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 its 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.

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.

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-tomarket 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 .

Marti Suzuki has employee strength over 7,600 (as at end March 2010),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, Marti Suzuki had a market share of 53.3 per cent of the Indian

passenger car market (including C segment). Marti Suzuki's revenue has grown consistently
over the years.
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).

HISTORY OF COMPANY
Marti Suzuki Udyog Limited is the Indias 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 countrys 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
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
9

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.

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
10

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.

11

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/

MARUTI SUZUKI COMPANY PROFILE

12

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.

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
13

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

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.

14

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 Companys 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
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
15

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.

16

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 technologiespartly
guided by environmental legislationin 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.

17

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

18

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 PlayersBajaj 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.

19

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 Associations (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

20

MISSION & VISION

MISSIONMission is the statement of an organizations 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.

Vision21

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 Suzukis participation ensures not only need of the profit,
but of the need of maximum profit. The only way for this Noras dilemma of selecting
principals for companys 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

pride

of

India

Customer Delight is making sure that performance, after sales service and customer
support are best and beyond expectation. Shareholders 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 companys brand line: COUNT ON US!

MARUTI MANUFACTURING EXCEELENCE

22

23

PRODUCTION, LEAN MANUFACTURING &

FACILITIES
Automotive Mission Plan 2006-2016
Prime Minister Dr. Manmohan Singh released Indias Automotive Mission Plan (AMP) 20062016, which envisions Indias 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 Indias 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 threewheelers, 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 Governments emphasis on
low emission fuel auto technologies and availability of appropriate auto fuels and

24

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 2007March 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 Indias 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. Indias growing middle class, strong economy (although

25

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 FORAYThe 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
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

26

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
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.
27

(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

28

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 Bsegment car Getz, sometime in 2003.

29

HYUNDAIS 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 Marutis 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

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
30

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.

TATAS 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 pricepoints 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
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

31

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 its 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.

32

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.
33

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
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

34

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.

35

FINANCIAL ANALYSIS OF COMPANY

Business and Financial Metrics

36

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)
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

37

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.

38

39

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

companys

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
evaluating the effectiveness of internal controls over financial reporting. The initiative further
reinforces the commitment of the Company to adopt best corporate governance practices.
40

41

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 June10, the balance sheet size of the Company was Rs. 183.98 bn as
compared to Rs 150.96 bn as on 31st March08. Net of vehicle financing loans and
receivables the Companys capital employed was Rs 178.33 bn as on 30th June08
against Rs.135.76 bn as on 31st March08.

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 March09. The Companys Net Debt (Net of the surplus
investible funds) stood at Rs 89.3 bn as on 30th June10. As on 30th June10, the
Companys 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
Shares / ADSs. There have been no conversions of the other FCCNs issued by the
Company.

42

43

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

PURPOSE AND IMPORTANCE

The purpose of recruitment is to provide a pool of potentially qualified job candidates.
Specifically the purposes are to:

44

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 organizations 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.

TYPES OF RECRUITMENT
I NT E RN AL

RECRUITMENT-

45

Internal recruitment seeks applicants for positions from those who are currently employed.
Internal sources include present employees, employee referrals, former employees and former
applicants.
E XT E R NAL R E C R U I T M E N T So to the organization are professional or trade associations, advertisements,
employment exchanges, college/university/institute placement services, walkins and write-ins, consultants, contractors, displaced persons, radio and
television, mergers and acquisition.
FACTORS EFFECTING RECRUITMENTInternal Factors:
Recruiting Policy
Cost of size
Companys size

External Factors:

Social factors
Technological factors
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.

46

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 organizations 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
Recruitment Policy of any organization is derived from the personnel policy of the same
organization .Policy should commit itself to the,organizations personnel policy like enriching
the organizations 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

47

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

48

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.

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

49

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:

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:
50

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.
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

51

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.

52

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 / CVS 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
VARIOUS STEPS IN SELECTING CANDIDATES

STEPS IN SELECTION PROCESS OF MARUTI UDYOG

LIMITED:53

1-RESUME /CVS REVIEWUnder recruitment process, after receipt of resume /CVs 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 INTERVIEWA 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 applicants for a job such as age ,education ,experience, pay grade, aptitude
tests ,location ,etc.
3-APPLICATION FORMApplication 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 employees backgrounds usually contains following things:

Personal Data (address, sex, phone number)

Marital Status

Educational Data

Employment Data

Extra Curricular Activities

54

4-SELECTION TESTSThe 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

e)

Simulation tests

PSYCOMETRIC TESTSPsychometric 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.

55

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 preselect 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
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

56

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
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 TESTSThese are mental ability tests .They measure the incumbents 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 TESTThe 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.
57

ACHIEVEMENT TESTSThese 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 TESTSThis test is an exercise which duplicates many of the activities & problem, an employees faces
while at work. These are used when company used to hire managers at various levels in an
orgaanisation.

58

GRAPHOLOGY TESTSThis test involves using a trained evaluator to examine the lines ,loops stokes, curves ,and
flourishes handwriting to assess the persons personality and emotional make-up. This method
is dependent on the training and expertise of the person doing the analysis.
POLYGRAPH TESTSThis 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 TESTSThese 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 TOOLTests 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.

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.

59

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 INTERVIEWThis 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 candidates 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

STEPS IN INTERVIEW PROCESSInterview 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:-

60

PREPARATION1
2
3
4
5
6
7
8

Establishing the objective of interview.

Receiving the candidates application & resume.
Keeping test score ready, along with the interview assessment form.
Selecting the interview method to be followed.
Choosing the panel of experts who would take the interview.
Identifying the location which must be healthy.
Call him /her when his turns comes.
Take him /her to interviews 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 CHECKSOnce 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 candidates academic
achievements .They usually contain job title, job description, pay and allowance ,benefits
provided ,willingness of employees to employ the candidate.
8-JOB OFFERLine 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 followsSELECTED

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-

61

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

62

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- PLACEMENTOnce 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

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

DevlopementDevlopement 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.

63

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.

64

65

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:Actually data is of two kinds so researchers should keep in mind both types of data.
66

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.

67

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?
68

MARUTI

TATA MOTORS

YES

40%

26%

NO

10%

19%

40%
35%
30%
25%

YES

20%

NO

15%
10%
5%
0%
MARUTI

69

TATA

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

INTERNAL
EXTERNAL

MARUTI

TATA MOTORS

30%
20%

14%
31%

INTERNAL

EXTERNAL

0.31
0.3

0.2

0.14

MARUTI
TATA

70

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

MARUTI

TATA

EMPLOYEE

30%

MOTORS
12%

REFERRAL
CAMPUS

8%

27%

RECRUITMENT
ADVERTISEMENT

9%

6%

RECRUITMENT

3%

5%

POLICY

30%
25%
20%
15%
10%

MARUTI

5%

TATA

0%

TATA
MARUTI

71

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

MARUTI

TATA

DIRECT

32%

MOTORS
7%

INDIRECT

10%

6%

THIRD

8%

37%

PARTY

40%
35%
30%
25%

DIRECT

20%

INDIRECT

15%

THIRD PARTY

10%
5%
0%
MARUTI

TATA

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

72

MARUTI

TATA

WRITTEN

37%

MOTORS
16%

APTITUDE

6%

22%

ONLINE

3%

7%

PSYCHOMETRIC

4%

5%

40%
35%
30%
25%
MARUTI

20%

TATA

15%
10%
5%
0%
WRITTEN

APTITUDE

73

ONLINE PCYCHOMETRIC

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

MARUTI

TATA

TELEPHONE

8%

MOTORS
22%

VIDEO

5%

8%

CONFERENCING
ONLINE

33%

9%

OTHERS

4%

6%

35%
30%
25%
20%
15%

MARUTI

10%

TATA

5%
0%

74

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

MARUTI

TATA

YES

40%

MOTORS
23%

NO

6%

8%

DONT KNOW

4%

14%

45%
40%
35%
30%
25%

YES

20%

NO
DON'T KNOW

15%
10%
5%
0%
MARUTI

TATA

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

75

MARUTI

TATA MOTORS

YES

39%

26%

NO

6%

11%

5%

8%

DONT KNOW

40%
35%
30%
25%
MARUTI

20%

TATA

15%
10%
5%
0%
YES

NO

DON

T KNOW"

9) Does company prefer medical examination of employees?

MARUTI

TATA

YES

35%

MOTORS
24%

NO

7%

12%

DONT KNOW

8%

9%

76

70%
60%
50%
40%
TATA
30%

MARUTI

20%
10%
0%
YES

NO

DON

T KNOW"

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

MARUTI

TATA MOTORS

YES

38%

16%

NO

12%

29%

77

50%
40%
30%
20%
10%
0%

MARUTI

78

TATA

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% doesnt 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.
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%.

79

 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.

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.

80

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.

81

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.

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

leave the organization only after a short period of time.

Meet the organizations 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
are not satisfied with there organization they usually dont provide any facilities.

82

SUGGESTION

In order to fix the problem of attrition, the company can opt for the following options or
suggestion:
1

By hiring quality talent.

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

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

83

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 employees health.

By offering certain discounts to its products for its employees.

Employee feedback about his department and the organizational processes can be
taken into consideration.

84

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:

85

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.

86

A COMPARATIVE STUDY OF RECRUITMENT AND

SELECTION PROCESS OF MARUTI SUZUKI WITH TATA
MOTORS
QUESTIONNAIRE
PERSONAL PROFILE:NAME: _______________________________________________
AGE: ____________
87

18-36---------

36-54-----------

GENDER:

Male

54-72------------

( )

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.

INTERNAL

EXTERNAL

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

EMPLOYEE
REFERRAL
ADVERTISEMENT

CAMPUS RECRUITMENT
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

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

NO
88

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

NO

DONT KNOW
9). Does company provide medical examination for every employees.
YES

NO

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

NO

89

ORGANISATIONAL STRUCTURE OF MARUTI SUZUKI

Position

Personnel

Chairman

Mr Shinzo Nakanishi

Managing

Mr Jagdish Khattar

Director
Senior Joint

Mr. Tsuneo Kobayashi

Managing

90

Director
Joint Managing

Mr Hirofumi Nagao
Mr Shinichi Takeuchi

Director
Director

Mr. Shuji Oishi

(Marketing &
Sales)
Directors

Mr Osamu Suzuki
Mr. D. S. Brar
Mr. Amal Ganguli
Ms Pallavi Shroff
Mr Manvinder Singh
Banga

91

BIBLIOGRAPHY
BOOKS:
1 Dr. C. B. Gupta. HUMAN RESOURCE MANAGEMENT.
2 K.Aswahthappa H.R AND PERSONAL MANAGEMENT
1 Wayne Gcolob & Arengory RESEARCH METHODOLOGY
2 Donal R Cooper BUSINESS RESARCH

WEBSITES:
www.google.com

www.citehr.com
www.managementparadise.com

www.marutisuzuki.com

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