INTERNATIONAL MANAGEMENT INSTITUTE

Maruti Suzuki India Limited

Corporate immersion Program Report
Ashwary 3/13/2014

About the Organization

Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 50 per cent of the domestic car market. Not just one of the largest car makers, but also the largest car-products manufacturer in the country. This has transformed the company, from just a car company, to Indias Way of Life.

The Maruti Project was launched in October 1980 and the automobile industry in India witnessed a revolution. It was Sanjay Gandhi who conceived the Maruti Project. Despite tremendous odds and Criticism, he set up the facilities to manufacture a low cost peoples car in Gurgaon. A factory Building having covered area of 80,000 square meters-one of the largest in the country- was designed and built to suit the needs of a modern automobile manufacturing centre. The central government took steps to incorporate Maruti Udyog Ltd. as a hundred per cent Public Sector Company in February 1981. The main objective was to produce a fuel efficient car, ideally suited to the Indian road and climatic conditions, which would conform to international standards of fuel emission. In 1981, Suzukis own production in Japan of passenger cars was 95,000. Its international operations were quite small in comparison with those of Toyota and Nissan. Osama Suzuki evaluated the Government of Indias commitment to the success of the proposed joint venture. The choice of the relatively small Suzuki Motor Company as its partner had rested on Maruti Udyogs assessment that the Japanese company had the integrity, resources, skills and potential to make good on its promises. On October 1982, Maruti and Suzuki signed a license agreement for technology transfer and a joint venture agreement giving Suzuki equity participation of between 26 and 40 per cent to produce a range of modern fuel efficient vehicles, suited to the needs of the Indian economy.

Organizational Structure
Shared Leadership and Paired Leadership: Each function has an Indian head and a
Japanese head paired together, except Admin( HR, IT, Finance, COSL) such that they look after the function sharing responsibility.

Maruti is characterized by functional organizational structure having Horizontal linkages. Based on automotive engineering operations, the firms organizational structure has several divisions. These encompass the following functions: Engineering, Sales, Finance, Spares, Administration, New Business, Information Technology, Human Resource Development, Maintenance, Quality Assurance and Parts Inspection. Being a large organization, Marutis organizational chart is further subdivided in to smaller sub sections depending on other criteria like location, plant, product etc. Maruti has a total of 29 divisions operating under one Divisional Head who is serving as Functional post in the structure. The structure further reveals that within these divisions are 132 departments under stewardship of one departmental head. These Department Head are also functional posts. This structure is designed on the same pattern as that of Japanese Suzuki Motor Company which is Marutis partner. Human resource planning, plant layout and installation of production facilities are intrinsic in nature to Suzuki Motor Companys structure.

Chairman R.C. Bhargava

Managing Director and CEO Mr. Kenichi Ayukawa Admin (Hr, Finance , IT& COSL)

Joint Managing Director

Mr. T. Hasuike

Marketing and Sales

Engineering

Quality Assurance

Supply Chain

Production

Levels /Positions at MSIL

Organizational chart at Maruti is functionally flat. A functionally flat organizational structure means that there are few levels of administration hierarchy. It is a desirable kind of structure since problems related to information delays, misinterpretations and corruption are minimized. This is possible because information will go through few hierarchy levels before getting to intended recipient. There are only seven functional levels in which employees can be divided into. It implies then that every employee must fall in either of the following level: Division Manager, department Manager, Section Manager, Executives, Supervisors or Workers and Technicians. However, hierarchically, these are divided into different levels, like, Technicians are divided in 7 levels (L-1 to L7), Supervisors in 3 levels (L-8 to L-10), Executives and Managers in 4 levels (L-11 to L-14). Above this the Levels are designated as IDPM (In charge Department Manager), DPM (Department Manager), DDVM (Deputy Division Manager), and DVM (Division Manager). The Section Manager, Department Manager and Division Manager are all Functional posts, which means anybody from levels L-11 to L14 can be a Section Manager, an IDPM or a DPM can head a Department, and an DDVM or DVM can head a Division.

Top Management DIR/SR MEO(COO)/ MEO(Sr ED)/EO(ED)

Senior Management DVM(VP)/SFM2(Chief GM)/DDVM(GM)/SFM1

Middle Management II DPM(AGM/DGM)/FMGR(AGM/DGM)

Middle Management I MGR (Senior Manager)/L13 Manager

Junior Management 1 L12 (Dy. Mgr)/ L11 (Asst. Mgr)/ ET (Exec. Trainee)/GET (Graduate Engg. Trainee)

Supervisors L10(S) (Sr. Eng.) / L09 (S) (Eng.)/ L08 (S) (Jr. Eng.) / JET

Associates MA15-MA 3/ CT

Vision & Mission of the Organization Vision: THE LEADER IN THE INDIAN AUTOMOBILE INDUSTRY, CREATING CUSTOMER DELIGHT AND
SHAREHOLDERS WEALTH; A PRIDE OF INDIA

CUSTOMER OBSESSION

OPENNESS AND LEARNING

FAST, FLEXIBLE & FIRST MOVER

NETWORKING AND PARTNESRSHIP

INNOVATION AND CREATIVITY

Major Businesses
The company is mainly in the business of manufacturing passenger cars for both domestic and international markets. Maruti Suzuki has taken care of all car needs of the consumers and has offered efficient service ever since its inception. This includes: Finance Insurance Maruti Genuine Accessories Maruti Genuine Parts Maruti Driving School and Autocard Pre Owned car sales

Organizational Performance
Net Sales: 4,26,125 millions PAT : 23,921 millions

Sales Volume: 10, 51,046 in domestic market and 1,20,388 exports

Snapshot 2012-2013 Turnover Net Profit Sales Nos. Market Share Manpower Models Joint Ventures and associates

Rs. 426125 mn Rs. 23921 mn 1171434 units 39.10 % 12089 17 29

Structure of HR Department
HR department of Maruti Suzuki India Limited is very robust in its approach to adopt a structure which facilitates the execution of a specific Strategy. This fact gets substantiated with the restructuring of MSIL in 2010 when the de facto HRD department was split into HRM and PPDV. The Structure of HR Department in MSIL is as follows:
Human Resource Department

HRM

PPDV

EMR

SCHR

CHR

TAQ

DDVM/SFM2

DDVM/SFM2

DDVM/SFM2

DDVM/SFM2

DDVM/SFM2

DDVM/SFM2

DPM/SFM

DPM/SFM

DPM/SFM

DPM/SFM

DPM/SFM

DPM/SFM

Deputy Mgr

Deputy Mgr

Deputy Mgr

Deputy Mgr

Deputy Mgr

Deputy Mgr

Assistent Mgr (L11)

Assistent Mgr(L11)

Assistent Mgr(L11)

Assistent Mgr(L11)

Assistent Mgr(L11)

Assistent Mgr(L11)

Supervisors

Supervisors

Supervisors

Supervisors

Supervisors

Supervisors

Associates

Associates

Associates

Associates

Associates

Associates

In every vertical of HR department , there is a high vertical differentiation which is headed by a Divisional General Manager or Senior Functional manager 2 who contribute to the leadership in the department. We worked in the PPDV department which was headed by Mr. A.D. Burman who is the General Manager of PPDV department. The lower Level of a department consists of associated or new joining who have least work experience or sometimes freshers . Then the next level up in the hierarchy is Supervisor which is

again headed by Assistant Manager who has a positioned L11.These L11 assists the Deputy Manager in its work as delegated to them by their head i.e Senior Manager. Senior manager is an experienced person with quality experience of the field and this senior manager reports directly to the Deputy Divisional manager i.e. Senior Functional Manager who again reports to the head of department i.e. DDVM/ SFMGR. Since Maruti Suzuki India Limited Leads in the Manufacturing Sector where tall Hierarchy, Mechanistic Structure and high level of Formalization is can easily be observed in order to run the business in a controlled environment. Maruti Suzukis Structure which is focussing on high level of specialization , is directly look after by the HR Department Head Mr. S.Y. Siddiqui who is the Senior MEO of the Organization and has direct authority over Finance, IT, HR and CS. In his Leadership Organization feel robust in its approach to follow a structure which follows the People Strategy of the organization. During our tenure as a Management trainee, we were reporting to Ms. Aparna Alapati who is the Assistant manager directly reports to MR. Burman.

Manpower
Total Manpower in each Department vary from 9-11 and our concern department which is PPDV (People Development) has a manpower of 9 employees including the head of department Mr. A.D Burman.

Different verticals of HR department

HRM (Human Resource Management)
This department Focuses on the following : Creating and Communicating all HR related policies to the organization. Conducting and executing Assessment centres and Development centres for Employees. Execution of Performance management system and performance appraisals. Working on HR compliances and all miscellaneous HR Functions.

PPDV (People Development) This department is the training authority of the organization and came into existence in 2010 when HRD was split into HRM and PPDV. The responsibilities and working of PPDV is as follows. Conducting all the training related activities in the organization These training include all kind of behavioural and functional trainings. Responsible for increasing Human capital of the organization. Seeks opportunities in developing and nurturing employees as per the current needs and technology. Analyzing organizational growth w.r.t human growth.

EMR (Employee Relations) One of the critical function of any manufacturing organization is Industrial relations. This function is responsible for harmonizing the relationship between employees and management. The EMR team sits in the centre of plant so as to cater the need of workforce and leading to increased productivity. SCHR (Supply chain HR) Integrated closely with the HR department. Responsible for the operational Supply chain department of Maruti Suzuki india Limited. Supply chain being one of the integrated and critical function of marutis operations and hence must need special focus for sustainable performance.

CHR (Commercial Human Resources) This department sits in the corporate office of Maruti Suzuki i.e. Vasant Kunj , New-Delhi. Works closely with PPDV department in carrying out regional trainings for the employees and this department directly reports to the PPDV department. This department also works as a the HR generalist to the organization. TAQ (Talent Aquisition) Manpower planning activities are carried out by this vertical. Headed by Mr. Mussarat Hussain.

Also responsible for various campus connect programs and recruitment drives in order to bring the best talent into the organization.

All these department work closely with each other in order to cater needs of the organization as well as each of them.

About the Project/Task assigned:

We were not given a complete project. We were given different tasks of various projects. List of tasks are described below: 1. Training Data Validation and a comparative analysis for the past 8 years. Segregation of past data in a prescribed format. Mapping with missing parameters (Location, Plant, Department, Division, Directorate, Level Categorisation and Training Categorization). Conversion of training duration into a single unit. Identification of anomalies in the past data. Analysis of this data year-wise for all possible combinations. Comparative trend analysis over years. 2. Preparing SOP for Learning Management System. Understanding the existing LMS system. Understanding its advantages over ERP. Studying the LMS handbook to identify capability of the system. On-hand experience of the system on Test Server. Review and feedback of LMS. SOPs for most frequently used functions in LMS. 3. Developing an In-house quizzing culture. Evaluating nominees on parameters like past quizzing experience, competitions won, why they are interested in quizzing and what value addition they will bring to the organisation. Idea generation on the following aspects. What is the process of conducting a quiz What type of quizzes can we conduct What can be the format of the quizzes What can be the frequency for these quizzes How to enable the quizzes to take place How will the question banks be formed Who can conduct these quizzes What kind of ground rules should we formulate for CFT member

METHODOLOGY
1. Training Data Validation and a comparative analysis for the past 8 years: Methodology We were given a file named Training Dump which contained all the training data of the past 8 years. Training data consisted of many important fields like employee name, employee ID, name of training, duration of training program, start date/end date etc. We segregated the data in a prescribed format. We also mapped the data with missing parameters like Location, Plant, Department, Division, Directorate, Level Categorisation and Training Categorization. We converted training duration into single units like hours and days. From this conversion, we were able to calculate the mandays and were able to do the analysis whether the required number of mandays (i.e.52,000 in Maruti) were met or not and if not then what was the gap. We also analysed what is the trend in past years regarding number of mandays whether it has increased/decreased or remained constant. Then, the next step was the identification of anomalies in the past data. Its purpose was to look upon the reliability of the data so that it can be used by organisation for any further analysis or not. We found three types of anomalies in the data. Start Date/End Date Error Duration Error Missing Field Error We calculated percentage of each type of errors for all the years and total percentage of error and analysed the trend in the percentage of error each year. By doing this, we were also able to find the various possible reasons for the occurrence of such type of errors and suggested few changes in the data entry to avoid such errors. Some measures can be taken like mandating the fields so that problem of missing data can be avoided. Some more fields should be added which can be helpful in cross checking the redundant data. Format should be made standardized etc. Then, we did an analysis of this data year-wise for all possible combinations and represented the trend graphically, making a comparison of all the trends over the years.

2. Preparing SOP for Learning Management System. Methodology: Understanding the existing LMS system: Before making any SOP, it is necessary to understand the entire process for which SOP has to be made. So, first we understood the entire LMS system. We got a hands on experience on their Test Server and thus learned about various functions of LMS and how it is used. To understand these processes, we first went through the LMS manual and then performed those functions on the Test Server.

Understanding its advantages over ERP: We also understood various advantages of LMS over ERP. ERP has limited number of fields and provides less customization while LMS has extensive fields with much more customization. SOP for most frequently used function in LMS: We also got the opportunity to use their LMS. We updated their training calendar for the month of March. We understood the entire function of updating the training calendar and thus made an SOP describing the entire process.

4. Developing an In-house quizzing culture. Methodology: PPDV department of Maruti wants to start an In-house quizzing culture so as to enhance employee engagement, employee knowledge and employee participation in external quizzing events. For this, they had invited applications from the interested candidates. For that, each candidate had filled a response form consisting of questions: About yourself Past quizzing experience/competitions won Why they are interested in quizzing What value addition they will bring to the organisation We evaluated each nominee by assigning a particular weightage to all the questions and gave particular marks to each nominee out of 100, based upon our understanding. Then, out of those 38 nominees, 19 were chosen by our mentors to form a team whose function will be to facilitate the entire quizzing process. We then designed a layout of the entire quizzing process with idea generation on the following aspects. What is the process of conducting a quiz What type of quizzes can we conduct What can be the format of the quizzes What can be the frequency for these quizzes How to enable the quizzes to take place How will the question banks be formed Who can conduct these quizzes What kind of ground rules should we formulate for CFT members For this, we brainstormed together and came up with the solutions to all the above addressed problems and made an SOP for the CFT (Cross Functional Team) members. The entire process is proposed in the SOP attached below:

SOP for In-House Quizzing

Purpose:
To facilitate cross functional team to conduct quizzes for the purpose of developing an in-house quizzing culture in the MSIL.

Scope:
The scope of this process will be to assist cross functional team to create an in-house quizzing culture in the organization to facilitate all the employees of the organization (MSIL-Gurgaon, Manesar, and MPT) to take part in quizzes frequently, motivate them, keep them abreast of general knowledge and prepare them to take part in various external quizzing events.

Process:

Start the process

Selecting a team of 4-5 members from CFT.

Deciding theme and format of the quiz.

Deciding date of the quiz and window timings for the quiz.

Preparing a question bank.

Setting auto mailer. (For a week before the quiz and for a day before the quiz) Reviewing questions.

Updating in LMS announcements. (Week before the quiz)

Finalizing POCs. (IT-POC, CFT-POC, PPDV-POC)

Uploading Quiz.

Execution.

Evaluation, announcement of results and providing answer keys through auto mailer. (Within 48 hours)

Feedback mail. (For scope of improvement and problems faced)

End of the Process

Procedural Steps:
S.No. 1. Selecting a team of 4-5 members from CFT on rotation basis. 2. Quizzes to happen fortnightly. 3. Deciding theme of the quiz. Various themes can be: a) About MSIL b) Occasional (For e.g. Independence Day, Gandhi Jayanti etc. or if elections are coming then theme can be current political affairs etc.) c) Technology based d) Environmental e) History f) Business based g) Automobile industry h) Sports i) Economics j) Miscellaneous 4. CFT CFT CFT Description Responsibility CFT

Deciding format of the quiz: 1. Quiz will be of 20 minutes consisting of 25-30 questions. 2. Questions can be of the form: a) Multiple choice questions with one correct answer b) Multiple choice questions with more than one correct answer c) Fill in the blanks d) True/false 3. Quiz will be uploaded on the employee portal and employee can give the quiz anytime during the window of the quiz.

5. Deciding date of the quiz and window timings for the quiz preferably 8 hours (one day). 6. Preparing a question bank: A question bank of 200 questions will be prepared by the selected members for the particular quiz.(40-50 questions per person) (Out of these, 25-30 questions will be randomly selected by the system) 7. Reviewing the questions: Questions prepared will be reviewed by the members together to remove any redundancy in the questions. 8. Setting auto mailer: Auto mailer to be set before one week of the quiz to inform employees about the quiz and also one day before the quiz as a reminder. 9. Updating in LMS announcements: This is to be done a week before the quiz. 10. Finalizing the POCs: POCs need to be made for coordinating the entire quiz. 1) One POC needs to be made from the IT department for uploading the quiz. 2) One POC needs to be made from the selected CFT members to coordinate with other departments. 3) One POC needs to be made from PPDV department for auto mailers. 11. Uploading Quiz: The quiz should be uploaded one day before the date of quiz. 12. Execution: Window for the quiz to be open for the desired hours to make

CFT

CFT

CFT

PPDV

PPDV

CFT

IT department

IT department

quiz accessible for everyone. 13. Evaluation, announcement of results and providing answer keys through auto mailer: This needs to be done within 48 hours after the quiz. 14. Feedback mail: A feedback mail to collect feedback on problems faced by the participants during the quiz or regarding any scope of improvement or anything they liked about the quiz needs to be sent across. 15. Working on feedback: The entire CFT team has to sit together to work upon the feedback received post quiz from the participants. CFT CFT+PPDV CFT+PPDV

CFT groundrules:
1. The only reporting authority for CFT is PPDV. 2. No CFT member will discuss the questions of the quiz with anyone outside CFT. 3. All theme based decisions must take place with the concensus of the selected team members. 4. There will be one POC assigned for a particular quiz who will cordinate with external stakeholders (other departments). 5. Every proposal of the quiz by CFT must be approved by PPDV department. 6. CFT must submit a report of past quizzes, participant details, winners details and other relevant data to PPDV department once in a quarter. 7. CFT will be responsible for generating awareness about the quiz and encourage employees to participate in the quiz.

SOP for LMS Class Creation

Purpose:
To create a training calendar for employees month wise so that they can look into the details of the training program on their intranet and can get themselves nominated for the desired training. It will help in keeping employees updated about the various trainings coming up. With increased automation in the process, employees will be getting timely reminders about the training programs they need to attend.

Scope:
The scope of this process will be to facilitate all the employees of the organization (MSIL-Gurgaon, Manesar, MPT) to view the training calendar and nominate themselves for the required training. It extends to the whole of organization.

Process:

Start the process

Click on LMS

In the menu bar, go to learning management Login in pitstop as admin

In learning management, go to classroom training management and in that go to classroom training configuration management and go to add.

Fill all the mandatory fields and required optional fields and save it in the catalog folder.

Then, Click on Save and Proceed.

Recheck the filled data and click on Publish Training

Go totraining Client Management provide After calendar for and the month isCatalog Access to all the verticals. generated, go to verticals/desired User Management.

Go to Announcement Management in Collaboration Items Management and add announcement of the training calendar for upcoming month.

End of the process

Procedural Steps:
S.No. 1. Description First login into the LMS system as admin. 2. In the menu bar, go to learning management. 3. In learning management, go to classroom training management and in that go to classroom training configuration management and go to add. 4. Fill all the mandatory fields. 5. Mandatory fields include: a. Blended Learning: By default, set blended learning to yes. b. Classroom Training Name: Add the name of the training program. c. Start Date/End Date: Add Start date and End date d. Start Time/End Time: Add start time and end time of the training program. e. Classroom Training Topic. f. Credit duration: Add credit duration in hours. (1 day=16 hours) g. Training Category. h. Select Administrator: Select administrator from the drop down list. i. Venue: Select venue from the drop down list. j. Select Catalog Folder. 6. Fill the required optional fields. 7. Required optional fields include: a. Instructor: Select the name of the instructor of the given training. b. End Date for Registration/Cancellation: Select one date before the training start date except holidays and Sundays. c. Confirmed learners first reminder date: Select two dates before the training start date except holidays and Sundays.(Example: Training Start date:23/02/2014, then select 21/02/2014 if none PPDV PPDV PPDV PPDV PPDV PPDV Responsibility PPDV

d. e. f. g. h. i. j. k.

of the dates 21 and 22 are not a holiday) Confirmed learners second reminder date: Select one date before the training start date except holidays and Sundays. Approval Required: Default Setting-Yes. Mark Attendance at: Default Setting- Classroom training level. Maximum Waiting list size. Batch Size. Minimum Batch Size. Contact Reference: Provide Email IDs of the contacts. Target Audience: Fill the target audience for which the training is being conducted. PPDV

8. Then, Click on Save and Proceed. 9. Recheck the filled data and click on Publish Training and then OK. 10. After training calendar for the month is generated, go to User Management. 11. Go to Client Management and provide Catalog Access to all the verticals/desired verticals. 12. Go to Announcement Management in Collaboration Items Management and add announcement of the training calendar for upcoming month so that employees can know that the training calendar is uploaded in their intranet and can get themselves nominated.

PPDV

PPDV

PPDV

PPDV

Overall Learning of the HR Functions

Since in our 10 days of closely working in the HR framework of Maruti , we came across different aspects of HR functions and specially the practical implications of Training Department. The Important learning were: Since in our Data analysis we learnt that training data is very critical to evaluate organizations performance in a time span and this data justifies the rationale behind performance fluctuations and also indicates the necessary intervention needed in training that can substantially scale your employees skill levels and give you a competitive advantage. The data storage is also a very critical task since it takes a lot of effort in cleaning data anomalies and hence we can generalize from this case that keeping data managed in every

single phase of organizations working will make your analysis accurate and deters the increased cost of data cleaning . HR department must not besiege by their own functions which are intrinsic to them but also observe the direction and need of the business , which will help HR customizing the service they offered in the favour of the organization growth. I also learned the importance of technology in the transactional role of HR . There we equipped ourselves with the Learning management system technology which helps in increasing the communication in the organization and improves the productivity of the HR professionals. In a giant organization like Maruti Suzuki which focuses on standardization of processes , role of forming statement of purposes is a win win step in increasing the efficiency of employees. I also learnt about the culture that maruti Suzuki have which can be stated as : 1. Disciplined 2. Care for employees. 3. Integrity internally as well as externally: As we observed a very harmonious relation between internal stake holders i.e. employees as well as external stake holders like suppliers and vendors etc. 4. Japanese school of thoughts are well implemented in the operations . 5. The culture is focusing on dignity, respect and hardwork. We also designed different SOP for different functions which was new to us and hence the skill of making SOPs got also imbibed in the process. We evaluated individuals according to their answers in the forms and gave us first hand experience on evaluation. We also learnt the operational aspect of Maruti by visiting the plant thus helped in correlating it with the HR process in Maruti.

Bibliography
The employee handbook of Maruti Suzuki.

Annexure: Timeline of the project

1st week

23rd Jan- 24th Jan

2nd week

30thJan-31st Jan

3rd week

13th Feb-14th Feb

Observing the company, its physical space and culture on the first day Briefing about the department and project on the 2nd day 1st phase of the 1st project: Observing the data Sort year wise Convert given duration into hours and days Categorize training as functional and behavioral 2nd phase of the 1st project: Mapping the employee id with their level, division, department, directorate, plant 3rd phase of 1st project: Finding anomalies(duration error) in the classified data

4th week

20th Feb

5th week

27th Feb

Highlighting anomalies Finding the % error in data for each year 1st phase of 2nd project: Studying the LMS system of the organization Entering Fields in the training calendar 1st phase of the 3rd project: Evaluating responses for candidature of developing quiz culture in MSIL Last phase of 1st project: Drawing a trend analysis in training over the years Last phase of 2nd project: Developing SOP for LMS class creation Last phase of 3rd project: Developing SOP to facilitate cross functional teams to conduct quizzes and develop a quizzing culture at MSIL

6th week

6th Mar-7th Mar