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Relations perspective and emerged as a winner retaining 55% of the market share with a healthy and growing bottom line. In 2003 Govt. of India decided to disinvest its stakes in Maruti. The launch of Maruti's IPO which was one of the most successful in India's history, restructured the company's Equity with 54% by Suzuki thus making Maruti a Private Sector Corporate & part of Suzuki Motor Corporation, Japan. That was the time that the company decided to drive another major change initiative aimed at Organization and People Strategy Need for Change Organization Culture of Maruti reflected high Business focus and commitment; high target and result orientation and strong business systems and processes. However, it also reflected an Inward-looking approach; strong compartmentalization and functional boundaries; looking up culture with low risktaking behavior; bureaucratic & slow decision making process and culture lacking the celebration approach. The HR Function was IR centric, centralized, administrative, and control oriented. The HR focus was Policy and rule driven and not people driven. The HR processes were conventional, slow with bureaucratic decision making. In 2003 too it still reflected primarily a conventional approach to HR Policies far away from the prevailing HR trends. Above all it was lacking sensitivity to both business & people connect. The People profile has been warm, competent and with an element of pride being a Marutian. But the people profile was impacted by the Culture and also the role of the HR Function over the years. It thus did reflect a conventional mindset. There were conflicting views on the HR needs expressed by the young managers vis-a-vis the relatively older population. Also the perception about the HR role being a black box, policy and rule driven and insensitive to the people needs, meant a clear disconnect between people and HR Philosophy of Organization Change at Maruti • Integration of change initiatives with the Business and Organizational strategy • Organization Change aimed at redefining and developing an Enabling Culture • Focus on People development and Institutionalization of capability building processes Periodicity and consistency of OD interventions • Leadership development processes for all levels including the Top management • All change Initiatives driven from the top The Strategy of Organization Change at Maruti • To build on the successful past, commitment and competence of people by launching the change in an appreciation mode • Emphasize the need for change linked to external environment & as a pre-requisite to future success of the company • Create ownership and participation towards the change initiatives through strong and consistent two way communication and education process • Focus on the senior pros to lead & the young population to drive the change • Organization change to be gradual and linked clearly to business needs Organization Change Initiatives at Maruti To initiate the Organization Change at Maruti the first pre-requisite was for the HR function itself to change. Hence HR Team had to prepare itself to change before attempting the Organization Change Initiative. It took some real time and effort to first initiate the change 118 November 2007 NHRD Journal
in the HR thinking, approach and the HR credibility at Maruti. The effort involved introspection and brainstorming sessions, informal and formal training, exposure to external HR fraternity, the strong HR linkage to business and people and aggressive HR leadership and direction. It also involved cutting open the HR cross-section view to the key stakeholders - People, Functional heads, Directors and the Board. It required a participative, consultative and flexible approach to define new or redefine existing HR Policies, Systems and Processes. Some key directions were as follows: • HR's transition from a stand-alone identity to Integral part of Business • HR identity and credibility as mere Staff support to Strategic part of Business • From Manpower costs to Investment in People • From Labor Law compliance to Strategic IR Perspective • Personnel Administration to People Connect • Technical Training co-coordinator to wholesome People Development • Discipline concept to developing and sustaining positive Work Culture The Success of any Organization Change Initiative depends to a large extent if it is owned by the Top Management and if it starts from the Top. Hence deliberating the Organization change perspective with the Top Management specially the Japanese colleagues at Maruti was critical and cumbersome at times. Sometimes one realizes that life is so simple if corporate communication is based on English only. Also it was an enormous task to overcome the Cultural gaps between SMC, Japan and the People issues in the Local context of our country. At times we could observe a fairly clear gap between the Indian senior colleagues & our SMC counterparts. Hence the balancing act required sensitizing them individually for ownership of the Organization Change initiatives. Above all it required a tremendously patient, educative and flexible approach to discuss, deliberate and convince our SMC colleagues on some of the new concepts, policies etc. From 2003 onwards, the Organization Change Initiative was launched through various OD interventions at five different levels: • Top Management • Senior Management • Middle Management • Junior Management • Technicians/operators Leadership Retreat for Top Management The key objective was to build & strengthen the Top Leadership Team at Maruti including the Indian and Japanese Directors. The effort was to shift gears from an operational focus and review perspective to Strategic Business Planning & Transformational People Leadership. The first initiative in this regard was full of ifs & buts, language issues & the cultural subtleties involved between the Japanese culture of SMC Japan & Maruti's Indian ground realities. The balancing was tough and required tremendously patient approach as there were Business Success and learnings in both models. The Leadership Retreat involving all Directors, over two & a half days residential at Bangalore, was facilitated by Dr. Pritam Singh and Dr. Asha Bhandarkar with focus on: • Team Building perspective i.e. Leadership Team of Maruti Suzuki • Self-development focus for each Director based on feedback from others November 2007 NHRD Journal 119
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NHRD Journal Organizational Change
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S.no Title of the Article Author Pa
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ORGANIZATIONAL CHANGE INDIRA J PARI
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give subtle shape to the organizati
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to be tempered by a sense of humor,
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Although the result did not spell o
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the Project Sponsor to engage the C
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• Consultative - The target popul
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Now they are confronted with change
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A living system can never be direct
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ut in absence of formal process of
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Higgs, M. and Rowland, D. (2005),
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• Organization Structure Rigid hi
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magnitude of the programme, you can
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• In only about 10% of the school
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memorization, the focus of the teac
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HOW HR CAN IGNITE 'HOT SPOTS' YOGI
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pointed the prerequisites of change
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BRINGING CHANGE TO THE CHANGE AGENT
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were low, people lived simply and s
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'People Academy' that seeks to fost
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DEFINING CHANGE AGENTS SANDEEP K. K
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human resource process like leaders
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References Chris Argyris, Initiatin
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needs to tell a trained nurse about
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esponse to changes in the external
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THE ENDURING SKILLS OF CHANGE LEADE
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left to resolve tensions, answer qu
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neglected step in the change proces
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enefits of the long march are lost,
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To address the challenge of executi
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very capable people; but the organi
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DRIVING ORGANIZATIONAL CHANGE LEENA
Page 67 and 68: change, preparing the leadership an
Page 69 and 70: However the good news is that the a
Page 71 and 72: Organizational Culture and Sub-Cult
Page 73 and 74: References Ashkanasy, N. M., Broadf
Page 75 and 76: • Finance and Accounts • Techni
Page 77 and 78: and gives the freedom to fail. Chan
Page 79 and 80: therefore shift gear and venture in
Page 81 and 82: COMMUNICATION EFFECTIVENESS, JUSTIC
Page 83 and 84: interactional justice focused on th
Page 85 and 86: and in a manner that is perceived a
Page 87 and 88: the merger, in whichever form has a
Page 89 and 90: is high, implying that there would
Page 91 and 92: • Successful integration approach
Page 93 and 94: management and the labor leaders to
Page 95 and 96: ONE REASON FOR FAILURE OF CHANGE IN
Page 97 and 98: IPO: A POWERFUL INTERVENTION IN ORG
Page 99 and 100: In expectation of such a reaction,
Page 101 and 102: system was designed, requiring mana
Page 103 and 104: Then the system was recommended for
Page 105 and 106: Newsletters used to be published an
Page 107 and 108: CHALLENGE OF MANAGING ORGANIZATIONA
Page 109 and 110: productive deployment of raw talent
Page 111 and 112: Conclusion There is a broad agreeme
Page 113 and 114: change is indeed the engine which f
Page 115 and 116: and regional development programs.
Page 117: ORGANIZATIONAL CHANGE-MARUTI SUZUKI
Page 121 and 122: • Cross Functional Teams (CFTs) o
Page 123 and 124: i. Technology • Plant location
Page 125 and 126: consolidates in a short period of f
Page 127 and 128: PBIT (Rs in crores.) The Company ha
Page 129 and 130: concepts in an organizational conte
Page 131 and 132: APPEAL TO CONTRIBUTORS The National
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