Summer training Project

Report

On

“A STUDY ON RECRUITMENT & SELECTION

PROCESS AT MARUTI SUZUKI.”

Submitted for Partial Fulfillment Of

“Masters of Business Administration”

(MBA -2011-2013)

Under The Guidance of:- Under The Supervision of:-

Dr. K.G. Chaubey Mr. xxxxxxxxxxxx

(HOD of MBA) (xxxxxxx)

Submitted By:-

Vineeta Nigam

Roll No. 112870024

1

Naraina College of Engineering & Technology

Panki, Kanpur-208020

2

Institute Certificate

3

Company Certificate

4

ACKNOWLEDGEMENT

I would like to express my Acknowledgement to those people, without whose

contribution, Support and guidance this Report would not have seen the light of

the day. Notable among them are Mr. xxxxxx who was my Project Guide and

who helped me in a lot.

I am also thankful to all other employees of RSPL who guide me during my

Project.

I am also thankful and would like to express my Gratitude to the Honorable

Head of Department Dr. K. G. Chaubey and the entire Institute for giving

me a Platform to have this wonderful opportunity and being able to get a

glimpse of the Corporate World

5

STUDENT DECLARATION

I, Vineeta NIgam student of M.B.A at College of Engineering & Technology

Kanpur of hereby declare that the Project work entitled “ A Study on

Recrutment & Selection at Maruti Suzuki.” is compiled and submitted under

the guidance of xxxxxxxxxxxxx. This is my original work.

Whatever information furnished in this project report is true to the

best of my knowledge.

Vineeta Niagam

MBA Final Year

Roll No: - 112870024

6

EXECUTIVE SUMMARY

Every organization needs to have well trained and experienced people to perform the

activities that have to be done. If current or potential job occupants can meet this

requirement, training is not important. When this not the case, it is necessary to raise the skill

levels and increase the versatility and adaptability of employees. It is being increasing

common for individual to change careers several times during their working lives. The

probability of any young person learning a job today and having those skills go basically

unchanged during the forty or so years if his career is extremely unlikely, may be even

impossible. In a rapid changing society employee training is not only an activity that is

desirable but also an activity that an organization must commit resources to if it is to maintain

a viable and knowledgeable work force.

The entire project talks about the training and development . Here we have discussed what

would be the input of training if we ever go for and how can it be good to any organization in

reaping the benefits from the money invested in terms like (ROI) i.e. return on investment.

What are the ways we can identify the training need of any employee and how to know what

kind of training he can go for? Training being covered in different aspect likes integrating it

with organizational culture. The best and latest available trends in training method, the

benefits which we can derive out of it. How the evaluation should be done and how effective

is the training all together. Some of the companies practicing training in unique manner a

lesson for other to follow as to how to train and retain the best resource in the world to reap

the best out of it.

7

INDEX

S.No Topics Page No

Institute’ CertificateCompany CertificateAcknowledgementStudent Declaration Executive Summary

1.Introduction

About the topic Objective of study

2. Company Profile

3. Product Profile

4. Recruitment & selection

5. Research Methodology

6. Data Analysis & Interpretation

7. Findings

8. Suggestion

9. Conclusion

10. Questionnaires

11. Bibliography

8

9

ABOUT THE TOPIC

Maruti Suzuki is one of the largest automobile industries in India. Over the last four decades,

company has been constantly bringing new and world-class products. It provides variants

brands and try to mitigate all types of human demand by introducing with new innovative

products. Marti used to attract the best graduates to join in their leadership actions. This

report enlightens what type of recruitment and selection opportunities are offered to

employees of Marti Suzuki Private Limited. The company looks for passionate people who

want to do real business and have the potential to be highly motivated by brands, and are

enthusiastic, creative and rigorous. They want people who are hungry for success and can

work confidently in teams. They create an environment where people with energy, creativity

and commitment work together to fulfill ambitious goals. In addition, they all work to the

highest standards of professional excellence and integrity. Most career areas are open to grab

dates of any discipline, although there are some exceptions. If you know which area interests

you, great – but it’s good to keep an open mind and find out about all the opportunities they

offer. Marti Suzuki used to emphasize on written test, group discussion, and personal

interview. In this research report a comparative analysis has been shown between Marti

Suzuki and Tata Motors on basis of recruitment and selection process. Tata Motors are a

healthy competitor of Marti Suzuki but there recruitment and selection criteria is not better

than Marti Suzuki because Tata Motors emphasize on direct personal interview. Rather than

Marti used to do step by step process. So they are THE LEADER OF AUTOMOBILE

INDUSTRY IN INDIA.

10

OBJECTIVE OF THE STUDY

To Identify The Constraints And Influence Of Situational Factor.

To identify the various sources of recruitment and emerging trends.

To study the recruitment & selection policies of a firm/industry.

To study Indian experience of recruitment.

To analyze the current scenario of recruitment and selection process.

To study the industrial disputes of organization.

11

12

INDUSTRY PROFILE

East meets South in Maruti Suzuki India limited (MSIL). The New Delhi-based company is a

subsidiary of Suzuki Japan, and India's largest OEM of passenger cars, netting about 55% of

domestic sales. It touts a 13 brand line with over 150 options, including the family car Maruti

800, premium hatchback Ritz, and popular compact A-Star. The company runs two

production sites. Its Gurgaon facility, integrating three plants, is able to churn out a whopping

700,000 cars annually. The Manesar facility, dedicated to first-to-market rollouts, promises to

grow to an annual assembly capacity of 300,000. Revving up its bottom line, MSIL exports

Suzuki models to Latin America, Africa, and Southeast Asia, and sporadically to Europe.

The company plans to expand its manufacturing capacity to 1.75 million by 2013. For this the

company will be investing around Rs. 60 Billion (Rs 6,000 crores) over the period till 2013.

The company offers a wide range of cars across different segments. It offers 14 brands and

over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto,

Alto-K10, A-star, Wagon R, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara,

sedans SX4 and Swift D’Zire In an environment friendly initiative, in August 2010 Marti

Suzuki introduced factory fitted CNG option on 5 models across vehicle segments.

In fiscal 2009-10 Marti Suzuki became the only Indian company to manufacture

Maruti Suzuki has employee strength over 7,600 (as at end March 2010),

13

In 2009-10, the company sold a record 10,18,365 vehicles including 1,47,575 units of

exports. With this, at the end of March 2010, Maruti Suzuki had a market share of 53.3 %

MARUTI SUZUKI INDIA predominantly operates in the Motor Vehicles and Passenger Car

Bodies sector. The Company is mainly engaged in the business of manufacture, purchase and

sale of motor vehicles and spare parts (automobiles).The automobile sector owes a great

interest profit in today’s competitive era, since 1880’s day by day it is rising very fast in India

as well as in international market.

14

15

COMPANY PROFILE

East meets South in Marti Suzuki India (MSIL). The New Delhi-based company is a

subsidiary of Suzuki Japan, and India's largest OEM of passenger cars, netting about 55% of

domestic sales. It touts a 13 brand line with over 150 options, including the family car Marti

800, premium hatchback Ritz, and popular compact A-Star.

The company runs two production sites. Its Gurgaon facility, integrating three plants, is able

to churn out a whopping 700,000 cars annually. The Manesar facility, dedicated to first-to-

market rollouts, promises to grow to an annual assembly capacity of 300,000. Revving up its

bottom line, MSIL exports Suzuki models to Latin America, Africa, and Southeast Asia, and

sporadically to Europe.

The company plans to expand its manufacturing capacity to 1.75 million by 2013. For this the

company will be investing around Rs. 60 Billion (Rs 6,000 Crores) over the period till 2013.

The company offers a wide range of cars across different segments. It offers 14 brands and

over 150 variants - Marti 800, people movers, Omni and Eeco, international brands Alto,

Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara,

sedans SX4 and Swift DZire In an environment friendly initiative, in August 2010 Marti

Suzuki introduced factory fitted CNG option on 5 models across vehicle segments.

In fiscal 2009-10 Marti Suzuki became the only Indian company to manufacture .

16

MARUTI SUZUKI INDIA predominantly operates in the Motor Vehicles And Passenger Car

Bodies sector. The Company is mainly enganged in the business of manufacture, purchase

and sale of motor vehicles and spare parts (automobiles).

17

HISTORY OF COMPANY

18

Marti Suzuki Udyog Limited is the India’s largest automobile company. Its main factory is

situated in Gurgaon district Haryana .The company, a joint venture with of government of

India with Suzuki of Japan .It has been success story like no other in the annuals of

automobile industry .The first cars rolled out for sale on 14th December 1983, marking the

beginning revolution in the automobile industry. The Indian car market had stagnated

volume of 30,000 or 40,000 cars a year for the decade ending 1983.In 1993, this figure

reached a 196,456. Marti reached a production of one

million in March 1994, becoming the first Indian Company to cross the milestone, and

crossed the two million in 1997For the year ended 1997-98, Marti posted a turnover of

US$ 2.1 billion and a profit before tax of US$ 244 billion .During the year, Marti

produced over 350,000 vehicles, out of which 260, 00 were exported. Marti used to, pay

dividend every year to their dividend holders. It is the leader in the luxury car segment

with a market share of 45%. Marti also sells the Grand Vitara Sports Utility Vehicle in

India. The success of the joint venture led Suzuki to increase its equity from 36 % to 55%

in 1987 and further to 60% in 1992. Liberalisation occurs and that time only Marti led its

car Marti 800 in the market. Since 1991 India reaches to its success in India as well as in

the Japan.

One of the country’s largest car manufacturers, Marti Suzuki has been rightly crowned as

one oSf the kings in the Indian car industry, which continues shine on Indian roads even

today. Marti Suzuki India Limited (MSIL), which was previously Marti Udyog Limited

(MUL), is a subsidiary of Suzuki Motor Corporation of Japan. This car manufacturer is

the largest passenger car company dominating the market share domestically. Marti Suzuki

is the house hold name in India, which has made a remarkable place in the Indian car

industry for over two decades. The company was born in Feb 1981 through an Act of

19

Parliament. However, the actual production began in 1983. The company entered into

partnership with Suzuki Motor Corporation of Japan to manufacture cars. The main

intention of introducing Marti Udyog Limited was to help the people for personal mode of

transport, as they were not much reliable on the public transport system that was not up to

the mark in the past. The success of Marti Suzuki is exceptionally to the most well-liked

model Marti 800 hatchback that has been sold in millions worldwide. The Marti 800 was

one of the modern low-cost and fuel-efficient cars. The most incredible fact is that Marti

leads every year in JD Power's annual customer satisfaction survey. Now Alto has also

made a remarkable pace in the Indian car market. Today more than half the number of

cars is sold in India that holds a Marti badge. Marti Suzuki offers eleven models and they

are Marti 800, Alto, Omni, Gypsy, Zen Estilo, Wagon R, Versa, SX4, Swift, Swift Dzire,

and Grand Vitara.

The upcoming models of Marti Suzuki are the Marti A-Star and Splash, which is on their

way to be launched soon in India. They come with brand new attractive features that will

drive crazy for the Indian car buyers.

From the time it has commenced its business in India, Marti Suzuki has manufactured and

sold around 7.5 million vehicles in India and exported over 500,000 units to Europe and

other countries. This is a great achievement for the company. The company was born as a

minor partner to provide cars to middle class society and over the year it has spread its

wings wide. Marti Suzuki exports more than 30,000 cars annually and has enormously

large domestic market selling annually over 500,000 cars in India.

20

Marti Suzuki believes in the simple concept of “smaller, fewer, lighter, shorter and

neater.” The work culture is unique where a common uniform and a common canteen for

everyone from the Managing Director to the worker.

The company comes with ample number of services in the country like Authorized Service

Stations across the country, Marti Insurance, Marti Finance. Marti True Value, which is,

used car business that helps many of the Marti Suzuki customers sell or exchange used

Marti vehicles with the help of this service in India. The company has also set up Marti

Driving School. Now these services are extended to other cities of India as well. Today

Marti Suzuki has built a strong sales network of 600 outlets spread over 393 towns and

cities. The maintenance support is offered to the customers at higher cost.

21

QUICK FACTS OF COMPANY

Year of establishment February 1981

Vision Leader in Automobile Industry “A PRIDE OF INDIA”

Industry Automotive-Four Wheelers

Listing & its Codes BSE-Code :532500

NSE-Code: MARUTI

Reuters:MRTI.BO

Joint Venture Suzuki Motor Company, now Suzuki Motor Corporation of Japan

in October 1982.

Registered & Corporate

Office

11th Floor ,Jeevan Prakash

25, Kasturba Gandhi Marg

New Delhi -110001, India

Works Palam Gurgaon Road

Gurgaon-122015

Haryana, India

Website http://www.marutiudyog.com/

22

MARUTI SUZUKI COMPANY PROFILE

“We expect that A-star will enable our company to reach a different level in our exports.

Last year, Marti Suzuki exported 53,000 cars to over 40 countries. This was the highest

ever annual export in our history. However, with the A-star, we are targeting to make a

quantum jump, and scale up our exports to around 200,000 cars in 2010-11.”

-Shinzo Nakanishi,

Marti Suzuki India Limited (MSIL, formerly Marti Udyog Limited), a subsidiary of Suzuki

Motor Corporation of Japan, is India's largest passenger car company, accounting for over

50 per cent of the domestic car market.

 

23

Marti Exports Limited is the subsidiary of Marti Suzuki with its major focus on

exports and it does not operate in the domestic Indian market. The first consignment of

490 cars was sent to Hungary,Angola, Benin, Ethiopia, Kenya, Morocco, Sri Lanka, Uganda,

Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Marti

Export. Marti Suzuki India is understood to be planning to ramp up its output by about 10 per

cent to produce over 1.1 lakh units every month from October

With this level, the company's annual production will cross 13 lakh units in 2011-12, compared

to about 12 lakh units planned for this fiscal. According to industry sources, Marti Suzuki India

(MSI) has started work for increasing its production from last month and it plans to scale up

the same to beyond 1.1 lakh units a month from the current

"Many of their cars are having long waiting periods. In order to speed up the delivery, MSI is

ramping the capacity in both Gurgaon and Manesar plants," a source said. The company's

hatchback Swift and Ritz do have 3-4 months and 1-2 months of waiting period. While

customers are queueing for  4-5 months to own the sedan DZiRE, MSI is taking about 5

months to deliver the multi-purpose vehicle Eeco.

24

COMPANY OVERVIEW

Marti Suzuki India Limited, formerly Marti Udyog Limited, is engaged in the business of

manufacturing, purchase and sale of motor vehicles and spare parts (automobiles). The other

activities of the Company include facilitation of pre-owned car sales, fleet management and car

financing. The Company has four plants, three located in Palam Gurgaon Road, Gurgaon,

Haryana and one located at Manesar Industrial Town, Gurgaon, Haryana. During the fiscal year

ended March 31, 2009, the Company produced and sold over seven million cars, and exported

more than 500,000 cars. The Company's subsidiaries include Marti Insurance Business Agency

Limited, Marti Insurance Distribution Services Limited, Marti Insurance Agency Solutions

Limited, Marti Insurance Agency Network Limited, Marti Insurance Agency Services Limited

and Marti Insurance Agency Logistics Limited. The Company’s subsidiaries are engaged in the

business of selling motor insurance policies to owners of Marti Suzuki vehicles. Marti Suzuki

launched its strategic model ‘A-star’ a Euro V compliant model in A-segment to explore new

markets in domestic as well as overseas and primarily to boost its exports in the coming years.

A-star is the fifth world strategic model of its parent company Suzuki, as a part of its global

market strategy for small cars segment and to leverage the low cost manufacturing capabilities

of the company. This car has been designed to keeping in mind aspirations of the urban

environment conscious customers. Company has used latest technologies to make it as most fuel

efficient petrol car. In addition it represents a green car, capable of being 85% of it being

recycled. This would help to make the car more acceptable.

With this launch company has the opportunity to re-launch itself in the European markets, which

it had left two years back because lack of suitable model. Now it is targeting a yearly volume of

100,000 in Europe and other parts of the world. Company had already entered into an export

25

contract for this new model, with Nissan a European auto giant. Company sources believe that

this would take its exports to around 200,000 cars by FY 11. In domestic front also, company

expect this model to be well accepted of its sporty and compact look, matching with the earlier

success full launched models Swift, Dzire, and SX4.

The company had already built a new technology world class manufacturing facilities at

Manesar to manufacture one million units per year. In partnership with Adani Group Company

build new export cargo infrastructure facilities to support its ambitious export plans. Marti

Suzuki wants to celebrate their silver jubilee by exploring new growth opportunities with this

launch and plans to maintain its leadership position which it has for the last 25 years in the

domestic market of Indian Automobile Industry.

26

CURRENT SCENARIO

The global passenger car industry has been facing the problem of excess capacity for quite

some time now. For the year 2002, the global capacity in the automotive industry was 75

million units a year, against production of only 56 million units (excess capacity estimated at

25%). Efforts to shore up capacity utilization have prompted severe price competition, thus

affecting margins and forcing fundamental changes in the industry. The

pressure on sales and margins is driving players to emerging markets in pursuit of better

growth opportunities and/or access to low-cost manufacturing bases.

• The concept of selling in the passenger car industry is changing from original sales towards

lifecycle value generation, encompassing financing, repairs & maintenance, cleaning,

provision of accessories, and so on.

• Vehicle manufacturers are moving into completely new materials and technologies—partly

guided by environmental legislation—in striving to come up with radically different products.

Some of these new technologies involve parts that can be bolted on to an existing vehicle

with relatively few implications for the rest of the vehicle. Others are much more

fundamental, and are likely to have a profound impact throughout the supply chain. The

examples include battery, electric or hybrid power trains, and alternatives to the all-steel

body. Carmakers are increasingly outsourcing component production, and focusing on

product design, brand management and consumer care, in contrast to the traditional emphasis

on manufacturing and engineering.

27

• The increasing need to attain global scales underscores the importance of platform sharing

among carmakers. All original equipment manufacturers (OEMs) are trying to reduce the

number of vehicle platforms, but raise the number of models produced from each platform.

This means producing a number of seemingly distinct models from a common platform. 

Current scenario in Passenger Car Category

The dominant basis of competition in the Indian passenger car industry has changed from

price to price-value, especially in the passenger car segment. While the Indian market

remains price sensitive, the stranglehold of Economy models has been slackening, giving way

to higher-priced products that better meet customer needs. Additionally, a dominant trend in

the Indian passenger car segment is the increasing fragmentation of the market into sub-

segments, reflecting the increasing sophistication of the Indian consumer.  With the launch of

new models from FY2000 onwards, the market for MUVs has been redefined in India,

especially at the upper-end. Currently, the higher-end MUVs, commonly known as Sports

Utility Vehicles (SUVs), occupy a niche in the urban market, having successfully shaken off

the tag of commercial vehicles attached to all MUVs till recently. Domestic car

manufacturers are now venturing into areas such as car financing, leasing and fleet

management, and used-car reconditioning/sales, to complement their mainstay-business of

selling new cars.

Threat from substitutes: Low to medium-

With consumer preferences changing, inter product substitution is taking place (Mini cars are

being replaced by compact or mid sized cars).Setting up integrated manufacturing facilities

may require higher capital investments than establishing assembly facilities for semi knocked

down kits or complete knocked down kits. In recent years, even though the ratio of sales to

28

capacity (an important indicator of the ability to reach break-even volumes) of the domestic

car manufacturers have improved, it is still low for quite a few car manufacturers in India.

India is also likely to increasingly serve as the sourcing base for global automotive

companies, and automotive exports are likely to gain increasing importance over the medium

term. However, the growth rates are likely to vary across segments. Although the Mini

segment is expected to sustain volumes, it is likely to continue losing market share; growth in

the medium term is expected to be led largely by the Compact and Mid-range segments.

Additionally, in terms of engine capacity, the Indian passenger car market is moving towards

cars of higher capacity. This apart, competition is likely to intensify in the SUV segment in

India following the launch of new models at competitive prices.

Major Players-

Bajaj Tempo Limited, DaimlerChrysler India Private Limited, Fiat India Automotive Private

Limited, Ford India Limited, General Motors India Limited, Hindustan Motors Limited,

Honda Siel Cars India Limited, Hyundai Motor India Limited, Mahindra & Mahindra

Limited, Marti Udyog Limited, Skoda Auto India Limited, Tata Motors Limited, Toyota

Kirloskar Motors Limited.

29

CHAIRMAN OF COMPANY

Mr. R. C. Bharghava (chairman)

Marti Suzuki India Limited (MSIL), was given the Lifetime Achievement Award for

Management at the All India Management Association’s (AIMA) 54th Foundation Day

celebrations this week. Mr. Bharghava said on the sidelines of the awards ceremony that a

step-by-step withdrawal of the stimulus package would not hurt the auto industry. He said

a small increase in excise duty in the upcoming budget was unlikely to have any negative

repercussions

30

MISSION & VISION

MISSION-

Mission is the statement of an organization’s purpose, what it want to accomplish in the

larger environment and its goals which are specific, realistic and motivating. Missions are

described over visions and visions demand certain objectives.

-Modernization of the Indian Automobile Industry.

-Developing cars faster and selling them for less.

-Production of fuel-efficient vehicles to conserve scarce resources.

- Mission of Marti Suzuki , has adopted a National Road Safety program.

31

Vision-

Visions of any company are those values on which company works. As the MUL is started

by Governmental initiatives it tends to be more consumer oriented and hence cost

effective, but on the other hand Suzuki’s participation ensures not only need of the profit,

but of the need of maximum profit. The only way for this Nora’s dilemma of selecting

principals for company’s working vision, was to maximize profit and reducing cost by

maximizing output and sales Hence MUL declared its Vision

“The Leader in the Indian Automobile Industry, Creating Customer Delight1 and

Shareholder's Wealth2; eventually become a pride of India”

Customer Delight is making sure that performance, after sales service and customer

support are best and beyond expectation. Shareholder’s wealth2 is the prime concern for

running business smoothly.MUL knows this and understands “customer is king”, he can

change the fortune of any company, hence goes company’s brand line: COUNT ON US!

32

MARUTI MANUFACTURING EXCEELENCE

33

PRODUCTION, LEAN MANUFACTURING &

FACILITIES

Automotive Mission Plan 2006-2016

Prime Minister Dr. Manmohan Singh released India’s ‘Automotive Mission Plan’ (AMP) 2006-

2016, which envisions India’s endeavors towards becoming a global auto hub. The Ministry of

Heavy Industries & Public Enterprises has drawn the AMP. The AMP calls for auto sector

investments of $40 billion over the next ten years to achieve a turnover of $145 billion from the

current $35 billion by 2016, accounting for 10 per cent of GDP. The Plan also focuses on

increasing India’s auto sector exports, which are presently worth $4.1 billion, to at least $35

billion so as to make India a prominent player in the global market. It is a 25-point plan to make

India a global manufacturing and export hub for small cars, multi-utility vehicles, two and three-

wheelers, tractors, and auto components. The 25-point Automotive Mission Plan includes –

establishment of National Automotive Testing and R&D Infrastructure Development Project

(NATRIP), several initiatives for creation and fulfillment of automotive demands, for the

betterment of society and environment, and for acting as a catalyst in generating an additional 25

million jobs.

In 2002, the Indian Government formulated an Auto Policy aimed at promoting an integrated

growth of the industry, which involved Investment Incentives by the State Governments. Some

of the incentives that different states provide include: Customized incentives for Large

Investments, Automatic Approval for Foreign equity investment up to 100% and absence of

minimum investment criteria. Apart from these, manufacturers engaged in in-house research and

R&D activities will get weighted tax deduction up to 150%. Also Government’s emphasis on

low emission fuel auto technologies and availability of appropriate auto fuels and

34

encouragement to construction of safer bus/truck bodies (unorganized sector) also to 16% excise

duty on body building activity as in case of OEMs.

Performance

As a result of various regulations, the cumulative growth in the PV segment during April 2007-

March 2008 was 12.17 % in the domestic market. The growth in Passenger Cars was 11.79 %,

Utility Vehicles was 10.57 %, and Multi Purpose Vehicles was 21.39% during this period. The

growth in the Commercial Vehicles segment was marginal at 4.07 %. While growth in Medium

& Heavy Commercial Vehicles declined by 1.66 %, Light Commercial Vehicles recorded a

growth of 12.29%. Three Wheelers sales fell by 9.71% with sales of Goods Carriers declining

significantly by 20.49% and Passenger Carriers declined by 2.13% during FY2008 compared to

last year. Automobile Exports registered a growth of 22.30% during the current financial year.

The growth was led by two-wheelers segment, which grew at 32.31 percent. Commercial

Vehicles and Passenger Vehicles exports grew by 19.10 % and 9.37% respectively. Exports of

Three Wheelers segment declined by 1.85%.

Future Outlook

Automotive industry is moving upward rapidly in the country and in Asian regions, principally

due to a saturation of the automotive industry in the western world. Indian automobile industry

is playing a major role in Asian Automobiles markets along with the Association of South-East

Asian Nations (ASEAN) and China. Various financial institutions and rating agencies analyzed

the growth rate of India’s economy and have forecast a growth in the economy in future at the

rate of 8%. Although the industry bears the brunt of recession, the sales figures of December ’08

are true indicators of global slow down. India’s growing middle class, strong economy (although

35

recession has hit the economy, but on an optimistic and positive note, it will soon come over and

bounce back), and trained workforce indicate a bright future

Future Strategy-

Competency mapping

Job rotation and job enrichment

Building a learning organization

Customized training

Union alignment

Career planning and promotion policy

Strong focus on training initiatives

MARUTI PLANS FOR A BIG DIESEL FORAY-

The new car manufacturing company, called Marti Suzuki Automobiles India Limited, will be a

joint venture between Marti Udyog and Suzuki Motor Corporation holding a 70 per cent and 30

per cent stake respectively.  The Rs1,524.2 crore plant will have a capacity to roll out 1 lakh cars

per year with a capacity to scale up to 2.5 lakh units per annum. The new car manufacturing

plant will begin commercial production by the end of 2006.

Marti would set up a diesel engine plant at Gurgaon in line with its plan to become a major

player in diesel vehicles in a couple of years. This has been done in the wake of major

competition from Tata Indica and meets the growing demand of diesel cars in India. While the

annual growth in the diesel segment was 13 per cent in the last three years, it was 19-20% per

cent in the first quarter (April-June) of the current fiscal. Marti has currently an insignificant

presence in diesel vehicle. It will manufacture new generation CRDI (common rail direct

injection) engines in collaboration with Fiat-GM Opel and engines will be of 1200 cc. The plant

36

with a capacity to produce one lakh diesel engines would be operational in 2006. At present,

Peugeot of France, supplies diesel engines for Maruti's Zen and mid-sized Esteem models. This

will further reduce the imported component in Marti vehicles, making them more competitive in

the Indian market. 

KEY SUCCESS FACTORS-

(1)The Quality Advantage

Marti Suzuki owners experience fewer problems with their vehicles than any other car

manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the

premium compact car segment and the Esteem in the entry level mid - size car segment

across 9 parameters.

(2)A Buying Experience Like No Other

Marti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a

workforce of over 6000 trained sales personnel to guide MUL customers in finding the right

car.

(3)Quality Service Across 1036 Cities

In the J.D. Power CSI Study 2004, Marti Suzuki scored the highest across all 7 parameters:

least problems experienced with vehicle serviced, highest service quality, best in-service

experience, best service delivery, best service advisor experience, most user-friendly service

and best service initiation experience.

92% of Marti Suzuki owners feel that work gets done right the first time during service. The

J.D. Power CSI study 2004 also reveals that 97% of Marti Suzuki owners would probably

recommend the same make of vehicle, while 90% owners would probably repurchase the

same make of vehicle.

(4)One Stop Shop

37

At Marti Suzuki, customers will find all car related needs met under one roof. Whether it is

easy finance, insurance, fleet management services, exchange- Marti Suzuki is set to provide

a single-window solution for all car related needs.

(5) The Low Cost Maintenance Advantage

The acquisition cost is unfortunately not the only cost customers face when buying a car.

Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as

some of its regularly used spare parts may be priced quite steeply. Not so in the case of a

Marti Suzuki. It is in the economy segment that the affordability of spares is most

competitive in the market

38

PLAYERS OF AUTOMOBILE INDUSTRY

COMPETITOR ANALYSIS

HYUNDAI MOTOR INDIA LIMITED –

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor

Company, South Korea and is the second largest and the fastest growing car manufacturer in

India . HMIL presently markets over 25 variants of passenger cars in six segments. The Santro

in the B segment, and Getz in the B+ segment.

HYUNDAI SANTRO

We are mainly going to concentrate on the various marketing and positioning strategies of

Hyundai Santro as against that of Marti Zen and Alto and Hyundai Getz as against Marti Swift.

POSITIONING OF SANTRO –

The old positioning of the Santro was that of a ‘family car’, this positioning strategy was

changed in around 2002 and Santro was repositioned as to that of ‘a smart car for young

people.’ The target age group for the car had now shifted from 30-35 years to 25-30 years. The

repositioning followed the face-lifts the car has been getting from time to time in the form of

engine up gradation, new power steering, automatic transmission, etc, to keep the excitement

around it alive in the highly competitive small car market. The

repositioning also comes ahead of the possible launch of a new design Santro, and the super B-

segment car ‘Getz’, sometime in 2003.

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HYUNDAI’S PRICING STRATEGY –

With the launch of Marti Swift recently a price war was expected to kick in .Immediately after

Marti raised prices on its debutante Hyundai Motor India hit backwith a Rs 16,000-

19,000 markdown on three new variants of Santro Xing. The company has introduced the XK

and XL variants at a lower tag of Rs 3,26,999 and Rs .3,45,999 respectively. The new price

variants are likely to give Maruti’s existing B-segment models, Zen and WagonR a run for

their money. Hyundai has also launched a new non-AC variant of the Santro at Rs 2.79 lakh, a

tad higher than what the existing non -Ac Santro costs.

TATA MOTORS-

Established in 1945, Tata Motors is India's largest and only fully integrated automobile

company. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-year

collaboration agreement with Daimler Benz of Germany. Tata Motors Limited is India's

largest automobile company, with consolidated revenues of Rs. 92,519 crores (USD 20

billion) in 2009-10.

POSITIONING OF INDICA –

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Tata has positioned Indica as `more car per car'. The new car offers more space, more

style, more power and more options. Emphasizing the delivery of world class quality.

They have tried to redefine the small car market as it has been understood in India.True

to its "More car per car" positioning, the Indica CNG offers all the core benefits of the

Indica combined with the advantage of CNG. One of the most popular advertisements on

television currently, is the one where the guy portrayed as the ‘loveable liar’, gets socked

everytime he lies ; but not when he speaks about the Indica thus implying- “ must be

true”. Elaborating on the campaign, the new ad was launched with the intention of giving

the Indica V2 brand a touch of youthfulness.

TATA’S PRICING STRATEGY –

After the price war being triggered off by Hyundai being the first company to introduce what

came to be known as, pricing based on customer's value perceptions , all others followed

suit.Telco's Indica came in the range of Rs 2.56 lakh to Rs 3.88 lakh with 4 models. The price-

points in the car market were replaced by price-bands. The width of a price-band was a

function of the size of the segment being targeted besides the intensity of competition. The

thumb rule being 'the higher the intensity, the wider the price-band.'

REPOSITIONING OF MARUTI PRODUCTS –

Whenever a brand has grown old or its sales start dipping Marti makes some facelifts in the

models. Other changes have been made from time to time based on market responses or

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consumer feedbacks or the competitor moves. Here are the certain changes observed in

different models of Marti.

Omni has been given a major facelift in terms of interiors and exteriors two months back. A

new variant called Omni Cargo, which has been positioned as a vehicle for

transporting cargo and meant for small traders. It has received a very good response from

market. A variant with LPG is receiving a very good response from customers who look

for low cost of running.

Versa prices have been slashed and right now the lowest variant starts at 3.3 lacs. They

decreased the engine power from 1600cc to 1300cc and modified it again considering

consumers perception. This was a result of intensive survey done all across the nation

regarding the consumer perception of Versa.

Esteem has gone through three facelifts. A new look last year has helped boost up the waning

sales of Esteem.

Baleno was launched in 1999 at 7.2 lacs. In 2002 they slashed prices to 6.4 lacs. In 2003 they

launched a lower variant as Baleno LXi at 5.46 lacs. This was to reduce the price and attract

customers.

Wagon-R was perceived as dull boxy car when it was launched. This made it a big failure on

launch. Then further modifications in engine to increase performance and a facelift in the form

of sporty looking grills on the roof. Now it’s of the most successful models in Marti stable.

Zen has been modified four times till date. They had come up with a limited period variant

called Zen Classic. That was limited period offer to boost short term sales.

Marti 800 has so far been face lifted two times. Once it came with MPFi technology and other

time it came up with changes in front grill, head light, rear lights and with round curves all

around.

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43

COMPANY PFOFILE OF TATA MOTORS

It is the leader in commercial vehicles in each segment, and among the top three in

passenger vehicles with winning products in the compact, midsize car and utility vehicle

segments. The company is the world's fourth largest truck manufacturer, and the world's

second largest bus manufacturer.

The company's 24,000 employees are guided by the vision to be "best in the manner in

which we operate, best in the products we deliver, and best in our value system and ethics."

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of

India. Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954.

The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad

(Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint

venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat

and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand

(Gujarat). The company's dealership, sales, services and spare parts network comprises over

3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India.Tata

Motors, the first company from India's engineering sector to be listed in the New York

Stock Exchange (September 2004), has also emerged as an international automobile

company. Through subsidiaries and associate companies, Tata Motors has operations in the

UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business

comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the

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Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The

rechristened Tata Daewoo Commercial Vehicles Company has launched several new

products in the Korean market, while also exporting these products to several international

markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are

from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a

reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.

Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint

venture with the Brazil-based Marcopolo, a global leader in body-building for buses and

coaches to manufacture fully-built buses and coaches for India and select international

markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive

Assembly Plant Company of Thailand to manufacture and market the company's pickup

vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the

Xe non pickup truck, with the Xenon having been launched in Thailand in 2008. Tata

Motors is committed to improving the quality of life of communities by working on four

thrust areas – employability, education, health and environment. The activities touch the

lives of more than a million citizens. The company's support on education and

employability is focused on youth and women. They range from schools to technical

education institutes to actual facilitation of income generation. In health, our intervention is

in both preventive and curative health care. The goal of environment protection is achieved

through tree plantation, conserving water and creating new water bodies and, last but not

the least, by introducing appropriate technologies in our vehicles and operations for

constantly enhancing environment care.  With the foundation of its rich heritage, Tata

Motors today is etching a refulgent future.

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46

FINANCIAL ANALYSIS OF COMPANY

Business and Financial Metrics

From FY2004 to FY 2009, sales revenues have grown from Rs 9,081 crore to Rs 20,358 crore,

at average annual rate of over 20%.[7] In the same period, net profit grew from Rs 542 crore to

Rs 1,218 crore by over 20% average annual growth rate. [7]. Despite the general economic

slowdown, the sales of Marti Suzuki increased from Rs 17,860 Crore to Rs 20358 Crore.[3] This

was mainly due to the strong presence of the company in the small car segment, which was not

affected by the downturn. But due to the increase in the material cost on account of increased

commodity prices and adverse foreign exchange fluctuations, the EBITDA fell from 17.5% to

12% and net profit margin fell from 9.7% to 8.2%.[3]

The company plans to continue with its Rs. 9,000 Crore expansion plan which is to be

completed by Dec 2010.[8] Under the same expansion plans the company increased the capacity

of its Manesar plant by 70% in January 2009.[8]

Shareholding Details

Suzuki Motor (SZKMF) owns 38.61% of Marti Suzuki India. Financial institutions and insurance

companies own another 20.73% and 15.83% of the company, respectively. Reliance Vision

Fund, Reliance Growth Fund, Reliance Equity Fund are the mutual funds invested in the firm,

with 0.31%, 0.30% and 0.28% ownership respectively.

car (98.96% of sales)

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The Passenger car segment has been the sole focus of Marti Suzuki India. This segment

contributed to more than 98.96% of the sales in FY2008-09. [11] Through timely launch of new

models and focused strategy the company has been able to maintain a market share of more than

52% in this segment.[12] In 2nd quarter of 2009, the sales of this segment grew by over 9.7% as

compared to the sales in the 2nd quarter of 2008.[11] The company competes in the small car sub

segment through the brands Marti 800, Alto, Wagon R, Zen, Swift, A-star and Ritz. Whereas it

has its presence in the sedan sub segment through the brands SX4 and D-zire. Omni and Versa

are the brands in the van segment.[11] This segment accounts for all the exports of Marti Suzuki.

By quarter to quarter comparison, the export market for the company grew from 12,491 units to

29,314 units by over 134% in the 2nd quarter of the last two years.

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49

CORPORATE GOVERNANCE OF COMPANY

In India, 'Corporate Governance' standards for listed companies are stipulated by Securities

and Exchange Board of India (SEBI) through a special provision- Clause 49

ListingAgreement.

As a conscious and vigilant organization, Marti Suzuki had initiated good 'Corporate

Governance' practices even before Clause 49 became applicable and these practices form an

integral part of the company’s governance culture.

The Company strives to foster a corporate culture in which high standards of ethical

behavior, individual accountability and transparent disclosure are ingrained in all its business

dealings and shared by its Board of Directors, Management and Employees.

The Company has established systems & procedures to ensure that its Board of Directors is

well-informed and well-equipped to fulfill its overall responsibilities and to provide the

management strategic direction it needs to create long-term shareholder value.

On its Board, the Company has four non-Executive- Independent Directors of high stature

from varied backgrounds, who bring with them rich experience and high ethical standards.

In recent years, the Company has evolved a Control Self Assessment mechanism to evaluate

the effectiveness of internal controls over financial reporting.

Key internal controls over financial reporting. .

With the successful implementation of the online Controls Self Assessment framework, the

Company has become one of the few companies in India to have a transparent framework for

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evaluating the effectiveness of internal controls over financial reporting. The initiative further

reinforces the commitment of the Company to adopt best corporate governance practices.

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Tata Motors-

Tax rate for first quarter declined substantially and stood at 5.5% as compared to

21.2% for same period last year, on account of large dividends received by

Company on its Investments/Subsidiaries which are not taxable in the hands of the

Company and weighted deductions available on R&D expenditure.

As on 30th June’10, the balance sheet size of the Company was Rs. 183.98 bn as

compared to Rs 150.96 bn as on 31st March’08. Net of vehicle financing loans and

receivables the Company’s capital employed was Rs 178.33 bn as on 30th June’08

against Rs.135.76 bn as on 31st March’08.

As on 30th June, 385.62 mn shares (Face value Rs.10) were outstanding on the

balance sheet of Tata Motors.

The Gross total debt (inc. FCCNs) stood Rs 94.97 bn as on 30th June10 as compared

to Rs. 62.8 bn as on 31st March’09. The Company’s Net Debt (Net of the surplus

investible funds) stood at Rs 89.3 bn as on 30th June’10. As on 30th June’10, the

Company’s net debt to equity ratio stood at 1.12:1.

Up to June 30th, 2010, 99.94% of the 1% convertible Notes (due 2010) and 97.09%

of the Zero coupon Convertible Notes (due 2009) have been converted into Ordinary

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Shares / ADSs. There have been no conversions of the other FCCNs issued by the

Company.

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RECRUITMENT

“Recruitment is the process of searching and obtaining applicants for jobs, from among whom

the right people can be selected. In fact, it is the process of finding and attracting capable

applicants for employment. The process begins when the new recruits are sought and ends

when their applications are submitted. The result is a pool from which new employees are

selected and recruited.”

“Recruitment is defined as a process to discover the sources of manpower to meet the

requirements of the staffing schedule and to employ the effective measures for attracting the

manpower in adequate numbers to facilitate employment”

“Effective selection of an effective workforce.”

It is divided into two parts:-

ON THEJOB RECRUITMENT

OFF THE JOB RECRUITMENT

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PURPOSE AND IMPORTANCE

The purpose of recruitment is to provide a pool of potentially qualified job candidates.

Specifically the purposes are to:

1. Determine the present and future requirements of the organization in conjunction with its

personnel-planning and job analysis activities.

2. Increase the pool of job candidates at minimum cost.

3. Help increase the success rate of selection process by reducing the number of visibly

under qualified or overqualified job applicants.

4. Help reduce the probability that job applicants, once recruited and selected, will leave the

organization only after a short period of time.

5. Meet the organization’s legal and social obligations regarding the composition of its

workforce.

6. Begin identifying and preparing potential job applicants who will be appropriate

candidates.

7. Increase organizational and individual effectiveness in the short term and long term.

8. Evaluate the effectiveness of various recruiting techniques and sources for all types of job

applicants.

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TYPES OF RECRUITMENT

INTERNAL RECRUITMENT-

Internal recruitment seeks applicants for positions from those who are currently employed.

Internal sources include present employees, employee referrals, former employees and former

applicants.

EXTERNAL RECRUITMENT-

So to the organization are professional or trade associations, advertisements,

employment exchanges, college/university/institute placement services, walk-

ins and write-ins, consultants, contractors, displaced persons, radio and

television, mergers and acquisition.

FACTORS EFFECTING RECRUITMENT-

Internal Factors:

Recruiting Policy

Cost of size

Company’s size

External Factors:

Social factors

Technological factors

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Political factors

INDUCEMENTS

Organizational Inducements are all the positive features and benefits offered by the

organization.

Compensation: Starting salaries, frequency of pay increase, and incentive and fringe

benefits by inducements to potential employees.

Career opportunity: These help the present employees to grow personally and

professionally and also attract the good people to the organization.

Reputation: Factors that affect an organization’s reputation include its general

treatment of employees, the nature and quality of its product and services and its

participation in the organization.

CONSTRAINTS

If a firm has a poor image in the market, many of the prospective candidates not even apply

for vacancies advertised by the firm. If the job in not attractive, qualified people not even

apply. It may felt boring, hazardous, low paying, or lacking in promotion potential seldom will

attract a qualified pool of applicants.Recruiting efforts require money. Sometimes because of

limited resources, organisation may not like to carry on the recruiting efforts for long periods

of time.

RECRUITMENT POLICY

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Recruitment Policy of any organization is derived from the personnel policy of the same

organization .Policy should commit itself to the,organization’s personnel policy like

enriching the organization’s human resources or servicing the community by absorbing the

laid-of employees or temporary employees or dependents of present former employees etc.

The following factors should be taken into the consideration in this Field:-

1. Recruitment Cost

2. Recruitment Sources

3. Personnel Policy

4. Government Policies

5. Selection criteria & preferences

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SOURCES OF RECRUITMENT

a. INTERNAL SOURCE

b. EXTERNAL SOURCE

Internal Sources:-

Persons who are already working in an organization constitute the Internal Source. Retrenched

employees, retired employees, are also constitute the internal sources. Whenever any vacancy

arises, someone from the organization is upgraded, transferred, promoted also.

External Sources:-

This lies outside the organization. The organization provides many-

Employees working in other organization

Students reputed from educational institutions

Candidates forwarded by search firms and contractors

Unsolicited application / walk-ins

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METHODS OF RECRUITMENT

INTERNAL METHODS

Promotion and Transfers:

This is a method of filling vacancies from within through transfers and promotions.A transfer

is a lateral movement within the same grade, from one job to another .It may lead to change

in duties and responsibilities, etc.but not necessarily salary. Promotion, on the other hand,

involves movement of employees from a lower level position to a higher, job Changes in

duty, responsibility, status and value. Organization used to prepare that list in which

vacancies could be filled with the manual jobs. They are kept to fulfil the demand of internal

requirement. If a person remains on such rolls for 240 days or more, he gets the status of a

permanent employee as per the Industrial Disputes Act.

Job Posting:

Job posting is another way of hiring people from within. The organization used to publishes

job opening on bulletin boards, Electronic methods. It gives the chances to highly qualified

applicants working within the company to look for the growth opportunities ,and developing

the upcoming growth.

Employee Referrals:

Employee referral means using personal contact to locate job ,opportunities .It is a

recommendation from a current employee regarding a job applicant. The logic behind the

referral is that ,“It takes one to know one”. The employees who are working in organization

recommend the names of their friends who are working in the other organization for a

possible vacancy.

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EXTERNAL METHODS

Campus Recruitment:

It is a method of recruiting candidates by visiting in the college campuses & their placement

centres. Companies used to visit the, reputed educational institutions such as IITs, IIMs,

colleges &universities to search for job aspirants having technical knowledge.As well as

professional skills also. Preliminary screening test is done within the campus & then selection

process is carried on. Some of the reputed companies like (Reliance, Marti Suzuki, SBI, Citi

bank, Proctor & Cable, HUL) etc.

Some of the companies used to follow some guidelines:-

Come out with a competitive offer

Employ various means to attract candidate.

INDIRECT METHOD

Advertisement:

These include advertisement in, newspapers, professional, technical .Journals, radio and

television etc in recent times, this medium has Became lively and imaginative as consumer

advertising. The ads usedto tell about the brief outline of the job responsibilities, about

the,compensation package, prospects in the organization. This is set when the company is

targeting large group, a fairly good number of talented people.There are common methods

like advertisement,radio,newspaper.

Gate Hiring & Contractors:

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Gate Hiring is the process where employees used to get together on,the factory gate and they

read the notices, how much the services.These are the third party methods like gate hiring,

EmploymentExchanges ,Unsolicited Contractors ,Alternatives to Recruitment etc they will be

provide by the company on daily basis ,word of mouthis also famous now a days.

Unsolicited Applicants /Walk –Ins:

Companies generally receive unsolicited applicants from job seekersat various points of time;

the number of such applicants depends o economic conditions, the image of the company and

the job seekers perception of the types of jobs that must be available.Applications are

generally kept in a data bank and when a suitable vacancy arises; the company would

intimate the candidates to apply through a normal channel.

Private Employment Search Firms:

As search firm is a private employment agency that maintains lists ofqualified applicants

and supplies those to employees willing to hire,people from the list for fee. Firms like ABC

Consultant; Ferguson Associates offers specialized employment- related services to corporate

houses for a fee, especially for top and middle executive.

RECRUITMENT PROCESS

Recruitment Planning: Planning involves to draft a comprehensive job specification for the

vacant positions outlining their major and the minor experience and qualification needed,

grade and level of pay,whether temporary and permanent and mention of special condition,if

any ,to the jobs to be filled.

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Strategy Development : The next step involved is to prepare the strategy for recruiting the

candidates in the organization. The strategicconsideration would include the type of

recruitment method, the geographical area to be considered for the search, source of

recruitment and sequence of activities for recruitment.

Searching: It involves in deciding the internal and external sources.

Screening: It is the next step in the recruitment process. It is done on the basis of

qualification, skills, abilities, interest and experience mention in Job Specification.

Evaluation and Control: Evaluation and control in recruitment is needed as considerable

cost is involved in the process. This includes:

a) Salary of the recruiters.

b) Administrative Expenses

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SELECTION

The size of the labour market, the image of the company, the place of the posting, the nature

of the job, the compensation package and a host of other factory influence the manner of

aspirants are likely to respond to the recruiting efforts of the company. The process of

Recruitment Company tries to locate prospective employees and encourages them to apply

for vacancies at various levels .Recruiting thuds, provides a pool of applicants for Selection.

Definition:

“Selection process or activities typically follow a standard pattern, beginning with an initial

screening interview & complete with the finding of employment decision”.

PURPOSE:

The purpose of Selection is to pick the suitable candidates who should, meet the

company requirement.

To meet the companies’ goal as well as the applicant should be intelligent in terms of

skills, creative, experienced.

The company used to select the “ONE OF THE BEST “candidate from the largest

pool of the candidate.

Effective selection can fulfil the demand and supply of existing organization.

This is the process which is usually a series of hurdles or steps.

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SELECTION PROCESS

Selection is usually a series of hurdles or steps. Each one must be successfully cleared before

the applicants’ proceeds to the next one. The time emphasis place on each step will definitely

vary from one organization to another and indeed, from job to job within the organization.

For example some company may give importance to testing while other emphasis to

interviews and reference checks. In selection process the organization used to follows many

steps .The steps in Selecting Process is as follows:-

SELECTION PROCESS

STEP-1 RESUME / CV’S REVIEW

STEP-2 SCREENING INTERVIEW

STEP-3 APPLICATION FORM

STEP-4 SELECTION TEST

STEP-5 PRELIMINARY INTERVIEW

STEP-6 CORE & DEPARTMENTAL INTERVIEWS

STEP-7 REFERENCE CHECKS

STEP-8 JOB OFFER

STEP-9 MEDICAL EXAMS

STEP-10 PLACEMENT

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VARIOUS STEPS IN SELECTING CANDIDATES

STEPS IN SELECTION PROCESS OF MARUTI UDYOG

LIMITED:-

1-RESUME /CV’S REVIEW-

Under recruitment process, after receipt of resume /CV’s from the candidates they are

scrutinized .scrutiny of resume is the first step of selection process in Marti Udyog India.

Reviews of Resume are done to verify whether the candidates fulfil all the qualifications

essential for the job. The applicants may put forth their conditions regarding salary, duration,

promotion, incentives etc.Those candidates whose conditions are not acceptable to the

organization are not called for preliminary interview and a regret letter is issued to them citing

reasons.

2-SCREENING INTERVIEW-

A preliminary interview is generally planned by large organizations to cut the cost of selection

by allowing only eligible candidates to go through the further stages in the selection.Persoonel

Department may elicit responses from the applicants on important items determining the

suitability of an applicant’s for a job such as age ,education ,experience, pay grade, aptitude

tests ,location ,etc.

3-APPLICATION FORM-

Application Form is one of the most common methods used to collect information on the

various aspects of the applicants’ academic. social, demographic, work related background and

references. The brief history of employee’s backgrounds usually contains following things:

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Personal Data (address, sex, phone number)

Marital Status

Educational Data

Employment Data

Extra –Curricular Activities

4-SELECTION TESTS-

The selection tests or the employment tests that attempts to assess

intelligence ,abilities ,potential ,personality trait ,performance simulation tests including work

sampling and the tests administered at assessment centres and various tests like polygraph

test , graphology and integrity tests are carried out.

Some of the commonly used employment tests are:

a) Psychometric tests

b) Intelligence tests

c) Interest tests

d) Achievement tests

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e) Simulation tests

PSYCOMETRIC TESTS-

Psychometric tests are structured, pencil and paper (or sometimes computer-based) exercises,

often presented in the form of multiple-choice questions. They are designed to assess your

reasoning abilities or how you respond to different situations. The tests that employers use

should have been carefully researched and trailed, to ensure that they provide valid assessments

of the people who are likely to take them.

Why do recruiters use psychometric tests?

Employers use a variety of methods to select the right people, and the greater the variety of

situations in which a selector can see you perform, and the greater the number of skills that are

being tested, the more accurate and objective the assessment should be. Tests are simply one

way of testing the competencies relevant to a specific job, and should ideally be designed with

that type of work in mind.

From an employer's point of view, tests are also a reasonably cost-efficient way of assessing a

large number of applicants; this probably explains why many organizations use them to pre-

select candidates for (comparatively expensive) interviews.

What types of tests are used?

There are two main types of psychometric tests:

Aptitude (ability) tests

Personality Questionnaire

Aptitude (or ability) tests

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These test your logical reasoning or thinking performance; they are not tests of general

knowledge or intelligence. Administered under exam conditions and strictly timed, a typical

test might allow 30 minutes for 30 or more questions.

Often presented in multiple-choice format, the questions have definite right and wrong

answers, and as you go through the test, the questions may become more difficult; you may

find that there are more questions than you can comfortably complete in the time. It does not

matter if you do not finish the test (although you should complete as many questions as

possible); it is the number of correct answers which counts.

The validity of such tests rests on how closely they assess the abilities relevant to that job. A

large number of tests are produced, but the most common ones used in graduate recruitment

are:

Verbal reasoning (tests of reasoning with written information)

Numerical reasoning (tests of reasoning with numbers, charts and graphs)

Diagrammatic or spatial reasoning (test of reasoning with abstract ideas)

Personality questionnaires

Personality questionnaires explore the way you tend to react to, or deal with, different

situations. They are 'self-report' questionnaires (meaning that a profile is drawn up from your

responses to a number of questions or statements) and focus on a variety of personality factors,

such as how you relate to other people, your ability to deal with your own and others' emotions,

your motivations and determination and your general outlook. Unlike aptitude tests there is no

right or wrong answers, and questionnaires are usually completed in your own time. From your

responses the selector gains information about your style of behaviour - how and why you do

things in your own way. You may receive some feedback on the profile which your answers

produce, and occasionally it might form the basis for discussion at a subsequent interview. The

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selectors will not be looking for a rigid 'typical' personality profile, although certain

characteristics may be more or less appropriate for particular jobs or organizations.

Questionnaires exploring your interests or values are much less commonly used in selection.

These are designed to clarify what fields of work interest you or what factors make work

worthwhile for you. You are more likely to come across them in a careers guidance setting, or

in an appraisal/development context once in work.

INTELLIGENCE TESTS-

These are mental ability tests .They measure the incumbent’s learning ability and ability to

understand instructions, make judgement. These tests measure several abilities such as

memory, vocabulary, verbal ability, numerical ability, perception etc. E.g. Stand ford –Binet,

Binet –Simon Test, Wechsler Adult Intelligence Scale are e.g. of standard intelligence tests.

INTEREST TEST-

The objective of this test is to examine the interest in a special work. On the basis of such test it

becomes easy to appoint the candidate on the job of his interest .As a result, applicant gets

maximum job satisfaction & he plays significant role in the success of the organization.

ACHIEVEMENT TESTS-

These tests are held to measure the capacity the efficiency level of applicants. Like a typing test

shows the proficiency, short hand test measures the ability to take dictation .These test are

known as Work Sampling Tests. But this test is not applicable to all levels of the organization.

SIMULATION TESTS-

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This test is an exercise which duplicates many of the activities & problem, an employee’s faces

while at work. These are used when company used to hire managers at various levels in an

orgaanisation.

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GRAPHOLOGY TESTS-

This test involves using a trained evaluator to examine the lines ,loops stokes, curves ,and

flourishes handwriting to assess the person’s personality and emotional make-up. This method

is dependent on the training and expertise of the person doing the analysis.

POLYGRAPH TESTS-

This is also called Lie –Detector Tests .This records physical changes in the body as the tests

subjects’ answers a series of questions. It records the fluctuations in respiration .blood pressure

on a moving roll of graph paper. This proves that the responses recorded by the polygraph

occur only because a lie has been told? But these tests are neither reliable nor valid also.

INTEGRITY TESTS-

These are designed to measure employees honestly to predict those who are more likely to steal

from an employer or otherwise act in a manner unacceptable to the organization. The applicants

who take these tests are expected to answer several ‘yes’ or ‘no ‘type questions.

TESTS AS A SELECTION TOOL-

Tests are useful selection devices in which cover qualifications and talents are detected. Tests

also provide unbiased information that can be put to scientific and statically analysis.

5- PRELIMINARY INTERVIEW-

Preliminary Interview is brief, first round interviews that aim to eliminate the applicants who

are obviously unqualified for the job.

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Interview are generally formal, unstructured and are conducted even before the candidates fill

in the applications blanks.

Informal Interview can be conducted at any place by any person to secure information.

In unstructured interview, the interviewer does not plan the course of interview; instead the

candidate is usually allowed to set the course of the interview.

6-CORE AND DEPARTMENTAL INTERVIEW-

This is the most essential step in the Selection Process. When applicant used to clear all tests

relating to employment he or she is called for core and departmental interviews or final

interview. This interview is held out to check out the candidate’s performance level, presence

of mind, his field of interest, etc. In this step the interviewer matches the information obtained

about the candidates through various means to job requirements .Interview gives recruiter an

opportunity-

To size up the candidate personally.

To make judgements on candidates enthusiasm & intelligence.

To assess the subjective aspects of the candidate-facial expression, appearance nervousness

etc.

TYPES OF INTERVIEW-

PANEL INTERVIEW

PATTERNED INTERVIEW

STRUCTURED OR SITUATIONAL INTERVIEW

APPRAISAL INTERVIEW

STRESS INTERVIEW

NON-DIRECTIVE INTERVIEW

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STEPS IN INTERVIEW PROCESS-

Interview is an art. It demands a positive frame of mind on part of the interviewers.

Interviewers must be treated properly sp as to leave a good impression about the company in

their minds.HR used to identify certain steps to be followed while conducting interviews:-

PREPARATION-

1 Establishing the objective of interview.

2 Receiving the candidate’s application & resume.

3 Keeping test score ready, along with the interview assessment form.

4 Selecting the interview method to be followed.

5 Choosing the panel of experts who would take the interview.

6 Identifying the location which must be healthy.

7 Call him /her when his turns comes.

8 Take him /her to interview’s room ,introduce him /her and place his /her resume.

9-Then the interview begins where the group of panels used to take interview.

10-Interviewer used to ask questions to applicants about his education, personal data,

professional work etc.

11-At last the evaluation is being done on the basis of answers and justification given by the

applicants in the interview.

12-Then in the last applicant, used to wait for the final decision of organization.

7-REFERENCE CHECKS-

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Once the interview and medical examination of the candidate is over, the personnel department

used to check references of the applicant. Candidates are required to give the names of 2-3

references in the application form. These are familiar with the candidate’s academic

achievements .They usually contain job title, job description, pay and allowance ,benefits

provided ,willingness of employees to employ the candidate.

8-JOB OFFER-

Line manager used to offer the job to the best of the best, candidate who is suitable for the job.

There are 3 categories which are as follows-

SELECTED

HOLD

REJECTED

The line manager used to take adequate care in taking the final decision because of economic,

behavioural, and social implication of the selection decisions. After taking the final decision,

the organization has to intimate this decision to the successful as well as unsuccessful

candidates. The organization sends the job offer or appointment letter to the successful

candidate immediately of after sometime depending upon its time schedule.

The organization used to initiate some following instructions-

They were asked to bring the following documents along with them (also given in offer letter):

10 passport size photographs ,2 postcard photograph

Age proof

ID proof

10th & 12th mark sheet

previous work experience certificate

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9-MEDICAL EXAMINATION-

Many organizations have made physical examination mandatory for hiring the candidates.

They used to recruited candidate finally only when, they used to be medically fit.

This clearance of physical examination is mandatory to ensure compliance with the physical

standards mentioned in the job specification & the recruitment policy.

10- PLACEMENT-

Once the candidate accepts the offer and joins ,the organization has to place him in the job for

which he has been selected.

BAARIERS TO EFFECTIVE SELECTION-

PERCEPTION

FAIRNESS

VALIDITY

RELIABILITY

Training and development-

“ Training is the formal and systematic modification of behavior through learning which

occurs as a result of education,instruction,development and planned experience.”

Methods and Techniques of Training

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A amultitude of m ethods of training is used to train employees.Training methods are

categorized into two groups

1-On the job training

2- Off the job training

Devlopement-

Devlopement ia any learning activity ,which is directed towards future,nereds rather than

present needs,and which is concerned motre with career growth than immediate performance.

IMPORTANCE OF TRAINING AND DEVLOPMENT-

The deficiency is caused by a lack of ability rarher than a lack of motivation to ,perform

Supervisors and peers are supportive of the desired behaviours.

The individual involved have the aptitude and motivation need to learn to do the job

better.

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RESEARCH METHODOLOGY

Research Problem: “To comparative Study of Recruitment and Selection process of Marti

Suzuki with Tata Motors.”

Data Source: Primary Data and Secondary Data

Research Methodology: Descriptive Research and Exploratory Research

Research Instrument: Questionnaire

SAMPLING PLAN:-

Population Definition: Employees of Marti and Tata Motors.

Sample Methods: Random Simple Sampling.

Sample Size: This refers to the number of items to be selected from the universe to constitute

a sample. This is a major problem in front of the researcher. The size of sample should

neither be excessively large not too small, it should be optimum. This size of population must

be kept in view for this also limits the sample size .Sample size in this research is 95

employees with Marti 50 and 45 from Tata Motors.

Sampling procedure: Finally the researcher must decide the type of sample that is he must

decide about the technique to be used in selecting items for the sample. In fact, this technique

or procedure stands for the sample design itself. In this we used the random sampling on the

basis of first survey results, which is from 95 respondents.

Data collection:-

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Actually data is of two kinds so researchers should keep in mind both types of data.

Primary Data: Primary data are those, which are collected afresh and for the first time and

this happen to be original in character.

Secondary Data: Secondary data are those data which have already been collected by

someone else and which have already been used as per required.

There are basically two sources to collect secondary data

a) Internally: Provided by the company/organization

b) Externally: Various publication of central, state and local Government.

Books, magazines, newspapers

Internet

After only keeping in mind one can think about what type of data has to be collected during

research as our research is concerned we have to gather primary data from the employees of

the company.

PRIMARY DATA COLLECTION:-

Questionnaires

SECONDARY DATA COLLECTION:-

With the website of Marti Suzuki Limited and Tata Motors.

Employees working in the both company.

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1).Do you agree that through the process of recruitment the organization can get the

right number of people, the right kind of people, at the right time at the right place

doing the right thing?

MARUTI TATA MOTORS

YES 40% 26%

NO 10% 19%

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2) What kind of sources do company prefer for filling up vacancies in the organization?

MARUTI TATA MOTORS

INTERNAL 30% 14%

EXTERNAL 20% 31%

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3) What sources does the company adopts to source the candidate?

MARUTI TATA

MOTORS

EMPLOYEE

REFERRAL

30% 12%

CAMPUS

RECRUITMENT

8% 27%

ADVERTISEMENT 9% 6%

RECRUITMENT

POLICY

3% 5%

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4) What methods of recruitment does both the companies follow?

MARUTI TATA

MOTORS

DIRECT 32% 7%

INDIRECT 10% 6%

THIRD

PARTY

8% 37%

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5) Which kind of test used the organization for process of organization?

MARUTI TATA

MOTORS

WRITTEN 37% 16%

APTITUDE 6% 22%

ONLINE 3% 7%

PSYCHOMETRIC 4% 5%

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6) Do u take any technological support for process of recruiting candidates?

MARUTI TATA

MOTORS

TELEPHONE 8% 22%

VIDEO

CONFERENCING

5% 8%

ONLINE 33% 9%

OTHERS 4% 6%

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7) Do u think that recruitment process are often transparent and fair process in the

organization?

MARUTI TATA

MOTORS

YES 40% 23%

NO 6% 8%

DON’T KNOW 4% 14%

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8) Do company prefer a fair and standard screening process for every employees?

MARUTI TATA

MOTORS

YES 39% 26%

NO 6% 11%

DON’T KNOW 5% 8%

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9) Does company prefer medical examination of employees?

MARUTI TATA

MOTORS

YES 35% 24%

NO 7% 12%

DON’T KNOW 8% 9%

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10) Are u satisfy with recruitment policy in your company?

MARUTI TATA

MOTORS

YES 38% 16%

NO 12% 29%

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FINDINGS

The finding came after survey of both the companies employyes of Marti Suzuki and Tata

Motors was that Marti recruitment and selection process was far better than Tata Motors .

Marti 61% employee were satisfied rather than Tata Motors 39% employees were

satisfied that the company used to recruit right people at ,right time .for the right job

Marti candidates are hire through internal recruitment who are approx 30% and 20%

are unaware about the fact,where as Tata Motors Employees are hired externally

31% .and 14% doesn’t know how the employees are hired.

Marti used to recruit the candidates through employee referral 35% and other sources

are also used ,where as in Tata Motors used to emphasize on campus recruitment

34%.

Marti used direct method 35% ,where as Tata Motors used Third Party Method 45%

to select the employees in the organization.

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Marti used to check the skills of the employee so they used to take written test

36% ,where as Tata Motors used to take Aptitude test 22% while recruiting

employees.

Marti employees used to go through online process 45%,where as Tata Motors

employees go through Telephonic process 30%.

Marti employee are are approx satisfied 40% with the process of recruitment that it

is performed farely,where as Tata Motors employees are less satisfied 30% with this

process.

Yes,Maruti employee say 39% that they are satisfied with selection process but some

are not satisfied ,where as Tata Motors 26% employees are only satisfied with there

organization selection process.

Yes,Maruti all employees have to go through 35% medica;l examination then only

they can be select,where as Tata Motors 23% employees who are highly prefer only

they have to go for medical exams.

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Yes,Maruti 38% employees are satisfied with the recruitment policy,and 12% are not

satisfied so much,where as 16% employees are only satisfied and 29% are not

satisfied with there company recruitment policy.

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CONCLUSION

The Indian Autimobile industry is world class in customer satisfaction, quality, and people

satisfaction. But to sustain its growth and performance, it needs to continue its focus on

processes and people. The industry now needs to focus on employee retention and becoming

more efficient.

Currently attrition rate in this industry is very high with most of them looking for better

careers within the same industry. Better recruitment strategies and tactics could help in

tapping the potential candidates.

While retention is to do with motivation levels in a company, by doing so, the company can

face the challenge of making its hiring decisions wiser in the longer run and by

concentrating on the employability of a candidate rather than the current employment

requirements. For any company recruitment and selection process is an important factor

because a good and ser comparative study of skilled employees can increase the higher rate

of industry.

In this research I,had acknowledged ,after comparative study of both the companies of Marti

and Tata Motors that-

Increase the pool of job candidates at minimum cost.

Help increase the success rate of selection process by reducing the number of

visibly under qualified or overqualified job applicants.

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Help reduce the probability that job applicants, once recruited and selected, will

leave the organization only after a short period of time.

Meet the organization’s legal and social obligations regarding the composition of

its workforce.

Identifying and preparing potential job applicants who will appropriate.

Candidates.

At last, the conclusion aimed that Marti Suzuki recruitment policy is most better than Tata

Motors because of some of the following reasons:-

1).Choose or hire right people, for right job.

2).Internal method was used bu Marti and this method is more better than external because

externally the employees are transfer from one post to another and they are trustworthy .

3).Recruitment policy is done through online processing where the employees and the h.r

manager can interact face to face ,and the company can somehow judge from his /her

personality also.

4). Marti perform written test for there employees to know about there skills,knowledge in

that field.So that he can know about the employees background.

5).Marti employees are most satisfied than Tata Motors employees because they provide

many facilities to there staff .like compensation ,rewards etc,where as Tata Motors employees

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are not satisfied with there organization they usually don”t provide any facilities.

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SUGGESTION

In order to fix the problem of attrition, the company can opt for the following options or

suggestion:

1 By hiring quality talent.

2 By hiring outstation candidates (from small towns) and providing them with shared

accommodation.

3 By ensuring a sense of belongingness to the employee by organizing some sort of

social gathering or celebrating festivals together with the family members included.

4 By giving health insurance facility to make him feel that the company really cares for

its employee’s health.

5 By offering certain discounts to its products for its employees.

6 Employee feedback about his department and the organizational processes can be

taken into consideration.

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LIMITATION OF THE STUDY

Every project faces some limitation; because of this limitation the required and

necessary data to complete the project may not gather in proper manner. The

limitations which we observe were as follows:

With respect to actual population the sample size was too small. This might be effect

the final result.

Limited Time period.

Respondents may have given bias information.

The time limit for the research was one week in every section that was small time to

collect adequate information from both the company employees.

Research can provide number of facts but it does not provide actionable

results.

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A COMPARATIVE STUDY OF RECRUITMENT AND

SELECTION PROCESS OF MARUTI SUZUKI WITH TATA

MOTORS

QUESTIONNAIRE

PERSONAL PROFILE:-

NAME: _______________________________________________

AGE: ____________

18-36--------- 36-54----------- 54-72------------

GENDER: Male ( ) Female ( )

CONTACT NO: ____________________ Email address: - ___________________

1).Do you think that recruitment and selection process is to hire the right people .at the right

time,at the right place.

YES NO

2).What kind of sources does your company used for filling up the employees.

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INTERNAL EXTERNAL

3).What sources your company adopts to source the candidates.

EMPLOYEE CAMPUS RECRUITMENT

REFERRAL

ADVERTISEMENT RECRUITMENT POLICY

4).Which method of recruitment does company follows.

DIRECT INDIRECT

THIRD PARTY

5).Which kind of test used the organization for selecting candidates.

WRITTEN ONLINE

APTITUDE PSYCOMETRIC

6).Do company take any technological support for process of hiring employees.

TELEPHONE VIDEO CONFERENCING

ONLINE OTHERS

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7).Do u think that your company process recruitment criteria fairly and transparently .

YES NO

DON’T KNOW

8). Do company prefer a fair and standard screening process for every employees.

YES NO

DON’T KNOW

9). Does company provide medical examination for every employees.

YES NO

DON’T KNOW

10).Are u satisfy with recruitment and selection process in your company.

YES NO

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ORGANISATIONAL STRUCTURE OF MARUTI SUZUKI

Position Personnel

Chairman Mr Shinzo Nakanishi

Managing

Director

Mr Jagdish Khattar

Senior Joint

Managing

Director

Mr. Tsuneo Kobayashi

Joint Managing

Director

Mr Hirofumi Nagao

Mr Shinichi Takeuchi

Director

(Marketing &

Sales)

Mr. Shuji Oishi

Directors Mr Osamu Suzuki

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Mr. D. S. Brar

Mr. Amal Ganguli

Ms Pallavi Shroff

Mr Manvinder Singh

Banga

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BIBLIOGRAPHY

BOOKS:

1 Dr. C. B. Gupta. HUMAN RESOURCE MANAGEMENT.

2 K.Aswahthappa H.R AND PERSONAL MANAGEMENT

3 Wayne Gcolob & Arengory RESEARCH METHODOLOGY

4 Donal R Cooper BUSINESS RESARCH

WEBSITES:

www.google.com

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www.citehr.com

www.managementparadise.com

www.marutisuzuki.com

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