New Bajaj Co. Final

8/6/2019 New Bajaj Co. Final

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An Overview To Bajaj Automobile Co.

BAJAJ GROUP

AUTOMOBILES, HOME APPLIANCES, LIGHTING, IRON & STEEL,INSURANCE, TRAVEL & FINANCE

“DO WHATEVER YOU THINK BEST, BUT BE BEST AT WHATEVER YOU DO”

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-RAHUL

BAJAJ

PROJECT

ON

HUMAN

RESOURCE

MANAGEMENT ON BAJAJ AUTOMOBILE CO.

PREPARED B Y :-

Mahesh Sonkar Rupesh SodaKesarsinh Jadeja

Subject: Organization behaviour

Class: S.Y.B.B.I (SEM 3)

College: Gurukul College of Commerce

Submitted to: Prof. Reshma Khan

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INDEX

NO. CONTENT PAGE NO.

1. Introduction 5

2. History 6

3. Staff Pattern 7

4. Culture of the Organization 8

5. ORGANIZATIONAL STRUCTURE 10

6. Development of Organization 14

7. Motivational Techniques 15

8. Performance Appraisal 17

9. Leadership 19

10. Teamwork 21

11. Rewards 22

12. Promotion 23

13. Conclusion 25

14. Bibliography 26

INTRODUCTION:

The Bajaj Group isamongst the top 10business houses in India. Its footprint

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stretches over a wide range of industries, spanningautomobiles (two-wheelers and three-wheelers), homeappliances, lighting, iron and steel, insurance, travel andfinance. The group's flagship company, Bajaj Auto, is

ranked as the world's fourth largest two- and three-wheeler manufacturer and the Bajaj brand is well-knownacross several countries in Latin America, Africa, MiddleEast, South and South East Asia. Founded in 1926, at theheight of India's movement for independence from theBritish, the group has an illustrious history. The integrity,dedication, resourcefulness and determination to succeedwhich are characteristic of the group today, are often

traced back to its birth during those days of relentlessdevotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of MahatmaGandhi. In fact, Gandhiji had adopted him as his son. Hisson, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942.amalnayan Bajaj not only consolidatedthe group, but also diversified into various manufacturingactivities. The present Chairman of the group, Rahul

Bajaj, took charge of the business in 1965. Under hisleadership, the turnover of the Bajaj Auto the flagshipcompany has gone up from INR.72 million to INR. 120billion, its product portfolio has expanded and the brandhas found a global market. He is one of India’s mostdistinguished business leaders and internationallyrespected for his business acumen and entrepreneurialspirit.

The company is headed by Rahul Bajaj who is worth morethan US$1.5 billion.

HISTORY :

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Founded in 1926, the man behind Bajaj“JAMANLAL BAJAJ” valued honesty overprofit, actions over words and commongood over individual gain. KAMALNAYAN

BAJAJ, in 1942, diversified it into variousmanufacturing activities.

Bajaj Auto came into existence onNovember 29, 1945 as M/s Bachraj

Trading Corporation Private Limited. Itstarted off by selling imported two- and three-wheelers inIndia. In 1959, it obtained license from the Government of

India to manufacture two- and three-wheelers and it wentpublic in 1960.

In 1970, it rolled out its 100,000th vehicle. In 1977, itmanaged to produce and sell 100,000 vehicles in a singlefinancial year. In 1985, it started producing at Waluj nearAurangabad. In 1986, it managed to produce and sell500,000 vehicles in a single financial year. In 1995, itrolled out its ten millionth vehicles and produced and sold

1 million vehicles in a year.

RAHUL BAJAJ took over the charge of business in 1965

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STAFF PATTERN:

The Company has its presence in around 876 officesacross the country with total staff strength of 13,103employees as on 31 March 2007.

The company announced voluntary retirement schemes

for workmen and staff at its plant during the year. 389

employees, both workmen and staff, opted for the same.

Relations with staff and workmen across the plantsremained cordial.

As Businesses continue to expand globally- in over 60

countries, they provide a dynamic working environment,

simulating mentorship and a host of employee benefits

that hoist Bajaj onto the list of “Ten Best Places to Work”.

Creating a better pace for their employee’s to work, whomake magic happen every day.

CULTURE OF THE ORGANIZATION:

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Organizational culture is an idea in the field of Organizational studies and management which describesthe psychology, attitudes, experiences, beliefs and values(personal and cultural values) of an organization. It has

been defined as "the specific collection of values andnorms that are shared by people and groups in anorganization and that control the way they interact witheach other and with stakeholders outside theorganization."

High Values - High Performance” is what defines the workculture at Bajaj. A strong commitment to our values and a

high performance brings with it the rewards, be it yourgrowth or compensation in the organization. Performanceunderwrites your growth. Our compensation systemmakes room for us to suitably differentiate and rewardoutstanding performance. We are strongly focused onEconomic Value Added (EVA) as the metric for measuringfinancial performance. This has improved capitalefficiency and overall business performance. Following

the concept of EVA encourages greater owner - like andentrepreneurial behavior. Our Collective bonus plan islinked to changes in EVA while individual bonuses arelinked to the goal setting and review process. The bestperformers across the Group are recognized in our grandannual award function. There are also schemes whichpromptly recognize and motivate excellent work.

This definition continues to explain organizational

values, also known as "beliefs and ideas about whatkinds of goals members of an organization should pursueand ideas about the appropriate kinds or standards of behavior organizational members should use to achievethese goals. From organizational values developorganizational norms, guidelines, or expectations that

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prescribe appropriate kinds of behavior by employees inparticular situations and control the behavior of organizational members towards one another."

Organizational culture is not the same as corporateculture. It is wider and deeper concepts, something thatan organization 'is' rather than what it 'has'. Corporateculture is the total sum of the values, customs,traditions, and meanings that make a Company unique.Corporate culture is often called "the character of anorganization", since it embodies the vision of thecompany’s founders.

The values of a corporate culture influence the ethicalstandards within a corporation, as well as managerialbehavior. Bajaj industries bring out the best organizationculture for its employee’s in customers across the globe.

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ORGANIZATIONAL STRUCTURE:

An organizational structure is a mainly hierarchicalconcept of subordination of entities that collaborate andcontribute to serve one common aim.

Organizations are a variant of clustered entities. Anorganization can be structured in many different waysand styles, depending on their objectives and ambience.

The structure of an organization will determine the modes

in which it operates and performs.Organizational structure allows the expressed allocationof responsibilities for different functions and processes todifferent entities such as the branch, department,workgroup and individual. Individuals in an organizationalstructure are normally hired under time-limited workcontracts or work orders, or under permanentemployment contracts or program orders.

ORGANIZATIONAL STRUCTURE TYPES:

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Pre-bureaucratic structures

Pre-bureaucratic (entrepreneurial) structures lackstandardization of tasks. This structure is most common

in smaller organizations and is best used to solve simpletasks. The structure is totally centralized. The strategicleader makes all key decisions and most communicationis done by one on one conversations. It is particularlyuseful for new (entrepreneurial) business as it enablesthe founder to control growth and development.

Bureaucratic structures

Bureaucratic structures have a certain degree of standardization. They are better suited for more complexor larger scale organizations. They usually adopt a tallstructure.

It is very much complex and useful for hierarchicalstructures organization, mostly in tall organizations.

Post-bureaucratic

The term of post bureaucratic is used in two senses in theorganizational literature: one generic and one much morespecific. In the generic sense the term post bureaucraticis often used to describe a range of ideas developed sincethe 1980s that specifically contrast themselves withWeber's ideal type bureaucracy. This may include total

quality management, culture management and matrixmanagement, amongst others.

Functional structure

Employees within the functional divisions of anorganization tend to perform a specialized set of tasks,

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for instance the engineering department would be staffedonly with software engineers. This leads to operationalefficiencies within that group. However it could also leadto a lack of communication between the functional

groups within an organization, making the organizationslow and inflexible.

As a whole, a functional organization is best suited as aproducer of standardized goods and services at largevolume and low cost.

Divisional structure

Also called a "product structure", the divisional structuregroups each organizational function into a division. Eachdivision within a divisional structure contains all thenecessary resources and functions within it. Divisions canbe categorized from different points of view.

Matrix structure

The matrix structure groups employees by both functionand product. This structure can combine the best of bothseparate structures. A matrix organization frequentlyuses teams of employees to accomplish work, in order totake advantage of the strengths, as well as make up forthe weaknesses, of functional and decentralized forms.An example would be a company that produces two

products, "product a" and "product b". Using the matrixstructure, this company would organize functions withinthe company as follows: "product a" sales department,"product a" customer service department, "product a"accounting, "product b" sales department, "product b"customer service department, "product b" accounting

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department. Matrix structure is amongst the purest of organizational structures, a simple lattice emulating orderand regularity demonstrated in nature.

How they deal with their employees:

• Employee’s ideas and opinions count.• They trust the people who work for them.• The Management listens to them and involves

them in decision making.• Employees share a good rapport with the

management.• Employees are regularly provided with feedback

related to your performance and work -Appreciation for work well done and opportunitiesfor improvement.

• Employees attend regular training sessions tokeep them abreast with the latest in their industry.

• All Employees are treated as equals. Bonuses,

recognition and salary hikes are given to those whogenuinely deserve it.

• Their boss trusts them and their abilities.Employees are given an open hand to makedecisions, try different things.

• The work culture in their office differs from an "Allwork and no play" scenario. Besides workinghard, all staff members do fun things together along

with the management team - quizzes, contests etc.• Though each person has his/her own definition of an

ideal work place, everyone agrees that the Companythey work for should believe in them and theirabilities!

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Over the years, it has been seen thatmore and more companies in India

and USA are changing the waythey treat their employees. Thisis primarily the reason why thenumber of employees who are happywith the Company they work for isgradually increasing.

Development Of Organization:

Organization development (OD) is a planned,organization-wide effort to increase an organization'seffectiveness and viability. It is a response to change, acomplex educational strategy intended to change thebeliefs, attitudes, values, and structure of organization sothat they can better adapt to new technologies,marketing and challenges and the dizzying rate of changeitself. OD is neither "anything done to better an

organization" nor is it "the training function of theorganization" it is a particular kind of change processdesigned to bring about a particular kind of end result.

OD can involve interventions in the organization's"processes," using behavioral science knowledge as wellas organizational reflection, system improvement,planning, and self-analysis. At the core of OD is the

concept of organization, defined as two or more peopleworking together toward one or more sharedgoal(s).Development in this context is the notion that anorganization may become more effective over time atachieving its goals.

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Organization development is a "contractual relationshipbetween a change agent and a sponsoring organizationentered into for the purpose of using applied behavioralscience and or other organizational change perspectives

in a systems context to improve organizational performance and the capacity of the organization toimprove itself ". Organization development is an ongoing,systematic process to implement effective change in anorganization. Organization development is known as botha field of applied behavioral science focused onunderstanding and managing organizational change andas a field of scientific study and inquiry. It is

interdisciplinary in nature and draws on sociology,psychology, and theories of motivation, learning, andpersonality.

Motivational Techniques:

Almost all employees want to dointeresting work, secure a good salary and

earn recognition for their contributions.But motivating employees takes morethan money and an occasional “thank-you.” It requires a strategy tailored toeach worker’s needs.

1. Ask what they want out of work:

Just knowing that an HR manager or boss is

interested in a worker's goals will make manyemployees feel better about their jobs. It can bedifficult to get a quick and accurate answer to thisquestion. However, some workers may say thatthey want to work on a prestigious project, forexample, only to discover once they have been

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assigned to the project that it isn’t what theyexpected. It may help to ask a more specificquestion. Have workers describe a previous projectthat they felt good about, then see what aspects of

that can be repeated.

2. Consider each employee’s age and life stage:

There are exceptions to every generalization, of course, but workers nearing the end of theircareers are often less focused on the next

promotion than those who are just starting to climbthe corporate ladder. Younger workers may also beless accustomed than older ones to waitingpatiently in a job they don’t find interesting.

3. Match motivators to the company or

department culture:Again, there are exceptions, but engineers arelikely to be motivated by working on cutting-edgeprojects. On the other hand, sales professionalstend to use money as a way to measure how wellthey’re doing.

4. Pinpoint each employee’s personality:

Some people love public praise; others aremortified by it and would much prefer a sincere, in-person “thank-you.” Make sure you take this into

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account if you are planning a ceremony to giveawards or other recognition.

5. Put money in its place:

How well does money motivate workers? Theanswer isn’t simple. An employee who demands araise might really be unhappy because his or hersuggestions are being ignored.

Money plays an important role in motivating the

employees.

6. Offer help with career goals:

When you ask workers what kind of work theyenjoy, also find out about what they’re hoping todo in the future. Giving workers opportunities to

build the skills and make the connections theyneed to get ahead in their careers will build loyaltyand motivation.

7. Help employees learn:

It’s very important for workers to keep learning

new skills on the job. With people changing jobsmore often than they used to and companies nolonger promising long-term employment, youngerworkers in particular realize that continuing tolearn is the way to stay employable.

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8. Recognize that motivation isn’t always theanswer:

If your motivation efforts aren’t working, it may notbe your fault. “Not everyone can be motivated forthat particular job”. If an employee would reallyrather be doing something else, it may be best toencourage him or her to pursue something new.

PERFORMANCE APPRAISAL:

A performance appraisal, employee appraisal,performance review, or (career) developmentdiscussion is a method by which the job performance of an employee is evaluated (generally in terms of quality,quantity, cost, and time) typically by the correspondingmanager or supervisor. A performance appraisal is a partof guiding and managing career development. It is theprocess of obtaining, analyzing, and recording

information about the relative worth of an employee tothe organization. Performance appraisal is an analysis of an employee's recent successes and failures, personalstrengths and weaknesses, and suitability for promotionor further training. It is also the judgment of anemployee's performance in a job based on considerationsother than productivity alone.

What is Bajaj focus/Expectation from employees?

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If you are an energetic, creative professional with aburning desire to perform, learn and grow Bajaj auto co.could well be right place to build your career. While wewill undoubtedly look for a strong academic record when

assessing your application, there are certain skills andqualities which are critical to performing to the highstandards we expecthere. We look atfollowing leadership

competenciesin the candidates.

METHODS:

A common approach to assessing performance is to use anumerical or scalar rating system whereby managers areasked to score an individual against a number of

objectives/attributes. In some companies, employeesreceive assessments from their manager, peers,subordinates, and customers, while also performing a self assessment. This is known as a 360-degree appraisal andforms good communication patterns.

The most popular methods used in the performanceappraisal process include the following:

• ORGANITATINAL assessment process.• Management assessment process.• 360-degree appraisal.• Behavioral observation scale.

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• Behaviorally anchored rating scales.

LEADERSHIP AND GROUP LEADERSHIP:

Leadership is stated as the "process of social influencein which one person can enlist the aid and support of others in the accomplishment of a common task."

Definitions more inclusive of followers have alsoemerged. Leadership is ultimately about creating a wayfor people to contribute to making somethingextraordinary happen.

Establish leadership of the team. An important aspect of managing the team is demonstrating Leadership of theteam. Demonstrate ability in problem-solving. Guide

team members that are from different functional areas.Coordinate the team to show leadership capabilities.

Bajaj Auto has been a turnaround story and is poised todo well under the helm of Rajiv Bajaj who is quiteambitious and aggressive in his approach and hassteered the company well. From a position where all the

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two wheelers of the company made a loss around fiveyears ago today Bajaj has got an operating profit marginof around 15% which is one of the highest in theautomobile industry. The company enjoys a market share

of about 30 % and this enables them to have cashreserves to the tune of Rs. 5000 cores.

All of this was made possible because of several reasons.One was the change in mindset of the workers. The newplant set up at Chakan has got around 800 employeeswhose average age is 24. This was a deliberate step to letgo of the baggage that the older generation at Bajaj had.

Another step, which was taken, was vendor developmentand rationalization. This means that the companysubstantially reduced the number of vendors it had. Thisis a modern management practice and the essence of it isthat the vendors should be partners in the process. Thisway the cost comes down because of reduced cycle timesand lead times and better management of inventory of

the parts that go into a product. More and more parts arealso outsourced which enables the company to focus onlyon the core areas of operation.

Since Bajaj accounts for a large part of the revenues of many of these vendors their service levels also improve,as they have to depend on the company for their survival.However the downside is that there is a lot of

dependence on these vendors and in case they face abad time it could mean that the business sufferssignificantly as compared to the before scenario.

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With a focus on research and development the companyhas been able to come up with new products that are hotsellers like the Pulsar. This focus has also enabled themto bring down the warranty costs, which currently stands

at Rs. 18 per vehicle. In a scenario where the volumes arequickly growing to the extent of 41% in fiscal 2004, thereduced cost of warranty isquite significant.

Teamwork:

Teamwork is work performed by a team. The quality of teamwork may be measured by analyzing theeffectiveness of the collaboration in the following ways:

1. Communication2. coordination3.balance of contributions4. mutual support

5.effort6. cohesion

Anyone who has ever worked in a corporate job canprobably call to mind countless seminars and meetings,all dealing with issues such as team work, team building,

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cooperative efforts, etc...Whatever the word of the weekmay have been, the point was very likely the same, beingthat teamwork is essential for the success of anybusiness, both short and long term. All too often though,

it seems that such a simple idea is shoved carelessly tothe side in the name of meeting that all important goal of making a quick dollar. And, if time has taught usanything, it should be that businesses which get greedyquickly often fail just as fast.

However, for a group to succeed, each member of theteam has to put forth their strengths, and, at the same

time, work to cover the weaknesses of the othermembers of the team. Productivity does not appear bymagic, and the best managers know how to get the bestwork out of their employees. In effect, there is really onlyone best way to do this; using the strengths of some tocover the weaknesses of others. Doing this will make fora team with no real weaknesses, a cohesive group, andan effective and productive group of workers.

REWARDS:

• Company of the year.

• Manufacturing excellence.

•

Trophy for Highest Exports.• Export Excellence.

• Gross Turnover – 59.34 billion.

• Profit of 9.60 billion in the year 2008-09.

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• Distribution Network covers 50 countries.• 2, 50,204 units exported in 2008-09.

• Dominant presence in Sri Lanka, Columbia,

Bangladesh, Mexico, Central America, Peru & Egypt.

• Largest exporter of 3-wheeler.• 27% growth in total exports over 2009-10.

Promotion:Retaining talent is one key to growing a successfulbusiness. To do so, you need to reward them for greatperformance. By giving your employees special rewards,you can:

1. Foster a positive, productiveworkplace.

2. Encourage loyalty and a sense of ownership in your business

3. Surprise employees withoutcreating a feeling of entitlement.

4. Keep your customers happy —because happier employees do

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better work.

Action Steps:

Have employees take stock

Employees care more about the success of theiremployer when they own part of the company. Stockoptions, which allow an employee to purchase a certain

number of shares at a certain price

Give them bonuses when your company does well

Bonuses come in many flavors: profit-sharing (typically divvied up as apercentage of each employee's salary),gain sharing (rewards for productivitygains), task bonuses (at the end of anassignment) or spot bonuses (givenwhen an employee deserves specialrecognition).

Send them on a trip

If employees deserve special recognition — for instance,as a reward for beating their sales quotas — consider atravel package.

Schedule playtime

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Employees are often motivated by competition orcontests that allow them to earn non-monetary rewards.

Sports-related rewards are popular.

Let employees choose

Instead of trying to select an appropriate reward for youremployees, you can instead let them do the choosing.

Conclusion:

The Human resource management includes the processesrequired to coordinate the human resources on a project.Such processes include those needed to plan, obtain,

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orient, assign and release staff over the life of the project,which includes:

Functions:

1. Development of Human resource plan

2. Acquiring staff

3. Measuring the Performance of staff

4. Release of staff at the end

Many academics have agreed that managing humanresources appropriately is one of the most crucialelements to organization’s success.Nowadays, the trend in project management is towardpeople management. Today, HRM has taken a strategicrole in business. They teach you at business schools thatpeople are the most important assets that you have.

Companies agree that people challenges are moredifficult to manage than any technical difficulties theyencounter.

Bibliography:

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Websites:

1. Bajajauto.com2. Wikepedia.com3. Google.com

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