CASE STUDY COMPETITION

WELCOMES YOU ALL

INDUSTRIAL REALATIONS at MARUTI

SUZUKI

Agenda of the session.

The case brief.

Strategic analysis,

Roots of dispute,

PEST Analysis,

Approaches to Industrial Relations,

The Case Brief

Maruti Udyog Limited was launched in the year 1981.

Due to change in ownership, Maruti became pre-dominantly govt. controlled.

The laborers readily accepted Japanese work culture and use of modern manufacturing process.

The case

Plant was hit by violence on July 18th 2012.

Workers attacked supervisor,

Started fire, killing company officials and injuring 100 managers.

The General Manager was charred to death.

13 day plant shutdown

Demands raised-

3-fold increase in basic salary. Monthly conveyance allowance of

INR 10,000. Laundry allowance of INR 3,000. A gift with every new car launch. A house for every worker who wants or cheaper home loans

Industrial Relations

Concerns with the relationship between management and worker, and

The role of regulatory mechanism in resolving any industrial dispute.

STRATEGIC ANALYSIS: SWOT

STRENGTHS

First major player.Brand Image An Established brand in Indian market.  Experience in Indian market .Very old player in Indian market.

Labour Union Issues,Plant working conditions,Improper production and floor working,Demotivated employees,Introduce improved recruitment policies.

WEAKNESS

If the Situation is handled properly, there would be huge turnaround by the company.The Union has understood mistakes which they would never repeat again.Lakhs of customers would regain the “Brand trust”Expanding competitions from new automobile companies in India.

OPPORTUNITY

THREATS

Threats of new entry of automobile companies.Depleting market share of Maruti since 1999-2000.Expanding competitions from new automobile companies in India.

The root of Dispute

Dates to year 2000, when employees went for indefinite strike.

To press demand of revision of incentive-linked pay.

Nearly 4,500 employees went on strike for 26 days

The root of Dispute

May 2011, workers applied for the registrationof Trade Union, Maruti Suzuki Employees Union (MSEU)

Management refused its recognition, being existing union in Maruti-

Maruti Udyog Kamgar Union

PEST Analysis-

POLITICALGovernment dominated the managerial

regulations extensively.

The state and central govt. should have been proactive towards the crises.

Implement some legislative decisive rule to curb such gasty violence.

Introduce temporary stations of militant workforce.

ECONOMIC

Providing adequate financial remunerations to employees.

Incorporate slight amendments in annual Incentive scheme to employees.

Introduce certain non-monetary motivators to boost employees morale.

Social factors

Promote initiative to restore corporate confidence.

Introduce quarterly or half yearly get-together celebrations.

Avoiding usage of aggressive language in the organization.

Incorporate civil or law bidding education.

Technological factors

Implement new call-up policies, based on subscriber base system.

Disaster Management System.

INDUSTRIAL RELATION

Marxist approac

h

Unitary approa

ch

Pluralistic

approach

Unitary

Mutual cooperation, Conflict arise out of poor management, Require extensive teamwork

Mediates among different interest groups. A strong trade union is essential. Also, societal interest are protected.

Individual conflict has wider implications. The conflict is equated with social and political

unrest.

Pluralistic

Marxist

The PR by Maruti has not been proactive. Instead, it has been reactionary.Legal action on accused: show that proactive action is being taken against any violations of law.

Maruti CSR campaignA Maruti grassroots CSR campaign that undertakes fundraising for education and healthcare of labour families, to prevent further grassroots support for planned violence or mutiny.

Rebuild Maruti’s India-ConnectMentions of increasingly Japanese management at Maruti was raised during reportage. A campaign to associate Maruti’s traditional image with India will foster unity amongst employees

Flexibility in labor law should be allowed.Workers should have initiated other peaceful ways to conduct agitations.

Reccomendations

Reccomendations

Implement new recruitment methods. Implement regular performance

appraisal mechanism for workers. Effective procedure in resolving

grievances within the organization. Change in attitude- management,

employees and union. There should be a legal framework

within which IR exists.

Conclusion

Motivated and satisfied employees have no reason to indulge in strikes or gheraos.

It is the role of the HR manager to keep employees motivated and satisfied.

THANKING YOU