SUMMER TRAINING PROJECT REPORT

ON
“RECRUITMENT AND SELECTION PROCESS
IN MARUTI”

IN THE PARTIAL FULLFILLMENT OF AWARD OF

DEGREE OF
MASTER OF BUSINESS ADMINSTRATION
BATCH (2013-15)

1
 DECLARATION

I, Mariyam Khan hereby declare that the project titled “RECRUITMENT AND
SELECTION PROCESS IN MARUTI” is my own work and efforts which is
completed under the supervision of Ms. Purnima Raina (Head of the Department).

The Research report has been submitted to CMD Modingar for the purpose of the
compliance of any requirement of any examination or any degree earlier.

Mariyam Khan
Roll No. 2211890700015
MBA – IV Sem

2
 ACKNOWLEDGEMENT

It is my pleasant duty to offer my service acknowledgement to those honorable

personalities of the department who have been a constant source of help and
encouragement in carrying out this research.

First of all I wish to express my indebtness to Ms. Purnima Raina (Head of the
Department), for his valuable suggestions and guidance throughout the Research.

I would like to mention few names, which helped me a lot with their valuable suggestion
and information to complete the research.
My sincere thanks to all faculty and friends who helped me knowing the south Delhi
market and then exploring the market this was vital for the surveying the markets and
generating new demands, which we were asked to do.
At last I feel extremely grateful to all those persons who helped me directly or indirectly
in doing the survey, generating demand and preparing the report.

Mariyam Khan

3
 PREFACE

The purpose of my research report was to learn the practical application of Recruitment
and Selection Process and its importance in Maruti along with the HR policies of Maruti
which prides itself to be the market leader.
While carrying out the study I have gained a good amount of knowledge and insights of
how HR department works but I have touched the tip of iceberg. There was more to learn
but due to constraint of time it was not possible. The HRD manager has to work with the
missionary spirit. Unlike many roles in an organization where tangible short- term
benefits can be obtained, it is difficult for HRD functionary to demonstrate any tangible
short- term accomplishment. Yet HRD managers are tempted to show to the top
management, line manager and themselves that they are making things happen through
training program, recruitment& selection.
In Maruti a meticulously natural team stands at the very heart of the group. 4,000
Personnel evince perfect camaraderie. A steadfast dedication to qualify an attainment of
maximum team potential is the touchstones of the company.
The company is engaged in constant learning process through intensive selection and
training program. Indeed, the aspiration is to shape a winning team of self motivated,
empowered, professionals with knowledge and confidence to take independent decision.
Maruti recognizes each employee’s individuality, ability and efforts and also applauds for
their contribution to the success of the group.

4
 CONTENTS

TOPIC

1. Executive summary 6

2. Introduction 8

3. Objective of study 9

4. Scope of the study 10

5. Recruitment & Selection 11

6. Company profile 15

7. Research methodology 53

8. Data analysis 57

9. Findings 70

10. Recommandations and Suggestions 72

11. Limitations 74

12. Conclusions 75

13. Bibliography 78

14. Questionnaire 79

15.

5
 EXECUTIVE SUMMARY

The recruitment and selection procedure of the company determines the level of
achieving organizational goals in the long run. As per definition it is stated that which is
all about selecting right person for the right job at the right time at the best possible
position. Although it sounds quite simple but it is also not an easier job to evaluate a
person with his ability and skills that may satisfy the core competency for the job so that
his degree of willingness to pursue a job becomes positive. From job seeker’s prospective
it is the core competencies, which matter much for a job. So it is the effective recruitment
and selection procedure, which determines not only the right candidature for a job but
also a long-term accomplishment of organizational goals.

I have choosen Maruti for studying their methods of recruitment and selection function.
In the course of study I came to know that, it has the probability of achieving more than
50% of the people to be placed for the right job, which reflects some of the unique ways
for recruiting the candidates to fill up various vacancies.

The aim of the company is to achieve overall organizational goal not only by way of
fulfilling the targeted top-line but also employee satisfaction towards various position of
job to the maximum level. This I will see as I proceed subsequently in my Research.
Basically recruiting is the discovering of potential candidates for actual or anticipated
organizational vacancies. It also can be said in another way that bringing together those
with jobs to fill and those seeking jobs.
It is important to study Recruitment and Selection because through it I can identify our
human resource needs. I can know what kind of people must be select to fill up the
specified vacancies.

The ideal recruitment effort will attract a large number of qualified applicants who will
take the job if it is offered. It should also provide information so that unqualified

6
applicants can self select themselves out of job candidacy, that is, a good recruiting
program should attract the qualified and not attract the unqualified.
Recruiting people is done by various ways, for the study first I have to know the
recruiting sources. There are internal and external sources as well as employee
referrals/recommendation.

In this Research I am studying recruitment and selection process of Maruti. To find out
actual recruitment and selection process of Company is my main objective of study.
Through this kind of surveys I will be able to achieve real recruitment program of the
company where for all kinds of operational level technical qualification is needed. I also
have the picture of Selection cost of the company. It is very interesting to study
recruitment and selection process as it will give me clearer picture of the process.

7
 INTRODUCTION

The recruitment and selection procedure of the company determines the level of
achieving organizational goals in the long run. As per definition it is stated that which is
all about selecting right person for the right job at the right time at the best possible
position. Although it sounds quite simple but it is also not an easier job to evaluate a
person with his ability and skills that may satisfy the core competency for the job so that
his degree of willingness to pursue a job becomes positive. From job seeker’s prospective
it is the core competencies which matter much for a job. So it is the effective recruitment
and selection procedure which determines not only the right candidature for a job but also
a long-term accomplishment of organizational goals.

In my research as I go further I come to know the different techniques adopted by

the software company towards this effect. I have chosen BEHL, for studying their
methods of recruitment and selection function. In the course of my study I came to know
that, it has the probability of achieving more than 50% of the people to be placed for the
right job, which reflects some of the unique ways for recruiting the candidates to fill up
various vacancies.
The Marutim of the company is to achieve overall organisational goal not only by way
of fulfilling the targeted top-line but also employee satisfaction towards various position
of job to the maximum level. This I will see as I proceed subsequently in my Research.

8
 OBJECTIVE OF STUDY

The basic objective of this report is to “Recruitment and selection process

In Maruti”. Following fundamental objectives have been identified as the
sub-objectives of the study:-

1. To study the identity of the recruitment & selection process in the

organization as a whole.

2. To find out the employees as per company’s vacancies.

3. To find out the various sources of advertisement of vacancies like-

media (electronic or paper or both), schools, posters etc.

4. To study the work environment and select the pattern of interview,

which can help out to select the suitable employee for the

organization.

5. To study the interpersonal relationship.

9
 SCOPE OF STUDY

The scope of study is to observe the degree of satisfaction levels of the employer as well
as the employees towards the process of recruitment and selection techniques adopted by
the company. It will also show the deviations if any, towards this affect that will be
experienced in research. Apart from getting an idea of the techniques and methods in the
recruitment procedures it will also give a close look at the insight of corporate culture
prevailing out there in the organization. This would not only help to aquanaut with the
corporate environment but it would also enable to get a close look at the various levels
authority responsibility relationship prevailing in the organization. Also the stipulated
time for the research is insufficient to undergo an exhaustive study about the topic
assigned and moreover the scope of the topic (recruitment and selection) is wide enough,
so it is difficult to cover all the topic within the stipulated time.

10
 RELEVANCE OF RECRUITMENT AND SELECTION
PROCEDURES IN HR

Recruitment and selection procedure is a vital factor of an organization. If it is not done

properly the production procedure will be hampered. Hence productivity will fall down.
So the organization will be in trouble and it will affect the employer- employee
relationship. So recruitment and selection procedure should be done in proper and correct
manner. The new candidates should replace the vacant post so that the production of the
company does not hamper. By this the productivity will increase and the organization
will profit. So the employer will be happy and will not hesitate to distribute bonus and
increments to the workers. The workers will also be more motivated to work. Hence there
will be harmonious relationship in the organization. It will also stabilize the organization
in the long run.

11
 WHY I CHOSE RECRUITMENT AND SELECTION FOR
MY STUDY - Justification

Basically recruiting is the discovering of potential candidates for actual or anticipated

organizational vacancies. It also can be in another way that bringing together those with
jobs to fill and those seeking jobs.

It is important to study Recruitment and Selection because through it I can identify our
human resource needs. I can know what kind of people must be select to fill up the
specified vacancies.

The ideal recruitment effort will attract a large number of qualified applicants who will
take the job if it is offered. It should also provide information so that unqualified
applicants can self select themselves out of job candidacy, that is, a good recruiting
program should attract the qualified and not attract the unqualified.

Recruiting people is done by various ways, for the study first I have to know the
recruiting sources. There are internal and external sources as well as employee
referrals/recommendation.

In this Research I am studying recruitment and selection process of MARUTI, Haridwar.

To find out actual recruitment and selection process of Company is my Maruti objective
of study.

Through this kind of surveys I will be able to achieve real recruitment program of the
company where for all kinds of operational level technical qualification is needed. I also
have the picture of Selection cost of the company. It is very interesting to study
recruitment and selection process as it will give me more clearer picture of the process.

12
 THEORETICAL OVERVIEW

Recruitment is the discovering of potential applicants for actual or anticipated

organisational vacancies. managers in determining recruiting sources such as image of
the organisation, internal policies, attractiveness of the job, union requirements,
government requirements and recruiting budgets.

Popular sources of recruiting employees include internal search, advertisements,

employee referrals, employment agencies, schools, colleges and universities;
professional organisations and casual or unsolicited applicants. In practice,
recruitment methods appear to vary according to job level and skill.

Proper selection can minimise the costs of replacement and training, reduce legal
challenges, and result in more productive workforce. The primary purpose of selection
activities is to predict which job applicant will be successful if hired. During the selection
process, candidates are also informed about the job and the organisation.

The discrete selection process would include the following: initial screening interview,
completion of the application form, employment tests, comprehensive interview,
background investigations, physical examination and final employment decision. In
the discrete selection process, an unsuccessful performance at any stage results in the
rejection of the applicant.

An alternative to the discrete selection process is the comprehensive approach, where

all applicants go through every step in the selection process and the final decision is
based on a comprehensive evaluation of the results of each stage. To be an effective
predictor, a selection device should be reliable, valid and predict a relevant criterion.

Selection devices provide managers with information that will help them predict whether
an applicant will prove to be a successful job performer. The application blank is

13
effective for acquiring hard biographical data, while the weighted application can provide
information for predicting job success.

Traditional tests that assess intelligence, abilities and personality training can predict job
proficiency but suffer from being non-job related. On the other hand, interviews
consistently achieve low marks for reliability and validity. Background investigations
are valuable when they verify hard data from the application, although they offer little
practical value as selection devices. Physical examinations are valid when training
physical characteristics are required to be able to perform a job effectively.

14
COMPANY
PROFILE

15
 INTRODUCTION OF THE COMPANY
Maruti udyog Limited (MUL) was established as a government Company in Feb. 1981.

A Licence and a joint venture agreement was signed Suzuki with Suzuki Motor
Company of Japan in Oct 1982. by which Suzuki acquired 26% share of the equity with
an option to increase it to 40 in Suzuki Motor Corporation increased its equity to -40% in
1989 and further to 50% in the year 1992. converting Maruti in to none government
company Maruti is total equity is Rs. 1322.92 million Maruti udyog limited socially
conscious and responsible corporate (citizen is the market leader in the domestic car
market and does India proud by exporting cars to over 100 countries around the world
including most advanced western I European markets. MUL has revolutionized the
Indian automobile and component industry and has set standards in quality of product
and service.

MODERNIZATION INDIAN AUTOMOBILE INDUSTRY.

Production of fuel-efficient vehicles to conserve scarce resources.
Production of large number of motor vehicles which necessary for economics growth.

16
 INDIAN AUTOMOBILE INDUSTRY A REVIEW

The Indian automobile industry is too very Large extent, dominated by the four wheeler
sector-comprising 12 in manufactures (at present).the passenger can senior mostly
dominated b four companies namely MU0I.. PAL.. HML, and TELCO among \Which
MUL is in the lead, with a market share of nearly 75 percent. The growth in the car sector
has been to the extent of 20 percent during the last year, which was in continuum from its
previous year. Thus leaving the Indian roads with almost 35-4O percent more four-
wheeler vehicles within a span of 2 year. Flee A I A M expects the car production to rise
to 520.00(1 units by the year 2000 and to 750,000 units by 2005.
The two-three wheeler sector comprises of over 13 manufacturers with installed capacity
of about 3,544,000 units and Bajaj Auto dominating the market with a share of about 48
percent. As with the rest of the automobile industry, the two and the three wheelers sector
have been notching up excellent results. NO with the easy availability of finance and a
spurt in demand as there is a growing need for personal transport, the stage is set for four
wheeler.

Manufactures to cash in on the expending demand in the current financial year there has
been unprecedented growth of 22 present over the previous year. Further. This trend is
expected I continues at 15 percent over the next two year with more emphasis being put
on the low cc (50-100) two wheelers, the market is becoming more and more crowded
with stiff competition between Bajaj Autos Sunny and TVS’s Scooty. Company are
coming up with new ranges more frequently than in the previous years. A Rs. 250 crore
expansion plan is on the anvil with ten new scooter models slated to he launched in the
next three years. In the motorcycles segment a hoot race is being contested between Bajaj
Auto. Hero Honda and Escorts. In the mopeds segment. ‘TVS leads the pack followed by
Majestic Auto and Kinetic Engineering. The three wheeler sector too has been
remarkable recovery in the past 2-3 years to the extent of recording a 57 percent growth
with total sales of 1 13.704 units in 1994-95.

17
The market in this segment is being led by Bajaj Auto in a nearly monopolistic
environment with a market share of 90 percent. However the growth in the coming years
is expected to stabilize at around 15 percent. The three wheeler is being recognized as
Ashok Nangia economical, cost effective and convenient mode of transport, when
compared not only with taxis and Mini trucks but even with public transport, for short
distances.
The heavy, medium and light commercial vehicles (HCV/MCV/LCV) sectors comprise
TELCO and Bajaj Tempo. The record for this sector are similar to the car sector. With
Ashok Nangia average figure of 20 percent, the HCVs and MCVs outpaced the growth
of the LCVs at comparative levels of 94,000 and 87,000 units respectively. The new
infrastructural Researchs, additional capacities in steel and cement plans, prospective
privatization of public transport arc expected to spur demand for the HCVs. The scales
are increasingly tilting in favors of HCVs from HCVs clue to benefits like lower
transportation costs per ton. Better Maneuverability and improved consumer goods
transportation. In the MCV segment, TELCO holding a 66 percent market share is best
geared to meet the growing demand with its plans to increase capacities. Ashok Leyland
too is doing well in the MCV segment. In the LCV segment, the total sales amounted to
82.353 units where TELCO’s market share is 52 percent. However. LCVs made with
Japanese collaboration are under immense pressure because of the escalation in the yen
and countervailing duties

Imposed on imported components on the whole. This sector of the industry

has been consolidating its position in the few years .

18
 GROWTH PROSPECTS OF THE AUTOMOBILE_

INDUSTRY
The Indian economy is now at a take-off stage and is taking rapid strides towards high
quality goods needed to meet intense global competition. The growth of the Indian
automobile industry in the next 5-10 years is expected to be exponential. Major growth
has been forecast in all sectors of this industry.

The optimism has been triggered off by the deliquescing of the sector.

Aided by positive macro-economic factors in the economy as a whole, growth rates of 15

percent in the two/wheelers and twelve percent in the four wheeler sector are expected by
the turn of this century.

The car market is expected to dominate the Indian automobile industry in the years to
come while India moves towards attaining the status of a developed country. The demand
for the car at the point of its entrance into the market will dominate the future outlook.

Consumers are expected to move up from scooters and motorcycles to passenger cars.
Passenger’s car sales. on the whole, are expected to increase from 183.000 units in 1994
to 432,000 units by 2000 and 611,000 by 2005. It is a known fact that already has n
significant position ‘in world terms’ as a heavy truck producer. Whole production is
expected to grow from 70,000 units in 1994 to 1.22 lakhs units by 2005 with participation
from TELCO and Ashok Leyland. Resides, India is one of’ the largest producers of’
motorcycles whole production is expected to grow by 250% to 5.4 million units by 2005.
Amidst this entire boom, the only exception is the jeep. At the level of 50,900 sales of
jeeps for the previous years have virtually defied the industry-wide growth, growing just
above 2.9 percent in the last year. With only 10-15 percent being sold to individuals, the
bulk of the buying is by the government and other institution which are facing resource
crunch. So, the only source for growth can be exports.

19
EMERGING TRENDS IN THE AUTOMOBILE INDUSTRY

Things have been consistently changing over the past few years in this industry, several
world brands. Which one saw only in glossy magazines or on the TV in the past are
making a beeling to enter to enter the country. Many of the current collaborators have a
majority share holding in the collaborations. Collaborators are willing to hold the hands
of the Indian manufacturers in the export markets. In fact, the focus of the new generation
of collaborations is to build technological capabilities in the Indian automobile industry.

In 1993 the worlds largest car market, Genera) Motors, signed up with Hindustan Motors
for assembling one of its German products-the Opel Astra. French giant Peugeot has
joined hands with Premier Automobiles to make Peugeot 309 and Britain’s car major
Rover has tied up with Bangalorc-hascd small-timer Sipani Automobiles, to assemble the
Rover Montego. Mahindra and Mahindra have embarked upon the process of’ assembling
Chrysler’s Jeep Cherokee, using its new Peugeot engine and gear box, ‘TELCO has
finally signed up with Dailmer-Benz for manufacture of the Mercedes-Benz. DCM has
tied up with the emerging South Korean car maker, Deawoo. All this is not surprising,
considering the fact that the car manufacturing sector – one of the last to bre decanted in
in june. 1993 –has recorded a growth of 29 perecnt during that financial year.

20
MARKET SHARE OF INDIAN AUTOMOBILE GIANTS

Maruti
28 30
Tata
20
48 Toyota
Honda
22 Hundai
8 Ford
66 other

21
 HISTORY TO MUL
Industry needs a boost in order to ensure the Fastest possible upgradation of the Indian
manufacturing Industry.

This has been, shown in several countries to be one of the quickest means of achieving
the objective.

The status of the Indian automobile industry at that lime was a completely stagnant one.
The cars were uneconomically designed, had high Fuel consumption, high emission
levels, poor safety and performance standards, poor drivability, low comfort, higher
maintenance and operation costs, high initial Costs, low replacement demand and
obsolete production technology, resulting in extremely low productivity by world
standards.

The status of the con component industry was not much better, considering That it
supplied loan undemanding manufacturing industry. As the technology used in the
assembly plants was itself very low the component industry could also manage without
increasing its own technology levels. The volumes of the production in both the ancillary
and the assembly industry were very low, the combined industrial production being much
below the internationally accepted efficient production levels.

22
 CORPORATE PROFILE
We take pleasure in introducing to you MARUTI UDYOG LTD. - a 10,000 Crore Auto
Giant - India’s largest automobile company, a joint venture with Suzuki Motor
Corporation of Japan.

ENTRANCE
When Maruti entered the Indian car market, it sought to fill what it perceived as two very
glaring needs. One, to provide fuel efficient, low-cost vehicles, which were reliable and
of high quality. Two, to offer customers a friendly sales and after sales service. Total
automobile value and customer satisfaction: these objectives shaped our policies and our
approach to quality.

Additionally, the absence of an efficient public transportation system was leading to a

growing demand for passenger cars. A burgeoning work force and growing middle class
population meant that personal transport had become a necessity.

l a attract good managerial talent, the corporate world had started to offer cars teen to
Junior executives. Since the cars that Maruti manufactured were mainly entry level cars,
the company successfully fulfilled this demand in the market.

SUCCESS
The first cars rolled out for sale on 14th December 1983, (the Company went into
production in a record 13 months), marking the beginning of a revolution in the
automobile industry.

The Indian car market had stagnated at a volume of 30,000 or 40,000 cars a year for the
decade ending 1983. In 1993, this figure reached a number of 1,96,820. Maruti figure are
a different story altogether. It reached a total production of one million vehicles in March
1994, becoming the first Indian company to cross this milestone. We crossed the two
million mark in 1997.

23
For the year ended 1997-98, Maruti has posted a turnover of US$ 2.1 billion and a Profit
Before Tax of US$ 244 million. During the year, Maruti produced over 3,50,000
vehicles, out of which 26,000 were exported.

Maruti has made profits in every single year since inception, and has been paying
dividends for the last ten years. Through the years Maruti has provided world-class
contemporary Japanese technology, suitably adapted to Indian conditions and Indian car
users. We have also provided users with a range of cars to suit different needs. Maruti’s
market share figures show the response of customers: In 1997-98, our market share of
vehicles was over 70%. In addition to leading in the economy car segment, Maruti is also
the leader in the luxury car segment with a market share of 38%.

OUR EVOLUTION AND ADAPTABILITY

Maruti’s growth continues despite stiff competition and rising tax levels.

With the introduction of economic liberalization from July 1991, the government realized
the high growth potential of the passenger car market. It took note of the contribution of
this segment in promoting employment, technological up gradation of industry and
contribution to government revenues. Policy changes took place accordingly. Maruti’s
excellent performance in the post liberalization milieu is in keeping with the earlier trend
set by it.

Maruti has kept pace with the times, to continue providing its customers products of high
quality.

Amongst the best 25 cars in U.K. out of 182 international models in a study conducted by
BBC Top Gear and 3D Power.

The Hyundai Atoz popularly known as Hyundai Santro in India came a poor 91st way
behind Wagon R.

Not only that in the Indian market in a programme by Star Plus - Good Morning India
aired on the 15th May ,2001 ‘” Wagon R was rated as the best Family car getting 9/10

24
whereas the Santro got 7/10 . According to this Wagon R has the factors such as External
looks, Styling, Ergonomics, Interior Spacd, Air Con Performance, Trims, Fit/Overall
finish, Quality of service.

ZEN -
The World car, one of the largest selling car in its category. Recently a survey conducted
by A & M for the best status symbols, It has been been rated highest next only to
Mercedes Benz. The Zen comes with 993 cc , packed with the Bhp of 60 @ 6000 Rpm
and torque of 80 Nm @ 4500 Rpm. It has 16 bit controlled ECM and the best PWR of 78
in its category.

BALENO -
It means lightning in Italian and lightning indeed it is. With all aluminum light weight
1600 cc engine providing 94 BHP @ 6000 rpm. Indeed it is the fastest. The torque of
132Nm @ 3000 Rpm provides it the best pick-up and acceleration at any speed. It come
from reliable stable of the Suzuki family and has been specially customized for Indian
conditions Its 16-valve engine provides smoother power delivery, superior fuel
management and reduced emission.

OUR NETWORK
Maruti has transformed the concept of after sales service in the Indian automobile
industry and committed to making sure that its relationship with the customer does not
end with the purchase of a vehicle. MUL is proud of having approximately 6000
employees working with it. It has a customer base of over 30 lakhs. The number of
Dealers Sales Outlet is 181 and is spread over 120 cities. It also has 300 dealer
workshops. The number of Maruti -Authorized Service Stations is 1363. The Service
Network is spread over 706 cities.

25
THE ROAD TO SUCCESS:

M-800 -

The largest selling Car in its category. This has been introduced with all new extra
features to rule the Indian roads.

26
ALTO-

Introduced in Oct. 1998 in Japan. This is the latest offering from Suzuki Worldwide
coming to India. Alto has been introduced in India in two versions of 796cc and 1061cc
with the engine customised for Indian conditions. It is based on the K-model which meets
the most stringent Japanese Safety Standards. It is indeed the hottest, coolest, cutest,
fastest car in its category, which has made it the Business Standard Motoring car of the
Year 2001. With superior cabin comfort, excellent road handling and an exciting new
design it promises to be a winner from the word ego.

WAGON-R

Wagon R has been Japan’s best selling model for the last four years ahead of cars such as
Toyota Corolla, Honda Life, Daihatsu Move and Toyota Yaris. Mareover Wagon R has
been rated.

BALENO:

Baleno altura has been positioned in the premium luxury.

ALTURA:

Segment of the Indian passenger car market and the is driven by the same refined 1590 cc
all-aluminum, 16-valve Smart-I multi point fuel injection unit that powers the Baleno
Sedan and besides virtually everything is the same as on the Baleno sedan.

ESTEEM –

THE BOSS - Pure Driving Luxury pleasure Introduced if 4he year 1993. This was the
first three-box luxury car introduced by Maruti in India. In the very fast year it was a
roaring success and since then it has set huge mile stones ill the history of Indian
Automobiles.

Esteem has been ranked as a great status symbol by A&M Survey, outshining the Honda
City and Mitsubishi Lancer

27
 ORIGINAL RESEARCH
The original Research had envisaged the capacity for producing 1,00,000 vehicles a year,
consisting of 40,000 cars, 40,000 vans and 20,000 pick-up trucks. These were to he
produced by the company Maruti Udyog Limited, which was formed by acquiring the
undertakings of Maruti limited by an act of Parliament under the Indian Companies Act
on 24th February, 1981. The assets were transferred with effect from 23rd April, 1981.

The Research report giving the hove figures was approved by the government of India
vide its letter no, 20(14) / 82 –AE (I) dated 1st October, 1982. In addition the government
also approved the licence agreement between Suziki Motor Corporation of Japan and
MUL for a period of ten years. To implement this licence agreement, the government of
India and Suzuki Motor Corporation, Japan. The licence agreement and the joint venture
agreement were signed on 2nd October. 1982.

28
 COMPANY MISSION
“To create conditions for promoting continuous modernization of the automobile
industry of India.”

COMPANY OBJECTIVES:

a) “To provide a wide range of high quality fuel efficient vehicles in order to meet the
need of different customers, and to maintain at least (SW share of the domestic market
for automobiles.”

b) “To generate internal resources adequate to arrange for the financing of expansion and
modernization plans of the company.

c) “ To increase exports so as to finance the foreign exchange needs of expansion and

modernisation Researchs. .

d) “ To help in the upgradation and modernisation of the Indian component industry.-

CHANGES FORM THE ORIGINAL RESEARCH

Given the market conditions the original Research requirement of’ producing the mix
cars, vans and pick-up trucks (mentioned earlier) was changed to: 72,000 cars; 36,000 to
37,000 vans; and no pick-up trucks. Instead of the pick-up model, a 4-wheel-drive off-
road vehicle was produced at a level of 10,000 vehicles per year. The OMNI was
introduced in 1983. and the GYPSY in 1 985.

The company has achieved around 86 cumulative indigenization for the car against a
Research report target of 95% by March 1989. The figure for March 31st, 1990 is over
90% (there were no targets in the original Research report for 1989-90. to a large extent,
this short fall has been due to the failure of the Indian component industry to keep up
with MUL’s stringent requirements. The component manufacturers were initially
unwilling to risk the large investment required to upgrade their facilities to the quality
and capacity requirements of MUL. Subsequently, as they found that MUL was doing

29
very well, they have begun to wave the requisite changes in their plant and equipment.
Given these constraint;, and assuming the sonic rate of progressive indigenization for the
OMNI and GYPSY as for the 800cc car, the achievement has been a:, peer target.

In line with the philosophy that a company producing passenger cars in large volumes
cannot depend entirely on a single model, MUL had introduced a model of the 800cc car
in June 1986. In keeping with international trends, MUL needs to have new models from
time to time in order to sustain a continued growth rate. Consequently, as the model
produced by the Collaborator, Suzuki Motor Corporation, was being changed in Japan.
MIJL also upgraded its model.

Another model, the 1000cc 3-box Research, has also been approved by the government
on India and production of this model has begun in 1990. In the luxury segment another
model, Esteem (LX.VX.AX) has also approved by the government of India and
production of this model has begun in 1994. These Researchs were negotiated by MUL
within the original agreement’s financial limits. Some of’ the problems faced by MUL in
adapting and using imported technology include the quality of raw materials available in
this country (e.g. plastics). and outdated process technology (Machinery, equipment etc.)
at the vendor’s end. We have therefore carried out suitable modifications for using
indigenous raw materials efficiently, and to withstand the high temperatures attained
here. Vendors have also been encouraged to collaborate and thereby their process and
product quality. There have been adaptations to cater to local needs too, for example. The
OMNI has been promoted as a passenger vehicle in India, rather than as a utility vehicle
as in Japan. The high-roof van which was being produced earlier was discontinued when
it was found that the demand for this vehicle was not high.

CHALLENGES FOR INDIAN MANAGEMENT:

Competition
Cost control
Human Resource Management

30
 COMPETITION

In the absence of competition, there is little or no concern for the customer.

Products do not improve. Instead, they become more uncompetitive, and cannot be sold
in the international market without subsidies.
Cost Increases are not controlled since they can be passed to the customer.
Most Indian companies have not faced competition till recently.

MARUTI AND COMPETITION

When MUL entered the market competition was minimal and the market was stagnant.
MUL selected the
Right product
Right collaborator
Right production process
MUL, set up proper systems for:
Technology transfer through training
Communication
Involvement of all employees
To achieve greater customer satisfaction:
MUL has gained over 70 % of the car market in India
MUL , is the only car exporter of any consequence in India
COST CONTROL:
• It costs increases without a corresponding improvement in the product the
customer gets less value for money. A competitor with lower costs can gain
market share at the expense of less efficient companies. Such competitors also
have better profitability.

MARUTI AND COST REDUCTION:

Reducing fix cost:

31
 • Proper appraisal of the Research
• Proper choice of the best equipment so that future downtime cost are
minimized. E.g. choice of best quality equipment is now paying off in terms
of’ increased capacity utilization: 1,50,000 units p.a.
• Completing Researchs on tome and within budget
• High capacity utilization
• Proper training of employees
• Planned maintenance
• Fast die/jig changes to minimize time spent on unproductive activities
• Reducing variable costs:
• Working with suppliers to reduce their costs. and sharing the benefits.
• Value analysis of parts and processes to get maximum value at the lowest
possible cost.
• Continuous improvement in all areas (Kaizen).
• Reduction of unproductive activities.
• Speeding up processes like payment collection, order processing etc. Through
computerization and also by improving procedures.

MINIMIZING EMPLOYEE COSTS BY:

• Minimizing the number of employees

• Improving employee availability: high attendance

• Improving productivity: the productivity incentive scheme.

• The idea being to give customers a better car at a lower price. The price would
have been much higher if there were no cost-reductions.

32
HUMAN RESOURCE MANAGEMENT IN MARUTI
Organisation structure:

The whole organisation behaves as a Privar, with one legal guardian. All directors and
shareholders are from among workers and all of the have taken an oath through affidavit.
In the court of law that neither their family members shall have clMarutim or share in the
assets or profits of the company. All workers of company are the proud owners of the
organisation. The workers believe in the concept that “manpower is superior to money
power”.

Recruitment and selection

Recruitment is the process of seeking out and attempting to attract individuals in external
labour markets, who are capable of and interested in filling avMarutilable vacancies.
Recruitment is an intermediate activity whose primary function is to server as a linked
between Human Resource Planning on the one hand and selection on the other. Sources
of recruitment are through internal and external channels. MARUTI recruits it’s
employees both externally as well as internally. Recruitment for the Marutirline is done
through interviews of selected applicants and people who pass the interviews of selected
applicants and people who pass the interview are required to undergo a medical test
before he/she is finally placed in the Marutirlines.

Employees are also recruited through internal mobility. This is done on the basis of merit
and seniority. After passing the examination the candidates are called for an interview
along with the employees who have become eligible for promotion on the basis of
seniority.

Training And Development

Training is the systematic modification of behavior through learning, which occurs as a

result of education, instruction, development and planned experience. Training needs

33
exist when there is a gap between the present performance of employees of group of
employees and the desired performance.

Development on the other hand implies educational process Marutimed at growth and
maturity of managerial personnel in terms of insight attitudes, adaptability leadership and
human relations on the basis of conceptual and theoretical knowledge. Sahara
Marutirlines has various training programme, which are spread over every field. These
training’s are Marutimed at imparting particle knowledge of the specific area and to make
employees more capable to work not only efficiently but with accuracy. This also
facilitates the customer to have their work done fast as per their requirements, because in
most of the cases customer do not have the technical knowledge of the Marutirlines
business. MARUTI also conducts training on human behaviour in order to update its
employees on how to deal with its customers. In MARUTI training is immediately called
for whenever an employee is elevated to next promotional post.

34
Future growth proposals:

• MARUTI Literacy programme Hub centre

• Basic flying training

• Induction of simulators

• Instrument training simulators

• Boeing simulators

Job Analysis & Job Description

Job analysis is the process by which data in regard to each job is systemically observed
and noted. It provides information about the nature of job and characteristics or
qualifications that are desirable in the job holder. Job description generally describe the
work performed, the responsibilities involved, skill and training required, conditions
under which job is done, relationship with other jobs are personal requirement of the job.
Job description study gives a better understanding of tasks performed and the type of
qualifications required to perform them. It is also used to give a measures for setting job
standards, which gives an indication of productivity of each employee performing job. In
MARUTI subordinates and junior staff level employee’s eligibility criteria is metric. The
junior staff should be able to read and write English as well as Hindi. The jobs are
properly defined to all structure of the hierarchy.

Performance appraisal
It has many facets. It is an exercise of observation and judgement, it is a feedback
process, and it is organization intervention. Performance apprMarutisal is a measurement
process as well as emotional process. While it is fMarutirly easy to pre-describe how the
process should work, descriptions of how it actually works in practice are rather
discouraging.
Functions and objectives of performance apprMarutisal:
1. It seeks to provide an adequate feedback to each individual on his/her performance.

35
2. Its purpose is to serve as a basis for improving or changing behavior towards more
effective working habits.
3. It Marutims at providing data to managers with whom they may judge future job
assignments and compensation.
Performance ApprMarutisal is used for:
1. Identifying employees for salary increase, promotion, transfer lay-off or termination
of services.
2. Determining training needs for further improvement in performance.
3. Motivating employees by indicating their performance levels.
4. Establishing a basis of research and reference for personnel decisions in future.
In MARUTI employees are required to fill up a self apprMarutisal form. Employees are
apprMarutised every year in the MARUTI. Performance apprMarutisal is carried out in
MARUTI for determining training needs for further improvements in performance,
identifying employees for salary increases, motivating employees by indicating their
performance level.

Transfer & promotions:

It refers to a horizontal or lateral movement of an employee from one job to another in

the same organization without any significant change in status or pay. In MARUTI two
mMarutin situations generate transfer situations

1. An individual employee may request a transfer in seeking his own preference and his
own benefits.
2. Marutirlines may also initiate transfer as a requirement for more effective operations
or as a solution to human relations problems.

Whereas promotion refers to advancement of an employee to a higher position carrying

responsibilities, higher status and better salary. In MARUTI promotion is given under
following conditions:

1. It is a device to retMarutin a reward, to an employee for his years of service.

2. It is to impress upon others that opportunities are open to them also in Marutirlines, if
they perform well.

36
3. It is to increase individual effectiveness.
4. It is to build loyalty, morale and a sense of belongings in the employees.
5. It is recognition of a job well done by an employee.
6. It is to promote a sense of job satisfaction in the employees.

Pay And Allowances

The pay and allowances of an employee are payable from the date from which he takes
charge of the post or service to which he is appointed. If the charge is service to which he
is appointed. If the charge is before 12.00 noon, the pay and allowances shall be
admissible from the same day, if at 12.00 noon or thereafter, they shall be payable from
the following day.

Increments:

1) Advance of salary while proceeding on leave:

An employee proceeding on Privilege leave, Maternity Leave and/or Sick Leave shall be
eligible to be pMarutid in advance agMarutinst the salary due for the full period of the
leave subject to the usual deductions e.g. on account of provident fund subscription,
Income - tax etc. In case in which the leave granted to an employee extends beyond he
next pay-day, the amount of advance should also include the pay and allowance due to
him, upto the date of his proceeding on leave.

2) Temporary Duty (tour – within India):

The employees undertaking duty tour will be eligible for payment of DMarutily
Allowance/ Hotel Accommodation as per conditions lMarutid down from time to time.

3) For Employees required to travel by RMarutil/Road/Sea

DMarutily Allowance shall be admissible for the period of stay at outstation. No. D.A.
will be given for the period of journey. For the day of arrival at the outstation and the day
of departure from the outstation only half dMarutily allowance shall be admissible.

4) For employees required to travel by Marutir

Employees will be entitled for the payment of dMarutily allowance at the applicable rates
for each day of absence from HQrs. The ‘Day’ in this case shall mean a period of 24

37
hours or part thereof from the time the outward journey commences to the time the return
journey ends at the base station.

5) Temporary duty tour abroad:

The duty tour undertaken by an employee at a foreign station, will be subject to the
following conditions:

(i) The employees going abroad for temporary duty tour/training/conference, etc. are
released foreign exchange by the company on he basis of the prescribed per diem
rates. The employees are required to meet all their expenses in the foreign
country, like boarding and lodging, transportation expenses, incidental expenses
and cash allowance from the amount of foreign exchange so advanced to them. If
the stay abroad is for the same number of days for which foreign exchange had
been released to an employee, then the total expenses shall, not be more than the
amount of foreign exchange released to him.
(ii) In the unlikely event of an employee having to extend his stay abroad for official
purposes, beyond the sanctioned period, he should contact his Departmental Head
well in advance, so that release of additional foreign exchange could be arranged
for him.
(iii) In the case of hotel expenditure being less than the amount of foreign exchange
released to an employee, the unspent amount has to be refunded by the employee,
the unspent amount has to refunded by the employee, to the company in foreign
currency.
(iv) In case, in which the entitled class of accommodation is not avMarutilable, the
competent authority may permit the employee to travel by a higher class.
6) Transportation of personal effects:

The employees will also be reimbursed the actual cost of transportation by the goods
trMarutin and where the two stations are not connected by trMarutin, by the cheapest
mode of surface transport of his personal effects not exceeding the limits shown below:-

38
Basic Pay (Pre-Revised) Total Baggage allowance when travelling

With family Witbout

(kgs) family (kgs)

Rs 10,000 and above 720 360

Rs. 5,000 and above 540 270

Below 5,000 360 180

Provided that:

(a) The competent authority may permit transportation of such effects in the company’s
own services in which case the limits will be deemed to be inclusive of free baggage
allowance permissible under its tariffs and the transportation will be made as and
when and to the extent that space and load are avMarutilable in the Marutircraft.
(b) No costs other than those of actual transportation such packing, unpacking, storage,
insurance, handling agent charges and the like will be borne by the company.
Medical Facilities For Temporary Employees:
The Medical facilities applicable to permanent employees of the company are also
applicable to temporary employees.
Working Hours
All employees except the member of flying crew will, according to the nature of duties
assigned to and performed by them, be classified, from time to time into the following
categories.
a) Those observing 38 hours work per week including a dMarutily break of half an hour
on all working days except Saturdays.
b) Those observing 44 hours work per week including a dMarutily break of half an hour
on all working days (except Saturdays)
c) The actual hours of dMarutily work shall be such as are notified from time to time by
the regional Head at region branch.

39
Overtime
Overtime is payable only to subordinate & clerical staff members @twice the rate of
Basic Salary + D.A. for number of hours.
Pay Day
Staff will be pMarutid their monthly salary usually two working days prior to the end of
the months.
Mode of payments
An employees is required to open a serving Bank A/c in a designated branch, (consult
manager/reporting head) salary will be deposited into the account. On payday, employees
will be handed a pay slip contMarutining a detMarutiled breakup of the remuneration for
the month the required deductions and the net pay.
An employees commencement salary:
Commencement salary will very according to the category of employment, which will be
advised to the employee in the appointment letter. Any increases or other adjustments
arising from a salary review, change of job etc will be notified to the employee.

Retirement benefits
Every employee who has completed one year’s continuous service shall, subject to the
regulations to be made hereafter in this behalf, contribute the contributory provident fund
each month a minimum of 10 percent a maximum of 20 percent of his provident fund
pay. The company’s contribution to the fund shall, however, be limited to 10 percent of
his provident fund pay.
The company’s contribution to the fund is payable to the employee after five years of
membership of the fund. Subject to this an the other regulations to be made thereafter in
this behalf, all the accumulated balance to the credit of an employee on the day he ceases
to be an employee of the company, is payable to him or his nominee or nominees or
executors.
Gratuity
The company also pays gratuity to all its employees calculated at the rate of 15 days
wages for every completed year of service or part thereof in excess of six months subject
to a minimum service period of 5 years a maximum of 20 months wages. The gratuity

40
liability of the company is funded through the group gratuity scheme (cash accumulation
scheme) of the life insurance Corporation of India. This scheme includes a special
feature, namely, whereas gratuity payable on death under the payment gratuity act is
limited by the length of service rendered upto the time of death, the scheme provides for
the payment of an amount based on the length of service which the employee could have
put in upto the normal retirement date but for his untimely death.

Provident fund – statutory contribution:

The provident fund deduction forms are part of the employees’ salary and represents
statutory deduction of 10% from the basic salary and DDA. The company contributes
and equivalent amount towards an exempted provident fund scheme managed by
Trustees drawn among the staff of Sahara Marutirlines. This is a retirement benefit.

Employees staff insurance (ESIS)

The company is legally obliged to deduct from an employee’s salary contribution to ESIS
provided that the monthly salary does not exceed Rs 6500 (Rupees six thousand and five
hundred only) the company also pays a higher amount as its contribution.

Insurance premium under salary saving schemes

An employee may have the premier on selected life insurance policies deducted from the
salary each pay day and credited directly to the employees policy account with the life
insurance corporation.

Loans

Equated monthly installments (EMI) towards of any loans, avMarutiled by an employee

from either the company or the financial institutions will be deducted from salary, on the
employees’ authorising the company for such deduction. This authority letter has to be
routed through the financial institutions granting the loans.

41
Motivation

In appreciation and recognition of exemplary performance, contribution, length of service

to the MARUTI, the management rewards the employee appropriately. The award is in
the form of a gift or certificate as decided by the management.

The management also rewards its employees “employee of the month” and “employee of
the year” for their outstanding performance. The employees selected become the
member of staff welfare committee also. Long service awards are given to those
employees who have completed their 5 years or 10 years of service and are entitled for
gifts along with certificates.

A part from this, the company motivates its employees by providing them good
infrastructure. Monthly culture activities are organised to keep the employees motivation
high. Employees are given responsibility & authority in their selected area, in order to
enhance their capabilities. And promotions are given based on their performance in the
company. All these rewards given by the company attracts & motivates the employees to
work better and prove themselves.

Grievances

If any employee has a problem he can directly speak to the CEO, who is accessible to
anyone at anytime. In case a grievance arises, round the table meeting is called and
problems is dealt in best possible manner.

Communication

In MARUTI communication is very formal. The company prefers communication in a

two way process. The company prefers to be more informal in dealing with employees on
dMarutily basis. Since, this style of working makes the employees feel much happier and
motivated.

Maruti India Ltd. selects the future employees keeping everything in mind right from the
qualification of the employees to the future prospects-both of the organisation and the
employees.

42
The first step involves the filling up of Manpower Indent Form. This form is filled up by
the department, which is having the vacancy. The form consists of various questions
which are to be answered like if the current vacancy is a replacement vacancy, its reason
is to be specified -the factors which resulted it like death, retirement etc.

The department is required to give the qualifications that the future candidate should
possess.

In the next step, this form is given to the Human Resource (HR) department; this
department sees if the position can be filled through internal sources. The internal sources
can be transfers, promotion etc. In the case of internal sources, the recommendations of
the employees are not taken into consideration. If the HR department does not find
suitable candidate within the organisation then this department has to give reasons for it.
The form then goes to the Corporate HR for its approval.

When the suitable candidate is not available within the organisation, the organisation then
moves to the outside world for filling up the vacancies.

If the number of employees required is large then the company has in its consideration
three ways-
❑ The Data bank of the organisation.
❑ Advertisements.
❑ Contacting large consultants.

The company maintains a databank of the candidates, which is used when the number of
vacancies to be filled up is large. The sources of databank can be the qualified candidates
who had applied in the organisation earlier but due to some reasons could not join the
organisation.

43
Advertisements are the second big source to attract the candidates. These are having
much larger scope and reach to a number of people. The qualifications required by the
organisation and the criteria could be described in detail.

Large number of consultants also constitutes a big source. Many people register
themselves with these consultants and they act as a bridge between the organisation and
the candidates. The consultants provide the company required details about all criteria.
These consultants are fixed for the organisation, which are chosen on the basis of their
performance. In case of overseas recruitment it is checked whether their Indian
counterparts can perform the job efficiently or not. If need arises then they are also taken
through consultants.

But if the number of vacancies is very small then the organisation takes the help of the
local consultants.

The candidates are then required to fill up the Application Form. This form requires the
candidate to fill the details regarding the previous employment, if any and his personal
data. The form is having details regarding like the marital status, organisation structure,
the position held by the candidate, his salary structure, the top three deliveries to the
organisation that proved to be beneficial to the organisation, career goals, his strengths
and weaknesses etc.

After the application form has been duly filled and submitted, the selection process starts
wherein the candidate has to pass through various stages and interview. The interview
panel consists of the persons from Corporate (HR), and other persons including the
executives from the department for which the vacancy is to be filled.

The selected candidates are then short-listed. The short listed candidates are then given
priority numbers; this is due to the reason that sometimes the candidate who is having
first priority is unable to join the organisation due to some reasons then in that case the

44
candidate next in the priority list is given preference. The candidate has to under go
medical examination and his credentials are verified.

After qualifying these stages, the candidate is then absorbed in the organisation and
explained his/her duties. This phase marks the end of the selection procedure.

Maruti India Ltd.also performs Campus interviews as and when the need arises. The
esteemed organisation also provides apprentice training-wherein the organisation trains
the people in the working of the organisation and gives then stipend. If these trainees are
found useful to the organisation then they are absorbed in the organisation else they are
given certificate so that they can show this as an experience and get a job elsewhere.

45
 RECRUITMENT AND SELECTION IN MARUTI
HIERARCHY OF MARUTI

Mrs. Vandana Bhargava Deputy

dDirector
Mr. U.K. Bose CEO

Mr. Samir Bhargave Controller

Mr. Kapil Kaul C.G.M. Capt. S.P.S. Sandhu Manager Personal

(M&S) C.G.M. (Operations)

Mr. Manchanda Mr. Roshan Nowroj Mr. Sanjay Kumar

G.M (North) G.M. (South) Commercial Mrg.

R.S.M. Delhi
Manager Manager International Manager
FFP Department MRTG. CSC & Automation

Manager
Sales
Deputy Product Brand
Manager Sales Manater Manater

Asst. A.S.M. A.S.M.

Manager Sales Delhi Delhi

Senior Officer Sales Senior Senior

Officer Officer

Officer Officer
Officer Sales

46
HRM in the Automobile Industry

When we talk of human resource management, we have in our mind a variety of things.
These include:

• Training

• Skill development and up-gradation of knowledge and skills of the employees.

• Motivating the employees,

• Effective utilization of the employees skills and capabilities

• Attracting the personnel and their retention

• Wages, salaries and rewards and

• Monitoring and controlling the employees performance

These aspects of human resource management and development are essential for every
sector but in the case of tourism, they have a special significance. This is because
tourism is a service industry and here the customer is not only buying a service or a
product but he is also experiencing and consuming the quality of service which is
reflected in the performance of the person involved in the production and delivery of the
service. Since what is marketed here is a relationship between the customer and the
producer of services, the importance of human resources becomes vital for the success of
the business. Generally, in such service operations the emphasis has been on courtesy
and efficiency and it is assumed that the service in tourism is all smiles and effective
communication. However, with the changing nature of tourism and growing special
sation only smiles, communications skills and courtesy will not serve the purpose. For
example, a guide may be very good in communication but unless he or she is equipped
with knowledge and information related to the monument or the city, he or she will not
be able to perform quality service. Similarly, a driver may be very good at driving but
unless he knows the roads and addresses of the city, only his driving capabilities will be
of no help in providing quality service. And we must remember here that tourists,
whether foreign or domestic, are increasingly becoming more demanding as regards
quality of service.

47
Generally, human resource management, planning and development in tourism have to be
taken at both macro as well as micro levels. At the macro level, one takes into account
the educational and training infrastructure available in a country and the efforts initiated
by the ICAO. This also includes the efforts initiated by the private sector. At the micro
level, one takes into account how best individual organizations plan and manage their
human resources V S Mahesh, formerly Vice President (Human Resources) with the Taj
Group of Hotels, is of the opinion that two central features common to all sectors of the
tourism industry must be considered in this regard:

1) The concept of Moments of Truth (MOT), and

2) MOT’s relationship to the attainment of service excellence in an organization.

Jan Carlzon has defined MOT “as an intention between a customer and an organization,
which leads to a judgement by the customer about the quality of service received by her
or him”. In tourism industry, 95% of the MOTs take place between customers and the
front line staff and most of the time they are not visible to the management. For example,
how a hotel receptionist is handling the customers or how an escort is conducting the tour
is not visible to the management. Yet, the tourist’s experience of the holiday is
dependent on how the staff manning such services has treated him or her. Mahesh has
pointed out that in case of negative experiences, only less than five percent cases get
reported to the management by the customers and hence according to him the crucial
questions is “are human beings capable of doing their job correctly, willingly and with a
smile, when they know that their management is most unlikely to be able to see or hear
them, let alone bear of their failure to do so”? This puts additional on the human
resources management factor in the tourism industry. Certain organizations, companies
and even destinations are known for their hospitality and are even termed as service
leaders in their areas of operations. Researches conducted by various scholars in this area
show that they have achieved this, status, through effective human resource management
in their organizations. According to Gail Cook Johnson these companies have applied
the principal of empowerment to all employees. This empowerment is manifested in the
way that companies:

48
• Are highly focused and consistent in everything they do and say in relation to
employees,

• Have manager who communicate with employees

• Facilitate, rather that regulate, their employees response to customers

• Solicit employee feedback about how they can do things better

• Stress the importance of team work at each level of the organization and

• Plan carefully the organization’s recruitment and training needs.

These companies give less emphasis on hierarchy and formal relationship rather; they
adopt flat organizational structure in terms of span of control. Johnson further states that
these service leaders can be recognised for:

• Their unfailing commitment to service principles,

• Their investments in people to ensure staffing competence,

• A management philosophy which stresses communication a proactive orientation and

employee feedback and

• A dedication to teamwork

In fact, human resource management and customer’s care/expectations management are

inter related area in the area of tourism. Sarah Mansfield has identified four key
principles in the development of customer care within companies. These according to her
are

1) Customer care ‘starts at the top’ was meaning that commitment to the principle of
customer care must emanate from senior management levels within an
organization. Successful management’ is not only about the right management
style but also an attitude, ethos or culture of the organization which overrides the
management techniques used, such that in the absence of other instructions these
values will dictate how an employee will behave.

2) ‘Customer care involves everyone’ within the organization. It is not just about
front-line staff. The contrary view ‘only services to reinforce the electricians’ or

49
 administrators, opinion that the standard of service they give in support of the
front-line staff is not important. How can cleaners do the right job unless they
fully appreciate their customer’ needs and the importance of their role? High
standards of customer care cannot be achieved by ignoring seasonal, part time or
voluntary staff that represents the face of the business to many customers.

3) ‘Care for your staff and they will care for your customers. Too often organizations
look first to the customer, whereas the emphasis should be placed on the staff.
Improving the experience of the staff encourages a better service and a better
experience for customers. More customers are obtained thereby improving the
climate in which management and staff work. Investment and greater
professionalism follow success and the cycle of achievement is reinforced.’

4) ‘It’s a continuous’, meaning that ‘customer care is not a quick fix Research but it
long term plan’.

According to V S Mahesh “The nature, determinates and problem areas of service quality
within tourism points clearly to the central role of personnel, at all levels, in attaining
levels, of excellence in this respect. Development the service culture, within a company,
and within tourism industry, cans he seen as crucial to the success of tourism.” Hence,
the activities of an HRD manager in tourism can be categorised as:

• Human resource planing and

• Human resource development

Aspect like forecasting, recruiting and induction in the human resource area are taken
care of through human resource planning. The identification of specific developmental
needs for the manpower aimed at developing and exploiting the competencies of the
human resources are taken care of through human resource development.

HUMAN RESOURCE PLANNING

In this Section, we will deal with certain aspects which are relevant for managers or
entrepreneurs at an organization’s level in the area of human resource planning. Human
resource planing can be termed as a process for preparing a plan for the future personnel

50
needs of an organization. It takes into account the internal activities of the organization
and the external environmental factors. In a service industry like tourism, such planning
also aims at improving the quality of manpower resources. Human resource planning
involves:

• Analysis of existing manpower resources,

• Planning for future needs taking into account how many people with what skills and
at what levels the organization will need, and

• Planning for the development of the employees by adopting in-house training and
continuing education methods to upgrade the knowledge and skills of the employees.

RECRUITMENT AND SELECTION PROCEDURES IN HR

Recruitment and selection procedure is a vital factor of an organization. If it is not done
properly the production procedure will be hampered. Hence productivity will fall down.
So the organization will be in trouble and it will affect the employer- employee
relationship. So recruitment and selection procedure should be done in proper and correct
manner. The new candidates should replace the vacant post so that the production of the
company does not hamper. By this the productivity will increase and the organization
will gain profit. So the employer will be happy and will not hesitate to distribute bonus
and increments to the workers. The workers will also be more motivated to work. Hence
there will be harmonious relationship in the organization. It will also stabilize the
organization in the long run.

51
 HUMAN RESOURCE MANAGEMENT IN MARUTI

Organisation structure:

The whole organisation behaves as a Parivar, with one legal guardian. All directors and
shareholders are from among workers and the entire have taken an oath through affidavit.
In the court of law that neither their family members shall have claim or share in the
assets or profits of the company. All workers of company are the proud owners of the
organisation. The workers believe in the concept that “manpower is superior to money
power”.

Recruitment and selection

Recruitment is the process of seeking out and attempting to attract individuals in external
labour markets, who are capable of and interested in filling available vacancies.
Recruitment is an intermediate activity whose primary function is to server as a linked
between Human Resource Planning on the one hand and selection on the other. Sources
of recruitment are through internal and external channels. Maruti recruits it’s employees
both externally as well as internally. Recruitment for the airline is done through
interviews of selected applicants and people who pass the interviews of selected
applicants and people who pass the interview are required to undergo a medical test
before he/she is finally placed in the Maruti.

Employees are also recruited through internal mobility. This is done on the basis of merit
and seniority. After passing the examination the candidates are called for an interview
along with the employees who have become eligible for promotion on the basis of
seniority.

52
53
 RESEARCH METHODOLOGY

The purpose of the methodology is to describe the research procedure. This includes
overall research design, the sampling procedure, the data collection method, and the
fried methods and analysis procedure.

Out of total universe 30 respondents from each Marutirline have been taken for
convenience. The sample procedure chosen for this are statistical sampling method. Here
randomly employee’s are selected and interviewed. An in depth interview is conducted
with the Human Resource Head. Information, which I collected, was based on the
questionnMarutires filled up by the sample employees.

Under secondary method I took the help of various reference books which I have
mentioned in bibliography and also by way of surfing through the company website.

✓ PRIMARY DATA
• Questionnaire: Corresponding to the nature of the study direct, structured
questionnMarutires with a mixture of close and open-ended questions will be
administered to the relevant respondents within the Personnel and other Departments
of the organisation.
• In-depth interviews will be conducted with the top level management personnel
involved as panel members of the recruitment & selection committees of the
organisation to substantiate the questionnMarutire administered.

✓ SECONDARY DATA
• Organisational literature: Any relevant literature avMarutilable from the
organisation on the Company profile, recruitment & selection procedures, Job
specifications (KSAs), department-wise break up of manpower strength and the
orgnMarutisational structure.

54
• Other Sources: Appropriate journals, magazines such as Human Capital, relevant
newspaper articles, company brochures and articles on www sites will also be used to
substantiate the identified objectives.

➢ SAMPLING PLAN AND DESIGN

A questionnMarutire will be used for the purpose of research:

✓ Questionnaire: To test the validity and effectiveness of the recruitment and selection
procedures within the organisation and to test the validity and effectiveness of the
policies and procedures within the organisation.
 The basic rationale of Questionnaire is to assert the perception of the non-HR
departments in terms of the validity and effectiveness of the policies and procedures
used by the organisation. It is also in line with the assessment of any
suggestions/recommendations that the respondents from these Departments might
have in terms of the use of an alternative source/device of recruitment and selection,
than what already forms the current practice of the HR Department.

▪ Questionnaire e would be administered to 15 respondents, holding a senior

designation within the Personnel Department of the organisation. It will also be
administered to at least 15 respondents belonging to typical Departments within the
organisation and holding senior designations within their respective Departments.
▪ In depth interviews would also be conducted with these respondents with the
Marutim of substantiating their views entMarutiled from the Questionnaire.
▪ The total number of employees covered in the questionnMarutires are 30, 20 Business
Executives and 10 Non-Business Executives.
✓ SAMPLING ELEMENT
▪ For the purpose of administering the QuestionnMarutire, the respondents would
comprise of personnel holding senior designations within the Personnel Department
of the organisation. The respondents for the QuestionnMarutire will also be
preferably be panel members of the Recruitment & Selection Board of the
organisation.

55
▪ The respondents would comprise of personnel holding senior designations within
certMarutin typical Departments identified within the organisation, namely:
- Stores
- Finance
- Operations
- Electronics
- Engineering

✓ SAMPLING TECHNIQUE
▪ Judgement Sampling would be used for the purpose of choosing the sample for the
purpose of administering Questionnaire. The identified expert would have a thorough
knowledge about all the respondents within the Personnel Department of the
organisation. Thus his/her expertise would be incorporated in locating, identifying
and contacting the required respondents.

56
57
 ANALYSIS & FINDINGS

The analysis of the various sources of recruitment and selection devices is presented on
the following pages.

• The response entire from the HR Department (as analysed from QuestionnMarutire)
represents current practice within the organisation in terms of the sources of
recruitment and selection devices used.

• The analysis of the response entire from all the other departments (as analysed from
QuestionnMarutire) forming the sample, represents the perception of the respondents
from these Departments in terms of the validity and effectiveness of the various
sources/devices of recruitment/selection (specific to these Departments)

• The analysis further entMarutils any suggestions/recommendations given by these

non-HR Departments (forming the sample for administering Questionnaire, in
terms of any recruitment source and/or selection device that should be deployed by
the organisation apart from what already constitutes current practice (specific to these
Departments)

58
 Chart showing Service Period of the
employees as per our survey of 30 employes

within 1year
between1-2yr
between 2-3yr
between3-5yr

Working period of employees in the company: -

The above chart depicts that most of the employees are doing service as per my survey of
30 employees. Most of the employees are young in the MARUTI and, they don’t have the
past experience of any change in recruitment and selection. However in Marutir India it is
just opposite they are working from last 10-15 years in the company.
On a survey of 30 employees done by me shows that employees completed 1 year of
service comprised 36.11%.
Similarly employees 1-2 years of service comprise 36.11. But there is only less number
of employees there about between 2-3 years comprised 19.44%. The rest i.e. 8.33%
comprised of the group of people who have been in the organization for 3-5 year.

59
 Candidates willingness to join the company
Most of the Indian candidate looks in for the salary package and job security before
joining a company for job. All other things such as Reputation of the company, working
environment, job prospects, location of the company, career growth opportunity, they
look these things in either in isolation or in combination to each other as a whole as
shown in the above graph:

From the chart it can be understood that most of the employees are inspired by the salary

Chart to showing candidates willingness to join

the company

23% 17%

5%
28%
11%
16%
reputation of the company salary package
working enviornment job prospect
location of the company career growth oppurtunity

package of the company which resembles the personal trMarutits of the Indians. I can also
see that matters much followed reputation of the company and working environment,
which comprised 17% and 16% respectively. Job prospect plays a minor role in the minds
of a candidate who had already joined the company. Location of the company (which
comprised 5% of the sample size) where majority of the employees are qualified with
technical who in most of the cases dare to bother the location of the company.

60
How candidates are recruited in the company?
There are various ways of recruiting candidates in the company as depicted in the chart
below : -

Chart showing candidates' recruitment

process
Written exam

Written
6% exam&interview
85%
8% Written
3% exam,gd&interview
6%
others

From the chart it is quiet clear that the company adopts various process for recruiting the
right candidate. Actual recruitment procedure followed by the company is by conducting
written examination followed by interview which comprised 85% of my sample survey of
30 employees. But still some candidates are also chosen through written exam, Gd
&interview comprising only 6% and others comprising only 3%. These ‘others’ include
the reference of the existing employees within the organization itself.

61
Job Specification of the employees
Almost all the candidates got the specified jobs offered to them. This implies that the
company have the organized manpower planning and well organized recruitment policy
as shown in the following chart : -
From the chart above it is crystal clear that the candidates gets exactly the same
job as specified. So from the company’s perspective it is a good sign for the overall
growth and development. Still some employees which comprised only 2.33% of my
sample study
Role of union in the organization
There is a very hard presence of union in the organization. The workers performing

Chart showing job specification of the response of the candidate

Yes

No

operational level to decision making are all well educated employees. So for the
welfare of the quality of work life and other activities related to the welfare of the
workers, they are taken into consideration.

62
Q-: Corresponding to this data I have drawn a pie chart below:-

Employee turnover ratio

Better salary
package
3 2 7
More benifits
2
Improvement of
working condition
4 Career
development
22 opportunity
Company not
doing anything

Can't say

So it is evident from the pie chart that majority of the respondents (14) have mentioned
Better promotion / Career Development Opportunity for the retention of employees and
thereby reducing the employee turnover ratio. Only 5 respondents have mentioned more
benefits as the reason.

63
Q-: IS THE RECRUITMENT AND SELECTION PROCEDURE FOLLOWED BY THE
COMPANY APPROPRIATE?

80% 75%
70%
60%
50%
Percentage of
40%
Employees Yes
30% 25% No
20%
10%
0%
Maruti
Company name

INTERPRETATION:
75 out of 100 employees believe that the recruitment and selection procedure followed by
the company is appropriate while 25 out 100 employees believe its inappropriate.

64
Q-: DOES YOUR COMPANY DISCLOSE THE JOB SATISFACTION AT THE TIME
OF SELECTION OF A CANDIDATE ?

70% 65%
60%
50%
Percentage of 40% 35%
Employees
30% Yes
20% No

10%
0%
Maruti
Company name

INTERPRETATION:
Disclosing of job specification basically depends on the job profile of the candidate.
65 out of 100 employees say that the economy discloses the job specifications at the time
of selection of a candidate while 35 out of 100 employees said the company doesn’t
disclose job specifications at the time of selection.

65
Q-: DOES YOUR COMPANY ASK FOR REFERENCES AT THE TIME OF
SELECTION?

100%
100%

80%

60%
Percentage of
Employees Yes
40%
No
20%
0%
0%
Maruti
Company name

INTERPRETATION:
100 out of 100 employees said that the company ask for references at the time of
selection.

66
Q-: WHAT PERCENT OF THE SELECTION PROCEDURE DOES THE WRITTEN
TEST CONTRIBUTE?

70%
70%
60%
50%
Percentage of 40%
Employees 30% Yes
30%
20% No

10%
0%
Maruti
Company name

INTERPRETATION:
70 out of 100 employees say that the written test contribute the main factor of recruitment
but 30% employees say that written test not take a main part of recruitment.

67
Q-: WHICH TYPE OF INTERVIEW METHODS DOES YOUR COMPANY
USUALLY FOLLOW?

70% 70%
60%
50%
Percentage of 40%
Employees 30% Direct
30%
GD interview
20%
Other
10%
0%
0%
Maruti
Company name

INTERPRETATION:
70 out of 100 employees say that company follows direct interview method, and 30 out of
100 says company follow the GD interview.

68
Qualitative responses (COMMENTS) given by the various Department respondents
(as entMarutiled from QuestionnMarutire)

Departments From the point of view of the From the point of view of the
organisation Department
Stores Willing employees based on their There is no cadre in the Stores
performance should be recruited, Department, therefore the staff
instead of giving promotion on working in Stores on rotation is
seniority basis. incorrect. The cadre should have
been there, which gives moral
backup to existing hard working
employees for their future
prospects.
Finance Right candidate for the right job Experience should be given
should be selected irrespective of preference for middle level
constrMarutints regarding caste, managerial positions over new
creed, age etc. candidates.
Operations There should be no reservations In all promotions, physical fitness
for any category; the only criteria should be a specific criterion.
should be competence.
Engineering Selection of candidates for various Qualification of candidates along
posts in different cadres should be with merit should be the
strictly on the basis of consideration for promotion of
qualification and the merit of the candidates in the Engineering
candidates. Management should Department. Low Qualified
lay emphasis on selecting engineers should have promotions
professionally qualified only to a certMarutin level.
individuals.
Electronics As per the merit of the candidate, We must segregate good and bad
selection should be done. workers during
selection/promotion

69
 FINDINGS
• 90% employees said that recruitment and selection procedure affects the
performance of the employees while 10% employees said that it does not.

• 100% employees said Shri Ram Piston recruit employees internally.

• 75% employees believe that the recruitment and selection procedure followed by
the company is appropriate while 25% employees believe its inappropriate.

• 65% employees say that the economy discloses the job specifications at the time
of selection of a candidate while 35% employees said the company doesn’t
disclose job specifications at the time of selection.

• 100% employees said that the company ask for references at the time of selection.

• 70% employees say that the written test contribute the main factor of recruitment
but 30% employees say that written test not take a main part of recruitment.

• 70% employees say that company follows direct interview method, and 30% says
company follow the GD interview.

• MARUTI prefer the fresher only 55% in campus and 45% Not prefer for fresher
in campus.

• MARUTI recruit the people in other state.

• Maximum 45% persons are agree with MARUTI and some 30% persons are
disagree.

• 100% manpower is based on previous production data.

• Maximum 80% is linked of vision of the company.

• Maximum cases 80% medical test is done at the time in MARUTI but in some
cases medical test is not required.

70
• Maximum MARUTI conducted the interviews is free from bais.

• MARUTI check all the information before interview.

• Maximum cases MARUTI not conduct the physical examination before selection
but in some cases MARUTI conduct the physical examination.

• Maximum 75% persons are satisfied with recruitment process in MARUTI but
25% persons are not satisfied with recruitment process in MARUTI. In the survey

• Maximum MARUTI recruitment process for the people for future needs.

• Maximum 55% favoritism is not done at the recruitment process but in some
cases 45% can done.

71
 RECOMMENDATIONS

• The organisation should deploy a segmentation matrix for the purpose of talent
sourcing. This is in line with the identification of the talents that the organisation
needs to attract for value creation. At the same time, the matrix also serves to screen
any redundant talents that the organisation does not require within its pool of
MARUTI.

• The MARUTI should endeavor to find out as to what attracts the right employees to
apply to the organisation. Thus, knowing what the potential candidates who apply
expect from the organisation and the reasons behind their desire to work for the
organisation will help in 'working out' relevant recruitment policies. MARUTI could
emerge as a highly successful organisation in recruiting and retMarutining desired
applicants, when such applicants experience work culture consistent with their
expectations. For the same, the HR Department needs to 'learn' the patterns and
develop programs that support recruitment and retention strategies. They can follow a
simplified 'waterfall recruitment process' to recruit 'world class' talent.

• Structured interviews: Interviews conducted by the Recruitment & Selection

Committee of MARUTI, while hiring for senior executive positions, should cover the
following basic aspects:
✓ Decision making
✓ Problem solving
✓ Achievement
✓ Deadline consciousness
✓ Crisis management
✓ Customer orientation
✓ Leadership
✓ Motivation
✓ Communication
✓ Inter-personal skills

72
 ✓ Planning
✓ Adjustment

• Emotional Intelligence: The recruitment policy of MARUTI should incorporate an

evaluation of 'emotional intelligence', thus entMarutiling the assessment of self-
awareness, self-regulation, motivation, empathy and social skills, during the
evaluation of the potential candidate.

ContMarutining political pressure: Political pressure exerted by trade unions is one of

the biggest problems faced by MARUTI. These trade unions leaning towards particular
political groups hamper the natural process of recruitment. The relevant authorities within
the organisation should induce requisite efforts in contMarutining this emergent political
influence coupled with appropriate government assistance.

73
 LIMITATIONS OF MY STUDY
• The scope of the study in terms of coverage is limited to the Technical operations of
the MARUTI.
• Within the organisational layout, the research study would be largely confined to the
Personnel and Administration Department.
• Within the organisation the study is limited to the top-level management of the
Personnel Department of the organisation (out of which a sample of the respondents
are also members of the Recruitment & Selection committee). This is for the purpose
of administering the questionnMarutire.
In line with the purpose of conducting employee interviews, the study would be
confined to personnel holding typical designations within the organisation at different
levels of management.

Although the limitations that I faced in the organizations is the absence of Trade
Unions co-operation, otherwise which could have help me in understanding the
industrial relations in a comprehensive manner. Secondly, the limitation that I have, is
the scope of collection of sample size which was confined to only one department,
which would have other wise made my study and observations in an effective
manner.

74
 CONCLUSION
The study which I conducted on Human Resource Management of MARUTI has been a
very knowledgeable experience. The extent of knowledge derived in the process was
colossal.

At the outset, the objectives were to analyze the above mentioned fields of MARUTI.
The entire thesis report has been effort to do just that the insight obtMarutined has been
helpful in undertaking what makes the industry happening.

‘Survival of the fittest’ seems to be the mantra in the Marutirline industry as many
ambitions plans toppled down in the work of varying problem. Lack capital intensive
nature of the industry regulations, the commercial decisions, poor long terms planing,
over capacity, deep waters. Industry analysts place a minimum FLF 68% to break even if
the Marutirline is using 737-200 series Marutircraft but most of the Marutirlines pl7ay
near of this point. Default, Delayed payments and financial crisis seems to be the
buzzwords in the aviation industry if one goes by the recent track record of some of the
pvt Marutirlines.

Factors Marutiling the Marutirline Industry

• Most Marutirline companies don’t adequately utilize their capacity

• Lack of sound financial planning

• Price wars for acquiring higher share of the pie.

• Crippling government regulation like 10% coverage of category two routes with
yearly average PLF of 25%

• Lack of co-ordinate among pvt Marutirline to share the overheads

• Uneconomic lease agreement with the foreign leasing companies.

MARUTI seems to have kept their slates clean as far as payments and mMarutintenance
of Marutircraft is concerned. Initially after its incorporations MARUTI go before
establishing market leadership in the high court high risk, MARUTI is still a fledgling

75
one in an industry where size counts in spreading cost and benefiting from economics of
scale.

The following conclusion are what I perceive and have nothing to do with any person’s
or organizations opinion.

1. With the talks on dis-investment & Pvt. Participation in MARUTI, domestic

Marutirlines Marutirline will have to curve out strategic approach to exploit the
potential in the market and serve the customer as well as the employees to the best
possible extent.

2. A draft policy on civil aviation in Maruti the approval of the government. This
would enhance the infrastructural facilities for the players ground

3. MARUTI have, with time increased its fleet strength to grow as one of the
specialised service provider. The future plans do indicate the vision of the to be a
forerunner among the best engineering.

4. In true contemporary conditions and market cohesiveness MARUTI changed to

focus form customer satisfaction to creating customer delight. This is much better
comprehended by the change in its corporate, image.

5. The healthy competition of domestic Marutirlines has set new trends in the quality
of service. With the oncoming the quality of services and the pride of the job.

6. It is a matter of great significance that the Marutirline staff new care about the
passenger comfort and take pMarutins to see that the flights are on time. The high
percentage 98% of on time service.

7. MARUTI do benefit by the efforts embarked by the establish a long lasting

support with the Indian masses. The mother brand do support this organization in
every possible way to set was benchmarks in the aviation industry.

8. Emotion rather ‘Rational’ approach is being used as an advertising tool. The

advertisements and sales promotional schemes to reflects this move. ‘Emotional
year seem to making an impact.

76
9. ‘People first’, is what MARUTI trusts upon, placing people’s interest on top
priority have made this organization a proud place to work with. Profit sharing by
MARUTI Maruti and the corporate culture Oozing in side the veins of its
employees is surely a mater of envy for others.

10. ‘Valve for money’ objective of MARUTI have worked, since its competitors have
started strategic shits in pricing policy, sales promotion Schemes and quality of
service.

11. All sMarutid and done, one most conclude by emphasizing that there is nothing
more interesting and stimulating then to come in close contact with a company
which is every employee’s dream place.

77
 BIBLIOGRAPHY
1. BOOKS
• Robbins P. Stephens, Organisational Behavior, Prentice Hall, 7th Edition, Chapter 16,
pages 636-641.
• Koontz Harold & Weihrich Heinz, Essentials of Management, Mc Graw Hill, 5th
Edition, Chapter 11, pages 217-245.
• Decenzo A. David & Robbins P. Stephen, Personnel/HR Management, Prentice Hall,
3rd Edition, Chapters 6,7 & 8, pages 117-209.
2. Magazines
• India Today
• Today’s traveller
• A&M
• Business Today
• Business World
• Business Digest
3. News Paper
• Times of India
• Hindustan Times
• Economic Times
• The Pioneer
• The Hindu
• Catalyst
• Financial Express
• Economic and Political Weekly
4. Research Papers
• ASSOCHAM (Aviation open house 2003)
• PH.D Chamber of Commerce & Industry
5. Web sites
• www.maruti.com
• www.indiatimes.com

78
 QUESTIONNAIRE
NAME:
COMPANY:
DESIGNATION:
DEPARTMENT:

1. What is the working period of employees in the company?

Within 1 year
Between 1-2 years
Between 2-3 years
Between 3-5 years

2. What are the reason of the candidate to join the company?

Reputation of the company Salary package
Working environment Job prospects
Location of the company Career growth opportunity

3. How candidates are recruited in the company?

Written exam Written exam and interview
Written exam, GD and interview Others

4. Did you get the same job specification as offered during the interview?
Yes No

5. Is the recruitment and selection procedure followed by the company appropriate?

Yes No

6. Does your company disclose the job satisfaction at the time of selection of a candidate?
Yes No

79
7. Does your company ask for references at the time of selection?
Yes No

8. What percent of the selection procedure does the written test contribute?
Yes No

9. Which type of interview methods does your company usually follow?

Direct GD interview Other

80