PROJECT REPORT ON RECRUITMENT AND SELECTION AT MARUTI SUZUKI INDIA LIMITED

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

V. PRAVEENA Regd No: 10R21E0058

Under The Guidance of

Miss. Kusuma
[Asst. Professor]

MLR Institute of Technology

[Affiliated to Jawaharlal Nehru University, Hyderabad] Dundigal, Quthubullapur, Hyderabad-43

2010-2011

CERTIFICATE
This is to certify that V. Praveena bearing Reg. No. 10R21E0058, a student of MLR Institute of Technology, Hyderabad pursuing her MBA has worked under my guidance and supervision on her work entitled Project on Recruitment and Selection at Maruti Suzuki India Ltd.. To the best of my knowledge this an original piece of work.

Prof. Dr. K. UMA H.O.D, MBA DEPARTMENT

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DECLARATION
I V. Praveena, do here by declare that the project report entitled Project on Recruitment and Selection at Maruti Suzuki India Ltd. being submitted to MLR Institute of Technology, JNTU, Hyderabad is my own piece of work and it has not been submitted to any other institute or published at any time before.

V. Praveena Regd No: 10R21E0058 MLR Institute of Technology

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ACKNOWLEDGEMENT
I would like to express my gratitude and indebtedness to Prof. Dr. K. Uma Head Of the Department, Miss. Kusuma, Asst Professor, Dept of Management, MLR institute of technology, Affiliated to JNTU UNIVERSITY Hyderabad, for their guidance, valuable suggestions and constant encouragement throughout my work. I am thankful to all my faculty members, Head of the department for providing all the necessary facilities and encouragement for the present work.

V. Praveena Regd No: 10R21E0058 MLR Institute of Technology

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Table of Contents

1 Introduction............................................................................6
1.1 Objectives of the study.........................................................................................6 1.2 Need of the study..................................................................................................6 1.3 Scope of the study................................................................................................7 1.4 Limitations ..........................................................................................................7

2 Research Methodology...........................................................8
2.1 Definition.............................................................................................................8 2.2 Research approach................................................................................................8 2.3 Primary data.........................................................................................................8 2.4 Secondary data.....................................................................................................9 2.5 Tools of analysis...................................................................................................9

3 Company Profile ..................................................................10

3.1 Introduction to the Company..............................................................................10 3.2 Vision and Core Values......................................................................................11 3.3 Board of Directors..............................................................................................12 3.4 Products..............................................................................................................13 3.4.1 Maruti Suzuki Swift....................................................................................13 3.4.2 Maruti Suzuki SX4......................................................................................14 3.4.3 Maruti 800...................................................................................................15 3.4.4 Maruti Alto..................................................................................................15 3.4.5 Maruti Zen...................................................................................................16 3.4.6 Maruti Omni................................................................................................17 3.4.7 Maruti Ritz..................................................................................................18 3.4.8 Maruti Suzuki Wagon R..............................................................................19 3.4.9 Maruti Suzuki A Star...................................................................................20 3.4.10 Maruti Suzuki Kizashi ..............................................................................21 3.5 Competitors........................................................................................................21 3.5.1 Tata Motors Ltd...........................................................................................21 3.5.2 Hyundai Motor India Pvt. Ltd.....................................................................22 3.5.3 Honda Siel Cars India Ltd...........................................................................22 3.5.4 Ford India Ltd..............................................................................................22 3.5.5 Fiat India Pvt. Ltd .......................................................................................23 3.5.6 General Motors India Pvt. Ltd ....................................................................23 3.6 Manufacturing Facilities....................................................................................23 3.7 Contact Information...........................................................................................24

4 Recruitment and Selection...................................................26

4.1.1 Purpose........................................................................................................26 4.1.2 Sources of Recruitment...............................................................................26 4.1.3 HR Recruitment Process at MSIL...............................................................26

5 Performance appraisal.........................................................30 6 Training and Development..................................................37 7 Findings.................................................................................39 BIBILIOGRAPHY.................................................................40

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1 Introduction
Mini project on Maruti Suzuki India Ltd. aims at studying the policies and procedures employed in Recuritment & Selection, Performance Analysis and Training and Development.

1.1 Objectives of the study

Automotive industry being under redefinition; interest has been taken to study more about the Automotive industry, in particular about the Maruti Suzuki India Ltd. Study of Recruitment and Selection procedures. Study of Performance appraisal. Study of Training and Development methods.

1.2 Need of the study

Maruti Suzuki India Ltd. is one of the very successful companies in Indian automotive industry and holds major market share of Indian automotive industry. It is successful in maintaining its position and grows at a phenomenal rate and is successful in gaining the consumer confidence and satisfaction and providing good quality of services to its customers. It is important to understand the methodologies and strategies employed by the company and need to study the challenges ahead in extremely competitive market with more and more domestic and international players pitching in and suggest the ways and means to maintain its position and provide job satisfaction for the employees there by attract the new talent and retain the existing talent in the company.

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1.3 Scope of the study

The Scope of the study is limited to the analysis of the procedures and methods employed in the company for recruitment and selection and conducting performance appraisal and the process of training and development based on the information published by the company sources and other independent sources of analysis and views of the industry experts. The result of this study cannot be used as the basis for arriving at any concrete conclusion about the company and guidance for investments to be made or making choice of working.

1.4 Limitations
The information gathered is constrained only to the sources of companys website address, reference books and updated information given by news daily. Due interest has been taken in preparing the report some errors might have crept in, corrective action will be taken in future if so found. As a part of business confidentiality policies and procedures can be easily window dressed to present a better picture of its employee friendly nature to outsiders.

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2 Research Methodology
2.1 Definition
Designing a research plan calls for decisions on the data sources, research approach and research instruments, sampling plan and contact methods. The following methodology is used for this project purpose. The data is obtained for the survey in the form of primary and secondary data. The data is collected by interviewing the different types of consumers with the aid of the formal research instruments, going through the consumer forums, research articles, product reviews, consumer feedbacks, market data etc on internet, literature and television shows.

2.2 Research approach

There are two types of research instruments in collecting the data. Primary data Secondary data Primary data can be collected in four ways-observation, focus groups, surveys and experiments. The approach to be used for competitor analysis consumer mind set analysis is that of survey. Secondary data can be collected from the company website, finance portals, research articles, consumer forums, product reviews, research thesis and expert views on web and following news, reviews and expert views in electronic and print media.

2.3 Primary data

Primary data is collected with specific set of objectives to assess the current status of any variable studied. It always reveals the cross section picture of any thing studied. This is to study the effect or impact of any policy. The methods of collecting Primary data : Observation method Interview method Questionnaires. Observation method: This method involves recordings of information applying visual understanding backed by alert sense organs. Interview method: Interview method involves direct and indirect meeting of respondent by the researcher. The researcher determines the questions to be raised at the time of interview and then elicit the response for them. Questionnaire: Page 8 of 40

A questionnaire is a sheet of papers containing questions relating to certain specific aspect, regarding which the researcher collects the data.

2.4 Secondary data

Secondary data can be collected from the company website, finance portals, research articles, consumer forums, product reviews, research thesis and expert views on web and following news, reviews and expert views in electronic and print media.

2.5 Tools of analysis

HYPOTHESIS: Hypothesis is a statement about the parameter of one or more populations. EX:- 1) The majority of men in the city are smokers. 2) The teaching methods in both the schools are effective. Types of hypothesis: 1. Null hypothesis. Null hypothesis is the hypothesis which is tested for possible rejection under the assumption that it is true. Ho==o 2. Alternative hypothesis. Any hypothesis which is complementary to the null hypothesis is called an alternative hypothesis and is denoted by H1. Alternative hypothesis may be, 1) H1:o(i.e,>o or <o) is known as two tailed alternative. 2) H1=>o, is known as right tailed alternative. 3) H1=<o, known as left tailed alternative.

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3 Company Profile
3.1 Introduction to the Company
Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car market for over two and a half decades. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.2 million (1,200,000) vehicles annually. The company plans to expand its manufacturing capacity to 1.75 million by 2013. The company offers a wide range of cars across different segments. It offers 15 brands and over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, offroader Gypsy, SUV Grand Vitara, sedans SX4, Swift DZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell One Million cars in a year. Maruti Suzuki has employee strength over 8,500 (as at end March 2011). In 2010-11, the company sold over 1.27 Mn vehicles including 1,38,266units of exports. With this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent of the Indian passenger car market. Maruti Suzuki's revenue has grown consistently over the years. The company is listed on Bombay Stock Exchange and National Stock Exchange.
Year 2005-06 2007-08 2009-10 Net Sales 1,20,034 1,78,603 3,01,198 Year 2006-07 2008-09 2010-11 Net Sales (Rs in Million) 1,45,922 2,03,583 3,61,282

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3.2 Vision and Core Values

Customer Obsession Fast, Flexible and First Mover Innovation and Creativity Networking and Partnership Openness and Learning

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3.3 Board of Directors

Mr. R. C. Bhargava Mr. Shinzo Nakanishi Mr. Manvinder Singh Banga

Chairman Mr. Amal Ganguli

MD and CEO Mr. D. S. Brar

Director Mr. Keiichi Asai

Director Mr. Osamu Suzuki

Director Mr. Shuji Oishi

Director & MEO(Engineering) Ms. Pallavi Shroff

Director Mr. Kenichi Ayukawa

Director & MEO (Marketing & Sales) Mr. Tsuneo Ohashi

Director

Director

Director and Managing Executive Officer (Production)

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3.4 Products
3.4.1 Maruti Suzuki Swift In India, Suzuki has launched Swift as a joint venture with Maruti and the car is known as Maruti Suzuki Swift. In the Indian auto market Swift is available with seven variants four with petrol and three with diesel engine option. The petrol version of Maruti Swift is powered by 1.2-litre K-series engine (with a 1.3-litre petrol engine available until 2008). Maruti Swift is endowed with five-speed manual transmission. However, the diesel version of Maruti Swift is packed with 1.3-litre, DDiS engine with a displacement of 1,248 cc. The 1.3-litre diesel engine is fitted with a turbocharger and intercooler combination and is endowed with a five-step multi injection common rail system.

1,197cc 16V DOHC petrol engine, rated at 63 kW (85 bhp) and 113 Newton metres (83 lbft). 1,248cc 16V DOHC diesel engine, rated at 56 kW (75 bhp) and 190 Newton metres (140 lbft).

Swift Dzire Suzuki introduced a sedan based version of the Swift called the "Maruti Swift Dzire" in the Indian market. Launched on March 26, 2008, Swift DZire replaces Maruti Suzukis popular entry level sedan, Maruti Suzuki Esteem, production of which was discontinued in late 2007. Maruti Suzuki has introduced Swift DZire only in the Indian market. The Dzire has exactly the same wheelbase as the hatchback version and has an increased overall length due to the addition of the boot. It shares the same 1.2-liter K-series gasoline and 1.3-liter DDIS diesel engines fitted to the hatchback variant. Swift DZire is a result of an indigenous project started in 2005 to design a three-box notchback version of the Swift hatchback. Some changes have been made Page 13 of 40

to the cars overall styling to seamlessly integrate the boot. The wheelbase remains the same. The car weighs about 3035 kilograms (6677 lb) more than the hatchback. Few modifications in the rear suspension have been done to cope with the additional weight of the boot and improve the ride quality for the rear passengers. Adjustments in the rear seat inclination have been made to improve the rear seat comfort and legroom.

3.4.2 Maruti Suzuki SX4 Maruti Suzuki launched sedan with the 1.6-litre gasoline engine without VVT in 2007. The SX4 was updated to the 1.6-litre engine with VVT. Minor cosmetic differences can be seen between the Indian version and others sold elsewhere. Maruti has since launched the diesel variant of the SX4.

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3.4.3 Maruti 800 Maruti 800 is a city car manufactured by Maruti Suzuki in India. It is a rebadged version of an old model of the Suzuki Alto. Over 2.5 million Maruti 800's have been sold since its launch in 1983The same car is sold in Pakistan as the Suzuki Mehran with a much older 1980s era Suzuki SS80 carburettor based engine.

3.4.4 Maruti Alto The Maruti Alto is the Indian-built version of the fifth generation Alto, manufactured by Maruti Suzuki. It was launched in the local Indian market on September 27, 2000 although the Alto nameplate was very successfully being used to Page 15 of 40

export the Maruti Zen to Europe from India since around 1994 having captured over 40% market share in Belgium and 33% in Netherlands by 1998. It is the best-selling hatchback in India. Since 2006, It is India's largest selling car and crossed the 1 million production figure in February 2008 becoming the 3rd Maruti model to cross the million mark in India after Maruti 800 and Maruti Omni and 4th overall joining Hyundai Santro. Besides being exported to Europe from 19942004, it has also been exported to several other countries.

3.4.5 Maruti Zen The Maruti Zen is a 5-door hatchback produced and sold in India by Indian automaker Maruti Suzuki. It has acquired significant popularity in India since the nameplate was first introduced in 1993. The word "ZEN" is an acronym standing for Zero Engine Noise. It also stands for the Japanese word "Zen" which derives from the Sanskrit word "Dhyana" and means "To figure out something by meditation or by a sudden flash of enlightenment." Also sold as Suzuki Cervo Mode, in many parts of the world a blockbuster in its segment, the first generation Maruti Zen was introduced in 1993 [MH410]. In Europe, the car sold as the Suzuki Alto. In 1997 Body Colour Bumpers. In 2000 its cost (of LX model) was around Rs 3,80,000. The best part of the Zen is it remained in trend for over a very long period without any changes in Exterior Design or looks. It underwent a facelift in 2003. The production of this model ended in March 2006 Zen had a diesel variant which used the Peugeot's TUD5 (PSA TU engine) engine. The Zen quickly became a hit with the Indian Racing Scene, highly modified versions of the 993 cc G10B engine topping 100+ Bhp. In June 2003, a three door sports version of the Zen in VXi segment was launched, prices at 3.9 Lakh (exshowroom, New Delhi); there were two models released which differed only in colours 1. Zen Carbon (black) 2. Zen Steel (silver).

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 Zen Estilo Zen Estilo is roomier than the previous model Zen and sports a 1.0L, 998cc, KB Series petrol engine. Zen Estilo is longer and offers more boot space and superior air conditioning. It delivers 68 bhp and its low-end torque makes it ideal for Indian city conditions. Maruti Zen Estilo has a 998cc, three-cylinder engine and five-speed manual gearbox combo. It gives a peak power of 68 bhp at 6,200 rpm and maximum torque of 90 Nm at 3,500 rpm. The company has just added one more variant to the Estilo family that is Maruti Zen Estilo LXI Green (CNG); this variant comes fitted with added CNG kit that is loaded at the company's factory: these kits are regarded as more reliable, responsive and safe.

3.4.6 Maruti Omni The Maruti Omni is a microvan manufactured by Indian automaker Maruti Suzuki. The first version of Maruti Omni had 796 cc engine, same as the Maruti 800 city car. This was the second vehicle to be launched by Maruti, one year after the 800, in 1984. Later version of the Omni includes the:

Omni (E), released in 1996, 796 cc engine, 8 seater capacity vehicle Omni XL - 1999, same engine, modified with a higher roof. Omni Cargo LPG - 2004, created to answer the growing popularity of this car being used as an inter-city cargo vehicle. Omni LPG - 2003, same 796 cc engine, added with a factory fitted LPG Kit, authorised by the Indian RTOs (Regional Transport Offices). This makes it the most economic 4 wheeler in India, as far as the driving costs are concerned. Omni Ambulance - A Modified E version into an ambulance vehicle. This is the most common type of ambulances found in Indian cities. Page 17 of 40

3.4.7 Maruti Ritz The Omni could be divided into two categories: the family version and the cargo version. The newer family version has two extra seats directly behind the front seating and facing away towards the rear of the van making it an eight seater. (Older versions was modified by individual owners to add additional capacity this way). The cargo version is completely devoid of back seats. Both versions have sliding back doors and hatchbacks. The Omni is also unique in a way that it uses a front mid engine rear wheel drive layout, as it helps in maximizing cabin and cargo space and providing maximum traction. In India Maruti Ritz is available with nine variants, five with petrol and rest four with diesel engine options. The petrol variants of Maruti Ritz are powered by the companys popular 1.2L, 1197cc, K12M KB series petrol engine. This engine is getting much popularity in the Indian market because of its excellent performance and fuel efficiency. The light weight all aluminium K12M engine delivers 85 PS of maximum power at 6000rpm with 113Nm of maximum torque 4000rpm. The mileage it delivers in city is around 14.5kmpl in city and 18kmpl on highway. The diesel variants of Maruti Ritz are powered by the Fiats 1.3L Multijet diesel engine. The 1.3L, 1248cc, DDiS diesel engine which is well known for its excellent fuel efficiency. The power it delivers is lower than the petrol version but is sufficient for any hatchback car. This engine delivers 75 PS of maximum power at 4000rpm with 190 Nm of maximum torque at 2000rpm. The mileage it delivers is 17.7 kmpl in city while on highway it gives 21kmpl.

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3.4.8 Maruti Suzuki Wagon R The Maruti Suzuki Wagon R is a made-for-India version of Suzuki Wagon R. After a 2010 facelift, the car is built on a newer platform, and claims more interior space, and new features such as an under-seat tray below the front passenger seat (top-end only). Its looks were also revamped, shedding the boxy look at the back. It is now less van-like, becoming simply another affordable hatchback, albeit with somewhat taller styling. It is one of the best selling models of Maruti Suzuki in India and continues to be the second best seller of the company after Alto every month. Originally all Indian Wagon Rs received Suzuki's 1.1 L F10D petrol engine producing 64 bhp (48 kW) at 6,200 rpm and 84 Nm (62 ftlbf) of torque at 3,500 rpm. The newly launched Wagon Rs are powered by the company's well known K series engine. This K10B petrol engine benefits from a 5 speed manual transmission gearbox. The aluminium K10B engine of Maruti is very light and produces a power of 68 PS (50 kW; 67 hp) at 6,200 rpm and a torque of 90 Nm (66 lbft) at 3,200 rpm. Also, a new LPG version called DUO has been introduced lately for the F10D engine variants, which runs either on petrol and LPG.

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3.4.9 Maruti Suzuki A Star Maruti's A Star has been designed to replace the Alto in the European markets and give competition to Hyundai's i10 that was launched in 2007. The A-Star is a car that is made in India to meet European standards. In addition, the eco-friendly characteristics of the car make the car even more desirable. It is designed to meet the 'end of life vehicle' (ELV) specifications according to which the cars components are up to 85% recyclable. This global car is also presented with the most dynamic Penta Drive, a zenith of five world class features. Artistically crafted with detail, precision, and wild imagination, Maruti Suzuki A-star delivers impressive aesthetics.

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3.4.10 Maruti Suzuki Kizashi Maruti Kizashi is a sports sedan which is powered by a 2.4 litre DOHC JSeries engine. The D-segment car's power train is capable of producing peak power of 178 PS at 6,500rpm. The maximum torque from the engine is 230Nm at 4,000rpm in both type of transmission. Maruti Kizashi is available in Japan and the US standard with Front Wheel Drive and optional All Wheel Drive. The optional i-AWD system includes a driver-activated Front Wheel Drive mode in view to save petrol. It is equipped with 17 inch alloy wheel. The steering wheel has three spokes and electronically powered. The suspension system used is Macpherson strut and coil springs front and rear one would be multi-link type. Whereas all the wheels have disc brakes. Front brake is vented disc and rear solid disc.

3.5 Competitors
Competitors of Maruti Suzuki include the following companies 3.5.1 Tata Motors Ltd. Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive Company), was formed in 1954. It is the only fully integrated automobile manufacturer that now stands as India's largest and the worlds 5th largest passenger automobile and commercial vehicle manufacturing company with a product range designed to meet national and international transportation needs. Tata Motors has a wide portfolio ranging from a Tata Mercedez Benz truck to diversifying into passenger cars like Tata Sierra, Tata Estate, Tata Indigo and Indica, concept vehicles like Aria Roadster and Tata Elegante, commercial vehicles like Tata heavy trucks and military vehicles. Tata Motors was first listed on the NYSE in 2004. It created wealth of Rs. 320bn during 2001-2006 and stood among top 10 wealth creators in India. It has its manufacturing bases in Jamshedpur, Lucknow and Pune. Page 21 of 40

Tata Motors has recently had a couple of important mergers and acquisitions like with JLR in UK, Daewoo in South Korea, Hispanso and a JV with Fiat. 3.5.2 Hyundai Motor India Pvt. Ltd South Korea's leading carmaker, Hyundai Motor produces compact and luxury cars, SUVs, and minivans, as well as trucks, buses, and other commercial vehicles. The company re-established itself as South Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors (since reduced to about 34%). Selling cars in the US since 1986, Hyundai started selling its heavy trucks stateside in 1998. Hyundai's models for the North American market include the Accent and Sonata; models sold elsewhere include the GRD and Equus. Through its Hyundai WIA subsidiary, it also manufactures machine tools for metalworking applications, such as horizontal machining, turning, and vertical machining. 3.5.3 Honda Siel Cars India Ltd Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company, with a commitment to providing Hondas latest passenger car models and technologies, to the Indian customers. The total investment made by the company in India till date is Rs 1620 crores in Greater Noida plant and Rs 784 crores in Tapukara plant.. The companys product range includes Honda Jazz, Honda City, Honda Civic and Honda Accord which are produced at the Greater Noida facility with an indigenization level of 77%, 76%, 74% and 28% respectively. The CR-V is imported from Japan as Completely Built Units. Hondas models are strongly associated with advanced design and technology, apart from its established qualities of durability, reliability and fuel-efficiency. 3.5.4 Ford India Ltd. Ford India Ltd is one of the finest automobile manufacturing companies in India. Ford Motors is originally an American company that excels in manufacturing and selling automobiles all across the world. It was founded by Henry Ford in 1903. Currently the eight largest car manufacturer in India Ford entered India in1988 with its much acclaimed Ford Escort. In the year 1926, Ford India was established, but the operations were discontinued in 1954. It was in 1995, that Ford Motor Company received government approval to establish Mahindra Ford India, Limited (MIFL). Mahindra Ford India, Limited was a 50:50 joint venture between Mahindra and Mahindra Limited (M & M) and Ford Motor Company. In November 1998 Ford received approval to increase its stake in the joint venture to 92.18%. The Company was re-christened as Ford India Limited. From the year 2001 Ford started coming up with a host models that included the Ford Ikon, Fusion, Fiesta, Mondeo and Endeavour.

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3.5.5 Fiat India Pvt. Ltd Fiat India Pvt. Ltd. is owned by Fiat Auto SpA along with Fiat India Automobiles Pvt. Ltd. and Premier Automobiles Ltd. Fiat auto SpA and Fiat India Pvt. Ltd. together hold 99.83% of the stake. Giovanni Agnelli founded Fiat SpA in 1899. In India, the company was established in 1905 when Bombay Motor Cars Agency was appointed as its sales agent. Fiat India Pvt. Ltd. manufacturers cars at Kurla, Mumbai and Rajangaon, Pune Maharashtra. 3.5.6 General Motors India Pvt. Ltd GMIPL was created as a joint venture in 1994. Hindustan Motors shared equal percentage of ownership along with General Motors, to manufacture and sell Opel branded automobiles. Till 2003, GMIPL continued manufacturing Opel cars at the Halol facility in Gujarat and then it switched to producing Chevrolet cars. General Motors in 2009, General Motors declared a new 50-50 partnership with Shanghai Automotive Industry Corporation of China, the partner of GM's main venture in China for carrying out its operations in India.

3.6 Manufacturing Facilities

Gurgaon Facility Maruti Suzuki has two state-of-the-art manufacturing facilities in India. The first facility is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in North India. Maruti Suzuki's facility in Gurgaon houses three fully integrated plants. Together the three plant have an installed capacity of around 700,000 units. K- series Plant The Gurgaon facilities also houses the 'K' Engine Plant. Commissioned in 2008, the K-series engine plant has an installed capacity of 500,000 units. K-series engines are available in 1 litre and 1.2 litre capacities. The highly fuel efficient, technologically advanced K series engines have been very well appreciated by our customers for their performance. Several Maruti Suzuki cars such as the A-star, Estilo, Swift, Swift Dzire, Ritz and WagonR sport the K-series engines. Company has announced an investment of around Rs. 1250 crores to expand engine capacity by 250,000 units by 2010. Page 23 of 40

Manesar Facility The state of the art Manesar facility was inaugurated in February 2007. At present the Manesar plant rolls out World Strategic Models Swift, A-star, SX4 and swift DZire. There is a high degree of automation and robotic control in the press shop, weld shop and paint shop to help manufacture with acute precision, high quality and speed. The Manesar plant is designed to be flexible: diverse car models can be made here conveniently Owing to automatic tool changers, centralized weld control system and numerical control machines that ensure high Quality. The plant at Manesar is the company's fourth car assembly plant and has a capacity of 300,000 cars per year. Company has announced an investment of Rs.1700 crores to expand its capacity by 250,000 units. The new facility is expected to be ready by 2011-12. Suzuki Powertrain Suzuki Powertrain India Limited is a joint venture of Maruti Suzuki with Suzuki Motor Corporation, Japan.at Manesar. It manufactures world class diesel engines and transmissions for cars. SMC holds 70 per cent equity in SPIL the rest is held by Maruti Suzuki. This diesel engine plant has a capacity to manufacture 300,000 diesel engines a year.

3.7 Contact Information

Head Office Maruti Suzuki India Limited Nelson Mandela Road, Vasant Kunj, New Delhi-110070 Board no.46781000 Fax : 46150275 and 46150276 Plants: Gurgaon Plant Maruti Suzuki India Ltd. Gurgaon Plant Old Palam Gurgaon Road Gurgaon - 122015 Tel: (0124) 2346721

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Regional Offices: Hyderabad Mahavir Chambers, Door No. 3-6-363 & 3-6-1/1 Chamber Bearing No. 101 & 102, 1st Floor, Liberty Square Stanza, Himayatnagar, Hyderabad Tel: (040) 66729999 Fax: (040) 66250102 Mumbai 602, Madhava Building, Bandra Kurla Complex Bandra (East), Mumbai - 400051 Tel: 26590478 Chennai 7th Floor, Capital Towers, 180, Kodambakkam High Road Nungambakkam, Chennai - 600 034 Tel: (044) 28233051-3 Kolkatta L & T Chamber, 4th floor, 16th Camac Street Kolkatta - 700 017 Tel: (033) 2283-5252, 53, 54, 62

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4 Recruitment and Selection

4.1.1 Purpose Purpose and importance of Recruitment and Selection is as follows Attract and encourage more and more candidates to apply in the organization. Create a talent pool of candidates to enable the selection of best candidates for the organization. Determine present and future requirements of the organization in conjunction with its personnel planning and jobs analysis activities. Recruitment is the process which links the employers with the employees. Increase the pool of job candidates at minimum cost. Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants. Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time. Begin identifying and preparing potential job applicants who will be appropriate candidates. Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants.

4.1.2 Sources of Recruitment Campus Recruitment Selected empanelled campuses

Lateral Recruitment Consultants Job sites Employee referrals

4.1.3 HR Recruitment Process at MSIL The HR recruitment process can be divided into three stages: 1. 2. 3. Manpower Budget Recruitment Selection

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Figure 1 Flow chart for Man Power Budget

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Start

Vacancy Creation and approval by Functional Head + Manpower requirement as per plan

Position profile/job description format to be filled by concerned department head

Search for the candidate through job sites/ consultants/ references/ internal database depending on type and no of vacancies

Stop
Figure 2 Flow chart for Recruitment

Start

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Stop
Figure 3 Flow chart for Selection

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5 Performance appraisal
Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development. Performance appraisals are regular reviews of employee performance within organizations Generally, the aims of a performance appraisal are to: 1) Give feedback on performance to employees. 2) Identify employee training needs. 3) Document criteria used to allocate organizational rewards. 4) Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc. 5) Provide the opportunity for organizational diagnosis and development. 6) Facilitate communication between employee and administrator. 7) Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements. A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager, peers, subordinates and customers while also performing a self assessment. This is known as 360 appraisal. The most popular methods that are being used as performance appraisal process are: 1) Management by objectives 2) 360 degree appraisal 3) Behavioral Observation Scale 4) Behaviorally Anchored Rating Scale Trait based systems, which rely on factors such as integrity and conscientiousness, are also commonly used by businesses. The scientific literature on the subject provides evidence that assessing employees on factors such as these should be avoided. The reasons for this are two-fold: 1) Because trait based systems are by definition based on personality traits, they make it difficult for a manager to provide feedback that can cause positive change in employee performance

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2) Trait based systems, because they are vague, are more easily influenced by office politics, causing them to be less reliable as a source of information on an employee's true performance. Effective performance appraisal A tricky issue facing most organizations is the carrying out of effective and fair performance appraisal. Far too often companies find that many employees are left grumbling about unfairness and bias. While first accepting that there is probably no system which is close to perfect, let us look at some key criteria that an appraisal system must satisfy. At a macro-level, the aim of the performance appraisal from the companys point of view cannot be to just determine increments or promotions. Yes, that is how it affects the individuals, but it cannot be the organizations aim. The organizations aim has to be to put in place a system that actually improves performance. Let us now look at the specific criteria for the system, The first step must be to understand clearly what is expected from each employee / position in the organization. And this must be done well before appraisal time, even before the appraisal year starts, in fact. For instance, if the job of the Corporate Communications manager is to ensure that all mass communication about the brands and about the company is effective and in cohesion, then these should be laid out as her primary performance appraisal criteria. Once the criteria are clearly laid out, they should be communicated to her in unambiguous fashion so that she knows what to work towards and how she is going to be evaluated. It is useful if these goals can be quantified. For example, one goal for a brand manager could be that his brand must have at least X per cent awareness in the market Making the goals quantitative in nature makes evaluation easier and less subjective; and therefore less susceptible to suspicions of unfairness. However, it is not a good idea to get caught up in making all goals quantitative. It is a fact of life that not all things can be measured or quantified; for instance, courtesy. If a front desks performance is to be evaluated on the level of courtesy shown to visitors, then this cannot be quantified very easily but certain pointers can be got from the number of complaints about discourtesy and general observations about the persons deportment, among others. Such non-quantifiable measures will involve a certain amount of subjectivity. Subjectivity need not automatically mean bias. There are steps that ensure that subjectivity does not degenerate to bias in the performance appraisal context One such step is periodicity. It is useful if some form of appraisal can be done every three months. This would tell the person whether he / she is going in the right direction, and what extra efforts / course correction are required to improve the performance. Another crucial requirement is transparency. Too often, people are told something like your performance has been good, but I wouldnt say excellent and that they need to try harder. Such feedback is little better than useless as it offers no direction whatsoever to the individual. The individual needs to know what scores he / she is being given and why. One of the main reasons why transparency is a casualty in most Page 31 of 40

appraisals is that most managers are not comfortable giving negative feedback. Maybe it is a cultural issue, but pointing out problems or giving negative feedback in a one-on-one face-to-face setting and in a calm matter-of-fact manner is not something most managers are comfortable doing. For that matter, most individuals are not comfortable receiving this either. This can only be tackled through extensive counseling and this too needs to start well before appraisal time. Employees also need to be counseled that the amount of increment given is dependent on the appraisal score, but is equally dependent on the companys financial performance and outlook. This again has to be handled with a certain degree of tact. In many companies, such decisions are veiled in secrecy and there is talk of normalization which no one really understands. Transparency is again crucial to dispel lingering doubts of bias. Effective performance appraisal clearly needs a lot more than the few points outlined here, but attention given to these points will go a long way indeed.

Maruti adopts `360 degree' appraisal system

Employee to be evaluated not just by superiors, but also by peers, subordinates

It would seem that there is no corporate human resources policy that has not had its share of controversies for being biased. With an increasing number of qualitative factors that affect employees at the workplace, the performance appraisal process to make it as fair as possible has been the dream of every HR manager. And now qualitative factors are not just at play in the services sector, but also in manufacturing. With cubicles giving way to open offices, the top-down approach to employee performance appraisal is also on its way out. One company that has set itself on course to further demonstrating and opening up its employee evaluation process is car market leader Maruti Udyog.

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The company has introduced a unique 360-degree feedback system, starting with its senior leadership. The new system has been co-developed with Ernst & Young and has been put in place recently. Under the 360-degree feedback system, the employee is rated not just by his superiors, but also by his peers and subordinates. "We are starting the 360-degree feedback process with employees in the top management such as chief general managers and general managers, whose performance will now be assessed based on feedback from their peers and junior management employees within the same department. Till last year, their performance was being appraised only by the Directors and the Managing Director," says Maruti's Chief General Manager (HR), Mr S.Y. Siddiqui. Ernst & Young, in consultation with Maruti, has listed a set of leadership competencies that are expected in a general manager. Based on that, it has prepared a questionnaire to which peers and subordinates can respond online. Although acknowledged as an effective tool for leadership development in the West, Indian companies have been shy of introducing such a feedback system for fear of disturbing traditional hierarchical structures. HR consultants feel that the critical issues in implementing such a system include assuring respondents that their feedback will remain confidential and convincing the person receiving the feedback that this is a development tool and not an appraisal tool. Maruti has handled this by getting E&Y and other consultants to make detailed presentations to the senior management personnel before the process got under way. The company has a committee of general managers, called Human Resource Inter Divisional Committee (HRIDC), which is consulted on all major HR issues. The initiative has been unveiled with an e-mail by Maruti's Managing Director, Mr Jagdish Khattar, asking people to support the online questionnaire process. The 360degree feedback system will also include a self-appraisal by the general manager. At the end of the process, he can compare his self-appraisal with the assessment of his subordinates and peers. One of the benefits that Maruti is hoping to get out of the 360-degree feedback process is the sense of empowerment and importance felt by subordinates, when they are asked to offer their feedback about their superiors. Maruti currently has over 4,000 employees on its rolls.

Establishment of Maruti Udyog Limited

Incorporated on February 24, 1981. MOU signed on April 4, 1982. License and JV agreement signed on Oct 2, 1982. Plants located at Gurgaon, Haryana. Page 33 of 40

 Head office located at New Delhi. Ownership - GOI 49.74%, SMC 50%,

VISION
The leader in the Indian Automobile Industry, creating customer delight and shareholders wealth; A pride of India.

HR VISION
Lead and Facilitate continuous change towards organisational excellence ; create a learning and vibrant organisation with high sense of pride amongst its members

APPRAISAL & REWARD

New Appraisal System based on KRAs &Targets Review of Targets at regular Intervals People Development an important KRA

REWARD
Promotions based on Performance Productivity & Profit-linked Incentive Schemes Training including Long-term SMC Japan Trg. Highest paid workforce in the Industry, if not the Country

CAREER DESIGN
Performance & Potential based Appraisals Fast Track Option for High-performers Promotions after Managers Vacancy based Interviews for promotions above Managers Selection of Supervisors: Performance / Attendance / Discipline record Written Test & Interview Job Rotation - including Inter-functional

RETENTION & EMPLOYEE WELFARE

Employee Welfare - Residential Colonies for Employees Chakkarpur & Bhondsi - Hospitalisation Reimbursement on actuals without Ceiling - Vehicle Loans - Household Equipment Loans - House Building Advance - Annual Advance MUL PF Trust for better Mgt., Service & speedy redress Page 34 of 40

 Proposed MUL Pension Scheme Learning Opportunity - Benchmark in Auto Technology Professional Value addition through Training Opportunity for foreign training at SMC, Japan Job Rotation & Job enrichment

EMPLOYEE ENGAGEMENT ESOPs

Maruti Udyog Ltd. Employees Mutual Benefit Fund Scheme Managed by a 10-member Trust Fixed Equity of 0.26% Lock-in period of 3 years \ Transferable Internally

Maruti SUGGESTION SCHEME & QUALITY CIRCLES

For better quality and productivity Through involvement of all employees and teamwork During the year 1999-2000 :i) Suggestions Implemented - 52,054 ii) Cost Saving (in crores) - Rs. 131.69 Crores iii) Number of QC Groups - 510 iv) QC Meetings held - 7189 Target for SS & QC for 2000-01: Suggestions Implemented - Prod. & VI - 1implmented/employee/month Other areas - 8.4 implemented/employee/month Cost Saving Rs. 165 crores (25%)increase for the Company QC Meeting - 13 meetings/QC Gp./ Year Targ Company-wide QC Groups (8-15 members per group) Monthly QC Meetings on the First Wednesday each Month Company-wide QC Competitions - Best Team sent to SMC MDs lunch with Best QC Team & Best Suggestion Winner SUGGESTION MERIT EVALUATION : 5 LEVELS (A to E) Criteria - Cost Saving (per annum/one time) - Ingenuity of Suggestion (depth of study) - Applicability (in work area/entire plant) SUGGESTIONS : Monetary Reward MARUTI Criteria Idea - Efforts - Result : Cost reduction / Q Improvement / Productivity Improvement FUTURE CHALLENGES Page 35 of 40

- HR INITIATIVES REALIGNING ORGANISATION CULTURE BASED ON NEW VISION & VALUES OBJECTIVE PERFORMANCE MANAGEMENT & DEVELOPMENT SYSTEM TRANSPARENT JOB ROTATION & JOB ENRICHMENT PERFORMANCE LINKED REWARD AND RECOGNITION SYSTEM CAREER PLANNING & PROMOTION POLICY REVISED RECRUITMENT POLICY COMPETENCY MAPPING STRONG FUCUS ON TRAINING INITIATIVES - BUILD A LEARNNG ORGANISATION - CONTINUOUS VALUE ADDITION TO PROFESSIONAL SKILL - CUSTOMISED TRAINING - TRAINING TO THE PERSONNEL OF BUSINESS PARTNERS INTERNAL COMMUNICATION UNION ALIGNMENT EMPLOYEE INVOLVMENT & PARTICIPATION

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6 Training and Development

Training and Development of dealer Sales Executives

Development and Updation of Training Modules

The Sales Training Department develops new modules along with training agencies based on market requirements, specific needs identified and feedback received.

Conducting Training
Annual Training Calendar is fixed based on: Number of Sales Executives in the sales network Training path requirement of Sales Executives Review of training programs done in the previous year Market Share/ Market situation/Focus areas and new product launches

Training conducted regionally based on fixed monthly calendar. Training Path /Norms for all Dealer Sales persons are as follows: All Dealer Sales Executives need to attend Induction Training before or within a month of joining the dealership (depending on when the program is scheduled in the region) After Induction then the Sales executives needs to attend a segment B program. Page 37 of 40

 They also should attend Car Advisor for life Program which trains him to be a one point contact with the customers handling all his car related needs like finance, insurance, extended warranty, MGA etc and how to develop and maintain relationship with customers After gaining experience, he can attend other courses like segment C etc.

Monitoring and feedback:

Monitoring and Evaluation of Sales force is done on a continuous basis. Pre-tests and post-tests are conducted during training. Feedback is taken from participants on trainers and from trainers on participants. Monitoring is also done through tests and audits at the dealerships.

Communication:
Sales Training Department sends monthly Newsletter Creating Winners to all DSEs. It is a monthly communication containing articles on various aspects of product knowledge, selling skills, market etc .It is a forum for effective communication of new ideas and strategies. It also provides two-way communication. An Annual Selling Skill Contest is organized to test the selling skills of the sales executives. It is conducted at regional levels and culminates in an all India level contest.

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7 Findings
As per my observation I felt that Maruti Udyog Ltd (MUL) has drawn up a new human resources policy, which for the first time, entirely links performance to pay packets for all its executives and managers. The new performance appraisal and compensation system is likely to affect over 1,000 employees -- executives and senior and middle level managers. Company officials said the changeover to a completely performance-based compensation system has been under discussion amongst MUL's senior management and directors for quite sometime now. The employees are being put through workshops to train them on the various aspects of the system. The new system will take effect from this year. The new system is expected to help enhance managerial performance and skills, while making the organisation more capable of assessing its costs and returns. The move is also indicative of the company's renewed stress on increasing per employee productivity.

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BIBILIOGRAPHY
[1] . http://www.marutisuzuki.com. [2] . http://economictimes.indiatimes.com/maruti-suzuki-indialtd/infocompanymanagement/companyid-11890.cms

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