The Automobile Industry In India Commerce Essay

The car industry in India is one of the largest car industries in the universe where Maruti Suzuki India Limited is the largest prima rider vehicle maker company in India. Maruti Suzuki India Limited is entirely responsible for conveying automotive revolution in India the Company offers a comprehensive assortment of autos get downing from entry degree autos, voguish hatchbacks, saloons to athleticss public-service corporation vehicle.

Through this study, we have analyzed the human resource direction research in regard of Maruti Suzuki India Limited to understand the organisational construction & A ; it ‘s working manner. Besides by implementing strategic human resource direction we have analyzed the three major human resource related issues:

Industrial Relations between assorted subdivisions of industry is an of import facet of concern. There should be proper understanding among assorted subdivision i.e. top direction, director and labourers. Besides supplying proper rewards, inducements & A ; working & A ; living conditions is necessary. Since origin Maruti Suzuki India Limited was confronting industrial relation jobs, ensuing into labour work stoppage & A ; lock outs of the production works for demanding addition in their rewards, inducements doing arrest of production. Forming a affable relationship & A ; developing a peaceable working environment between direction & A ; workforce through common apprehension is really of import for any industry.

Workplace Diversity means making a workplace that respects people from different dramatis personae, race, faith, topographic point, age, gender & A ; their on the job manner. In today ‘s globalised universe, every company is nearing towards workplace diverseness as globalisation needs interaction between people from different state, different civilization & A ; different belief. Maruti Suzuki India Limited faced the job of workplace diverseness as all the higher degree stations were allotted to the Nipponese people, due to which there was no proper co-ordination between the employees of the company. Maruti Suzuki India Limited practiced incorrect workplace diverseness. Workplace Diversity means engaging people from subdivisions of the society & A ; non merely one subdivision.

Motivation means the willingness to exercise high degree of attempt towards organisational ends, conditioned by the attempt ‘s ability to fulfill some single demand. Companies can actuate their employees to execute good through assorted motive techniques like inducements, fillip, wages & A ; acknowledgment. Maruti Suzuki India Limited & A ; its employees faced motive related issues such as security grounds, payment issue, stress degree & A ; alteration of direction. These issues can be solved by assorted methods such as recreational issues, positive support & A ; motivational workshops. Through these findings, we have come over with our recommendations that will assist the company to get the better of the issues & A ; work more efficaciously in future. The assignment is divided into three parts & A ; they are: Introduction about Maruti Suzuki India Limited, Situational analysis & A ; recommendations & A ; the decision.

1. Introduction

Brief History

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Introduced in 1983 with the Maruti 800, Maruti Suzuki is one of the taking four- Wheeler car manufacturer makers in South-Asia. It was the first company in India for the mass production and to sell more than a million autos. Maruti Udyog was renamed as Maruti Suzuki India limited on 17th September, 2007. Maruti was a joint venture between the authorities of India and Suzuki Motor Corporation, Japan. Maruti ‘s doctrine is to Reduce, Recycle and Reuse its Plants, so that there is a minimum use of natural resources. The company central office is in Gurgaon and Haryana.

The company has produced a broad scope of autos with assorted theoretical accounts. It has offered 14 trade names over 150 discrepancies. Besides the company has produced 5 million vehicles. The vehicles are widely sold in India and several other states where the orders are placed. The company exports more than 50,000 autos per twelvemonth. Maruti 800 were launched in 1983 and were in the market boulder clay 2004. Hence in the Indian market, the term ” Maruti ” is normally used to mention to this compact auto theoretical account.

R.C.Bhargava was the initial pull offing manager of the company. Till today, he is regarded as the instrument for the success of the company and presently holds the place of president in Maruti Suzuki. However from 2007, Mr. Shinzi Nakanishi has been appointed as the pull offing manager every bit good as CEO of the company.

Maruti operates at about all the classs and hence had different rivals at different sections. Besides Maruti Suzuki limited has captured overall portion of 46 % in the Indian auto market. But after 18 old ages from its launching, Maruti faced a consuming market portion and decreased net incomes. This was due to its internal convulsion and the alterations in the external environment. After this autumn the company redesigned their schemes and learned a batch from their parent company Suzuki. This organisational acquisition was reasonably successful. And after this, the company besides increased focal point on seller direction.

Maruti Suzuki has introduced the new engineering called the superior 16*4 Hypertech engines across the full Maruti Suzuki scope. Due to this, the proprietor gets the ideal combination of power and public presentation from his auto. The other invention has been the debut of Electronic Power Steering ( EPS ) in selective theoretical accounts. This has been resulted in better and greater manoeuvrability. In other words, our autos have become even more enjoyable to drive. At one halt store, Maruti Suzuki is set to supply a single-window solution for all the auto related demands.


To supply a broad scope of modern, high quality fuel efficient vehicles in both domestic and export markets, in order to fulfill the demands of assorted clients.


To be an international competitory company in footings of merchandises and services.

And to retain the leading in India and should draw a bead on to be among the planetary participants.


Adapting themselves to quick environmental alterations.

Lending to the value and satisfaction to the client.

Aligning all our employees, providers and traders to confront competition.

Maximise the value of stockholder ‘s.

Bing a responsible citizen in the corporate universe.

Human Resource Management in Maruti Suzuki India

Human Resource Management is a procedure of pull offing human resource to better the efficiency of the person every bit good the organisation as a whole. “ Planning, forming, directing & A ; commanding of the procurance, development, compensation, integrating, care & A ; separation of human resource to the terminal that single, organisational & A ; societal aims are accomplished. ” Edwin Flippo.

Like every company, human resource direction plays an of import function in Maruti Suzuki India limited. Maruti Suzuki is clearly an “ employer of pick ” for automotives applied scientists & A ; immature directors across India. The vision of Human Resource Management is to “ Lead & A ; Facilitate uninterrupted alteration towards organisation excellence ; make a acquisition & A ; vivacious organisation with high sense of pride amongst its members. ” Human Resource pays particular attending on strategic concern program to accomplish its concern aim & A ; vision. It identifies the employees that need developing & A ; consequently plans the proficient & A ; behavior preparation. There are meetings held for all degrees sporadically to get the better of the communicating spread between the assorted managerial degrees. To guarantee the involvement of the employee, the human resource direction provides occupation rotary motion so that their occupation does non sound humdrum. It besides empowers the employees with governments, occupation enrichment & A ; systematic calling planning.

Human Resource Management in Maruti Suzuki India Limited follows the Nipponese Management doctrine of squad spirit. They have common uniform, common canteen, forenoon meetings, forenoon exercisings, easy & A ; speedy communicating & A ; determination devising where there are no managerial degrees.

Recruitment & A ; Selection plays an of import function in Human Resource Management of every company. Recruitment can be internal every bit good as external. Internal enlisting includes occupation poster, skills stock list & A ; referrals whereas External enlisting includes enlisting through advertizement, through school & A ; college campus & A ; with the aid of assorted private & A ; public employment bureaus. Human Resource Department of Maruti Suzuki India Limited uses a mixture of assorted enlisting techniques. It uses occupation posting method, mention from employees, advertizement for occupation vacancies. It besides appoints assorted private & A ; public employment bureaus for naming the employees. Maruti Suzuki India Limited recruits fresh persons from concern schools & A ; colleges by carry oning the interviews in the campus & A ; provides them the chance to work & amp ; earn.

After the Manesar works misdemeanor on July 18,2012 which led to breakdown of the works, Maruti Suzuki has authorized its directors & A ; supervisors to enroll new employees as a portion of their new human resource policy for constructing assurance between direction & A ; workers for re-starting the operations at Manesar works.Currently the company is holding 9100 employees. However the company had 3300 workers at Manesar works, where 1528 were lasting & A ; the staying were on contractual footing from which the company has terminated 500 workers.

Although the company has applied assorted different techniques & A ; methods to accomplish success in HR, but still there are certain jobs such as Cultural Diversity, Security issues after the Manesar works force and de-motivation of staff.

2. Situation Analysis and Recommendations

2.1 Industrial Relations

2.1.1 Situation Analysis

In this epoch of globalisation and stiff competition to raise productiveness to a higher degree it is necessary to extinguish work stoppage or lock outs by supplying sensible rewards, populating conditions and benefits. The above can be achieved by developing common apprehension between all subdivisions of industry i.e. top direction, director and labourers to safeguard the involvement of both labourers and direction.

Since its origin in 1983, Maruti Udyog limited so and now Maruti Suzuki had faced few hurdlings in the signifier of labour work stoppage in 2000 where employees went on an indefinite work stoppage to demand addition in rewards, inducements among other things. Maruti was privatized in 2002 with Suzuki being major stockholder and since so industrial dealingss in the company has been handled reasonably ill which resulted in multiple work stoppages during this period of 10 old ages. All snake pit broke free on July 18th when the General Manager of Maruti Suzuki was burned alive and the works damaged by the agitated labourers.

This resulted in the lockout of the production works for more than a month, though some refer this job as a riot issue but the root of the job is still hapless industrial or labour dealingss.

Number of past issues exist among workers and direction which is a sought of constriction for the growing of company, the issues includes-

In a state with monolithic unemployment, lasting employment in taking auto fabrication industry is desirable for many but Maruti employs a big figure of contract laborers who does n’t bask same benefits as lasting employees and are anti against direction for the really same ground or in their words unfairness.

Besides there was a struggle one time sing the genuineness of Manesar Plant Trade Union between trade brotherhood and direction when direction declined to handle the association as registered association

The traditional attack of direction being followed which is more of responsive in nature as compared to proactive for illustration increasing rewards after work stoppage i.e. loss in production which could hold been avoided if direction had negotiated and paid attending to the affair at an early phase.

Issues like contract worker acquiring really less salary as compared to permanent employees have been a beginning of displeasure among the laborers

2.1.2 Recommendations for Industrial Relations

The chief aim of Industrial Relations is to organize a affable relationship between direction and work force through common apprehension between them and besides to develop peaceable environment necessity for increasing the productiveness of workers and in turn productiveness of the works.

Good Industrial Relations is non merely good for direction but for work force every bit good as affable dealingss mean that labours are good paid and satisfied working in the company which might actuate them to work more expeditiously. Hence to implement better industrial dealingss in the company it is of import to stress on following factors-

Engagement of workers in management-Using work commissions, joint audiences and other methods promoting the engagement of workers in the direction of the industrial unit. The productiveness and effectivity will increase by the improved communications between workers and direction

Adhere to understandings -The direction should stay by the clause mentioned in the understanding and implement it. The understanding should non be merely enforced in missive merely but in spirit besides.Both parties i.e. trade brotherhood and direction should keep their terminal of trades and follow the understanding to the niche. This creates an environment of apprehension and trust which is fruitful and productive for both work force and direction.

Role of Government: A The authorities plays an active function in keeping industrial peace. It should beef up labour Torahs and intervene when the two parties in this instance trade brotherhood and direction ca n’t decide their issue. Government is besides responsible for registering brotherhoods and it should be seen that there is no 2nd trade brotherhood in same industrial unit but a jurisprudence should be passed doing compulsory acknowledgment of a trade brotherhood in each industrial unit.

From reactive to proactive- Management should follow more strategic attack of managing human resource and alternatively of being reactive in nature i.e. when work stoppage will happen so raise rewards should be proactive i.e. take action beforehand. Besides a public presentation inducement system can be introduced to reshape their organisation behaviour.

2.2 Workplace Diversity

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“ Diverseness is defined as the human qualities that are different from our ain and those of groups to which we belong ; but that are manifested in other persons and groups. Spectrum of diverseness includes but is non limited to: age, ethnicity, gender, physical abilities / qualities, race, sexual orientation, educational background, geographic location, income, matrimonial position, military experience, parental position, spiritual beliefs, work experience, and occupation categorization. ”

Diversity, in the construct of workplace agencies making a workplace that respects and includes differences, acknowledging the alone accomplishments and part of the person can do that maximizes the potency of all employees. Besides diverseness focuses on broader set of qualities than race and gender. Diversity besides highlights the long term end of an organisation that the work force should by and large reflect the population of the organisation it serves an all its dimensions.

2.2.1 Situation Analysis

Since globalisation is the overpowering tendency now yearss, houses have more attack towards the workplace diverseness to spread out their custodies on planetary footing. This globalisation requires more interaction among people from different civilizations, of different beliefs, and backgrounds. People no longer unrecorded and work in a lone market place, but are now a portion universe ‘s economic system with competition coming from about every part of work. For this ground, organisations need diverseness to go more originative and unfastened to alter. But on other manus workplace diverseness has become an of import issue for direction today.

Recently Maruti Suzuki besides experienced a perturbation in the harmoniousness of the works at Manesar due to unqualified direction sing workers. It resulted in force at the works wounding many workers and decease of HR executive. Violence sparked due to a battle between a supervisor and a worker belonging to scheduled caste with expiration of the worker without look intoing and saving the supervisor. All sort of grounds were attributed by direction and media for the force get downing with naxalites involvement, political intervention, more international engagement, etc. Due to the improper channel of direction there has been many instance before which lead to the instability of the company. In 2011, 3 work stoppages were carried out by the workers of Maruti Suzuki for the fulfilment of their demands. After the Nipponese coup d’etat of Maruti Suzuki Limited the higher direction stations are allotted to Nipponese subjects as in such they were non speedy in determination devising which led to old work stoppages.

Hiring people from all subdivisions of the society brings diverseness for concern but Maruti Suzuki Limited patterns diverseness in incorrect ways. Even though it hires people from all subdivisions of the society the limit lines can be seen.A People here belonging to take down societal strata of society and upper rural group are hired at worker degree, wherein managerial degree is occupied by urban elite from New Delhi. This sort of misplaced diverseness has failed in advancing understanding between directors and workers. It is of import to observe that organisational cloth can non be strengthened without cognizing the socio-cultural undertones among persons and groups.

2.2.2 Recommendations for Workplace Diversity

Here the penetration of the old incidents in Maruti Suzuki makes it hard to implement the recommendations and accommodate the result of Diversity Management. Some of the recommendations which will convey positive positions on nucleus concern issues and chances are as follows.

Include one and Everyone -Irrespective of power, place and station each and every employee of the organisations should be considered tantamount in the shadows of Diversity. In instance of Maruti Suzuki beyond the race and gender the diverseness should stress on the alone endowments, experience and cognition accomplishments which add up to the client services, choice merchandise development, gross revenues and other nucleus concern issues.

Equal Employment Opportunities-The Diversity direction focuses on engaging and advancing representatives from certain groups of people who have been denied entryway and chances in the workplace. In Maruti Suzuki the major employee on worker degrees are on contractual footing. Hence either the contractual employees should be reduced or they should be made lasting employees.

Seek Committedness from All Levels of the Organization-Human Resources section of Maruti Suzuki should promote committedness from their top direction before get downing a diverseness recommendation. Apart from the fiscal part leaders should be the function theoretical accounts. Engagement of representatives of different hierarchy degree of organisation should be involved in planning, execution and rating of diverseness attempts. Besides directors should be clear about the diverseness initiatives which they will implement. As a fact the diverseness initiatives communicates the functions and duties of leaders and besides helps the leaders in accomplishing the diverse work force and client base.

Education and Training on Diversity- Along with the preparations for leading and employee dealingss, diverseness preparation should besides be included. Leadership preparation should include larning to make environment that promote adhering between employees, prevent favoritism and torment. Similarly, employee plans should concentrate developing accomplishments to heighten quality work dealingss and client service with a broad scope of people. Training besides needs to concentrate on accomplishments instead than merely consciousness and should include experiential exercisings that are affecting, relevant, practical and gratifying.

Use Resources- As in whole ; there are several internal and external resources that may assist direction in understanding the influence of diverseness on concern aims. These resources serve as information bases, sounding boards and designers to assist companies find their ain diverseness enterprise ‘s schemes, way and ends.

2.3 Motivation

Motivation derived from the word ‘motive ‘ agencies demands, wants or desires thrusts within the person. Motivation is a procedure by which people are encouraged to accomplish their ends which vary from individual to individual. Herzberg through his Two Factor Theory ( content theory ” of motive ” ) found that the factors doing occupation satisfaction ( and presumptively motive ) were different from that doing occupation dissatisfaction. He called the satisfiers incentives and the Dis satisfier ‘s hygiene factors.

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Beginning: Research worker

Basically there are two distinguishable human demands

Physiological Needs are needs that can be satisfied with money e.g. to buy nutrient, shelter

The Psychological Need is demands that money ca n’t purchase like acquisition and turning in a peculiar field.

If we have a nice auto, it ‘s of no usage if it does n’t hold the power of a great engine behind it. We can name our Employees as our engines to organisation and without employees it is hard to run maps swimmingly and efficaciously same in the instance of auto. Employee motive is straight depend upon concern net incomes. The more motivated employees are the better consequence they yield.

2.3.1 Situation Analysis

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Payment Issue-If payment of Upper direction is increasing and workers payment is at the same place this will widen the spread. Same instance is go oning with Maruti Suzuki. Permanent workers at Manesar works were gaining Rs.17, 000-Rs.18, 000p.m and contract labourers were gaining Rs.7000 a month, despite making the same work. . Low rewards and misdirection in the organisation was responsible for constructing up the choler among the Manesar Plant workers.

Security Reasons-Few months back the struggle began in the Maruti Suzuki. Workers Union stood up for a worker who has been suspended by a company executive. That functionary was attacked by workers and they injured him severely. No Safety was given by higher direction to any executive. It is really hard to work under such state of affairs, Police has arrested a figure of workers of the Manesar works under the charges of slaying and attempted slaying, because of this lower direction degree was demotivated. There should be some regulations and ordinances in the works. it is located on the outskirts of Delhi, is expected to follow an unheralded codification of subject, which was non so in the instance of Manesar works.

Stress Level-In present epoch runing fabrication unit requires tonss of forbearance, manpower & A ; fiscal stableness. Costss and rewards have increased and gross revenues are hapless & A ; volatile. Every company is making research to happen out ways to convey down costs and better productiveness. At Maruti ‘s Manesar mill, 40 % workers are on contract footing and their wage is half of the regular workers. All this has been converted enormous force per unit area to better production and net incomes at all degrees.

Change of direction: -Two major alterations happened in Maruti Suzuki since 2007. Shinzo Nakanishi, the current MD of Maruti Suzuki, took over the reins from Jagdish Khattar. RC Bhargava, who was a manager, was made president. There was internal struggle between Maruti and Suzuki, because for the both companies Indian Market is of import. it has an Indian president Mr. Bhargava who is 78 old ages old. It does hold many senior Indian executives who have been ‘lifers ‘ at Maruti, but the Nipponese voice counts and frequently tends to rule important determinations. Culture factor is the chief issue among them.

2.3.2 Recommendations to increase Motivation:

1. Positive Reinforcement-Positive support is fundamentally applause or honoring an person on his accomplishment. Organization can utilize positive support theory to actuate employees for their public presentations. When behaviour of one employee goes in positive manner, other employees will follow him doubtless. It helps in increasing production and net income. For illustration If ‘X ‘ employee finish his undertaking within given clip frame and his work is appreciated by direction in forepart of their colleagues. This is traveling to be positive support for all the workers, because it non merely actuate ‘X ‘ employee but it besides motivates people around him who desires to have congratulations from direction. Appropriate support policy should be adopted by the direction of Maruti Suzuki.

2. Recreational Activities-Work and concern preparation chiefly focused on regulations, theory & A ; construction it develops merely left side of encephalon. Whereas motive, assurance, empathy, soft accomplishments which are more needful in today ‘s competitory universe is tend to utilize right side of the encephalon. Using games & A ; out-of-door activities such as rappelling, stone mounting etc. it fundamentally creates new chances for them to accomplish something, experience winning & A ; personal development. The function playing games is really effectual for motivational and visual image technique. This is the really effectual and simple manner to actuate the workers.

3. Motivational Workshops-These sorts of workshops combine preparation, self-development, motivational talk & A ; planning. Main motivation of these workshops is to increase engagement & A ; engagement of workers. It besides helps to better communicating between two sections & A ; besides helps to interrupt down barriers between upper direction and lower direction. Maruti Suzuki should take motivational workshops for their employees to understand their jobs and to do good usage of their work force.

Problems Maruti Suzuki India might confront in implementing aforesaid recommendations

The recommendations for industrial dealingss can merely be successful via effectual communicating which in instance of Maruti Suzuki Limited is a major issue, complete and right information is seldom passed from upper to take down direction and hence lower direction pull its ain decision which leads to misconstruing between the two parties.

The recommendations like one and everyone, equal employment chances and seeking committedness can non be implemented up to its full extent. As a underdeveloped state India still has the limit in caste, station, societal position etc. which makes it more hard for implementing these solutions.

Supplying inducements to employees who contribute more will increase the cost of Maruti Suzuki Limited, besides harmonizing to Maslow Hierarchy of Needs every person has different demands hence holding same inducement program for everyone will non give drastic alteration in productiveness of the workers.


Maruti Suzuki still holds the rubrics of being the largest auto fabrication industry and the market leader in car industry but in past few old ages its market portion has dropped significantly due to assorted grounds of which some are human related such as-

Industrial Relations- relationship between labors and direction

Workplace Diversity- favoritism on caste and position

Motivation- security issues and emphasis due to changeless alterations

After taking in deepness cognition and making thorough research about the industry, we analyzed the aforesaid Human Resources issues and suggested few recommendations to get the better of the above mentioned issues and to guarantee bright and cheery hereafter for Maruti Suzuki Limited.

Industrial Relations- the first and most critical issue for Maruti Suzuki Limited is the relationship that exists between the labor and direction is non so affable as it should be which is apparent from the fact that in the last decennary there has been legion figure of work stoppages due to assorted grounds, sometimes due to direction pride or laborers or due to either party non maintaining his portion of trade. Therefore for constitution of amiable relationship between labors and direction it is necessary that both labors and direction should adhere to understandings besides involve some workers in direction and maintain them posted about company ‘s aims might assist maintain peace at workplace. Apart from direction and workers it is responsibility of authorities to play the function of go-between in instance both parties are unable to work out their issues on their ain.

Workplace Diversity- the 2nd issue due to which the work environment of Maruti Suzuki is disturbed is workplace diverseness. The chief two jobs seen in Maruti Suzuki India in respect to workplace diverseness are Caste Demarcation and Cultural Diversity. As in last work stoppage the issue started when the supervisor passed remark about labor ‘s caste which leads to the works being burnt down and closed for about a month. The issues can be resolved by handling each and every employee as equal on diverseness background, preparation and instruction should be given, and equal occupation chances should be given to laborers and workers and to guarantee committedness from all degrees of hierarchy of Maruti Suzuki limited in enterprises taken to decide the diverseness issues.

Motivation- the last is a really common issue for many organisations ‘ human resource direction. Human Resource Management demand to understand the assorted fringe benefits, benefits, ends and inducements that can be introduced in the corporate programs in order to fulfill the employees and actuate them to optimum extent. Security has turned into a major concern after July 2012 incident hence supplying addition in wages every bit good as benefits such as wellness insurance has become a necessity to retain the rational assets of the company.

The above mentioned issues and recommendations for these issues will hopefully assist Human Resource Management of Maruti Suzuki Limited to accomplish success and good public presentation from employees and besides make a normal working environment assisting Maruti to accomplish many other plumes in their cap.