MSIL EVOLUTION:

Maruti Udyoga Limited (MUL) was first incorporated in 1981 in the idea of making people's
car.It later had a joint venture with Suzuki Motor Corporation(SMC). As MUL was owned by Indian
government,SMC refused to share its technology. After1990's liberalisation act ,global companies
predicted the downfall off MUL suggesting that it could not handle the completion.Later in between
1998 to 2001 MUL launched five new products.MUL focused on three main priorities such as
customer satisfaction,profits,recruitment and selection.

MUL had a great revenue loss of 41.54 dollor million.The loss was due to new models,
investments,change of engines and so on. By 2000 MUL also created a vision for itself as, “To be the
leader in Indian automobile industry,creating customer delight and shareholders". In 2002,MSIL was
born a subsidiary of SMC. Later all cars were tagged with Suzuki. MSIL had tie up with banks. MSIL
sent its engineers to participate in projects with SMC engineers and their first collaboration was with
swift. MSIL started handling many new projects by competiting 17 strong competitors and lining up
with 11 new models.

STRATEGIC PLANNING INFLUENCE:

After the revenue loss of 2002 the company faced a great problem in its cost structure. Later
2000 MUL also created a vision for itself as, “To be the leader in Indian automobile industry,creating
customer delight and shareholders" .wealth a pride of India.They started making out three strategic
plans and different schemes such as wheels of India, teacher's scheme and panchayat scheme. The
were the first to launch “True value “which assures its customer a good value to cars.

HR IMPACT ON ORGANIZATIONAL CULTURE :

After the advent of Siddique's appointment, HR dept. Kept pace with organisation through HR
practices that brought necessary culture changes. After 2002,MSIL focused on human resources
whereas SMC wanted to make the organization dynamic.In 2003, MSIL downsized the people by
giving voluntary retirement. Several training initiatives were taken such as instilling pride in being
MSIL employee,self development, outbound training sessions were conducted to improve
capabilities and create sense of togetherness among employees. MSIL signed five year settlement
with employees union,where the union involved in decision making. After this the employees
experienced a visible change in work culture.

A group of people met the new employees at the gate so that they could remove new feel out of
pace. They also had meetings with divisional heads,orientation with HR and plant visits.They had a
meet with top management and a welcome cake was cut. After six months they had lunch with top
management. It brought out a personal touch between employees and management. HR facilitated
regular meetings with top management and supervisors, middle and junior management. The
COMMUNICATION from top to bottom divisions changed drastically, not only creating openness but
also great sense of involvement. Suggestions were invited from employees through suggestion
boxes.

TRANSITION FROM PRODUCTION TO BUSINESS AND PEOPLE AS FOCUS:

Before 2003,people were automatically promoted after five years irrespective of their
performance.This created an attitude among the employees because of the increment.After 2005
the employees were appraised based on their performance.After the VRS policies the organization
became leaner and had clear cut roles.The employees were allowed to give feedback on the areas of
IMPROVEMENT. There were provisions for lower and moderate employees to improvise their
standards.IN 2006-2007 a new three step promotion policy was made such as fast track,normal track
and extended track.The extended track promised not to reject the employees at any cost.For lower
level employees training were given.Job security,development support and patience were brought
ou or by HR dept. Even new skilled younger employees were given promotion based on their
work.The company also started sending appreciation mails,birthday wishes,movie tickets and dinner
coupons ,a family trip and so on were carried out focusing on employees benefit.Service award for
completing 25 years at MSIL,every employee's children who secured above 90% received prize,even
women's day was celebrated. HR dept carried out various ways indicating that MSIL is s a part of
employees family.

TEAM WORK AND EMPLOYEE ENGAGEMENT:

Cross functional collaborations lead to increase COMMUNICATION between employees across

FUNCTIONS.This increased the overall performance. MSIL had autocratic leadership where top
management refused interaction with employees.By 2004,HR proposed leadership training to
change their mindset.

Every director’s and divisional heads underwent training at Management Development Institute
whereas the department heads had training in Leadrship training institute.In 2004 MSIL focused on
training for entry level and experienced professionals.In 2006 the company the company sponsored
for the education of few employees. From 2007-2008 the company created awareness among senior
and middle management.MSIL also started career progression scheme for diploma engineers.Many
departments saw a dramatic change and there was a freedom in taking decisions. HR dept of MSIL
categorized people into technical and commercial employees and interviewed them.

Dealer new

MSIL realized the importance of dealer network and retention was the main issue in
organization.Skill development and performance affected both dealer and organization.MSIlL
initially supported the top management to understand the HR practices on people.It achieved the
dealerships through workshops.Once in 2 year HR dept.shared new developments with dealer
organization and improved dealership performance by hiring HR managers,implentation of
policies,training,feedback,retention and so on.MSIL saw its dealers as partners

Challenges:

There was a feeling of discomfort as placing a Japanese employee for charge of strategy.MSIL did
not pay a good salary package compared to Hyundai and Toyota.Its attrition rate was 5% below
other industry norms .This young generation had no qualms as six day working and mandatory
uniforms.

Their dealers were vulnerable to competitors and company has to go an extra mile.It needs a path
in creating CULTURE and risk taking.MSIL at beginning aimed at step by step IMPROVEMENT but
Japanese CULTURE did not encourage that.MSIL had to respond to world class competition by
innovating new products.