A SYNOPSIS ON

“EMPLOYEE RELATION”
AT
“HYUNDAI MOTORS LTD”
BY
T. LAXMAN
(HALL TICKET NO: 2129-21-672-092)
Synopsis for project to be submitted for the award
of the degree of
MASTER OF BUSINESS ADMINISTRATION
OSMANIA UNIVERSITY
2021-2023

AURORA’PG COLLEGE, NAMPALLY

INTRODUCTION
Employee Relations involves the body of work concerned with maintaining employer-

employee relationships that contribute to satisfactory productivity, motivation, and morale.

Essentially, Employee Relations is concerned with preventing and resolving problems

involving individuals which arise out of or affect work situations.

Advice is provided to supervisors on how to correct poor performance and employee

misconduct. In such instances, progressive discipline and regulatory and other requirements

must be considered in effecting disciplinary actions and in resolving employee grievances

and appeals. Information is provided to employees to promote a better understanding of

management's goals and policies. Information is also provided to employees to assist them in

correcting poor performance, on or off duty misconduct, and/or to address personal issues

that affect them in the workplace. Employees are advised about applicable regulations,

legislation, and bargaining agreements. Employees are also advised about their grievance

and appeal rights and discrimination and whistleblower protections.

Employee Relations is a leading international academic journal focusing on the importance of

understanding and merging corporate, management and employee needs to achieve optimum

performance, commitment and effectiveness, addresses research, practice and ideas about

relationships between employments. International issues are covered in all areas of HR and

industrial relations. A stringent double-blind review of each paper is undertaken to ensure its

relevance and validity.

Coverage

 Communication, participation and involvement

 Developments in collective bargaining

 Equal opportunities

 Health and safety

  HRM

 Industrial relations and employment protection law

 Industrial relations management and reform

 Organizational change and people

 Personnel and recruitment

 Quality of working life

Topicality

Today's turbulent business environment makes increasing demands on managers and

workforces, as competitive standards rise and expectations of individuals increase. Managers

must respond positively to changes in contemporary workforce attitudes if they are to get the

performance levels they need.

Key Benefits

The journal addresses key issues through authoritative, refereed papers by distinguished

international academics and practitioners, Internet site critiques and publications. It suggests

alternative strategies for improving working conditions and developing constructive

relationships between managers and workforce.

THEORETICAL REVIEW
Employee relations can make or break an organization. Great employee relations will make a
business successful in the long run. A good understanding between employees and employers
is important to reduce industrial disputes.
A positive relationship between employers and employees leads to higher motivation and
employee engagement. When employees are happy, they are more productive. They will put
more effort into their work, and this translates into satisfied customers and more
revenue. While developing and maintaining good employee relations can be challenging in
most workplaces, healthy relationships among workers are beneficial not only to the
individuals but to the entire organization. Managers should set a good example when it comes
to employee relations. Managers who have a good working relationship with their employees
help establish a culture that encourages great employee relations.
Establishing and strengthening the employee and employer relationship can be achieved by
measuring employee satisfaction, identifying and resolving workplace issues, and providing
input and support to the performance management system of the company. The most
successful organizations around the world are those that pay attention to labor management,
creating an environment where the employees can use their skills to the fullest. It is only
when employees feel that their contribution is valued and respected that such an environment
is created. Workers who don’t get any recognition for their efforts are much more likely to
become disillusioned. Organizations that invest in good employee relations, however, can
witness numerous benefits.
1. Growth and Development
A harmonious relationship between employees and employers contributes to economic
growth and development, which then leads to an increase in efficiency. Greater efficiency, in
turn, leads to higher productivity and growth. It is important to keep the employees motivated
if organizations want to get the best from them. Workers lacking in motivation will reduce
productivity in a workplace.
When employees have a positive relationship with their managers, they will work more
efficiently. They will put their best efforts (not the minimum effort) to ensure the success of
the project. Organizations that have harmonious relationships will be able to ensure
continuity of production. Proper use of resources ensures maximum production. Employees
will be motivated to work hard, and this will help the organization grow.
2. Reduction in Turnover
Employee relations are the backbone of any business. Poor employee relations will affect
productivity and result in high employee turnover. It is only when employees feel valued that
they will use their skills and experience to the fullest to contribute to the growth of the
company.
Organizations that have good employee relations provide higher wages and other attractive
benefits, making it in the best interest of the employee to stay. Even if the employee is not
100% satisfied with their company, they are less keen to suddenly abandon a company for
another when they are happy with their work environment. A pleasant work environment
improves employee morale and motivation.
Most employees who work in companies are in the high-retention-risk category. The critical
skills that they possess help the company progress, and the cost of replacing a skilled
employee can be extremely high.
Employees are less likely to leave an organization, however, if those skills are recognized and
rewarded.
It is the responsibility of the company to create an engaging work environment to make the
employees feel valued. The cost of recruitment, hiring, and training will come down with
lower employee turnover.
3. Employees Have Extensive Knowledge of Company Practices
The reduction in turnover ensures that employees stay with a company for longer, which
enables them to gain extensive knowledge of company policies, practices, and
processes. Employees with substantial institutional knowledge are an excellent resource.
They are highly skilled, very efficient, and can provide training for new employees. Most
companies find it hard to replace experienced employees, and this is especially true in
industries that rely on employees with highly specialized skills.
4. Enhanced Motivation
Disengaged employees can cost organizations millions of dollars in lost productivity.
Companies that have engaged workers experience higher productivity. Organizations need to
ensure that their workers feel empowered and appreciated to increase morale and motivation.
REVIEW OF LITERATURE
ARTICLES ON EMPLOYEE RELATIONS

Article:01

Title: Mediating role of employee relations climate between strategic-HRM and

organizational performance

Author: Muhammad Ali

Journal: Journal of Innovation & Knowledge

Year and Date of publications: Dec 2016

Abstract: tIn today’s business environment, the need to establish a positive climate is
increasinglycritical for organizational growth and performance. In that particular scenario,
employeerelations climate (ERC) is an important aspect that creates a social atmosphere,
whichreflects high involvement and employee-centered culture, in response, employees feel
com-fortable and makes a valuable addition toward organizational performance. The purpose
ofthis study was to examine the mediating effect of employee relations climate between
thebundle of strategic human resource management (SHRM) practices and organization per-
formance in Chinese banking sector. Given the tough competition in the service industry, itis
increasingly significant for the banking sector to understand employee relations climate,and
how HR practices affect performance of the organization and employee relations climatethat
best fulfill the needs of the organization. To test these relationships, we have conducteda
survey of Chinese banks, situated in Shanghai zone. For data collection, senior
employeeswere invited to respond a survey questionnaire. To examine the hypothesis and
measure-ment validity, a confirmatory factor analysis (CFA) and SEM technique via AMOS
18.0 wereused. The results of this study indicate that the bundle of strategic human resource
manage-ment has a positive significant relationship with operational performance.

Keywords: Employee relations, Communication, Working conditions

Article:02
Title: An Analysis of the Factors Affecting Employee Relations
Author: Emily Atieno Odhong

Journal: International Journal of Business and Social Science

Volume:04

Issue:11

Year and Date of publications: Oct 2014

Abstract: Despite impressive performance and contribution to national economy, the flower
industry in Kenya is still faced with decent work deficits. These could be manifested in the
terms and conditions of employment leading to industrial unrest in organizations within the
flower industry. Trade Union membership has been shown to be low, with membership in the
main union at just 17% of the total number of workers in flower farms. The effect of weak
employee and industrial relations system and practice is manifested in the increase in the
spate of industrial strikes and attendant man-days lost. The number of man-days lost due to
industrial strikes almost doubled from 14,806 man-days in 2008 to 25,504 man-days in 2010.
This, however, increased tremendously by about sevenfold to 175,329 in 2011. Other effects
are seen in declining labour productivity in all sectors of the country’s economy, example,
declined from 4 per cent in 2007 to 1.4 per cent in 2012. This paper sought to analyze factors
affecting employee relations in organizations in Kenya, the case study of Waridi Ltd. Study
variables included working conditions, communication, collective bargaining issues,
recruitment and remuneration. The study adopted descriptive research design and a target
population of 420. Stratified random sampling was done. Questionnaires were used to collect
primary data. Qualitative and quantitative techniques of data analysis were employed. Based
on the study findings, it is concluded that free communication and information flow is
important in promoting employee relations. Collective bargaining provides the structure for
clear job description and work performance. Overall, employee relation concepts such as
employee trust, the manner in which employee complaints are dealt with, commitment to the
organization, genuine social dialogue and existence of team spirit are fundamental in
promoting good employee relations.

Keywords: Employee relations, Collective Bargaining Agreement, Communication, Working

conditions
Article:03

Title: Management-Employee Relations,Firm Size and Job Satisfaction

Author: Aysit Tansel

Journal: Management-Employee Relations

Volume:05

Issue:12

Year and Date of publications: Mar 2013

Abstract: This paper investigates the job satisfaction in relation to managerial attitudes
towards employees and firm size using the linked employer-employee survey results in
Britain. We first investigate the management-employee relationships and the firm size using
maximum likelihood probit estimation. Next various measures of job satisfaction are related
to the management-employee relations via maximum likelihood ordered probit estimates.
Four measures of job satisfaction that have not been used often are considered. They are
satisfaction with influence over job; satisfaction with amount of pay; satisfaction with sense
of achievement and satisfaction with respect from supervisors. Main findings indicate that
management-employee relationships are less satisfactory in the large firms than in the small
firms. Job satisfaction levels are lower in large firms. Less satisfactory
managementemployee\ relationships in the large firms may be a major source of the observed
lower level of job satisfaction in them. These results have important policy implications from
the point of view of the firm management while achieving the aims of their organizations in
particular in the large firms in the area of management-employee relationships.

Keywords: job satisfaction, managerial attitudes, firm size, linked employer-employee

data, Britain
STATEMENT OF PROBLEM
Poor communication, unfair treatment, misunderstandings and cultural differences may cause
tension in the workplace. Over time, these issues can escalate and cause conflicts, affecting
employee motivation and productivity. As a business owner, it's important to acknowledge
that your employees have different personalities and needs. No matter how hard you try, you
can't please everyone.
NATURE FOR STUDY
Employer-employee relations are the outcome of the employment relationship in industry.
These relations cannot exist without the two parties—employer and employees.” It is the
industry which provides the setting for employer-employee relations. Employer-employee
relations include both individual relations as well as collective relations. Individual relations
imply relations between employer and employees. Collective relations mean, relations
between employers’ associations and trade unions as well as the role of the State in regulating
these relations. The concept of employer-employee relations is complex and multi-
dimensional. The concept is not limited to relations between trade unions and employer but
also extends to the general web of relationships between employers, employees and the
Government. It covers regulated as well as unregulated, institutionalized as well as individual
relations. These multi-pronged relationships may be in organized or unorganized sector.
NEED OF THE STUDY
A common place that we see the need to apply Relations is in the work place. In the work
force, we can see Relations play a key role in leadership success. A person unable to grasp
Relations and apply it, will not become or stay a leader. It is critical that anyone seeking to
lead or Relations understand "Howletts Hierarchy of Work Motivators."
Salary, benefits, working conditions, supervision, policy, safety, security, affiliation, and
relationships are all externally motivated needs. These are the first three levels of "Howletts
Hierarchy" When these needs are achieved; the person moves up to level four and then five.
However, if levels one through three are not met, the person becomes dissatisfied with their
job. When satisfaction is not found, the person becomes less productive and eventually quits
or is fired. Achievement, advancement, recognition, growth, responsibility, and job nature are
internal motivators. These are the last two levels of "Howletts Hierarchy." They occur when
the person motivates themselves (after external motivation needs are met.) An employer or
leader that meets the needs on the "Howletts Hierarchy" will see motivated employees and
see productivity increase. Understanding the definition of motivation, and then applying it, is
one of the most prevalent challenges facing employers and supervisors. Companies often
spend thousands of dollars each year hiring outside firms just to give motivation seminars.
OBJECTIVES OF THE STUDY
1. To find out the present Relations level of the employees.
2. To find out the blockages for the Relations (i.e: disciplined).
3. To suggest measures for improvement of the Relations as a discipline Point;
4. To study the hygienic and Relational content factors.
SCOPE OF THE STUDY
 The study is confined and relevant only to HYUNDAI MOTORS LTD not applicable to
any organization.
 The study covers motivational practices in HYUNDAI MOTORS LTD at various levels
of employees.
 The study assists the management in determining the decision regarding the performance
of the employee.
RESEARCH METHODOLOGY
The basic principle in the research has been adopted in the overall methodology. The
following methodology has been used for meeting the requirements,
 Defining objectives
 Developing the information sources
 Collection o information
 Analysis of information
 Suggestion
The methodology followed for collection, analysis under interpretation of data in
explained below.
1. RESEARCH DESIGNS
There are generally three categories of research based on the type of information required,
they are
1. Exploratory research
2. Descriptive research
3. Casual research
The research category used in this project in descriptive research, which is focused on
the accurate description of the variable in the problem model. Consumer profile studies,
market potential studies, product usage studies, Attitude surveys, sales analysis, media
research and prove survey s are the,
Examples of this research. Any source of information can be used in this study
although most studies of this nature rely heavily on secondary data sources and survey
research.
2. Primary Source: Discussions with plant staff, Interviews, Questionnaire administered.
3. Secondary Source: Journals Magazines and articles from prominent newspapers.
Population and Sample: There are 140 Officers & Supervisors and 100 Managerial staff .The
questionnaire is administered to 50 Officers and Supervisory staff and 50 Managerial staff.
3. SAMPLE DESIGN
a) Sampling unit: the study is directed towards the executive of managerial level.
b) Sample size: sample size of 100 is taken in this study
4) DATA ANALYSES
Simple analysis method is followed for analyzing the data pertaining to different dimensions
of employees. Simple statistical data like percentage are used in the interpretation of data
pertaining to the study. The results are illustrated by means of bar charts.
LIMITATION
There are certain limitations of the concept of empowerment. It may be cost consuming in
selecting personnel, training costs and labor costs may be high, it may result in slower or
inconsistent services and poor use of the technique of empowerment.
At the outset, Managers must also accept the fact that not all employees want to be
empowered. Many workers just work better in jobs that are clearly defined and closely
supervised. Once both employees and managers have received proper training, the next step
is go give employee’s control of the resources needed to make the improvements in their job
and work processes.
By giving employees information, resources and training and by following with
measurements and reinforcement, Human Resources can create an empowered environment.
But Empowerment should be continuous process like quality improvement and it is like a
race without a finish line. Those companies that take the first step by creating an
environment conductive to empowerment will be at the head of the pack.
 NDUSTRY PROFILE
Introduction
The automobile industry is one of India’s most vibrant and growing industries. This industry
accounts for 22 per cent of the country's manufacturing gross domestic product (GDP). The
auto sector is one of the biggest job creators, both directly and indirectly. It is estimated that
every job created in an auto company leads to three to five indirect ancillary jobs.
India's domestic market and its growth potential have been a big attraction for many global
automakers. India is presently the world's third largest exporter of two-wheelers after China
and Japan. According to a report by Standard Chartered Bank, India is likely to overtake
Thailand in global auto-export market share by the year 2020.
The next few years are projected to show solid but cautious growth due to improved
affordability, rising incomes and untapped markets. With the government’s backing, and
trends in the international scenario such as the decline in prices of natural rubber, the Indian
automobile industry is slated to witness some major growth.
Market size
The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry
during the period April 2000 – August 2014 was recorded at US$ 10,119.68 million, as per
data by Department of Industrial Policy and Promotion (DIPP).
Data from industry body Society of Indian Automobile Manufacturers (SIAM) showed that
137,873 passenger cars were sold in July 2014 compared to 131,257 units during the
corresponding month of 2013. Among the auto makers, Maruti Suzuki, Hyundai Motor India
and Honda Cars India emerged the top three gainers with sales growth of 15.45 per cent, 12
per cent and 11 per cent, respectively.
The three-wheeler segment posted a 24 per cent growth to 51,461 units on the back of
increased demands from the urban market. Total sales across different vehicle segments grew
12 per cent year on year (y-o-y) to 1,586,123 units.
Scooter sales have jumped by 29 per cent in the ongoing fiscal, and now form 27 per cent of
the total two-wheeler market from just 8 per cent a decade back. The ever-rising demand for
scooters, which has far outstripped supply has prompted Honda to set up its first dedicated
scooter plant in Ahmedabad.
Tractor sales in the country is expected to grow at a compound annual growth rate (CAGR)
of 8–9 per cent in the next five years making India a high-potential market for many
international brands.
LAKSHMI HYUNDAI

HISTORY:

The Company is an authorized Dealer of Hyundai Motors India Limited (HMIL) for sale of
its entire range of motor vehicles. It is also authorized to service & repair of all Hyundai cars
and also deals in spare parts of Hyundai cars.

Lakshmi Hyundai was established in the year 1998 in Himayathnagar with the launch of
Hyundai’s first car in India- the evergreen SANTRO. The entire business is managed under
the able leadership and guidance of the managing Director Shri K.Rama Mohana Rao.

Soon after the Himayathnagar showroom, came up the ‘state-of-art service facilities at
Kukatpally, Banjarahills and L.B.Nagar. These service centers are well equipped to cater to
the needs of valued customers. The management left no stone unturned to review, research
and implement the latest of technologies and methodologies to improve on the sales, service
on the customer satisfaction. Continuous up gradation of the facilities at the sales and service
outlets and adding to the service agenda each time, add been sales graph go high by the year.

FACILITIES:

The main aspects of car shopping are sales facility equipped with amicable sales consultants,
after sales service, customer friendly schemes, easy finance options, speedy delivery,
exchange option apart from mandatory formalities such as registration, insurance, tax
payments and accessories loading, etc., each of these aspects are attended to utmost concern
at Lakshmi Hyundai.

SUCCESS:

The resounding success of Lakshmi Hyundai makes one wonder as to how the company
ascended such great heights in such short span of time? The answer is very simple:
“continuously striving for customer satisfaction by the way of every effort in that direction is
what brought Lakshmi Hyundai to the top position today. This struggle for excellence was
recognized at a very high level.
AWARDS:

The awards received for “Best in sales” in south region, “Best in finance ”, “Top performer ”
in 2005 and their technicians being awarded with a Gold Medal for standing No.1 in the
world at World skill Olympics held at Korea-stand testimony to the recognition that received
at the global level.

According to the popular belief, a customer walking into LAKSHMI HYUNDAI is treated
like an asset. His/her needs are assessed in the first stage and the customer is educated
subsequently about the product line, service range, allied services, etc., ample information
and time is given to the prospective buyer to make up his/her mind on which car to buy.
Totally focused customer centric approach, unparalleled service motto, top-end facilities,
bouquet of allied services, solid after sales backup, quality assurance, unconditional warranty
promise and desire to excel through service are some of the threads which blend in
effectively to give birth to the fabric called LAKSHMI HYUNDAI.