LOTUS INSTITUTE OF MANAGEMENT

PROJECT OF HUMAN RESOURCE MANAGEMENT ON MARUTI UDYOG LIMITED

Submitted to Mr.Gaurav Saxena HR FACULTY

Submitted by: TANVI AGARWAL PGDM_08_56

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ACKNOWLEDGEMENT The goal was fixed, moves were calculated and I moved with full of enthusiasm, vigor and keen interest. There was a time when it proved to be on up hill task, the goal seeming beyond my reach. But as work progressed my determination and will power grew stronger and completion of this work further confined my belief that, “WHERE THERE IS A WILL THERE IS A WAY”. It’s a sheer pleasure for me to state with candidly that this entire project is a heartily attempt to reach maximum accuracy. I therefore take this opportunity top express my utmost gratitude and indebtness to all who have contributed in some way. I highly express my sincere thanks to MR. MANOJ MITTAL who helped me throughout the project. Last but not least I would like to pleasure a word of appreciation to my family & friends who supported & helped me to make this project a success.

CONTENT 2

1) Acknowledgement 2) Objective of the study 3) Organization structure 4) Quick facts of MUL 5) Some successful stories of MUL 6) Vision ,values 7) Division and Departments 8) Organization chart 9) HR vision 10) HR initiative 11) Culture building initiative since Inception 12) Focus of effective management process since Inception 13) Induction and Succession 14) Matter usually discussed in the Induction program of MUL 15) Induction program 16) Meaning of Recruitment 17) Process of recruitment a) for a particular city b) for a particular dealership c) depending on the availability of infrastructure d) for a particular qualified person 18) Selection meaning 19) Selection process of MUL 20) Meaning of training 21) Importance of training 22) Sales and training department of MUL 23) Training process for sales executives 24) Training process for sales manager/general manager/branch manager 25) Training and Development of Dealers sales executives 26) Performance Appraisal in MUL 27) Major findings 28) Conclusion 29)Appendices 30) Bibliography 31) webliog

OBJECTIVES 3

➢ To enhance my knowledge about Recruitment and Selection. ➢ To enhance my knowledge about Training & Development. ➢ To convert my theoretical knowledge into practical knowledge. ➢ To prepare myself as a H.R. person who can easily identify the training need through his experience which is very essential quality of a H.R. Person & for the organization as well.

Organization structure 4

Creating Customer Delight and Shareholder's Wealth.BO With Suzuki Motor Company. now Suzuki Motor 5 Joint Venture .FACTS OF MARUTI UDYOG LIMITED Quick Facts Year of Establishment Vision Industry Listings & its codes February 1981 "The Leader in The Indian Automobile Industry.Four Wheelers BSE .Code: MARUTI Bloomberg: MUL@IN Reuters: MRTI." Automotive .Code: 532500 NSE . A pride of India.

India Tel.: +(91)-(11)-23316831 (10 lines) Fax: +(91)-(11)-23318754.marutiudyog. M800. India Tel. Kasturba Gandhi Marg New Delhi .Registered & Corporate Office Works Website Corporation.Alto number one in its segment for the 2nd time in a row. 2341341-5 http://www. 23713575 Telex: 031-65029 MUL IN Palam Gurgaon Road Gurgaon -122015 Haryana. Number one in JD Power CSI for the sixth time in a row . WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study .: +(91)-(124)-2340341-5.110001. Esteem number one in its segment 6 . of Japan in October 1982.com/ Segment and Brands Products Four Wheelers Brands Maruti 800 Maruti Esteem Maruti Omni Maruti Versa Maruti Zen Maruti Alto Maruti Grand Vitara XL-7 Maruti Suzuki SX4 Maruti Vitara Maruti Baleno Maruti Gypsy King Maruti Swift Maruti Wagon-R Awards & Accolades 2005 • • • Number one in JD Power SSI for the second consecutive year.the only car to win it so many times. Jeevan Prakash 25. 11th Floor.

Voted Manufacturer of the year by CNBC. Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC (2nd time in a row)-Feb 05. TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05. 1 in Total Customer Satisfaction (Maruti 800. First Indian car manufacturer to reach 5 million vehicles sales. 1 in Sales Satisfaction No. Business World ranks Maruti among top five most respected companies in India-Oct 04. Swift number one in the premium compact segment. 1 in Product Appeal (Esteem and Wagon R). No. 1 in Customer satisfaction. Business World ranked us the country's most respected automobile company. 7 .1 in Product Quality (Esteem and Alto) and No. Business World ranked us among the country's five most respected companies. No. • • • • • • 2004 • • • • • • WagonR and Esteem top their segments in the JD Power APEAL study. Maruti ranked among top ten (Rank7) greenest companies in India by Business Today . Voted one of India's Greenest Companies by Business TodayAC Nielson ORG-MARG.Sep '04 Maruti Suzuki was No. Zen and Alto).for the 3rd year in a row.

RGANISATION CHART 8 .

Chadha Khan Manager Loan Manage r Auto Loan 9 .ger. Accessories Counter. Delivery Manager CCManagerMIBilling.etc. AccessoriesGMerSupport staff:DSA LobbySupportExecs. Vineeta Staff Arora Aamir M.MIM. ManagerCorporate Managersales(Sales) HRIT AdvisorSales(Corporate Sales) BharatMehra Telecallers Salwan (Corporate Sales) Mana etc.. Call Centre MudraChannel Sales-Sunil Supreet etc.Consultantstaff: Peons Support ManagCEO Serviceetc. Managermgnr & Sales TeamSalesstaff:staff: Leader CCE Field Drivers.

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

Empowerment. Job Rotation .marketing staff Retention of Talent CULTURE BUILDING INITIATIVES SINCE INCEPTION Japanese Management philosophy of Team Spirit • Common uniform • Open office • Common Canteen • Open Office – Easy accessibility. Declared organization structure Workers (Technical / Assistant.). Speedy • Communication and decision making • Morning Meetings • Morning Exercises FOCUS OF EFFECTIVE MANAGEMENT PROCESS SINCE INCEPTION • • • • • • • • • Management Committee Meetings – every Tuesday ·Single unaffiliated Union Excellent Industrial Relation scenario No loss of monday due to strike/lockout etc. Roll out of Vision Raise cost consciousness for cost control and reduction Exposure on Brand Strategy to all non. Training need identification Systematic career planning . Managers Top Driven HR – MD is also Director HR HR’s role of a facilitator Line managers as HR Managers 11 . Job enrichment Periodic communication meeting at various level.HR INITIATIVES • • • • • • • • • Prepare MUL Strategic Business Plan-2000-2003. Executives. skill & usage Introduce a Potential Appraisal System Improvements in internal & external Training & it’s effective utilization. Maruti Udyog Sahyog Samiti – a forum for non unionized staff. in past 5 yrs.it’s process. To achieve the Vision & Goal Improve the performance Appraisal system . Supervisors.

• • • Year of the Customer – HR Internal Customer Focus Focus on Internal & External Customer. • • • • • • • • • MATTER USUALLY DISCUSSED IN THE MARUTI INDUCTION Overview of Maruti and Suzuki Building understanding of the car market in India and various segments Understand MUL’s product range and positioning in each segment Understanding the basics in the automobile industry Role of financing as a sales tool and the various financing options available Ensuring personal effectiveness Understand the attributes of a good DSE Overview of each Maruti model and the MUL ‘Advantage’ Overview of the selling process and how to uncover needs of a customer to do need based selling 12 . INDUCTION AND SUCCESSION • • • • • • • • Transparent Recruitment & Selection process Recruitment on an All India Basis – no sector or region specific. Engineers – CAMPUS .Rank Holders India Exam & Apprenticeship In MUL Lateral Entry for Experienced Professionals.IITs/RECs/Rorkee /HBTI ALL-INDIA TEST MBAs – IIMs/XLRI CAs .

This program attempts to orient the new DSEs on a few important parameters.Induction program Objective: The objective of this program is to facilitate smooth induction of the new DSEs into their place of work i.e. which are listed below:       Overview of Maruti and Suzuki Building understanding of the car market in India and various segments Understand MUL’s product range and positioning in each segment Understanding the basics in the automobile industry Overview of each Maruti model and the MUL ‘Advantage’ Overview of the selling process and how to uncover needs of a customer to do need based selling  Role of financing as a sales tool and the various financing options available  Ensuring personal effectiveness  Understand the attributes of a good DSE 13 . Maruti dealerships.

Process of identifying and hiring best-qualified candidate (from within or outside of an organization) for a job vacancy.MEANING OF RECRUITMENT It is the process of searching the potential candidate and offers him or her the job. 14 . It is positive in nature in the Indian context. in a most timely and cost effective manner RECRUITMENT PROCESS OF MARUTI UDYOG LTD The recruiting procedure at a Maruti dealership is as follows: For a particular city For a particular Dealership The dealership should release an advertisement.

But it is positive in the US context. facts 15 . It is negative in nature in the Indian context.Depending on availability of infrastructure Interview of shortlisted/ qualified personnel MEANING OF SELECTION It is the process of searching the potential candidate. Steps in Selection Process of Maruti udyog ltd Selection process consists of a series of steps. at each stage.

These hurdles or screens are designed to eliminate an unqualified candidate at any point in the selection process There is no standards selection procedure to be used in all organizations or for all jobs. The complexity of selection procedures increases with the level and responsibility of the position to be filled. 1} Preliminary Interview (screening applications) Initial screening is done to weed out totally undesirable/unqualified candidates at the outset. skills. It is a series of successive hurdles or barriers which an applicant must cross. Tests are useful when the number of applicants is large. It should provide all the information relevant to selection. It helps to determine whether it is worthwhile for a candidate to fill up the application form. It is essentially a sorting process in which prospective candidates are given the necessary information about the nature of the job and the organization. may be avoided as it may be regarded an evidence of discrimination. 16 . at the same time. where reference for caste. 3}Selection Test Psychological tests are being increasingly used in employee selection. . where a test may involve some aspect of an individual’s attitudes. behavior and performance. experience. salary expected and the like. 2} Application Form Application form is a traditional and widely used device for collecting information from candidates. religion. as at best it reveals that the candidates who scored above the predetermined cutoff points are likely to be more successful than those scoring below the cutoff point. the necessary information is also elicited from the candidates about their education.may come light which may lead to the rejection of the applicant. birth place.

Such examination serves the following purposes:a) It determines whether the candidate is physically fit to perform the job. training. education. c) It prevents the employment of people suffering from contagious diseases. where those who are physically unfit are rejected. and c) establishing a friendly relationship between the employer and the candidate so as to motivate the successful applicant to work for the organization. work history and interests of candidate b) giving information to candidates about the company. in practice interview becomes a one-sided affair serving only the first purpose. 6} Reference Checks 17 . d) It identifies candidates who are otherwise suitable but require specific jobs due to physical handicaps and allergies. the specific job and human resource policies. 5} Medical Examination Applicants who have crossed the above stages are sent for a physical examination either to the company’s physician or to a medical officer approved for the purpose. where the information collected through application letter or application forms and tests can be cross-checked in the interview. b) It reveals existing disabilities and provides a record of the employee’s health at the time of selection. However. This record will help in settling company’s liability under the workmen compensation Act for claim for any injury. selection in interview serves three purposes: a) obtaining information about the background. where candidates demonstrates their capabilities and strength in relevant to their academic credentials.4} Employment Interview Interview is an essential element of selection and no selection procedure is complete without one or more personal interviews.

if any. and reasons for leaving. where there is a chance to see whether nonverbal behavior matches what is said. many references merely state the job title. giving a good reference to hasten an employee’s departure or a poor one because of a grudge. Therefore. These may be his previous employers. If such a meeting cannot be arranged. The candidates shortlisted by the department are finally approved by the executive of concerned departments or units. candidates are generally required to route their applications through their present employers. (b) Because of (a) a prospective employer would be breaking a confidence if she asked for a reference before an offer of a job had been made and accepted. (c) By the time an offer has been accepted. where the decisions of the department are recommendatory. selection process is carried out by the human resource department. The opinion of referees can be useful in judging the future behavior and performance of candidate. (a) Most candidates are employed at the time of their application. heads of education institutions or public figures. selection is over and the reference is too late to affect it. but as most references are received after the candidate has started work. telephoning is the next best alternative. the date of employment. (f) References are occasionally biased. In government and public sector organizations. the best references are obtained in person. but is not advisable to rely exclusively on the referees because they are generally biased in favor of the candidate. and do not wish their employers to know they are looking elsewhere. they can only be used to warn managers of possible faults in the candidate which in serious cases may eventually lead to warnings followed by dismissal. (e) Employers giving references are usually extremely cautious. the names and addresses of two or more persons who know him well.The applicant is asked to mention in his application form. These people are requested to provide their frank opinion about the candidate without incurring any liability. (d) An offer may be made ‘subject to satisfactory references’. he or 7} Final Approval In most of the organizations. 18 .

the date by which the candidate should join and other terms and conditions in brief. In some organizations. customs and traditions of the company is called induction. a contract of service is signed by both the candidate and the representative of the organization. such as hours of work. bonuses and fringe benefits. The process of receiving employees when they begin work. 9} Induction. At this juncture various induction courses are done to new recruit in order to acclimatize them with the new working environment. Appointment is generally made on probation of one or two years. your employment will be subject to satisfactory references and medical examinations. the rank. introducing them to the company and to their colleagues. for instance. Employment is offered in the form of an appointment letter mentioning the post. and informing them of the activities. whether permanent or contractual basis. then you will be transferred to up-country branches. the candidate is finally confirmed in the job on the terms employed with. the salary grade. for example.8} Employment. c) The candidate must know the essential conditions of employment. 19 . holidays. where upon satisfactory performance during this period. It is at this point where a selected applicant is handled with a letter of offer for a job: a) The wage or salary offered must not only be appropriate to the job and attractive to the candidate but consistent with the earnings of present employees. b) The job must be named and any special conditions stated. d) Any provisos must be clearly stated. the first year you will be under training at the head office.

The training is mandatory for all the employees. the whole process from job specification to interview is then reviewed to see if a better choice can be made next time.10} Follow – up (Evaluation) All selection should be validated by follow-up. If a follow-up is unfavourable it is probable that selection has been a fault. Training Maruti arranges the training at several intervals. it a stage where employee is asked how he or she feels about progress to date and the worker’s immediate supervisor is asked for comments. The training schedule of all employees is maintained by the HR manager. which are compared with the notes taken at the selection interview. EDP In the EDP Department following are managed: 20 .

• Team spirit – Training and Development helps in inculcating the sense of team work. • Healthy work-environment – Training and Development helps in creating the healthy working environment. • Development of Human Resources – Training and Development helps to provide an opportunity and broad structure for the development of human resources’ technical and behavioral skills in an organization. It helps to build good employee. • Organization Climate – Training and Development helps building the positive perception and feeling about the organization. • Development of skills of employees – Training and Development helps in increasing the job knowledge and skills of employees at each level. and inter-team collaborations. relationship so that individual 21 . • Organization Culture – Training and Development helps to develop and improve the organizational health culture and effectiveness. It helps in inculcating the zeal to learn within the employees. ➢ Sales Analysis is done. It helps to expand the horizons of human intellect and an overall personality of the employees . • Productivity – Training and Development helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal. subordinates. It also helps the employees in attaining personal growth.➢ Post Sale Process is managed. • Quality – Training and Development helps in improving upon the quality of work and work-life. IMPORTANCE OF TRAINING Optimum Utilization of Human Resources – Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals. team spirit. It helps in creating the learning culture within the organization. and peers. The employees get these feelings from leaders. ➢ Backup is taken time to time.

Searching facility is also available.e. which have been conducted during a particular time period. • Image – Training and Development helps in creating a better corporate image. That is. • Health and Safety – Training and Development helps in improving the health and safety of the organization thus preventing obsolescence. In the Training master form. motivation. Training Details The strength of any organization is its manpower. Organization gets more effective decision making and problem solving. • Training and Development aids in organizational development i.goals aligns with organizational goal. Each organization would like to have executives who are well trained so that they can be more productive. so you can find out the total information of a particular training with just one click over there. loyalty. and other aspects that successful workers and managers usually display. 22 . The vehicle manufacturers conduct several trainings so that they can achieve their goals. The details provided here can help the management to find out an efficient person for a special task. • Morale – Training and Development helps in improving the morale of the work force. you can enter the information about the training. It helps in understanding and carrying out organizational policies • Training and Development helps in developing leadership skills. • Profitability – Training and Development leads to improved profitability and more positive attitudes towards profit orientation. how many executives out of the given list have attended the training? With the help of these training details we are generating various MIS reports. We are also maintaining the information regarding the attendance of the executives in a specific training. better attitudes.

and enhance the business value of our associates to sustain our position of leadership and build customer loyalty to MUL” 23 .SALES AND TRAINING DEPARTMENT OF MARUTI UDYOG Vision “Equipping MUL and Dealer Sales Fraternity with the requisite mindset. knowledge and skills.

 To employ training as a tool to achieve customer delight and customer loyalty  Make DSEs as Car Advisors and be a single window interface with the customer The various training Programs are as follows: 24 .  Continuous Feedback and Performance monitoring.Objectives  To ensure multiple knowledge and skill development of DSEs required selling cars and handling competition  Consultative Selling Approach.

(2 Days)This training trains the Sales Executives on the concept of 'Advisor for Life' and helps them become a Single Point Contact with the customer.Program for Dealer sales Executives handling Corporate and Institutional Sales. insurance. Extended warranty. Segment A2.Advisor for life program: In this changed competitive environment the role of Dealer Sales Executive is seen more than a person who is selling cars to the customers. He is expected to be the Customer's ' Car Advisor for life' and make that one-time customer into his 'Customer for life'.e.Aims to provide an understanding of the automobile industry.Product programsImparts complete knowledge on MUL product vis-à-vis competition. MGP. 6. He has to be Single Window Interface with his customers on all matters related to cars i. sales processes etc and enables them to apply learning in actual selling. finance. MUL. (2 Days) 4.Selling Skills/ Consultative Selling Process.Delivery Process : The training program on 'Delivery Process' has been developed as delivery now has the maximum weight age in the new factor structure for SSI. service etc.Enables executives to understand customer needs. The program aims at helping one to build a positive attitude and better interpersonal skills and to enable better customer handling.TRAINING PROCESS For Sales Executives: 1. MGA. Various programs are Segment A1. (2 Days) 7.Induction . Grand Vitara XL 7. (2 Days) 2. Customer care . Segment A3 and Versa. (2 Days) 3. It not only focuses on the processes to be followed for delivery but also makes the DSE realize the importance of a good delivery (delivery is not the end of a sale but a beginning of a relationship) 25 . (3 Days) 5.A positive attitude and the ability to motivate oneself is a pre-requisite for excellent performance in any work area. its policies and products.

enquiry management. staff management.Dealership Management Program: for second-generation dealers.Training process for Sales Managers /General mangers/ Branch Heads 1. different branch heads that manages the day-to-day operations of the outlets manages the other outlets. HR Management. leadership etc).Branch Managers Program: Many of our dealers have multiple outlets. time management. motivation. planning are covered. True Value etc and Car Advisor for life concept. Time management/Prioritizing etc 26 . Maruti Insurance Extended warranty. While the owners sit at any one outlet and control the others from there. Practical Coaching skills. knowledge of Maruti Finance. resource and time management etc). (2 Days) 2. Team Building and Supervision skills. Ability to motivate the team and get a buy in on the business plan.Sales Managers/Team Leaders Program: The Training covers issues like Sales Management (target setting and achievement. Financial Management. The training covers topics like -Making a business plan (for the dealership as a wholeNot only for sales but also for other revenue streams). and GM’s and RO executives on how to manage entire Dealership Operations. Supervisory skills (Performance management. (2 Days) 3. MGA. Fundamentals of DBP. In order to ensure that they run their respective outlets effectively we train them on the various aspects of dealership.

specific needs identified and feedback received 1.Training and Development of dealer Sales Executives Development and Updation of Training Modules The Sales Training Department develops new modules along with training agencies based on market requirements. • Conducting Training Annual Training Calendar is fixed based on: ➢ ➢ ➢ ➢ Number of Sales Executives in the sales network Training path requirement of Sales Executives Review of training programs done in the previous year Market Share/ Market situation/Focus areas and new product launches 27 .

Monitoring and Evaluation of Sales force is done on a continuous basis. ➢ They also should attend ‘ Car Advisor for life Program’ which trains him to be a one point contact with the customers handling all his car related needs like finance. ➢ An Annual Selling Skill Contest is organized to test the selling skills of the sales executives. It also provides two-way communication. Training Path /Norms for all Dealer Sales persons are as follows: ➢ All Dealer Sales Executives need to attend Induction Training before or within a month of joining the dealership (depending on when the program is scheduled in the region) ➢ After Induction then the Sales executives needs to attend a segment B program. 28 . selling skills.It is a forum for effective communication of new ideas and strategies. market etc . he can attend other courses like segment C etc. Pre-tests and post-tests are conducted during training. It is a monthly communication containing articles on various aspects of product knowledge.• • Training conducted regionally based on fixed monthly calendar. insurance. Feedback is taken from participants on trainers and from trainers on participants. MGA etc and how to develop and maintain relationship with customers ➢ After gaining experience. extended warranty. Communication: ➢ Sales Training Department sends monthly Newsletter “Creating Winners” to all DSE’s. 1. Monitoring is also done through tests and audits at the dealerships. It is conducted at regional levels and culminates in an all India level contest.

subordinates It would seem that there is no corporate human resources policy that has not had its share of controversies for being biased. reward schemes etc Maruti adopts `360 degree' appraisal system Employee to be evaluated not just by superiors. A unique ‘Maruti Suzuki Personal Identification Number (MSPIN) is being issued which the DSEs have to remember and use in all communications like Trainings. With an increasing number of qualitative factors 29 . The test checks sales aptitude and reasoning and is a pre. All Sales Executives need to be registered with Maruti after recruitment through extranet. It helps dealers recruit the right profile of people for their dealership.interview shortlist device.Recruitment of Sales Executives: SAT has developed a CD based Test for recruitment as a part of Maruti Recruitment System (MARS). but also by peers. The Regional Office will be involved throughout the implementation of the MARS while recruiting Sales Persons.

Ernst & Young. Although acknowledged as an effective tool for leadership development in the West. One company that has set itself on course to further demonstrating and opening up its employee evaluation process is car market leader Maruti Udyog. And now qualitative factors are not just at play in the services sector. he can compare his self-appraisal with the assessment of his subordinates and peers. their performance was being appraised only by the Directors and the Managing Director. One of the benefits that Maruti is hoping to get out of the 360-degree feedback process is the sense of empowerment and importance felt by subordinates. HR consultants feel that the critical issues in implementing such a system include assuring respondents that their feedback will remain confidential and convincing the person receiving the feedback that this is a development tool and not an appraisal tool. The 360degree feedback system will also include a self-appraisal by the general manager. has listed a set of leadership competencies that are expected in a general manager. Maruti currently has over 4. The company has a committee of general managers. the performance appraisal process to make it as fair as possible has been the dream of every HR manager. Till last year. With cubicles giving way to open offices. At the end of the process. which is consulted on all major HR issues. Performance appraisal 30 . Siddiqui. whose performance will now be assessed based on feedback from their peers and junior management employees within the same department.000 employees on its rolls. but also in manufacturing. asking people to support the online questionnaire process. Mr Jagdish Khattar. Indian companies have been shy of introducing such a feedback system for fear of disturbing traditional hierarchical structures.that affect employees at the workplace. The initiative has been unveiled with an e-mail by Maruti's Managing Director. Maruti has handled this by getting E&Y and other consultants to make detailed presentations to the senior management personnel before the process got under way. but also by his peers and subordinates.Y. when they are asked to offer their feedback about their superiors. in consultation with Maruti. Based on that. the top-down approach to employee performance appraisal is also on its way out. the employee is rated not just by his superiors." says Maruti's Chief General Manager (HR). "We are starting the 360-degree feedback process with employees in the top management such as chief general managers and general managers. Under the 360-degree feedback system. The new system has been co-developed with Ernst & Young and has been put in place recently. starting with its senior leadership. called Human Resource Inter Divisional Committee (HRIDC). it has prepared a questionnaire to which peers and subordinates can respond online. The company has introduced a unique 360-degree feedback system. Mr S.

the aims of a performance appraisal are to: 1) Give feedback on performance to employees. they make it difficult for a manager to provide feedback that can cause positive change in employee performance 2) Trait based systems. because they are vague. etc. cost and time). disciplinary actions. are more easily influenced by office politics. While first accepting that there is probably no system which is close to perfect. Far too often companies find that many employees are left grumbling about “unfairness” and bias. 6) Facilitate communication between employee and administrator. The most popular methods that are being used as performance appraisal process are: 1) Management by objectives 2) 360 degree appraisal 3) Behavioral Observation Scale 4) Behaviorally Anchored Rating Scale Trait based systems. causing them to be less reliable as a source of information on an employee's true performance. subordinates and customers while also performing a self assessment.Performance appraisal. Performance appraisals are regular reviews of employee performance within organizations Generally. At a macro-level. quantity. is a method by which the job performance of an employee is evaluated (generally in terms of quality. also known as employee appraisal. 5) Provide the opportunity for organizational diagnosis and development. The scientific literature on the subject provides evidence that assessing employees on factors such as these should be avoided. 7) Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements. In some companies. This is known as 360° appraisal. let us look at some key criteria that an appraisal system must satisfy. are also commonly used by businesses. which rely on factors such as integrity and conscientiousness. Effective performance appraisal A tricky issue facing most organizations is the carrying out of effective and fair performance appraisal. 4) Form a basis for personnel decisions: salary increases. that is how it affects the individuals. Yes. 3) Document criteria used to allocate organizational rewards. promotions. Performance appraisal is a part of career development. The reasons for this are two-fold: 1) Because trait based systems are by definition based on personality traits. The organization’s aim has to be to put in place a system that actually improves performance. the aim of the performance appraisal from the company’s point of view cannot be to just determine increments or promotions. 31 . peers. employees receive assessments from their manager. A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes. 2) Identify employee training needs. but it cannot be the organization’s aim.

Too often. Subjectivity need not automatically mean bias. and what extra efforts / course correction are required to improve the performance. If a front desk’s performance is to be evaluated on the level of courtesy shown to visitors. but is equally dependent on the company’s financial performance and outlook.Let us now look at the specific criteria for the system. but pointing out problems or giving negative feedback in a one-on-one face-to-face setting and in a calm matter-of-fact manner is not something most managers are comfortable doing. Such feedback is little better than useless as it offers no direction whatsoever to the individual. The individual needs to know what scores he / she is being given and why. Once the criteria are clearly laid out. if the job of the Corporate Communications manager is to ensure that all mass communication about the brands and about the company is effective and in cohesion. but I wouldn’t say excellent” and that they need to try harder. such decisions are veiled in secrecy and there is talk of “normalization” which no one really understands. they should be communicated to her in unambiguous fashion so that she knows what to work towards and how she is going to be evaluated. courtesy. then this cannot be quantified very easily but certain pointers can be got from the number of complaints about discourtesy and general observations about the person’s deportment. It is useful if these goals can be quantified. even before the appraisal year starts. However. There are steps that ensure that subjectivity does not degenerate to bias in the performance appraisal context One such step is periodicity. One of the main reasons why transparency is a casualty in most appraisals is that most managers are not comfortable giving negative feedback. Transparency is again crucial to dispel lingering doubts of bias. This would tell the person whether he / she is going in the right direction. It is useful if some form of appraisal can be done every three months. And this must be done well before appraisal time. Another crucial requirement is transparency. in fact. Maybe it is a cultural issue. This again has to be handled with a certain degree of tact. For instance. This can only be tackled through extensive counseling and this too needs to start well before appraisal time. 32 . For example. For that matter. for instance. most individuals are not comfortable receiving this either. among others. then these should be laid out as her primary performance appraisal criteria. The first step must be to understand clearly what is expected from each employee / position in the organization. one goal for a brand manager could be that his brand must have at least X per cent awareness in the market Making the goals quantitative in nature makes evaluation easier and less subjective. In many companies. Employees also need to be counseled that the amount of increment given is dependent on the appraisal score. people are told something like “your performance has been good. Such non-quantifiable measures will involve a certain amount of subjectivity. it is not a good idea to get caught up in making all goals quantitative. It is a fact of life that not all things can be measured or quantified. and therefore less susceptible to suspicions of “unfairness”.

5) Having different recruitment process for different departments of the organization. 33 .Effective performance appraisal clearly needs a lot more than the few points outlined here. but attention given to these points will go a long way indeed. 3) They make new recruits aware about the company and working pattern of the company. FINDINGS 1) They treat all the employees equally 2) They tries there best to increase the efficiency of the employees by providing them different motivation programs. 4) They focus on each and every department of the organization.

34 . selection. training. CONCLUSION While preparing this project report i learnt many concepts of “Human resource management” like recruitment. 8) They adopts 360 degree method of performance appraisal for there employees. 7) They take feedback from there employees on regular basis. motivation. I have done this project with reference to MARUTI UDYOG LIMITED & i find out that many facts while working on this project which has added a valuable experience in my life. etc.6) They provide different types of training to the different departments according to the need of the people.

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The second big challenge is to bring in the best HR practices. As the head of HR in the country's largest automaker. obviously they are strong in their career aspirations. where talent management and retention comes in. at Maruti. SY Siddiqui on a host of HR related issues. Special emphasis has also been placed on training. APPENDICES Young people today do have high expectations. The company believes it is worthwhile being in a position. We. Understanding their aspirations and blending that with the company's aspirations. on whom our future is going to depend. envious of the corporate world outside and its employees in high demand. How do you address that? They are competent and very confident. apart from initiatives that are being taken to make young recruits understand the philosophy. So. where people are in fact. today's younger crowd 36 . where we are acceptable to a dynamic global business scenario. what are your main challenges? For us there are two to three key areas. constitutes this challenge. culture and best practices within the company. are very clear that we need to have a proper balance of global and local best practices. One of the biggest is to bring about a change. rather than merely having high retention levels. What earlier was a benchmark of say 15-20 years. while being attuned to local requirements.THE STATEMENTS MADE BY CHIEF GENERAL MANAGER OF MARUTI UDYOG LIMITED IN THE NEWS Maruti Udyog. India's largest carmaker has been making key investments in several human resource initiatives. They are very strong in terms of career aspirations. The third big challenge is about the young people. policies and systems from the global perspectives. The company is currently working on a five-year peopleoriented strategy. We spoke to Chief General Manager (Human Resources Development).

A three-year-old employee in the company will be a buddy to a new employee for the first three months. We do several things to make them feel special. may be 10 years. the induction phase is the most critical. these are big challenges. and not the owner. which is expanding rapidly and has been in the leadership position for over two decades. who can guide them on matters related to their progress. gymnasium and should be close to the factory. We even pick them up from railway stations or airports. That is the first touch. After the completion of three months. We are consciously aware of such a change. The buddy will always be a link between us and the boys for the first three months. including food. The mentor has to prepare the youngster to settle into an executive role in Maruti. Is this system helping you improve your retention level? I am not looking at everything to give a statistical result. We began this initiative three years ago and the feedback has been very good.wants to achieve in. There will be very senior people to receive them at these places. This is a relationship that is built on confidence and a way that signifies that we care. How do you do it in Maruti? It is not a single factor theory. Is this buddy system unique to Maruti? How did this evolve? Yes. In our case. They will be put up in a hostel for a year supported by the company. most people find it difficult to find a place to stay. I am looking at building relationships and establishing a bond between employees and this more than just typical 37 . from wherever they are coming in. doctor. Internet. They should have all the facilities. this is unique to Maruti. the Managing Director of the company throws a welcome dinner party for the new recruits. Even the security will be managed by us. One most important things we do when we do on campus recruit is to make sure we offer a relationship. It evolved from the feedback we have been receiving for the past 4-5 years from the youngsters. phone. For Maruti. Third. it also acts as a tremendous confidence booster for young people. a senior person of the level of a functional head becomes the mentor for three to four youngsters. They are very aggressive and patience is almost irrelevant to them. The other important initiative is that of a buddy and a mentor. While it gives them an opportunity to interact with the MD. It is a kind of policy perspective on which a whole lot of initiatives have come into play. one has to keep them happy and engaged. Secondly. You will have competent and confident people and as a company.

we have professional enablers in place and have relationships with engineering colleges. led by our MD look at the qualitative aspects of our inputs rather than quantitative. post-training feedback is important. We also have a cross-functional team of young managers. ITIs and external environment. we took a decision to establish a worldclass Maruti training centre in two years' time. How do you normally go about recruiting them? At the moment. In many corporations. Youngsters are mostly unsure of a lot of things . There will also be a slight preference for those from Haryana. So. an e-learning facility and will look at perspectives of developing our own technician level guys for which campus recruitment can take place. Recently. One is. in order to strengthen internal communications. We will have a residential facility.numbers. We have a senior level HR consulting group and a junior level HR consulting group. workers in the first three to six months tend to be the highest casualties. Instead of making the Human Resources department the sole policy maker. This centre will have a kind of infrastructure for a central umbrella for training but will operate in a decentralized manner. We have a training budget. The number of man-days is not important.like all typical youngsters. Moreover. What is Maruti's training philosophy? We see to investment in both our business and people.and are often need help to take the correct decisions. for example. Has there ever been an issue with finding the right quality of people? No. We are clear in our minds that this is helping retention. who come to say how that particular policy can be put in perspective. good MBA institutes. which stands at about Rs 12 crores today. We also participate in various kinds of activities they organize in their institutes. This might come up at the Manesar facility on a 6-8 acre plot. We at Maruti. We also have initiatives for employees who have spent two to three years in the company. We also give preference to people who may have worked with us temporarily in the past three years or may have done their apprenticeship with us. Policies are formulated based on the interactions with these two groups and we try to give shape to a policy that can impact lives. The idea has been conceptually cleared and we are in the final phase of planning. People orientation has got top priority in the past seven years or so. 38 . we are going to different ITIs. They stand to gain a slight preference over fresh ITI graduates. we have never faced such a situation. We have tremendous support coming from corporate communications. we involve ourselves into relationship building all through the year. but quality of training is more important. we have decentralized HR into different people forums.

Earlier. out of which 5-6 would be juniors. This is done through an online process to maintain confidentiality. They come with fresh minds and they are given fresh projects. After six months. On the other hand. lack of interest and in fact. we used to put all fresh recruits in the shop floor. the person may leave the organization. Have you recruited from the two ITIs you adopted in January? The first group will be maturing in July this year where our semi-contribution can be seen. Each senior person gets a sample feedback from a group of 12-14 people. This could lead to de-motivation. 5-6 colleagues and 2-3 their superiors. out of the 100 or so we recruit every year. We have a 360 degree feedback exercise. young recruits are never put in the shop floor straightaway to handle production and workers because this is a job they would be least fit to do with their level of maturity. to the people who manage them. Structured designs emerge. Would this be done in-house? For the first year. they would be fit to do technical related work because they would have just come out of engineering colleges. After that. This routing process was professionally thought about after several years of experiments. We adopted these changes in 2005. Have you taken initiatives from Suzuki of Japan and adapted them for India? We used to get graduate engineers and place them in various functional divisions as per the manpower requirement of that particular functional division. We have looked at a temporary change in the layout of machines and equipment in 39 . The plan is to have a workshop where we give them the methods to initiate self-development action. We can start doing it ourselves once the system mature. we have picked up Ernst & Young to do it for us. profiles would emerge.Can you describe any specific initiative you are taking this year? One initiative is to empower young people in terms of free and frank feedback to their seniors. The person also evaluates himself. These are on defined leadership competencies. they assess the guy and then decide where he is best suited to work. The worst feedback used to come from those 28-30 year old guys. However. They also suggested a routing as to how a person is put into an area first and then gradually inducted into other areas. there would be aggregate profiles versus self-profiles. there was a gap in the expectations of the young guy as to where he wanted to be placed. There has to be a feeling of confidentiality. At Suzuki Japan. Based on this.

There are meetings where I. Feedback can be drawn from such meetings and worked accordingly. We manage two ITIs at Gurgaon and Rohtak.two managed by us directly and the other two by our JV partners Jay Bharat Maruti and Sona Koyo. culture and other factors. it will have a backdrop of the social ethos. What is the attrition rate at Maruti today? We are currently experiencing an attrition rate of 9. Our first complete contribution will be realised in July 2008.5 percent. We are poles apart in that sense. A new course curriculum has already been put in place. We have hired them to run the ITIs for us. A lot of expensive machineries in these ITIs have been left unused for many years and have been pressed into use now.5 percent. The moment I talk of people perspectives. experience. A senior person each is heading the management councils at both the Gurgaon and Rohtak ITIs. In the young population. 40 . and his stay in the company. as against the industry (manufacturing sector) rate of 19. A centre for excellence model can be seen in July 2008 in all the four ITIs. There is another very powerful initiative we have started called 'Tea with MD'. One good complement for us here is that Suzuki is very keen on understanding the changes that have been brought into Maruti in the last 6-7 years. which is addressed by the MD. which is about 22 percent in the industry. who manage these ITI. when all our initiatives will be out in place. However. there are formal channels of internal communication like newsletters or quarterly communication meetings. talk to people.four of them. These young employees constitute about 30 percent of the total workforce. They are the consultants. It is an open forum for all. They call it the model ITI. as the head of HR. ore specifically on the leadership and HR fronts. The NTTF is an excellent agency down south in Bangalore. Has Suzuki picked up any HR initiative from Maruti? Not really. We are two very distinct countries. whatever we do is quite global in HR perspective. Suzuki is trying to open up very fast. Is there any other initiative you plan this year? When we talk of connect with people. Young here means in terms of age. we are touching 12 percent. A small group of 18-20 people interact with the managing director over some tea and cookies. This is a monthly exercise and selection is random. In that sense.

and not based on gender. sales. PROJECT VISTAAR RELATED WITH SELECTION AND ORIENTATION Maruti has been the market leader in the passenger car segment for the past several years and has been reaping the benefits of being the single player in Indian Passenger Car Industry. we have taken a call in the HR consulting group that recruitments will be made based on competencies and attitudes. We have made it very clear in our presentations to all educational institutes that if a girl is willing to make a career with us. It was a judicious mix in the JV relationship. Lastly. and engineering. especially in the shop floor. We go to engineering colleges that are specifically for girls. We are not keeping a tab on numbers. sales and HR were with the locals. provided she is found competent. Similarly. The market size also had been increasing 41 . We broke that barrier consciously four years ago. we recruit based on professional competencies. Over the last four years. not with us. what is Maruti's policy on employing women? There were jobs in the automotive industry that were historically considered tough for women. marketing. we will provide her that with that opportunity.Is there a Suzuki culture today? How will you define it? The Suzuki culture has been a tremendous gain for Maruti for the last 25 years. Contributions from both the partners were used to the optimum levels. facets of marketing. This situation also led to having good margins in the product sale and full capacity utilization of the plant facilities. The typical capabilities were with Suzuki Japan.

indicated that Maruti captures a limited portion of the vehicle life cycle spend towards only sale of car. in order to maintain its supremacy in the passenger car market and to increase its revenues and profits. Kearney. is undergoing severe pressures on bottom lines. Maruti engaged M/s A. • • • • Auto Finance Insurance Distribution Corporate Leasing and Fleet Management Pre-owned Cars Business BIBLIOGRAPHY 1} Aswahthappa 2}VSP RAO 42 .T.continuously with two digit percentage growths. This is the typical scenario globally also. with a potential to capture another almost equivalent portion. and margins and hence the profits from manufacturing activity alone are under severe pressure. with the Competition coming in. and with the passenger car market itself not increasing in size. which could be developed as natural spin off from its core business of manufacturing. wherein mature markets like USA and Japan the manufacturing business. A number of business options were generated and examined. However. It would also strengthen its brand image as a provider of complete mobility solution for its customers. on a stand-alone business.T. Maruti decided to venture into new service oriented businesses. It found that global auto majors successfully tap this potential in different ways in various markets. Preliminary analysis by A. with support from Maruti. In this kind of a background. To develop this idea. leading to selection four potential businesses for Maruti to venture into viz. Maruti’s market share. Kearney as consultants (Phase I).

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