Maruti Suzuki Violence Case Study

Group-4
Ashish Kumar Yadav
Divya Sadashivpet
Deepanshu Yadav
Nikita Chakrawarti
Pramathesh Pandey
Lavanya Sinha
Maruti Suzuki India Limited

● MSIL, a subsidy of Suzuki Motor Corporation, Japan was

established in 1981
● It established two plants in Gurugram and Manesar, Haryana
India
● It was the first company in India to mass produce and sell more
than a million cars
● It offers 14 brands and over 150 variants ranging from Maruti Alto
to Brezza
What Happened

● On July 2012, One of the worst Labour incident occurred

with one person being killed and several injured.
● MSIL called for a lock out and no labour was paid for the
lock out period
● Over 90 workers were arrested and around 500 workers
were dismissed accused of participating in violence
● During Labour strike and disputes, MSIL lost 75 crs in
revenue, 8 crs in profit by production halt of 1200-1400
units on daily basis.
Why It Happened
Purpose Company decided to increase production. Hence adopted
aggressive policies

Ownership Management decided to adopt regressive policies even when

those were harmful to the workers

Community Management dismissed many workers for not adhering to the

strict, rigorous policies

Effective Many companies’ traditions are followed unquestioned by the

Communication employees. But transparency for Union election was absent.

Leadership Management decisions showed poor leadership quality led to

the horrifying incident
What could have been done:

Strategy MSIL’s Strategy should align with company’s mission and employees’ welfare

Structure Hierarchical structure of MSIL could be transparent for unbiased and clear
communication of the agendas

Systems Primary & Secondary activities of the organisation could be defined properly to avoid
conflict

Shared Values Collective value system that represents MSIL’s standard and norms, attitudes & belief if
aligned could’ve led to the smooth transitioning of increased production plans.

Style Transitioning style could’ve been subtle keeping employees’ capabilities to cope in
mind

Staff Additional staff could have been hired to match the workforce demand for increased
production plans

Skills Employees could’ve been trained prior to the changed & applied policies to smoothen
the transition.
How to resolve the conflicts:
Collaborating After identifying the raised conflicts by employees’ and labour’s
side, management can try to find the middle ground and take
immediate actions to show concern.

Accommodating For the company as big as MSIL, preserving the relationship

with the labours is the greater concern than continuing the
changed aggressive policies.

Compromising When the strike costed the company around INR 75 crs
revenue, management could’ve compromised and reverted the
policies & plan till proper planning and skilled manpower
arrangement.
Thank You