"Human Resource Management IN Maruti Udhyog Limited": A Minor Project Report On
"Human Resource Management IN Maruti Udhyog Limited": A Minor Project Report On
"Human Resource Management IN Maruti Udhyog Limited": A Minor Project Report On
on
Submitted by:
GAGAN MUNJAL
Enrolment No.03790101813
BBA(B&I) III Semester
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STUDENT DECLARATION
GAGAN MUNJAL
03709101813
Signature of student
Place: New Delhi
Date:
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CERTIFICATE
This work has been done in partial fulfillment of the requirement for the award of the degree of
BBA from Fairfield Institute of Management and Technology, GGSIPU and has not been
submitted anywhere in any other university for the award of any degree.
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Acknowledgement
It is pleasure to acknowledge many people who knowingly and unwittingly helped me, to
complete my project. First of all let me praise god for all the blessings, which carried me through
all those years.
First & foremost, I would like to express my regards to Ms. Nisha Chahal for her constant
encouragement and support. I would also like to express my immense gratitude towards all the
lecturers of our college for providing the invaluable knowledge, guidance, encouragement
extended during the completion of this project.
I extend my sincere gratitude to all my teachers and guide who made unforgettable contribution.
Due to their sincere efforts I was able to excel in the work entrusted upon me.
Last but not the least; I am grateful to my parents, my sister, my brother, my friends and all well-
wishers for their moral support and encouragement during the entire period of time.
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TABLE OF CONTENTS
CHAPTER1: INTRODUCTION
1.1 INTRODUCTION OF HRM
1.2 OBJECTIVE OF THE STUDY
1.3 RESEARCH METHODOLOGY
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CHAPTER4: INTRODUCTION TO STRATEGIC HUMAN
RESOURCE MANAGEMENT
4.1 MEANING OF STRATEGY
4.2 MEANING OF STRATEGIC MANAGEMENT
4.3 DEFINITION
4.4 STEPS
4.5 IMPORTANCE AND BENEFITS OF STRATEGIC MANAGEMENT
4.6 ROLE OF HRM IN STRATEGIC MANAGEMENT
REFERENCES
ANNEXURES
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CHAPTER-1
INTRODUCTION
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INTRODUCTION
management.
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RESEARCH METHODOLOGY
Market research is often needed to ensure that we produce what customers really want and not
what we think they want. Research methodology is a way to systematically solve the research
problem. I may be understood as a science of how research is done scientifically understand it be
study the various steps that are generally adopted by a researcher in study his research problem
along with the logic behind them. It is necessary for the researcher to know not only the research
methods or technique but also research methodology. It refers to a search for knowledge.
Research is thus an original contribution to the existing stock of knowledge making for its
advancement. It is the pursue of truth with the help of study.
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DATA COLLECTION
Data is information in the form of numerical figures. Data obtained in the original form is called
raw data.
Primary Data
It involves collecting data from its origin. Primary data is the first hand information collected by
the marketer. This method of data collection is expensive and time consuming.
Secondary Data
It involves using information that have already put together. When we collect information
through published sources, it is known as secondary data collection.
In my project primary as well as secondary data is being used. Mainly the data used in my
project is secondary data.
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RESEARCH DESIGN
It is used in rigid which involves specific guidelines to reach the financial result data is collecting
on specific parameter.
TYPES OF RESEARCH
There are three types of research
Descriptive
Explanatory
Exploratory
Descriptive research
A form of conclusion research that aims to describe a product or market or identify associations
among variables. As the name suggests, descriptive research is concerned with describing market
characteristics and/or marketing mix characteristics. This type of study can involve the
description of the extent of association between variables.
Explanatory research
It is research in which each and everything is well explained. A style of research in which the
primary goal is to understand the nature or mechanism of the relationship between the
independent and dependent variable.
Exploratory research
This research is conducted into an issue or problem where there are few or no earlier studies to
refer. The focus is on gaining insights and familarity for later investigation. Here data is often
quantitative and statistics applied. It is used to identify and obtain information on a particular
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problem or issue. Finally, casual or predictive research seeks to explain what is happening in a
particular situation.
CHAPTER-2
COMPANY’S PROFILE
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INTRODUCTION OF MARUTI UDYOG LIMITED
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 Eeco, Alto, Estilo,
Wagon R and Sx4.In fiscal 2009-10 Maruti Suzuki became the only Indian company to
manufacture and sell One Million cars in a year. 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.
Maruti Suzuki's revenue has grown consistently over the years.
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
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The company is listed on Bombay Stock Exchange and National Stock Exchange.
The Government of Japan has honored Maruti Suzuki with the METI Award for promotion of
Japanese brand in India. Maruti Suzuki is one of the six companies, as also one among two
outside Japan, to have received this prestigious award.
Organization structure
Quick Facts
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NSE - Code: MARUTI
Bloomberg: MUL@IN
Reuters: MRTI.BO
Joint Venture With Suzuki Motor Company, now Suzuki Motor Corporation, of
Japan in October 1982.
Registered & Corporate Office 11th Floor, Jeevan Prakash
25, Kasturba Gandhi Marg
New Delhi - 110001, India
Tel.: +(91)-(11)-23316831 (10 lines)
Fax: +(91)-(11)-23318754, 23713575
Telex: 031-65029 MUL IN
Works Palam Gurgaon Road
Gurgaon -122015
Haryana, India
Tel.: +(91)-(124)-2340341-5, 2341341-5
Website http://www.marutiudyog.com/
Products Brands
Four Wheelers Maruti 800 Maruti Alto Maruti Baleno
Maruti Esteem Maruti Grand Vitara XL-7 Maruti Gypsy King
Maruti Omni Maruti Suzuki SX4 Maruti Swift
Maruti Versa Maruti Vitara Maruti Wagon-R
Maruti Zen
2005 Number one in JD Power SSI for the second consecutive year.
Number one in JD Power CSI for the sixth time in a row - the only car to
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win it so many times.
M800, WagonR and Swift topped their segments in the TNS Total
Customer Satisfaction Study Leadership in the JD Power Initial Quality
Study - Alto number one in its segment for the 2nd time in a row, Esteem
CEO
number one in its segment for the 3rd year in a row, Swift number one in
the premium compact segment.
WagonR and Esteem top their segments in the JD Power APEAL study.
GM(Sales)
TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study
(#1 in Auto sector)-Feb 05.
Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC
HR- Manager
(2nd time in a row)-Feb
Manager
05.
Manager Manager Manager
mgnr MI Accessor DSA Sales- Corporate
Mudra &Call First Indian car manufacturer
Sales- to reach
Bharat 5 million vehicles
Sales-sales.
ies-
Mehra Centre Sunil Salwan
AamiBusiness World ranks Maruti among top five most respected companies
Arora
r M.
in India-Oct 04.
Khan
Vineeof the year by CNBC.
Voted Manufacturer
teSales) te Sales)
ta
Manager
Loan
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Support staff: Drivers,Peons
etc. Manager
Auto
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CHAPTER-3
CONCEPTUAL OVERVIEW OF
HUMAN RESOURCE
MANAGEMENT
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Meaning of HRM
HRM is a management function that helps organisation to recruit, select, train, develop and
manage its members. Simply stated, HRM is all about management of people in the organisation
from Recruitment to Retirement. HRM refers to set of programs, functions, and activities
designed and carried out in order to maximise both employee as well as organisational
effectiveness.
OBJECTIVES OF HRM
Societal Objectives: To be responsive to the needs and challenges of the society while
minimizing the negative impact, if any, of such demands upon the organization.
SCOPE OF HRM
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Following are the areas of operation of HRM:
1. Human Resource Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee and Executive Remuneration
10. Motivation
11. Communication
12. Welfare
13. Safety & Health
14. Industrial Relations
ROLE OF HRM
1. Advisory Role: HRM advises management on the solutions to any problems affecting people,
personnel policies and procedures.
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2. Functional Role: The personnel function formulates personnel policies in accordance with the
company’s doctrine and management guidelines. It provides guidance to managers to help them
ensure that agreed policies are implemented.
3. Service Role: Personnel function provides personnel services. These services constitute the
main activities carried out by personnel department, like payroll, disciplinary actions, etc, and
involve the implementation of the policies and procedures described above.
ROLE OF HR MANAGERS
1. Humanitarian Role:Reminding moral and ethical obligations to employees.
3. Mediator:Playing the role of a peacemaker during disputes, conflicts between individuals and
groups or management.
4. Spokesman:To represent the company in Media and other forums because he has better overall
picture of his company’s operations.
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OBJECTIVES V/s FUNCTIONS OF HRM
HRM Objectives Supporting HRM Functions
Social Objectives (3) (a) Legal Compliance
(b) Benefits
(c) Union Management
Relations
Organizational Objectives (7) (a) Human Resource Planning
(b) Employee Relations
(c) Recruitment & Selection
(d) Training & Development
(e) Performance Appraisals
(f) Placement & Orientation
(g) Employee Assessment
Functional Objectives (3) (a) Performance Appraisals
(b) Placement & Orientation
(c) Employee Assessment
Personal Objectives (5) (a) Training & Development
(b) Performance Appraisals
(c) Placement & Orientation
(d) Compensation
(e) Employee Assessment
2. Organizing: Organizing manpower for the achievement of organizational goals and objectives.
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4. Directing:Issuance of orders and instructions, providing guidance and motivation to managers and
employees.
The job of HRM department in India has never been so challenging. Last decade has witnessed tectonic
shift in Job market. From being an employer’s market, it has suddenly turned into employee’s market,
especially in the most crucial segment, ie middle management. Globalisation and India’s growing stature
in the world has seen demand for Indian managers soaring. From the state of plenty, there is a stage of
scarcity of the right talent. The biggest challenge is to retain the talent one has so assiduously hunted and
trained. The attrition rate has reached alarming proportions. It has reached such proportions that certain
segments of Industry are maintaining bench strengths to fill in the sudden gaps due to resignations. In
addition, there are following new issues:
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1. Globalization: Growing internationalization of business and workforce has its impact on HRM
in terms of problems of unfamiliar laws, languages, practices, attitudes, management styles, work ethics
and more. HR managers have a challenge to deal with more and more heterogeneous functions and more
involvement in employee’s personal life.
3. New Organizational Forms: Exposure to international business and practices have led to
change in the organisational structure and HR policies of the local companies. Take for instance, the
hierarchical structure of Indian companies. Suddenly, Indian companies have begun to adopt flat
hierarchical management structure. But to implement and grout such fundamental changes in
management philosophy of any company is never easy. The challenge for HRM is to cope with the
implications of these new relations in place of well established hierarchical relationships that existed
within the organizations for ages in the past.
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6. New Industrial Relations Approach: In the changed industrial climate, even trade
unions have realised that strikes and militancy have lost their relevance and not many workers are willing
to join them and disrupt work. However, the problems faced by workforce now have different dimension
for the management. They manifest in the form of increased attrition rate. Unsatisfied employees instead
of approaching the management for resolution, often take up the new job. The challenge before the HRM
is find ways and means to feel the pulse of employees and address the issues on proactive basis.
7. Renewed People Focus :“Man behind the machine is most important than the machine”. This
is an old doctrine of the Armed Forces. However, this doctrine has begun to gain acceptance in the
corporate world and thus all out efforts to grab the best talent at what ever cost.
8. Managing the Managers: Managing the managers is most difficult. Armed with inside
information, they can not be lured with rosy promises. They are in great demand too with growth in
economy. These are the people who are most mobile, attrition rate being highest for the junior and middle
management level. The challenge of HRM is how to manage this tribe?
9. Weaker Section’s Interests: Another challenge for HRM is to protect the interest of
weaker sections of society. The dramatic increase of women workers, minorities and other backward
communities in the workforce, coupled with weakening of trade unions, has resulted in the need for
organizations to re-examine their policies, practices and values. In the name of global competition,
productivity and quality, the interests of the society around should not be sacrificed. It is a challenge of
today’s HR managers to see that these weaker sections are neither denied their rightful jobs nor are
discriminated while in service.
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RECRUITMENT
MEANING OF RECRUITMENT
It is the process of searching the potential candidate and offers him or her the job. It is positive in nature
in the Indian context.
Process of identifying and hiring best-qualified candidate (from within or outside of an organization) for a
job vacancy, in a most timely and costeffective manner.
DEFINITION:
“Recruitment is the process of finding and attracting capable applicants for a job to create a pool from
which selection is to be made of the most suitable candidates”.
The Process begins when new recruits are sought and ends when their applications are submitted. Though
theoretically recruitment process is said to end with the receipt of applications, in practice, the activity
extends to the screening of applications so as to eliminate those who are not qualified for the job. The
result is a pool of applicants from which selections for new employees are made.”
3. Help increase success rate of selection process by reducing number of under-qualified or over-
qualified applications.
External Factors:
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1. Demand and Supply status of specific skills set.
5. Company’s Image
Internal Factors:
3. Size of the Organization (Bigger the size lesser the recruitment problems)
4. Cost
RECRUITMENT PROCESS
1. Recruitment Strategy Development
(ii) Advertisements
(vi) Consultants
(vii) Contractors
(c) Competitors
2. Recruitment Planning
3. Searching
(b) Selling
4. Screening of Applications
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(a) Salary Cost
INTERNAL RECRUITMENT
Advantages Disadvantages
1. Less Costly 1. Old concept of doing things
2. Candidates already oriented towards 2. It abets raiding
organization 3. Candidates current work may be
3. Organizations have better knowledge affected
about internal candidates 4. Politics play greater roles
4. Employee morale and motivation is 5. Morale problem for those not
enhanced promoted.
EXTERNAL RECRUITMENT
Advantages Disadvantages
1. Benefits of new skills, talents and Ideas 1. Better morale and motivation
2. Benefits of new experiences associated with internal recruiting is
3. Compliance with reservation policy denied
becomes easy 2. It is costly method
4. Scope for resentment, jealousies, and 3. Chances of creeping in false positive
heartburn are avoided. and false negative errors
4. Adjustment of new employees takes
longer time.
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EVALUATION OF RECRUITMENT PROCESS
4. Recruitment Cost
6. Image projection
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The dealership should release an advertisement.
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RECRUITMENT OF SALES EXECUTIVES:
SAT has developed a CD based Test for recruitment as a part of Maruti Recruitment System (MARS).
The test checks sales aptitude and reasoning and is a pre- interview shortlist device. It helps dealers
recruit the right profile of people for their dealership. The Regional Office will be involved throughout
the implementation of the MARS while recruiting Sales Persons. All Sales Executives need to be
registered with Maruti after recruitment through extranet. A unique ‘Maruti Suzuki Personal
Identification Number (MSPIN) is being issued which the DSEs have to remember and use in all
communications like Trainings, reward schemes etc
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SELECTION
MEANING OF SELECTION
It is the process of searching the potential candidate. It is negative in nature in the Indian context. But it is
positive in the US context.
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1) Preliminary Interview (screening applications)
Initial screening is done to weed out totally undesirable/unqualified candidates at the outset. It is
essentially a sorting process in which prospective candidates are given the necessary information about
the nature of the job and the organization,at the same time, the necessary information is also elicited from
the candidates about their education, skills, experience, salary expected and the like. It helps to
determine whether it is worthwhile for a candidate to fill up the application form.
2) Application Form
Application form is a traditional and widely used device for collecting information from candidates.
It should provide all the information relevant to selection, where reference for caste, religion, birth place,
may be avoided as it may be regarded an evidence of discrimination.
3) Selection Test
Psychological tests are being increasingly used in employee selection, where a test may involve some
aspect of an individual’s attitudes, behaviour and performance.Tests are useful when the number of
applicants is large, 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.
4) Employment Interview
Interview is an essential element of selection and no selection procedure is complete without one or more
personal interviews, where the information collected through application letter or application forms
and tests can be cross-checked in the interview, where candidates demonstrates their capabilities and
strength in relevant to their academic credentials. selection in interview serves three purposes:
a) obtaining information about the background, education, training, work history and interests of
candidate
b) giving information to candidates about the company, the specific job and human resource policies; and
c) establishing a friendly relationship between the employer and the candidate so as to motivate the
successful applicant to work for the organization.
However, in practice interview becomes a one-sided affair serving only the first purpose.
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5) Reference Checks
The applicant is asked to mention in his application form, the names and addresses of two or more
persons who know him well. These may be his previous employers, heads of education institutions or
public figures. These people are requested to provide their frank opinion about the candidate without
incurring any liability. In government and public sector organizations, candidates are generally required
to route their applications through their present employers, if any. The opinion of referees can be useful
in judging the future behavior and performance of candidate, but is not advisable to rely exclusively on
the referees because they are generally biased in favor of the candidate.
Most candidates are employed at the time of their application, and do not wish their employers to know
they are looking elsewhere.
6) Selection Decision
After obtaining all the information, selection decision is made. The final decision has to be made out of
applicants who have been identified as suitable. The views of line managers carry much weight at this
stage because it is they who are eventually responsible for the performance of the new employee.
Considering the job climate, often more than required number is selected to cater for any selected
candidate withdrawing at the job offer stage.
7) 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. Such examination serves the
following purposes:-
a) It determines whether the candidate is physically fit to perform the job, where those who are
physically unfit are rejected.
b) It reveals existing disabilitie and provides a record of the employee’s health at the time of selection.
This record will help in settling company’s liability under the workmen compensation Act for claim for
any injury.
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c) It prevents the employment of people suffering from contagious diseases.
d) It identifies candidates who are otherwise suitable but require
specific jobs due to physical handicaps and allergies.
8) Job Offer
The next step in selection process is job offer to those applicants who have successfully passed all tests. It
is made by way of letter of appointment.
9) Contract of Employment
After the job offer is made and candidates accept the offer, certain documents are needed to be executed
by the employer and the candidate. A formal contract of employment, containing written contractual
terms of employment etc are signed by both sides.
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BARRIERS TO EFFECTIVE SELECTION
1. Perception: We all perceive the world differently. Our limited perceptual ability is obviously a
stumbling block to the objective and rational assessment of people.
2. Fairness: Barriers of fairness includes discrimination against religion, region, caste, race or
gender, etc.
3. Plethora of Human Traits: Success in any job is more a function of attitude than aptitude.
The tests are validated over a period of time to differentiate between the employees who can
perform well and those who will not. Yet, no test can claim 100% success in finding the right
employee.
5. Time and Cost: Often the time and funds available to undertake selection process are limited
forcing the selectors to forego certain tests.
Training and development, though are spoken in the same breadth, are quite different. Training generally
refers to teaching of new skill in professional field of the employee. Like an employee being taught to
operate another machine, or to perform a new operation in the same machine. Development refers to
enhancement of personal qualities of the employee which do not have a one to one relationship with his
current job. It may be to help an employee to grow. Like stress management techniques, yoga lessons,
meditation exercises, soft skills training, etc. While training is expected to reward the company
immediately in terms of better productivity of employee, Development does not lead to any immediate
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and tangible benefits to the company. At the best, there might be some intangible benefits in the long run,
like improved motivation, loyalty, improved intra-departmental relations, reduced absenteeism on
medical ground, etc.
Dividing line between training and development is expectation of immediate benefits. Thus, in case a
program, generally qualifying as development program, is directly related to employee’s job skills, like
Communication Skills course for telephone attendant or receptionist, will qualify as training and not as
development. Same program for some one in back office would be termed as Development program.
“Training & Developmentis any attempt to improve current or future employee performance by
improving his performance capabilities and potential through learning, usually by changing the
employee’s attitude or increasing his or her skills and knowledge.”
The need for Training and Development is determined by the employee’s performance deficiency,
computed as follows:
Self-starters
Committed
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Motivated
Result oriented
Sensitive to environment
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2. Greater stability, flexibility and capacity for growth in an organization
Training and Development aids in organizational development i.e. Organization gets more effective
decision making and problem solving. It helps in understanding and carrying out organizational policies
Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and
other aspects that successful workers and managers usually display.
1. Performance Appraisals
2. Interviews
3. Questionnaires
4. Attitude Surveys
6. Work Sampling
7. Rating Scales
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4. Efficiency Indices
5. Exit Interviews
7. Quality Circles
2. Trainers Perception Gaps can be reduced between employees and their supervisors
3. Trainers can design course inputs closer to the specific needs of the participants
METHODS OF TRAINING
On the Job Trainings (OJT):When an employee learns the job in actual working site in real life
situation, and not simulated environment, it is called OJT. Employee learns while working. Take the
instance of roadside mechanics. Small boys working there as helpers learn while helping the head
mechanic. They do not learn the defect analysis and engine repairing skills in any classroom on engine
models.
1. Job Rotation:Job rotation involves assigning employees to various jobs, so that they
acquire a wide base of knowledge and skills.
2. Job Coaching: An experienced employee can give a verbal presentation to explain the
nitty-gritty’s of the job.
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3. Job Instruction:It may consist of an instruction or directions to perform a particular
task or a function. It may be in the form of orders or steps to perform a task.
4. Apprenticeships: Generally fresh graduates are put under the experienced employee to
learn the functions of job.
Off the Job Training:Trainings conducted in simulated environments, classrooms, seminars, etc are
called Off the Job Training.
1. Classroom Lectures:Advantage– It can be used for large groups. Cost per trainee is
2. Audio-Visual:It can be done using Films, Televisions, Video, and Presentations etc.
3. Simulation: Creating a real life situation for decision-making and understanding the actual
job conditions give it. Ensures active participation of all trainees. Can be very effective but
needs good conductors.
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by instructor with all the pros and cons of each option. It is an ideal method to promote
decision-making abilities within the constraints of limited data.
5. Role Plays: Here trainees assume the part of the specific personalities in a case study and
enact it in front of the audience. It is more emotional orientation and improves
interpersonal relationships. Attitudinal change is another result. These are generally used
in MDP.
6. Sensitivity Trainings: This is more from the point of view of behavioural assessment as
to how an individual will conduct himself and behave towards others under different
circumstances. There is no pre-planned agenda and it is instant. Advantages – increased
ability to empathize, listening skills, openness, tolerance, and conflict resolution skills.
Disadvantage– Participants may resort to their old habits after the training.
TRAINING IN MARUTI
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Maruti arranges the training at several intervals. The training is mandatory for all the employees. The
training schedule of all employees is maintained by the HR manager.
EDP
In the EDP Department following are managed:
Post Sale Process is managed.
Sales Analysis is done.
Backup is taken time to time.
Training Details
The strength of any organization is its manpower. Each organization would like to have executives who
are well trained so that they can be more productive. The vehicle manufacturers conduct several trainings
so that they can achieve their goals. In the Training master form, you can enter the information about the
training, which have been conducted during a particular time period. We are also maintaining the
information regarding the attendance of the executives in a specific training. That is, 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. The details provided here can help the management to find out an
efficient person for a special task. Searching facility is also available, so you can find out the total
information of a particular training with just one click over there.
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SALES AND TRAINING DEPARTMENT OF MARUTI UDYOG
Vision
“Equipping MUL and Dealer Sales Fraternity with the requisite mindset, knowledge and skills, and
enhance the business value of our associates to sustain our position of leadership and build customer
loyalty to MUL”
Objectives
To ensure multiple knowledge and skill development of DSEs required selling cars and handling
competition
Consultative Selling Approach.
Continuous Feedback and Performance monitoring.
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
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1) Induction - Aims to provide an understanding of the automobile industry, MUL, its policies and
products. (2 Days).
2) Product programs - Imparts complete knowledge on MUL product vis-à-vis competition. Various
programs are Segment A1, Segment A2, Segment A3 and Versa, Grand Vitara XL 7. (2 Days)
4) Customer care -A positive attitude and the ability to motivate oneself is a pre-requisite for
excellent performance in any work area. The program aims at helping one to build a positive
attitude and better interpersonal skills and to enable better customer handling. (3 Days)
5) 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'.
He has to be Single Window Interface with his customers on all matters related to cars i.e.
finance, insurance, Extended warranty, MGP, MGA, service etc. (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.
Sales.(2 Days)
7) 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. 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)
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TRAINING PROCESS for Sales Managers /General mangers/ Branch Heads
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The training covers topics like -Making a business plan (for the dealership as a whole- Not only for sales
but also for other revenue streams), Fundamentals of DBP, HR Management, Team Building and
Supervision skills, Ability to motivate the team and get a buy in on the business plan, Time
management/Prioritizing etc
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Development and Updation of Training Modules
The Sales Training Department develops new modules along with training agencies based on market
requirements, specific needs identified and feedback received.
1. Conducting Training
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.
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, insurance, extended
warranty, MGA etc and how to develop and maintain relationship with customers
After gaining experience, he can attend other courses like segment C etc.
Monitoring and Evaluation of Sales force is done on a continuous basis. Pre-tests and post-tests are
conducted during training. Feedback is taken from participants on trainers and from trainers on
participants. Monitoring is also done through tests and audits at the dealerships.
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3. Communication:
Sales Training Department sends monthly Newsletter “Creating Winners” to all DSE’s. It is a
monthly communication containing articles on various aspects of product knowledge, selling
skills, market etc .It is a forum for effective communication of new ideas and strategies. It also
provides two-way communication.
An Annual Selling Skill Contest is organized to test the selling skills of the sales executives. It
is conducted at regional levels and culminates in an all India level contest.
HR IN MUL
HR VISION
Lead and Facilitate continuous change towards organizational excellence ; create a learning and vibrant
organization with high sense of pride amongst its members.
HR INITIATIVES
• Prepare MUL Strategic Business Plan-2000-2003; To achieve the Vision & Goal
• Improve the performance Appraisal system - it’s process, skill & usage
• Introduce a Potential Appraisal System
• Improvements in internal & external Training & it’s effective utilization. Training need
identification
• Systematic career planning ; Job Rotation ; Empowerment; Job enrichment
• Periodic communication meeting at various level; Roll out of Vision
• Raise cost consciousness for cost control and reduction
• Exposure on Brand Strategy to all non- marketing staff
• Retention of Talent
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MATTER USUALLY DISCUSSED IN THE MARUTI INDUCTION
• Role of financing as a sales tool and the various financing options available
• Overview of the selling process and how to uncover needs of a customer to do need based selling.
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CHAPTER-4
MARUTI ADOPTS ‘360 DEGREE’
APPRAISAL SYSTEM
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Maruti adopts `360 degree' appraisal system
It would seem that there is no corporate human resources policy that has not had its share of
controversies for being biased. With an increasing number of qualitative factors that affect
employees at the workplace, the performance appraisal process to make it as fair as possible has
been the dream of every HR manager.
And now qualitative factors are not just at play in the services sector, but also in manufacturing.
With cubicles giving way to open offices, the top-down approach to employee performance
appraisal is also on its way out.
One company that has set itself on course to further demonstrating and opening up its employee
evaluation process is car market leader Maruti Udyog.
The company has introduced a unique 360-degree feedback system, starting with its senior
leadership. The new system has been co-developed with Ernst & Young and has been put in place
recently.
Under the 360-degree feedback system, the employee is rated not just by his superiors, but also
by his peers and subordinates.
"We are starting the 360-degree feedback process with employees in the top management such as
chief general managers and general managers, whose performance will now be assessed based on
feedback from their peers and junior management employees within the same department. Till
last year, their performance was being appraised only by the Directors and the Managing
Director," says Maruti's Chief General Manager (HR), Mr S.Y. Siddiqui.
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Ernst & Young, in consultation with Maruti, has listed a set of leadership competencies that are
expected in a general manager. Based on that, it has prepared a questionnaire to which peers and
subordinates can respond online.
Although acknowledged as an effective tool for leadership development in the West, Indian
companies have been shy of introducing such a feedback system for fear of disturbing traditional
hierarchical structures.
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. 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. The company has a committee of general managers,
called Human Resource Inter Divisional Committee (HRIDC), which is consulted on all major
HR issues.
The initiative has been unveiled with an e-mail by Maruti's Managing Director, Mr Jagdish
Khattar, asking people to support the online questionnaire process. The 360-degree feedback
system will also include a self-appraisal by the general manager. At the end of the process, he can
compare his self-appraisal with the assessment of his subordinates and peers.
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, when they are asked to offer their
feedback about their superiors. Maruti currently has over 4,000 employees on its rolls.
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CHAPTER-6
DATA ANALYSIS
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QUESTIONNAIRE DESIGN/ FORMULATION
Questions being used in questionnaires are both open ended and close ended questions
.
SAMPLE DESIGN
Sample element/ Sample unit :- Our sample consists of HR department employees of
Maruti Udyog Limited.
Sample Extent: - MUL, Gurgaon.
Time Frame: - 20 Days
Sampling Technique:- Convenience and judgmental sampling.
Sample Size : - 10 employees of MUL. Gurgaon.
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DATA ANALYSIS AND INTERPRETATION
Interpretation
“YES”, company is going for outsourcing.
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Q2. Does company conduct “EXIT INTERVIEW”?
Interpretation
“YES”, company conduct “ EXIT INTERVIEW”.
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Q3. Is it necessary to have work experience from a manufacturing company for applying to MUL?
Interpretation
“YES”, it is necessary to have work experience from a manufacturing company for applying to MUL.
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Q4. Which type of test is conducted in MUL?
Interpretation
Most of the time “Intelligence test” is conducted in MUL.
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Q5. What type of culture does MUL follow?
Interpretation
MUL follows “Informal” culture.
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Q6. What type of organizational structure does company follow?
Interpretation
The company follows “DIVISIONAL” type of organizational structure.
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Q7. Is company going for “Job Rotation”?
Interpretation
“YES”, company is going for “Job Rotation”.
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Q8. What type of communication channel does company follow?
Interpretation
The company follows “Horizontal” type of communication channel.
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Q9. Does MUL adopt “Participative Management Style”?
Interpretation
“YES”, MUL adopts “Participative Management Style”.
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Q10. Are you agree or disagree with the following:
“MUL introduced a “360 Degree Feedback System” starting with its senior leadership”.
Interpretation
Most of the employees “AGREE” with this statement.
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CONCLUSION
While preparing this project report we learnt many concepts of “HUMAN RESOURCE
MANAGEMENT” like-Recruitment,Selection,Training,Motivation etc.
We have done this project with reference to MARUTI UDYOG LIMITED and we find that many facts
while working on this project which has added a valuable experience in my life.
Some of the valuable facts and experiences are as follows:
MUL is also going for “OUTSOURCING”.
Co. also conduct “EXIT INTERVIEWS” at the time when any employee is leaving the
organization. In this he is free to say anything what he/she feels like about the organization and its
members.
It is necessary to have work experience from a Manufacturing Firm for applying to MUL.
Most of the times co. go for “INTELLIGENCE TEST”.
MUL follows “FORMAL” culture in the organization.
Co. is also going for Job-Rotation and Job- Enrichment.
Co. follows “DIVISIONAL” type of organizational structure.
It follows “HORIZONTAL” type of communication channel.
MUL adopts “PARTICIPATIVE MANAGEMENT STYLE”.
Most of the employees are satisfied with the the “360 degree Feedback System”.
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LIMITATIONS OF THE RESEARCH
It was my 1st research project so due to curiosity , I put my whole heart on his project. But still there were
certain limitation while doing the research work which are as follows.
Less availability of time limit
It is related to limitation of time constraint. Personal visit to each and every department is more time
consuming to collect the data. Some time employees didn’t allowed me to meet them and to share
anything as it was against the company policy.
In India many people hesitate to share the information which makes huge problem for researchers.
Some time there is communication problem, lack of knowledge about the product etc. is the major
reason.
All the information related to customer feedback are kept confidential as name of the person, place,
address cannot be communicated / shared with public still people didn’t not cooperated with us as
they thought that we are fraud. Officers denied to share the statistic of the company
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RECOMMENDATION
I had done this research with full enthusiasm and had learned many things. This research helps me to
know about various policies which are used by the MARUTI UDYOG COMPANY to increase their sales
performance. It is good to get the knowledge about it.
But through our research we had concluded that the company is giving only 1-5 months training to the
employers before selecting them for the job. But we think that they should give atleast 6 months training
to the employees so that they easily coop up with their jobs.
The company follows the exit interviews before the employee leaves the job; it is the better way to
improve the various problems occurring in the company. But the company should conduct the interviews
where the employers can discuss their problems and the problem of leaving the job will not occur.So time
to time interviews with employees is also a necessity.
The company should give freedom to employees to form the informal groups, it can help the company to
know about the thinking of the employees easily through rumors. The company should give promotion to
employees, it can help in increasing their morale.
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References
1.) Ghosh, Ajit Kumar, “Managing Human Resources Strategic Approach To Win”, 2005, First
Edition.
2.) Ghosh, Biswanath, “Human Resource Development and Management”, Vikash Publishing
House,2005,Fourth Edition.
3.) Bhatia, S.K., “Training And Development Concepts And Practices”, Deep And Deep Publishing
House,2005,First Edition.
4.) http://www.slideshare.net/hemanthcrpatna/study-on-hr-policies-of-maruti-udyog-limited
5.) http://www.scribd.com/doc/13491431/PROJECT-ON-HRM-STRATEGIES-OF-MARUTI-
UDYOG-LIMITED
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