Human Resources of Maruti Suzuki India Limited - Case Study Example

Strategic Human Resources Management Name Course Lecturer Institution Date Table of Contents Table of Contents 2 Executive summary 3 Problem statement 4 Data Analysis 4 Recommendation 6 Conclusion 8 References 10 Executive summary Management is yet the most important factor in the development and growth of any company. The global market is fraught with thorough competition and economic wind falls. Proper and effective management can, therefore, ensure that there are efficient and appropriate approaches towards the tackling of the stated problems. Well managed organizations tend to survive the shortfalls that arise out of the tough economic complications. The human resources department is tasked with formulating the appropriate strategies to counter the challenges that arise from the business operation. The Maruti Suzuki India Limited gives a deeper insight as to how some of the challenges that arise from the business operations can be encountered. Management Problem statement The human resource is tasked with adding value to the needs of accompany. The HR professionals contribute to key roles in staffing, succession plans and management of other important activities. The Maruti Suzuki Company for a long time overlooked the challenge of developing a new market which turned to haunt its operation by the year 2000. For a very long time, its human resource with the assistance of sales management emphasized the belief that its products did not have completion in India. The company had a great competitive advantage over its rivals in as far as the supply of automobiles in Asian countries was concerned. The lack of foresight in dealing with future competition was overtaken by the focus on maximizing profit on the current available market scope. Strategic human resource approach had to be initiated later on to arrest the loss of the market share to the new arrivals in the market (Nayak, 2005). Such human resources reforms included the new planning and staffing trend to bring on board competent team, leveraging technology to marry with the modern trend of motor vehicle manufacture to widen its market and due diligence to minimize the extent of risk exposure to MSIL. Data Analysis For a business to stay competitive in the market, it ought to seek several ways by which it shall be able to identify its core competencies and handle them. The case of MSIL dates back to 1981 when it enjoyed over 55% of the total market share of the motor vehicle supply in India. At that moment in time, operating like a monopoly, it never realizes the need for strategies to counter any form of competition that would arise thereafter. Competition in the business field of operation can, however, foster the result of innovation and change of business culture so as to accommodate some of the new trending modes of running business. The operational changes that arise from the business field as a measure to incorporate cultural changes should facilitate sustenanceof the standard and quality product of good (Schuler & Jackson, 2008). The employees should not be negatively impacted in any way, but rather motivated to understand and support the course of change. In the year 2003, due to the established and sustained loss of clients to the new entrants to the field of operation, MSIL changed its strategy from being a government business to privately owned business (Nayak, 2005). The bold step of privatization aimed at ensuring that the company gains the ability to compete effectively with its competitors, both at the price front and the quality products. Private business entities are found to offer better products as compared to public or government run businesses. The push to effect the change of the company’s business type was aimed at improvingthe company’s role and position in a fully competitive business environment. The company had shifted from being the price maker to the price taker. It no-longer set the standards for new vehicles in India, but rather had to adapt to the new global standards set by the private entrants in the field. The changes in the organization culture ensure that some drastic measures are taken in regards to how the employees are treated. For instance, initially the employees were employed at the will of the government. Competency becamethe distinguishing factor for the employment threshold (Huselid & Becker, 2010). The new changes also resulted in a change in the way promotion were award, on basis of merit rather than by the mercy of the government operatives. These measures and strategies are a way by which a company can be well placed to conquer the competition from its fiercest rivals in the market. The government owned companies are not growth-oriented as in the case of the MSIL. As such, there were heavy taxes imposed on theimported technologies which were otherwise aimed at improving the quality of automobile service that was being offered initially. Business is also supposed to be customer focused. Unlike its new competitors which were solely focused on giving quality service to their customers, the MSIL was relaxed on its comfort of monopoly. In the journal written by Nayak (2005).The shift from the government management to private management was wholly designed to ensure that there was customer focus and even the penetration of new markets with greater vigor. The company targeted customer satisfaction as one of its key priority. The company changed its operation from being a service centre to service provider. The company would at times send its staff to customer houses to help them with solving of the problems accordingly. Incorporation of new technologies as well was designed to assist with the reach of a wider scope of potential market which had initially been sidelined (Huselid & Becker, 2010). Recommendation The change of organization culture is the best way to prepare for the competitive nature of business. Competition when not anticipated can throw any business, whether established or not, off the balance. So as to conform to the arrival of new business is so as to enable the business to live to its full potential. According to Çalişkan (2010), the organization culture entails the change of some of the practices that a company or general business in known for. In the case of MSOL, the liberalization of the market opened the floodgate for the entry of new firms into the automobile field. The new entrants led to the loss of some of the privileges that the company had initially enjoyed at the expense of the local industries. The previous norms of import of technology that it had been accustomed to as well as the foreign investment had to be adjusted accordingly. As recorded by Ford & Håkansson (2013), organization culture can also be changed so as to developnew products and introduce them into the market so as to attract the new market that is being targeted. In the year 1988 to 2001, the MSIL Company launched five new products so as to penetrate the new market that it had initially left unexplored. The culture of production can be changed to ensure that the business withstands the competition that is brought its way by the new entrants in the business. The launch of new product involving new technology helps with then expansion of the business.The new technological products may also help the business to push out some of the new competitors who may not be able to match the technological standards (Shafritz, Ott & Jang 2015). Some of the very well established companies have to incur some of the costs of business that comes with changes in the market nature (Çalişkan, 2010). In the case of MSIL in India, it initially operated as a monopolist, but in the end the introduction of aliberal market led to perfect completion by the new global companies. The company, with the assistance of the human resource department had to make very hard but effective strategic plans so as to live up to this competition. The shift from a government owned and operated company to a private company was as a result of the new situation of the company. The plan was very effective s the company began operating as a private company which helped with the enhancement of its operation of the company in India and even to reach a wider area of the market. The perception of organization culture could occur on the day of joining the organization, and thereafter through the socialization process as may be determined by the relevant human resources department. Initially, the joining experience in the MSIL was unwelcoming, mechanical and very mechanical. This had to be changed accordingly through very conscious efforts to bring about the new organizational culture change. The human resource department brought about new welcoming notes at the entrance, and welcoming team to ensure that the employees feel in the right place. The human resource department organized for orientation program was organized to ensure that there is full matching with the expectations that are expected of the employees. The change of atmosphere for the joining employees’ was to ensure that the entire staff read from the same script of service delivery as well as the desire to foster innovation through free environment (Ford & Håkansson (2013). The MSIL had a drastic communication change between the years 2003 to 2008. The communication change was attributed to the leadership and management changes and determination (Çalişkan, 2010). Initially, the there was no free communication between the divisional heads and their subordinates. The change in the communication culture was geared to ensure that the employees were free toshare any information concerning product improvement that they would contribute to the organization. Conclusion It is important that companies take the necessary plans in the right time to enable them counter the competition that come from rivals that may push them out of the market in the long run. It should be ensured that necessary organizational changes are brought by the relevant human resource to encourage employee awareness and participation (Shafritz, Ott & Jang 2015). References Çalişkan, E. N. 2010. The impact of strategic human resource management on organizational performance.Journal of Naval science and engineering, 6(2), 100-116. Ford, D., & Håkansson, H. 2013. Competition in business networks.Industrial Marketing Management, 42(7), 1017-1024. Huselid, M. A., & Becker, B. E. 2010.Bridging micro and macro domains: Workforce differentiation and strategic human resource management.Journal of Management. Nayak, A. K. 2005. FDI model in emerging economies: Case of Suzuki Motor Corporation in India. Journal of American Academy of Business, 6(1), 238-245. Schuler, R. S., & Jackson, S. E. 2008.Strategic human resource management.John Wiley & Sons. Shafritz, J., Ott, J., & Jang, Y. 2015. Classics of organization theory.Cengage Learning. Read More