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Maruti Case Study

Maruti Suzuki India Limited is a subsidiary of Suzuki Motor Japan. In 2012, a labour unrest occurred at Maruti's Manesar plant that resulted in one death and over 100 injuries. The core reason for the unrest was differences in pay and job security between permanent and contract workers.

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Bhavika Gholap
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139 views2 pages

Maruti Case Study

Maruti Suzuki India Limited is a subsidiary of Suzuki Motor Japan. In 2012, a labour unrest occurred at Maruti's Manesar plant that resulted in one death and over 100 injuries. The core reason for the unrest was differences in pay and job security between permanent and contract workers.

Uploaded by

Bhavika Gholap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Maruti Suzuki India Limited, previously known as Maruti Udyog

Limited is a subsidiary of Suzuki Motor Japan. The company has always


aimed at delivering quality, affordability, and maintaining growth in the
market. It Founded in 1983, Maruti Udyog Limited had few problems in its
labour relationships It was Launched in India in 1981 as a joint venture
between the Government of India and Suzuki Motors of Japan. At that time
Indian four-wheeler market was dominated by Hindustan Motors. Maruti
faced management-worker issues several times which significantly
impacted its production. Maruti Udyog Limited had few problems in its
labour relationships. The locally hired workforce accepted the Japanese
work culture and the modern manufacturing processes in order to
maintained peace and harmony within the organizations and labour but, it
didn’t materialized & cause some serious issues.
Mansare tragedy
This is about the labour unrest that took place at the Manesar plant of
Maruti Udyog Limited in 2012. It was evident from the beginning that the core
reason for labour unrest at Maruti is the difference in pay, allowances and assets
among the workers. On the one hand, a permanent worker draws over three times
the salary of a contract worker and also enjoys several facilities like medical,
insurance and retirement benefits. On the other hand, the future of a contract
worker always hangs in balance because of the impending day on which he will be
confirmed as a permanent employee or thrown out of work for whatever reason.
The workers that were under contractual basic had certain restrictions on their
livelihood, because of this a contractual worker has to live under the shadow of
the uncertainty of their future employment.

On The day 18 July 2012 this tragedy happened. Mob attacked


supervisors and managers that they could lay their hands on and in the
process a senior human resource manager was killed, and 100 others were
injured including two Japanese expatriates. Labour unrest has been
erupting in the area frequently. Maruti had witnessed troubles on three
occasions in the last one year causing total production loss about 2400
crores.
If I appointed as HR Manager I will properly coordinate and give a
common direction to employees even after the transfer of control in the
organization. There is a fair policy in an organization that acts on
both employees and supervisors. Punishment will be applicable for the
supervisor, too, for using a caste-based slur or any other unethical
practices. I will listen all the workers’ demands and allow them to join
unions as per their needs. This will build confidence and trust among the
workers and they show their honesty to management. To avoid situation
like strikes, I will conduct the monthly meetings with employees & discuss
all problems faced by them. Managing human resource has become a vital
part of its responsibility. To handle employees there are methods to
understand how to keep the work force motivated. There are different
motivation models such as Maslow Motivation model, Herzberg 2 factor
model that can help the me to understand the motivation needs for the
workers. I should be cautious while hiring employees. There always will be proper
verification check mechanism. If there is Increasing number of contract workers in
core activities with visible wage difference it will not be encouraged.

Conclusion:
The main problem is arisen is because of the poor decision-making process
by the HR executive and the whole management team. Rather than
changing the Japanese work culture that led to the distortions between the
management and the laborers. The Hr was mainly focusing on each and
every individual problem of labourers through negotiations. That didn't
lead to any conclusion on both sides. The company should have provided or
at least fulfilled the basic demands of the workers. By providing them basic
facilities such as clean washrooms, water coolers and also appropriate
working hours (shift timings) with proper breaks. Also, there are specific
communication barriers between the management and the labour union. It
would not be correct to say that one side was right or wrong; certain things
and demands on both sides were unreasonable and could not have been
fulfilled without proper discussions between both parties. The Hr executive
lack in encouraging the workers, by giving them proper acknowledgements
through (wage increases, bonus, promotions, leaves) So, Mansare tragedy
shock the whole nation. It is classic example as per how hr executive and
management team should handle these kinds of issues and keeping future
uncertainties in mind that shouldn’t affect company welfare and needs of
individuals. This case study holds great relevance to management and
provides valuable insights relating to management issues.

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