TOPIC

PAGE NO.
S.NO
EMPLOYEES SATISFACTION IN
MARUTI SUZUK

Introduction To The Topic

1. 5-13

2 Company Profile
14-53

3 Objectives Of The Study 54

4 Research Methodology
55-58

5. 59-75
Data Analysis And Interoperation

6. 76-77
Findings
78
Limitations
79
8. Conclusion
80
9. Recomendation

81
10 Bibliography

Annexure
82-83
11.
 Introduction
Human Resource Is Considered To Be The Most Valuable Asset In Any Organizatíon. t Is The
Sum-Total Of Inherent Abilities, Acquired Knowledge And Skills Represented By The Talents
And Aptitudes Of The Employed Persons Who Comprise Executives. Supervisors And The
Rank And File Employees. It May Be Noted Here That Human Resource Should Be Utilized To
The Maximum Possible Extent. In Order To Achieve Individual And Organizational Goals. It Is
Thus The Employee's Performance. Which Ultimately Decides. And Aainment Of Goals.
However, The Employee Performance Is To A Large Extent, Influenced By Motivation And Job

Satisfaction

The Tern Relates To The Total Relationship Between An Individual And The Employer For
Which He ls Paid. Satisfaction Does Mean The Simple Feling State Accompanying The
Attainment of Any Goal: The End State Is Feeling Accompanying The Attainment By An

Impulse Of Its Objective. Job Satisfaction Does Mean Absence Of Motivation At Work.
Rescarch Workers Differently Described The Factors Contributing O Job Satisfaction A

Dissatisfaction.

The Survey Made Regarding The Job Satisfaction In Maruti Suzuki (DD Motors) Will
Facilitate And Enables The Management To Know The Perceptions And Inner Feelings
Regarding The Job They Are Performing On Day-To-Day Basis. The Term Job Satisfaction
Reveals And Focuses On The Likes And Dislikes Of The Employees Of Maruti Suzuki (DD
Motors). In This Particular Study The Researchers Tries To ldentify The Causes For Satisfaction
And Dissatisfaction Among The Employees. So This Is The Most Effective And Selective
Instrument For Diagnosing And Peeping Into The Employee's Problems.

Job Satisfaction Survey Can Give The Most Valuable Information The Perceptions And Causes.
For Satisfaction/Dissatisfaction Among The Employees Attitude Towards Job Satisfaction May
Be Either Positive Or Negative. This Positive Feeling Can Be Re-In Forced And Negative
Feelings Can Be Rectified. This Survey Can Be Treated As The Most Effective And Efficient
Way, Which Makes The Workers To Express Their Inner And Real Felings Undoubtedly.

For Any Future Course Of

Action/ Development, Which Involves Employee's Participation, Is

Considered. The Management wWill Get A Picture Their Employee's Acceptance And Readiness.

5
This Survey Also Enables To Avoid
Misinterpretations And Helps Management In
Solvin
Problems Effectively. It Is Observed During Study Some Of The
Employees Accepted The
Proposal Survey Research
A
Perfectly Contentment And Satisfaction Motivates An
Employees To Be Confident With A
High Morale, It Is An Asset To Organization As A Whole.

Thus The High Motivation And Morale Of An Employee Make Him To Remain In The
Organization And Encourage Him To Face Cut Throat Competition And Gives Him Enough
Dynamism To Face Challenges.

Every Human Being Possess Him Own Unique Resource, If Properly Channels It By Supportive

And Supplement. Ultimately For Achieving Organization Goals.

As Proper Breathing And Diet Is Necessary To Healthy Human Being So As Is Contentment To

The Job Satisfaction. This Contentedness Ultimately Acts As A Key Factor To Human Resource

Development.

Definition
Job Satisfaction Refers To A Person's Fecling Of Satisfaction On The Job. Which Acts As A
Or Self-Contentment But The
Motivation To Work. It Is Not The Self-Satisfaction, Happiness
Satisfaction On The Job.

Satisfaction As "Any Combination Of Psychological, Physiological

Hoppock Describes Job
That Cause And Person Truthfully To Say 1 Am Satisfied
And Environmental Circumstances
With My Job.

As The. "Pleasurable Emotional State Resulting From The Appraisal

Job Satisfaction ls Defined
Of Facilitating The Achievement Of One's Job Values.
of One's Job As Achieving

6
 Obiectives Of The Study
The Main Aim Of The
Study Is To Analyze And Examine Level
Of Job
The Maruti Suzuki (DD Motors) Satisfaction Among
Employees And To Know The Problems Faced By The
Employees Of The Various Categories. The Specific
Objectives Are As Follows:
To Present A Profile Of
Maruti Suzuki (DD Motors) And Organizational Structure Etc.,
To Observe The Level Of
Satisfaction Among Of Employees Relating To The Nature
The Job And Other Factors. Of

To ldentify The Extent Of Job Satisfaction In The Maruti Suzuki

(DD Motors)
Employees And Its Impact On The Job Performance Of The
Employees.
To Evaluate The Working Environment In Maruti Suzuki (DD
Motors)

T o Examine
Satisfaction Regarding The Salary And Other Benefits Of Its
Employees.
To Suggest Suitable Measures To Improve The Overall
In The Organization.
Satisfaction Of The Employees

1
E E
 Theoretical Aspects Of Job Satisfaction
I Am Satisfied With The Job" iIs One Way To Define Joh Satisfaction.

Limelight On Job Satisfaction Was Brought By Hop Pock In 1935. He Reviewed 32 Studies On
Job Satisfaction. Prior Of 1933 The Job Satisfaction Is Combination Of Psychokogical.
Physiological And Environmental Circumstances That Course To Say Truthfully That "1 Am

Satisfied With My Job."

The Success Of Any Organization Depends On The Effective Utilization And Motivation Of

Human Resources..

Job Satisfaction Is An ntegral Of The Organizational Climate And Importance Element In

Management And Employee Relationship.

Job Satisfaction Is Derived From The Latin Words "Satis" And "Facere". Which Means

Enough And To Do" Respectively. Job Satisfaction Refers To An Employee's General Attitude

Towards His Job. Sityational Factor. Individual Characteristics. Group And Social
Relationship Outside The Job.

Job Satisfaction Is The Ultimate Function Of All These And Many Individual Attitudes Put
Together. Many Thinkers Consider Ii A Collective Force And Not An Unitary Phenomenon.

Every Individual Has Some Needs And Desires That Need To Be Fulfiled. Any Job. Which
Fulfils These Needs, Provides Satisfaction. Satisfaction Is One's Contentment Job That Induces
Motivation And Interest In Work, Which Creates Pleasure Or Happiness From Job. Hence
Satisfaction Plays A Vital Role In Every Aspect Of Individual's Life, Without Satisfaction In
Life It Becomes Very Difficult To Survive.
 Meaning
General Atitude Towards His
Job.
The Tem Job Satisfaction Refers To An Employee's
View Their
Job Satisfaction Is The Favorableness Or Un-Favorableness With Which Employees

Work
Should Be To Demarcate The
In Order To Understand Job Satisfaction, Perhaps The First Step
Attitudes Motivation And Morale.
Boundaries Among Such Terms As
Satisfaction.
One's General Life
Life. Job Satisfaction Influences
A Job Is An Important Part Of

Circumstances In The Same

The Result Is That Satisfaction
Arises From A Complex Set Of

Motivation Does.
Way The

JobSatisfaction Leads To
Act Effectively In
Productivity. Want To Remain With Organization.
Motivales Towards High
Promotes The Interest
Without Resentment Or Resistance.
Crisis. Accept Necessary Changes
Of The Workers In The Organization.

Theories
About The Concept Of Job Satisfaction. Basically,
There Are Vital Differences Among Experts

There Are Four Approaches/ Theories Of Job Satisfaction.

4) Two-Factor Theory
1) Fulfillment Theory 2) Discrepancy Theory 3) Equity Theory

(1) Fulfillment Theory

Theory Is To Measure Satisfaction in Terms Of Rewards A Person

The Main Aim Of This
His Needs Are Satisfied. Job Satisfaction Cannot Be
Receives Or The Extent To Which

Regarded MerelyAs A Function Of How Much A Person Receives From His Job But It Is The
Of His Level Of Aspiration In A Particular Area.
Strength of The Individual's Desire
The Main Difficulty In His Approach As Observed By Willing ls That Job Satisfaction Is Not

Oniv A Function Of What A Person Receives But Also What He Feeis He Should Receive, As
There Would Be Considerable Diiiereee in ihe Actual And Expectations Of Persons

10
 2) Discrepancy Theorv

The Proponents Of This Theory Is That

Satisfaction Is The Function Of What A
Receives From His Job Satisfaction And What He Person Actually
Thanks Receives Or
Expects To Receive.
This Apprvach Does-Net Make It Clear Whether Or Not Over
Satisfaction Is A Part Of
Dissatisfaction And If So, How lt Differs From
Dissatisfaction.
(3) Equity Theory

The Proponents Of This Theory Are Of The View That A Persons

Satisfaction Determined By
His Perceived Equity Which In From
Is Determined By His
Input-Output Balance When
Compared To Others Input-Output Balance.
Input-Output Balance Is The Perceived Ratio Of
What A Person Received From His Job
Relative To What He Contributes To The Job.

(4) Two-Factor Theory

This Theory Was Developed By Herzberg. Manusner, Paterson And Capwell Who ldentified
Certain Eactors As Satisfiers And Dissatisfies
Factors Such As Achievement, Recognition Responsibility Ec.;
Are Satisfiers, The Presence
Which Causes Satisfaction But Their Of
Absence Does Not Result In
Dissatisfaction On The Other
Hand The Factors Such As
Supervision Salary. Working Conditions Etc Are Dis-Satisfiers The
Absence Of Which Cause Dissatisfaction
However Their Presence Does Not
Result In Job
Satisfaction.

This Theory Is Considered Invalid As A Person Can Get Both

Satisfaction And Dissatisfaction
At The Same Time.

11
 Determinants Of Job Satisfaction
According To Abraham A.
Kumar There Two Types Of Variables, Which Determine The Job
Satisfaction Of An individual. These Are:1. Organization Variables 2. Personal Variables
1. Organization Variables:

1. Occupational Level The Higher The Level Of The Job, The Greater The Satisfaction Of The
Individuals. This Is Because, Higher Level Of Jobs Carry Greater Prestige And Self-Control.
This Relationship Between Occupational Level And Job Satisfaction Stems From Social
Reference Group Theory In Our Society Values Some Jobs More Than Others. Hence People In
Values Like Them More Than Those Who Are In Non- Valued Jobs. The Relationship May Also

Stem From The Need Fulfillment Theory.

i. Job Content: Greater The Variation In Job Content And Less The Repetitiveness With Which
The Tasks Must Be Performed. The Greater The Satisfaction Of The Individuals Involved. Since

A Function Off
Job Content In Terms Of Variety And Nature Of Tasks Called For Is

Occupational Level. The Theoretical Arguments Given Above Apply Here Also.

Consideration. Hence Considerate

ii. Considerate Leadership: People
To Be Treated With
Job Satisfaction Than In Considerate Leadership.
Leadership Resuits In Higher
Equal These Two Variables Are
All Other Things Being
v. Pay And Promotional Opportunities:

Positively Related To Job Satisfaction.

Is, When Interaction In The Work Groun

up
Interaction Among Empioyees: Here The Question
v.
Satisfaction And When
It Is Not.
Is A Source Of Job

12
A
COMPANY PROFILE
 Company Profile

MARUTI

Actual Production
Maruti Udyog Limited Was Established In February 1981, Though The
In 1983. It Started With Maruti 800, Based
On The Suzuki Alto Kei
Commenced Only
Car Which At The Time Was The Only Modern Car Available In India. Its Only Competitors
Originally, 74% of The Company Was
Were Hindustan Ambassador And Premier Padmini.

The Indian Government, And 26% By Suzuki Of Japan. As Of May 2007, The
Owned By
Government Of India Sold Its Complete Share To Indian Financial Institutions And No Longer

Has Any Stake In Maruti Udyog

Beginnings
In 1970. When A Private Limited Company Named 'Maruti Technical
Maruti's History Begins
Services Private Limited. (Mtspl) Is:Launched On November 16, 1970. The Stated Purpose Of
Know-How For The Design, Manufacture And
This Company Was To Provide Technical

Assembly Of "A Wholly Indigenous Motor Car". In June 1971, A Company Called 'Maruti
Under The Companies Act And Sanjay Gandhi Became Its First
Limited Was Incorporated
Managing Director. After A Series Of Scandals, "Maruti Limited" Goes Into Liquidation In
A Commission Of Inquiry Headed By Justice A. C. Gupta, Which
1977. This Is Followed By
CGandhi Dies When A Private Test Plane He
Submits Is Report In 1978. On 23 June 1980 Sanjay
And At The Behest Of Indira Gandhi, The Indian
Was Flying Crashes. A_Year Afer His Death,
Maruti Limited And Starts Looking For An Active Collaborator
Central Government Salvages
Ltd Being Incorporated In The Same Year.
For A New Company: Maruti Udyog

14
 SuzukiEnters
In 1982, A License &
Joint Venture
And Suzuki Of Agreement (Jva) Is Signed Between Maruti
Japan. At First. Maruti Suzuki Was Udyog Ltd.
Closed Market, Maruti Mainly An Importer Of Cars. In
Received The India's
First Two Years, And Right To lmport 40.000 Fully Built-Up Suzukis in
Even After That The Early Goal
The
This Was To Use
Upset The Local Only 33% Indigenous Parts.
Manufacturers Considerably.
There Were Also Some
Indian Market Was Too Concerns That The
Smal1 To Absorb The
Maruti Suzuki, With The Comparatively Large Production Planned By
Government Even
Lowering The Excise Duty 1In Order Considering Adjusting The Petrol Tax And
To Boost
Released. This 796 Ce
Hatchback Is Based On The
Sales.Finally.
In 1983. The Maruti 800 Is
Ss80 Suzuki Alto And Is India's First
Affordable Car. Initial Product
Plan Is 40%
Saloons, And 60% Maruti Van. Local Production
Commences In December 1983. In
1984 The Maruti Van, With The
Same Three-Cylinder
Engine As The 800, Is Released. Installed
Capacity of The Plant in Gurgaon, Reaches 40.000
Units.

In 1985 The Suzuki Sj410-Based Gypsy, A 970 Cc 4wd Off-Road Vehicle, Is Launched. In
The 1986
Original 800 Is Replaced By An
All-New Model Of The 796 Cc Hatchback
Suzuki
Alto/Fronte. This Is Álso When The 100,000th Vehicle Is Produced By The Company In 1987
Follows The Company's First Export To The West, When A Lot Of 500 Cars Were Sent To
Hungary. Maruti Products Had Been
Exported To Certain
1988, The
Neighboring Countries Already. By
Capacity Of The Gurgaon Plant Is Increased To 100.000
Units Per Annum.
Market Liberalization
In 1989 The Maruti 1000 Is
Presented After Having Been Shown
Earlier. This 970 Cc, Three-
Box Is India's First
Contemporary Sedan. By 1991 65 Percent Of The
Vehicles Produced, Are Components, For All
Indigenized. Meanwhile. The Liberalization
Of The Indian
Economy Opens New Opportunities But Also
Brings More Competition To The
Which Maruti Operates. In 1992 Suzuki
Increases Its Stake In Maruti Segments In
The Company A 50-50 Jv With The To 50 Percent,
Government Of India The Other Making
Stake Holder.
A Flow Of New Models Begin In The Early Nineties. In
1993 The Zen, A
Hatchback Which Is Later Exported Globally As The Modern 993 Cc.
Suzuki Alto. In 1994
nears. A More Luxurious The 1298 Cc
Redesigned Maruti 1000. This And Esteem
Other Maruti
15
Begin Appearing
In A Plethora Of Different
Equipment Levels, To Better Suit India's
Consumers. A Zen Automatic Arrives In 1996,
As Does The
Increasingly Discerning
of The Gypsy King. A 1.3 Liter Version
Compact Off-Roader. And A Minibus Version
Of The Omni (The Omni
E).

In 1994 Maruti Suzuki Produces ts 1 Millionth Vehicle Since The

Production, Being The First Company In India To Do So. Commencement Of
This Is Still Not
Booming Market And The Next Year Maruti's Second Enough In A
Plant Is Opened, With Annual Capacity
Reaching 200,000 Units. Maruti Also Launches A 24-Hour
Emergency On-Road Vehicle
Service, The First Of Its Kind In The Country. In 1996 The
United Front Government Is
With Murasoli Maran New Industries Formed,
Minister. On 27 August The
Following Year The
Government Nominates Mr. S.S.L.N. Bhaskarudu As
The Managing Director, As The
Then
Current Managing Director R.C. Bhargava, Was Completing His Tenure. This Creates A
Conflict With Suzuki, Discussed Closer In The
Joint Venture Related Issues Section.
In 1998 The New Maruti 800, Is
Released. The First Change In Design Since 1986. This Is
Simply A Facelift Of The Existing Model, To Ensure Steady Sales. Also, The Two Millionth
Vehicle Is Produced. Other News Include The Zen
D, A 1527 Cc Diesel Hatchback And Maruti's
First Diesel Vehicle. The Omni Van And Microbus
s Also Redesigned. The Next Year The
Omni Bus Arives In A High Roof Version, The
Omni XI. The 1.6 Litre Maruti Baleno Three-
Box Saloon, Advertised As The 'Maruti Suzuki
Baleno', Also Appears. This Is Maruti's
Biggest
Car Yet. Finally, In What Is A Very Busy Year, The Wagon R Is Launched.
In 2000 Maruti Becomes The First Car Company In India To Launch A Call
Center For Internal
And Customer Services. The New Alto Model Is Also Released, Somewhat
Larger And More
Modern Than The 800. The Esate Baleno Altura Is Also Shown. While ldtr
(Institute Of Driving
Training And Research) Is Launched Jointly With The Delhi Government To Promote Safe
Driving Habits. In 2001 Maruti True Value, Selling And Buying Used Maruti Suzukis,
Launched In Bangalore And Delhi, Later ln Mumbai And Elsewhere. In October Of The Same
Year The Maruti Versa Sees The Day, A Bigger Engined And More Luxurious Microbus Than
The Omni. It Never Catches On ln The Market And Is Discontinued By Late 2009, Only To Be
Replaced By A Cheaper, Stripped-Down Version Called Eeco. Customer Information Centers
Are Also Launched In Hyderabad, Bangalore And Chennai. In 2002 The Esteem Diesel Appears,

16
 AS Does Maruti Insurance. Two New Subsidiaries Are Also Started: Maruti Insurance
Distributor Services And Maruti Insurance
Brokers Limited. Suzuki Motor Corporation
Increases Its Stake In Maruti To 54.2 Percent.

In 2003 The New Suzuki Grand Vitara X1-7 Appears, While The Zen And The Wagon R Are

Upgraded And Redesigned. The Four Millionth Maruti Vehicle Is Built And They Enter Into A
Partnership With The State Bank Of India. Maruti Udyog Lid Is Listed On Bse And Nse Ater A
Public Issue. Which Is Oversubscribed Tenfold. In 2004 The Alto Becomes India's New Best
Selling Car. Overtaking The Maruti 800 Which Had Becn Number One For Nearly Two
Decades. The Five-Seater Versa 5-Seater, A New Variant, Is Created While The Esteem
Undergoes Cosmetic Changes And Is Re-Launched With A Price Cut. Maruti Udyog Closed The
Financial Year 2003-04 With An Annual Sale Of 472,122 Units, The Highest Ever Since The
Company Began Opcrations 20 Years Earlier, And The Fifticth Lakh (5 Millionth) Car Rolls Out

In April, 2005, With Overall Sales Growing By 15.8%. The 1.3 L Suzuki Swift Five-Door
Hatchback Also Appears. 2004-05 Marked Another Record Year (487,402 Domestic Sales) And
Exports Reached 48.899 Cars To About Fifty Different Countries. The United Kingdom Took

The Lion's Share. With 10,623 Deliveries.

In 2006 Suzuki And Maruti Set Up Another Joint Venture, "Maruti Suzuki Automobiles India",
To Build Two New Manüfacturing Plants, One For Vehicles And One For Engines. Cleaner
Were Also Introduced. With Several New Models Meeting The New "Bharat Stage lii"
Standards In February 2012. Maruti Suzuki Sold Its Ten Millionth Vehicle In India.

Joint Venture Related Issues

Relationship Between The Government Of India, Under The United Front (India) Coalition
And Suzuki Motor Corporation Over The Joint Venture Was A Point Of Heated Debate In The

Indian Media Until Suzuki Motor Corporation Gained The Controlling Stake. This Highly
Profitable Joint Venture That Had A Near Monopolistic Trade In The Indian Automobile
Market And The Nature Of The Partnership Built Up Till Then Was The Underlying Reason For
Most issues. The Success Of The Joint Venture Led Suzuki To Increase lts Equity From 26% To
40% In 1987, And Further To S0% In 1992. In 1982 Both The Venture Partners Had Entered
lato An Agreement To Nominate Their Candidate For The Post Of Managing Director And

Every Managing Director Will Have A Tenure Of Five Years

17
 Director Of The Company Since The Inception Of The
R.C. Bhargava Was The Initial Managing
He Is Regarded As Instrumental For The Success Of Maruti Suzuki.
Joint Venture. Till Today
In 1982 He Held Several Key Positions In The Company Before Heading The Company
Joining
On The Board Of Directors After Completing His Five-
As Managing Director. Currently He Is
Later Assumed The Office Of Part-Time Chaiman. The
Year Tenure, Mr. Bhargava
Government Nominated Mr. S.S.L.N.
Bhaskarudu As The Managing Director On 27 August
1997. Mr. Bhaskarudu Had Joined Maruti
Suzuki lIn 1983 Afier Spending 21 Years In The
Electricals Limited As General Manager. In 1987 He
Public Scctor Undertaking Bharat Heavy
He Was Named Director. Productions And
Was Promoted As Chief General Manager. In 1988

Projects. The Next Year He Was Named Director Of Materialsand In 1993 He Became
(1989)
Joint Managing Director
Suzuki Did Not Attend The Annual General Meeting Of The Board With The Reason Of t

On A Short Notice Later Suzuki Motor Corporation Went On Record To State That
Being Called
Bhaskarudu Was "Incompetent" And Wanted Someone Else. However, The Ministry Of

Industries, Government Of India Refuted The Charges. Media Stated From The Maruti Suzuki
Sources That Bhaskarudu Was Interested To Indigenise Most Of Components For The Models
Including Gear Boxes Especially For Maruti 800. Suzuki Also Felt That Bhaskarudu Was A
Proxy For The Government And Would Not Let it Increase Its Stake In The Venture. If Maruti

Suzuki Would Have Been Able To Indigenise Gear Boxes Then Maruti Suzuki Would Have
Been Able To Manufacture All The Models Without The Technical Assistance From Suzuki. Till
Today The Issue Of Localization Of Gear Boxes Is Highlighted In The Press.

Manufacturing Facilities
Maruti Suzuki Has Two Manufacturing Facilities In India. Both Manufacturing Facilities Have
A Combined Production Capacity Of 14,50,000 Vehicles Annually. During A Recent Meeting
Of The Gujarat Chief Minister With Suzuki Motor Corp Chairman & Ceo Osamu Suzuki,The
Chairman Had Said That The Work On Car Manufacturing Plant At Mandal Near Ahmedabad
Would Be Started Soon. Maruti Suzuki To Set Up Second Plant In Gujarat; Acquires 600 Acres.

The Gurgaon Manufacturing Facility Has Three Fully Integrated Manufacturing Plants And Is
Spread Over 300 Acres (1.2 Km). All Three Plants Have An Installed Capacity Of 350,000
Vehicles Annually But Productivity Improvements Have Enabled It To Manufacture 900,000

18
 Vehicles
Annualiy.. The Gurgaon Facilities Aiso Manufacture
Annually. The Entire 240.0%00
Been
Facility Is Equipped With More Than
150 Robots.
K-Seriesengines
Developed Out Of Which 71
In-House. The Have
The 800.
Alto, Wagonr. Estilo. Omni. Gypsy. Gurgaon Facilities Manufactures
And
The Manesar
Ecco.
Manufacturing Plant Was
Inaugurated In
Acres (2.4 Km*). Initiatly February 2007 And Is
Spread Over 600
It Had A
Production Capacity Of 100,000
Was Increased To Vehicles Annually But This
300,000 Vehicles Annually In
Further Increased By
October 2008. The Production
250,000 Vehicles Taking Total Production Capacity Was
Annually. The Manesar Plant Produces The Capacity To 550.000 Vehicles
A-Star, Swift, Swift Dzire, Sx4, Ritz
And
On 25 June
2012, Haryana State Industries Celerio.
And Infrastructure
Demanded Maruti Suzuki To
Pay An Additional Rs 235 Crore For
Development Corporation
For Its Enhanced Land Acquisition
Haryana Plant Expansion. TheAgency Reminded Maruti That Failure To
Amount Would Lead To Further Proceedings And Pay The
Vacating The Enhanced Land
Acquisition.
Industrial Relations
Since Its Founding In 1983, Maruti Udyog Limited
Force. The Indian Labour It Hired
Experienced Problems With Its Labour
Readily Accepted Japanese Work Culture And The
Modèrn
Manufacturing Process. In 1997. There Was A
Change In
Ownership, And Maruti Became
Predominantly Government Controlled. Shortly Thereafter. Conflict
Between The United Front
Government And Suzuki Started. Labour Unrest Started
Under Management Of Indian
Government. In 2000, A Major Industrial Relations Issue Central
Began And Employees Of Maruti
Went On An Indefinite Strike, Demanding Among Other
Things, Major Revisions To Their
Wages, Incentives And Pensions.

Employces Used Slowdown In October 2000, To Press

Revision To Their A
Pay, In Parallel, After Elections And A New Central Government Led
Incentive-Linked
By Nda Alliance India
Pursued A Disinvestments Policy. Along WithMany Other Government Owned Comnanioe
The
New Administration Proposed To Sell Part Or lts Stake In Maruti Suzuki In A
Public Ot
Worker's Union Opposed This Sell-Oft Plan On ng.
The
The Grounds That The Company Will
ecs Advantage Of Being Subsidised By The Lose
Government, And The Unian
Oetter Protection While The Company Remains in Control Of The Governpment las

19
 The Standofl Between The Union And The Management Continued Through 2001. The

Management Refused Union Demands Citing Increased Competition And Lower Margins. The
Central Government Prevailed And Privatized Maruti In 2002. Suzuki Became The Majority

Owner Of Maruti Udyog Limited.

Manesar Violence
On 18 July 2012. Maruti's Manesar Plant Was Hit By Violence As Workers At One Of Its Auto
Factories Atlacked Supervisors And StartedA Fire That Killed A Company Official And Injured
100 Managers, Including Two Japanese Expatriates. The Violent Mob Also Injured Nine
Policemen. The Company's General Manager Of Human Resources Had Both Ams And Legs

Broken By His Attackers, Unable To Leave The Building That Was Set Ablaze, And Was

Charred To Death. The Incident Is The Worst-Ever For Suzuki Since The Company Began
Operations In India In 1983.

Since April 2012, The Manesar Union Had Demanded A Three-Fold Increase In Basic Salary, A
Monthly Conveyance Allowance Of 10.000. A Laundry Allowance Of t 3,000, A Gift With
Every New Car Launch, And A House For Every Worker Who Wants One Or Cheaper Home
Loans For Those Who Want To Build Their Own Houses.Initial Reports Claimed Wage Dispute
And A Union Spokesman Alleged The Incident May Be Caste-Related. According To The
Maruti Suzuki Workers Union A Supervisor Had Abused And Made Discriminatory Comments
To A Low-Caste Worker. These Claims Were Denied By The Company And The Police. The
Supervisor Alleged Was Found To Belong To A Tribal Heritage And Outside Of Hindu Caste
System; Further. The Numerous Workers Involved In Violence Were Not Affiliated With Caste
Either. Maruti Said The Unrest Began, Not Over Wage Discussions, But After The Workers
Union Demanded The Reinstatement Of A Worker Who Had Been Suspended For Beating A

Supervisor The Workers Claim Harsh Working Conditions And Extensive Hiring of Low-Paid
Contract Workers Which Are Paid About $126 A Month, About Half The Minimum Wage Of
Permanent Employees Maruti Employees Curently Eam Allowances In Addition To Their Base
Wage. Company Execiltives Denied Harsh Conditions And Claim They Hired Entry-Level
Also
Workers On Contracts And Made Them Permanent As They Gained Experience. It Was
The Company.
Claimed That Bouncers Were Deployed By

20
 India Today Claimed Hat lts interviews of Witnesses Present At The Plant Confirms The
Dispute Was Over The Suspended Worker. The Management Insisted That They Must Wait For
Compietion Ot Inquiry Underway Before They Can Take Any Action On The Employee
Suspended For Beating Up His Supervisor. The Management Was Then Told. "You Will Be
Beaten Up After We Get A Signal." Thereafter. The Workers Broke Up Into Groups. Went On
-To Set The Shop Floor As Well As All Offices Afire. They Searched For Management Officials
And Proceeded With A Beating Of The Officials At The Site With Iron Rods

The Police. In Its First Information Report (Fir), Claimed On 21 July That Manesar Violence

May Be The Result Öf A Planned Violence By A Section Of Workers And Union Leaders. The

Report Claimed The Worker's Action Was Recorded On Close Circuit Cameras Installed Within

The Company Premises. The Workers Took Several Managers And High Ranked Management
Officials Hostage. The Responsible Special Investigative Team Official Claimed. "Some Union

Leaders May Be Aware Of The Facts. So They Burnt Down The Main Servers And More Than

700 Computers." The Recorded Cctv Footage Has Been Used To Determine The Sequence Of
Events And People Involved. Per The Fir, Police Have Arrested 91 People And Are Searching

For 55 Additional Accused.

Unrest,' Announced That All Work At The Manesar

Maruti Suzuki In ts Statement On The
A Suzuki Spokesman Said Manesar Violence Won't
Plant Has Been Suspended Indefinitely.
Affect The Auto Maker's Business Plans For india. The Shut Down Of Manesar Plant is Leading

To A Loss Of About Rs 75 Crore On 21 July 2012, Citing Safety Concems. The Company

Announced A Lockout Under The Industrial Disputes Act, 1947 Pending Results Of An Inquiry

The Company Has Requested Of The Haryana Government Into The Causes Of The Disorder.
Under The Provisions Of The Industrial Disputes Act For Wages, The Report Claimed

Are Expected To Be Paid For The Duration Of The Lockout. On 26 July 2012.
Employees
Would Not Be Paid For The Period Of Lock-Out In Accordance
Maruti Announced Employees
With IndianLabour Laws. The Company Further Announced That It Will Stop Using Contract
The Report Claimed The Salary Difference Between Contract Workers
Workers By March 2013.
Has Been Much Smaller Than Initial Media Reports The Contract
And Permanent Workers
r A t Maruti Received About 11,500 Per Month, While A Permanent Worker Received
12 500 A Month At Start. Which Increased In Three Years To <21,000-22.000 Per
Ab
Who Was Providing Contract
Report,A Contractor Employees To Maruti
Month. In A Separate

21
Claimed The Company Gave lts Contract Employees 1he Best Wage. Allowances And Bencfits
Package In The Region.

Shinzo Nakanishi. Managing Director And Chief Executive Of Maruti Suzuki India, Said This
Kind Of Violence Has Never Happened In Suzuki Motor Corp's Entire Global Operations Spread
Across Hungary. Indonesia. Spain. Pakistan. Thailand. Malaysia. China And The Philippines.
Mr. Nakanishi Went To Each Victim Apologising For The Miseries Inflicted On Them By
Fellow Workers, And in Press Interview Requested The Central And Haryana State
Governments To Help Stop Such Ghastly Violence By Legislating Decisive Rules To Restore
Corporate Confidence Amid Emergence Of This New 'Militant Workforce' In Indian Factories.
He Announcd, "We Are Going To De-Recognize Maruti Suzuki Workers Union And Dismiss
All Workers Named In Connection With The Incident. We Will Not Compromise At All In Such
Instances Of Barbaric. Unprovoked Violence." He Also Announced Marui Plans To Continue
Manufacturing In Manesar, That Gjarat Was An Expansion Opportunity And Not An

Alternative To Manesar

Labour Disputes Are Endemie In The Auto Industry Of India And Have Affected Other
Manufacturers. India Has Strict Labor Laws, But Their Application Is Widely Sidestepped By
Hiring Low-Wage Contract Workers. Manesar Violence Adds To India's Recent Incidents Of
Labour Disputes Turning To Violence. Analysts Claim Recent Incidents Like Manesar Violence
Suggest A Need For Urgent Reform Of Archaic Indian Labor Laws, The Rigid Rules On Hiring
And Layofls, Which Harm The Formal Sector And Discourage Investment In India. Government
Mandated Procedures For Labor Dispute Resolution Are Currently Very Slow, With Tens Of
Thousands of Cases Pending For Years. The Government Of India Is Being Asked To
Recognize That Incidents Such As Manesar Violence Indicate A Structural Sickness Which Must

Be Solved Nationally.

The Company Dismissed 500 Workers Accused Of Causing The Violence And Re-Opened The
Plant On 21 August, Saying lt Would Produce 150 Vehicles On The First Day, Less Than 10%

of Its Capacity. AnalySts Said That The Shutdown Was Costing The Company 1 Billion Rupees
The Company Market Share.
(S18 Million) A Day And Costing
Officials Had Announced That Maruti Would Scrap The Practice
The Previous Week Company
And That The Workers Currently On Temporary Contracts Would
or Hiring Contract Workers

22
 ProductAndServices

Current Models

Model Launched Category Image

Omni 1984 Minivan

Gypsy 1985 Suv

Wagonr 1999 Hatchback

Swit 2005 Hatchback

24
 Sx4 2007 Sedan

Grand Vitara 2007 Mini Suv

Swift Dzire 2008 Sedan

Ritz 2009 Hatchback

Eeco 2010 Minivan

Alto K10 2010 Hatchback

Kizashi 2011 Sedan

25
Ertiga 2012 Mini Mpv

Alto 800 2012 Hatchback

Stingray 2013 Hatchback

Celerio 2014 Hatchback

26
 Discontinued Models

Model
Launched Discontinued
Category Image

Gypsy E 1985 2000 Suv

1000 1990 2000 Sedan

Zen 1993 2006 Hatchback

Esteem 1994 2008 Sedan

1999 2007 Sedan

Baleno

2010 Minivan
2001
Versa