HR Case Study: Marruti Suzuki

EXECUTIVE SUMMARY:

This case describes the various challenges facing the organization in this journey, and how HR works or put best of their efforts in the much-needed change. Problems range from the need to create effective workforce, changing the mentality of employees to cope with the many cross-cultural issues. The most difficult task is to engage in breakthrough innovation. HR needs to create an organizational culture that not only supports these efforts, but also helps to preserve human resources. Increasing competition from foreign born motoring organizations and homegrown organizations like Tata Motors are a threat to the market leader – Maruti Suzuki India Ltd. fierce battle for market share in the coming of these automotive giants.

Maruti Suzuki had to undergo several changes from being a public sector company and monopoly, able to compete with automakers worldwide. This case describes the various challenges facing the organization on this trip and how HR has partnered to carry out the necessary changes. So Jagdish Khattar,the managing director of MSIL from 1994 to 2007,had radily illustrated three phases of MSIL story: from its inception as Maruti Udyog Limited in 1981, when it had 80% of the market share to the second phase that started in 2000 which was about competing with the new entrants in the market and launching different models and initiatives. The third phase came into existence after the government disinvestment from the company, which lead to Maruti becoming Maruti Suzuki India Limited, a subsidiary of SMC.

First Phase:

Maruti Udyog as a Monopoly:

In the monopoly phase the main focus of the company was to produce a small car (people’s car) at a reasonable price. Since MUL being an Indian Government firm, SMC was not comfortable sharing technology with them. So, there was no R&D in India and they are focusing to produce small segment cars in India. MUL was highly committed to target delivery and the employees felt empowered as the work was challenging. The employees in the number of 1000

MSIL could look towards producing different cars like sedans, SUVs, etc. to stay at par with the competition and bank on the huge customer base which they already had. They would benefit if they did not compromise with the quality that their customers believed in and start with aggressive marketing. They should have a mix team of Japanese and Indian management for strategic planning and execution, rather than having a Japanese team for strategies and Indian team for execution part. HR needs to create an organizational culture that not only supports these efforts but also helps to preserve human