HUMAN RESOURCE MANAGEMENT

Project Report

On

HRM Practices

Of 

“MARUTI SUZUKI”

SUBMITTED TO: Submitted By: Section J

Mrs. Pragya Sonawane Akshay Seth

Arvind Singh

Ankit Kumar

Dharam Raj Gautam

Dinesh Kumar

Pankaj

Lokesh Kumar

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 IILM INSTITUTE FOR HIGHER EDUCATION

Content

 Introduction to a company
 Report on HRM practices followed by MARUTI SUZUKI
 Conclusion
 Bibliography

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INTRODUCTION

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a
subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car
market for over two and a half decades. The company has two manufacturing facilities
located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a
combined capability to produce over a 1.2 million (1,200,000) passenger car units annually.

The company plans to expand its manufacturing capacity to 1.75 million by 2013. For this
the company will be investing around Rs. 60 Billion (Rs 6,000 Crores) over the period till
2013.

The company offers a wide range of cars across different segments. It offers 14 brands and
over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto,
Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans
SX4 and Swift DZire In an environment friendly initiative, in August 2010 Maruti Suzuki
introduced factory fitted CNG option on 5 models across vehicle segments. These include

Maruti Suzuki has employee strength over 7,600 (as at end March 2010),
In 2009-10, the company sold a record 10,18,365 vehicles including 1,47,575 units of 
exports. With this, at the end of March 2010, Maruti Suzuki had a market share of 53.3 per
cent of the Indian passenger car market (including C segment).

Maruti Suzuki's revenue has grown consistently over the years. (Rs. in Million)

Year Net Sales Year Net Sales

2004-05 1,09,108 2005-06 1,20,034

2006-07 1,45,922 2007-08 1,78,603
2008-09 2,03,583 2009-10 3,01,198

The company is listed on Bombay Stock Exchange and National Stock Exchange.

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On 11th January 2011, we visited MARUTI to meet Mr. S.K. Bhatia, The Assistant Manager
of (HRD Dept) MARUTI, Gurgoan Branch. During the meeting with him we asked questions
related to HR practices followed in the company. On interviewing him we asked a question
related to the HR skills, HR planning, recruitment and selection, job description, interview
process and types, training, orientation and induction process, performance appraisals, and
assessment criteria.

The questions with responses are as follows:

What are the proficiencies (skills) should a HR manager have in the according to you?

The four proficiencies are

 Understanding of Business
 Understanding skills required for Business
 HR competence- Subject Knowledge
 Manager should be people centric i.e.; he should be employee champion

Sources of recruitment:

The different sources of recruiting the candidate or selecting the candidate for the firm are:

 Consultants i.e.; with the help of consultancy company

 Employee referral
 Databank i.e.; Company database
 Job portal response
 Through advertisement on the company website i.e.; direct application
 Campus recruitment

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Interviews:

There are basically three types of interview:

 CBIT
 Critical Event Incident/Behavior/Critical Incident Technique: This is most important
type of interview the company took before recruiting the candidate to check their
behavior by giving them a challenging situation related to real life scenario. So that
they check the problem solving ability of a candidate.
CIT: The Critical Incident Technique (or CIT) is a set of procedures used for collecting
direct observations of human behavior that have critical significance and meet
methodically defined criteria. These observations are then kept track of as incidents,
which are then used to solve practical problems and develop broad psychological
principles. A critical incident can be described as one that makes a significant
contribution—either positively or negatively—to an activity or phenomenon.
CIT identifies possible sources of serious user-system or product difficulties. The
recommendations for improvement try to eliminate the potential for the same
situation to result in similar loss. However only actual use demonstrating that the
product no longer induces the problem ensures that it is currently safe.
 Assessment Centre: There is assessment sheet the company follows to check the
performance of their employee during the tenure they spend in the company. The
assessment sheet is same for all the employee of all the departments in a firm.

Orientation and induction program

Orientation: means procedure for providing full information about the company’s
background to the new employee.

In MARUTI, the new candidates first go through the orientation program where the trainer
makes the candidate familiar with the environment and culture of the company.

Induction: means getting the new candidate acquainted with the job he/she has to perform
in the organization.

Induction program should include:

a) Introduction to important staff (not just a quick hello but sufficient time to get
acquainted and understand their job role)

b) Tour of the building, pointing out fire exits, bathrooms, meeting rooms, boardrooms,
useful offices such as IT support staff, administration staff etc. Don't forget to show them
where to find office stationery and the position of photocopiers / faxes.

c) Health and safety training as necessary dependent on job role; may include items such as
manual handling and where to find the health and safety notice board.

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d) How to complete day to day tasks and where to find the necessary folders / files.

In MARUTI, the orientation process followed by an induction process. First the orientation
took place at the different offices of MARUTI, and then the new employee is transfer to
their respective departments where the induction process took place. In which the
employee gets acquainted with the job he/she has to perform while he/she is working for
the organization, with the working environment, people of all departments, health and
safety training, laws and policies, assessment criteria, appraisal criteria.

Training process

Training is the most important process for the organization. It depicts the hallmark of good
management and the ability of a manager to give training to the new as well as current
employee.

Training means the process of teaching new employee the basic skills they need to perform
their job.

According to HR manager of MARUTI, The Company gives two type of training to their
employee:

 Technical Training
 Behavior Training

Technical Training: In MARUTI, this training comprises of the subject knowledge related to
the job assigned to new candidate. In technical training the candidate is trained with
advanced technology, new method to achieve their target with in a time period.

Behavior Training: In this training the employees are given a situation under which they
have to project their behavior; how efficiently they can work in a given situation. This
training checks the how the new employee works in a team by assigning them to play
different roles. The role may be of a team player, team leader, or understanding the
function of business i.e. vision to achieve.

Performance Appraisal:

Meeting with the HR manager, we did not come out with the performance appraisal system
but the person through whom we were able to contact the HR manager, is an employee in
the organization in the administrative department provided us with the information that
appraisal system in MARUTI is very slow so the rewards and recognition are delayed on the
continuous basis which effect the working of organization.

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Analysis OF HRM Practices for MARUTI

We got to know the HRM practices followed by company, where we went through a series
of question with HR manager, from point of Job Description to recruitment to training and
development of an employee in the organization. HR manager emphasized on the
requirements that the HR manager should have in it to efficiently manage the organization
with the certain proficiencies. But one aspect that MARUTI overlooked was that an
employee of the organization should have right attitude towards the vision and objectives
of the organization and also the employee of an organization are satisfied with their roles
and position of responsibility in the organization. We find that the recruitment process of 
the organization is comparatively has a parity. Organization follow the same procedures
from screening to selection. In MARUTI recruitment process begins from by preparing the
MANPOWER budgeting by CEO, GM-HR and HOD of the company at the end of financial
year. The concerned department manager request for the MANPOWER approval form from
the GM-HR of the company. If this form approves then this form is transferred to the
Recruitment manager where sourcing of CV’s is done. After that shortlisted candidate is call
for the interview and screening process. There are three interview rounds took place
Functional Interview Round, JAF, and last HR interview where selected candidate from two
round negotiate on salary with HR manager.

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Conclusion:

Finding we made out analyzing Maruti, was that there was proper policies, processes and
procedures that was a part of HRM practices mentioned by HR department and was
implemented quite effectively in all the levels of hierarchy in organization. This proper and
effective implementation of policies enabled the company to effectively manage all the priority
functions of organization. The effective policies enabled the positioning of the right person for
right job and aided the personnel of the company to bring it among the leading automotive
industries of India, which holds the major chunk of Indian market.

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Bibliography:

 http://www.marutisuzuki.com/
 Interview with Assistant Manager-HR Mr. S.K. Bhatia of MARUTI
 MARUTI SUZUKI Annual Report 2008-2009