MANUFACTURING INDUSTRY

End term presentation

What is manufacturing companies?

A manufacturing business is any business that uses components, parts or raw materials to
make a finished good. These finished goods can be sold directly to consumers or to other
manufacturing businesses that use them for making a different product. Manufacturing
businesses in today's world are normally comprised of machines, robots, computers and
humans that all work in a specific manner to create a product.

Manufacturing plants often use an assembly line, which is a process where a product is put
together in sequence from one work station to the next. By moving the product down an
assembly line, the finished good can be put together quicker with less manual labor. It's
important to note that some industries refer to the manufacturing process as fabrication.

HR functions in manufacturing companies:

The HRD function in the manufacturing industries is often concerned with payroll,
administrative work and mediating between the management and the workers. Mostly, the
manufacturing companies lean on the HRD function in times of labor unrest and strikes. On
the other hand, the HRD function is pivotal to the success of the service sector companies as
they are seen as enabling and empowering the employees in the services sector.

The point here is that in the service sector companies, the HRD function plays a more
important role as the chief sources of competitive advantage in these companies are the
human resources. In the services sector like the financial and technology companies, the
brand value is measured according to the level of intellectual capital which is a derivative of
the contribution of the human resources in the company.

Companies:

1. Eicher motor ltd

2. Maruti Suzuki ltd
3. Mahindra & Mahindra
Eicher group of companies HRD functions

Introduction:
Eicher Motors Limited (EML) is the flagship company of the Eicher Group, which was a
catalyst in the green revolution in India with the production of India’s first agricultural tractor
in 1959. EML is now a leading player in the Indian automotive space. Eicher Motors owns the
iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in
India. The oldest motorcycle brand in continuous production world-wide, Royal Enfield has
witnessed a huge surge in demand in the recent past and is charting its course to be the leading
player in the mid-sized motorcycle segment globally. EML’s joint venture with the Volvo
group, VE Commercial Vehicles Limited, designs, manufactures and markets reliable, fuel-
efficient trucks and buses; and is leading the path in driving modernization in commercial
transportation in India and other developing markets. EML’s joint venture with US based
Polaris Industries Inc formed in 2012, Eicher Polaris Private Ltd. (EPPL) launched the Multix,
a new 3-in-1 vehicle purpose built for the independent businessman in June 2015.

Hierarchy:
1. GM - DGM - Senior Manager - Manager - Deputy manager - Asst. manager -
Supervisor.
2. Grades - 1 to 7

Employee strength:

 Total strength: 3700

 Executives:444
 Staff:1567
  Workmen:1695

Human resource development is the use of integrated training, organisation, and career
development efforts to develop individual, group and organisational effectiveness. HRD
develops the key competencies that enable individuals in organisations to perform current and
future jobs through planned learning activities. Groups with in organisation use HRD to
initiate and manage change.

Evolution of HRD in Eicher:

 Creation of Role Model by Top Executives of the company.

 Sensitive to HRD
 Emphasis on Development of Employees
 Free culture across the company
 Concept of just Management
 Believe in Professionalism and Quality product.
 Believe in people.

HRD Activities

 Training
 Total Quality Management
 Performance Appraisal
 Emphasis on Potential development
 Counselling & Feedback
 Communication Interpersonal Relation
 Decision Making, Team work and Recognition
 Role of Top Management

Training

Types of Training :

 Behavioural Training - for all level

 Functional Training - for all level
 Potential Related Training - for all level
 Multi-Skill Training - workmen & Jr. staff
 Training for Dealers - to deal with customers
  Training Schools - Skill development
 International Exposure - Sr. Level Executives to establish TQM

Concept of TQM came to Eicher in 1989 with the following understandings

 Machine can not do miracle, system & software are of equal importance.
 Role of human resources are of paramount importance to derive the best out of
Machines
 In 1989 to Popularize the concept of TQM an experienced Faculty invited to train the
People and later on appointed as adviser to the Chairman.

Motive of Implementation of TQM

 Quest for excellence in Quality - Supported by all level

 Need for Sustained growth - Worker & Jr. Staff
 Need to be competitive - Sr. Staff
 Decision & Initiatives of Top management – Executives

Meaning of TQM in Eicher

 Customer Delight
 Teamwork & Participation
 Continuous Improvement - “Kaizen”
 Quality Consciousness

Performance Appraisal - An Overview

Executives:

 Reviewed by Career Development Groups (CDG)

 Under Annual Development Review (ADR) Process

Features of Present Appraisal System for Executives:

 Customer Orientation
 Expectations of internal & external Customers

Review will be based on the job and off the job development requirement.

 Emphasis on Potential development

 Acceptances of more responsibilities
  Individual Potentiality

Non-Executives:

6 Points Rating Factors:

 Sincerity and Willing to work

 Intelligence and Grasping power
 Knowledge
 Presentation & Clarity of expression
 Dynamism, Association, Attendance & Initiative
 Discipline

Counseling & Feedback

 Based on Carl Roger’s Model of Person Centered Approach

 Personal Improvement will be paramount importance
 Appreciation of Counseling approach in the development process
 Developing an understanding of the core conditions / Philosophy of the counseling
process.
 Exploring one’s Style in counseling and its impact.

Communication & Interpersonal Relations

Communication has given top priority in Eicher

-Improvement on Communication done through:

 Meetings
 Workshops & Training Programs
 Brain Storming Session
 Presentation
 Media - In house journals “Footsteps”

Decision Making, Team work and recognition

 Persistent effort by Management to improve Team work

 People are trained as Team leader and facilitator
Manifestation of Team work:
 Understanding the goals of employees
  Contribution to new ideas
 Maintaining Transparency
 Average 70% of employees appreciate the work culture and treatment of the
employees in Eicher.

Role of top Management

 Achieve excellence in Quality

 Delegation of Authority and Responsibility
 Developing Ownership among the employees.
 Involvement and commitment of development of employees.
 Freedom to take initiative

Eicher - a learning Source

 Believes about people are shared by all levels of Managerial hierarchy
 CEO was seen as a Role Model
 Personal Practices are development oriented
 Employees are serious about training
 Authentic communication and consultation helped to develop positive outlook
Introduction
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India. It is a 56.21%-owned subsidiary of the Japanese car and motorcycle
manufacturer Suzuki Motor Corporation. As of January 2017, it had a market share of 51% of
the Indian passenger car market. Maruti Suzuki manufactures and sells popular cars such as
the Ciaz, Ertiga, Wagon R, Alto, Swift, Celerio, Swift Dzire, Baleno and Baleno RS, Omni,
Alto 800, SX4, Eeco, Ignis. The company is headquartered at New Delhi. In February 2012,
the company sold its ten millionth vehicle in India.

Maruti was established in February 1981 through the actual production commenced only in
1983. It started with the Maruti 800, based on the Suzuki Alto kei car. As of May 2007, the
Government of India, through Ministry of Disinvestment, sold its complete share to Indian
financial institutions and no longer has any stake in Maruti Udyog.

HR Vision
Lead and Facilitate continuous change towards organizational excellence, create a learning and
vibrant organization with high sense of pride amongst its members.

HR Initiative
Prepare MSIL Strategic Business Plan to achieve the Vision and Goal
Improve the performance Appraisal system -its process, skill and usage
Improvements in internal and external Training and its effective utilization.
Systematic career planning; Job Rotation; Job enrichment
Periodic communication meeting at various levels; Roll out of Vision
Retention of Talent

Recruitment Process
The process of Recruitment based on two categories
1. Based on Freshers
They recruit fresh Graduates from premier T-Schools and B-Schools across the country in
order to build their future leadership talent pipeline.
 At MSIL, they give opportunities for learning and growth through hands-on experience
and rigorous training sessions.
 The young talent undergoes a structured induction, buddy and umbrella mentoring
sessions, periodic management inputs and cross functional exposure.
 With their exciting career paths coupled with hard work and dedication from your end,
they believe that person will keep on creating success stories in MSIL.
2. Based on Experienced People
For the last three decades, they have established themselves as the Market Leader in
Automobile sector in India. So, they mainly focus on those who are having Knowledge and
expertise in different areas to strengthen the business pillars and explore new horizons with
MSIL. They call the applicants, who are excellent performers for constant improvement have
intense desire to be a member of the organization and its success with a constant yearn to learn
are star performers, put in extra effort and are committed to engage in work that contributes to
business success.
Selection Process
It is the process of searching the potential candidate. It is negative in nature in the Indian
context. But it is positive in the US context.
Steps in Selection Process of MSIL Ltd.
Selection process consists of a series of steps, at each stage, the rejection of the applicant can
have done. It contains a series of successive hurdles or barriers which an applicant must cross.
These hurdles or screens are designed to eliminate an unqualified candidate at any point in the
selection process There is no standards selection procedure to be used in all organizations or
for all jobs. The complexity of selection procedures increases with the level and responsibility
of the position to be filled.
 Preliminary Interview
 Application Form
 Selection Test
 Employment Interview
 Medical Examination
 Reference Checks
 Final Approval
  Employment
 Induction
 Evaluation

Training and Development

Maruti have invested about Rs 13 crore in their training program recently they took a decision
to establish a world class Maruti training centre which might come up on a 6-8-acre plot. This
kind of infrastructure will operate in decentralized manner. It will have a residential facility,
an e learning facility and will look at the perspective of developing their own technician level
guys for which campus recruitment takes place. Maruti arranges training at several intervals.
The training is mandatory for all the employees. The training schedule is maintained by the Hr
manager.
Training and Development is a subsystem of an organization. It ensures that randomness is
reduced and learning, or behavioural change takes place in structured format. It uses two
approaches for training and development
1) Traditional Approach – Most of the organizations before never used to believe in training.
They are holding the traditional view that managers are born and not made. There are also
some views that training is a very costly affair and not worth. Organizations used to believe
more in executive pinching. But now the scenario seems to be changing.
2) Modern Approach - The modern approach of training and development is that Indian
Organizations have realized the importance of corporate training. Training is now
considered as more of retention tool than a cost. The training system in Indian Industry has
been changed to create a smarter workforce and yield the best results
Importance of Training
 Optimum utilization of resources
 Development of human resources
 Development of skills of employees
 Productivity
 Team spirit
 Organization culture
 Quality
 Health and safety
Training and Development aids in organizational development. Organization gets more
effective in decision making and problem solving. It helps in understanding and carrying out
organizational policies. Training and Development helps in developing leadership, motivation,
loyalty, better attitude, and other aspect that workers and managers usually display.

Training Process of sales Executives

 Induction aims to provide an understanding of the industry, MSIL, Its policies and products.
 Product Programme imparts complete knowledge on MSIL and its competitors. Various
programs are Segment A1, Segment A3.
 Selling Skills enables understand customer’s needs, sales processes etc and enables apply
learning in actual selling.
 Customer Care appositive attitude and the ability to move is a pre-requisite for excellent
performance in any world. Program aims at helping one to build a positive attitude and
interpersonal skills and to enable better customer handling.

Training Process of Sales Manager

 Dealership Management Program: For second generation dealers, and GM’s and Ro
executives on how to manage entire Dealership Operations. Financial Management,
staff management, motivation, tie management planning is covered.
 Sales Managers/Team Leaders Program: The Training covers issues like Sales
management (target setting and achievement, enquiry management, resource and time
management etc), Supervisory skills, Practical Coaching skills, knowledge of Maruti
Finance, Maruti Insurance Extended warranty, MGA, True value etc and car advisor
for life concept.
 Branch managers Program: many of the dealers have MSILtiple outlets. While the
owners sit any one outlet and control the others from there, different branch heads that
managers the day to day operations of the outlet manages the other outlets.

Performance Appraisal

 MSIL to change gear on performance appraisal to make 100% link between pay,
productivity renewing its efforts at cutting costs and improving productivity.
 MSIL has drawn up a new human resources policy, which for the first time, entirely
links performance to pay packets for all its executives and managers.
 MSIL has traditionally had a performance-based component of about 30 percent in its
compensation package for its executives, but now it has gone the whole hog and decided
that in addition to the hike in individual perquisites, increments to even the basic salary
will now depend on the employee’s performance during the year.
 The new performance appraisal and compensation system is likely to affect over 1,000
employees -- executives and senior and middle level managers.
 MSIL has also drawn up a voluntary retirement scheme (VRS) for its employees. The
VRS programme received in-principle approval from the board. While the VRS
proposal is yet to be formally notified and offered to the company's employees, it is
expected to apply equally to all the staff members, including the shop floor workers,
company sources said.
Introduction:
Mahindra and Mahindra Limited (M&M) is an Indian multinational car manufacturing
corporation headquartered in Mumbai, Maharashtra, India. It is one of the largest vehicle
manufacturers by production in India and the largest manufacturer of tractors in the world. It
is a part of Mahindra Group, an Indian conglomerate. It has an operational presence in over
100 countries and employ more than 200,000 people. Mr. Anand G. Mahindra is Executive
chairman and Dr. Pawan Goenka is Managing Director of the company.

Recruitment
 In this company recruitment is done basically through referral 85 % and walk-ins15 %
 For walk-ins the advertisement is done in some websites, job portals and other local
newspaper
 Minimum recruitment criteria for sales manager is degree and good communication
skills
 In case of service staff diploma is a must for qualifying other departments like
accounting, human resource BBM or B. Com with good financial knowledge
 recruitment done whenever needed or when there are vacancies and not yearly
 Easy to attract new employees because it is ranked in one among the 25 best companies
to work for in India.

Selection
 First round will be conducted the HR of the company, they will check for the
capabilities, eligibility and required skills in a candidate.
 Next it goes to sales manager here the candidate will be evaluated by conduct interview,
written test about knowledge of the automotive industry
 Then it goes to head of sales he will check the communication skill and also how long
can the candidate work in the company and he will assesses what candidate can do for
the company
  After that he will be going back to the HR manager for the background checks and
conformation.
 After all the background checks are done the candidate may recruit.

Training
 In the beginning company gives training all the new employee of Mahindra and
Mahindra.
 After the initial training is done trainers from Mahindra and Mahindra come and train
the new models and services of company.
 Every month there will be trainers from inside company who will come to other
branches to evaluating the skill, if required additional training is given to the
underperforming employee.

Incentives
 Incentives is given to the employee who achieve the target kill ratio set by the company
 Extra bonus will be given to the employees who exceed the kill ratio standard set by
the company.
 Star performance of the month is rewarded accordingly for the competition held
monthly.
 The person with the highest stat performance in a year is rewarded at the end of the
financial year at the headquarters of Mahindra in Mumbai.
 The compensation package includes basic pay, house rent allowance dearness
allowance insurance etc. are provided by the company as standard for all the working
classes.

Performance appraisal
 It will be calculated by method know as sales kill ratio (example: there will be 100 walk
ins out of which how much will be converted into sales. if kill ratio is 40%then it is
thought as good performance).
 He will be given incentives if the kill ratio exceeds 40% and if it is below 40% for many
consecutive months then employee may be trained, or he will be asked to leave the
company.
Grievance handling
 There is different level for grievance handling in the company. In case of sales
managers there will be team leaders to handle grievance of the employee.
 If the team leader can't handle, then he will report to the sales manager.
 If sales manager can't handle it goes to the head of the sales department.
 If it is not solved by the head of the sales department then it goes to the executive.

I. Appointment of director

The following criteria regarding qualifications, positive attributes and independence of

director:

1. All Board appointments will be based on merit, in the context of the skills, experience,
independence and knowledge, for the Board as a whole to be effective.

2. Ability of the candidates to devote sufficient time and attention to his professional
obligations as Independent Director for informed and balanced decision making.

3. Adherence to the Code of Conduct and highest level of Corporate Governance in letter and
in spirit by the Independent Directors.

The Talent Management framework of the Mahindra Group has

been created as follows
a) Experience i.e. both long and short-term assignments. This has 70% weightage.

b) Exposure i.e. coaching and mentoring – 20% weightage.

c) Education i.e. learning and development initiatives – 10% weightage.

The Talent Management process is applicable to all employees. Over the years, the Talent
Management framework has become a well-structured and process- oriented system which is
driven by an interactive and collaborative network of Talent Councils at the Group and Sector
Levels. These Talent Councils, which consist mainly of Senior business leaders supported by
HR, are a mix of Sector (Business) and Functional Councils coordinated by an Apex Talent
Council, headed by the Group Chairman. The Apex Council reviews the work done by the
Talent Councils and facilitates movement of talent across Sectors. The Sector/Functional
Councils meet regularly throughout the year and the Apex Council interacts with each one of
them separately once a year, and in addition conducts an integrated meeting where the
Chairpersons of all the Councils are present.

The Talent Management process can be represented pictorially as under:

The talent pipeline is maintained and developed so as to ensure that there is a seamless flow of
talent. An important part of this exercise is drawing up and implementing IDAPs (Individual
Development Action Plans) for every Executive concerned using the 3E approach mentioned
above.

Compensation
Company has a well-defined Compensation policy for Directors, Key Managerial Personnel
and all employees, including the Chairman, Presidents and other Members of the Group
Executive Board who are employees of the Company. The overall compensation philosophy
which guides us is that in order to achieve global leadership and dominance in domestic
markets, company need to attract and retain high performers by compensating them at levels
that are broadly comparable with the median of the comparator basket while differentiating
people on the basis of performance, potential and criticality for achieving competitive
advantage in the business.

In order to effectively implement this, Company has built our Compensation structure by a
regular annual benchmarking over the years with relevant players across the industry company
operates in.
Employees
Company follows a differential approach in choosing the comparator basket for benchmarking,
depending upon the level in the organization:

a. For all employees from Operational to Executive Band, Company benchmark with a set of
comparators from the same industry.

b. For Strategic band and above, Company has a position-based approach and the comparator
basket includes benchmarks from across relevant industries.

Company has a CTC (Cost to Company) concept which includes a fixed component
(Guaranteed Pay) and a variable component (Performance pay). The percentage of the variable
component increases with increasing hierarchy levels, as Company believe employees at higher
positions have a far greater impact and influence on the overall business result. The CTC is
reviewed once every year and the compensation strategy for positioning of individuals takes
into consideration the following elements:

 Performance
 Potential
 Criticality
 Longevity in grade

Remuneration for the new employees other than KMPs and Senior Management Personnel will
be decided by the HR, in consultation with the concerned business unit head at the time of
hiring, depending upon the relevant job experience, last compensation and the skill-set of the
selected candidate.

The Company may also grant Stock Options to the Employees and Directors (other than
Independent Directors and Promoter) in accordance with the ESOP Scheme of the Company
and subject to the compliance of the applicable statutes and regulations.
Equal employment opportunity and respecting diversity and
human rights
 Company takes pride in saying that we provide equal opportunity and inclusion for all
employees through our employment policies and practices.
 Company recognizes that a mix of backgrounds, opinions, and talents enriches the
organization and helps us achieve success.
 Company celebrates the importance of diversity in our workplaces and hence, we strive
to be as diverse as the customers we serve.
 Company recognizes the importance of maintaining and promoting fundamental human
rights in all our operations.
 Company provides fair and equitable wages, benefits, and other conditions of
employment.
 Company respects employees’ right to freedom of speech and provide safe and humane
working conditions.

No decisions should be made on the basis of gender, race, color, nationality, ancestry,

religion, physical or mental disability, medical condition, sexual orientation, or marital status.