Hero MotoCorp

ANALYSIS OF THE ORGANISATION STRUCTURE AND

VARIOUS HR POLICIES IN HERO MOTOCORP.

Submitted To: Prof. Moni Mishra

Submitted By: - Group No. 5

Bhoomika Gupta 25/2014
Akash Kaushik 26/2014
Prachi Kharbanda 27/2014
Gaurav Aggarwal 29/2014
Nihit Tuli 30/2014

ACKNOWLEDGEMENT
We take immense pleasure in thanking Prof. Moni Mishra for having permitted us to
carry out this project work. We would also like to express deep sense of gratitude
towards her for guiding us, which helped us in completing the project in time.

Finally, yet importantly, we would like to express our heartfelt thanks to our team
members, friends and classmates for their help and wishes for the successful
completion of this project.

Thanks and Regards.

Group 5
Section A
PGDM 2014-16
LBSIM

Table of Contents

S.No.

Topics

Page No

1
2
3
4
5
6

Introduction
Company History
Product Portfolio
Research Methodology
Organisation Structure
Organisation

4
4
9
9
9
12

7
8
9
10
11

Environment & culture

Core Competencies
Recommendations
Conclusion
References
Appendices

17
23
26
27
28

Introduction
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India. In 2001, the company achieved the
coveted position of being the largest two-wheeler manufacturing company in India
and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a
calendar year. Hero MotoCorp Ltd. continues to maintain this position till date.
During the year, Hero MotoCorp received the ET Award for being the most trusted
2W brand in the country. Hero now features in the Forbes list of the Worlds 2000
Biggest Public Companies. It is also ranked by Goldman Sachs as one of the 20
best-positioned auto companies in the world.

Company History
Hero Moto Corp formerly Hero Honda is a motorcycle and scooter manufacturer
based in India. Hero Honda started in 1984 as a joint venture between Hero Cycles
of India and Honda of Japan. The company is the largest two wheeler manufacturer
in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda
Motors ranked at 108.
In 2010, when Honda decided to move out of the joint venture, Hero Group bought
the shares held by Honda. Subsequently, in August 2011 the company was renamed
Hero Moto Corp with a new corporate identity.
Hero is the brand name used by the Munjal brothers for their flagship company
Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor

Company was established in 1984 as Hero Honda Motors Limited at Dharuhera,

India. Munjal family and Honda group both owned 26% stake in the Company. In late
2010, Honda sold its stake in the venture to the Munjal family.
During the 1980s, the company introduced motorcycles that were popular in India for
their fuel economy and low cost. A popular advertising campaign based on the
slogan 'Fill it - Shut it - Forget it' that emphasized the motorcycle's fuel efficiency
helped the company grow at a double-digit pace since inception. The technology
used in the bikes of Hero Honda for almost 26 years (19842010) came from their
Japanese counterpart. So, there were concerns that the Hero group may not be able
to sustain the performance of the joint venture alone. Under the joint venture, Hero
Group could not export to international markets (except Sri Lanka) and the
termination would mean that Hero Group can now export its products in the
international market.
Hero Moto Corp has three fully functional manufacturing facilities based at
Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants
together are capable of churning out 3 million bikes per year. Their fourth facility at
Neemrana is ready to start production, and their global parts centre will be functional
before the end of the calendar year. They have also started the land development
work at their fifth facility at Halol in Gujarat.
Hero Moto Corp has a large sales and service network with over 3,000 dealerships
and service points across India. Hero Honda has a customer loyalty program since
2000, called the Hero Honda Passport Program.
The company has a vision 20-20 that includes Surpassing 100 million units in
cumulative production achieve annual bike and scooter sales of 12 million build

more than 20 manufacturing and assembly parts globally and have a turnover of
60,000 crore. In conjunction with new countries like US and Europe, Heros Team
R&D brought new life into their existing portfolio, besides proto-typing a line of next
generation products. At the Auto Expo in 2014, these products were revealed. Their
footprint now spans South Asia, Africa, Central and Latin America, with a presence in
Europe via Turkey. To serve customers in select markets faster, company has also
sewn up joint ventures in critical markets and has kick-started overseas assembly
operations. The first such operation has come up in Kenya. Separate equity ventures
with local firms in Bangladesh and Columbia are also in place.

History and Important Milestones

Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.
1956Formation of Hero Cycles in Ludhiana (majestic auto limited)
1975Hero Cycles becomes largest bicycle manufacturer in India.
1983Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed
1984Hero Honda Motors Ltd. incorporated
1985Hero Honda motorcycle CD 100 launched.
1989Hero Honda motorcycle Sleek launched.
1991Hero Honda motorcycle CD 100 SS launched.
1994 -- Hero Honda motorcycle Splendor launched.
1997Hero Honda motorcycle Street launched.

1999 -- Hero Honda motorcycle CBZ launched.

2001 -- Hero Honda motorcycle Passion and Hero Honda Joy launched.
2002Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition
launched.
2003Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor, Hero
Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.
2004Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ*
launched.
2005Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe,
Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda
Scooter Pleasure.
2007New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero
Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus
and Hero Honda motorcycle Hunk launched.
2008New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour,
Glamour Fi and Hero Honda motorcycle Passion Pro launched.
2009New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and limited
edition of Hero Honda motorcycle Hunk launched
2010new Models of Hero Honda motorcycle Splendor Pro and New Hero Honda
motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.
2011New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme,
Karizma launched. New licensing arrangement signed between Hero and Honda. In

August Hero and Honda parted company, thus forming Hero MotoCorp and Honda
moving out of the Hero Honda joint venture. In November, Hero launched its first
ever Off Road Bike Named Hero "Impulse".
2012-New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the
young generation bike are launched.
2013-Neemrana plant association laid, 50 million cumulative 2 wheelers production,
global parts centre foundation store laid

Vision
The story of Hero Honda began with a simple vision - the vision of a mobile and an
empowered India, powered by its two-wheelers. Hero MotoCorp Ltd., companys
new identity, reflects its commitment towards providing world class mobility solutions
with renewed focus on expanding companys footprint in the global arena.

Mission
Hero MotoCorps mission is to become a global enterprise fulfilling its customers
needs and aspirations for mobility, setting benchmarks in technology, styling and
quality so that it converts its customers into its brand advocates. The Company will
provide an engaging environment for its people to perform to their true potential. It
will continue its focus on value creation and enduring relationships with its partners.

Product Portfolio
It has 17 models of motorcycles across the 100 cc, 125 cc, 150 cc, 225 cc
categories.

Sleek

Street

Achiever

Ambition 133, Ambition 135

CBZ, CBZ Star, CBZ Xtreme, Hero New Xtreme 2014

CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe (Self
Start)

New HF Dawn,New HF Deluxe, HF DELUXE ECO

Glamour, Glamour F.I.

Hunk

Karizma, Karizma R, Karizma ZMR FI

Passion, Passion Plus, Passion Pro, Passion XPro , New Passion Pro TR

Splendor, Splendor+, Splendor+ (Limited Edition), SuperSplendor, Splendor

NXG, Splendor PRO, Splendor [iSmart]

Hero Impulse launched in 2011 after the separation of Hero and Honda. Its
India's first off-road and on road Bike.

Hero Ignitor launched in 2012

Research Methodology

An initial interview was conducted in the corporate and registered office of Hero
MotoCorp in Vasant Vihar with Mr. Nipun Batra Associate Manager. Due to which the
team reached to following conclusions:

Organization structure
The organization is split along the lines of function such as sales and marketing,
finance, HRM & corporate planning & strategy, operations and information systems.
The functional structure has served them well especially during the growth period, as
it helped them achieve operational efficiency. The structure is hierarchical and there
are up to 12 levels of hierarchy. Since there are too many levels therefore in their
Haridwar plant they have reduced the number of levels to four in order to enhance
communication and feedback. In many functions and areas, they are trying to move
away from the traditional hierarchical structure to a more modern and less
hierarchical one.
The company follows a mechanistic structure. It has a very high hierarchical
structure with the twelve formal levels. The expectations and behaviors for each level
and role are clearly defined. This provides each role a specific direction and defines
the tasks clearly. The communication channels are very formal in nature and
information flow is majorly from top to bottom. The employees at the lower levels of
hierarchy contact and consult only their immediate seniors instead of skipping levels.
Due to the diverse product portfolio that Hero Moto Corp offers, they have high
degree of horizontal co-ordination among their units and spatially among plants
located in different geographical areas. They also have moderate formalized and
standardized structure so that the objectives and goals of the organization are well
addressed and employees work collaboratively to achieve them. The rules and

10

standards have been defined in a manner that there is no compromise on the

product quality. This also ensures that there is uniformity in the procedures being
followed at different locations by different individual who have been not necessarily
trained at a common place.
There are various advantages and disadvantages of having a mechanistic structure:
Since the company follows a standard set of rules and processes, the tasks
undertaken by each individual become easier to do and more effectively. This leads
to a better performance on an individual in the company which has led Hero Moto
Corp to become the leading manufacturer of two-wheelers in the world. The high coordination between units also helps the employees understand the processes better.
This structure has helped Hero Moto Corp to achieve high level of efficiency and
reduction in costs. This gives a distinct advantage over other organizations. The
above structure has helped Hero Moto Corp attain a very high production of a high
number of two-wheelers per year.
The major disadvantage of such structure could be the increased time taken for
communication from top to bottom. This structure would also inhibit and limit
individual participation. The structure could nullify the innovative mind of an
employee as it requires a fixed set of rules and regulations. So, they could be
discouraged to think beyond what is the minimum requirement from them and the
organization misses out on tapping the existing potential of the employees that it can
harness to move towards greater improvements. It could also result in reduced level
of motivation while on the job. However, Hero Moto Corp has taken care of this
problem with the Employee Suggestion Scheme. They encourage implementable
suggestions from employees, which needs to be signed off by the head of

11

departments. These suggestions could be for improving system efficiency, safety

standards, housekeeping, productivity, savings in cost, time and energy, or waste
elimination. The employees receive a monetary incentive to the tune of 0.5% of cost
savings if its a capital cost saving and 1% of cost saving if its a recurring cost.

Office Environment & Culture

The office that the group visited was the corporate and registered office at Vasant
Vihar. Some of our observations have been described below:

The security personnel were helpful in guiding people new to the place.
There was a small reception area right near the gate itself. There were two
officers who managed all visitors (both people with appointment and sudden
visitors). They have access to two computer systems, where they could check
on the appointments or send /receive communication about visitors. In case
they did not have information, they also called employees through intercom to

verify details.
We also observed popular bikes by the company on left side and a waiting

area on right side.

Once the information is clarified, they gave Visitor ID cards, which all visitors

are required to wear all the time in a visible manner.

There was a guide map in the waiting area which had instructions for

emergency exits etc.

There were ample number of indoor plants in the entire office
The corporate office with departments like finance etc were in a separate
building

12

The office was access controlled, with employees from various sub-functions

sitting in small cubicles.

As such there were no uniforms in the office but we were told that there is a
Mandatory uniform in the Gurgaon plant , All ladies have to where a white

coat on their clothes and all men have to wear a white coats and trousers.
There were multiple notice boards with notices related to suggestion
schemes, photographs from training sessions, handmade posters with
information or learning from the training sessions. An interesting observation

was all notices related to rules and regulations were in Hindi.

There was another huge notice board which had information related to quality
circles. It also had information about various cross functional teams which
looked into different forms of employee engagement. The quality circle
information has been shared in the appendix. The cross functional teams and

their functions have been described below:

1. Abhivyakti- This team looks after employee engagement by organizing events
that gives employees an opportunity to bring out their hidden talents. It also
tries to promote national integration and regional festivals
2. Jagriti- This team shares general information with all employees to increase
awareness in them.
3. Khel- This team looks into organizing sports events.
4. Kuber- This team provides financial services and advise.
5. Santushti- This team looks into new initiatives and advises HR with respect to
canteen.
6. Swasthya- This team looks into overall family well being.
7. Kalyaan- This team plans, organizes and takes care of welfare activities.

The structure of this cross functional team is as given below:

13

Steering
Committ
e

Leader

Members

Central HRM
Coordinator(One
amongst M4/M3)
HRM Coordinator(One amonst
E4/M2)
5 from staff members upto M2
and 8 from operators

During the period of our meeting ganesh chathurti festival was going on so
there were idols of ganeshji near the reception area and ladoo and flowers
were kept in front of the idols by the employees. So we asked about the kinds
of festivals that are celebrated in the office,they told us that all religions are
treated equally and festivals from holi to Christmas are celebrated in the
reception area of office where all employees engage in various activities.

14

As per our conversation, there was a cafeteria where employees from all
levels sat together but we were told that in the Gurgaon plant there were
separate places for workers and management in the canteen. This is similar
to Japanese culture; therefore, we could consider this to be the Honda culture
imbibed into the Hero employees.

A midlevel manager told us a story shared by the GM-HR reflecting how company
spreads a message of trust among all the people it deals with the story is around the
time when the de-merger was announced, there was a lot of unrest in the suppliers
and distributors. Many of them of course wanted to go with Honda, since they are the
bigger name. However, one of the long time dealers, who went for a meeting with the
Chairman was offered homemade buttermilk by the him, instead of the usual tea.
This personal touch, made the dealer trust the chairman and hence the organization

15

as well. He believed that the organization will continue to care for the dealers and
help them even after the de-merger. And thus he continued to support Hero.
Based on all these observations, we can say that there is mixed i.e. traditional and
modern feel about the arrangements at the Hero Moto Corp Office.

16

Core Competencies
Based on the interactions with the management we can interpret the core
competencies to be combination of the following:
Core Values: Quality and Reliability were both Hero and Hero Hondas core values.
All processes and relationships between people were driven by these values. The
process quality and reliability is proven by Heros success in the market. These can
also be called some of the core Indian values. We could say that these values
resonate with the workers, who are Indians and this what drive the organizations
success
Leadership: It was the Chairman, Mr Brijmohan Munjals, belief that drove Hero, a
cycle manufacturing company to collaborate with a world renowned brand like Honda
to create motorcycles in a scooter country. His beliefs and value systems continue
to reflect in the organizations culture and people today as well. Also the current
management has grown in the ranks from early days of Hero Honda.
We were also informed that, the key suppliers and distributors were also taken for
the launch of the logo in London, along with the top management of Hero.
Culture: There is a culture of holistic growth in the organization. As per the
information shared during our conversation with the GM-HR, when Hero collaborated
with Honda, the set of suppliers and distributors associated with Hero, also grew with
them. They too got an opportunity to expand with a global brand. As Hero Honda set
up new plants, these suppliers and distributors also set up their shops with these
plants. They grew with them and the same continues with Hero Moto Corp.

17

Employee Engagement
Policy on
Employee Reciprocal

Description
Lays down the guidelines for an employee, to fulfil his

Obligation
Working Hours

reverse obligation for the given developmental opportunity

To provide all employees with a uniform time frame for

Food Coupons

work.
Every month all permanent employees based at H.O,
HMCI and zonal offices shall get a monthly sodexho

Retirement Benefits

coupons booklet worth Rs. 1250/Benefits available to an employee upon retirement from

Motorcycle Loans

service.
To provide financial assistance to employees who want to

Household Goods

buy a motorcycle.
To provide the employees with insurance cover against

Insurance

theft, burglary, and fire for their personal house hold goods.

Employee Mutual

To help employees in case of medical exigencies which

Medical Benefit Fund

exceed the Mediclaim limits.

Scheme
Overseas Travel Rules

To provide reasonable and adequate travelling allowance /

daily allowance to various categories of employees of the
company while they go out of the country in connection

Transfers

with companys work.

To assist the transferee to move to his new location of duty

Company Car Lease

and settle down.

Provide policy guidelines for the leased car scheme.

Scheme

18

Company Telephone

To provide company telephone facility to employees

Scheme
Conveyance Allowance

To extend financial support to employees for meeting a part

Wedding gift

of the conveyance expenses.

to extend a good gesture on part of the company to each
employee on his/her own marriage or the marriage of the
employees daughter

Green Vendor Development Program (GVDP)

The Green Vendor Development Program of Hero MotoCorp is the supply chain
initiative drive taken to extend the corporate environment responsibility down the
supply chain. It is based on one-to-many mentoring program. As the production is
increasing at Hero MotoCorp facilities, the manufacturing activities at the vendors
end are also increasing in the same proportion, thus giving rise to the environmental
load.
In an order to improve the vendor environmental performance Hero MotoCorp has
developed this exclusive vendor development program, which is a collaborative effort
between the Hero MotoCorp Environmental group and the materials department, in
order to influence the vendors to adopt pre-specified environmental requirements
and undertake environmental initiatives.

19

From Hero Honda to Hero MotoCorp

At the time of inception, as the organization was very small it had a simple structure
which was less hierarchical.

20

FOUNDE
R
Function
al Head
Employe
es

Function
al Head

Employe
es

Employe
es

As the organization grew and more people joined the organization, there was a need
to adopt an organized structure. The DNA of the organization being process centric,
it adopted a production based structure in which each employee would concentrate
on manufacturing. The culture was however kept very formal so that employees
could be kept into target-oriented approach.

Contextual Dimensions
1.

Size- As on March 31, 2014 the total number of employees in the records of

the company was 5842. Since Hero is expanding its base in other locations so they
are increasing their workforce and R&D capability.

21

2.

Organizational Technology- It follows large batch and mass production. The

parts are integrated either manually or with the help of robotics in a assembly line.
ERP systems have been implemented in various operational activities and are now
being implemented into production and manufacturing operations as well.
3.

The Environment- Hero Motocorp has various environmental elements such

as customers, suppliers, other players in 2 wheeler industry and legal regulators.

Major element is the competition that other players are giving it.
4.

Goals and Strategy- Hero offers cost effective and differentiated products and

services. Its low cost is attributed to its strong distributor network.

5.

Culture- Hero has been guided by the Indian set of values of trust and

collaborative growth. As a result it has been able to strengthen its relationship with its
suppliers and distributors, customers, employees and various other stakeholders. It
has stressed upon the importance of reliability and quality in its products. Hence the
culture of the organization has institutionalized these values and beliefs among the
workforce and form its one of the pillars of success.
Hero Moto Corp faced the following Design challenges as it grew:
Organization size
Large organizations generally contain a great deal of vertical and horizontal
differentiation. More likely to require decentralized decision making.
As Hero Honda hired more employees it attempted to take advantage of the
economic advantages of specialization, which resulted in increased horizontal
differentiation. Control by management required more formal rules and regulations.

22

Even greater vertical differentiation new units were created to co-ordinate extra
activities of organization members.
Environment
The organizations environment consists of - suppliers, customers, govt. agencies
basically anything that is outside the control of the organization itself.
Recent research has shown that there are three key dimensions to any
organizations environment capacity, volatility and complexity.
Capacity- was not much of an issue with the former Hero Honda, as plenty of raw
materials and labour force was available before the 2000s.
Volatility- Due to the 1991 major reforms, Globalization and liberalization led to the
entry of major players across the globe to step in. They brought with them the latest
technology and the best quality into the industry. Erstwhile Hero Honda was forced to
invest heavily into its R&D and come up with something new for the market which
could compete with the global players.
Complexity Is an after effect of Volatility, as opening up of the Indian economy for
the world, resulted in most competitive market from the companys perspective.
These factors combined suggest different structural arrangements. The more scarce,
dynamic and complex the environment, the more organic a structure should be. The
more abundant, stable and simple the environment, the more mechanistic it should
be.

Recommendations
Recommended Star Model Analysis Hero Motocorp

23

People

Reward
System
s

Decisi
on
Proces
s

Task
Focus

Structu
re

The organization design framework portrayed in Figure is called the Star Model. In
the Star Model, design policies fall into five categories. The first is task focus and
strategy, which determines direction. The second is structure, which determines the
location of decision-making power. The third is decision processes, which have to do
with the flow of information; they are the means of responding to information
technologies. The fourth is rewards and reward systems, which influence the
motivation of people to perform and address organizational goals. The fifth category
of the model is made up of policies relating to people (human resource policies),
which influence and frequently define the employees mind-sets and skills. For Hero
Honda the analysis based on star model can be explained as:

Structure: The structure of the organization determines the placement of power and
authority in the organization. Hero Honda has a team based structure. Structure here
can be further divided into four categories namely, specialization, shape, distribution
of power and departmentalization.
Specialization and division of labor: In Hero Honda broad specialization is
there because of high level of uncertainty in automobile industry.

24

Distribution of power: It is highly decentralized because of team based

structure.
Interdependence: There is lot of interdependence within the team but there is
no interdependence across the teams. Each team has their own balance

sheet.
Shape: It has a team based structure and moderate differentiation.

Task Focus: It determines direction through goals, objectives, values and or

missions. It defines the criteria for selecting an organizational structure. The task
focus defines the ways of making the best trade-off between alternatives. In case of
Hero Honda the main focus is consumers and the organization has customer centric
approach.

Uncertainty: Hero Honda mainly deals in automobile industry which has high

level of uncertainty, hence low level of formalization.

Task Diversity: Different types of tasks are treated as independent units in
hero honda.

Decision process and control: Information and decision processes cut across the
organizations structure; if structure is thought of as the anatomy of the organization,
processes is its physiology or functioning.
In Hero Honda, decision is usually taken by the employees at partner level in the
team however every member is free to share their views and opinions.

People: This area governs the human resource policies of recruiting, selection,
rotation, training, and development. Human resource policies in the appropriate
combinations produce the talent required by the strategy and structure of the
organization, generating the skills and mind-sets necessary to implement the chosen
direction. Like the policy choices in the other areas, these policies work best when
they are consistent with the other connecting design areas.

Recruitment: As it is a large organization so recruitment process is very

frequent. They generally recruit for multiple levels on an ongoing basis, for
this they visit various campuses for employee reference however for
recruitment at higher level both referrals and promotions are used.

25

Training and development: Since its a large organization and recruitment is

huge and frequent so, there is a formal orientation. However, team leaders
and the HR are involved in the induction training with the new employees.

Rewards: The purpose of the reward system is to align the goals of the
employee with the goals of the organization.
In Hero Moto Corp, rewards are given in the form of bonuses and often people
are rewarded in by certificate of merit and medals for contribution to the
organization. The reward system often forms the basis of getting promoted from
one band to another within the team.

Conclusion
It was the Chairman, Mr Brijmohan Munjals, belief that drove Hero, a cycle
manufacturing company to collaborate with a world renowned brand like Honda to
create motorcycles in a scooter country. His beliefs and value systems continue to
reflect in the organizations culture and people today as well.

26

The interview helped us in having an insight about the company how it plans to fulfil
its vision and mission.

References
Websites
http://heromotocorp.com/
http://en.wikipedia.org/wiki/Main_Page
http://www.google.co.in/
http://www.cogmap.com/
Bibliography

27

Books
Organzational theory, change and design- Richard L.Daft
Organisational Behaviour-Stephen P.Robbins

Respondents Details
Mr Nipun Batra- Associate Manager

Appendices
Questionnaire
1. Tell us short history of the company, the way it has grown and developed till
now?
2. What does organisation do? What goods and services it produce/provide?

28

3. How does the organisation, offices and spaces, ambience, arrangement,

decor look like makes you feel. Does it gives traditional or modern or mix
look?

4. Model the ways organisation creates value. Give a initial analysis of the
issues and problems.
5. What challenges confront the organisation today, in its efforts to attract
customers, to lower costs, to increase operating efficiency?

6. How does its organizational design relate to these problems??

7. Analyse the design of the organization?

8. What core competencies make your organisation unique or different from

other organisations?

9. How has your organisation responded to design challenges? Is it centralized

or decentralized?

10. List major roles, functions, departments in the organisation. Does it have
many divisions?
11. If your organisation engages in many businesses, list major divisions in the
company. Can you identify any integrating mechanisms used by your
organisation?

12. Is behavior in the organisation very standardised or does mutual adjustment

play a role in coordinating people and activities?

29

13. What can you tell about the level of formalization by looking at the number
and kinds of rules the organization uses?

14. Why does the company use this kind of structure? Provide a brief account of
the advantages and disadvantages associated with this structure for your
organization?

15. Can you suggest a more apt design that your company adopt to increase the
effectiveness of the organisation.

16. Tell us about compensation and reward systems, benefits, schemesemployee suggestion scheme?

17. Post split technology was be offered by Honda for some time. What is being
done to improve the technical capability of Hero for future sustenance?

30