Ashir Madaan (13P131) Avishek Dasgupta (13P136) Kanika Virmani (13P146) Rahul Aggarwal (13P159) Siddharth Gautam (13P171)

Tarun Gupta (13P177)

PGPM Section C Group 2

About Maruti
Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan, was established in Feb 1981 through an Act of Parliament.

Though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Altokei car
On 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki India Limited. The company's headquarters are on Nelson Mandela Rd, New Delhi. Maruti Suzuki has been the leader of the Indian car market for over two and a half decades.

Environmental Effect

Environmental Effect
Task Environment
Suppliers Customers Labour Market

General Environment
Government Economy Political

The yen's dramatic decline since Japan's Prime Minister Shinzo Abe embarked on his campaign for bold monetary easing has proven to be a huge filip for Japanese and Japan-related firms. Maruti Suzukis exposure to the yen is nearly 20-25 per cent of its revenues. Around 1 per cent weakness in the yen against the dollar helps Maruti Suzukis earnings by about 4 per cent.

Maruti Suzuki Top Leadership - 2014

Admn. (HR, Finance, IT & COSL) Mr. SY Siddiqui, Sr. MEO

SHARED LEADERSHIP

Production (PRODN & PE) Mr. Ohashi Tsuneo, DIR & MEO Mr. MM Singh, Sr. MEO

Mr. Shinzo Nakanishi Managing Director & CEO

Engineering (Engg & QA) Mr. Asai Keiichi, DIR & MEO

Marketing , Sales & Service Mr. Mayank Pareek, MEO Mr. T Hashimoto, EO

PAIRED LEADERSHIP

Supply Chain Mr. Ayabe Kazuhiko, DIR & MEO Mr. S Maitra, Sr. MEO

Organizational Hierarchy
Top Mgmt.

(Director/MEO/EO)
Sr. Mgmt. (SFM1/DDVM/SFM2/DVM) Middle Mgmt.-II (FM/DPM) Middle Mgmt.-I (L13 (MGR). /L14 (Sr. Mgr.) Junior Mgmt. (GET/ET/L11 (Asst. Mgr.)/L12 (Dy. Mgr.) Supervisors (DET/L07 (AS) (Asst. Supv.)/L08(S) (Jr. Eng.)/L10(S) (Sr.Eng) Ass(TT, Jr. Associate, As Associates

(TT, Jr. Associate, Associate, Sr. Associate)

Vision and Core Values

VISION: The leader in Indian automobile industry, creating customer delight and shareholders wealth; a pride of India.
Customer Obsession

Fast flexible and first mover

CORE VALUES

All the major decision taken by the company is based along the core values. Openness & Eg: Learning Maruti Suzuki has tied up with IMI, Delhi - Networking and Partnership - various research projects

Innovation & Creativity

Networking and Partnership

Organizational Analysis
The analysis of MSIL can be done using McKinsey 7S Framework

Organizational Systems
Attendance and punching system Welfare Activities Monday bazaar, family day, recreational rooms

Uniform System

Ringi System

Canteen Facilities (OPEN CANTEEN)

Meeting Schedule

Gate pass System

Span of control

Vigilance

Medical Insurance

HR Department

HR

Centralized Team

Decentralized Team

Talent Acquisition

HRM(Compens ation)

People development

Supply Chain HR

Engineering HR

Commercial HR

PPDV
To provide well rounded development of employees training is divided into 6 forms Behavioural Training Enhancement of motivational receptiveness and development of soft skills. Leadership Training Development of attributes desired in a leader, desired ways of behaving, ways of thinking or feeling, guiding and motivating subordinates Functional training Enhances capabilities of employees, thereby improving the skills levels and career path within the organization.eg. 3G, 3K, 5 S, PFMEA, QC etc Safety training Help establish a safety culture in which employees themselves help promote proper safety procedures while on the job. Foreign Training Employees are sent to SMC, Japan to learn latest technology and have better insights of our counterpart's functioning. In House Training Incorporates a mixture of classroom style instruction and hands on practical application using strategic content-all guided by expert

Relationship with Distributors/Suppliers/Dealers (1/2)

Training provided by MACE (Maruti Centre of Excellence)

Mace use collaborative approach to help its client know the worlds best practise and to assimilate these practice in their day to day operations.
Various activities practiced and taught to supplier/dealer at their sites: Customer complaint handling and analysis. Analysis of in-house rejections Team oriented problem solving approach. Quality circle. MPS Maruti Production System to improve productivity. Health, Safety and Environment management system. Value stream mapping. Inventory turnover ratio. Energy consumption monitoring. TPM. TQM. Vendor system audit. Dealer /MASS audit.

Relationship with Distributors/Suppliers/Dealers (2/2)

Helps in vendor up gradation Dedicated an Supply chain HR Department Engagement with Dealers Dealers Management System (DMS) Dealers can apply online to associate with Maruti Annual conference to recognize dealers for their work Best Dealer award is given to dealer based on: Sales Customer Experience Customer Satisfaction Establishment of Regional Offices

Challenges Faced

Missing of Succession Plan Maruti has been market leader for about 30 years in India. It has a huge loyalty among the employees with most of the people working in Maruti for about 25-28 years. One of the major challenges faced by Maruti is Large chunk of leadership will retire in next 3 years. They currently dont have a succession plan in place. The above issue is due to the NO-FIRE policy of Maruti.
Leadership Virtues The Maruti is planning to take an initiative that every leader in Maruti will create a successor in his/her stay in coming two years. Business head are pushing for this cause but the plan is still in very nascent stage. Cost Cutting With Dollar rates increasing in the market there has been impact on the Yen. The Maruti has thus taken lot of cost cutting steps to lower the operating cost by 20%.

Challenges Faced

Handling Gen-Y Attrition rate is very low in Maruti and always been a single digit figure. However, the attrition among the Gen-Y is increasing. The Gen-Y is difficult to handle and they are raising their voice and revolting against the current practices.
Training Challenges Lot of money is invested in the training of Gen-Y in Maruti. Also lots of initiatives are taken for Employee Engagement but they dont have any process to measure the impact of these steps. Due to high rigidity owning to Japanese culture, they are not able to various cultural events and parties which attract and help in retaining Gen-Y and other employees. Thus, one of the major challenges is modification of Japanese style of training and working according to the Indian context.