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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>

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