HR as Transformation Partner in Maruti Suzuki

HR as Transformation partner in Maruti Suzuki  This case has clearly depicted depicted the changes that Maruti Maruti Suzuki adopted during the time when Maruti Suzuki was itself undergoing change. From Maruti Udyog Limited(MUL) to Maruti Suzuki ndia Ltd. (MSL) the time when go!ernment disin!ested and SM" ac#uired its $%.& per cent stake in MUL and thus MSL a su'sidiary of Suzuki Motor "orporation (SM") apan was 'orn. *ecause of this whole top management underwent a transformation transformation due to this apanese employee were put in charge of strategy and ndian employee in charge of e+ecution. *ut with the changes in the automo'ile industry new market players were e!ol!ing and to keep up with that Maruti had to de!ise new strategy not only with respect to operations 'ut also with regards regards to the ,- aspects also and during this phase in the year &/01 the time when ,- was all a'out recruiting and promotion promotion and less to do with people during this time Siddi#ui was appointed and he was gi!en a huge task to de!elop ,- as a function that was professional and people friendly and focus on de!eloping employee who could face upcoming challenges. 2nd they were doing it !ery successfully with the 3rst step 'y o4ering employees the option of 5-S to the employee and also 'ringing in se!eral training initiati!e such as "hunauti were undertaken undertaken and aimed at instilling pride in 'eing an MSL employee self de!elopment programme out'ound training session was conducted. 2n 6mployee -elation 7e!elopment "ommittee was set up to 'ring 'oth union and management onto the same platform. 8ith all this acti!ities there was increase in the credi'ility of the ,- when in the sur!ey all the department rated ,- 9%:on a scale of  $. 2nd also 'ecause of this ,- has 'ecome part of many decision making strategies they also formed a ,uman -esource -esource nitiati!e 7e!elopment "ommittee (,-7") (,-7") a forum for 7i!isional ,eads to meet at least once in a month for the new ;oinee ,- formulated some plans for them so that they don the director the di!isional head and departmental head with this there was openness and sharing 'ut greater sense of in!ol!ement ?erformance ?erformance management system was introduced to 'ring a'out shift in the organisation where where employee were appraised on the 'asis of performance rather than the time spent 'y them. They also made a pro!ision for low and medium performer performer to impro!e and mo!e ahead

7espite all this there were certain challenges faced 'y the company which was generally related to the culture many of the employee were not happy that apanese people are in a strategic role whereas ndian Middle and low le!el management felt that they are more aware a'out the ndian market and are 'etter suited than their apanese counterpart and also some manager stated discomfort with some aspect of the rules MSL started facing ma;or pro'lem of attrition due to compensation package issue.