Organisational Study: Maruti Suzuki India Ltd

3307 words - 14 pages

Organisational Behavior Study
Maruti Suzuki India Ltd.

A Brief About the Organisation

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A licence and a Joint Venture agreement was ...view middle of the document...

R C Bhargawa, organization was in a growing stage and functioned like a complacent organization as the environment was not at all competitive. The company enjoyed leadership position where the bulk of the technical support came from Suzuki, Japan. His leadership style was supportive and hence having good relations with the employees resulting in high employee performance and satisfaction.

During 1990’s, Mr. Jagdish Khattar, having directive leadership style and hence very clear in communicating what he is expected from his employees and gives specific guidance as to how to accomplish the tasks. He faced much competition from Hyundai and TATA Motors, but managed well to maintain market share. The company took measures like localization to cut costs and stay competitive. Employee lay off occurred during his tenure.

2007 onwards under Mr. S Nakanishi, organization continues to do well and the focus on cost cutting and process improvement remains. Employees started feeling that Suzuki is trying to gain better control by appointing a personal from SMC as MD.

In Maruti, there is no concept of distributive leadership at any level. In all formal occasions, only senior people in hierarchy take the role of a leader. Only in some non-formal occasions like organizing a team building event or cultural event, other people in the company gets a chance to show their leadership skills.

Leadership development is a part of the organizational culture here and managers are groomed to take future leadership roles by conducting various programs which includes mentoring, training and coaching. Maruti pays high attention to training – both behavioral and technical. Soft-skills trainings conducted here include communication skills, leadership skills, team building skills, presentation skills. A special training program on leadership skills is conducted in Europe for senior executives.

As all people are different, leadership styles exhibited by different people are different. Though, if we have to rank Manager’s leadership style according to Maruti’s Culture, it will be Supportive, Directive, Achievement oriented, Democratic, Authoritarian and Supportive in that order.

Organization Structure:

The study of organizations includes a focus on optimizing organizational structure. The structure of an organization is usually dependent on their objectives and ambience. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities.
Maruti as an organization is divided into divisions based on the nature of work like R&D, HR, finance, Sales & Service, IT, supply chain and Production. Since Maruti is a joint venture of Indian Government with Suzuki from Japan, division of authority and power existed. Previously each division was headed by an Indian and all directorial posts were held by Suzuki personal. But now Indians are also included.

Organization went through restructuring when...

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