To act as a mentor.

Mentoring as a Training tool:
Mentoring or counseling dates back to human civilization .It found it roots in India in the
traditional guru-sishya relationship. Most progressive organizations today look-upon
mentoring as a management tool to encourage development of individuals and teams. The
mentor must chalk out to plan to listen, coach and counsel his mentees. The individual
plan must be integrated to the corporate plan. But there has to be an individual effort on
the part of the manager to make it work.

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OBJECTIVES OF THE PROJECT

• To identify the extent of training and development needs in MARUTI SUZUKI

INDIA LTD.

• To study the various methods of training for employees, in MARUTI SUZUKI

INDIA LTD.

• To evaluate the effectiveness of training programmes in MARUTI SUZUKI

INDIA LTD.

• To compare our findings with the learning gained in our class room lectures.

SCOPE

The focus of our study will be on all the employees and the training methods adopted for
them excluding the top level executives. Although we wanted to cover top level
executives also but that was not possible because of less time and non-availability of top
executives. We will study the training methods adopted for middle level managers, junior
level managers and supervisors

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THEORITICAL PERSPECTIVE

Training is a learning experience in that it seeks a relatively permanent change in an
individual that will improve his/her ability to perform on the job. We typically say
training can involve the changing of skills, knowledge, attitudes or social behavior. It
may mean changing employees, how they work, and their attitudes toward their work
of their interaction with their co-workers or supervisors. The essential elements in any
commercial enterprise are materials, equipment and human resource. Training allied
to the other human resource specializations within management, ensures a pool of
manpower of the required level of expertise at the right time. But firstly consider the
attention given by an average organization to the provision of materials, machinery
and equipment. Then compare the commitment to the third essential factor in then
production cycle, viz: - human resources. One of the most important factors in his
regard is the traditional view of training and trainers. They are seen as an expense, a
service, as second rate to production or as a necessary evil. Training has tended to fall
behind other management activities, especially in the planning phase. It is often
carried out as a reaction to immediate needs, a patch up operation in many cases,
instead of an ordered activity. Training and Development is especially designed to
enhance the competency of managers and workers dealing with a variety of
organizational functions.

Training and Development is a process through which the goals of management
development can be achieved. Investment in Training and Development has come to be
considered as an asset for organizational development or in other words, Training is
indispensable for effective organizational development. Earlier, training was almost
exclusively trainer oriented and it was not need based. The trainer (training institute)
determined the objectives of the course, its duration, its contents and format etc. On many
occasions training was of a pedagogic nature with the trainer in complete control of the
direction of the training. Moreover, the alignment of the corporate goal was missing. The
views of the trainees were rarely sought or even if they were, it was with a condescending

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attitude. Due to all these reasons the bottom-line contribution of training or the
organizational development was less.

All employees are expected to participate in company sponsored training programs
considered necessary for enhancing their work skills. We realize that in today’s
constantly changing environment, our services have to be better than those of our
competitors. Therefore, training opportunities are offered through specialized training
programs conducted by in-house instructors, instructors from the industry, or by experts
in the field

BENEFITS OF TRAINING

Training helps people to identify with organizational goals by
preparing guidelines for work and providing information for future needs in all areas
of organization.

Training improves job knowledge and skills at all levels of
organization, which makes organization more effective in decision making and
problem solving. Hence training increases quality and productivity at work.

Training aids in organizational development and development for
promotion from within. It creates an appropriate climate for growth and
communication.

Training helps to keep cost down in many areas, e.g. production,
personnel, administration etc. It also reduces the cost of outside consulting by
utilizing competent internal consulting.

Training improves relationship between the boss and subordinate or
labor management relations by fostering authenticity, openness and trust.

Training aids in developing leadership skill, motivation, loyalty, better
attitudes and other aspects that successful workers and managers usually display. It
increases the moral of workforce.

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Training And Development

Training develops sense of responsibility to the organization for being

competent ant and knowledgeable.

TRAINING OBJECTIVES AND STRATEGIES

Having identified the training needs based on the various analyses discussed above, the
next logical steps are to set training objectives in concrete terms and to decide on the
training strategies to be adopted to meet these objectives. The training needs basically
highlight the gap between the existing and desired repertoire of knowledge attitude and
skills at individual, group and organizational level to enable the employees to contribute
towards the realization of organizational objectives at optimum efficiency. The training
effort thus will have to aim at filling in this gap by clearly stating the objectives in
quantitative and qualitative terms to be achieved through training. Such an exercise will
also enable the training specialists to evaluate, monitor and measure the extent to which
stated objectives have been met through training intervention. As the training objectives
are related to organizational objectives, the involvement of the top management will be
necessary to ensure that the two sets of objectives are integrated.

It will be desirable to use the following criteria in setting training objectives:

I. Specific requirements of individuals and organizations so as to achieve integration of

the two.

II. Roles and tasks to be carried out by the target group.

III. Relationship with other positions vertically and horizontally and technological
imperatives.

IV.Relevance, applicability and compatibility of training to work situations.

V. Training as a means of bringing about a change in behavior back on the job.

VI.Behavior including activities that can be observed, measured and/or recorded

VII. The expected change in behavior must be useful, closely related to and subject to
maintenance in the work environment.

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TRAINING OBJECTIVES

I. To prepare the employee, both new and old to meet the present as well as the
changing requirements of the job and the organization.
II. To prevent obsolescence.
III. To impart the new entrants the basic knowledge and skills they need for an intelligent
performance of a definite job.
IV. To prepare employees for higher level tasks.
V. To assist employees to function more effectively in their present positions by
exposing them to the latest concepts, information and developing the skills they will
need in their particular fields.
VI. To build up a second line of competent officers and prepare them to occupy more
responsible positions.
VII. To broaden the mind of senior managers by providing them with opportunities for an
interchange of experiences within and outside with a view to correcting the
narrowness of outlook that may arise from over generation.
VIII. To develop the potentialities of people for the next level job.
IX. To ensure economical output of required quality.
X. To promote individual and collective morale, a sense of responsibility, co-operative
attitudes and good relationship.

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SYSTEMATIC APPROACH TO TRAINING

ORGANISATIONAL ANALYSIS

• Identification of organizational objectives/needs/growth potential and resources.

TASK ROLE ANALYSIS

• Identification of knowledge, skills and attitudes required.

MANPOWER ANALYSIS

• Identification /definition of target population and performance analysis.

STATEMENT OF TRAINING NEED

• Identification of gap between existing and required level of knowledge skills and

attitude.

• Isolate problem areas amenable to resolution through training

SETTING TRAINING OBJECTIVES

• In terms of behavioral charges

• In terms of output/results

DEVELOP TRAINING POLICY, PLAN, PROFICIENCY

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PLAN AND DESIGN TRAINING AND PROGRAMME

• Course construction

• Arrange resource

CONDUCT TRAINING PROGRAMMES

• Individual

• Group

• On-the job

FOLLOW UP AND EVALUATION

• Carry out evaluation at various phases against the training objectives set.

• Develop follow-up measures for monitoring.

ENSURE FEEDBACK OF RESULTS

REVISE IF NECESSARY

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DETERMINING TRAINING NEEDS AND PRIORITIES

Management can determine the training needs by answering the following questions:

• What are the organization's goals?

• What task must be completed to achieve these goals?

• What behaviors are necessary for each job incumbent to complete his/her assigned

jobs?

• What deficiencies, if any, do incumbents have in skills, knowledge or attitudes

required to perform the necessary behaviors?

• It again depends on seeing the performance of an individual?

Based on out determination of the organization's needs, the type of work that is to be
done, and the type of skills necessary to complete this work, the training programme
should follow naturally.

What kind of signals can warn a manager that employee training may be necessary?

Clearly, the more obvious, ones relate directly to productivity; inadequate job
performance assuming the individual is making a satisfactory effort, attention should be
given toward raining the skill level of the worker. When a manager is confronted with a
drop in productivity, it may suggest that skills need to be “fine tuned”.

In addition to productivity measures, a high reject rate may indicate a need for employee
training. A rise in the number of accidents reported also suggests some type of re-training
is necessary. There is also the future element: changes that are being imposed on the
worker as a result of a job redesign or a technological breakthrough. These types of
changes require a training effort that is fewer crises oriented; that is, a proportion for
planned change rather than a reaction to immediately unsatisfactory condition.

Training cannot be the answer of the problem that lies outside the job activity itself. For
examples, if salaries are low, if supervision is poor, if workers benefits are inadequate or
if the physical work tryout is deficient, spending on employee training may have little or

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no effect on productivity, since inadequate performance is due to conditions that training
cannot remedy. Training can enhance skills but does nothing to relieve monotony.

Once if has been determined that training is necessary, training goals must be established.
Management should explicitly state what changes or results are sought for each
employee. It is not adequate merely to say that change in employee knowledge, skills,
attitudes or social behavior is desirable, we must clarify what is to change, and by how
much. These goals should be tangible, feasible and measurable. It should be clear both to
the management as well as the employee.

THE TRAINING PROCEDURE

The training procedure discussed below is essentially an adopted of job instruction
training course, which has been proved to have a great value.
The important steps in the training procedure are discussed below:

1. Assessment of training needs

There are five steps towards the assessment and analysis of training and development of
the organization.

• Collection of information through interviewing and discussing with key personnel

both inside and outside the organization or specific departments; observing the work
place, working conditions, processes and outcomes; examining records, other written
information and annual employee appraisal.

• Compare performances of each department and each employee against objectives,

targets and standards set for them and keeping in mind future work requirements in
the organization.

• Identify cause of problems faced by the organization to enable the management to

train the employees in handling the problems as well as solving the problem in a
satisfactory manner.

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Training And Development

• Segregate identified problems into problems requiring staff development action such

as training and into problems requiring other management actions, so that these
problems are accurately addressed.
Prioritize training actions in accordance to where the training need is more urgent.

2. Preparing the Instructor: the instructor must know all the job to be taught and how
to teach it. The job must be divided into logical parts so that each can be taught at a
proper time without the trainee losing plans. For each part, one should have in mind the
desired technique of instruction, that is, whether a particular point is best taught by
illustration, demonstration or explanation.
A serious and committed instructor must:

• Know the job or subject he is attempting to teach.

• Have the aptitude and ability to teach.

• Have willingness towards the profession.

• Have a pleasing personality and capacity for leadership.

• Have the knowledge of teaching principal and methods.

• He should equip himself with the latest concepts and knowledge.

3. Preparing the trainee: As in interviewing, the first step in training is to attempt to
place the trainee at ease .Most people is somewhat nervous when approaching an
unfamiliar task. Though the instructor may not have executed this training procedure,
many times he or she never forgets its newness to the trainee. The quality of empathy is a
mark of the good instructor.

4. Getting Ready to teach: This stage of the programme is class hour teaching involving
the following activities:

• Planning the programme.

• Preparing the instructor’s outline.

• Do not try to cover too much material

• Keep the sessions moving along logically

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• Discuss each item in depth.

• Take the material from standardized texts when it is available.

• When the standardized text is not available, develop the programme and course

content based on group approach .Group consists of employer ,skilled employees,
supervisors, trade based on group approach and other familiar with job requirements.
Group prepares teaching material.

• Teach about the standard for the trainee like quality, quantity, waste or scrap, ability

to work without supervision, knowledge or procedure, safety rules, human relations
etc.

5. Presenting the operation: There are various alternative ways of presenting the
operation, vis .explanation, demonstration etc. An instructor mostly uses these methods
of explanation .In addition; one may illustrate various points through the use of pictures,
charts, diagrams, and other training aids.

6. Try out the trainee’s performance: As a contribution of the presentation sequence
given above, the trainee should be asked to start the job or operative procedure. Some
instructors prefer that the trainee explains each step before doing it, particularly if the
operation involves any danger, through repetitive practice, will acquire more skill.

7. Follow-up: The final step in most training procedures is that of follow up. When
people are involved in any problem or procedure, it is unwise to assume that things are
always constant. Follow –up can be adapted to a variable reinforcement schedule as
suggested in discussion of learning principles. Every training programme should have a
follow-up; otherwise the training programmers in ten futures cannot be improved.

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TRAINING METHODS

As a result of research in the field of training, a number of employees are available .Some
of these methods are new, while others are traditional methods. The training programmes
commonly used to train operative and supervisory personnel are discussed below. These
programmers are classified into on-the-job and off-the-job training programmes.

ON THE JOB TRAINING METHODS OFF THE JOB TRAINING
METHODS

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TRAINING
METHODS

JOB ROTATION
COACHING
JOB INSTRUCTION
TRAINING THROUGH
BY STEP- BY-STEP
COMMITTEE
ASSIGNMENTS

VESTIBULE TRAINING
ROLE PLAYING
LECTURE METHODS
CONFRENCE OR DISCUSSION
PROGRAMMED
INSTRUCTION

Training And Development

ON-THE-JOB TRAINING METHODS:-

This type of training, also known as job instruction training is the most commonly used
method. Under this method individual is placed on a regular job and taught the skills
necessary to perform that job. The trainee learns under the supervision and guidance of a
qualified worker or instructor. On-the-job training has advantage of giving first hand
knowledge and experience under the actual working conditions. While the trainee learns
how to perform a job, he is also a regular worker rendering the services for which he is
paid. The problem is placed on rendering services in the most effective manner than
learning how to perform the job. On-the-job training methods include job rotation,
coaching, job instruction through step by step and committee assignments.

1. Job Rotation:--

This type of training involves the movement of the trainee from one job to another.
The trainee receives job knowledge and gains experience from his or her supervisor
or trainer of the different job assignments. Though this method of training is common
in training managers for general management positions, trainees can also be rotated
from job to job in workshop jobs. This method gives an opportunity to the trainee to
understand the problems of employees on the other jobs and respect them.

2. Coaching:-
The trainee is placed under a particular supervisor who functions as a coach in
training the individual .The supervisor provides feedback to the trainee on his
performance and offers him some suggestions for improvement. Often the trainee
shares some of his duties and responsibities of the coach and relieves him of his
burden .A limitation of this method of training is that the trainee may not have the
freedom or opportunity to express his own ideas.

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3. Job Instruction:-

This method is also known as training through step by step .Under this method, the
trainer explains to the trainee the way of doing the job, job knowledge and skills and
allows him to do the job. The trainer appraises the performance of the trainee,
provides feedback information and corrects the trainee.

4. Committee Assignments:-

Under this committee assignment, a group of trainees are given and asked an actual
organizational problem. The trainee also solves the problem jointly. It develops the
team work.

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OFF-THE-JOB METHODS:-

Under this method of training, the trainee is separated from the job situation and his
attention is focused upon learning the material related to his future job performance.
Since the trainee is not distracted by job requirements, he can place his entire
concentration on learning the job rather than spending his time in performing it. There is
an opportunity for freedom of expression for the trainees. Companies have started using
multimedia technology and information technology on training. Off-the-job training
methods are given below:

1. Vestibule Training :-

In this method, actual work conditions are simulated in a class room. Material, files,
equipments which are used in actual work performance are also used in training.
This type of training is used for training personnel for clerical and semi-skilled jobs.
The duration of this training ranges from days to few weeks. Theory can be related to
practice in this method.

2. Role Playing:-

It is defined as method of human interaction that involves realistic behavior in
imaginary situations. This method of training involves action, doing and practice. The
participants play the role of certain characters such as the production manager,
mechanical engineer, superintendents, maintenance engineers, quality control
inspectors, foremen, workers and the like. This method is mostly used for developing
inter-personal interactions and relations.

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3. Lecture method:-

The lecture is a traditional and direct method of instruction. The instructor organizes
the material and gives it to trainees in the form of a talk. To be effective, the lecture
must motivate and create interest among the trainees .An advantage of the lecture
method is that it is direct and can be used for a large group of trainees. Thus, costs
can time involved are reduced. The major limitation of the lecture method is that it
does not provide for transfer of training effectively.

4. Conference or Discussion:-

It is a method in training the clerical, professional and supervisory personnel. The
method involves a group of people who pose idea, examine and share facts, ideas and
data, test assumption and draw conclusion, all of which contribution to the
improvement of job performance. Discussion has the distinct advantage over the
lecture method; in that the discussion involves two-way communication and hence
feedbacks provided. The participation feels free to speak in small groups. The success
of this method depends on the leadership qualities of the person who leads the group.

5. Programmed instruction:-

In recent years, this method has become popular. The subject matter to be learned is
presented in a series of carefully planned sequential units. These units are arranged
from simple to more complex levels of instruction. The trainee goes through these
units by answering questions or fillings the blanks. This method is expensive and time
consuming.

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EVALUATION OF TRAINING PROGRAMME

The specification of values forms a basis of evaluation. The basis of evaluation and the
mode of collection of information necessary for evaluation should be determined at the
planning stage. The process of training evaluation has been defined as “any attempt to
obtain information on the effects of training performance and to assess the value of
training in the light of that information.” Evaluation leads to controlling and correcting
the training programme. Hamblin suggested five levels at which evaluation of training
can take place, viz reactions, learning, job behavior, organization and ultimate value.

I. Reactions: - Training programme is evaluated on the basis of the trainee’s reactions to
the usefulness of coverage of the matter, depth, of course content, method of
presentation, teaching methods, etc.
II. Learning:- Training programme, trainer’s ability and trainee ability are evaluated on
the basis of quantity of content learned and time in which it is learned and the learners
ability to use or apply the content he learned.
III. Job Behavior: - The evaluation includes the manner and extent to which the trainee
has applied his learning to his job.
IV. Organization: - The evaluation measures the use of training, learning and change in
the job behavior of the department/ organization in the form of increased
productivity, quality, morale, sales turnover and the like.
V. Ultimate Value:- It is the measurement of the ultimate result of the the contributions
of the training programme to the company goals like survival, growth, profitability,
etc. and to the individual goals like development of personality and social goals like
maximizing social benefits.

The various methods of training evaluation are:-
I. Immediate assessment of trainees’ reaction to the programme.
II. Trainee’s observation during the training programme.
III. Knowing training expectation before the training programme

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IV. Seeking opinion of trainee’s superior regarding his/her job performance and
behavior before and after training.
V. Evaluation of trainee’s skill level before and after training programme.
VI. Measurement of improvement in trainees on the job behavior.
VII. Examination of testing system before and after sometime of training programme.
VIII. Measurement of trainee’s attitude after the training programme.
IX. Cost-benefit analysis of training programme.
X. Seeking opinion of trainee’s colleagues regarding his/her job performance and
behavior.
XI. Measurement of levels in absenteeism, turnover, wastage/scrap, accidents, breakage
of machinery during pre and post period of the training programme.
XII. Seeking opinion of trainee’s subordinates regarding his/her job performance and
behavior.

RECENT DEVELOPMENTS IN TRAINING

Employees have realized that change is order of the day and they
have started playing the role of a change agent. Consequently employees identify
their own training needs, select appropriate training programmes organized by
various organizations and undergo the training programmes. Thus employees in
recent times started taking proactive learning measures on their own.

On line training - : Companies started providing on-line training.
Trainees can undergo training by staying at the place of their work. Participants
complete course work from wherever they have access to computer and internet.
Different types of media are used for on-line training.

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RESEARCH METHODOLOGY

METHODOLOGY:

The is a descriptive research To identify the extent ,study the various methods of training
and to evaluate the effectiveness of training programmes in MARUTI SUZUKI
INDIA LTD.the data has been collected through both secondary an primary data

Secondary data has been used to compile the company profile and industry profile.
Secondary data collection is merely compilation of the data that has been previously
collected by someone else. Here we have used basically the web, books and other
different journals to collect the secondary data that would possibly meet our objective

The primary data has been generated through structured questionnaires, administered
on different level of managers.
Personal interviews have also been conducted to support the data.
First of all we contacted training department of Maruti Suzuki in order to collect first
hand information regarding the training structure of the company
Thereafter we met DPM (DEPARTMENT HEADS) of different departments and
employees to conduct our questionnaires and interviews. We interviewed 5 DPMs and 15
employees to gather the information we were looking for. Out of 4993 employees which
are presently working in the company
The most important data collection tool for our research is the collection of primary
data . This is important for our research as it provides us with all the information we
require to accomplish and fulfill our objective. Also, it is a widely used method, which is
less time consuming. Mostly unstructured questions are used for getting data as we
wanted to extract more information from the spokesperson instead of providing options
which could have narrowed down our research.
To make our research less complicated we chose convenient sampling to be or technique
so as to cut down the time factor.

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INDUSTRY AND COMPANY PROFILE

AUTOMOBILE INDUSTRY

In India there are 100 people per vehicle, while this figure is 82 in China. It is
expected that Indian automobile industry will achieve mass motorization status by
2014.

Industry Overview

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
Automobile Industry of India has come a long way. During its early stages the auto
industry was overlooked by the then Government and the policies were also not
favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent
years has made remarkable impacts on Indian Automobile Industry. Indian auto industry,
which is currently growing at the pace of around 18 % per annum, has become a hot
destination for global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development of an
economy, and India is no exception to it. With the growth of transportation system the
Automotive Industry of India is also growing at rapid speed, occupying an important
place on the 'canvas' of Indian economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles
and can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.

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Major points

• The first automobile in India rolled in 1897 in Bombay.

• India is being recognized as potential emerging auto market.

• Foreign players are adding to their investments in Indian auto industry.

• Within two-wheelers, motorcycles contribute 80% of the segment size.

• Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).

• Tata Motors dominates over 60% of the Indian commercial vehicle market.

• 2/3rd of auto component production is consumed directly by OEMs.

• India is the largest three-wheeler market in the world.

• India is the largest two-wheeler manufacturer in the world.

• India is the second largest tractor manufacturer in the world.

• India is the fifth largest commercial vehicle manufacturer in the world.

• The number one global motorcycle manufacturer is in India.

• India is the fourth largest car market in Asia - recently crossed the 1 million mark.

• Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in

multi purpose vehicles.

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THE COMPANY PROFILE

Maruti Suzuki is one of India's leading automobile manufacturers and the market leader
in the car segment, both in terms of volume of vehicles sold and revenue earned. Until
recently, 18.28% of the company was owned by the Indian government, and 54.2% by
Suzuki of Japan. The Indian government held an initial public offering of 25% of the
company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to
Indian financial institutions. With this, Govt. of India no longer has stake in Maruti
Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983. Through 2004, Maruti has produced over 5 Million
vehicles. Marutis are sold in India and various several other countries, depending upon
export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold
by Suzuki in Pakistan and other South Asian countries.

The company annually exports more than 30,000 cars and has an extremely large
domestic market in India selling over 500,000 cars annually. Maruti 800, till 2004, was
the India's largest selling compact car ever since it was launched in 1983. More than a
million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the
sales charts.

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

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

Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of
New Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000 units per
annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly
plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual

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capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a
combined capability to produce over 700,000 units annually.

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

During 2006-07, Maruti Suzuki sold about 675,000 cars, of which 39,000 were exported.
In all, over six million Maruti cars are on Indian roads since the first car was rolled out on
December 14, 1983.

Maruti Suzuki offers 10 models, ranging from the people’s car, Maruti 800, for less than
Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4 and luxury SUV, Grand
Vitara.

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

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

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

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

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Snapsho
t

Incorporated

February 1981

Joint Venture Agreement

October 1982

Equity Structure

54.2% Suzuki, Japan, balance with Other Financial
Institution and Public

Sales (No of Cars) Financial
year
2006-07

674, 924 including 39,295 exports.

Sales (Net of Excise)
Financial year
2006-07

INR 152.5 Billion , Yen 423.675 Billion ,
$ 3.499 Billion *

Profit After Tax
Financial year
2006-07

INR 15.62 Billion, Yen 42.22 Billion , $ 358.34 Million *

Employee Strength

4993 of Financial year 2006-07

Facilities

Gurgaon: 3 vehicle assembly plants
Manesar: 1 vehicle assembly plant
Head Office in New Delhi, India
Regional offices: 16

Diesel Powertrain Plant

Suzuki Powertrain India Limited (SPIL), Joint Venture
between Suzuki Motor Coroporation 70% Equity the rest
is with Maruti Suzuki India Limited.
Global hub for Diesel engines and transmissions for
Suzuki worldwide.

Joint Venture

15 Joint Venture companies, including Suzuki Powertrain
India Limited for component supply.

Subsidiary Companies

True Value: for sale and purchase of preowned cars
Maruti Insurance: for insurance of Maruti vehicles (four
companies)
Maruti Finance: for financing Maruti vehicles

Product Portfolio

10 models with around 100 variants including:
Maruti 800 Omni
Alto

WagonR

Swift

Zen

Gypsy

Esteem

Training And Development

TRAINING AT MARUTI SUZUKI INDIA LTD.

All the employees of MARUTI SUZUKI LTD. (irrespective of their department) are
given training, covering the following contents:-

1. Team building
2. Business Communication
3. Corporate and business etiquettes
4. Interview
5. 7 QC tools (Quality tools in management)
6. world class
7. Statistics process control
8. logistic process control
9. Risk management
10. Information security awareness
11. Internal customer centric approach
12. Leadership
13. Finance for non-finance people
14. Yoga

Training programmes are conducted according to the needs of different departments and
this is just a small list of areas covered under training.

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