MICROSOFT

HR AS A TRANSFORMATION PARTNER
IN MARUTI SUZUKI INDIA LTD
Assignment submitted for SHRM

Submitted by: Kolala Shivani
[Pick the date]




[Type the abstract of the document here. The abstract is typically a short summary of the contents
of the document. Type the abstract of the document here. The abstract is typically a short summary
of the contents of the document.]
MSIL, formerly known as Maruti Udyog, was established in 1981. Originally Government of
India owned as high as 74% in the company. The remaining 26% is owned by Suzuki Japan
after entering into JV in the year 1982.
The evolution of the company is illustrated in three phases:
First phase: From its inception till late 1990s when the company started facing competition
from global players. During this phase, company had nearly 80% market share.
Second phase: This phase is from the year 2000 to 2002. During this period, the company
launched different models and focused on improving efficiency.
Third phase: This phase is from the year 2002. The government of India disinvested fits
share from the company.
Over the years, the company`s position has changed from being a public sector undertaking
having nearly 80% market share to a private company fighting with other global players
intensely.
In the early days, the company`s focus was only on reaching targets. The employees were
empowered and got challenging work. They had the freedom to innovate and had high
cohesion.
Later, in the early 1990s with liberalization, the company started facing competition from the
global players. This period gave signs of the end of its monopoly. Customer focus and market
penetration became the mantra of success in that period. To align with the changes, the
company started recruiting only from top institutes like IITs and IIMs.
The company for the first time defined its vision and implemented business planning system.
It started making three-year strategic plans.
Disinvestment of the government paved way for more reforms. SMC started involving in HR
, administration, finance etc., Standards were being raised and the company needed more
innovation.
In the pre 2003 era, HR department lacked focus and the personnel department focused only
on recruitment and promotion.
The major challenges faced are:
To develop HR with a focus on developing employees and prepare them to face the
challenges like increasing competition.
To integrate SMC and Maruti culturally and procedurally.
To make the organization more dynamic and responsive.
To adapt to Globalization.
To streamline the communication channels both internal and external.
To enhance the performance management system.
To increase employee engagement.
To make the organization a learning organization.
To create a culture that is innovative and risk-taking.
To align HR to meet business needs.
Creating a culture that nurtures innovation and risk-taking.
Solutions:
Cross cultural training focusing on the importance to understand other culture and
mutual respect should be given.
Innovation should be rewarded.
More emphasis should be given to succession planning in view of increased poaching
from competitors.
Employee engagement should be increased by communicating the importance of the
efforts put by employees.
The strategy of the company and the short term and long term plans of the
organization should be communicated
To emphasize training and development.
Sending top management to foreign countries to study the practices of foreign
companies to adapt to globalization.