NHRD Journal - National HRD Network
NHRD Journal - National HRD Network
NHRD Journal - National HRD Network
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Relations perspective and emerged as a winner<br />
retaining 55% of the market share with a<br />
healthy and growing bottom line.<br />
In 2003 Govt. of India decided to disinvest its<br />
stakes in Maruti. The launch of Maruti's IPO<br />
which was one of the most successful in India's<br />
history, restructured the company's Equity with<br />
54% by Suzuki thus making Maruti a Private<br />
Sector Corporate & part of Suzuki Motor<br />
Corporation, Japan. That was the time that the<br />
company decided to drive another major<br />
change initiative aimed at Organization and<br />
People Strategy<br />
Need for Change<br />
Organization Culture of Maruti reflected high<br />
Business focus and commitment; high target<br />
and result orientation and strong business<br />
systems and processes. However, it also<br />
reflected an Inward-looking approach; strong<br />
compartmentalization and functional<br />
boundaries; looking up culture with low risktaking<br />
behavior; bureaucratic & slow decision<br />
making process and culture lacking the<br />
celebration approach.<br />
The HR Function was IR centric, centralized,<br />
administrative, and control oriented. The HR<br />
focus was Policy and rule driven and not<br />
people driven. The HR processes were<br />
conventional, slow with bureaucratic decision<br />
making. In 2003 too it still reflected primarily a<br />
conventional approach to HR Policies far away<br />
from the prevailing HR trends. Above all it was<br />
lacking sensitivity to both business & people<br />
connect.<br />
The People profile has been warm, competent<br />
and with an element of pride being a Marutian.<br />
But the people profile was impacted by the<br />
Culture and also the role of the HR Function<br />
over the years. It thus did reflect a conventional<br />
mindset. There were conflicting views on the<br />
HR needs expressed by the young managers<br />
vis-a-vis the relatively older population. Also<br />
the perception about the HR role being a black<br />
box, policy and rule driven and insensitive to<br />
the people needs, meant a clear disconnect<br />
between people and HR<br />
Philosophy of Organization Change at Maruti<br />
• Integration of change initiatives with the<br />
Business and Organizational strategy<br />
• Organization Change aimed at redefining<br />
and developing an Enabling Culture<br />
• Focus on People development and<br />
Institutionalization of capability building<br />
processes<br />
Periodicity and consistency of OD<br />
interventions<br />
• Leadership development processes for all<br />
levels including the Top management<br />
• All change Initiatives driven from the top<br />
The Strategy of Organization Change at Maruti<br />
• To build on the successful past, commitment<br />
and competence of people by launching the<br />
change in an appreciation mode<br />
• Emphasize the need for change linked to<br />
external environment & as a pre-requisite to<br />
future success of the company<br />
• Create ownership and participation<br />
towards the change initiatives through<br />
strong and consistent two way<br />
communication and education process<br />
• Focus on the senior pros to lead & the young<br />
population to drive the change<br />
• Organization change to be gradual and<br />
linked clearly to business needs<br />
Organization Change Initiatives at Maruti<br />
To initiate the Organization Change at Maruti<br />
the first pre-requisite was for the HR function<br />
itself to change. Hence HR Team had to prepare<br />
itself to change before attempting the<br />
Organization Change Initiative. It took some<br />
real time and effort to first initiate the change<br />
118<br />
November 2007 <strong>N<strong>HRD</strong></strong> <strong>Journal</strong>