About Maruti

as Maruti Udyog Limited, is an automobile manufacturer in India.[8] It is a subsidiary of Japanese

automobile and motorcycle manufacturer Suzuki.[7] As of November 2012, it had a market share of
37% of the Indian passenger car markets.[9] Maruti Suzuki manufactures and sells a complete range
of cars from the entry level Maruti 800, Alto, to the hatchback Ritz, Celerio, Ciaz, A-Star, Swift,
Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose
vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara.[10]
The company's headquarters are at No 1, Nelson Mandela Road, New Delhi.[2] In February 2012, the
company sold its ten millionth vehicle in India.
They will us the 7 step approach to create a HR Scorecard for Maruti.
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7.

Define the business strategy

Outline company value chain
Outline a Strategy Map
Identify HR Deliverables
Align HR strategy to Business strategy
Design Strategy Measurement System
Execute Management by measurement

Business Strategy of Maruti

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Department should be in a position to align its objectives and goals with those of the organization.
To do this the HR staff must get to know the management team and their challenges, conduct audits
to determine if employees have the competencies and skills necessary to help the company achieve
its Mission, Vision, and Strategic Objectives.
With the passenger car sales declining over the past two months over spiralling fuel prices and high
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marketing strategy to increase its sales among the first time buyers, a company official said.
The company has started campaign for targeted customers. They are looking at a specific customer
base like orange in Nagpur, jute mill owners or mango groTheyrs in Bengal. They are also working to
increase our sales in rural areas.
The growth this fiscal year will be in single digit. In the beginning of the year, a 12-15 per cent
growth was predicted for the industry. So far, the passenger car industry has grown about four per
cent. They expect sales will pick up in the coming festive season, but still it will be in the single digit
However, the company will go ahead with its capacity expansion plan. The capacity expansion will go
on as it is part of our long term plans. The industry size is expected to be about 4.2 million by 2015.
They will have a total annual capacity of 1.7 million units by the time which will help up us to
maintain the present market share of 44 per cent.

Strategy Map and HR Deliverables

Designing the Scorecard

When business owners and managers formulate business plans and strategies, they often leave out
an important component of these plans. Human resources staff are often not consulted nor invited
to participate in the planning process. When marketing, sales, manufacturing or finance are asked to
implement their strategies and tactics for the coming year, they may find themselves short-handed,
or worse, with people with the wrong aptitudes. Aligning HR with business strategies makes sense
and helps ensure the company can realize goals.
n performance-driven organizations, performance metrics are often used to express the value and
success each department contributes. The efforts of human resources can't be expressed as a direct,
bottom-line number contributing to sales, although the value of effective HR practices may make
significant contributions toward a company's success. An HR scorecard measurement system allows
a business to tangibly monitor HR performance.
Assessing the Corporate Culture
Before designing a scorecard, the HR professional should understand top-level management goals
and strategies for the enterprise. A manufacturing business in an industry with much competition
may need low-cost labor to meet necessary margins, while a cutting-edge tech startup seeks
innovative programmers, regardless of cost. How a company utilizes its workforce plays a role in
how HR performance can be assessed. A particular business or industry may have its own priorities
for HR assessment. A factory, for example, may focus on safety initiatives, while a call center
watches turnover.
Operational or Outcome: The Scorecard Focus
A business that applies metrics to elements of production often works in measures of efficiency,
such as orders per hour or waste per 100 units. A simple implementation of metrics on a personnel
level would simply transfer these operational measures from department to worker. While a natural
extension of metrics practices, these have little value in assessing HR function. An HR scorecard is
often better expressed in terms of outcome, and this may require a long-term, broad-picture
approach. For example, if an HR objective is to grow a stable workforce with improved productivity,
orders per hour performance is still valid, but across an entire department, and over a defined
period of time. That information combines with turnover statistics for the same period to establish a
scorecard metric.
Compiling The Metrics
Referring to the strategic objectives of the company and matching these with outcome-based HR
goals provides the basis for the HR scorecard. SMART methodology provides an outline for each
scorecard item to be specific, measurable, achievable, relevant and time constrained. For example,
using the SMART acronym might develop a scorecard objective of "increased training" into "Health
and safety training hours increased to 10 hours or more per employee over the next two quarters."

Implementing the HR Scorecard

While implementation typically comes after the design of the HR scorecard, considering how the
scorecard is used in practice may help focus the design. The HR scorecard may represent change to
many and may be resisted simply for this fact. Whenever scorecard items can be supported with
existing data, potential resistance could be eliminated. Assigning champions, either to the entire
scorecard or to one or more of its items, will also improve chances for success.