Maruti Suzuki HR case study ANISH GUPTA Company background Maruti Suzuki India Limited is a subsidiary of the Japanese automobile and motorcycle manufacturer Suzuki motors of japan . Established in 1981 feb under the name of MUL [ maruti udyog ltd ] On march 31 2015 parent company Suzuki held 56.21 percent of MSIL shares In 2007 a new plant was inaugurated in manesar of over 750 acres with capacity pf 550000 units Company was getting the highest ratings of customer satisfaction with all over of 669 billion revenue in fiscal year 2016-2017 INTRODUCTION to the strike This incident took place on july 18 2012 it was an incident which shocked the whole company as well as country . The tradegy involving massive violence at the company’s MANESAR plant . Hr chief was burned alive and many were injured this all happened due to many reasons. In 2014 MSIL top 3 executives where replaced with japanese expatriates in may which worried the indian managers because of control issues There were severe IR tensions at the gurugram plant between the MUEU and MANAGEMENT from oct 2000 to jan 2001 Because of the new policies in gurugram plant the MSIL workers at Gurgaon perceived themselves as privileged the annual salary of a 10 year worker was about 6lakh and under 5 year was 380000 above the average salary Tensions at Manesar plant The main tension started at the manesar plant , MSIL had devised almost all the same HR systems and process . Manesar workers were younger and were not getting same wages and salaries as the old Gurgaon workers were getting also due to the hard working condition the employees the manesar employees began to perceive other IR issues as well . Overall the working conditions were not good for them and they were not happy at all . The workers were allowed to go to the toilet only once in a day in addition only two breaks of 7.5 minutes for lunch tea and everything in whole day . Gradually the workers put up there demands which were denied this all lead to strikes , the workers went on strike three times a during this period Company suffered a lot of loss due to all this of around 20 billion At last company took back most of the workers instead of those 12 key union activists instead they got retired and got rs 1.6 million each which angered the employees and made them feel betrayed An independent union was formed by the workers MSWU which widened the gap between managers and workers , workers of MSWU submitted a list of demands VIOLENCE ON JULY 18 2012 Because of the suspension of jiyalal worker the workers of A and B wing got angry and took a major step by choosing violence and started beating the managers present at that time of the shift A manager was beaten very harshly his legs were broken so , he could not run to safety when the room was on fire , AWANISH KUMAR DEV(who died) After the incident MSIL shares dropped by 8.9 percent and a production loss of 25 billion The ICLR conducted a probe on the incident and concluded that mgt was responsible for the violence Mgt terminated 574 cr workers in which 147 were behind bars NEW STRATEGIC HR INITIATIVES Because of the outbreak company did some searching and now thought of promoting workers sense of ownership with MSIL Plant now employed only temporary workers of 7 months Mixing seniors with youngers Training academy was set up Umbrella mentoring scheme was launched Higher education scheme Better conditions Counselling regarding family issues creating family co. connections Pharmacy was opened Trips to holy places SEISMIC WAVES IN MGT POWER The Manesar union office bearers, who were in jail, applied to the registrar of trade unions to hold union elections, which were held on April 4 2014. The jailed leaders and management39 each fielded a panel of candidates. Surprisingly, eleven of the twelve nominees of the jailed got elected and only one candidate of the mgt sponsored candidate won. But a still more surprising turn of events for management occurred in the Gurgaon plant union elections held 22 days after the Manesar union elections. The Manesar union group also fielded a panel in this election, as it also developed influence on a good number of MSIL’s Gurgaon plant workers. Out of 19 positions, (six office bearers and 13 executive positions), 10 candidates from the Manesar leaders’ panel were elected—five out of six office bearers and five out of 13 executive members. The union election result was the biggest shock to management. It wondered whether Gurgaon workers would support Manesar workers’ demands that the terminated workers be reinstated. Toshiaki hasuike joint managing director and toshio ozawa HR advisor monitored the results and looked deep into manesar acts and took executive power of three of its COO’s and then Suzuki the parent company was taking greater responsibility of plant A new advancement took place the national democratic alliance was formed after the may 2014 elections Another incident took place on 25 September 2015 the workers striked for wages indifference later it was increased by 10 percent The verdict of the sessions court that tried the 147 workers was a long time in coming, but on March 10, 2017 it convicted 31 of them—13 for murder and 18 for rioting. All the 13 who were convicted for murder were given a sentence of life imprisonment—twelve of these were Manesar union leaders when the July 18 violence took place. Of those convicted for rioting, four were given five-year imprisonment and the remaining 14 were let off with what they had already served the trial . ENDING.... At last this incident in my views would never took place but this incident was reportedly triggered by a disciplinary issue with an employee . The unions called for his reinstatement immediately , besides making several other demands , including same salary for contract workers as permanent employees , which were not headed to by the management Coordination and understanding between employees and higher management was not at all present also the working conditions were really bad and in humane Only if all these small factors was to be looked carefully none of this would have happened
