8/12/2019 Group 2 Section C ODC

1/16

PGPM Section CGroup 2

Ashir Madaan (13P131)Avishek Dasgupta (13P136)

Kanika Virmani (13P146)Rahul Aggarwal (13P159)

Siddharth Gautam (13P171)

Tarun Gupta (13P177)

8/12/2019 Group 2 Section C ODC

2/16

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.

About Maruti

8/12/2019 Group 2 Section C ODC

3/16

Environmental Effect

8/12/2019 Group 2 Section C ODC

4/16

Environmental Effect

TaskEnvironment

Suppliers

Customers

Labour Market

GeneralEnvironment

Government

Economy

Political

The yen's dramatic decline since Japan's Prime Minister Shinzo Abe embarked onhis 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.

8/12/2019 Group 2 Section C ODC

5/16

Mr. Shinzo Nakanishi

Managing Director & CEO

Admn. (HR, Finance, IT & COSL)

Mr. SY Siddiqui, Sr. MEO

Production (PRODN & PE)

Mr. Ohashi Tsuneo, DIR & MEO

Mr. MM Singh, Sr. MEO

Engineering (Engg & QA)

Mr. Asai Keiichi, DIR & MEO

Supply Chain

Mr. Ayabe Kazuhiko, DIR & MEO

Mr. S Maitra, Sr. MEO

Marketing , Sales & ServiceMr. Mayank Pareek, MEO

Mr. T Hashimoto, EO

SHARED

LEADERSHIP

PAIRED

LEADERSHIP

M aruti Suzuki Top Leadership 2014

8/12/2019 Group 2 Section C ODC

6/16

Organizational Hierarchy

Ass(TT, Jr. Associate, As Associates

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

Supervisors

(DET/L07 (AS) (Asst. Supv.)/L08(S) (Jr.

Eng.)/L10(S) (Sr.Eng)

Junior Mgmt.

(GET/ET/L11 (Asst. Mgr.)/L12 (Dy.

Mgr.)

Middle Mgmt.-I

(L13 (MGR). /L14 (Sr. Mgr.)

Middle Mgmt.-II

(FM/DPM)

Sr. Mgmt.

(SFM1/DDVM/SFM2/DVM)

Top Mgmt.

(Director/MEO/EO)

8/12/2019 Group 2 Section C ODC

7/16

Vision and Core Values

All the major decision takenby the company is basedalong the core values.Eg:

Maruti Suzuki has tied up withIMI, Delhi - Networking andPartnership - various researchprojects

CustomerObsession

Openness &Learning

Networking

andPartnership

Innovation

& Creativity

Fast flexibleand firstmover

VISION:

The leader in Indian automobile industry, creating customerdelight and shareholders wealth; a pride of India.

COREVALUES

8/12/2019 Group 2 Section C ODC

8/16

Organizational Analysis

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

8/12/2019 Group 2 Section C ODC

9/16

Organizational Systems

Uniform SystemAttendance andpunching system

Ringi System

Welfare Activities Monday bazaar,

family day,recreational rooms

Canteen Facilities(OPEN CANTEEN)

Meeting Schedule Gate pass System Span of control

Vigilance Medical Insurance

8/12/2019 Group 2 Section C ODC

10/16

HR Department

HR

CentralizedTeam

TalentAcquisition

HRM(Compensation)

Peopledevelopment

DecentralizedTeam

Supply ChainHR

Engineering HRCommercial

HR

8/12/2019 Group 2 Section C ODC

11/16

PPDV

To provide well rounded development of employees training is divided into 6formsBehavioural TrainingEnhancement of motivational receptiveness and development of soft skills.Leadership TrainingDevelopment of attributes desired in a leader, desired ways of behaving,ways of thinking or feeling, guiding and motivating subordinatesFunctional trainingEnhances capabilities of employees, thereby improving the skills levels andcareer path within the organization.eg. 3G, 3K, 5 S, PFMEA, QC etcSafety training

Help establish a safety culture in which employees themselves help promoteproper safety procedures while on the job.Foreign TrainingEmployees are sent to SMC, Japan to learn latest technology and havebetter insights of our counterpart's functioning.In House Training

Incorporates a mixture of classroom style instruction and hands on practicalapplication using strategic content-all guided by expert

8/12/2019 Group 2 Section C ODC

12/16

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 bestpractise 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 rejectionsTeam oriented problem solving approach.Quality circle.MPSMaruti 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.

8/12/2019 Group 2 Section C ODC

13/16

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 MarutiAnnual conference to recognize dealers for their work

Best Dealer award is given to dealer based on:SalesCustomer ExperienceCustomer Satisfaction

Establishment of Regional Offices

8/12/2019 Group 2 Section C ODC

14/16

hallenges Faced

Missing of Succession PlanMaruti has been market leader for about 30 years in India. It has a hugeloyalty among the employees with most of the people working in Maruti forabout 25-28 years.One of the major challenges faced by Maruti isLarge chunk of leadership

will retire in next 3 years. They currently dont have a succession plan inplace. The above issue is due to the NO-FIRE policy of Maruti.

Leadership VirtuesThe Maruti is planning to take an initiative that every leader in Maruti willcreate 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 CuttingWith 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 costby 20%.

8/12/2019 Group 2 Section C ODC

15/16

hallenges Faced

Handling Gen-YAttrition 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 tohandle and they are raising their voice and revolting against the currentpractices.

Training ChallengesLot of money is invested in the training of Gen-Y in Maruti. Also lots ofinitiatives are taken for Employee Engagement but they dont have anyprocess to measure the impact of these steps. Due to high rigidity owning toJapanese culture, they are not able to various cultural events and parties

which attract and help in retaining Gen-Y and other employees. Thus, oneof the major challenges is modification of Japanese style of training andworking according to the Indian context.

8/12/2019 Group 2 Section C ODC

16/16